Energy metering and management practices of manufacturing companies - - PowerPoint PPT Presentation
Energy metering and management practices of manufacturing companies A systematic literature review Department of Economics and Management, Chair of Management Accounting Ana Mickovic Vienna, 15th IAEE European Conference 2017 KIT University
KIT – University of the State of Baden-Wuerttemberg and National Research Center of the Helmholtz Association
Department of Economics and Management, Chair of Management Accounting
www.kit.edu
Energy metering and management practices of manufacturing companies
A systematic literature review
Ana Mickovic Vienna, 15th IAEE European Conference 2017
Department of Economics and Management (IBU) 2 06.09.2017
Overview
Ana Mickovic
Introduction Research method Results Discussion Conclusion
Department of Economics and Management (IBU) 3 06.09.2017
Motivation (bigger picture)
Ana Mickovic
Focus
energy management
Objective To know under which conditions even coarse methods already provide quite accurate information on energy costs, and under which other conditions more refined methods provide significantly more accurate information. Example
pattern doesn’t capture price variation of energy during the day
Department of Economics and Management (IBU) 4 06.09.2017
Introduction of today’s paper
Energy measurement and management practices in manufacturing companies with emphasis on empirical data on a company level Energy intensity: energy intensive and non-energy intensive companies Size of company: large companies and small and medium sized enterprises (SMEs) What does it mean to have correct information about energy consumption for a company? Errors in costing systems may cause distortions in decision making It provides necessary information for energy management, such as information needed for improving energy efficiency, evaluating the financial benefits and costs of energy efficiency improvement investments, and holding managers accountable for energy efficiency.
Ana Mickovic
Department of Economics and Management (IBU) 5 06.09.2017
Research questions
1. How are companies measuring energy costs and what are their energy management practices? 2. What are the other common characteristics of these companies? 3. How are companies allocating energy costs? 4. What are energy strategies of companies in selected papers?
Ana Mickovic
Included:
Excluded:
Department of Economics and Management (IBU) 6 06.09.2017
Overview
Ana Mickovic
Introduction Research method Results Discussion Conclusion
Department of Economics and Management (IBU) 7 06.09.2017
45 empirical papers
The research approach
Systematic literature analysis* Search terms included “energy measur*”, “energy management” and “energy metering” in the title, and term “industry” in the title, abstract or keywords of a paper Scopus database + Google Scholar Backward and forward citation analysis Further search with journals and names of authors 19 journals in the field of management accounting and energy
Ana Mickovic
* following Tranfield, Denyer, and Smart (2003)
Department of Economics and Management (IBU) 8 06.09.2017
Overview
Ana Mickovic
Introduction Research method Results Discussion Conclusion
Department of Economics and Management (IBU) 9 06.09.2017
Results
Distribution of the studies by the company size Energy intensity levels
Ana Mickovic
5 10 15 20 25 30 SME Large Diverse Not specified 5 10 15 20 25 30 35 EI NEI Both Not specified
53% large companies 10% small and medium sized enterprises (SMEs) 73.3% energy intensive companies 17.8% non-energy intensive companies
Department of Economics and Management (IBU) 10 06.09.2017
Results
Energy metering
Non-energy intensive companies mostly meter energy only on facility level and use utility invoices Energy intensive companies often use sub-metering on department or production level
Allocation of energy costs
Sub-metering, per product, department, meter square or per number of employees 13.3% address allocation of energy costs to departments at all Split incentive problem Only one paper addresses second stage allocation
Energy strategy
Far less non-energy intensive companies have clearly formulated and long term energy strategies then energy intensive companies
Ana Mickovic
Department of Economics and Management (IBU) 11 06.09.2017
Results
Investment criteria
Strict investment criteria and short payback times are often applied in large companies In medium sized enterprises the investment criteria is less formalized
Energy audit
While many energy intensive companies conduct energy audits, in non-energy intensive companies it is not so widely used In the few examples of non-energy intensive companies doing energy audit, we can see that the results in terms of savings are notable
Ana Mickovic
Department of Economics and Management (IBU) 12 06.09.2017
To sum up
Ana Mickovic
Focus: 73.3% of the papers focus on metering and energy management practices in energy intensive companies. Only 17.8% of the papers focus on non-energy intensive companies. Allocation: 13.3% of the papers reviewed address allocation of energy costs to departments. Only one paper addresses second stage allocation. Characteristics: Non-energy intensive companies monitor and measure energy usage to a small extent. Energy intensive companies do it precisely and in much more detail. Strategy: Far less non-energy intensive companies have clearly formulated and long term energy strategies then energy intensive companies.
