Strategic energy management in industry 4.0 environment

A review of barriers to and driving forces for improved energy efficiency in Swedish industry– Recommendations for successful in-house energy management

This paper presents the development of a conceptual map regarding energy management applied to industry. The energy issue is currently of great relevance, especially for the so-called energy-intensive industries related to high energy consumption and their associated environmental impacts. The present research is characterized as a basic, exploratory approach justified by the need to build knowledge on the subject of energy management in industry. The methodology provides for the use of a computational tool called CMap Tools, which assists in the graphic representation of the proposed conceptual map. The conceptual map based on the ISO 50001 standard and on successful energy management practices described in the scientific literature is directed toward a process design covered by the managerial discipline called Business Process Management. The conceptual map is intended to clarify the relationships that are established between the intra-organizational and main external stakeholders involved in an energy management system. Owing to the way internal areas and external organizations relate, the representation structure using a “Spider” is the most appropriate. The work developed presents an energy management system for an energy-intensive industry in a clear (conceptually and visually), orderly, unified, harmonious, and balanced manner indicating the distribution of its elements, and serves as an initial step in the creation of an ontology for this area of knowledge.

Energy management can be defined as “the judicious and effective use of energy to maximise profits and to enhance competitive positions through organisational measures and optimisation of energy efficiency in the process ” (Cape, 1997). Profits maximization can be also achieved with a cost reduction paying attention to the energy costs during each productive phase (in general the three most important operational costs are those for materials, labour and electrical and thermal energy) (Demirbas, 2001). Moreover, the improvement of competitiveness is not limited to the reduction of sensible costs, but can be achieved also with an opportune management of energy costs which can increase the flexibility and compliance to the changes of market and international environmental regulations (Barbiroli, 1996). Energy management is a well structured process that is both technical and managerial in nature. Using techniques and principles from both fields, energy management monitors, records, investigates, analyzes, changes, and controls energy using systems within the organization. It should guarantee that these systems are supplied with all the energy that they need as efficiently as possible, at the time and in the form they need and at the lowest possible cost (Petrecca, 1992). A comprehensive energy management programme is not purely technical, and its introduction also implies a new management discipline. It is multidisciplinary in nature, and it combines the skills of engineering, management and maintenance. In literature there are many authors that approaching the different aspects of energy management in industries. For sake of simplicity, identifying the main issues of the energy management procedure in energy prices, energy monitoring, energy control and power systems optimal management and design, in Table 1, for every branch the most significant scientific results are listed. Concerning energy price in the new competitive environment due to the energy markets liberalization, many authors face up the risks emerged for market participants, on either side of the market, unknown in the previous regulated area. Long-term contracts, like futures or forwards, traded at power exchanges and bilaterally over-the-counter, allow for price risk management by effectively locking in a fixed price and therefore avoiding

This review paper offers a detailed analysis and summary of current studies related to energy management and carbon footprint reduction in university campuses. Using insights from different research papers, the review highlights the necessity for strategic and sustainable energy management approaches. The research reviewed explores a wide range of methodologies, including the examination of energy consumption, the identification of areas for improvement, the application of energy management and optimization techniques, and the use of renewable and sustainable energy strategies. It is evident from the review that successful energy management and carbon footprint reduction depend on energy management systems, integration of renewable energy, encouraging behavioural changes, and efficient resource use. The review paper is divided into six sections: understanding and enhancing energy consumption, Techniques for Energy Management and Optimization, random and systematic approaches to energy management, Energy Management Systems and their Applications, approaches for sustainable and renewable energy and carbon footprint reduction techniques. The review also identifies areas of future research in the field. It aims to serve as a valuable guide for university administrators, energy managers, and researchers seeking to implement sustainable energy practices and reduce carbon emissions on university campuses.

This study focuses on the public building in Indonesia that has implemented an energy management system compliant with ISO 50001 standard. The main objectives of this study are to review the implementation of the energy management system in the building, highlighting the main aspect of the ISO cycle deployment and key lessons learned for further dissemination. We performed the study of the implementation of energy management in the building sector based on the ISO 50001 framework that aims to enhance an organization to pursue the continuous improvement of energy management with a systematic approach. Implementing the plan, do, check and act cycle of the ISO’s framework, it is found that the management keeps a strong commitment to continuous improvement. As part of the energy management system cycle, an Investment Grade Audit (IGA) was performed in 2018. Implementing the IGA recommendation, both passive and active designs have been applied in the Slamet Bratanata building. Active design strategies that have been implemented include building automation system utilization, chiller and lighting replacement and Energy Monitoring System (EMonS) application. Implemented passive designs include windows film installation and an efficient room redesigned for optimizing natural light. To implement the ISO 50001 Energy Management System in the building, the energy management team has also held various activities. It includes developing Standard Operating Procedures, appointing a Person in Charge on each floor, conducting capacity building and performing an energy efficiency campaign. It is estimated that the energy management system has succeeded in reducing energy consumption by 613.188 kWh (in 2018–2020) and the Energy Efficiency Index by 129.06 kWh/m2/year in 2020. Furthermore, management energy implementation also reduced greenhouse gas emissions by 539.60 tons of CO2 equivalent. This study provides a reference for energy management in another building for improving its energy performance.

