Energy Management System (EnMS)

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Energy management systems - EnMS.

Energy is a resource which can (and must!) be managed

    Electricity is one of the greatest welfares and goods that have been bestowed to mankind. It has a strong influence on the overall picture of modern life, which is constantly thirsty for this precious, but limited resource.

     The time when the energy was cheap is well behind us and one day only the history books will tell about it. Despite the trend of energy demand which constantly rises the maximum point up, the access to energy becomes more and more expensive. Therefore, a balance between these two absolute and indisputable factors which will be based on compromise is required.

     For that purpose, the starting point is the fact that energy is a resource that can be managed, whose exploitation can be directly influenced, with same beneficial effect. With its efficient and rational use everybody gains:

  • reduction of the energy expenses
  • reduction of the environmental pollution (greenhouse gases)
  • increase of the competitiveness

     Therefore, the awareness about the preciousness of the energy and the need for its optimization in everyday life has been improved. Even the well-known slogan “SAVE THE PLANET” is actually a mild version of the slogan “SAVE OURSELVES”. Energy saving is one of the ways that will contribute to that.

There are a lot of ways how to achieve the result, how to optimize, how to rationalize…Below in the text we are referring to one of the ways for that.

Energy Management

     From well-known reasons, the energy resources cannot be used without limitations, and that’s why we seek optimal method that will distribute the resources to the REAL needs that carry the greatest EFFECT from energy consumption. 

The term energy MANAGEMENT unites all measures: Programs, Projects and Tasks… whose unique goal is OPTIMIZATION / REDUCTION of the energy consumption.

This raises the question: what is the way to the goal and how does it look like?

The real way is simple; it comes from a well-known rule set by the American eminent professor and statistician William Edwards Deming, 1900-1993: Plan-Do-Check-Act:

  1. Plan - assign a specific goal that will influence your energy map. Focus and make a plan how to reach the optimal energy configuration;
  2. Do find a way to implement the plan. Implement the defined solutions, procedures, measures…;
  3. Check - how and how much the implemented procedures and measures lead to the set goal. Check the results, and then do the evaluation and improvement of the procedures;
  4.  Act - if the results are certain and lead to the goal, expand the field of action through the same steps 1, 2 and 3 and the other entities that are part of your energy map.

These 4 simple steps ensure a result that leads to the goal. I can always do it better or what can I do better is the key slogan in every step. The apparently small and insignificant things, which looked at for a long period mean improvement and saving, should be included in the Plan-Do-Check-Act. The targets and the goals are subject to constant improvement and this requires continuous focus, management and systematic approach to the operational level, but above all a will for changes and improvements is required.
The rule Plan-Do-Check-Act will constantly upgrade the energy policy in Energy Manegement System. After it has been moved, the system will enter into a cycle that reaches economic, ecological and systematic benefit, a system that continuously generates constant saving of the energy consumption.

The ISO50001 standard

When the commitment to achieving optimal (saving) energy policy will reach the required level in higher management, an extension of the systematic approach to all internal segments of the company is required.

This comprehensible approach is embedded in the international ISO50001 standard, whose unique goal is construction of Energy Management System that Contentiously Saves. The basic concept on which this standard is based is similar to the other well-known standards (ISO9001, ISO14001) and it is subject to CONSTANT IMPROVEMENT.

How does this standard imply changes in the company?

The following picture gives an example of a global statistic movement of the energy costs in a company, before and after the implementation of the ISO50001 standard in a period of three years. The benefit of the implementation is greatest in the first year when the most trivial measures at operational level are adopted. The real benefit is saving 10÷15% from the consumed energy.
The standard can also help the company in investment undertakings in the selection of procurements of any equipment which has not only the required technological characteristics, but also the needed energy standards.
Thus, the energy policy of the Energy Management System becomes part of everyday obligations at operational level in the whole company that guarantees certain benefits.

Energy management systems–EnMS 

One of the ways for securing the elements in the Individual Energy System is the need for continuous measurement of the consumption. First and simple way for these measurements is to establish EnMS-System within the company.
The concept of building EnMS-System which is implemented by LOGING Electronics is simple “A system for measuring and managing all energy sources”. Its general structure and features are:

  • Devices for measuring consumption of any energy source: electricity, gas, water, oil, fluids…
  • Software application for acquisition/collecting measurement parameters, their processing, analysis and creation of reports adjusted to the operational needs in the company and the typified management needs, with automatic reporting to some of the modern telecommunication devices: laptop, mobile phones, tablet through SMS, e-mail, web-access…
  • Communication infrastructure: universal solution that supports: cooper internet, optics, GPRS or other industrial protocol.
  • The system is modular and it can be upgraded in phases according to the company’s general implementation plan, without the need for construction of new systems for measuring and managing of all energy sources. Everything is being monitored, controlled and managed through a software application.
  • Based on the results obtained from the processing and analysis within the software application, algorithms/procedures for automatic or manual managing of the consumers of the appropriate energy source are built.
  • The built-in hardware and software meets the criteria and requirements of ISO50001 standard, and by that the company has no obstacle in some of the next phase to implement it.

