Maximizing Energy Savings with Energy Management Systems

Abstract

ABSTRACT This is the third in a series of three articles on enterprise energy management (EEM) systems featured in Strategic Planning for Energy and the Environment. The first article described the current state-of-the-art in EEM systems and their associated benefits in controlling energy cost, quality, and reliability (see Vol. 22, #4). The second piece considered energy in terms of managing the associated cost and reliability risks to businesses (Vol. XX, #X). As the field of energy management matures, so do the tools and best practices available to ensure that the energy required by an organization is used in the most efficient way possible. In the past, energy management practices consisted primarily of replacing inefficient equipment and then using any number of methods to estimate the savings gained. Studies performed by the Department of Energy (DOE) and the Texas State Energy Conservation Office (SECO) have shown, however, that energy savings can be dramatically increased and maintained over time by adopting and implementing consistent energy management practices and recognized measurement and verification procedures. As energy management standards and best practices begin to see widespread adoption, the information systems required to support them will play a crucial role in their implementation and success. The enterprise energy management systems described in the previous articles will not only address shorter term cost, quality, and reliability concerns, but can also provide the detailed data and analysis capabilities required to ensure that energy management strategies and conservation measures are on track throughout an organization. Organizations can apply EEM systems to gain a comprehensive understanding of current energy performance, plan and select cost-effective energy conservation measures, track performance of measures that have been implemented, and verify the savings realized. Over the last several decades, there has been increasing interest and activity in the field of energy management. A Lawrence Berkeley National Labs (LBNL) study of energy efficiency projects completed by US energy service companies over a ten-year period shows that total project spending has increased from roughly $500 million in 1990 to more than $2 billion in 2000 [1]. Energy management practice has traditionally focused exclusively on technologies that increase the energy efficiency of key energy-consuming processes and equipment. Rebuild America, a US Department of Energy (DOE) energy efficiency program, lists lighting and HVAC equipment upgrades among the most commonly implemented energy efficiency measures [2]. The US DOE Energy Information Administration (EIA) lists a variety of energy management activities for several industrial sectors, including waste-heat recovery and deployment of variable-speed drives [3]. Although there is little doubt that upgrading equipment and processes is a key ingredient to increased energy efficiency, there have always been concerns that traditional deployment practices have not resulted in consistent (and long-term) energy savings. While the LBNL study mentioned above notes a steady increase in energy efficiency project spending over time, it also acknowledges that there is a wide variation in typical energy savings [1]. There has been considerable effort over the last several years to define standards and best practices that increase the performance of energy efficiency projects and make the savings realized more predictable and repeatable. The International Performance Measurement and Verification Protocol (IPMVP), for example, provides best-practice methods for measuring and verifying the results of energy efficiency projects in commercial and industrial facilities [4]. MSE 2000, an energy management standard developed by the Georgia Institute of Technology and accredited by ANSI, specifies a management infrastructure for increasing energy efficiency and reducing costs [5]. Both of these standards move beyond traditional energy efficiency practices and into the realm of more comprehensive strategic energy management practices that resemble the structure and discipline found in best-practice management systems like ISO 9000 and 14000.