Department of Economics and Management (IBU) 13 06.09.2017
Overview
Ana Mickovic
Introduction Research method Results Discussion Conclusion
Department of Economics and Management (IBU) 14 06.09.2017
Discussion
Is it worth investing in energy metering and energy efficiency improvements in non-energy intensive companies? Non-energy intensive companies monitor and measure energy usage to a small extent, and even when the energy audits are made, they rarely lead to investments in energy conservations, because it is considered to be more profitable to do nothing. Why don’t they pay more attention to energy efficiency? They don’t have a dedicated person for energy issues, small energy saving potential or underestimating potential, they perceive energy as part of overhead costs that cannot be managed, etc. Split incentive problem - department managers could be less motivated to save energy if department’s costs are allocated based on imprecise measures (as per square meter or per number of employees), instead on actual energy consumption.
Ana Mickovic
Department of Economics and Management (IBU) 15 06.09.2017
Overview
Ana Mickovic
Introduction Research method Results Discussion Conclusion
Department of Economics and Management (IBU) 16 06.09.2017
Conclusion
Under-researched area Room for more detailed case studies Literature focuses on energy intensive and large companies Measurement methods vary from inefficient measurement methods to detailed sub-metering in real time Cost saving potential is left unexploited
Ana Mickovic
Department of Economics and Management (IBU) 17 06.09.2017
What do you think of it?
Ana Mickovic
Department of Economics and Management (IBU) 18 06.09.2017
Ana Mickovic
Department of Economics and Management (IBU) 19 06.09.2017
Keywords
With manufacturing 636 papers = 580 articles + 56 reviews ( ( TITLE ( energy measur* ) OR TITLE ( energy management ) OR TITLE ( energy metering ) AND (TITLE-ABS-KEY ( industry ) OR TITLE-ABS-KEY (manufacturing)) ) AND DOCTYPE ( ar OR re ) AND PUBYEAR > 1994 ) AND ( LIMIT-TO ( LANGUAGE,"English " ) ) Without manufacturing 565 papers = 511 articles + 54 reviews ( ( TITLE ( energy measur* ) OR TITLE ( energy management ) OR TITLE ( energy metering ) AND TITLE-ABS-KEY ( industry ) ) AND DOCTYPE ( ar OR re ) AND PUBYEAR > 1994 ) AND ( LIMIT-TO ( LANGUAGE , "English" ) )
Ana Mickovic
Department of Economics and Management (IBU) 20 06.09.2017
List of journals
Journal Applied Energy 7 Applied Thermal Engineering 1 Chemical Engineering and Processing: Process Intensification 1 Energy 5 Energy Conversion and Management 2 Energy Efficiency 2 Energy Engineering 2 Energy Policy 2 Energy Procedia 2 International Energy Journal 1 International Journal of Energy Research 1 International Journal of Scientific & Technology Research 1 Journal of Cleaner Production 10 Journal of Environmental Economics and Management 1 Management Accounting Research 1 Procedia CIRP 1 Production and Operations Management 1 Strategic Planning for Energy and the Environment 3 Sustainable Energy Technologies and Assessments 1 Sum 45
Ana Mickovic
Department of Economics and Management (IBU) 21 06.09.2017
Year of publication
Ana Mickovic
1 1 1 2 2 2 2 1 3 5 12 8 4 1 2 4 6 8 10 12 14 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Department of Economics and Management (IBU) 22 06.09.2017
Distribution of the studies by the company size
Ana Mickovic
5 10 15 20 25 30 SME Large Diverse Not specified
Department of Economics and Management (IBU) 23 06.09.2017
Research method
Ana Mickovic
5 10 15 20 25 30 Case study In-depth interviews Interviews Interviews, questionnaires Multiple case studies Questionnaires Survey
Department of Economics and Management (IBU) 24 06.09.2017
Energy intensity levels
Ana Mickovic
5 10 15 20 25 30 35 EI NEI Both Not specified
Department of Economics and Management (IBU) 25 06.09.2017
Industry sector focus
Ana Mickovic
1 2 3 4 5 6 7 8 Automotive industry Biomedical manufacturing facility Cement industry Ceramic industry Chemical industry Multiple Food industry Glass industry Iron and steel industry Manufacturing industry Petrochemical industry Pharmaceutical Pulp and paper industry Textile industry