building energy management system (bems) free download essay

Topics: World energy resources and consumption, Management, Investment Pages: 6 (1535 words) Published: June 25, 2014
Procurement Category:

What’s Wrong with Traditional
Energy Management?
Start Realizing Untapped
Savings Opportunities and Tame
Volatile Energy Costs

Traditional Energy Management
Approaches are Falling Short—
How to Fix the Problem
Energy utility costs—primarily natural
gas and electricity—account for one to
two percent of sales for the average
business, and can be as much as four
to five percent of cost of goods sold for
manufacturers. With energy prices turning
volatile, corporate management teams
are exposed to the risk of unanticipated
movements in energy costs. They are
feeling relatively helpless because of
the perceived inability to proactively
manage regulated energy costs. At the
same time, firms are publicly committing
to sustainability goals and are now
wondering how they will
achieve them.
Although many firms have implemented
short-term measures to address energy
costs and sustainability commitments,
these efforts are falling short. Our
benchmark data and research indicates
that for most firms, 50 percent of their
initial energy savings disappear within
the first six to 12 months due to a lack
of continuous monitoring, analysis and
corrective action. However, significant
opportunity to deliver value remains.
Analysis from the U.S. Department of
Energy indicates firms that embrace
continuous monitoring and active energy
management practices can achieve 15 to
40 percent energy savings.

Conduct an energy audit:

To establish an energy consumption
baseline—a basic requirement for
successful energy cost optimization—
firms deploy monitoring devices to
measure energy usage from the facility
level down to the machine level.

Implement audit recommendations:

After assessing energy consumption
levels and trends down to the machine
level, managers can implement process
changes to optimize energy consumption.
Actions may range from policy
formulation (shutting down computers
at night, turning off idle equipment, etc.)
to automation (automatically turning
off lights) to equipment optimization
(changing set-points on heavy
machinery and equipment).

Invest in high-efficiency equipment:

With a full view of the energy
consumption and equipment efficiency
profile of the enterprise, firms can
strategically invest in high-efficiency
equipment. These capital upgrades can
lower energy consumption and may also
qualify for rebates and incentives that can
significantly enhance potential return on
investment (ROI).

Figure 1:

This paper looks at why traditional
approaches are failing, and outlines an
active energy management approach
that changes the game and generates
sustainable energy cost reductions.


3 Typical EE Capital

Project Savings


2 Typical Process















Annual Energy Savings

Optimization Savings

1 Typical Monitoring
1 Typical Monitoring Savings

Typical energy management
strategies—and why they fail
to deliver sustainable value

Copyright © 2014 Accenture All rights reserved.

For example, when firms conduct energy
audits, employees and equipment
operators are aware that their energy
usage is being monitored and they make
changes to reduce consumption, such
as turning off idle equipment. But when
monitors are removed, initial savings
peak and then slowly erode as employee
behavior returns to normal. Similarly,
when firms implement process changes,
substantial initial savings accrue.
However, when the monitors come off,
gains decline as equipment schedules
change. Operators go back to the old way
of doing things and set-points revert to
old levels. In addition, without detailed
machine-level consumption data as a
baseline (as opposed to a point-in-time
snapshot), analysts are unable to come up
with truly optimal process improvements
because the data is not...
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