     Login Electronics in the area of EnMS-Systems has been actively involved in the Republic of Macedonia for a long period of time (around 7 years). At the beginning, during the working visit in the companies the experience showed that companies were not thinking specifically about saving energy. The opinion that the price for energy sources is included in the percentage calculations for the unit and that it is sufficient for normal operation of the company. Why to build an energy system that will encompass the entire company to every level, initialization of changes in it, new project, new responsibilities ...!This opinion over the years was slowly changing in the right direction.
     The biggest movement in the companies were made by the legal announcements for liberalization, when they started to inquire about specific solutions to their applications. That happened in the last 12 ÷ 18 months. The delays of the liberalization have stretched the decision that is the acceptance that it is time for changes. In reality the situation is still the same; our mentality to do everything in the last minute still prevails. But this is a very serious matter and issue which includes control over many factors, which can rock the companies to the ground. The building of EnMS System is a process that requires a time to archive, to acquire knowledge and experience to give the correct result, and then it is very simple to maintain and upgrade it, but the company needs to get there!
Few companies in recent years are occupied with this problem and seek a solution how to start their application. Those that began have implemented solutions and some are in the final stages of implementation and will be ready to start the process of liberalization. But it's all new to them , so it is expected the competent institutions to actively monitor the situation in the field, to remove possible anomalies in the legislation and to "predict the hour". Together with the participants to accept the concept of mutual learning in order to get to the goal of liberalization as soon as possible - competitive companies in the Republic of Macedonia.
   Cost of EnMS-System. The experience shows that if you only look at the current bill that companies pay for the consumed energy per month, the investment is too small in relation to the short-term benefits expected from the existence of an Individual Energy System.Hence, the period of viability / return of investment from the expected savings from the EnMS-system is short. In the Republic of Macedonia, the USAID project for industrial management has started since 2013. The project will initially include 17 companies from certain sectors (primarily production) that will be financially assisted in the implementation of the EnMSsystem with a grant of 50 % of the total sum, but not more than 20000USD. LOGING Electronics is part of this project . The first successfully implemented system from this project was officially launched by LOGING Electronics.

LOGING Electronics has a contract for assistance in financing these systems in companies and from other sources if needed.

Practically implemented EnMS-System

            To see myself in a mirror, to get a chance for a change!
     Obtaining information on the current energy profile of the company is the first most basic benefit from the systematic integration of the parameters of consumption. This is always the starting point from which all plans, procedures, measures start. As the general manager of HiTech Corporation Mr. Savo Stankovic said at the official handing over in his company about his expectations from the implementation of EnMS- system : " I want to see where am I, I want to see myself in the mirror and I will be able to decide what to do or not to do, I will have a choice or I will tuck my head in the sand and I will continue as now".

The operational team at HiTech from the first week of the release of the EnMS- found a problem: one machine continuously makes unnecessary peak load during its commissioning, which can be eliminated by SolidState relay. The saving from the solution of this problem is ~ 900eur/monthly in the electricity bill after the current valid tariff 10800eur/yearly!

Some software tools for analysis

     To complete the picture of this first phase additional elements are required, for eg. previous invoices for electricity or from any other energy source implemented in the EnMS system, examination of the distribution of consumption per customer, etc. The parameters of the measuring points are monitored at specific time intervals according to the company's needs: daily, monthly, hourly... The picture shows some typical displays of the EnMS-software system.
     The second phase of implementing the EnMS- system is based on analysis and statistics. Based on the archive obtained in phase 1, various other parameters specific to the company associated with manufacturing and services such as: production volume for the period, season, daily temperatures expected statistical etc are added. The result of these analyzes should provide mathematically derived parameters against which energy policy will be build,for example: prediction and balancing of the energy consumption or gas in accordance with the legal provisions and other energy sources that will be included by law, the amount of electricity consumed per unit of product...
The third phase involves implementation of concrete actions and measures in the company’s Individual Energy System that will contribute to its spending sparingly. A good part of these measures can be implemented via the software of this system, so the EnMS-The system adds a new dimension – MANAGING the customers in order to continuously improve the SAVING process.
     As a standard component in the System, in the part for electricity management,measuring the quality of electricity in accordance with the existing legal EN50160 standard in Macedonia is included. Each supplier should deliver electricity according to the EN50160 standard. Any deviation from that standard is archived by the system and later it is presented as a report and it may serve to prove a supplier legally. At the same time, the system provides information whether the problem with the quality of the electricity is generated internally by the company or it is imported from an outside supplier. Any deviation from the quality of the electricity is a potential for malfunctions of the equipment in the company and it is directly manifested in increased energy consumption which is ultimately paid by the consumer.

Implementation of the EnMS-System – key to Your success

The Energy management  system is a strong, simple tool for substantially continuous energy cost reduction. Once implemented and moved in a cycle it will continuously generate constant value for the company saving energy" and independenceThe benefits of having such a system affects the image of the company directly and indirectly.

