Increase Profitability through Energy Management

USA consumes about 25% of its energy for producing 22% of the world’s gross national product while some nations such as Japan and Germany produce the same or greater GNP per capita with significant less energy than the United States. Energy Independence & Security Act  was pass by US Congress in 2007 to focus on moving the United States toward renewable fuel production for consumer protection and to increase the energy efficiency of buildings, manufacturing plants, and vehicles, greenhouse gas capture and storage, and to improve the energy performance of the federal government.  Based on the EISA, federal buildings must reduce energy usage 3%/yr/square foot and water usage 2%/yr/square foot from 2006 to 2016. Energy management programs focus on helping the nation to increase national production with least energy cost.

The efficient and effective use of energy to maximize profits and enhance competitive position globally is the main goal of energy management. The following areas need to be part of any energy management program:

Sustainability

Green building

Renewable energy

Energy productivity improvement

Greenhouse gas

Carbon footprint reduction

Water conservation

Major factors influencing businesses to invest in energy management:

• Environmental regulations
• Productivity improvement
• Energy-related to the other three

National priorities that mandated businesses to move toward with energy efficiency:

• Environmental quality
• Economic competitiveness
• Energy security

Energy management maximizes profits by reducing costs:

• 5-15% of energy cost reduction may result without capital expenditure
• 15-30 % of energy cost reduction may result with low cost and/or short payback
• 30-50% of energy cost reduction may result with higher cost and/or longer payback

Changing energy use patterns and implementing proven technologies to optimize energy use are a necessity to achieving true energy efficiency.

Referemce:

1) Brneyl L. Capehart, Wayne C.Turner, William J.Kennedy (2012), “Guide to Energy Managment 7th Edition”

2) AEE seminar 2013

Categorised in: EPA