Name
: Your name
Batch
: EMTC Session ?
Topic Selected
: Topic ?
Detail description of Topic ?: Proposal to ???? The organization that you are appointed as an energy manager ………………………………………………………………………………………………………… ………………………………………………………………………………………………
CompanyLogo
Page 2 of 21
Your Company Industries
(M) Sdn. Bhd.
This proposal prepared for
BOARD OF DIRECTOR Your Company Industries (M) Sdn. Bhd.
PROPOSAL ON YOUR TOPIC HERE
CompanyLogo
Page 3 of 21
TABLE OF CONTENTS 1
EXECUTIVE SUMMARY
2
OBJECTIVES
3
INTRODUCTION 3.1
Company background
3.2
The Benefit for getting 3-Star Energy Management Gold Standard
3.3
Overview of Certified Energy Management Standard
3.4
Overview of the Sustainable Energy Management System (SEMS)
4
EVALUATION OF ENERGY MANAGEMENT STATUS
5
SUSTAINABLE ENERGY MANAGEMENTS SYSTEM (SEMS)
6
5.1
Energy Policy
5.2
Energy Management Team
5.3
Motivation and Training practices
5.4
Information system
5.5
Marketing
5.6
Investment for energy conservation projects
ENERGY REVIEW 6.1
Energy Accounting Centre (EAC)
6.2
Internal Assessment Program
6.3
Energy Audit
6.4
Summary Steps and Milestone Planning
7
CONCLUSION
8
APPENDIX 8.1
Appendix 1 - Energy Policy
8.2
Appendix 2 - Certificate Electrical Energy Manager
CompanyLogo
Page 4 of 21 1.0
EXECUTIVE SUMMARY
Under the Electricity Supply Act 1990, government of Malaysia has endorsed the Efficient Management of Electrical Energy Regulations 2008. In this regulation stated that any installation which receives electrical energy from a licensee or supply authority with total electrical energy consumption equal to or exceeding 3,000,000 kWh as measured at one metering point or more over any period not exceeding six consecutive months are required to assign or designate a registered electrical energy manager and to submit all the required information pertaining to efficient electrical energy management matters to Energy Commission of Malaysia (Suruhanjaya Tenaga).
In view of the above development, I would please to inform the management that as a newly appointed Electrical Energy Manager, we have complied with the regulations. I also develop strategies and approach to develop Sustainable Energy Management System (SEMS) for the organization.
Thus, the purpose of this proposal document is to get endorsement from the top management of Your Company Industries (M) Sdn. Bhd. to go to another milestone phase from current Energy Management System to 3-Star Energy Management Gold Standard (EMGS) certification.
CompanyLogo
Page 5 of 21
2.0
OBJECTIVES
The objectives of this proposal are:
•
To get endorsement from top management management to apply for 3-Star Energy Management Gold Standard (EMGS) Certification from ASEAN Energy Management Scheme (AEMAS).
•
To get approval to appoint Green Green Tech Malaysia for compliance audit.
•
To get approval for budgetary purposes.
CompanyLogo
Page 6 of 21
3.0
INTRODUCTION
3.1 Company background
Your Company Industries (M) Sdn. Bhd. is established in 1990 and having major market shares of products globally.
We have 17 major internationally reputed clients which has giving high priority concern on environmental issues and very much supportive to the green & prevention global warming initiatives.
We endeavor forward with current number of employees of four hundred seventy people with total production capacity of one million products per month.
3.2 The Benefit for getting 3-Star Energy Management Management Gold Standard
We believed the company will be benefited for following reasons:
i.
It will give an opportunity to demonstrate our company commitment to sustainable energy development and validate our company efforts.
ii.
It’s endorsed by the European Union and 10 ASEAN Ministries of Energy.
iii.
It portrays our company as a leader in sustainable energy development.
iv.
It’s certified our Energy Management System (EMS) is in compliance with international standards.
v.
It’s recognized by United Nations Environment Program (UNEP).
vi.
Improve the corporate image.
3.3 Overview of Certified Energy Management Management Standard
The Energy Committee has decided that our organization has to meet the 3-Star Energy Management Gold Standard with ASEAN Energy Management Scheme (AEMAS) and make a proposal to the top management for the best of the organization.
3.3.1
ASEAN Energy Management Scheme (AEMAS)
The AEMAS is an independent non profitable organization in line with other international standard but add on additional requirements to demonstrate achievements and performance in energy management.
