26100 Integrating Business Perspectives Lecture 9 ENERGY EFFICIENCY

26100 Integrating Business Perspectives Lecture 9

ENERGY EFFICIENCY AND THE PLANNING AND CONTROL CYCLE OBJECTIVE 5

OBJECTIVE 5 IS BASED ON “THE PLANNING AND CONTROL PROCESS: ENERGY EFFICIENCY: A STUDY NOTE” SECTION ONE IT IS AVAILABLE VIA UTS ONLINE IN THE FOLDER:

Description of the Planning and Control Cycle § Remember Lecture 1? 4

External Context: Energy Efficiency • Australia has committed to a 5% reduction on Greenhouse gas (GHG) emissions relative to Yr 2000 levels • Hmm, but most of our energy comes from high GHG emissions sources • And energy demand is increasing 5

Energy Efficiency Context • Solutions? • These are the lowest cost solutions Source: International Energy Agency, 2011, 'World Energy Outlook ', OECD/IEA, Paris. p. 214. 6

Link with Organisation, External Context, and Stakeholders • There at least four common reasons given by managers justifying investing in energy efficiency projects: 1. Cost savings: a reduction in energy costs increases profit. 2. Reduced environmental impact 3. Stakeholder pressure: to enhance their reputation with customers, staff and other stakeholders 4. Carbon pricing: a reduction in energy use reduces carbon pricing burden. 7

What do organisations do to become more energy efficient? Many organisations implement energy efficiency using a ‘Planning and Control Cycle ‘ approach, which involves preparation of EVALUATON and PROGRESS REPORTS Project Identification Baseline Performance Measurement Assess Project Feasibility Feedback and Learning Detailed Planning and Budgeting Enactment of Plan Evaluation of Project 8

PLANNING AND CONTROL CYCLE: LIGHTING EXAMPLE Source: http: //www. realhomeimprovement. net/products/aboutenergy-saving-lightbulbs 9

PLANNING AND CONTROL CYCLE: LIGHTING EXAMPLE Stage Title One Baseline Performance Measurement Two Project Identification & Feasibility Three Planning and Budgeting Four Enactment Five Evaluation Six Feedback and Learning Description Count the number and type of light bulbs at the facility. Estimate usage patterns A range of energy efficient light bulbs are identified. The lowest total cost light bulbs are identified (purchase price, life of bulb, and energy consumption are considered). Managers decide who is responsible for purchasing the new bulbs, replacing and disposing of the old ones. They then approve the amount that can be spent on the project. People responsible purchase the new bulbs, replace and dispose of the old ones. The manager checks to see if the job has been done. The cost of the bulbs and the energy saves is compared to the budget. If certain brands of bulbs are found to be of poor quality, 10 these can be avoided in the future.