Energy management


on development and implementation of the energy management system at industrial enterprise


Purpose of the work

The purpose of the work is creation of organizational and methodical support for the energy management system (ESM) at the enterprise. As a result of completion of this work there will be prepared a document «Organizational and technical requirements to the automatized energy management system of the enterprise». This document meets the requirements of DSTU 4472:2005 “Energy management system. General requirements”. Future steps of the ESM implementation (installation of computer equipment, measurement, telecommunication facilities, development of software, issuing orders, directions and other work) could be carried out using the enterprise’s own resources.

Urgency of the problem

Development and implementation of the energy management system (EMS) is a top priority energy saving measure for all industrial enterprises, as only due to non cost-based (organizational) little cost-based measures it is possible to reduce energy consumption by 3 to 7%. Besides, EMS should created informational base for the implementation of capital-intensive energy saving measures.

Basis for the EMS implementation

ESM development is being carried out on the basis and taking into account of existing organizational, technical and informational resources of the enterprise: automated management system of heat points, ASCME, metrological means, computer equipment, telecommunication facilities, structure of departments and services dealing with problems of energy efficiency, existing regulations, including the regulation on material incentives for the efficient use of FER, storied data files on energy consumption and production output, etc.

Purpose of creation and functions of the EMS

Purpose of creation of the EMS lies in reduction of specific indices of FER consumption and optimal use of limited financial recourses for realization of the energy efficient projects.

The ESM is a complex of organizational measures, technical means, software and methodical support that allow to make operational management decisions by the management aimed at the consumption only necessary minimum of fuel and energy resources (FER) per product (service) unit. ESM allows to plan the level of energy resources consumption and control over execution of planned performance. Also, ESM allows to optimize the use of limited financial resources for realization of energy efficient projects using a profit maximization criterion.

ESM functions include: on-line inspection for energy consumption, volumes and nomenclature of production and other factors affecting the value of energy consumption, determination of normalized (planned) level of energy consumption, comparison of real and normalized levels, diagnostics of reasons for exceeding real energy consumption level in comparison with a normalized one, energy consumption prediction, taking operative management decisions providing for reduction of energy consumption and management of energy efficient projects.

On-line inspection is carried out by means of daily automated and (or) manual input of data into computer and formation of energy consumption database (ECDB). In case of absence of necessary FER consumption assessment devices, energy consumption can be calculated by known rated energy consumption, operating time and capacity factor of the equipment (virtual energy consumption meters).

Determination of the normalized energy consumption level can be carried out by two methods: calculating and analytical method, and statistical method. Calculating and analytical method is preferable, because it allows to fully take into account all factors affecting the energy consumption level. This method can be successfully applied for typical energy consumption objects such as boiler houses, buildings, pipelines, compressed air systems, ventilation systems, fuel and electric furnaces and other typical energy consumption objects and systems, for which the methods of FER consumption normalization have been developed. However, for the enterprises with complicated and intermittent technological cycle and various nomenclature of products the application of calculating and analytical method is connected with significant difficulties. In respect of such enterprises it is possible to use statistical method. In this case, minimal energy consumption indices reached for the past periods at the enterprise under certain conditions, are used as normalized ones. The application of statistical method requires accumulation of large information arrays about energy consumption for the object (for not less than 1 year period). In practice, it is reasonable to use both methods together: statistical – for the enterprise as a whole, calculating and analytical – for typical energy consumption objects and systems.

Diagnostics of the reason for exceeding real energy consumption level in comparison with normalized level allows to determine: in which production department and due to which factors’ impact the FER overexpenditure occurred. The diagnostics is carried out with the following methods: composition of hierarchical system of energy efficiency indices according to the «enterprise – production subdivision – technological unit» scheme, analysis of energy balances by individual subdivisions and types of FER, and composition of the situations estimation tree connecting deviations of controlled parameters with certain reasons.

Energy consumption prediction is carried out on the basis of use of calculation and analytical, and statistical FER consumption models. Energy consumption prediction is a methodical basis for planning of the enterprise’s expenses on energy resources.

