The Human Side of Energy Management:
Energy Management and Jobs

Doug Tripp - Canadian Institute for Energy Training (CIET)

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Unemployment sits stubbornly at close to double-digit levels, while government vows to stimulate job creation. Competitiveness pressures threaten Canadian enterprises. Voluntary efforts on energy efficiency fail to meet carbon dioxide emission reduction targets.

What common theme ties these facts together? Energy management as an area of professional practice is a solution to all three challenges, but there are several obstacles that need to be overcome in Canada if the full potential of the solution is to be captured. This column and those that will follow, explore some of the issues revolving around the "human side" of energy management. They are also a call to action to organizations that share a concern about lost opportunities for marketplace action on energy waste reduction.

The topics in the series will include

  • occupational standards and certification for energy managers,

  • the impact that well or poorly trained facility operators have on energy efficiency,

  • who needs energy efficiency training?
    training or consulting solutions—conflicting or complementary?

  • and the impact that a human resources strategy can have on energy reduction.

No one disputes the fact that jobs are created by energy management activity. While the numbers vary, there is a correlation between jobs created and energy management investment; Natural Resources Canada has estimated about 20 person-years of employment per $1 million invested, and other studies, such as one done by the Ontario Municipal Energy Improvement Facility, place the figure at 24 to 30 per $1 million (and a further 70 person-years indirectly over the 15 year period following the implementation of measures). Significantly, this is job creation from money that is already in the economy—being spent wastefully on energy.

Creating jobs is one thing, but keeping them is another. Canadian enterprises cannot survive when they are spending 25% to 50% more on energy than their best competitors—and many are doing just that. Eliminating energy waste takes pressure off the bottom line and sustains jobs.

There’s not too much debate about the realities of global warming and the role that energy consumption plays, either. Rightly or wrongly, Canada and its national energy reduction strategy were roundly slammed in the media following the recent U.N. Earth Summit for our failure to meet 1990-level CO2 stabilization targets. It remains to be seen whether we can regroup as a nation to present a more favourable face on the international stage in the Kyoto Japan conference in about three months’ time, but it is clear that our efforts need to be redoubled.

Where does a human resources focus fit into all of this? The short answer is, "People—not machines—save (or waste) energy." However, there are several critical obstacles in the way of a comprehensive, effective human resources approach to energy management.

A preliminary exploration of the energy management sector from an HR point of view, done by CIET for Human Resources Development Canada (HRDC), helped to clarify some of these obstacles. For example, two issues concern the occupational definition of the energy manager, and training to provide the needed skill sets. Ask ten managers in any of the large energy-consuming sectors in Canada what an energy manager is and you will be given ten different answers. Therein lies part of the problem. Among the several conclusions of the HRDC study was a recognition of human resources limitations arising from the absence of any consensus on job definition and competency requirements, and a need for more and better training for entry into the workforce as well as for the upgrading of practitioners. Providing appropriate certification and credentials for energy managers was a related concern.

Training and education programs on energy management do exist in Canada, of course, albeit in a rather uncoordinated fashion. Organizations as diverse as community colleges, BOMI, ASHRAE, the Illumination Engineers Society, CIET, equipment manufacturers, and others, offer continuing education, workshops, seminars and conferences on a variety of related topics. Accessibility in remote regions of the country remains a problem, but in urban areas, there are many opportunities for professional development. Part of the solution to accessibility limitations is distance learning programs; CIET is launching its answer to this need in the TEMOL (Training in Energy Management through Open Learning) Program, described elsewhere in this edition of Energy Manager.

As well, a variety of professional designations dealing with facility management are available. None, however, are based on a consensus definition of the "energy manager". The energy reduction challenge that lies ahead, then, isn’t just a technological or financial one. The "human side" of energy management is a critical component of the challenge, and a large part of the solution.

From Energy Manager magazine, September 1997 issue.

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The Human Side of Energy Management:
Occupational Standards and Certification for
Energy Managers

Doug Tripp - Canadian Institute for Energy Training (CIET)

One of the barriers to the achievement of energy efficiency improvements in Canada, especially in the industrial, commercial and institutional sectors, is people—too few of them having the right skills and knowledge to efficiently operate facilities and to deal with energy use as a valuable, manageable resource.

Resolving this skill deficit is not without some interesting challenges, however. Energy management is a multi-disciplinary function; there is probably no technical occupation involved in facility operations, design and construction—engineers, architects, technicians, and trades—for which energy is not an area of knowledge. What is missing is a focus on energy management as an area of professional practice. The increasing pressure on global energy resources and the apparent need for more concerted action to improve overall energy efficiency in Canada, whether motivated by competitiveness concerns, or the need to reduce related greenhouse gas emissions, call for a new level of "professionalism" and effectiveness in the management of energy use.

Credentials make the world go ‘round, it seems. Financial planners have a credential, reflexologists have one, not to mention the traditional professional disciplines. And they all have standards of competence that guide preparatory education and training, as well as ensure performance quality. They also create job opportunities and enhance mobility for the credential holder. In spite of the importance of the energy efficiency issue, however, there is no credential and no competency definition or standard for energy managers in Canada.

The issue is not that there are no designations available that relate to facilities operation and maintenance. Canadians in the buildings sector can obtain an RPA (Registered Property Administrator), and Systems Maintenance Technician and Administrator (SMT, SMA) designations from BOMI. Colleges offer related job entry and continuing education programs, with their own recognized certification; two examples are the Diploma in Technology for Mechanical Engineering Technology - Energy Management along with several related specializations offered by St. Clair College, and facility operator and manager certificates based on the Building Environmental Systems (BES) Program of Seneca College. While contributing to the development of needed skills and knowledge, none of them really define energy management in marketplace terms.

Such is not the case in some other countries. In the United States, the Association of Energy Engineers (AEE) offers its own version of a professional designation, the CEM or Certified Energy Manager. The objectives of the CEM program cover all the bases: to raise the professional standards of those engaged in energy management, to improve the level of practice, to provide identification of suitably qualified individuals, and to award recognition of competence.

