Energy Audit And Energy Asset Management Assignment Sample

Introduction of Energy Audit And Energy Asset Management Assignment

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This report has been prepared by the consultancy named McKinsey and Company to show the importance of the ISO50001-Energy Management system. This report has been prepared by the consultancy that they were going to assist the mining company named Acacia Mining plc. As in recent times, the non-renewable energy sources were being lowered. So, as per the government regulations, every energy user company from the commercial background has to reduce the consumption of the energy. By the implementation of the international standard of ISO50001 the government aims to improve energy performance and reduce energy consumption, also including efficiency and use.

Undertake a gap analysis of the current system

 ISO 50001

(Source: Hilorme et al. 2019)

The consultancy of McKinsey and Company is going to assist the mining plant named Acacia Mining Plc to implement the new energy management system. In order to implement the ISO50001 standard, this mining company needs to understand the gaps with the current system that their company is following in order to complete all their work. In their current system, several gaps have been noticed within the company from the field of their organisational structure, equipment specification, working hours, operation, and maintenance and work culture. These gaps have been identified by the consultancy in order to understand and repair the system that will help to reduce energy consumption. In the company of Acacia Mining plc, as their main work is related to mining, they were using several types of equipment that consume a great amount of energy (Hansen and Brown, 2020). There are some huge and old models of tools that consume a lot of energy. In fact, these companies use some old-school processes that also consume a huge amount of energy.

As this is one of the biggest mining plants in the UK, explosions are a must in these plants, which takes a lot of energy to explode. This company needs to apply some improvisation strategy in it's organisational structure and culture. As this company has designed a structure to make their work and goal easy, which sets their unit or hierarchy in such a way that some work processes need to get done by a lengthy process or some work processes need to get done more than one time. Their work culture even contains the same issues. Their working hours even increase the issue of consuming more energy. As these machines are old model equipment, so the more these machines will work in a continuous manner the more they consume energy. In any mining company, their operational work and maintenance even consume a lot of energy. Therefore, the implementation of this new standard is mandatory in this mining company.

Development of an Energy Management System

 EMS

(Source: Hansen and Brown, 2020)

Any Energy Management System mainly provides some computation ability and fundamental information in order to analyse the real-time network. This whole process has been done in order to strategies in order to control the system energy flow (Hilorme et al. 2019). This energy Management System has many benefits and can help in developing the company and reducing energy consumption. A good and better energy management system can help in many ways, such as reducing the costs, the improvement of staff wellbeing, improving facility performance and the increased ROI. Cost reduction is the biggest plus point that the company can achieve by implementing a good energy management system. An Energy management system allows the company to reduce the utility along with energy cost by managing the cooling, heating, watering and lighting powers. The energy management system works by storing an amount of energy within their central machinery system and then putting them into the places where they need to be put.

This also allows the system operator to access the building's historical data. Staff well-being is another benefit of this EMS as these systems reduce a specific amount of workload from the workers. These EMS also help in improving facility performances by their machinery inputs and working system. This also helps in increasing the return of investments. In order to create a good energy management system the mining company of Acacia Mining plc, should keep in mind these four key features (Johansson and Thollander, 2018). The more the energy system improvises these factors the more valuable the system becomes. In order to develop an energy management system, these factors need to be strengthened by core.

Identify the opportunities

Every energy management system has a lot of beneficial sides. Among the long list of benefits, the reduction of energy consumption and decreased carbon footprint are the main benefits. Therefore implementing a good energy management system is the best way to reduce the consumption of energy and carbon footprint. In recent times, by conducting various researches some ways have been identified that can be proven opportunistic for any company. The first important way is to use every piece of equipment efficiently with proper guidance and time. The company needs to follow up regularly on the working process and if the equipment were on without any work. Regular serving and maintenance can also be proven helpful in reducing the carbon footprint and energy uses. In recent times greenhouse gas emissions have been increased in many ways. The increasing level of greenhouse gas has a huge negative impact on the topic of air pollution. Along with other pollutants, carbon is emitted from this mining plant. The emission of these pollutants needs to be controlled in some ways. Controlled use of thoseMachines that emitted greenhouse gas at the mining places or the offices also affects the environment. As this mining plant is one of the biggest meaning plants of the United Kingdom, so there are a lot of official tasks that need to be done. In the whole workplace of this mining plant, there are a lot of machines including air conditioners, refrigerators for laboratory work and other machines, which need to be controlled (Wang, 2019). With the controlled uses of machines and tools equipment, the opportunity of lowering the energy uses, reducing the carbon footprint has and some other opportunities can be achieved.

Indicating identifying areas of significant SEU

Energy baseline is a system that allows the company to compare energy performance to the before and after a change that has been made to your system and according to the records, the improvements will be judged. The records that have to be taken before the process of change have to be made by capturing the record of the energy use of the operating systems. After the implication of the changed energy system that has to be made to the company or the company systems, another record has been captured. After both the records have been taken the main two were compared. After the comparison has been done the main application has been judged by the performance of the new implications.