CompanyLogo
Page 7 of 21 Criteria to meet the 3-Star Energy Management Gold Standard
i.
Professional Energy Manager (PEM) NOT Certified Energy Manager (CEM).
ii.
Motivation plan for the personnel involved in the Energy Management System.
iii.
Budget allocated for investment in energy efficiencies measures.
iv.
Procurement policies and internal investment criteria “Energy Efficienciesfriendly”.
v.
Proven Energy Efficiency Index (EEI) improves 5% lower within 2 consecutive years.
Validity of certification is two (2) years from the time it was awarded. This certification cannot be renewed and should be maintained within 3-Star EEI level requirement. If the 3-Star rating is not achieved within 2 years, the 3-Star certification rating is withdrawn. Companies can re-apply for 1-Star certification rating again after 3 years (minimum) from the date the certification was withdrawn.
3.4 Overview of the Sustainable Energy Management System (SEMS) (SEMS)
To meet the requirement of our clients and also has good concerns on environmental issues, our company have successfully developed SEMS through an Electrical Energy Manager and implemented the following: 3.4.1
Energy Policy
3.4.2
Energy Management Team
3.4.3
Motivation and training practices
3.4.4
Information system
3.4.5
Marketing
3.4.6
Investment criteria for energy conservation projects
CompanyLogo
Page 8 of 21 4.0
EVALUATION OF ENERGY MANAGEMENT STATUS
We have reviewed our current status on Energy Management Matrix with respect to our previous status and convince the dramatically improvement has been noticed in a short period of time. We’re expected to certify to 3-Star Energy Management Gold Standard (EMGS) Certification from the ASEAN Energy Management Scheme (AEMAS) in second week of February 2015.
Table 1 : The Energy Management Matrix
CompanyLogo
Page 9 of 21 5.0
SUSTAINABLE ENERGY MANAGEMENT SYSTEM (SEMS)
5.1 Energy Policy
Our company through appointed energy manager has developed energy policy to be used throughout the company. The energy policy is attached as appendix 1 in this document.
5.2 Energy Management Management Team We have established the energy management team for our company which encompassed of the company management team as described below: 1)
Chairman Dario Cardone
2)
Secretary (Registered Energy Manager) Your Name
3)
Production Manager (DGBB/ SABB) Safinaz Binti Borhan
4)
Production Manager (Heat Treatment) Chong Kok Hing
5)
Production Manager (SRB) Danest A/L Nadarajah
6)
Human Resource Manager Salim Bin Kamaruddin
7)
Material Flow Manager Mohd Asraf Abdullah
8)
Engineering Manager Leong Chee Ming
9)
Quality Manager Dr. Amissa Azlan
10) Maintenance Manager Chang Shea Speare 11) Utility Manager Ahmad Muzahar
The energy management team organization chart is shown below:
CompanyLogo
Page 10 of 21
5.3 Motivation and Training practices
For the motivation and training practices, we have successfully conducted six training for various levels of staff. The training course consist mixture of management and technical field.
The total participants are 101 employees attended the training from January 2014 to December 2014.
No
1
nd
2
Date
Training Description
Jul 2014
Energy Manager Training
th
2
15 Jul 2014
3
2 Sep 2014
4
8 Oct 2014
5
9 Dec 2014
6
16 Dec 2014
nd
th
th
th
Support
Participants
External Consultant
3
External Consultant
10
Compressed Air System Optimization Training
In house
15
Electrical Energy Optimization Training
In house
21
Basic Energy Management Training
External Consultant
30
Heat Treatment System Optimization Training
External Consultant
22
Energy Management System for Committee Member
Table 2 : Motivation and training for year 2014
5.4 Information system
In order to set the Energy Efficiency Index (EEI) target for year 2014, 2015 and to monitor the EEI effectively, the set up the monthly monitoring profile for overall EEI for the total plant electrical consumption will be essential.
CompanyLogo
Page 11 of 21 5.4.1
Energy Efficiency Index (EEI) for year 2013 & to date 2014
Electricity - Total TNB
Jan'13
Meter
Feb'13
Mar'13
Apr'13
May'13
Jun'13
Jul'13
3,152
3,058
2,891
3,158
3,246
Aug'13
Sep'13
Oct'13
Nov'13
Dec'13
2,685
2,990
3,395
3,416
(kWh) Energy Used (gWh) Production Volume (1000 Pcs) EEI (kWh/ pcs) Average 2013 EEI (Baseline)
2,557
2,648
2,692
784
826
980
995
1,054
1,040
1,035
811
892
864
893
896
3.26
3.21
3.21
3.07
2.74
3.04
3.14
3.32
3.01
3.46
3.80
3.81
3.26
Target 2014
3.09
Target 2015
2.94
From the trend graph above, we noticed that the EEI trend is going upwards and hence it is necessary for us to have energy conservation initiative to bring down the EEI trend. We use the year 2013 EEI average as baseline for 2014 target.
