Energy Management

10:30 Energy Management as a Profession

Version 2.011th November 2015

Energy Managers (EM). Where is the next generation of EM’s coming from?

Agenda1. Introduction

2. Myth Busters!!

3. npower’s Energy Management Journey

4. Energy Managers – Who are they?

5. Future generations of Energy Managers

6. Educate them on what?

7. Where do we go next?

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1. Introductions

Who am I to talk about Energy Management?

Dave Horton. CITP MAPM MCMI

• 19 ½ Years in the Energy Industry (MEB, npower and RWE)

• 12 years working on Energy IT Systems, Processes and Solutions

• 6 years working as Head of Property, Sustainability & Capital Investments

• 1 year within npower Business Solutions, New Products & Innovation

2. Myth Busters

Some of the comments I hear often

Myth Busters.• npower doesn’t pay for its energy

– WRONG. We have a legal obligation to create invoices for CCL, VAT, Non-Commodity etc.

– npower’s annual energy bill exceeds £5 million, over 97% of which leaves our bank accounts

• npower wants to sell me more energy, not help me save energy

– WRONG. Again we have legal obligations to some customers to help them reduce their energy bill

– All customers want to reduce their energy bill so if we don’t help you then another supplier will

– We can make margins on saving you money as well as by selling you energy

• npower doesn’t really want to educate its customers on energy management

– WRONG. By training you and working with you we can earn your trust and loyalty– Working together in partnership to gain a much more in-depth knowledge of your

business energy profile to help reduce your usage

3. npower’s Energy Management Journey

Where we were and our journey?

Energy profile in 2010

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Performance Indicator 2010 Outturn Value Compared to 2009

npower energy usage 61.0 GWh 7.2%

Total energy spend £5.55m 7.8%

CO2 produced 28,800 Tonnes 7.5%

# Sites not supplied by npower 14 No Change

Electricity Price npower 2010 – £91.00/MWh (Retail price No VAT)

Energy Profile in 2014

9

Performance Indicator 2014 Outturn Value Compared to 2010

npower energy usage 38.9 GWh -36%

Total energy spend £4.11m -26%

CO2 produced 18,365 Tonnes -36%

# Sites not supplied by npower 0 -100%

Electricity Price npower 2014 – £105.70/MWh (Retail price No VAT)

Summary of 5 years work

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Performance Indicator Savings in 2014 compared to 2010

RWE npower energy usage 22.1 GWh

Total energy spend £1.44m

CO2 production 10,435 Tonnes

Cost of CO2 permits (£12/Tonne) £125k

Total Annual Saving £1.56m (28%)Ongoing

Recognition of the journey

• Awarded ISO 14001 re-certification (2 certifications brought together)

• Awarded ISO 50001 certification (14001 & 50001 to be combined in 2016)

• Awarded Carbon Trust Triple Standard (Carbon, Waste & Water)

• Awarded 2013 Energy Awards – Winner of Excellence in Carbon Reduction

• 2014 Energy Awards finalists - Excellence in Demand Reduction Excellence in Behavioural Change

• 2015 Energy Awards finalists – Excellence in Employee Engagement Energy Data Collection & Analysis

4. Energy Managers

Who and what are they?

Where do Energy Manager (EMs) come from and have in common?• Energy Managers come from many backgrounds including, but not limited to;

– Mechanical Engineering– Electrical Engineering– Risk & Hedge Management– Facilities Management– Environmental Management– Administration– Finance Management– Data Analysis– Business Analysis

• What do they all have in common?

