How to build an effective industrial energy management system- Step 1: Management Commitment

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STEP 1: Management Commitment to Continuous Improvement

In the previous article we talked about the benefits and reasons to establish effective energy management system in the industrial sector.

(Link for the previous article for reference:

It is worth to mention that I created a LinkedIn group “Proactive energy managers group (PEM) ( ) for exchanging experiences and provide any support for any engineer interested to build energy management system in his plant or just interested to know more information about energy management in general.

In this article we will mention the seven steps and talk in detail about the first step.

The seven required steps are:

  1. Step 1: Management Commitment
  2. Step 2: Assess plant energy Performance
  3. Step 3: Set energy savings Goals
  4. Step 4: Create Action Plan to achieve the target savings.
  5. Step 5: Execute the action Plan to achieve the savings.
  6. Step 6: Evaluate the progress and feedback
  7. Step 7: Recognize Achievements and revise the action plan.

Step one: Management commitment:

Management commitment is an essential pillar to ensure the success of any Energy management system as it will provide the required support, fund, stuff and other resources for regular assessment for the energy performance and implement required steps to increase energy efficiency.

To build any energy program it is required to form a dedicated energy body that consists of the following components:

  1. Appointing Energy manager also they call him energy director.
  2. Assemble Energy team (team members from all related stakeholders).
  3. Write an energy policy that will provide the foundation for setting performance goals and integrating energy management

  1. Appoint an Energy manager (Energy manager)
    • His main duties will be setting goals, tracking progress, and improving the energy management system.
    • The Energy manager is not always an expert in energy and technical systems but at least he should understand how energy management helps the organization achieve its financial and environmental goals and objectives.
    • Depending on the size of the organization, the Energy manager role can be a fulltime position or an addition to other responsibilities.
    • In some cases engineering manager, maintenance manager, process or operations manager or senior engineers can play this role beside their original duties.
    • If the Energy manager does not report directly to a senior manager it will be a good idea to assign a member of senior management (management representative MR) to serve as an executive support for him to ensure top management direct link and involvement.


The duties of Energy manager will include:

  • Coordinating and directing the overall energy program
  • Acting as the point of contact for senior management
  • Increasing the visibility of energy management within the organization
  • Drafting an Energy Policy
  • Assessing the potential value of improved energy management
  • Creating and leading the Energy Team
  • Securing sufficient resources to implement strategic energy management
  • Assuring accountability and commitment from core parts of the organization
  • Identifying opportunities for improvement and ensuring implementation (including staff training)
  • Measuring, tracking, evaluating, and communicating results
  • Obtaining recognition for achievements.


  1. Establish an Energy Team

All decisions affecting energy use are made every day by people and by creating an energy team, it will support the integration of the energy management in the daily activities and practice.

  • In addition to planning and implementing specific improvements, the team measures and tracks energy performance and communicates with management, employees and other stakeholders.
  • The size of the energy team will vary depending on the size of the plant or the organization.
  • This team will be led by the Energy manager and shall include representative from each operational area that significantly affects energy use, such as:
    • Engineering
    • Purchasing
    • Operations and Maintenance
    • Building/Facilities Management
    • Environmental Health and Safety
    • Contractors and Suppliers
    • Utilities

Energy team terms of reference (TOR) shall be prepared and approved by management.

  • The TOR shall include the team major functions and targets that is similar to the energy manager responsibilities that were mentiond in energy manger duties part above.
  • Write an Energy Policy
  1. Institute an Energy Policy

  • An Energy Policy provides the foundation for successful energy management.
  • It formalizes senior management’s support and articulates the organization’s commitment to energy efficiency for employees, shareholders, the community and other stakeholders.
  • It will be a good idea to have the CEO or head of the organization officially issue the policy.
  • Make sure to involve key people in policy development to ensure buy-in.
  • The policy shall be tailored to the organization’s culture.
  • It shall be written in understandable language to employees and public.
  • After issuing the policy it shall be communicated to all staff and employees, and encourage them to get involved.
  • From good practice the good energy policy shall:
    1. State an objective by having a clear, measurable objective that reflects the organization’s commitment, culture and priorities. For example to achieve 10% reduction in energy consumption in three years (based on the energy assessment or energy audit results and we will take this in detail in the next articles).
    2. Establish accountability by instituting a chain-of-command, define roles in the organization, and provide the authority for personnel to implement the energy management plan.
  • Ensure continuous improvement by including provisions for evaluating and updating the policy to reflect changing needs and priorities.
  1. Promote goals by providing a context for setting performance goals by linking energy goals to overall financial and environmental goals of the organization.

Sample for Energy policy for company X :

Quotation start”


This Policy applies to all the company X operations.


The objectives of this policy are to improve energy consumption efficiency, reduce cost, optimize capital investment for energy efficiency, reduce environmental and greenhouse gas emissions, and conserve natural resources.

Policy Statement

Company X will promote the efficient use of energy to produce and deliver products and services to its customers.

Policy Guidelines

  • Improve energy efficiency continuously by establishing and implementing effective energy management programs worldwide that support manufacturing capabilities while providing a safe and comfortable work environment.
  • Achieve 12% reduction in energy consumption in 3 years, by implementing the approved energy conservation action plan
  • Emphasize energy efficiency as a factor in product development and in process and facility design.
  • Secure adequate and reliable energy supplies at the most advantageous rates and implement contingency plans to protect operations from energy supply interruptions.
  • Encourage continuous energy conservation by employees in their work and personal activities.
  • Drive further development of internal and external energy efficient and innovative technologies.
  • Cooperate with governmental agencies and utility companies on energy programs.
  • Support national energy efficiency policies.

Policy Approval by

Signature by CEO.

Quotation ends”

I hope that you find this article helpful and I will be glad to provide any required support to help you to build your energy management system.

I appreciate if you provide your comments or questions related to this subject and I will continue with step two in the next article.

It is worth to mention that I created a LinkedIn group “Proactive energy managers group ( ) for exchanging experiences and provide any support for any engineer interested to build energy management system in his plant or just interested to know more information about energy management in general.

Magdy Aly

Energy manager, Energy efficiency consultant Passionate to help others to save Energy and Environment.

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