ROLES OF ENERGY MANAGERS IN SUSTAINABLE ENERGY MANAGEMENT IMPLEMENTATION

INTRODUCTION TO MAREEM

OVERVIEW OF ENERGY IN MALAYSIA, ENERGY EFFICIENCY & ENERGY MANAGEMENT BENEFITS & POTENTIALS

OVERVIEW AND KEY CONCEPTS SUSTAINABLE ENERGY MANAGEMENT SYSTEM IMPLEMENTATION

ROLES OF ENERGY MANAGERS IN EFFECTIVE ENERGY MANAGEMENT PROGRAMME IMPLEMENTATION FOR ORGANISATIONS

1. 1
ROLES OF ENERGY MANAGERS IN
SUSTAINABLE ENERGY MANAGEMENT
FOR LARGE ENERGY USERS
By
ZainiAbdul Wahab
MALAYSIAN ASSOCIATION OF
REGISTERED ELECTRICAL ENERGY MANAGERS
SESB Sustainable Energy Convention 2018
26 January 2018
KlaganRegency 1Borneo, Kota Kinabalu
OUTLINE
•INTRODUCTION TO MAREEM
•OVERVIEW OF ENERGY IN MALAYSIA, ENERGY
EFFICIENCY & ENERGY MANAGEMENT BENEFITS &
POTENTIALS
•OVERVIEW AND KEY CONCEPTS SUSTAINABLE ENERGY
MANAGEMENT SYSTEM IMPLEMENTATION
•ROLES OF ENERGY MANAGERS IN EFFECTIVE ENERGY
MANAGEMENT PROGRAMME IMPLEMENTATION FOR
ORGANISATIONS
•WHAT’S NEXT?

2. 2
INTRODUCTION TO MALAYSIAN
ASSOCIATION OF REGISTERED
ELECTRICAL ENERGY
MANAGERS
(MAREEM)
“Professionalism, Integrity & Efficiency”
BACKGROUND, VISION AND MISSION
•Establishedon14March2016
•FirstAGMon12December2017
•Formedtomeettheneedsforacommon platformtorepresent
registeredelectricalenergymanagerswiththeenforcementof
EfficientManagement ElectricalEnergyRegulations2008byEnergy
Commission
VISION STATEMENT
Develop and promote the profession of energy managers
towards professionalism, reliability and integrity of the highest
order that are recognized both nationally and regionally
MISSION STATEMENT
To play the necessary roles for the effective implementation of
policies and programmesfor energy management initiatives
towards achieving Malaysia’s aim to become a developed and
sustainable country

3. 3
THE CONSTITUTIONAL GOALS
To develop, introduce & promote guidelines for best practices & code of
ethics in providing energy management services as a reference point in
Malaysia & regional markets
To promote & raise awareness of the roles & responsibilities as energy
managers that can be played in all sectors
Promote the upgrading of skills and knowledge of its members
To collaborate with relevant stakeholders in the various sectors to develop,
expand & explore the potentials for energy managers in EE industry
Keeping the welfare of its members & create healthy competition among
members through professional services with integrity
To assist directly & indirectly in terms of professional inputs & feedback in the
planning & implementation of policies related to energy, initiatives &
programmesat the national level
MEMBERSHIP TYPES
Competent Member and with voting rights
•Must be a Registered Electrical Energy Manager with Energy
Commission
Associate member and with no voting rights
•Not a REEM but with experience or interested in the field of energy
management / EE
•Holders of diploma / academic / professional individual with an
interest in EE / energy management
Student and with no voting rights
•Bachelor's degree program undergraduates who are interested in
energy management/ EE field from recognized educational
institutions
Current membership status:
About 30% of total active REEMs in Malaysia

4. 4
OVERVIEW OF ENERGY IN
MALAYSIA, ENERGY
EFFICIENCY & ENERGY
MANAGEMENT BENEFITS &
POTENTIALS
TOTAL FINAL ENERGY CONSUMPTION BY
FUEL IN MALAYSIA
Source: WEO2015_SouthEastAsia_IEA-ERIA

5. 5
ELECTRICITY GENERATION BY FUEL IN
MALAYSIA
Source: WEO2015_SouthEastAsia_IEA-ERIA
Moved from oil dependent to gas &coal dependent for
electricity generation.
The dependency on coal from Indonesia reduced from 84%
in 2008 to 65% in 2011.
ENERGY RELATED CO2 EMISSION BY
SECTOR MALAYSIA
Source: WEO2015_SouthEastAsia_IEA-ERIA