Energy efficiency project management includes two tasks: optimal choice of projects and their monitoring after the implementation. Optimal choice of projects is based on the solution of a classical task for the optimization of distribution of limited financial resource by a profit maximization criterion. The basis for solution of this task is the development of a feasibility study for the each potential project, that is characterized by certain capital costs, annual costs saving connected with FER purchase, reached as a result of the project implementation, and by pay-back period of the capital costs. The task of monitoring the realized projects are carried out with justification for investment repayment schedule by way of comparison of specific energy consumption indices before and after project realization.

Making control decisions ensuring the reduction of energy consumption is realized by the result of diagnostics. Made decision have organizational and technical characters and may be subdivided into the following groups:

  • Improving the performance quality of operational staff;
  • Optimization the operating regime of equipment;
  • Timely repair and maintenance of the equipment;
  • Retrofit or replacement of the equipment.


of work on EMS implementation

  1. Development of an energy consumption sheet of the enterprise with indication of basic energy consumption units and systems, material and energy flows, main indicative characteristics.
  2. Composition of a register of existing measurement tools to determine technological and energy parameters.
  3. Analysis of existing statistical information on real energy consumption of the enterprise: making up energy balances and correlation dependences between the level of energy consumption, production output and other affecting factors.
  4. Development of energy consumption models for the most power-intensive units and systems including schemes of parameters measurement, list of measuring tools (stationary and portable), algorithms for calculation of real and normalized energy efficiency indices, description of possible reasons for energy efficiency reduction, their diagnostic features and methods of elimination.
  5. Development of recommendations for the installation of additional measurement tools to determine energy and technological parameters.
  6. Development of a structure of the on-line EMS database.
  7. Creation of electronic library of express methods of estimation of technical and economical efficiency of potential energy efficiency projects.
  8. Development of the provision about energy management service, job descriptions of service stuffs.
  9. Development of the regulation about the incentives of the stuff of the enterprise by FER use efficiency criterion.
  10. Development of the document «Organizational and technical requirements for automated Energy management system of the enterprise»

Technical and economical efficiency of


Minimum capital costs for ESM creation include the value of computer with standard software (10 000 UAH), and also cost for development of organizational and methodical support and software (250 000 UAH). Additional costs may be connected with the instillation of additional measuring means to determine technological parameters, instrument gages to record the FER consumption, and automated computer data entry systems.

Additional operational costs for EMS implementation are connected with payment of wages to the staff of the energy management service. The energy management service can include three persons with annual wage fund about 150 000 UAH per year.

Estimated annual savings of cash assets that could be reached as a result of the ESM implementation, is not less than 3 to 7%. Thus, for the enterprise having annual FER consumption in the sum of 10 mln. UAH, the annual savings will be not less than 300 000 UAH, and a pay-back period of capital costs will be not more than 1,7 year.

International Cooperation

«ARNICA-Centre» Company strives for the expansion of international cooperation in the field of energy efficiency, architectural and development engineering. Experts of the company have participated in the implementation of the following international projects.

  • TACIS Project “Development of an Energy Saving Action Programme for Ukraine EUK9506, 1998.
  • TACIS Project “Support and Development of Renewable Sources of Energy (Biomass)”. EuropeAid/119152/C/SV/UA.
  • “Decreasing Energy Losses in Ventilation Systems in Industrial and Public Buildings”. Technical assistance of Denmark Government, 2001.
  •  “Energy Saving in Buchansky Glass Factory”. Technical assistance of the Netherlands Government, 1999.
  • Energy Saving in Public and Administration Buildings in Kyiv. Project of World Bank and Kyiv Administration, 2000 – 2004.
  • «Alchevsk Iron & Steel Works», Public joint-stock company CHP unit. Technical and consulting services. EBRD, MWH S.p.A. 2006.
  • Industrial Energy Efficiency Services Programme 2007-2008. Call-off Notice Number C16707/CATC-2007-07-03/01/FC372.

