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Energy Management (EM) is an activity organized to optimize the use of energy by avoiding waste or recovering unused energy in processes or facilities. EM primarily seeks to utilize energy (electricity and fuel) more efficiently without reducing production levels or lowering product quality, safety and environmental standards.

When an organization practices good EM, top management and employees become more aware of how energy is used, the actual cost of energy and the methods and equipment that can be used to control and reduce energy waste. 

The principle underlying EM must be cost effectiveness: energy efficiency (EE) should only practiced if its end result proves profitable to the company, i.e., the benefits from reducing energy waste and losses exceed the investment cost. Therefore, EM requires both technical and financial evaluation in order to achieve a successful overall plant energy conservation programme.   

What are the benefits of Energy Management?

-       Saving energy always leads to lower emissions (e.g. less smoke and less emission of green house gasses) from the manufacturing sector.

-       Firms achieving savings in energy cost can improve their resilience and competitive position against other competitors amongst domestic firms and in export markets.

-       Effective EM improves ability to better withstand future energy cost increases or energy curtailments.

-       EM programmes can help identify productivity improvement and cost reduction opportunities that may relate to areas other than energy.

-       Since EM incorporates many disciplines (e.g. engineering, management, and human relations) it often results in improved utilization of other resources such as raw materials and manpower.   

-       Top management must form an EMT (Energy Management Team). Forming the EMT will increase the number of people who will involve in the sharing of idea. This will create a larger pool of expertise and networking for communication, monitoring and enhancing the energy programme’s success.