In the UK, an especially thorough examination of the energy management field has resulted in The Standards for Managing Energy, a description of the role of energy managers and how they contribute to energy efficiency in organizations. The Standards also serve as a template for training, professional development and certification. Most important, they also provide a foundation for an important area of professional practice within a complex of organizational management functions.

The UK Standards are built around three key principles of energy management:

  1. the purchase of energy supplies at the lowest price;

  2. the management of energy use at maximum efficiency;

  3. the utilization of the most appropriate technology.

Within these three short phrases lie considerable management depth and scope. The energy manager must manage the financial aspects of energy supply and consumption, including the selection of suppliers, contracting for supply, monitoring and controlling resource use. She must appraise energy management practices, identify and evaluate opportunities for improvement in energy efficiency, play a leadership role in the development and implementation of effective energy strategies in the organization, and promote energy efficiency as a corporate goal. He has a key role in the development of an "energy efficiency culture" in the organization, in the stimulation of employee actions that will contribute to the achievement of corporate objectives, and in the continuous improvement of energy efficiency.

The UK model views energy management as an amalgam of technical and management skills and knowledge, with an emphasis clearly on management. It is an interesting approach that has merit in the Canadian context. Perhaps it is time to launch an effort here to create a national consensus around a Canadian standard and credential—exploiting the experience of others, such as the UK, to our advantage—but, without delay, filling the gaps in the human side of energy management.

From Energy Manager magazine, November 1997 issue.



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The Human Side of Energy Management:
People—not Machines—Save (or Waste) Energy

Doug Tripp - Canadian Institute for Energy Training (CIET)

Are there any firms in Canada that wouldn’t seize an investment opportunity with a fourteen to one payback? The surprising answer is "yes", because of the lack of awareness that exists about the benefits of training employees on energy efficiency.

As you read this, Canada’s position on climate change will probably have become clear as an outcome of the international meetings in Kyoto. What has not become clear, however, is specifically how the nation will achieve whatever targets are set. In particular, there is no public commitment to a comprehensive human resources development strategy to facilitate and support other energy efficiency measures. And yet, there are compelling arguments in favour of an human resources focus. No matter what else is done to achieve energy efficiency improvements, training, done right, empowers people to maximize and sustain savings; conversely, inadequately trained employees can defeat efficiency measures and waste energy.

What individual firms do about energy efficiency training is a function of their corporate training practices in general, the priority they place on energy management, and the availability of suitable training services. In Canada, less than two-thirds of successful small and medium-sized firms engage in training of any kind, and less than half perform formal training (as distinguished from on-the-job training); of those that do train, the average annual dollar commitment is about $850 per employee (1992 data). As a subject of training, energy efficiency has a potential direct payback equivalent to many times that investment.

In the case of energy efficiency, a fairly broad definition of "training" applies since organizational needs usually are not limited to the specifics of technologies and operating practices. An organizational culture issue also exists, focused on the value attributed to energy as a resource to be effectively managed and conserved, and on the importance of people in the achievement of corporate goals.

Many organizations have achieved energy savings by running motivation and awareness programs; while these may not be "training programs" in the narrow definition, they include elements of information transfer and attitude change, both of which are outcomes of training in its broader interpretation. As well, awareness and good housekeeping have a payback in terms of energy savings. However, the simple measures are not always obvious, especially when the corporate culture has not designated energy as a truly manageable resource.

Numerous case studies, at home and abroad, demonstrate unequivocally the benefit that training yields. In the UK, for example, British Aerospace (Airbus) Ltd. reported that a training program costing about $16,000 yielded sustained energy savings of more than $230,000 per year after all other costs were deducted, a payback on the training investment of about fourteen to one, or three weeks.

In this program, middle managers participated in customized training in four parts: the first part developed background knowledge of the world energy scene and established the need to conserve energy; the second focused on the identification of savings opportunities in the plant; the third introduced "good housekeeping" techniques and "best practices"; and the fourth helped participants to develop specific action plans for their own departments. The company objectively monitored the impact of the program on energy savings, and found that past measures that were in danger of being eroded were consolidated, and subsequent direct actions taken by participants led to further savings and the creation of an "energy efficiency culture" in those departments.

Closer to home, training played an important role in mobilizing Bayview Management (Edmonton) Ltd. to achieve savings in a commercial office tower, estimated by the property manager, Michele Carr, to be about $100,000 per year. In this case, it was training of the property manager, integrated with retrofit measures and training of operating and maintenance personnel, that achieved the savings. Ms. Carr has said, "I have talked to property managers about operating costs and how to control or reduce them. A lot of managers don’t know how to get started or what to look for regarding energy efficiency. Energy is one of our highest annual costs, and therefore opportunities for savings are significant." Her training started with a modest $400 investment.

Attributing savings solely to training investments may be difficult to justify. However, cases like these two suggest that training, as an integral element of the overall energy management plan, mobilizes the organization, results in the identification of savings opportunities that would otherwise be missed, helps the firm to make the best use of external resources when needed, and sustains the impact of technological and operational changes by creating an energy efficiency culture in the organization. Investments in human capital development pay off, especially when tied to energy efficiency.

From Energy Manager magazine, January 1998 issue.



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The Human Side of Energy Management:
Energy Efficiency Training - Who Needs It?

Doug Tripp - Canadian Institute for Energy Training (CIET)

The question isn’t, "to train or not to train?" The question is whether to take charge of energy within the organization, or to turn it over to an external resource (or—a third option—to do nothing).

Sakto Corporation opted for an internal strategy for energy management at its Commerce Plaza facility in Ottawa—with spectacular results. Sean Murray, the Secretary-Treasurer of Sakto Corporation, told me that his company has taken a long-range viewpoint on its building operations. "Rather than looking at this building in terms of a twenty or twenty-five year commercial life," he said, "and we’re ten years old now—we think that it makes sense to look much further down the road. This is our flag ship." The result of this corporate philosophy is a building that has dramatically improved its energy efficiency and its occupancy and tenant satisfaction.

