Energy Efficiency: Mitigating electricity costs in the long run

 Introduction

Efficiency in energy management is increasingly the focus of many organizations. This is because corporations now understand the double benefits that it bringss. This is because corporations now understand the double benefits that it brings. Efficiency in the management of energy resources helps companies reduce the negative impact of energy usage on the environment while also reducing the cost of energy for the companies. As such, this research seeks to understand the options available for organizations wishing to mitigate the costs of electricity over the long term.

Mitigating electricity costs in the long run

Energy efficiency, which is the act of lowering demand for energy by reducing ongoing usage of such energy, is the most effective way to mitigate electricity costs in the long term. In order to effect energy efficiency in the system as a way of reducing electricity costs in the long run, the company needs a comprehensive energy action plan that will bring about effective cost management and sustainable energy supply goals. Keith and Cassie (2014) identified the following as the most effective energy management action plan in their interview with Schneider Electric customers:

1. Measure energy usage: comprehensive data should be gathered from each facility within the company to determine how energy is used in the whole system. From the data gathered, the company will know the facilities that consume the most energy, how they consume it, what they consume it for, and the peak and off-peak consumption rates. This information is important for the other processes below.
2. Fix the basics: once the company has identified some issues from the above energy measurement stage (such as areas where energy is being wasted, like rooms that have their lights and energy systems on when they are not in use), it will need to address these issues by fixing them and making sure that energy consumption is based solely on demand and wastage is effectively reduced in the process.
3. Automate the usage process: the best way to fix the issues with energy waste in organizations is by automating the whole company’s energy sources. This way, the energy department can turn on or off switches based on usage and effectively reduce costs in the process. This is because the company can easily reduce energy costs in the short and long term by turning off all units that are not in use.
4. Monitor and control: once the system has been fully automated, the company also needs to monitor the whole system to ensure its functionality and correct any areas that are failing. This way, the company can establish reliability over the long term and effectively reduce the electricity cost.

Optimum approach

It is hard to choose from the four approaches above, as they all go hand in hand. Without conducting the analysis, it is hard to determine areas where energy can be reduced or how to reduce them. It is even harder to automate the system or to monitor and control it. Thus, they all represent an integral aspect of the company’s energy management network. However, for the sake of the questions asked, the optimum approach is the automation system.

Through automation, the company is not just able to reduce costs by offloading systems that are not being utilized within a given unit from one sport, but they are also able to increase overall effectiveness. This is because for most companies, it can take very long, if not impossible, to turn off all individual switches; thus, automation is the only way through which this process can be made possible. Additionally, it provides the company with full control as it can individually switch off units that are not in use while allowing those that are in use to function normally. The level of efficiency, effectiveness, and reliability that it brings along with it is the main reason why automation is chosen as the right approach.

Reference

Keith S. and Cassie Q. (2014) A Four-Step Path to a Comprehensive Energy Management Action Plan Available at: http://www.schneider-electric.com/solutions/nz/en/med/4664682/application/pdf/1220_energy-management-guide-0108ho0902.pdf [Accessed on: November 29, 2014].