Demand side management

Managing how your facility or property uses your energy resources is known as demand side management. Based on the successful practices of ENERGY ST R partners! E" has de#eloped a set of se#en $demand side% guidelines for esta&lishing and running an effecti#e energy management program. ccording to E" ! organi'ations that adopt a comprehensi#e approach such as Energy Star to management energy achie#e significantly greater results than those without formal energy management programs. The following steps are adapted from E" (s program and can &e found on the we&site referenced &elow) Step One: Make a Commitment E" suggests you first identify a senior energy e*ecuti#e to lead a dedicated team to set goals! track progress and &e the on+site ,Energy -hampion, for your &usiness. This senior manager should ha#e a written policy to dri#e the organi'ation.s culture and operational &eha#iors. Make a commitment to wise energy management &y &ecoming an ENERGY ST R partner. Step Two: Assess Performance E" (s second step is to collect energy+use data and document it o#er time. /etermine the starting point from which to measure progress. -onduct an energy audit to compare your performance against other facilities! peers! and competitors to help you focus on areas for impro#ement. lthough numerous energy audit tools are a#aila&le! Nicor 0nc.! a northern 0llinois and -hicago gas company! offers a con#enient on+line energy audit that you might find helpful. The E" ENERGY ST R we&site additional pro#ides tools and resources! including the E" (s energy performance rating system for &uildings deli#ered on+line through its "ortfolio Manager we&site. Step Three: Set Goals Your senior energy e*ecuti#e should then de#elop energy management goals. Goals should &e realistic! timely! attaina&le! and measura&le! yet challenging. The Energy Team should determine the scope and parameters of the goals. Re#iewing your energy assessment &enchmark will help your team determine the potential order of upgrades. Goals should &e set for the entire organi'ation and then incorporated into each department.s operational plan. Step Fo r: Create an Action Plan 1ith goals set! your organi'ation is poised to de#elop a roadmap to impro#e energy performance. E" suggests you chart a course for sa#ings and more effecti#e use of your energy resources with a detailed action plan to ensure a systematic process to implement energy performance measures. ction plans should encourage an inclusi#e strategy that esta&lishes the roles and processes throughout the &usiness. 2nlike the energy policy! the action plan is regularly updated! most often on an annual &asis to reflect recent achie#ements! changes in performance! and shifting priorities. lthough the scope and scale of the action plan is often dependent on the organi'ation! the steps

&elow from E" (s ENERGY ST R program outline a &asic starting point for creating a plan.

!"al ate technical assessments and a dit res lts to identif# gaps $etween c rrent performance and goals. Determine technical steps: 0dentify the steps necessary to for upgrading and mo#ing facilities from current performance to the desired le#el of performance as defined &y your goals. E" (s we&site has guidance on de#eloping a systematic approach to upgrading &uildings! and tips for reducing energy use. There are other good sources of information on formation of an energy action plan too. Define targets: -reate performance targets for each facility! department and operation of your organi'ation to track progress towards achie#ing goals. E" suggests that you set timelines for actions! including regular meetings among key personnel to e#aluate progress! completion dates! milestones! and e*pected outcomes. Esta&lish a tracking system to track and monitor progress of action items. E" (s we&site has specific tips and tools to help you. Determine roles: /etermine who should &e in#ol#ed and what their roles should &e. 0nternally! this might include departments such as facility and operations management3 financial management3 human resources3 maintenance3 supply management3 &uilding and plant design3 engineering3 communications3 en#ironment! health 4 safety. E*ternally! determine the degree to which consultants! ser#ice pro#iders! #endors! and other product pro#iders will &e used. E" suggests outsourcing entire aspects of your action plan! or contracting with specific #endors for limited pro5ects. 2sing outside help for implementing parts of or all of your &usiness plan does not mean outsourcing responsi&ility for aspects of your energy management strategy. E" (s we&site has an e*cellent directory to ser#ice and product pro#iders. Determine reso rces: /efine resources needed! in terms of manpower and likely costs! for each aspect of the action plan and de#elop a &usiness case to o&tain these. E" (s financial #alue calculator is a#aila&le and a good resource. 6#iew calculator7

Step Fi"e: %mplement the Action Plan E" asserts that e*ecuting your action plan is dependent on the acceptance! awareness and commitment of your peers. E#ery employee plays a role and impacts the programs success. Be certain that your action plan includes a strong internal communication plan to raise awareness and moti#ate e#eryone. "ost the organi'ation.s performance in lunchrooms and other key locations throughout the company. Track and monitor impro#ement in your organi'ation. Step Si&: !"al ate #o r Progress

E" suggests that your ne*t step is to e#aluate your progress. E#aluation results and information gathered during the formal re#iew process is used &y many organi'ations to create new action plans! identify &est practices! and set new performance targets. Step Se"en: 'ecogni(e Achie"ements Making the most effecti#e use of your energy resources is a team effort and recogni'ing the people in your organi'ation that significantly contri&uted to the progress is #ery important! according to E" . lthough this step is last on the list! it really should &e e*ecuted at e#ery a#aila&le opportunity along the way in order to keep the team moti#ated and focused on the goals. E" offers ENERGY ST R awards and you may earn the ENERGY ST R 8a&el for your &uildings. Recognition from E" pro#ides e*ternal #alidation of your energy program and can enhance your organi'ation.s pu&lic reputation! making you more attracti#e to customers! students! current and future employees! &usiness partners and other stakeholders.