The important step following the identification of energy management opportunities is evaluation of the identified energy management opportunities.
Methods of Representation While Evaluating and Calculating Impacts of EMOs:There are various items that should take its presence while evaluating and calculating impacts of energy management opportunities. The foremost item that takes its presence is the identified energy management opportunities with a unique number for each. This is represented with detailed workout of energy usage in present system and the improved energy that would be achieved by the proposed identified system. The energy used in present and proposed system can be represented in chart as units of kWh and dollars on a yearly consumption unit.
While evaluating and calculating impacts of energy management opportunities the unit that could be saved as energy annually because of the proposed identified energy management opportunity is also represented.
Benefit cost is another attribute that takes its presence in the evaluation chart of energy management opportunity. Benefit cost is nothing but representation of energy saved annually per investment dollar. The other important elements in the chart while evaluating and calculating impacts of energy management opportunities are capital costs to be made by management for improvement or update of process, projection on rate of return that could be achieved for the proposed capital investment also called as ROI in short. Apart from the above benefits and risks or drawbacks that could be achieved by each of the identified energy management opportunities should also be projected in a quantifiable manner while evaluating and calculating impacts of energy management opportunities. In a nutshell important key elements in the report representing the evaluation impacts of EMOs are the following:
- Identified EMO with Unique Number for each.
- Actual performance comparison with proposed EMO.
- Implementation cost that is capital cost involved for each EMO.
- Benefits along with benefit cost associated with implementing each EMO.
- Risk associated with implementing each EMO.
- ROI represented in years.
Goals While Evaluating and Calculating Impacts of EMOs :
The main goal or objective in evaluating and calculating impacts of energy management opportunities is that it helps management to make a initial study of proposed identified energy management opportunities and its impacts for further selection and processing. Rather than concentrating much on the exactness of numerical figures represented it is much more vital to project all inputs with accuracy which helps in effective decision making. This is because sometimes even minor improvements or updates in existing system focused would help to achieve low cost production along with high energy savings. The main objective and goal of evaluating and calculating impacts of energy management opportunities is to project various identified energy management opportunities against relative energy impacts of present and proposed systems to the cost analysis and benefits or risk and implications involved in the process for effective decision making.
By projecting and giving a detailed evaluation and calculation on the impacts of energy management opportunities it is possible to achieve effective and reasonable energy performance in the industry along with cost effective decisions.