Sakto Corporation sees its business as tenant service, and that means taking steps to control costs to maintain competitive lease rates, while creating a building environment that exceeds tenant expectations. As an example, one major tenant at Commerce Plaza has attributed a 6% productivity gain to improvements in the indoor environment that have reduced illness-related lost time and have increased workplace efficiency. Commerce Plaza also received an award from Environment Canada for the exceptional quality of air in its underground garage (due to measures that cost more, but that were justifiable in view of savings elsewhere in the building).

In the period 1991 to 1997, Commerce Plaza had an occupancy rate that went from about 45% to over 99%, while the electricity bill—it’s an all-electric building—today holds at an estimated $72,000 per year below what was projected on the basis of 1991 efficiency. That’s $72,000 saved on a bill that runs about $300,000 per year. Just as important, tenant satisfaction with the facility has risen dramatically over that period.

How was this achieved? Starting with top-down commitment, Sakto Corporation elected to mandate its own operations staff to manage energy use. Organizations that choose to incorporate energy efficiency into their overall management structure, and to do so using internal resources, are inevitably confronted with three critical issues:

  • do the required management systems exist?

  • does the corporate culture put value on energy as a
    commodity to be managed?

  • do those employees whose responsibilities include the various aspects of energy management have the requisite skills and knowledge to acquit these responsibilities effectively?

Training is a strategy responding to all three questions, and the answers at Commerce Plaza are "yes, yes, and yes". This is not a terribly profound assertion; no one would dispute the need for training when new software systems or new technology is installed. But the extent of the need related to an issue as pervasive as energy efficiency is not always obvious.

Dan Lynch, the building engineer at Commerce Plaza, attributes their successes to four factors: three excellent contractors (Andy Stevenson of Digelair Service for his work on roof-top chiller units, Jim Limoges of VCI Controls for the building’s DDC system, and John Schultz and Brian Jardine of Boss Electric for electrical system modifications—all three being local firms), and training provided by CIET instructors Steve Dixon and Garth White. Dan’s training, and his transfer of knowledge and skills to his staff, resulted from the management attitude at Sakto that considers performance numbers objectively, and, when the business case is made, empowers staff to "go and do it."

Some of the initiatives that achieved what amounts to a 20% reduction in energy costs included:

  • sealing the upper two floors and penthouse decks to close what, in Dan’s terms, amounted to an opening the size of a nine foot garage door (a $60,000 job that paid back in about two years)

  • modifications to roof-top chillers to vent heat more effectively from condensor coils

  • rebuilding the PACE Perimeter Heat Control System to overcome problems with sensor function and communications

  • installing a VCI 9100 DDC base control system

  • installing T8s and electronic ballasts

  • water efficiency retrofits

  • and a host of other smaller measures.

The indoor environment was enhanced in the process with six to eight air changes per hour, a maintained 26% relative humidity, and constant 15% fresh air makeup. Tenants enjoy a 3o plus or minus override on temperature set point, with the immediate response provided by DDC control of the VAV boxes.

Dan Lynch says that 40% of the savings were achieved by applying that rare commodity, common sense. All retrofits were financed from savings. Some of the gains resulted from fine-tuning the building, dealing with those problems that are common in newly commissioned facilities. For example, it was necessary to reconnect solar sensors on east and west facing walls that were incorrectly interconnected, and to repair deterioration in the original deck sealing. But until someone began to assess in detail the energy performance of the building, in this case, Dan Lynch, these problems were simply not evident.

Who needs training? Sakto Corporation will claim that its own operations staff did. A building that doubled its occupancy, and reduced its energy consumption by 20% is compelling evidence that this is the way to go.

From Energy Manager magazine, March 1998 issue.



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The Human Side of Energy Management:
Achieving Industrial Energy Efficiency in Africa

Doug Tripp - Canadian Institute for Energy Training (CIET)

The industrialization of the developing world poses one of the more complex problems in the international effort to mitigate global warming. An exciting Canadian project in southern Africa is demonstrating what can be achieved in the development of energy efficient industries. The project is also revealing that many of the barriers to energy efficiency in Africa are the same as those in Canada.

The SADC (Southern African Development Community) Industrial Energy Management Program (SIEMP), sponsored by the Canadian International Development Agency (CIDA) and executed by AGRA ShawMont Limited of St. John’s Newfoundland, began in 1994 following a pilot project that ran from 1987 to 1991. The project team, comprised of Canadians Geoff Stiles, Dave Hood, Al McDougal, and Chuck Price, and Zimbabwean Charles Murove is working in Zimbabwe, Zambia (the Copper Belt region), Malawi, Mozambique, Botswana, Swaziland, Lesotho, Namibia, Angola and Tanzania.

The overall goal of the project is to improve industrial energy efficiency in the SADC Region by:

  • establishing a capability to deliver professional energy management training
  • supporting the development of local training providers
  • and disseminating information to industries and other energy end-users in order to demonstrate the potential benefits of better energy management and establish a market for training services.

One criterion for the sustainability of project outcomes is the creation of a commercially viable training infrastructure comprised of institutions and private sector consultants.

The implementation strategy to date has included the development and pilot testing of a "Core Training Program (CTP)", the delivery of train-the-trainer programs for institutional participants and consultants, and the creation of information resources such as a project newsletter.

SIEMP has some elements that mirror the CEMET Program implemented by Natural Resources Canada in the early 1990’s. This program, consisting of five technical modules, was placed in the hands of a community college network for delivery to a primarily industrial clientele, unfortunately with only limited success. Some important lessons that are relevant to the challenges being encountered in Africa were learned as a result.

The first lesson is that there was little success in selling system-specific, technical training to an audience that had not yet embraced the importance of energy efficiency. It became apparent that a precursor to in-depth technical training is needed to adjust attitudes towards energy efficiency, build foundational knowledge of energy cost and efficiency issues, and provide assessment tools to identify and quantify savings opportunities.

The second is that training providers must be able to draw on practical experience in order to respond effectively to the needs of training participants; an academic treatment of the subject simply doesn’t suffice. The third is that the commercial viability of training is essential if there is to be a long-term impact. And a fourth is that training is a critical component of a sustainable energy management strategy.

Another Canadian organization, CIET, has recently joined the project to support some of the next steps. The CIET group is working with the team in Harare to help clarify some of the barriers that need to be overcome, to explore and develop intervention strategies, and to provide additional training resources.