Rationing of energy resources consumption

Rationing of unit costs of fuel and energy resources (FER) is the process of determination of objectively necessary volume of their consumption per unit of goods manufactured, work executed or services provided in concrete environment of social production.

Rationing of FER is carried out to guarantee their efficient use, expose and eliminate the facts of FER excessive consumption in comparison with a standard level.

Rationing is the element of state policy of energy saving and energy efficiency in Ukraine and is regulated the following main legislative, normative and regulatory legal acts:

  • The Law of Ukraine «About energy saving» dated July 1, 1994 № 74/94;
  • The Resolution of the Cabinet of Ministries of Ukraine dated July 15, 1997 № 768 «About order of normalization of specific costs of fuel and energy resources at the social production» (With changes included under the resolution of the Cabinet of Ministries of Ukraine № 1040 (1805-III) dated 27.06.2000 №633 (09/09- 2682-ЕП) dated 06.06.2001);
  • The order of State Committee of Ukraine for energy conservation dated 22.10.2002 № 112 «About approval of Main states concerning normalization of unit costs of fuel and energy resources in social production»

The experts of «ARNICA-Centre» have long experience in developing methods and calculations of FER consumption rates at industrial and municipal enterprises. They use calculation-analytical and calculation statistical approaches to the development of methods and norms.

FER consumption rationing is an efficient means to control for reasonable FER consumption and making rwell-founded decisions for energy efficient modernization of the enterprises. Development, analysis and using of FER consumption rates are an important component of energy audits of the enterprises and buildings, and also an important component of the introduction of energy management systems.

Development of regulatory and legal framework for energy efficiency

The experts of the company have experience in developing legislative, regulatory and legal acts, and informational and analytical materials in the sphere of energy efficiency:

  • Draft law «About energy efficiency in housing and communal services».
  • Energy strategy of Ukraine for the period till 2030.
  • Energy saving strategy in Ukraine: analytical and reference materials in 2 books. General regulations of energy saving. / Edited by V. Zhovtyanskiy, M. Kulik, B. Stohniy, Kyiv, 2006.
  • Energy saving technologies, equipment and engineering solutions. / Edited by A. Sukhodolya, E. Nikitin. Kyiv, 2004.
  • Handbook «Increasing of efficiency and modernization of ventilation systems».
  • Collection of energy efficient technologies and equipment of Ukrainian and Belarus producers. Kyiv, 2005.
  • Methodological recommendations on creation of a local economical stimulation system of energy saving at budget entities, Kyiv. 2005.
  • Collection of legislative, regulatory and legal acts on energy saving. Kyiv, 2004.

Feasibility study of the Energy Efficiency Projects, Energy Audit

The «ARNICA-Centre» Company carries out the package of work on executing energy audits and development of feasibility studies of energy efficiency projects at industrial, municipal, agricultural enterprises and buildings.

Full energy audit of the enterprise includes:

1. Drawing up and analysis of the enterprise energy balances by individual kinds of fuel and energy resources (FER), production units, time gaps, and also taking into consideration other factors affecting the energy consumption level.

2. Analysis of actual specific indices of energy consumption.

3. Calculation of normalized (progressive) specific indices of energy consumption. Comparison of actual and normalized indices.

4. Determination of priority tasks of the energy audit on the basis of the analysis of energy balances, actual and normalized indices of energy consumption, long-term plans for enterprise development and consultations with experts of the Customer.

5. Carrying out in-situ measurements to determine actual consumption of fuel and energy resources and reasons of its increasing in comparison with normative (calculated) level at concrete energy consuming entities and systems using standard and portable measuring tools. Estimation of the efficiency (use, effectiveness) for these units and systems, including the following:

  • Steam and hot water boilers;
  • Pumps, smoke exhausters, ventilators;
  • Heating and hot water supply systems;
  • Fuel furnaces and heat technological units;
  • Electric furnaces;
  • Steam supply systems and condensate return systems;
  • Compressed air systems;
  • Heat-insulating structures of buildings, pipelines, heat and refrigerating units;
  • Electrical supply systems;
  • Lighting systems;
  • Energy-intensive technological units and processes.