– Very few, if any, started their career as Energy Managers– Very few, if any, of their original training included any education or qualifications in Energy

Management.– Many EMs inherited or designed from scratch their databases and processes– A good EM will save your company large amounts of money (direct EBIT relationship)

Some areas looked after by Energy Managers

LegislationCompliance

Electricity

Gas

Oil

Finance

Budgets

Forecasting

Water

ISO 50001

ISO 14001

Benchmarking

Consultation

Carbon

Waste

Recycling

Energy Efficiency

Project management

Reporting

Targets

EMR

Strategy

Policy

Staf

f eng

agem

ent

Behavioural Change

Transport

Emissions

GHG Reporting

Permits

EU ETS

CC

ADUosTUos

Flexible purchasing Renewables

Electric Vehicles

Effluent

Procurement

Recycling

Bio-

Mass

Micro-Generation

Heat pumps

Metering

Sub-MeteringPlanning

• Someone targeted to provide a reduction in overall energy costs

• Someone targeted to ensure compliance with all relevant legislation

• Someone targeted to look at wider Utility costs and legislation

– Waste– Water– Transport– Energy Efficiency projects

• Someone who can create, plan and implement the relevant strategy and projects specific to their business to reduce costs

• Someone who understands the wider trends, theories and impacts of legislation and technology around energy, water, transport and waste

• Someone who can challenge the status quo and think laterally when looking at energy, water, waste and transport

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What can an Energy Manager provide your business?

What can an Energy Manager provide your people?• Role Model

– A good Energy Manager will be an example of good practise when looking across energy usage, waste disposal etc.

• Understanding

– A good Energy Manager will provide the information people need to understand the impacts of their actions at home and in the office

• Motivation

– Through education and behavioural change campaigns a good Energy Manager will motivate your people to save energy, recycle waste and cut back on water usage

• Leadership

– Through example, through training and innovation your Energy Manager will lead your business to reduce its costs, reduce your emissions and recycle your waste

Where are the future generation of Energy Managers coming from?

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5. Future generations of EM’s

Starts with education from the youngest age

Current and Future Energy Managers need:

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• Education in schools (LEC Awards for schools)

• Employee education and engagement campaigns

• Formal training courses and qualification paths

• Inclusion in University degree courses

• Apprenticeships

• Post graduate degrees

• On the job training

• Recognised job profiles, roles and responsibilities for Energy Managers (Hayes etc.)

• Recognition of the wider utility management roles most Energy Managers undertake

Educate the current.

• Next 10 years

– Many of Energy Managers are already in the work place so will need re-training and upskilling

– Formal education courses with mentoring and help through accredited bodies, e.g. EMA

– Post graduate training and qualifications, utilising current degree course modules with newly created specific modules

– Recognition of Energy Managers and their value with recognised salary bands

– Behavioural change campaigns and staff awareness, looking for the Energy Managers of tomorrow

– Apprenticeships within Energy Management, which includes the wider environmental arena

Educate the Future

• Next 10-20 years

– Start education in schools now from the age of 7 onwards

– Incorporate Energy Management in to GCSE’s and degree courses

– Exit education in to Junior Energy Management roles

– Formal on the job training and qualifications (equivalent to CIMA)

– Potential centrally recognised Chartered status for Energy Managers

– Job descriptions and profiles recognised across the industry and recruitment companies

– Build in Energy and Carbon management to all aspects of projects and business

6. Educate EM’s on what?

What needs to be on the syllabus?

Remember this?

LegislationCompliance

Electricity

Gas

Oil

Finance

Budgets

Forecasting

Water

ISO 50001

ISO 14001

Benchmarking

Consultation

Carbon

Waste

Recycling

Energy Efficiency

Project management

Reporting

Targets

EMR

Strategy

Policy

Staf

f eng

agem

ent

Behavioural Change

Transport

Emissions

GHG Reporting

Permits

EU ETS

CC

ADUosTUos

Flexible purchasing Renewables

Electric Vehicles

Effluent

Procurement

Recycling

Bio-

Mass

Micro-Generation

Heat pumps

Metering

Sub-MeteringPlanning

Energy Managers need to be experts in

• Legislation covering, to name a few;

– Energy– Carbon– Water– Waste– Environment

• Procurement

– Direct – Indirect– Energy Solutions/Service

• Programme & Project Management

• Strategy and planning

Energy Managers need to be experts in (cont’d)

