Energy management for large energy users

Establish an energy management system

An EnMS is an ongoing process of identifying, planning and implementing improvements in the way an organisation uses energy.

Conduct an energy efficiency assessment

Organisations need to factor in their size, energy expenditure, and resources when planning an energy-efficiency assessment.

Energy procurement

Understanding retail procurement options and demand side opportunities are central to a comprehensive energy management strategy.

This section is designed for energy-intensive businesses with a net energy consumption of more than 0.05 PJ per year.

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Energy is an essential business input and often a significant line item of company operating expenses.

Comprehensive energy management means embedding it as a fundamental principle in your business operations. It relies on processes to monitor, control and reduce energy use which can reap many benefits.

Benefits of energy management

Businesses can find many benefits with ongoing energy management. Processes to achieve best practice in energy management can build business value.

Unlock significant savings

Businesses with a strategic approach to energy efficiency often find projects with short payback periods and ongoing reductions in costs.

Reduce impact from future energy price increases

Energy efficiency improvements help offset rising energy costs making your business less vulnerable to future price increases. The return on investment for projects improves as energy prices increase.

Improve risk management

Effective energy management is a core component of a robust risk management strategy.

Business risks associated with rising energy prices and inefficient energy use include:

reputation
operating cost
supply chain
energy security
climate.

The Queensland Government provides information on risk management including how to manage environmental and climate risks to your business.

Improve productivity

Understanding energy use as a function of output and other performance metrics can identify productivity improvements through reduced consumption of resources. Improvements in energy productivity often come with improvements in the use of materials, water and other resources.

Reduce greenhouse gas emissions

Energy is often the primary source of greenhouse gas emissions. Improving energy productivity and exploring different sources of energy reduces your carbon footprint and the associated risks and costs.

Reduce maintenance costs and improve reliability

Energy efficiency actions can prevent problems and reduce the load and operating hours of equipment. This can reduce labour and component costs and extend the useful life of the asset.

Reputational benefits

Public perception is an important consideration for many companies. A strategic approach to energy management can display good corporate citizenship, attract investment, and support the company’s social license to operate.

Empower and inform senior management

An energy management system provides senior management with insights into how energy is used and opportunities for improvement. It shows how resources can be directed to manage a key business input.

Motivate your workforce

Businesses that actively monitor and manage their energy use often enjoy indirect benefits such as a more motivated workforce. This will assist with identifying and monitoring inefficiencies in the business.

Without an effective energy management system and motivated workforce, opportunities to improve energy use (and reduce emissions) may go unnoticed.

Best practice in energy management

Companies that successfully manage their energy have several elements in common:

commitment from senior executives and clear strategic leadership on energy management
integration of energy management into existing systems
cross-functional responsibility for energy management including the financial, operational, and environmental roles within the business
resourcing of the energy management strategy with skilled personnel and sufficient funds for implementation
energy efficiency goals that can be translated into timed and measurable performance goals included in management performance metrics
tracking, measurement and reporting systems to monitor performance
effective internal and external communication of the priority given to energy management, and the performance and successes of the energy management strategy.

Read more about how to establish an energy management system.

Energy sources, procurement and demand side management

An understanding of energy use throughout an organisation can help reduce the cost of procurement.

Generation technologies, fuels and contractual opportunities can be assessed and implemented as part of a comprehensive energy management strategy. When combined with energy efficiency measures, the optimisation of energy supply contracts, fuel supplies and onsite generation technologies can bring big benefits.

Many businesses have considered or implemented alternative energy sources or generation technologies such as solar PV systems and heat pumps. Fuel switching may also result in cost savings for stationary and transport applications. For businesses facing network constraints, alternative energy technologies can also expand capacity.

Managing the use of peak and off-peak power, maximum demand, power factor and other aspects of electricity contracts can result in big savings. Depending on the size and nature of loads at a site, demand side management opportunities may provide an additional income stream for curtailable loads.

Read more about energy procurement and demand side actions.