2.  Development of feasibility study (FS) of the energy saving measures (ESM) including determination of annual saving FER, costs of ESM implementation and payback period of capital outlays.

Standard ESM include:

  • The utilization of secondary energy resources (SER), including heat power of hot waste gas, heat air, water, industrial fuel gas, liquid and solid fuel waste, heat of technological materials and other SER
  • The replacement of obsolescent and outmoded boilers with modern units having high efficiency, optimal power and their placing in the immediate vicinity to the consumer (to avoid steam and hot water consumption in the pipelines);
  • updating of heat insulation of buildings, constructions and units, using modern heat insulation technologies and materials;
  • Replacement of low efficient fuel devices with modern fuel devices providing high efficiency of fuel use
  • Installation of cogeneration units to provide enterprises (buildings) with electric and heat power. In some cases, it is expedient to consider the use of the three-generation systems (electrical power + thermal power + refrigeration);
  • Replacement of traditional water heating with local systems of radiant or air heating for the objects with intermittent mode of operation and underloading;
  • Increasing the efficiency of steam utilization due to mounting of steam trap units and condensate return systems;
  • Installation of systems for weather and programme regulation of heat consumption of buildings;
  • Istallation of the automatic “fuel-air” ratio adjustment systems to increase efficiency of the fuel combustion;
  • Use of solar energy to increase the efficiency of hot water supply systems;
  • Istallation of heat pumps to utilize low-grade heat energy of water, air and soil.
  • Replacement of natural gas with biofuel in hot water and steam boilers;
  • Biogas production from animal and agricultural processing waste with the purpose of heat and electrical energy production.

Along with the standard ESM, there are developed special measures for concrete technological processes.

1. Optimization of the distribution of limited financial resources of the enterprise for ESM realization on the basis of its ranking by technical and economical efficiency indices.

2. Development of principle engineering solutions for ESM realization.

3. Carrying out engineering projects to implement individual energy saving measures.

In case of preliminary determination of energy audit tasks by the Customer, it may be performed not full, but partial (special) energy audit

Along with carrying out energy audit there is carried out the work on preparation of the investment projects, including

  • Development of business plans for investment projects of energy efficiency.
  • Rendering assistance to the enterprise in seeking for potential investors.
  • Rendering assistance to the enterprise in obtaining additional funding for implementation of the projects using Joint Implementation Mechanisms under the Kyoto Protocol.

Energy audit of the buildings

1. Target of energy audit. Estimation of technical and economical efficiency (annual saving, capital costs, pay-back period of the capital costs) of the measures aimed at reduction of financial costs for heat supply of the building and increasing the quality of heat supply.

2. List of the measures involved.

  • Warming of facades, camp ceiling, basement.
  • Installation of radiator reflectors.
  • Replacement or warming of the windows.
  • Installation of the automatized (computer-aided) system for weather and programme control of heat consumption of the buildings;
  • Installation of the individual boiler house (for the building with district heating).
  • Installation of the unit for cogeneration of heat and electrical power.
  • Installation of the heat pump.
  • Installation of the solar water heater.
  • Installation of the system for emission heat utilization.
  • Thermohydraulic adjustment of the heating system.
  • Other energy saving measures.

3. Stages of carrying out the works:

  • Development of the Statement of Work for carrying out the energy audit.
  • Collection of the basic data (building specification, data concerning its heat consumption and operating regimes).
  • In-situ measurements using portable and stationary measuring tools (heat counters, applied ultrasonic flow meters, air temperature sensors, heat carrier, infrared thermometers, hot-wire anemometers, heat flow probes).
  • Studies using calculation methods (heat losses through the filler elements of the building for different options of theirs embodiment, cost of the realization of the energy saving measures, annual costs in comparison with basic option, pay-back period of energy saving measures).
  • Preparation of the report.
  • Presentation of the work results.