Energy management and monitoring systems should take initiatives to accelerate the application of measurement and verification (M&V) and be a focus area of various energy management systems. An M&V plan provides the methodology that will give overall energy savings resulting from specific energy efficiency and conservation projects. The energy management plan which mainly focus on artificial intelligence (AI) is increasingly becoming the predominant area of a new emerging technological area and industrial utilities for energy studies, drawing the increasing attention of scholars, technocrats and experts in recent years. Studies presented in this chapter highlight the role of AI on the environmental factors with respect to carbon footprints, which has been decreasing during the 12th Five-Year Plan as compared to the 11th Five Year Plan in both ferrous and non-ferrous industries globally. AI has a minimum impact on carbon intensity in the worker-intensive and tech-intensive industries. Therefore, the government policy should accelerate the implementation of AI, in line with the metal industries. Deployment of energy management information systems, data analytics and soft computing has the potential to transform the productivity, process control and energy efficiency proficiency in metal industries of recent modern times.

Industrial energy systems channel fuels and power into a variety of energy types such as steam, direct heat, hot fluids and gases, and shaft power for compressors, fans, pumps, and other machine-driven equipment. All of these processes impact the environment and are impacted by external energy and environmental policies and regulations. Therefore many environmental management issues are closely related to energy use and efficiency. Applied Industrial Energy and Environmental Management provides a comprehensive and application oriented approach to the technical and managerial challenges of efficient energy performance in industrial plants. Written by leading practitioners in the field with extensive experience of working with development banks, international aid organizations, and multinational companies, the authors are able to offer real case studies as a basis to their method. The book is divided into three main parts: * Part one describes Energy and Environmental Management Systems (EEMS) in current use and management techniques for energy and environmental performance improvement. * Part two focuses on the engineering aspects of industrial energy management, describing main industrial energy systems and how to analyse and improve their energy performance. * Part three is the TOOLBOX on an accompanying website, which contains data, analytical methods and questionnaires as well as software programs, to support the practical application of the methods elaborated on in the first two parts of the book. This book will be a valuable resource to practising energy and environmental management engineers, plant managers and consultants in the energy and manufacturing industries. It will also be of interest to graduate engineering and science students taking courses in industrial energy and environmental management

The implementation of monitoring tools and energy management systems (EnMSs) supports companies in their long-term energy efficiency strategies, and they are essential to analyse the effectiveness of energy performance improvement actions (EPIAs). The first fundamental step towards increasing energy efficiency is the development of energy audits (EAs). EAs provide comprehensive information about the energy usage in a specific facility, identifying and quantifying cost-effective EPIAs. The crucial role of these tools in clean energy transition is remarked by the European Energy Efficiency Directive (EED), which promotes the implementation of EAs and EnMS programmes. The purpose of this work is to better understand the link between EnMSs (specifically ISO 50001) and EAs in the EED Article 8 implementation in two industrial and two tertiary sectors in Italy. Moreover, the impact of company size, energy monitoring systems, and EnMSs on planned and/or implemented EPIAs is analysed. Our findings show that, albeit the complexity of the variables involved in energy efficiency gap, the “energy savings/company” and “EPIA/site” ratios are higher in enterprises with an EnMS and monitoring system. Thus, a correct energy audit must always be accompanied by a specific monitoring plan if it is to be effective and useful to the company decision maker.

The increasing demand especially in intensive industrial energy sectors dictates the development of smarter energy management systems. Industrial customers need to understand their energy consumption for the purpose of reducing energy costs, improving company ecological profile, and suggestive feedback scheduling. In this study, an industrial facility was used to demonstrate the importance of managing the energy consumption. To address this issue, an energy monitoring and management system is developed. First, the energy consumption of individual machines is identified. Second, a graphical user interface and operation scheduling are developed and the feedback is provided to the operator through fuzzy inference system. The results reveal significant savings in consumed energy and in dollars over time through the application of the proposed energy monitoring and management system (EMMS) into industrial facilities in intensive energy sectors.

Industrial facilities are devoting ever greater attention to the importance of energy in their operations. Consequently, industrial energy management has advanced to include many activities in both planning and operations. Dynamic energy management has evolved as not just an extension of cost optimal production methods but also in the context of demand side management activities. And yet, the current demand side management literature is inadequate because it does not address the underlying production activities as the existential reason for energy consumption. Therefore, this paper seeks to develop a dynamic production model for industrial systems energy management drawing upon techniques from Axiomatic Design for Large Flexible Engineering Systems and timed petri-nets. The model is applied to an illustrative example to demonstrate the calculation of energy consumption and energy cost curves. This model may be later integrated into conventional industrial systems energy management techniques or into extended demand side management techniques.

The use of microprocessors in electrical equipment has increased both the amount and accuracy of electrical system information available to facility management personnel. This system data can be collected via local area networks and used to make decisions relating to facility expansion, cost control and allocation, troubleshooting, and maintenance. In addition, system parameters can be collected over time, and trends can be evaluated to identify potential problems before they occur. The advent of microprocessor technology in electrical equipment has made simple, low cost energy monitoring and management systems available for all levels of power distribution. This paper outlines offerings in power monitoring technology, explores the value of collecting electrical system data through local area networks, and describes the application of energy monitoring and management in general industry.

