DTEM: Components of an Energy Strategy

Sections in this online guide:

  1. Why use Digital Technologies for Energy Management (DTEM)?
  2. DTEM: Components of an energy strategy
  3. DTEM: Building the business case
  4. DTEM: Selecting the right system
  5. DTEM: Select and evaluate suppliers
  6. DTEM: User guide

2. Components of an Energy Strategy

There are eight key areas to address within an energy strategy:

1. Organising energy management 
Led by the Energy Manager, the energy management team has responsibility for the day-to-day delivery of the energy policy through the implementation of the energy strategy.

2. Regulatory compliance and incentives 
Organisations need to understand which regulations apply to them and what they need to do to comply. Effective energy management provides the basis for efficient regulatory compliance.

3. Investment 
Organisations will usually need some investment to take full advantage of cost-effective energy efficiency opportunities. Projects that cut energy costs should be compared rationally with other investment opportunities. Examples of good investment practice include:

  • ring-fenced energy efficiency budget
  • retention of a proportion of the saving for reinvestment
  • whole lifecycle comparison with competing demands on capital

4. Procurement 
The development of a procurement policy is fundamental to ensuring consistency when purchasing or renting new equipment.  Any policy should state that all significant purchasing decisions must have a formal input and sign off from the energy management team.

Activities related to energy supply procurement should represent only a small part of energy management.

The energy management function should focus on the reduction of energy demand rather than the procurement and administration of energy supplies.

5. Automatic Monitoring and Targeting (aM&T)  
Automatic Monitoring and Targeting (aM&T) is the management information system that supports energy management. Effective aM&T enables you to reduce costs through understanding your organisation’s energy consumption and identifying waste and targeting inefficiency. Digital Technologies for Energy Management underpin aM&T systems.

6. Opportunities identification 
Opportunities for improving energy efficiency can be identified through:

  • analysing energy data from aM&T.
  • carrying out surveys; these can range from assessing staff behaviours to detailed technology appraisals.
  • involving staff; e.g. through team meetings or suggestion schemes.

7. Organisational culture 
An energy management strategy must include engagement with staff at all levels, from the chief executive to the part-time worker. Behavioural change can be encouraged by including energy efficiency tasks in everyday operating procedures, for example, shut-down procedures and maintenance schedules. The data provided by aM&T will provide important empirical data to both inform and underscore a change in organisational culture.

8. Communications 
Good internal communications are an important part of developing a culture supportive of energy efficiency. To demonstrate green credentials, some organisations will communicate their endeavours externally to customers, suppliers, shareholders, the local community and other stakeholders, further highlighting the need for accurate empirical data, provided by aM&T, to support the claims.

Management Review

As with any management process, regular energy management reviews are vital to ensure that progress is being made and that policy, strategy and action plan documents are up-to date and relevant.

A review will generate valuable feedback that can be used to:

  • reaffirm top-level commitment
  • review and amend policies and objectives
  • revise action plans
  • redefine roles and responsibilities

 Go to section 3: Building the business case