 Methods of carrying out the works consists in determination of heat load of a building for different options of embodiment of the filler elements of the building and operating regimes, estimation of the heat energy economy by the means of comparison with basic (existing) option, calculation of the capital costs and the pay-back periods for different options of energy saving measures. The calculations are carried out by the means of approved computer-aided engineering methods. As initial data for the calculation, the results of the in-situ measurements (total heat load for heating and hot water supply, air temperature inside and outside of the building, heat flows through the different building elements of construction, inleakage of air volume), nameplate characteristics of the building, existing and forecast prices for heat energy, equipment and materials are used.

Period and cost of carrying out the work. The work is carried out during one month. The cost of the work per one building is 5 000 – 15 000 UAH depending on the quantity of energy saving measures and volume of the building under review.

List of energy audits and feasibility studies

  1. «Lisichansk rubber technical plant» Scientific and Manufacturing Enterprise, Ltd.
  2. «Demiteks» Public Joint-Stock Company
  3. Heat points of dwelling houses (Mitskevicha Str. 5 and Mitskevicha Str. 7 in Rivne, Ukraine).
  4. Heat networks of the Rotok residential district (Bila Tserkva), Kyiv oblast.
  5. «Yuzhny’j Mashinostroitelny’j zavod», GP PO
  6. Yagotinskiy Sugar-House, SE
  7. «Stakhanov technical carbon plant»
  8. «Uzhgorogteplocomunenergo»
  9. «Altchevsk by-product coke plant», Public joint-stock company
  10. Scientific-Production Enterprise «Luganskemal» Ltd.
  11. «Elopack-Fastiv »
  12. Feasibility study «Implementation of CHP system in district heat supply in Dnipropetrovsk an example of reconstruction of «Promenergouzel» enterprise.
  13. Survey of the heat supply system in Dnipropetrovsk, Dniprodzerzhynsk and Pavlograd.
  14. Heat supply system of JSC «AZMOL» in Berdyansk.
  15. Industrial steam boiler house of the pipe plant in Nikopol, Dnipropetrovsk oblast.
  16. Housing in Sinelnikove, Dnipropetrovsk oblast.
  17. Energy audit of 270 administrative buildings in Kyiv, Ukraine in the frames of the World Bank project «Energy saving in administrative and municipal buildings in Kyiv».
  18. Perechin Timber and Chemical Plant, OJSV.
  19. Veneer and plywood plant, Shostka.
  20. «Polissya-Agro» Ltd., livestock company.
  21. «Ukrtransnafta », 2008.
  22. «Procter & Gamble» plant in Boryspil, 2008 – 2009.
  23. Bread-baking plant #1, Zaporizhzhia, 2010.
  24. Bread-baking plant #3, Zaporizhzhia, 2010.
  25. Heat supply system of the State enterprise of a special instrumentation «Arsenal», 2010.
  26. Administrative and residential buildings in Kurahove, Donetsk oblast (15 buildings), 2010.
  27. Heat supply system of cities-recipient of the Municipal Heating Reform in Ukraine project: Myrhorod, Kremenchuh, Komsomolsk, Vinnytsia, Chernihiv, Korosten, Khmelnytsky, 2011.
  28. Administrative building, Starokyivska Str. 14, 2011.
  29. Heat supply system of Burshtyn and sources of thermal energy generation, 2011.

List of scientific and methodological developments on energy audit

  1. Handbook: “The Efficiency Increase and Modernization of Ventilation Systems”.
  2. Development of indices of economical efficiency of energy saving measures.
  3. Development of the energy audit measures and express-diagnostics of energy supply systems of the buildings.
  4. Development of the computer-based automatic data-processing system used while carrying out energy audit in the budget financed institutions.

The experts of the company have 11 year experience in carrying out energy audits and designing engineering systems of buildings and enterprises, relevant diplomas and certificates, complete set of portable measurement tools, developed methodical software for carrying out the work on high engineering, scientific and methodical level.