There is a great need for energy savings, particularly in industry and trade, as energy costs account for a significant share of the overall cost structure of business.



When considering the energy savings program, there are at least five important elements that need to be taken into account in order to come to a successful implementation:



  1. Getting support from the administration
  2. Establishment of database on energy
  3. Overview of energy usage
  4. Identify, evaluate and implement feasible ways to conserve energy
  5. Monitoring, evaluation and monitoring of the impacts of measures / projects for energy saving


Getting support from the administration

For the top management, it is important to note the reasons for energy conservation and the responsibility of employees and / or proposals on implementing ideas on energy conservation and measures in their respective fields.

The Managing Director should establish a special working group or committee for energy conservation. It should consists of representatives from each business department with a head who is appointed. In most organizations, big or small, group manager for energy conservation and representatives from the business department are engaged in activities related to energy conservation part-time, due to the additional tasks in addition to their normal duties and responsibilities.

They are expected to discuss the possibilities of saving energy in different parts of the business or department, and to encourage continuous program of action to encourage interest and participation in efforts to save energy as well as implementing measures to save energy.

Establishment of database on energy

We always want to consume energy more efficiently, reduce production costs, reduce errors and waste in production and make a profit even in a time of high energy costs.

It is important to have complete and accurate records with data on energy consumption. It helps the management to understand the necessity of making programs for energy conservation, which focuses attention on actions that will be able to explore areas for energy saving or justifying actions on the productive use of limited manpower and financial resources.

Without proper records the data on energy and the system of reporting, group manager for energy savings will be at a loss. He will not be able to operate effectively. His decisions could create doubt.

For starters, the energy manager would have to know how much energy is spent and by whom at the company level. These data can be sorted by type of energy and end use. It is also necessary to know the final production capacity.

As can be concluded from the data, the percentage of energy consumption related to oil, solid fuels and electricity, and what percentage of the energy is used for production purposes, non-productive activities, energy production etc.

The ratio of energy consumption and production is a rough indicator of energy intensity, ie specific energy use, expressed in energy per unit of production. A good energy manager should be able to reduce the use of certain energy due to limitations and conditions of operating the plant.

The energy manager can then request information about energy by departments or sections and the main equipment. Collecting information of this kind is quite hard work and in most cases it will require research on how well business facilities are equipped.

When using the energy in the glass factory, 77% of energy comes from petroleum fuels, and 23% of electricity. Glass, as a finished product represents only 63% of bed glass. Similarly, 80% of motor fuel used in furnaces for making glass.

The steel mill, about half the energy comes from petroleum fuels, the other half of the electricity. Only 30% of waste to fuel.

Energy audit (an overview of energy use)

Energy audit is a deep examination of the system or systems that consume energy, which aims to:

  • Identify forms of energy used,
  • explore the history of energy use, data and costs,
  • check the current data on energy and review work practices and procedures,
  • understand the structure of electricity prices,
  • establish an improved procedure for keeping energy records,
  • determine the relationship between energy consumption and production (ie specific energy consumption)
  • identify possible areas where you may be vulnerable to loss of energy,
  • develop appropriate measures to reduce energy consumption.


Identify, evaluate and implement feasible ways to conserve energy

  1. Make a list and options for saving energy:
  2. processes and maintain the demanding small cash expenditures
  3. changes that require a modest cash expenses
  4. changes that require significant capital investment


  1. Briefly describe the engineering concept or scheme for the implementation of proposed measures to save energy
  1. Make a financial assessment showing the savings, the need for financing, return on investment, risks, etc.
  1. Reconsider the proposal which were not considered for implementation or for further analysis.


Monitoring, evaluation and monitoring of the impacts of measures / projects for energy saving

Generally, the organization do not pay particular attention to this stage. Only when the measures go really bad they request details.

The energy manager, regardless of the results, must monitor and measure the effects of measures to save energy in one of the ways to follow:

  • energy use per unit production cost per place of origin
  • energy use per unit of production at the factory.

Furthermore, considering the effects of complex variable resources and models for energy per unit of production:

  • comparing product energy per unit in previous work and theoretical product of energy per unit
  • observation of performance measures for energy saving on your energy reduction per unit of production
  • exploring, identifying and removing the causes of increases that can occur in your energy consumption per unit of production, whenever possible.

First of all, the Energy Manager shall ensure that the communication channel is always open to the general administration and for those at lower levels of the organization. Periodical reports on progress need to be submitted to the Managing Director.