Reducing your Exposure to Energy Risk with Enterprise Energy Management

Abstract

Whether the need is to reduce costs or improve yields, increase
uptime or improve customer satisfaction, the top priority for any facility
manager is always a question of risk. The supply of reliable, clean, and
cost-effective energy is mission-critical, yet this continues to be one of
the least carefully managed inputs to a business, and this translates to
poorly managed risk. Fluctuating energy prices in a deregulated market
might spike one month, wiping out a whole quarter’s profits. Un-
planned production downtime caused by utility interruptions or on-site
equipment failure can be very costly.
Managing these risks requires accurate measurement of the cost,
quality, and reliability of the power from the source to the load. An
enterprise energy management (EEM) system reduces risk by providing
key performance indicators that help managers determine whether criti-
cal operating parameters are within expectations (Figure 1). An over-
view of the current state-of-the-art in EEM technology was provided in
a recent issue of Strategic Planning for Energy and the Environment (see
“EEM: The Right Power at the Right Price,” Vol. 22, #4). Looking at
energy in terms of business risk offers further insight to the benefits of
such systems.
EEM systems deliver relevant information in a timely fashion
through a combination of accurate cost/revenue metering, embedded
power quality/reliability monitoring, and a cost-effective internet-based
communications infrastructure. With an EEM system, risk can be man-
aged in terms of understanding what is going on, understanding what
will happen if a particular action is taken, and helping make decisions
to reduce risk, improve profitability, and maximize the return on the
energy investment across the entire enterprise.