Direct benefits:

  • simple, quick, complete and clear picture of energy expenditure
  • easy prediction of the consumption of any energy source: electricity, gas, water, oil ...
  • a system that continuously takes care of saving energy costs
  • reduction of the cost for maximum power
  • increased reliability of the power system
  • reduced emissions of greenhouse gases
  • reduction of the impact of price change of energy
  • increased competitiveness of the company

Indirect benefits:

  • positive publicity
  • improved company image
  • improved, predictable, simple functioning of the operational processes
  • improved safety and health

New legislation in Macedonia for liberalization of the electricity market in relation to building Individual System for Energy-EnMS

    From  April 1st  the liberalization of the electricity market started. For start, 222 companies in Macedonia are covered that until  March 1st  have to register themselves as participants on the market, to choose a supplier, to sign a contract and eventually enter his balance group. This is the administrative part of the obligation.
     The liberalization basically has no purpose to attack the financial condition of the companies or to disrupt their competition! The liberalization means new rules and should not be associated only with the cost of energy, but to other important elements / factors that affect when the "Total" at the end in the electricity bill is put. Knowing the new rules and playing with the knowledge of the new game is crucial for achieving the goal of liberalization: lower electricity costs and greater competitiveness of companies.
The basic components in the new rules that determine the overall bill are:

  1. the price paid on the basis of the distribution fee, depending on the voltage on which the company is connected;
  2. the price paid to the merchant - supplier;
  3. the accuracy in predicting the required amount of electricity per hour and timely notification of the merchant-supplier;
  4. imbalance penalties, incorrect prediction and consumption of greater or lesser quantity of electricity per hour than the announced;
  5. the balanced groups formed and managed by the merchant-supplier.

   The price in point-1 regulated by the Energy Regulatory Commission of the Republic of Macedonia,the cost is fixed and it can not be influenced.
     The price in point-2 subject to agreement with the supplier. This is a price only for correctly predicted and announced amount of energy by company.
The accuracy in predicting (point-3)if the company has an Energy Management System, it will give a result as a prediction for the required amount of electricity hourly. With the experience and an algorithm upgrade which is mathematical formula of more parameters (specific to each company) the accuracy of prediction will increase. These activities for predicting indirectly initiate thoughts and actions at operational level to optimize the consumption of electricity. This will result in continuous saving and therefore, the goal of liberalization of the market will be achieved - lower costs and greater competitiveness of the company.This cannot be achieved without an Energy Management System. The information that the accuracy can be solved only with advice from external specialized consultants without using the reports from the Energy Management System and the knowledge of the internal processes in the company are misconception that the consumers are hold in.
     Penalty pointsan imbalance is any deviation plus or minus of the announced amount. The greater the imbalance is the greater the penalty points are. This is very important element in the electricity bill to which an attention must be paid, otherwise this factor-imbalances can generate financial costs which will be significantly higher than the cost from point-1 and point-2 (for the energy).
     Balance groupseach balance group as a consumer on the market has an obligation to predict accurately and to announce amounts of electricity per hour, any deviation or imbalance is subject to penalty points from point-4.
The management of the balance group:

  • consists of participants / consumers
  • each participant in the balance group must predict and announcerequired amount of energy per hour, with possible situations for:
    ○  accurate predictions, ideally
    ○ wrong prediction
  • within the group : the positive imbalance of some participants is balanced by the negative imbalance of other participants , thus the balance group as a separate / independent consumer needs to achieve its predicted and announced amount of energy in order not to pay penalty points for the imbalance.
  • however, all participants / consumers will eventually get a bill in which those that had correct announcement will have predictable financial amount from point-1 and 2 , and those that had incorrect announcement will have an additional amount for the imbalance ( penalty points from point - 4 ). Managing the penalty points is a matter of the suppliers . This important element / factor - cost of the imbalance in the electricity bill should take into account each participant / consumer , to take care of him currently and to contract with the supplier. The participation in a balance group doesn’t mean relief from penalty points for incorrectly announced amount of electricity (just cut, yes). So again we come to the fact that every consumer should have and build Individual Energy System as part of the EnMS- SYSTEM.

     The information that the liberalization solution is that the consumers should "not do anything" and just buy a "package" for the intended amount of electricity per hour similar to a purchase of a package for predicted communication through mobile phones for a certain period is frivolous, holds companies mislead, without making serious preparations. Time passes, and all this will affect the finances and the competitiveness. Can a user of mobile telephony, electricity or any other energy source know in advance how much does he need hourly / daily / monthly if he doesn’t have accurate report? Without real internal report obtained from the company that includes all important elements / factors the purchase of  a "package" service from any supplier and for whatsoever is kept almost only to intuition, possible sense and therefore it is subject to easy manipulation, and the financial amount that have to be paid from the mistake of wrongly selected package is huge. This is contrary to the purpose of the liberalization of the electricity market not to disrupt the financial condition of the companies and to increase their competitiveness.

    To play successfully by the new rules of liberalization all important elements of the structural process should be known and be under control. Only the successful players can expect real benefit from the liberalization. The companies that have EnMS-system and perform constant training at operational level can expect predictability and savings in consumption and this in itself will then generate actual result: lower cost of electricity!

Download electronic version Interview with General manager of Loging Electronics
Energy Management - References Loging Electronics, contact: [email protected]


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