CompanyLogo
Page 12 of 21 5.4.2
Energy Efficiency Index (EEI) for year 2013
We have started number of activities on energy awareness and energy conservation in year 2014, we notice that the EEI trend start to going down which is correlate to all the actions implemented so far and the momentum has to be sustain with proposed activities.
Electricity - Total TNB Meter
Jan'14
Feb'14
Mar'14
Apr'14
May'14
2,974
2,771
3,017
3,066
3,145
811
893
997
1,085 1,085
1,052
3.67
3.10
3.03
2.82
2.99
Jun'14
Jul'14
Aug'14
Sep'14
Oct'14
Nov'14
Dec'14
(kWh) Energy Used (gWh) Production Volume (1000 Pcs) EEI (kWh/ pcs) Average 2013 EEI (Baseline)
3.26
Target 2014
3.09
Target 2015
2.94
EEI 2014 Improvement
0.41
(0.16)
(0.23)
(0.44) (0.44)
(0.27)
kWh Saving
1,208
(432)
(707)
(1,334)
(849)
Total saving from January 2014 to May 2014 = 801,423 kWh X RM 0.3647 =
RM146,398
5.5 Marketing
To improve the awareness on Energy Management Program, the Energy Management Committee have initiated following activities:
1)
Energy Campaign Day Energy Campaign Day was carried out for our employees, clients, neighborhood factories and contractors. Opening ceremony was officially inaugurated by Minister of Energy, Green th
Technology and Water on 14 February 2014.
2)
Corporate Social Responsibility Program th
Provided recycled green bags for school children and employees on 14 February 2014 (Quantity: 1,000)
3)
Energy Conservation Day th
Distributed 6,000 pcs of pamphlet on importance of energy conservation on 14 February 2014.
CompanyLogo
Page 13 of 21 The awareness program was very successful and also all the employees were appreciated the knowledge they were gained during campaign program. Energy Efficiency Index has been improved substantially after the Energy Campaign Day.
5.6 Investment for energy conservation projects projects
Our Energy Committee is fully aware that if there is no monitoring then there is no management the importance of maintenance and replacement of old inefficient equipment.
To make the Energy Management Program meaningful, we have invested in the following equipment as a part of the program.
Purchased monitoring and measuring equipment as below:
a.
b.
c.
Power meter – 25pcs
Total Cost
: RM120,000
Status
: Completed
Replacement of all compressor air filters – 4 pcs
Total Cost
: RM10,000
Status
: Completed
Replacement of old/inefficient motor to high efficiency motor – 10 units
Total Cost
: RM100,000
Status
: Completed
With the result from above equipment, we have convinced the management the sustainability of the program with new initiative.
CompanyLogo
Page 14 of 21 6.0
ENERGY REVIEW
6.1 Energy Accounting Centre Centre (EAC)
The Energy Accounting Centre (EAC) has been establ ished in various departments in our plant. pl ant.
Shown below are the EACs which have been assessed in our internal assessment program in rd
th
the month of 3 January to 27 February 2014.
6.2 Internal Assessment Assessment Program Program rd
On 3 January 2014, we have conducted the assessment for Energy Manager Role and Responsibility, Energy Manager Working Procedure (EM-WP), Energy Management Committee on the Policies and Energy Efficiency Index (EEI). th
On 6 January 2014, we have conducted our assessment to Energy Accounting Centre -1 (EAC-1) for Administration and Functional Area and Energy Accounting Centre -2 (EAC-2) for Air Compressor A, B, Chiller 1 and Cooling Tower 1. th
On 17 January 2014, we have performed the assessment to Energy Accounting Centre -2 (EAC-2) for Warehouse Area and Energy Accounting Centre -4 (EAC-4) for Air Compressor C, D, Chiller 2, Cooling Tower 2 and 3.