Our view is that, among the barriers to energy efficiency
in the SADC Region, are:

  • the fact that energy is cheap
  • a general lack of awareness of energy efficiency opportunities
  • a lack of related technical skills and knowledge
  • competing priorities in organizations
  • corporate values that do not place a high priority on energy efficiency
  • limited training delivery capability of institutional and private providers
  • the absence of credible certification of energy management practitioners.

Forces that are driving energy efficiency are cost-competitiveness pressures, and the threat of escalating energy costs. Both the obstacles and the driving forces are as important in Canada as they are in Africa.

At least three critical needs have emerged in the SADC project. There is clearly a need for preparatory training that changes attitudes and values, that elevates energy efficiency as a corporate priority, that links energy management measures to other organizational issues, that builds the skills and knowledge to understand technological considerations, that creates an internal capability to assess energy efficiency potential, and that mobilizes the organization towards a long-term energy management strategy. Such training might be regarded as a precursor to more in-depth technical training, such as the CTP in the SADC project.

There is also a need for a "management tool kit" for energy managers who have completed the CTP, that answers the question, "Now what do I do?" This is training that focuses on the internal barriers that exist in companies and provides strategies to overcome them—presenting the business case for energy efficiency measures, communicating throughout the organization, planning, monitoring, targeting and reporting, and so on.

An overarching need is a professional qualification for energy mangers.

Anyone who has stayed in touch with the energy management scene in Canada will recognize that these are critical issues here as well. One hopes that they can be addressed as effectively at home as in Africa.

From Energy Manager magazine, May 1998 issue.

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The Human Side of Energy Management:
Where Do We Go From Here?

Doug Tripp - Canadian Institute for Energy Training (CIET)

A recent article in Atlantic Monthly notes that the general insurance industry has become increasingly alarmed about the rapid growth in claims for loss and damage resulting from violent weather incidents. The numbers cited are a ten percent increase in total winter precipitation, and a twenty percent increase in "extreme precipitation events"—read violent storms—in the United States since 1900, enormous numbers when we are talking about climate change.

The Insurance Council of Canada recently established the Institute for Catastrophic Loss Reduction to help the insurance industry mitigate losses due to catastrophic incidents such as earthquakes and severe weather phenomena. The Institute is a serious attempt on the part of the industry to seek protective strategies for, and address the causes of natural disasters. In the case of climate change, in spite of the debate around the science, there is a widespread view that severe weather events are likely to become more commonplace before there is a reversal in the trend, and that something needs to be done about it.

In the UK, a recent survey of over 100 organizations revealed a number of facts about the progress achieved there on energy efficiency:

  • energy information is poorly integrated into organizational management systems

  • energy management tends to be marginalized as a technical specialty

  • only a minority of respondents believed that they had energy use under control in their facilities

  • less than 10% or respondents indicated that their energy information systems were working smoothly.

The importance of these issues was not exactly news, however. A 1983 report published by the UK Department of Energy, Energy Conservation in Industry, identified the low status of energy management, and the absence or inadequacy of energy policy, energy management structures, and energy reporting systems as key barriers to energy efficiency improvement.

Meanwhile, we read that in Canada as much as two years of analysis and planning may be required before a specific action plan for the achievement of the greenhouse gas emission reduction targets agreed to at Kyoto is implemented.

There is something "fishy" going on: as we wait for the science of climate change to be unequivocally validated, for governments to determine what is economically and politically feasible, or for the impact of competition on energy costs and services to become evident, we risk repeating the errors of the Atlantic fisheries where the early signs of threats to the cod stocks were not treated seriously until it was too late.

If the findings of the UK study come even close to representing reality in Canada, and if the uncertainties around government intervention and other market forces (notably, utility deregulation) continue to paralyze many energy consumers, the insurance industry in this country may have lots more to concern itself with as climate change continues to spawn unpredictable and violent weather phenomena, as a large segment of the scientific community suggests is likely.

What is not being adequately addressed, according to the UK survey, is the "human side" of energy management. To draw one parallel from the survey, energy management as a technical specialty in Canada is also being marginalized by the absence of a standard and a credential for energy managers.

Effective energy management is just one manifestation of good management, but there needs to be knowledgeable leadership in this, as in any other, area of management. Setting aside its technological aspects, the elements of sound energy management are no more or less than the means of managing any other organizational priority:

  • setting policy as a public expression of the organization’s commitment to energy conservation and environment protection, and as a framework of corporate practice

  • creating an organizational structure to facilitate energy management activities

  • motivating people in the organization to treat energy management seriously

  • implementing information systems to fuel monitoring and control functions

  • ensuring that needed resources—people with the appropriate knowledge, skills and attitudes—are in place

  • and creating a level playing field with other organizational priorities for investment decisions.

There is nothing in this list that cannot be done now, and that isn’t being done in other aspects of organizational activity. What is needed, and what is too often lacking, is a commitment to the human side of energy management that incorporates energy efficiency into the corporate value structure and management systems with the same rigour afforded to other organizational priorities. In many organizations, the needed catalyst for this effort is the "energy manager".

Where do we go from here? One answer to the question that doesn’t have a "down side" is the elevation of energy management as a professional function, based in performance standards, relevant training, and a professional credential. Given support from key energy efficiency stakeholders and the energy consuming marketplace, this is an objective easily met.

The challenge is to engage these stakeholders in the process, based on their own concerns—as in the case of the insurance industry—about the cost of inaction.

From Energy Manager magazine, July 1998 issue.

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The Human Side of Energy Management:
Defining Energy Management:
The Challenge and the Opportunity

Doug Tripp - Canadian Institute for Energy Training (CIET)

A manager in one of Canada’s largest property development corporations recently told me, "One of our regional facility managers is responsible for about fifteen properties with a total annual energy bill of about $750,000. I think that’s twice what it could be. The problem is, energy efficiency is only one of his operational priorities, and, frankly, he doesn’t have the knowledge and skills to achieve that level of energy reduction."

This is not an unusual story in the buildings sector. Building managers deal with a myriad of issues, and energy efficiency usually occupies no more than a corner of their desks. As the story above illustrates, however, there is a lot at stake in bringing more focus to the energy management function.

