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What are The goal of Energy Management?

What Is Energy Management?

The goal of Energy Management is to reduce the cost and risk of energy supply shortages, price increases, and business failure. This process is used to optimize the use of energy and match it with the power available for future use. Its main goal is to maximize the economic benefit by reducing energy losses and increasing the reliability of the energy network. The benefits of Energy Management go beyond cost savings. It can also improve employee morale, productivity, and environmental sustainability.

The primary goal of Energy Management

is to minimize economic losses. Usually, this involves altering the electricity tariff system. While most countries still use a traditional fixed tariff that is fixed for certain hours of the day, many countries now use a progressive tariff system that increases with the consumption of the building. In a progressive tariff system, the rate rises as consumption increases. The energy consumed by each building is divided into several slices, each of which is subject to a different tariff.

The primary goal of Energy Management

is to reduce economic losses. To achieve this, the electricity tariff system needs to be altered. The traditional fixed tariff, which is fixed at different hours of the day, is no longer suitable. Instead, the new progressive tariff system is decomposed into slices, each one with different energy consumption. As a result, the electricity tariff system will be more effective and more affordable for everyone. But it requires a thorough analysis to ensure that the program is the best choice for the organization.

A proper Energy Management strategy

begins with a company’s organizational structure. The decision-makers need to be in a position to make good decisions. It is important to have a clear idea of how much energy is being spent at each building and how much is being consumed. As a result, energy management should be integrated into the company’s overall strategy. The organization’s culture should be ethical and promote the values of environmental and social responsibility.

Large organizations should implement

an energy management unit. This unit should be responsible for monitoring the company’s energy consumption and supporting senior management. The energy management unit should be located between the CEO and the second hierarchical level. In divisional organizations, the manager should be in charge of the overall energy management. However, it is possible to create several sector-specific energy-management units. Moreover, matrix-type organizations can incorporate the functions of an Energy Management unit as a matrix function.

Large companies should implement

an Energy Management program to ensure that it is effective in all sectors. It is critical to make sure that the goals and objectives of the program are aligned with the company’s goals. The process begins with the organization’s vision and mission. By incorporating the goals of energy management into the organizational structure, companies can improve the company’s performance. In addition, a successful Energy Management program will be able to reduce peak load during unplanned periods.

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