6. 6
KEY BENEFITS OF ENERGY
EFFICIENCY(EE)
✓Reduced exposure to the uncertainties in energy price fluctuation(
increases)
✓Deferred capital investments
✓Increased attractiveness to investors & access to capital –
new/additional source of economic growth
✓Create new job opportunities
✓Improved energy security
✓Reduced operation & maintenance costs
✓Reduced greenhouse gas emissions
✓Reduced exposure to greenhouse gas emissions related costs
GLOBAL ENERGY EFFICIENCY POTENTIALS
✓Energy efficiency potential used by sector in the New Policies Scenario
✓2/3 of the economic potential to improve energy efficiency remains
untapped in the period to 2035
Source: IEA

7. 7
WHY ENERGY EFFICIENCY IS CRUCIAL FOR MALAYSIA?
Energy demand projected to increase from 2,000 PJ(2009) to 4,013 PJ(2030), average
rate of 3.6% /year
Short term &long term measures that can be taken is through EE initiatives while working
on looking for new energy sources (RE& alternative energy)
To balance and reduce the supply &
demand gap
Source: EPU,2011
WE NEED
TO CREATE
THE EE
LINE!
TO QUANTIFY!
OVERVIEW AND KEY CONCEPTS
IN EFFECTIVE ENERGY
MANAGEMENT IMPLEMENTATION

8. 8
WHY ENERGY MANAGEMENT?
Business
✓Achieve far greater savings than
those without EM-go straight to
your bottom line which can free up
the capital for other areas
✓Reduce costs by at least 20%. 10%
reduction on energy costs for
little/no up-front cost
✓Enhance the corporate image
✓Meet green markets demand &
requirements
✓Increase productivity &
competitiveness
✓Improve staff wellbeing -EE
environments are often more
productive
Environmental
✓Most cost-effective
ways to reduce
carbon footprint
✓Save fuel costs
when reducing
carbon footprint
✓Fulfil commitment
for global climate
change mitigation
measures & goals
WHAT IS ENERGY MANAGEMENT(EM)
& ENERGY MANAGEMENT SYSTEM
(EnMS)?
ENERGY
MANAGEMENT
All activities to ensure
efficient use of energy
in the organization
ENERGY MANAGEMENT SYSTEM
The process of managing the
energy use in the organization
✓to ensure that energy is
used efficiently
✓adopting a system
✓to achieve desired results &
for continual improvement
Involved the people &
equipment in the daily
operation
STANDARD
Systematic
approach for the
management of
energy use

9. 9
STANDARDS RELATED TO
ENERGY MANAGEMENT
NO. STANDARD AND SCOPES
1
ISO50001:2011EnergyManagement Systems-Requirementswith
guidanceforuse
2ISO50002:2014EnergyAudits-Requirementswithguidanceforuse
3
ISO50004:2014EnergyManagement Systems-Guidanceforthe
implementation,maintenance&improvementofanenergy
management system
4
ISO50003:2015Requirementsforbodiesprovidingaudit&
certificationofenergymanagement systems
5
ISO50006:2015EnergyManagement Systems–MeasuringEnergy
Performanceusingenergybaseline(EnB)&EnergyPerformance
Indicator(EnPI)
6
ISO50015:2015EnergyManagement Systems–Measurement&
verificationofenergyperformanceoforganisations
WHY NEED TO PRIORITISE ENERGY
MANAGEMENT?
✓EE is fundamental to achieving a sustainable business &
reducing energy cost -should be a KPI for all large
energy users
✓Global energy demand continues to increase &
environmental regulation is tightening -initiatives to
optimiseEE are essential
✓To incorporate EE into business activities -will help
differentiate the organisationwith best practice &
improve competitiveness
✓EM need a holistically approach -integrated across all
aspects of the business
✓EM is a key way to ease the squeeze on profit margins -
being commercially robust & profitable or not being in
business at all

10. 10
GLOBAL ENERGY MANAGEMENT SYSTEM
IMPLEMENTATION SUCCESS STORIES
ARE YOU MANAGING YOUR ENERGY USE?
•What can you see & what can you explain?
•What data & information do you use from it?
•What is your expectation for next month & by year end?
•What actions have been taken and what actions will you take?
•Who can answer all the above for you?
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
Jan-12 Feb-12 Mar-12 Apr-12
May-12
Jun-12
Jul-12
Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13
May-13
Jun-13
Jul-13
Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14
May-14
Jun-14
Jul-14
Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15
May-15
Jun-15
Jul-15
Aug-15 Sep-15 Oct-15 Nov-15 Dec-15
kWh
Month
Monthly Consumption (kWh)
2012-2015