• Budget Management

– Operational expenditure (bills)– Capital expenditure (projects)– Energy Performance Contracts (EPCs)

• Transport

– Emissions– Strategy & Policy to reduce– Fleet management

• Energy & Carbon Policy & Strategy creation

• Business case development

• Stakeholder engagement

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Energy Managers need to be experts in (cont’d)

• Building management, including;

– Building Management Systems (BMS)– HVAC (Heating, Ventilation, Air Conditioning)– Waste water– Waste food– Waste sewage & effluent– Lighting

• Data Analysis, invoice validation & payment

• The Energy Industry

• The Water Industry

• The Waste Industry

• and much, much more…………..

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7. Where do we go next?

What do we need to do together?

Behavioural Change & Staff Engagement• Begin education in schools

– npower Climate Cops and Little Green Finger type campaigns, matched to meet the current curriculum

– Low Energy Schools – Gold, Silver and Bronze awards from LEC with E-Learning tools

– School energy and waste saving projects– Inclusion into GCSE curriculum for energy and waste management at home and in

the work place/school

• Educating employees (for home and work)

– Energy and Recycling staff awareness campaigns– Employee incentives and competitions for energy/waste saving ideas and projects– Basic qualifications through E-learning tools (Low Energy Company/EMA Certificates)– Company incentives, case studies including reduced energy costs, reduced

emissions, increased recycling and lower waste disposal costs

Microsoft PowerPoint Presentation

Recognised Energy Manager Career Path

• Junior Energy Managers

– Apprenticeship in place and recognised by Dept. Business, Innovations and Skills– Membership of relevant bodies e.g. Energy Managers Association– Constant review and re-training/up-skilling as legislation and technology change– Recognised Job Description and salary banding though processes such as “The Hay

Group Guide Chart Profile Method of Job Evaluation”– Extend the Apprenticeship recognition throughout EU countries

• Senior Energy Managers

– Discussion and planning in place with Keele and Warwick University to look at degree and post graduate degrees in Energy Management

– Recognition of approved courses and modules throughout EU Countries– Recognised Job Description and salary banding though processes such as “The Hay

Group Guide Chart Profile Method of Job Evaluation”– Membership of relevant bodies e.g. Energy Managers Association

Wider Energy Managers Remit

Whilst Energy is the main remit of an Energy Manager, many other areas of responsibility and budgets are often assigned to the Energy Manager’s role.

Some of these include, but aren’t limited to

– Building HVAC system management and replacements– Energy Assessment and Measurement & Verification– Behavioural Changes and Motivation– Regulatory & Legal Compliance and Carbon Management– Energy Management and Strategy/Plan– Waste Management– Procurement– Transport emissions and reporting– Water Management– Effects on energy and water by IT Data Centres and projects– Project Management

Training and advise in all the above and many more subjects to make a rounded Energy Manager

Summary

• Address what Energy Manager roles are going forward

• Start the education as early as possible

• Work with schools, universities, business and government to put in formal training through the school and university curriculum and further education

• Create recognised job profiles and salary bands for Energy Managers

• Ensure we address the wider role of many Energy Manager which can include waste, water, transport, procurement, legislative compliance etc….

• Start this work as soon as possible

8. Thank Your for Listening

Any Questions Please

npower Energy Managers Qualifications. EMA Accredited courses

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• Level 1 – Foundation E-Learning

• Level 2 – Champion. 1 day classroom based training

• Level 3 – Expert. (Apprenticeship) 12 Modules. Classroom based

– 3 Day Intensive Introduction to Energy Management– Technical & Operational– Energy Assessment and Measurement & Verification– Behavioural Changes and Motivation– Regulatory & Legal Compliance and Carbon Management– Energy Management and Strategy/Plan– Waste Management– Procurement– Transport– Water– IT– Project Management

• Level 4 – Masters Post Graduate Diploma/Degree under construction

Ready to deliver