article-energy-management-cost-cutting

Energy management: companies can reduce their energy costs

Many company managers see rising energy prices as a major threat to their organizations. Current developments are increasingly exacerbating this risk. A systematic energy management system in accordance with DIN EN ISO 50001 and energy audits in accordance with DIN EN 16247 can make an effective contribution to significantly reducing energy costs. With the help of an energy management system, potential energy savings can be identified and leveraged.

The figures have been alarming for some time. According to a study by e.optimum, which claims to be Germany's largest independent energy purchasing association for companies, 20% of all company managers surveyed named energy costs as the biggest burden for the future of SMEs in 2016 and 2017.

The new situation with the war in Ukraine and high inflation is not making the situation any easier. "The Russia-Ukraine war has further increased the burden on companies due to high energy and raw material prices. But even in the latest DIHK economic survey conducted shortly before the war began, two thirds of companies from all sectors and regions cited energy and raw material prices as a major business risk. In industry, as many as 85 percent reported this. These figures are higher than ever before. And now the situation is getting even worse," according to the Association of German Chambers of Industry and Commerce (DIHK).

Companies in Germany are particularly heavily burdened

It also states: "The sharp rise in prices is hitting the German economy hard. SMEs already had to pay the highest prices in Europe in pre-crisis times due to additional state charges - around twice as much as comparable companies in France. The EEG surcharge was abolished on July 1, 2022 - half a year earlier than planned. However, it only compensates for a fraction of the higher procurement costs, emphasizes the DIHK.

Long before the outbreak of the war, the Association of German Chambers of Industry and Commerce had already discovered in a survey that the rise in electricity and gas prices was causing major problems for large parts of the German economy. At the time, three quarters of companies cited electricity and gas prices as a burden on their current business. Almost half of the 600 or so companies from all sectors that took part in the survey even feared that they would lose their own competitiveness in Germany due to the high electricity and gas prices. "The picture painted by the companies is very worrying," commented DIHK President Peter Adrian on the survey results at the time. "The high electricity and gas prices are already depriving a third of companies of the financial scope they need to invest in the future. This affects key areas such as climate protection, research and innovation, but also investments in companies' core business."

Continuously improving energy efficiency in companies and organizations

But what can companies do to "master" this situation and optimize their energy costs in the long term? Simply consuming less energy is generally not possible without further ado. Production facilities, offices etc. cannot be used without energy. Therefore, companies can rarely reduce their own financial burden by simply saving energy.

One solution is a Systematic energy management system in accordance with DIN EN ISO 50001. The ISO 50001 standard is a recognized, comprehensive set of standards that has been used in a wide range of company sizes and industries since 2011. This offers the opportunity to continuously improve energy efficiency in companies and organizations and to reduce energy consumption and the associated greenhouse gas emissions. Consistent energy monitoring also contributes to considerable cost savings.

Energy management influences organizational and technical processes

A large number of companies and other organizations now use an energy management system, according to the Federal Environment Agency. According to the agency, this means: "With the help of an energy management system, potential energy savings are identified and leveraged. This requires, among other things, the identification and evaluation of energy sources, energy flows and areas with significant energy consumption. The energy management system thus helps with decisions on investments in energy efficiency."

According to the Federal Environment Agency, energy management thus helps with the decision to invest in energy efficiency. In order to achieve long-term improvements in energy efficiency, companies define an organization-wide energy policy, set energy targets, create action plans and measure the achievement of targets using key performance indicators. Energy management also influences the organizational and technical processes in the company as well as the behaviour of employees. "For example, responsibilities for energy-relevant processes are regulated, communication procedures are defined and the necessary staff competencies are determined and ensured," says the Federal Environment Agency.

Up to ten percent savings possible with energy management system

The advantage: The international standard DIN EN ISO 50001 "Energy management systems" is not sector-specific and can be applied by small and medium-sized companies through to large corporations or public authorities. It is therefore the task of the respective company implementing the standard in their company to tailor and implement the requirements formulated in ISO 50001 appropriately to their own needs. According to Deutsche Energie-Agentur GmbH (dena), companies can save around ten percent of their energy costs thanks to organizational measures following the introduction of energy management.

We at Höppner Management & Consultant professionally implement the DIN EN ISO 50001 "Energy Management Systems" standard in your company and thus achieve a continuous improvement process as a means of achieving the defined objectives in relation to the energy-related performance of an organization. Our approach is based on the "Plan-Do-Check-Act" (PDCA) method and comprises the following elements

  • General requirements
  • Responsibility of the management
  • Energy policy
  • Energy planning
  • Introduction and implementation
  • Review
  • Management review

Companies therefore need advice on both the implementation and continuous improvement of their energy management systems. Specialists from Höppner Management & Consultant are also available as Well-trained and experienced internal auditors for internal system audits of the energy management system in order to obtain an external and objective view of the company and the respective energy management system. In this way, new optimization potential and need for action can be identified, which companies can use for their personal development.

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