The stakes may get higher, too. It is a well-known fact that Canada is falling short of its greenhouse gas emission stabilization targets, and that CO2 related to energy consumption is a large part of the problem. Voluntary compliance strategies are being widely criticized, especially by environmentalists, as being ineffective, and one is led to ask how much longer they can be sustained.

Complicating the situation further is the increasingly volatile energy utility industry, where deregulation and competition are becoming realities. The implication is that property owners and operators are going to need to know a great deal more than they do today about how they purchase and use energy, if they are to take advantage of cost reduction opportunities in the new energy market.

Even now the potential for savings on the energy bill is huge. Reductions of 10% or more are not unusual simply from treating energy as a manageable cost and becoming aware of billing and consumption patterns. Overall savings of more than 20% with reasonable rates of return on capital costs are common. Energy efficiency measures also help to meet building renewal and upgrading priorities to improve the indoor environment.

The solution to my friend’s dilemma seems to be fairly simple: let’s just train those facility managers in the principles of energy management and start to capture some of the available savings. The reality is, however, that in the absence of personal career enhancements accruing from the training, it’s difficult to motivate those employees to get serious about expanding their knowledge and skills in energy management. The crux of this problem is that, in Canada, there is no one acceptable definition of what energy management is, and what energy managers need to know. It follows, as well, that there is no widely recognized professional credential for energy managers that will contribute to their career advancement.

This is not the case in some other industrialized countries. The UK, for example, has an occupational standard for energy managers that not only defines the profession, but provides a knowledge and skill profile on which training can be based. As a result, there is a pool of qualified energy managers available in the marketplace, and there are career opportunities for people with the required skill set. The Institute of Energy brings professional credibility to the sector.

Defining Energy Management

Defining energy management as a professional practice is not a simple task. While it may seem obvious, the aim of energy management is to achieve organizational objectives at minimum energy consumption and cost, but it is worth emphasizing that the operative word is "management".

Three key principles of energy management are:

  • purchase energy at the lowest available price

  • manage energy consumption at peak efficiency

  • and utilize the most appropriate technology .

Within these principles lies a complex matrix of knowledge and skill requirements. For example, managing energy consumption at peak efficiency can involve activities ranging from auditing, to specifying retrofit measures and analyzing the resulting return on investment, to monitoring and targeting, to conducting employee and tenant awareness educational programs, and more. The energy manager typically will have responsibility for advising senior management on energy reduction strategies, for gaining commitment throughout the organization, for managing the implementation of measures, and for dealing effectively with contractors and energy suppliers.

The skill set includes technical knowledge of contemporary building energy systems and energy rate structures, analytical techniques for assessing energy use, financial management methods for evaluating energy efficiency investments, and "social marketing" skills for building organizational commitment. For an individual employed in the facility management field, it would probably take up to a year of study to develop the necessary competencies.

Getting Serious about Energy Waste Reduction

What is needed if Canadian building owners are going to get serious about energy waste reduction is a human resources strategy comprised of standards, training, and credentials. We don’t have the standards nor the credentials, and, while training is available, in the absence of a sound definition of the occupation, it is analogous to driving to an unknown destination without a map.

Relevant training does exist in Canada, and there is a variety of occupational qualifications available. The BOMI Institute, ASHRAE, the Canadian Institute for Energy Training (CIET), and others offer courses, workshops, seminars and conferences related to energy management. A consortium of community colleges, led by Seneca College in Ontario and the Southern Alberta Institute of Technology, is creating a building operator and supervisor accreditation program based on existing building operator and power engineering courses. Undoubtedly, all of these programs are based in a definition of need, but each definition is different.

A Challenge . . . An Opportunity

Building owners and operators are already confronted with the challenge to reduce energy waste, whether out of concern for the environment or the bottom line. There is an opportunity to contribute to the achievement of those savings by creating a well-defined, credible, and relevant energy management profession based on standards, training mapped on the standards, and professional credentials. The buildings sector can be an important participant in any national effort towards a human resources based energy efficiency strategy.

 

From Canadian Property Management, October 1997

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The Human Side of Energy Management:
A Strategic Management Approach to
Energy Efficiency

Doug Tripp - Canadian Institute for Energy Training (CIET)
Stephen Dixon - TdS Dixon Inc.

Saving money in building operations is hardly a revolutionary idea for owners and managers. Even finding savings in energy costs isn’t new to most. So what more is there to say about this issue?

Quite a lot, actually. For many owners and managers, there is an opportunity to capture even higher savings on the energy bill by managing energy with the same rigour as other cost centres. The key principle is the integration of energy management into the overall facility management structure; the same questions that one asks in regard to other management priorities need to be answered for energy management:

  • Energy policy: is there a formal commitment to energy management in your organization?

  • Organizational structure: is energy management integrated into your organization's formal and informal management structure; for example, are energy consuming units identified as energy accountability centres?

  • Information systems: is there an appropriate and effective information system addressing energy utilization?

  • Communications: is there a program to promote and publicize energy management and your achievements? Is energy efficiency a corporate value--part of the corporate culture?

  • Investment: is there a level playing field in regard to the assessment of investments in energy management measures and other organizational priorities?

  • Human resources: do the skills and knowledge pertaining to energy management—the methods of analysis as well as the technological aspects—exist in your organization?

These are questions that are familiar to managers, if only in reference to other operational issues. The point is that treating energy as a cost to be managed—not just paid—as a part of the corporate management structure can yield significant, sustainable savings. Typically 20% or more of energy costs can be cut, and in today’s competitive marketplace, that is a saving that few building owners can afford to pass up.

There is no one approach to energy management in organizations; the corporate culture and existing management systems are obvious determinants of the most effective methods. Where the responsibility for energy management is placed—as a separate function of an "energy manager" or incorporated into the job description of building managers, maintenance supervisors, etc.—is one question. How energy management activity is funded is another.

However, there are some common themes in organizations that successfully manage energy, and it is useful to think of these themes as three overlapping phases of energy management:

Phase 1: gaining control over energy consumption
Phase 2: investing in energy saving measures
Phase 3: maintaining control over consumption.

