Academic journal article Management & Marketing

Effective Energy Planning for Improving the Enterprise's Energy Performance

Academic journal article Management & Marketing

Effective Energy Planning for Improving the Enterprise's Energy Performance

Article excerpt

Introduction

Organizations worldwide are currently facing big challenges in terms of managing energy performance. These are ranging from increasing need of renewable energy use, reducing energy costs, reducing carbon emissions and protecting the environment, up to ensuring transparency and reduction of energy consumption, and improving compliance with energy legislation (Bonacina et al., 2015; International Organization for Standardization, 2011). Enterprises are keen to identify the most cost-effective techniques to increase their energy efficiency and secure energy use (Vikhorev et al., 2013). The global pressing needs have prompted the enterprises to implementing both individual energy saving measures and a more systematic approach to improve the overall enterprise's energy performance and increase its competitiveness (Lee and Cheng, 2016; OGP/IPIECA, 2013; Schneider Electric, 2012).

As the focus on energy continues to sharpen in Europe and worldwide due to economic or environmentally driven factors, energy management systems such as the ISO 50001 energy management system are more and more well regarded by enterprises as they enable them to effectively manage their energy use, consumption, efficiency and performance (Dzene, 2015; Brown and Desai, 2014). ISO 50001 is a globally accepted framework for managing energy, providing general energy management system requirements and guidelines for enterprises to increase energy efficiency, reduce costs, and improve environmental performance (ISO 50001:2011). Many industries have already adopted the ISO 50001 international standard, but the process is too slow for many of them (Javied, 2015). The standard was developed to assist the companies in their efforts to manage their energy related matters in a systematic manner and a more harmonized way (International Organization for Standardization, 2015; The Hong Kong Electronic Industries Association-HKEIA, 2013).

Already existing management structures and a strong culture of systematic process management developed through implementation of ISO 9001 model of quality management system and ISO 14001 model of environment management system make it easier for enterprises to integrate energy management (Karcher and Jochem, 2015). Also, harmonized standards for implementation across the enterprise together with a logical and consistent methodology for identifying and implementing improvements will guarantee company's sustainability and increase its competitiveness.

By designing and implementing sound energy management systems and effective process-based energy management structures, enterprises will demonstrate care about continual improvement of their energy performance and also about energy security (Brown and Desai, 2014; Gopalakrishnan et al., 2014). Although, the achievement of ISO 50001 certification will impact incrementally organization's financial performance on longer term (Majerník et al., 2015; Pham, 2015).

Despite the increasing interest in energy management standards, a gap persists between energy management literature and current implementation practices. Building on the energy management literature and energy management standards, in the paper we introduce the essential steps the enterprises should take to practically design a sustainable energy management system. Also, by using multiple case studies of enterprises that have introduced an ISO 50001 energy management system, the paper presents a structured model that companies can use to effectively develop their energy planning and improve energy performance. Key figures about ISO 50001 energy management system certifications worldwide are presented. The key components of the enterprise's energy planning are introduced, as well as practical examples of energy objectives and performance indicators from various industries are offered.

Defining the energy management system

What is an energy management system?

Energy management is a term that has a number of meanings in the literature, but for the purpose of this paper we are mainly concerned with the one that relates to improving energy use, consumption and performance of an enterprise. …

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