Setting up an effective Energy Management Scheme (EMS) is a systematic process designed to achieve continuous energy performance improvement, reduce operational costs, and lower environmental impact.
It is not a one-time project but an ongoing cycle of planning, implementation, checking, and review.
Key Steps for Setting Up an Energy Management Scheme
The steps for establishing an EMS are structured around a continuous improvement model, often formalized by international standards like ISO 50001.
1. Make the Commitment and Plan the Scope
This foundational stage secures the necessary resources and organizational buy-in.
- Secure Senior Management Commitment: Obtain a formal commitment from leadership, including allocating resources (financial and personnel) and integrating energy management into the overall business strategy. This establishes energy efficiency as a core priority.
- Establish an Energy Policy: Develop a clear policy that states the organization’s commitment to continuous energy performance improvement and sets the overall framework. This policy should align with sustainability objectives.
- Appoint an Energy Team: Identify and appoint an Energy Manager or coordinator and form a multidisciplinary energy team with representation from operations, finance, and maintenance to lead the effort.
- Define the Scope: Clearly determine the boundaries of the EMS—whether it covers a single facility, a specific business unit, or the entire organization.
2. Assess Current Performance (The Energy Audit)
You can’t manage what you don’t measure. This step determines the baseline for all future efforts.
- Conduct an Energy Audit: Perform a detailed audit to understand how and where energy is being used. This involves analyzing utility bills, inspecting equipment, identifying Significant Energy Users (SEUs), and benchmarking performance against industry standards or historical data.
- Collect and Monitor Data: Install or utilize smart meters and sub-metering systems to collect accurate, granular data (e.g., half-hourly) on energy consumption for different areas, equipment, or processes. This helps pinpoint waste.
- Establish an Energy Baseline: Use the data to define an Energy Baseline (EnB)—a quantifiable reference point against which future energy performance can be compared.
3. Set Goals and Develop an Action Plan
With a clear understanding of current usage, you can set actionable targets.
- Set Energy Objectives and Targets: Based on the audit and baseline, set specific, measurable, achievable, relevant, and time-bound (SMART) energy performance targets. These might include reducing electricity consumption by a certain percentage or improving the efficiency of a specific machine.
- Create the Energy Action Plan: Develop a comprehensive plan that outlines the specific actions, resources required, responsibilities, and timelines for achieving the set targets. This plan should include both low-cost/no-cost operational improvements (like behavioral changes) and capital investment projects (like equipment upgrades).
- Finance the Plan: Detail how the proposed changes will be funded, whether through low-cost initiatives, dedicated capital, or financing options.
4. Implement and Engage
Execution of the action plan and involvement of the entire organization are vital for success.
- Implement Upgrades and Changes: Put the action plan into effect. This may involve upgrading to LED lighting, optimizing HVAC systems with smart controls, improving insulation, or implementing a new energy monitoring platform.
- Employee Training and Engagement: Energy management is a people-driven process. Provide regular training to employees on new operational procedures and emphasize their role in conservation. Foster a culture of energy awareness by communicating the financial and environmental benefits.
5. Check and Review for Continuous Improvement
An EMS is a cycle, not a straight line. Regular review ensures sustained savings and continuous optimization.
- Monitor and Measure Progress: Routinely track energy consumption against the Energy Baseline and targets using the established monitoring systems. Identify variances and investigate the root causes of underperformance.
- Evaluate Results: Periodically review the effectiveness of the implemented actions and the entire EMS. This step answers the question: Are we meeting our goals?
- Management Review: Senior management must regularly review the EMS to ensure its continuing suitability, adequacy, and effectiveness, making necessary adjustments to the policy, objectives, and resource allocation.
Real-Life Business Examples
Companies worldwide utilize structured energy management schemes to achieve significant cost savings and advance their sustainability goals.
| Company/Organization | Location/Sector | Energy Management Scheme Summary | Key Result/Benefit |
| Costa Coffee | Global/Retail (UK-based) | Implemented the ISO 50001 energy management system standard across its widespread network of stores, focusing heavily on behavioral change and operational consistency. | Achieved nearly a 40% reduction in energy use from a 2009 baseline, demonstrating the power of standardization and employee engagement. |
| CaixaBank | Spain/Banking & Financial Services | Conducted regular monitoring, centralization, and analysis of data across their extensive network of over 4,000 branch locations to identify and implement energy-saving measures. | Identified 170 distinct energy-saving measures across their branches, reducing overall consumption and operational costs. |
| Wacker Chemie AG | Germany/Chemical Industry | Utilized a highly efficient gas and steam turbine power plant in a Combined Heat and Power (CHP) generation mode. Integrated heat generation from central waste gas incineration into existing steam networks. | Achieved significant savings of 421,000 MWh from steam processes by utilizing surplus thermal energy to cover internal needs and even supply external customers (like a public swimming pool). |
| AB InBev (Beck & Co Brewery) | Global/Beverage | Used an “Efficiency-as-a-Service” (EaaS) model, specifically a Battery-as-a-Service solution from a partner, to manage electricity consumption peaks. | Substantially reduced peak energy demand and expenses by storing energy during lower-demand times and releasing it during high-load periods, stabilizing the facility’s power supply. |
In conclusion, setting up an Energy Management Scheme requires a committed, systematic, and continuous effort. By following the five key stages—Commitment and Scope, Assessment, Goal Setting, Implementation, and Review—businesses can embed energy efficiency into their culture, leading to predictable cost reductions and improved environmental performance, as demonstrated by leading companies across the retail, banking, and industrial sectors globally.