Phase 1 . . . The first aim of energy management should be to gain control of consumption and costs by assessing current use, and by taking steps to incorporate energy efficiency into the corporate culture. This often involves:

  • Identifying, and quantifying, your organization's major users of energy

  • Reviewing energy purchasing strategies—the fuel and billing rate structure choices—to make sure that the most appropriate energy sources are being exploited and that they are being bought at the right prices.

  • Assessing operating practices—your heating plant, lighting and ventilation control strategies to ensure that existing plant and equipment is being operated at maximum efficiency.

  • Motivating and training practices—energy awareness-raising campaigns and training programs for all individuals and groups whose actions can affect consumption

Phase 2 . . . Once the operation of existing plant and buildings has been brought under control, and obvious excess consumption has been curbed, you can turn your attention to investing in energy saving measures which cost money. This phase involves a review of the opportunities for investing in increased energy efficiency and ranking these in terms of the capital expenditure required and their predicted rates of return. It also involves the application of corporate investment policies and practices to energy management investments—creating a "level playing field" in terms of other investment priorities.

Phase 3 . . . As soon as Phases 1 and 2 are under way you will need to act to maintain control and protect your investment. This means establishing and operating an effective energy management information system which is often referred to as a monitoring and targeting (M&T) system.

The essence of energy monitoring is the systematic collection of energy use data, at the level of a department, a floor in a commercial tower, an individual tenant, or what ever "energy accountability centre" makes sense in terms of the organizational structure. It is also the analysis of that data correlated to energy use determinants such as building occupancy rate, weather conditions (heating and cooling degree days), and so on. There are statistical methods that are tremendously powerful in revealing energy reduction opportunities. Even a manual application of these methods can achieve a considerable return for the effort taken, and, depending on the complexity of the task and the size of the organization, computer-based M&T systems may be helpful.

Targeting, as the name implies, is the determination of energy reduction targets that account for the impact of technical and non-technical measures to be taken, and that may reflect best practice in similar facilities or other policy considerations. In energy efficiency, this is usually a moving target, in the spirit of continuous improvement strategies that apply to other organizational matters.

It sounds simple; certainly, this approach to energy management is no more or less complex than the management practices applied to other issues. And there is a payback, as these examples illustrate.

Lou Smith is Chief Engineer at the 249,000 square foot Maritime Life Business Park in Halifax. Lou got turned on to energy management as a result of his attendance at a CIET Electrical Energy Management Opportunities Workshop a couple of years ago in Halifax, and was able to obtain support from an environmentally sensitive senior management for the energy management initiatives that he believed to offer potential. One of the keys to his success was his effort to "spread the word", part of the "gaining control" phase, by encouraging the company’s accountant to attend an Opportunities Workshop, and by engaging the facility operators and maintainers in the process—soliciting their input and motivating them towards the energy efficiency goal.

Another key to success was the supportive role played by Nova Scotia Power (NSPI). Lou enthusiastically acknowledges the help he has received from Mark McGrath, Property Management Account Executive at NSPI. NSPI offers an "Integrated Approach to Energy Management" to key customers, based in the philosophy "you cannot manage what you cannot measure". Lou was able to get an historical billing analysis, a monthly power demand profile, and a preliminary assessment on energy use in the facility; this is phase one stuff—essential for the assessment of current energy use as well as, eventually, the ongoing maintenance of energy savings. In addition, customers like Maritime Life have access to NSPI’s Energy Information Binders and Opportunities Workshop to meet information and staff training needs. Mark McGrath says that NSPI is "armed, ready, willing and able to help our customers fight the operation cost battle", and Maritime Life is a good case in point.

Having already captured the BOMA "Building of the Year" award for 1997, the bottom line for Lou Smith is that Maritime Life is about to take steps that will increase savings beyond the six-digit level already achieved.

This isn’t "rocket science", just solid management practice that integrates energy efficiency into the overall management structure to achieve significant operating cost reductions.

From Canadian Property Management, December 1998

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TEMOL
Training in Energy Management Through Open Learning) A Broad-Scale, Independent Study Program Prepares Energy Managers with a 16-Step "Hands-On" Tutorial

Doug Tripp, P.Eng..
Executive Director
CIET (The Canadian Institute for Energy Training)

Editor's Note: There are extensive requirements for today's energy manager, beyond the technical. (For an actual listing, refer to the brief note following Mr. Tripp's report.)

To help prepare energy managers for this new dimension, British energy management practitioners have worked with other groups to develop the project-oriented TEMOL Study Program. Several unique features-for instance, each student is assigned a "tutor"-make TEMOL a valuable way to expand one's knowledge. Efforts are underway to make the program available in the U.S. For further information, see the closing footnote.

There is a school of thought, one that I subscribe to, that the effectiveness and sustainability of an energy management strategy depends in large measure on the attention given to the related knowledge and skills of people in the organization. Part of this view is that energy efficiency needs to be incorporated into the organization's value structure-the corporate culture-if the same care and accountability afforded to other corporate priorities is to be given to the use of energy. Another part of it is that there is a critical role to be played by energy managers, or line managers who carry responsibility for energy use, in industrial, commercial and institutional organizations, a role that is both technical and management in its scope.

Of course, the development of the necessary values and attitudes, skills and knowledge, is predicated to some extent on the availability of relevant, effective, and accessible training.

The various components of the organization-the CEO, the office occupant, the line worker, the custodian, and so on-all have an impact on energy use, and all have particular needs for "attitude adjustment," knowledge and skills. Creating an energy-valuing culture is not an easy nor short-term task.

WHAT DOES AN ENERGY MANAGER DO?