11. 11
SUSTAINABLE ENERGY MANAGEMENT
SYSTEM IMPLEMENTATION FRAMEWORK
MANAGEMENT
COMMITMENT
POLICY
PLANNING
IMPLEMENTATION
&
OPERATION
SYSTEM &
PERFORMANCE
CHECKING
MANAGEMENT
REVIEW
Management involvement
Day-to-day activities
Energy management is more about managing human than equipment.
Do you agree?
ROLES OF ENERGY
MANAGERS
IN EFFECTIVE
ENERGY
MANAGEMENT
IMPLEMENTATION
FOR
ORGANISATIONS

12. 12
KEY ROLES OF ENERGY MANAGERS IN
ENERGY MANAGEMENT SYSTEM IMPLEMENTATION
•Key resource person on EnMS development &
implementation
•Assist the top management representative for EnMS
•Reviewefficacy of existing energy policies, practices &
initiatives
•Developnew policies aimed at improving EE
•Set target goals
•DevelopEM action plan
•Assess every project based on its return on investment
•Presenta strong fiscal case for EE implemented
initiatives
•Building/facilities automation control strategies
•Monitor&evaluate energy use, analyze &track energy
expenses
•Maintain&improve operational & equipment
efficiencies
•Identifytraining & competency requirements
•Evaluatethe data needed for any recommendation
for improvement
•Prepare & present EM reports for progress updates &
management reviews
•Supportcorporate sustainability/EE initiatives
•Keep up withlatest industry & technologies trends
•Embracesocial consciousness while making cost
reduction a main priority
•Completerequirements for certifications & regulatory
TOP
MANAGEMENT
OPERATIONAL
PERSONNEL
FUNCTIONS AND DUTIES OF ELECTRICAL ENERGY
MANAGERS IN MALAYSIA
Regulation 16 :Efficient Management of
Electrical Energy Regulations 2008
•To AUDITand analyse the total electrical energy
consumption or generation
•To ADVISEin developing and implementing
measures to ensure efficient management of
electrical energy at the installation
•To MONITOReffective implementation of the
measures
•To supervise the keeping of RECORDSon
efficient management of electrical energy at
the installation and verify its accuracy
•To ENSUREthe timely submission of information
and reports under the regulations
Installations with total use > 3million kWh in 6 consecutive months
Installations with total generation for own use > 3million kWh in 6
consecutive months

13. 13
Energy
manegement
implementation framework for
organisations in Japan
REGISTERED ENERGY MANAGERS IN JAPAN
Energy Conservation Act 1979
•Authorization of the competency & position of the
Energy Manager
To top management : Advising on
•Improvement plan of energy efficient equipment
& facilities
•Organization for EE & conservation
Responsibilities
•Making the periodical report
•Keeping the energy consuming facilities in sound
condition
•Carrying “energy audit”
To operational staff
•Instruction to the employees for energy
conservation activities
•Technical advice for energy efficient operation of
the facilities
✓Top management shall respect his/her
opinions
✓Employees shall follow his / her instructions

14. 14
ROLES OF ENERGY MANAGERS IN INDIA:
ENERGY CONSERVATION ACT, 2001
✓Prepare an annual activity plan and present to management concerning financially attractive
investmentsto reduce energy costs
✓Establish an energy conservation cell within the firm with management’s consent about the
mandate &task of the cell
✓Initiateactivities to improve monitoring and process control to reduce energy costs.
✓Analyzeequipment performance with respect to EE.
✓Ensureproper functioning and calibration of instrumentation required to assess level of energy
consumption directly or indirectly
✓Prepareinformation material &conduct internal workshops about the topic for otherstaff
✓Improve disaggregating of energy consumption data down to shop level/profit center of a firm
✓Establish a methodology how to accurately calculate the specific energy consumption of
various products/services or activity of the firm
✓Develop & manage training programmefor EE at operating levels
✓Co-ordinate nomination of management personnel to external programs
✓Create knowledge bank on sectoral, national & international development on EEtechnology and
management system & information denomination
✓Develop integrated system of EE and environmental upgradation,wideinternal&external
networking
✓Co-ordinateimplementation of energy audit/efficiency improvement projects through external
agencies
✓Establish and/or participate in information exchange with other energy managers of the same
sector through association
IMPACTS OF ENERGY MANAGEMENT
IMPLEMENTATION IN JAPAN1,327
1,273
1,192
1,101 1,101
1,059 1,059
1,000
978
951
1,036
1,013
1,013
985
1,049
1,091
1,051
1,070
1,077
1,037
1,044
1,021
1,059
1,036
1,038
1,050
1,131
1,142
1,345
1,405
1,467
1,566
1,573
1,438
900
1,000
1,100
1,200
1,300
1,400
1,500
1,600
1,700
' 73 ' 75 ' 77 ' 79 ' 81 ' 83 ' 85 ' 87 ' 89 ' 91 ' 93 ' 95 ' 97 ' 99 ' 01 ' 03 ' 05
Fiscal Year
Primary energy consumption / GDP
Ton oil eq.
/ Billion yen
2nd Oil Crisis
1st Oil Crisis
Source: METI/General Energy Statistics
10 years
Improvement by 30%
10% improved for 20 years
Main Improvements:
•Energy Management
•Energy Efficient Equipment
•Efficient Process & Techologies
•R&D

