Importance of Energy Management

Energy is to be regarded as a necessary business cost, directly associated to production and every other process in all companies, just like labour. Companies can achieve substantial reduction in energy bills by implementing simple housekeeping measures that are quite simple to achieve. Reduction and control of energy usage is vital for an organization as it:

• Reduces costs: Reducing cost may be considered as the most compelling reason for saving energy, because it causes a direct positive accounting factor. Most organisations can save up to 20% on their energy cost by simply managing its use.
• Reduces carbon emissions: Most people in the world woul consider the reduction of poluition as the main outcome of energy consumition reduction. Due to climate changes and consequent reduction of the level of water reservoirs, oil powered generators are used all over the world. Diesel engines move a large portion of the world's goods, power much of the world's equipment, and generate electricity more economically than any other device in their size range. But the diesel is one of the largest contributors to environmental pollution problems worldwide, causing ever-increasing global emissions. Diesel emissions contribute to the development of several important diseases, like cancer; cardiovascular and respiratory health effects; It also causes the pollution of air, water, and soil; soiling; reductions in visibility; and global climate change. Reducing energy consumption also reduces carbon emissions and adverse environmental effects. Reducing your organisation’s carbon footprint helps build a ‘green’ image thereby generating good business opportunities.
• Reduce risk: Reducing energy use helps reduce risk of energy price fluctuations and supply shortages that may be caused by na always growing energy demand.

Companies worldwide are showing a growing interest in promoting energy management on its activities. This might be achieved through a series of steps starting with setting up a system to collect, analyse and report on energy consumption and costs which may involve reading electricity meters regularly and analysis of utility bills.

In addition to obtaining financial benefits, sound energy management is rapidly emerging as an integral part of carbon management which in turn helps organisations in effective overall environmental management, bringing other significant advantages for an organisation such as:

• Organisations achieve stronger market position by demonstrating ‘green’ credentials under na efficient energy management policy; it improves competitive advantage as most consumers prefer to source from socially responsible businesses;
• Energy management systems can influence supply chains by preferring suppliers who adopt environment management practices; and
• Energy management creates a better workplace environment for employees by improving working conditions.