CompanyLogo
Page 15 of 21 th
Finally on 12 February 2014, we have completed the assessment for Energy Accounting Centre -5 (EAC-5) for production machines, Ene rgy Accounting Centre -7 (EAC-7) for Centralize Service System and Energy Accounting Centre -8 (EAC-8) for Heat Treatment Plant.
Based on the internal assessment, we found that most of the information available and system are in order.
Audit Scope
Audit Criteria
Audit Period
Energy Manager
Role & Responsibility, EM -WP
2 January 2014
EM Committee
Policies, EEI
2 January 2014
EAC-1-2
EAC working procedures
6 January 2014
EAC-3-4
EAC working procedures
17 January 2014
EAC-5-7
EAC working procedures
12 February 2014
nd
nd
th
th
th
Table 3 : Internal assessment program conducted for 2014
6.3 Energy Audit th
An internal audit on Overall Energy Management System was held on 13 June 2014. From the internal audit findings, we detected that seven no’s of Opportunity for Improvement (OFI) from various EACs. All these OFI can be rectified and targeted actions will be completed by end of December 2014. Below is the summary table on the Opportunity for Improvement (OFI) findings.
CompanyLogo
Page 16 of 21
OFI LOG SHEET OFI No
Summary of nonconformity
Assessed Department
Expected Completion Date
Completed Date
Remarks
001
Training is conducted on energy management system on Chiller Optimization but the effectiveness of the training is not analyzed
EAC-1,WP-3 (Human Resource)
20 Jun 14
18 Jun 14
The effectiveness of the training has been analyzed
002
Energy power meter is faulty and daily EEI data is not recorded for production machine
EAC-5,WP-5 (Electrical)
27 Jun 14
25 Jun 14
Replaced the faulty power meter and recording started
003
Saving on energy conservation measures for high efficiency motors are not calculated after implementation
EAC-5,WP-6 (Electrical)
30 Jun 14
Pending
Saving calculation is in progress
004
Criteria on energy efficiency not stated in the procurement procedure
EAC-1,WP-8 (Purchasing)
31 Jul 14
Pending
Drafting the criteria is in progress
005
Heat Treatment heating element is not recorded with power meter
EAC-8,WP-5 (Utility)
31 Jul 14
Pending
Planned to replace the faulty power meter
006
Energy Manager certificate expired
EAC-1,WP-1 (Management)
31 Jul 13
pending
Renewal on going
007
Professional Energy Manager Certificate registration
pending
Planned to submit 2 papers describing organization energy management best practice
EAC-1,WP-2 (Management)
3 Jan 15
Table 4 : The internal audit finding
CompanyLogo
Page 17 of 21
6.4 Summary Steps and Milestone Planning
After all the internal audit findings are closed and corrective measures are implemented, we are proposing to engage Green Tech Malaysia to conduct compliance audit to our site to close the gap if any. After one month from the date of compliance audit by Green Tech Malaysia, we will apply to AEMAS for 3-Star EMGS certification. Below are the summary steps and milestone to achieve certified energy management standard.
No
Activities
Status
Remarks
1
Certified Energy Manager
√
Available
2
Sustainable energy management system in placed
√
Successfully carried out
3
Additional motivation and awareness training on energy management system
√
Completed
4
Budget allocated for energy efficiency measures
√
Completed
5
External compliance audit by Green Tech Malaysia
6
Overall EEI evident improves 5% over 2 years
Pending Management approval
Pending and need approval from top management for audit fees of RM20,000
Pending
Target to reach the level by Dec 2015 with 2014 is in tract saving 5% as the baseline reference year 2013
7
Professional Energy Manager Certificate
Pending
Planned to submit 2 papers describing organization energy management best practice to AEMAS
8
Application for AEMAS 3-Star certification
Pending
Submission eventually after completion of item 6 and 7
Table 5: Step to achieve 3-Star EMGS Certification
CompanyLogo
Page 18 of 21
Table 6: Roadmap for 3-Star EMGS Certification
CompanyLogo
Page 19 of 21 7.0
CONCLUSION
After all the efforts done, we’re hoping to get the endorsement from the top management to apply for 3-Star Energy Management Gold Standard (EMGS) Certification from the ASEAN Energy Management Scheme (AEMAS). We believed we are ready and on the right track for the road map towards 3-Star Energy Management Gold Standard Certification.
Prepared by :
Your Name (Registered Energy Manager of Your Company Industries (M) Sdn. B hd.)
CompanyLogo
Page 20 of 21 APPENDIX 1
CompanyLogo
Page 21 of 21 APPENDIX 2
