PENG 472 - ENERGY

MANAGEMENT

Benedict Yankyerah
Course outline:

Introduction to Energy Management

The Energy Audit Process:
Understanding Energy Bills
Economic Analysis and Life Cycle Costing
Energy monitoring, targeting and waste avoidance
ISO 50001
Implementation of Energy Management Programmes
Assessment:
Total (100%)
5

15

20 60

Final exams Mid Sem Quizzes & Group Assignments

Introduction to Energy Management

• Energy Terminology
• Energy and Sustainability
• Units and Conversions
• Defining Energy Management
• Objectives of Energy Management
• Why Energy Management
• Designing An Energy Management Programme
• Implementation**
 Energy Terminology, Units and Conversions

• Energy is the
ability/ capacity of
a system to
perform work.
• Energy sources
are converted into
electricity, heat, or
mechanical work.
The Energy Supply chain

• The Law of Energy

Conservation: energy can
neither be created not
destroyed...
• Primary>Conversion>Tran
smission & distribution>
Final Energy>End use
• Primary Energy: eg. fossil fuels (coal, natural gas, oil), nuclear energy,
or renewable sources (solar, wind, hydro).
• Energy Conversion: converting primary energy into a more usable form
of energy, such as electricity. This often occurs at power plants.
• Transmission and Distribution: transporting the converted energy
(electricity) from the generation site to the end users by transmission
lines and distribution networks. Energy losses occur during this stage
due to resistance and other factors.
• Final Energy: energy that reaches the end users after accounting for
transmission and distribution losses. This is the energy available for
consumers to use in various applications.
• End-Use: The actual consumption of final energy by various devices,
equipment, or processes in homes, businesses, and industries.
 Energy and Sustainability

• Renewability: Using energy

sources that aren't
substantially depleted over
time.
• Environmental Protection:
Avoiding substantial
emissions of pollutants or
other environmental
hazards.
• Health and Social Justice: Preventing ongoing health risks and
social injustices associated with energy use.
 Energy Intensive Ventures
• Energy intensity of a business is the ratio of the cost of Energy
to overall cost of production (in a year).
• An energy-intensive venture is a business or industrial activity
that requires a significant amount of energy to operate. These
ventures consume large quantities of energy as a critical part of
their production processes or services
• Eg. Manufacturing Plants, Data Centers, Mining Operations, Oil
Refineries, Agriculture, Transportation industries
Units and Conversions
• Energy is measured in British thermal unit (Btu).
• Btu Definition: Energy to raise 1 pound of water by
1°F; equivalent to burning one kitchen match head.
• Fuel Energy Content:
• Gallon of gasoline: 125,000 Btu.
• Barrel of oil: 5,100,000 Btu.
• Electrical Energy Measurement: Kilowatt-hour
(kWh).
• 1 kWh = 3412 Btu.
• Generation and Transmission Losses:
• About 10,000 Btu of primary fuel needed to
produce 1 kWh.
• Additional losses during transmission to end-use.
Defining Energy Management

• The efficient and effective use of

energy to maximize profits, minimize
costs and enhance competitiveness.
• This covers production, services,
equipment design, logistics, even
waste minimization and disposal.
 Objectives of Energy Management
• The primary objective of energy management is to maximize profits and/ or
minimize costs: By:
1. Improving energy efficiency and reducing energy use
2. Reduce greenhouse gas emissions and improve air quality.
3. Developing and maintaining effective monitoring, reporting, and
management strategies for wise energy usage
4. Finding new and better ways to increase returns from energy investments
through research and development
5. Developing interest in and dedication to the energy management program
from all employees
6. Reducing the impacts of curtailments, brownouts, or any interruption in
energy supplies
 Why Energy Management

Econimic Environmental Social

 Designing An Energy Management Programme

• Organizational Structure:
– Adapt to existing structure; locate energy manager high
enough for access to key players and knowledge of
company events.
– Ensure top management support and select a visionary
energy manager.
– Develop a team with complementary skills and rotating
membership.
 Roles and Strategies for Energy Management
• Energy Manager:
– Secure top management support.
– Avoid working alone; involve everyone.
– Adapt to changing qualifications
• Energy Team:
– Core of the program; represent various departments.
– Rotate coordinators annually to bring new ideas and remove non-performers.
– Ensure team has a mix of technical knowledge, planning skills, and communication
abilities.
• Employees:
– Tap into the greatest resource for ideas on efficient energy use.
– Implement a structured method for idea solicitation.
– Understand and utilize motivation techniques for employee engagement.
 Setting up an energy management program
• Situation Analysis
– Determine what has been done before.
– What were the results of this effort?
– Next, plot the energy usage for all fuels for the past two—or
more—years,
– Then project the usage, and cost, for the
– next five years at the present rate.
– This help you sell your program and identify areas of
concentration for reducing energy.
• Energy Policy:
– Short and effective
– Include objectives, accountability, reporting, and training.
– Establish authority for energy management program and the team.
• Training
– Start with basic energy training, which can lead to higher-quality
suggestions and increased morale.
– Training should cover: energy conservation, fundamentals of electric
energy, fundamentals of energy systems, conducting energy surveys and
identifying key areas
• Audit planning and auditing
– Planning phase involves specifying the types of audits to be
conducted, assembling the appropriate audit teams, and
scheduling the audits.
– Typical areas to audit include: Motors, Lighting, Steam
systems, Water usage, Controls, HVAC systems, Employee
suggestions
– Energy managers may contract an Auditor/ performance
contractor or set up an in-house audit team or have a
combination of both approaches depending on the facility’s
needs.
• Reporting
• A graphical representation comparing current usage to a
baseline year, supplemented with short narratives, can be
effective
• An effective reporting system should:
– Be customized to individual circumstances.
– Provide a clear indication of the findings of the audit and
subsequently how an energy programming is faring.
– Serve as a direct communication line to management.
– Facilitate analysis and coherent presentation of information.
• Schedule
• From the previous steps develop a schedule of events for
the next year, timing them so as to give periodic actions
from the program, which will help keep the program active
and visible:
• Schedule trainings, evaluations, policy reviews, feedback
reviews, etc.
 Group Assignments
1. How can sustainable energy practices be integrated into the operations of petroleum engineering
in Ghana to reduce environmental impact and promote long-term energy security?
2. Investigate the current sustainable energy practices in the petroleum industry in Ghana. What are
the main challenges and opportunities for enhancing sustainability, and how can these practices
be improved?
3. What are the critical components of an effective energy management programme for a petroleum
engineering facility, and how can these components be tailored to the specific needs of the
Ghanaian context?
4. Analyze successful energy management programmes in the petroleum industry globally and
identify key components that could be adapted to the Ghanaian context. What are the potential
barriers to implementation, and how can they be addressed?
5. Why is a thorough understanding of energy terminology and units important for petroleum
engineers, and how can this knowledge be applied to improve energy efficiency in petroleum
operations?
6. How does your understanding of the discussed energy terminology and units in this chapter make
you appreciate the need for energy management practice in the industry, and what measures can
be taken to improve it?