However, many organizations that have successfully managed energy have found that a key role can be played by an "energy manager." The name on the organization chart may vary, but there are some interesting answers to the question, "What does an energy manager do?" One such view is found in the UK. The "Standard for Managing Energy," part of the British National Vocational Qualification (NVQ) system, defines energy management as an area of professional activity that includes the following key roles:

  • Identify the scope for improvement in the way the organization manages energy

  • Provide advice on the development and implementation of energy policies

  • Promote energy efficiency

  • Monitor and evaluate energy efficiency

  • Identify improvements to energy efficiency

  • Provide advice and support for the development of energy efficient practices

  • Provide advice and support for the development and implementation of systems to measure energy usage

When these roles are broken down to a finer level of detail, and when the skills and knowledge that are required for each are examined, it becomes apparent that a great deal of knowledge is required about:

  • the technology of energy efficiency, that is, the equipment that contributes to or detracts from the achievement of energy efficiency goals

  • efficient practice in terms of operations and maintenance

  • management information systems for the monitoring of energy performance, and the analysis of management information for decision-making

  • the development of an energy efficiency culture in the organization

  • management issues such as policy development, internal communications, human resources development in support of energy efficiency, financial analysis of proposed efficiency measures

  • how to provide organizational leadership towards energy efficiency improvement.

It is also apparent that the energy manager is truly a "manager," required to act strategically, to communicate, to influence others, and to find and critically assess relevant information. The context in which he or she works involves a number of key organizational aspects that bear on the capacity for energy efficiency improvement:

  • Energy policy

  • Organizational structure in terms of energy management functions

  • Skills and knowledge throughout the organization to sustain energy management

  • Information systems for decision-making on energy reduction targets and for performance monitoring

  • Communications within the organization to motivate and sustain commitment

  • Investment practices for energy efficiency measures.

The point that should be apparent is that, while motors and furnaces consume energy, there are many critical issues for which the focus is people, not machines.

TEMOL-TRAINING IN ENERGY MANAGEMENT THROUGH OPEN LEARNING

Where, then, can an aspiring energy manager obtain the knowledge and skills required for this sometimes daunting role? One answer, again, comes to North America from the UK via Canada. The TEMOL (Training in Energy Management through Open Learning) Program, as the name implies, is an independent study program providing a comprehensive treatment of the energy manager's role, mapped specifically on the Standard described above.

TEMOL was developed in the UK by a consortium involving energy management practitioners, The Institute of Energy, the University of the West of England, the Department of Environment and the two energy efficiency studies units, ETSU and BRECSU. The Canadian Institute for Energy Training (CIET) has contextualized and expanded the program to reflect North American circumstances and needs, and has recently launched delivery in Canada.

While very conventional in its structure—16 paper-based modules—TEMOL has a number of interesting features that contribute to its appeal and effectiveness. The first is that tutor support is provided to each candidate. The approach employed in the UK and adopted in North America is to assign an energy management professional as personal tutor to the learner for assistance on an as-needed basis, probably electronically via telephone, fax or email. Since participants are likely to come from one of the industrial, commercial or institutional sectors, the learner-tutor relationship is most beneficial when the tutor has knowledge of the environment in which the student works; this is the main criterion for matching tutors with learners.

The second feature is that the curriculum is project-oriented. Guided learning activities are incorporated into the text and these typically involve the learner in tasks in his or her own workplace. For example, if an inventory of energy-consuming loads is to be created and documented, the learner's facility is the "laboratory" for the assignment. One of the goals is to use the study program to generate useful, and hopefully, rewarding information that often results in the tuition costs being saved through the learner's impact on energy efficiency in the organization.

The third feature is the integration of a multi-faceted evaluation structure into the program. This is training designed for adult learners, and it relies heavily on self-assessment, questions and problems that the learner uses to assess his or her own understanding of key principles. There is a need for thorough evaluation of learning as well, and this is achieved with seven written examinations that are graded by the tutor. Finally, a terminal consolidation project that provides an opportunity for the learner to integrate the scope of knowledge and skills developed and to apply them to real needs in the workplace is evaluated on a pass/fail basis. In the UK, TEMOL is one of the means of developing the knowledge and skills required for a Certificate of Qualification under the NVQ system, and, therefore, evaluation of learning is doubly important. In Canada, successful completion of TEMOL results in the award of 36 continuing education units (CEUS) through the Engineering Institute of Canada; arrangements have yet to be made for this in the United States, but the program is clearly regarded as a substantial undertaking.

The fourth feature is the use of a comprehensive library of resource literature, much of it from the UK Best Practices (BP) Program. The references provided and cited in the modules include case studies, good practice guides, technical bulletins, innovation profiles, and management guides. The hallmarks of these ETSU and BRECSU publications are the very high quality of the technical writing, their practicality, and the physical presentation of the material. The fifty or so titles included in the TEMOL program provide an introduction to a collection of 700 or more BP publications. Other references are from Canadian and American sources.

Where TEMOL especially shines is in its reflection of the definition of energy management discussed earlier. In the modules listed below, one finds a comprehensive treatment of the technological aspects, albeit in a generic sense, the environmental impact issue, and the management functions.

 