By the indication of the energy baseline, some areas have been identified that have to be reformed and repaired. These areas or gaps that have been identified are matters of improvisation. There are some issues in the mining company of Acacia Mining Plc that have been identified by using the tool of energy baseline (Fernando et al. 2018). The most important thing that needs to be repaired is the use of the proper new equipment. Some equipment is a matter of modification. Their office culture and organisational structure also need to get modified. Their working hours and their work process is also a matter that they should be working more efficiently.

Indicating the requirement

Energy policy is a guide for any company that they need to follow in order to maintain the energy uses. These policies include the approximate amount of energy any company has to maintain. These policies also guide the conversion and use. These energy policies are also used to address issues that the company needs to follow and check up to recover. In this mining company of Acacia Mining plc, there are some problematic factors for which the company needs to establish some energy policy. In this mining company, the biggest issue is the higher amount of consumption of energy. In order to mitigate this issue, this company needs to establish an energy policy that properly mentions the amount of energy the company should use. Energy distribution and conversion is another issue that this mining company has been facing in order to maintain the balance. As there are some issues that one needs to mitigate by the use of a proper and appropriate energy policy. Some policies have been designed before to mitigate the exact problem. Therefore these are areas that are required to establish a valuable energy policy (Andersson et al. 2019). There are some tools, key energy performance indicators, that help in measuring the performances. By establishing these policies, this mining company needs to implement some energy-related issues. In fact, some gaps have not been identified properly but creating issues in energy uses. By using these policies the company also gets in addressing the issues and this will indirectly help them in mitigation.

Timetabling the schedules of energy audits

An energy audit is a survey or inspection in any company or building in order to check up the flow of the energy that the building is consuming. This process also includes the process of analysing the energy flow among the whole company or building. In this group of the company, the energy conversion has been maintained by the energy audit of the policy. This process first measures energy consumption and energy flow. Then by this process, any company can judge the uses and consumption of the energy. If they find the amount of the energy flow is higher than normal by using the audit process then it might include the process or a system that helps in reducing the energy consumption. In this mining company, an energy audit has been done by the consultancy, which suggests and indicates some problems for flow within the whole company and their working process (Khatoon et al 2019). This audit system also recommends some strategic ideas to control and reduce the energy flow.

Identification of any training or purchases

As the biggest problem in this company is the higher amount of energy consumption and energy flow among the whole company or building, this company has to apply some new implications. The use of old modeled equipment without efficiency is leading the company toward it's main problem. The workers are also inefficient and they were working without attentiveness, they were making the issue more problematic. Some issues need to be confined by the company. The issue of inefficient workers can be mitigated by the process of providing them with some kind of training. In mining companies, various systems are really hard and delicate to use and need efficient hands. In this case, the company should hire eligible workers and take initiative to properly train them (Fernando et al. 2018). New and modern equipment with new technologies and features should be bought by the company in order to maintain the energy flow within the company. These new implications are valuable and can help in reducing energy usage within the company.

Conclusion

This report has been done by the McKinsey Consultancy firm in order to show the mining company of Acacia Mining plc, the importance of the new ISO50001-Energy Management System. In order to do so, this consultancy firm shows various aspects and areas that are problematic. These problematic areas are lack of efficient workers, lack of modern equipment and new technology. Some issues are being converted by the consultancy to the mining company that proves the fact that the company needs to imply the international standard of ISO50001. The consultancy even uses the tool of energy baseline to show their claimed factor. They even provide an energy audit that has shown the actual problems and amount of the energy flow. This audit form even shows some recommendations that are helpful in this context. By this whole report, the consultancy firm has been proven their point and now appealing for assisting Acacia Mining Company to implement the ISO50001.

References

Book

Hansen, S.J. and Brown, J.W., 2020. Investment Grade Energy Audit:: Making Smart Energy Choices. River Publishers.

Journals

Hilorme, T., Zamazii, O., Judina, O., Korolenko, R. and Melnikova, Y., 2019. Formation of risk mitigating strategies for the implementation of projects of energy saving technologies. Academy of Strategic Management Journal, 18(3), pp.1-6.

Johansson, M.T. and Thollander, P., 2018. A review of barriers to and driving forces for improved energy efficiency in Swedish industry–Recommendations for successful in-house energy management. Renewable and Sustainable Energy Reviews, 82, pp.618-628.

Wang, L., 2019, April. Research on internal control construction system of energy-based enterprises based on COSO and financial quality. In IOP Conference Series: Earth and Environmental Science (Vol. 252, No. 3, p. 032062). IOP Publishing.

Fernando, Y., Bee, P.S., Jabbour, C.J.C. and Thomé, A.M.T., 2018. Understanding the effects of energy management practices on renewable energy supply chains: Implications for energy policy in emerging economies. Energy Policy, 118, pp.418-428.

Andersson, E., Arfwidsson, O. and Thollander, P., 2018. Benchmarking energy performance of industrial small and medium-sized enterprises using an energy efficiency index: Results based on an energy audit policy program. Journal of cleaner production, 182, pp.883-895.

Khatoon, A., Verma, P., Southernwood, J., Massey, B. and Corcoran, P., 2019. Blockchain in energy efficiency: Potential applications and benefits. Energies, 12(17), p.3317.