Energy is one of the top operating expenses in industries. Following the increased adoption of smart grids in recent years, industries can leverage on its capabilities to design effective energy management schemes for competitive advantage. This paper addresses the challenge of energy management in industries by incorporating the aspects of a smart grid in designing an energy management system (EMS) where demand side management (DSM) is utilized to enable users control their energy usage and minimize costs. A forecasting model for electricity prices and demand is developed using Long Short Term Memory (LSTM) - Recurrent Neural Network (RNN). The predicted prices are used in load scheduling to realize potential energy cost savings. The nonpriority loads are scheduled to leverage on low electricity prices during off peak times. The effectiveness of the designed energy management strategy is tested using an IEEE 30 bus system. A suitable operation schedule with committed units for each hour is given for one sample day. Using the test system with 20 loads yielded an annual energy cost saving of $2,961,169.20 and a payback period (PBP) of 4.39 years. Quantifying both the energy and non-energy benefits of investing in an EMS justifies its high investment cost. Long term use of an industrial EMS is likely to yield huge energy and cost savings.

Wireless sensor networks (WSNs) play a key role in extending the smart grid implementation towards residential premises and energy management applications. Efficient supply and demand balance, and consequently reducing the electricity expenses and carbon emissions, is an immediate benefit of implementing smart grids. In this paper, design and implementation of an energy management system (EMS) for efficient load management are proposed. The EMS reduces the consumption of the consumers at the peak load hours and thus reduces the carbon emissions of the household. The proposed system consists of two main parts. The first part is an Energy Management Unit (EMU) which has a graphical user interface for runtime monitoring and control. The second part is sensor nodes which measure the power consumption of the different loads and transfer it to the EMU via multi-hop network. The EMU is implemented using NI LABVIEW software and XBee-PRO ZigBee module to communicate with sensor nodes. Hardware model is implemented using Arduino Uno microcontroller, XBee-PRO ZigBee module and the ACS712 current sensor. The EMS is applied to building of Electrical Engineering Department at Assiut University as a case study.

There are various approaches to energy and carbon management and the most appropriate approach is likely tochange over time. Selecting the appropriate approach is pivotal in determining how successful an organisation will be in achieving its energy and carbon management objectives. Over the last fifteen years, Gosford City Council has undergone numerous shifts in its approach to the management of energy and carbon across its operations. Council initially focused on reducing its carbon footprint, firstly by setting aspirational targets and followed by the setting of evidence based targets. In response to rising energy costs, Council shifted from a “carbon abatement” to an “energy management” focus in 2012. At this time, the sophistication of Council’s energy management program was vastly improved with the introduction of a corporate energy management information system and a revolving energy fund. In 2014, Council’s energy management program focused on “use less” and“pay less” levers. The first lever “use less” covered much the same ground as previous carbon abatement approaches, however, the second energy management lever, “pay less” unlocked significant additional value to Council. Pay less initiatives, such as energy procurement, load shifting, energy account management and bill validation resulted in energy cost savings of hundreds of thousands of dollars for Council. Council is now shifting from a tactical to a more strategic approach to energy management. An Energy Management Strategy is under development. The Energy Management Strategy will introduce an Energy Productivity Improvement Objective. This objective will focus on recognising the complete economic value of improved energy and carbon management. This should yield organisational productivity improvements and economic value in the local community. The strategy also introduces advanced energy metrics such as an energy cost index and asset class energy intensity metrics. The appropriate approach for Gosford City Council’s energy and carbon management has advanced in line with wider organisation objectives, values and maturity of its energy management systems.

In the past few years energy management became increasing important. Not only the trend toward clean energy sources triggered a process of rethinking in the minds of society but also pushed the politics to create incentives for companies in order to make them reduce their carbon footprint. Efficient use of resources has become a fundamental part of present-day economic, social and political decision making. Energy efficient production is no longer considered just under ecological aspect. It is considered as an important part of business strategy. Through high energy taxes, enormous energy costs and continuously increasing energy prices manufacturing companies are under permanent stress. However, there is for companies in the field of energy management enormous potential to financially improve and save costs consequently. Standards have provided a guide line for the companies to move towards green production. However lack of know-how and appropriate software tools and absence of concepts and methods for green production hinders company's especially small and medium size enterprises to take the step towards green production. Systematic and strategic energy management is the key to transform a company from lean to green production. Because of the complexity of the tasks related to environment and energy management, the Institute for Factory Automation and Production Systems (FAPS) developed methods and concepts to implement a strategic energy management. Furthermore, a software is developed that enables companies to follow the ISO 50001 guidelines and implement energy management methods necessary for a green production. This paper provides a brief road map showing the path to an energy efficient production environment. Starting from the list of the main energy consuming applications in German industries, which were identified through a study carried out in 2015. Brief description of the energy management methods and concepts and illustration of the role of strategic energy management in transforming companies from lean to green production and finally a brief illustration of the software for the implementation of energy management especially in manufacturing companies.