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Southwest Energy Efficiency Project Southwest Energy Efficiency Project

Excellence in Energy Management

To go beyond mediocre energy performance and implementing energy improvements only sporadically, many leading companies have developed a more systematic approach to energy management. The following guidelines can help your facility to achieve continual improvements over time, minimizing energy costs while enhancing productivity.

  1. Obtain management support. At the facility level, it is important to gain the support of the site manager and to leverage any energy management support available at the corporate level. Obtaining the site manager's buy-in for a five-year energy goal could be a good place to start.
  2. Develop an energy team. The facility energy manager should have overall responsibility for managing energy use and costs at the facility. Energy goals should ideally be included in his/her performance plan and compensation. Then in addition the site energy manager should form an "energy team," obtaining the support of other key parts of the organization, including production, finance/accounting, procurement, maintenance, and environmental health and safety. The energy team should work together towards the common goal of minimizing energy costs while maintaining or enhancing the facility's productivity.
  3. Assess performance and opportunities. Most industrial facilities have had at least a basic energy audit to analyze energy consumption and identify a few areas for improvement. Several utilities in Colorado offer assistance with more detailed energy assessments, as does the CIEC program. In addition leading companies compare facilities' energy performance with that of other similar facilities to gauge the potential for improvement. (Two options are to compare your facility with other similar facilities within your company, or to try benchmarking using Energy Star.) To identify opportunities, some companies such as Johnson & Johnson and Frito-Lay have developed lists of best practices in specific areas.
  4. Establish goals and develop an energy plan. If you are able to obtain energy intensity data for other similar facilities, then you can set performance goals to gradually bring your facility up to the level of the best performers. Otherwise, a reasonable goal is to shoot for a 10 percent improvement in energy intensity over a 5-year period (or about 2% intensity improvement per year). Developing a plan for on-going energy improvements goes hand in hand with developing a reasonable energy goal. The plan should start with projects that have already been identified and evaluated, ranking these by cost-effectiveness and/or ease of implementation. The plan should be updated periodically as new energy projects are identified, and as new process changes/improvements are planned that open up doors to re-examining process-related energy use.
  5. Implement energy plan and track results. As projects are implemented, it is very important to measure energy and cost savings. This can be done by installing temporary or permanent sub-meters (natural gas or electricity) to take before and after measurements of consumption. Documenting savings from specific projects will go a long way towards obtaining management support for financing of future energy projects.
  6. Recognize achievements.  Building a successful program requires a team effort, so it is important to recognize the achievements of individuals that played key roles in implementing projects. In addition the program should recognize its own overall achievements by reporting to management each year on total energy and cost savings. This will help build support for the energy program and make it easier to obtain financing and other support in the future. 

These six principles are based on the U.S. EPA ENERGY STAR program's Guidelines for Energy Management. You can evaluate your facility's energy management program using ENERGY STAR's Facility Energy Assessment Matrix, and find more information on ENERGY STAR's guidelines here.