15. 15
ENERGY MANAGEMENT
IMPLEMENTATION PROCESS
Source : Global Superior Energy Performance Partnership,2013
WHO WILL PLAY THE
KEY ROLES?
WHO ARE INVOLVED?
Energy Managers
Source : Global Superior Energy Performance Partnership,2013

16. 16
INITIATING AN ENERGY MANAGEMENT
Key tasks
✓Developing the
business case
✓Determining internal &
external audiences &
their roles in supporting
EM
✓Engaging stakeholders
✓Developing
multidisciplinary teams
Key personnel
•CEO & senior management
•CFO
•Energy Manager
•Facility Manager
•Other energy team members
Assisted & facilitated by energy
managers
CONDUCTING ENERGY REVIEW
Key personnel
•Engineers
•Technicians
•Other energy team
members
•Consultants/ external
experts
Assisted & guided by
energy managers
Key tasks
✓Data logging & collection
✓Metering, monitoring, M&V
✓Facilitating & managing the
process for identifying EE
opportunities

17. 17
ENERGY MANAGEMENT PLANNING
Key tasks
✓Confirm what types & quantity of
energy used
✓Confirm where energy is used & which
are significant users
✓Identify what affect energy use & who
influenced it
✓Assess the need to have an energy audit
✓Identify measures to improve the energy
performance & consider RE options
✓Confirm legal/other requirements
✓Establish energy baseline, baseload &
performance indicators
✓Set objectives & targets
✓Prepare Action Plan
Key personnel
•CFO
•Energy Manager
•EH&S Professionals
•Engineers
•Facility Managers
•Other energy
team members
Assisted & guided by
energy managers
IMPLEMENTING ENERGY MANAGEMENT
Key tasks
✓Competence, training & awareness
✓Operational control
✓Operation & Maintenance
✓Energy Efficiency Design
✓Energy Efficiency Purchasing
✓Communication
✓Documentation
✓BASED ON THE ACTION PLAN!
Key personnel
•CFO
•Accounting & Financial
Professionals
•Engineers
•Technicians
•Facility Managers
•Training Specialists
•Public Affairs/
Communications
Specialists
•Other energy team
members
Monitored & assisted by
energy manager

18. 18
MEASUREMENT & VERIFICATION(M&V)
Key tasks
✓Identifying factors influencing energy
use/waste
✓Developing & implementing data
management, tracking, & reporting
systems
✓Metering, monitoring, M & V
✓Data logging, collection & use
✓Internal auditing for conformance to
EnMS standards
Key personnel
•Engineers
•Technicians
•Other energy
team members
Assisted by
energy manager
MANAGEMENT REVIEW
Key tasks
✓Writing & presenting reports
✓Showcase progress &
achievements
✓Assess organizational barriers &
agree on counter measures
✓Stakeholder engagement
✓Seek supports for continual
improvement
Key personnel
•CEO & senior
management
•CFO
•Accounting & Financial
Professionals
•Energy Manager
•Other energy team
members

19. 19
FACTORS IMPEDING THE UPTAKE OF ENERGY
MANAGEMENT OPPORTUNITIES
ORGANISATION CAPABILITY
Financial, information &
skills
ORGANISATION
MOTIVATION
Internal & external
factors
PROJECT/PROGRAM
ME ATTRACTIVENESS
Costs & risks
CHALLENGES FOR
ENERGY
MANAGERS
NEW ROLES OF ENERGY
MANAGERS
✓Cross functionality -for collaboration &
buy-in
✓Data driven -for decisions making &
investments
✓Continuous improvement-for on going
reviews of performance to gain
continuous supports

20. 20
WHAT’S NEXT?
To go ahead & secure /maintain
commitment from the top
management to initiate/improve
EM programme
Conduct
energy review
& EM planning
Implement EM Programme
To continue gaining supports from the
top management with performance
improvements & energy cost savings
achieved
Q &A
THANK YOU
[email protected]
[email protected]
0192152700