Module Description
Part A: Technical Part A consists of seven modules that provide a basic technical understanding of energy utilization, including electrical and fuel based systems.
1 An Introduction to Energy Technology This is an introduction to fuel types, combustion, heat transfer and fluid flow. It includes instruction on fuels in general, fossil fuels, principles of heat transfer and fluid flow, key elements of combustion; secondary energy systems including electricity generation and distribution, heat pumps, compressed air and renewable energy
2 Principles of Fuel Combustion The concepts of stoichiometric and real combustion conditions, flame temperature, and efficiency in combustion systems are addressed in this module.
3 Combustion Equipment and Practice The technology of combustion, starting with a simple gas burner, to actual combustion systems used for oil, gas and coal, is the subject of this module
4 Electrical Energy Basics This module develops a comprehensive understanding of electrical energy from point of purchase to end use. The operating parameters of generic electrical systems, including metering, lighting, motors and fans are considered along with basic definition of important electrical terms such as demand, energy, power factor and efficiency. It provides the key elements of an assessment and opportunities identification process, along with CALC and LOAD software tools to assist with the assessment of IC&I facilities.
5 Heat Transfer Fundamentals Following from the introduction in module 1, this module is a rigorous treatment of thermal energy, heat transfer, heat quality, and related thermodynamic principles. Temperature scales, internal energy, enthalpy, phase change are among the topics for which a working knowledge is developed
6 Mechanisms of Heat Flow Conduction, convection and radiation as mechanisms of heat flow are introduced and examined in the context of energy management applications. The properties of materials encountered in facilities, such as thermal conductivity and resistivity, and the characteristics of thermal systems, such as convective resistance, laminar and turbulent flow, evaporation and condensation, are examined.
7 Instrumentation If you can’t measure it, you can’t manage it. This module examines energy instrumentation from simple hand-held devices to building energy management systems.
Part B: The Environmental Impact of Energy Part B focuses on the relationship between energy production and consumption, and the environment.
8 Energy and the Environment Pollution control related to energy systems, in the context of economic factors and legislation is addressed in this module. The dynamics of air pollution resulting from emissions from fuel combustion, such as acid rain and particulates, and global climate issues arising from greenhouse gas emissions are examined.
9 Water Efficiency This module makes the connection between water conservation measures and energy efficiency. It provides a template for the assessment of facility water use, and the identification and evaluation of water efficiency measures. AQUAUDIT software is included as a tool for the development of water use inventories for large facilities.
Part C: Energy Management In Part C, the emphasis is on the "management" side of the issue. The skills and knowledge required by an energy manager, and the tasks that need to be carried out, in order to achieve energy efficiency improvements, are developed.
10 An Overview of General Energy Utilization The purpose of this module is to link the technical aspects to the management functions. A description of the technical role of the energy manager is developed, including checklists for executing that role in regard to the management of people, equipment and services. Specific attention is given to boilers, heat exchangers, furnaces, space heating, insulation, refrigeration, air conditioning and lighting, along with the interdependencies of these systems.
11 Management Techniques for the Energy Manager This module recognizes the fact that it is people in organizations that save, or waste, energy, and that any successful energy management strategy includes efforts to create awareness, "buy-in", and accountability. The importance of information systems and internal communications is emphasized
12 Developing the Financial Case The collection of data, preparation of cash flow statements, and the analysis of these are the fundamental financial management functions addressed in this module. Simple payback, discounting, internal rate of return, and other methods of analysis are introduced. As well, emphasis is given to the analysis of risk and sensitivity.
13 Energy Auditing The process of energy auditing is defined, and a rationale for conducting an audit is developed. The key elements of an auditing process are examined and various checklists provided.
14 Energy Costs, Rate Structures and Scheduling This module examines typical rate structures for electricity and gas. The important features of such structures are examined in order to enable the energy manager to interpret the tariffs that actually apply to his or her facility. Demand, consumption, and power factor are among the terms revisited in this study. Load profiles and scheduling measures that impact energy costs are examined.
15 Energy Monitoring and Targeting Monitoring and targeting is a proven approach to energy management planning and implementation. The methods of information gathering, the type and level of information required, and the analysis and reporting of information are examined. Degree-days, regression analysis, and other statistical approaches are examined. A quantitative method of target setting for energy reduction is developed.
Part D: Energy Efficiency Part D provides a context of "efficiency" within which to consider the foregoing modules. This single element is designed to be studied at any point in the program.
16 Energy Efficiency This module develops an historical perspective on energy efficiency, provides definition, and describes key related issues such as cost effectiveness, and appropriate energy sources. An overview of the responsibilities of key individuals and functions within organizations, to set and achieve energy efficiency goals, is developed.

 

TEMOL is career education. Being open learning, access to it is not a numbers nor a geographical problem, as is the case in group programs. It involves a commitment of, typically, about a year of part-time study. Certainly the intention in the UK, and CIET's intention in North America, is to offer the program as a highly relevant, practical preparation for energy managers. It is obviously not the whole story; codes and standards, current technology, utility practices in a deregulated environment, are among the issues that are deeper and broader than the program can address. However, the foundation is laid for the energy manager to know how to deal with these and similar matters.

The program is also at a level that presumes at least some postsecondary education such as technician or technologist programs, engineering, or qualified trades that relate to facility operation, or equivalent work experience. Participants need not be engineers to manage well in the program, but engineers do not find their intelligence insulted. Indeed, individuals from non-technical disciplines whose experience involves facility management also find the program to be helpful and appropriate to their needs.

Whether energy management is the sole function, or part of the accountability of a line manager, TEMOL provides the tools needed to carry out this function effectively. There are other key elements to an human resources focus in energy management, but TEMOL goes a long way towards creating the prime mover in the organization, the energy manager.

Job Description for An Advanced Energy Manager

Doug Tripp's article describes "TEMOL," a sophisticated training program for energy managers. What responsibilities will face them? A recent job opportunity, posted on the Internet, describes how extensive these responsibilities can be today. In this case, the energy manager's work required the ability to manage a $ 15 million annual energy budget covering 100 buildings, numerous divisions, and a competitive environment. Here is the posted job description:

MANAGER (ENERGY CONSERVATION)

Department:

Facilities Operations

Salary:

Commensurate with experience

Description:

Reporting to the director of physical plant, the incumbent:
  • has overall responsibility for the development and management of university's energy use and conservation program; develops and implements both short and long-term programs;

  • acts as the liaison with the university community in areas of energy use and conservation;

  • provides information on energy consumption, policies, and conservation programs;

  • works with departmental/school representatives, facilities operation and engineering personnel to develop conservation programs;

  • collaborates with utilities systems personnel to optimize building operations; develops and monitors the utilities budget;

  • identifies, reports and follows up on problems and reasons for energy-consumption changes;

  • manages energy consultants engaged to assist the university in developing programs;

  • reviews energy consumption reports for billing purposes;

  • develops funding strategies for implementing energy conservation programs;

  • coordinates grant and loan applications;

  • works closely with various operations personnel to identify and make recommendations for troubleshooting problems related to energy consumption;

  • develops and maintains energy standards for buildings and ensures that new projects meet those standards; initiates procedural clarifications, modifications and improvements;

  • communicates both verbally and in writing with the university community on a regular basis;

  • performs other related duties as assigned.

Qualifications: Bachelor's degree or equivalent experience required. Five years' experience in energy conservation or related field necessary. Familiarity with building, mechanical and electrical systems required. Excellent communication and interpersonal skills necessary. Report writing abilities required.

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