What Is Energy Management? How Can Businesses Improve Energy Performance?

Energy management is the practice by which a business systematically monitors and analyzes its energy consumption and carries out work to improve its energy performance continually.

In industrial plants, commercial buildings, hospitals and public buildings, the effective management of electricity, natural gas and other energy sources is important for keeping energy costs under control and using resources efficiently.

Tracking energy consumption as a quantity alone is not sufficient. Consumption needs to be assessed together with production volume, operating hours, seasonal conditions and operational activities. Only then can the reasons for changes in consumption be identified and energy performance be analyzed accurately.

How Is Energy Management Carried Out?

Effective energy management is built on regular data monitoring and technical assessment. In general terms, the process comprises the following activities.

Monitoring Energy Consumption: Consumption of electricity, natural gas and other energy sources is tracked regularly. Comparisons with previous periods are made to identify consumption trends and unusual changes.

Evaluating Energy Performance: Energy consumption is analyzed using appropriate performance indicators that reflect the business's activities. In a production facility, for example, the amount of energy consumed per unit of output (kWh/tonne) can be used to evaluate energy performance.

Identifying Efficiency Opportunities: Energy losses and areas for improvement are identified through consumption analyses, site surveys and such technical measurements as are required. Feasible measures are assessed in technical and economic terms.

Improvement and Performance Tracking: Targets and implementation plans are established for the measures identified. The results of the improvements made are monitored, and changes in energy performance are evaluated.

Through these activities, energy management goes beyond bill checking or periodic analysis and becomes a process that supports the continual development of the business.

Who Is an Energy Manager and What Do They Do?

An energy manager is a person who holds the required certificate and is responsible, on behalf of management, for carrying out energy management activities in the business.

The principal duties of an energy manager include monitoring consumption and energy costs, evaluating energy performance, identifying efficiency opportunities, following up improvement work and reporting regularly to management.

In addition, tracking legal obligations relating to energy efficiency, preparing the required notifications, and coordinating energy audits and efficiency projects are also important parts of energy management activities.

What Is the ISO 50001 Energy Management System?

ISO 50001 is an international energy management system standard that aims to enable organizations to manage their energy performance systematically and improve it continually.

The standard is founded on establishing an energy policy, reviewing energy use, identifying significant energy users, defining performance indicators and targets, planning improvement work and evaluating its results.

The core approach of ISO 50001 is to move energy management away from being an activity that depends on individuals or is carried out periodically, and to integrate it into the organization's management processes.

For Which Businesses Is Energy Management Mandatory?

In Türkiye, obligations relating to energy management are governed by Energy Efficiency Law No. 5627 and the Regulation on Increasing Efficiency in the Use of Energy Resources and Energy.

Under Article 9 of the Regulation, the principal businesses and buildings that are required to appoint an energy manager are as follows:

• Industrial Enterprises: Enterprises with a total annual energy consumption of 1,000 TOE or more.
• Commercial and Service Buildings: Buildings with a total construction area of at least 20,000 m² or a total annual energy consumption of 500 TOE or more.
• Public Buildings: Buildings with a total construction area of at least 10,000 m² or a total annual energy consumption of 250 TOE or more.

Obligations relating to energy management also apply to electricity generation facilities and organized industrial zones that meet certain conditions.

Under the Regulation, organizations that are required to appoint an energy manager or establish an energy management unit must report their energy consumption data to the Ministry of Energy and Natural Resources by the end of March each year. These notifications are made through the ENVER Portal.

In addition, for the organizations specified in the legislation, establishing and certifying a TS EN ISO 50001 Energy Management System is also mandatory.

The scope of the obligation to appoint an energy manager, establish an energy management unit and meet other requirements should be assessed according to the organization's field of activity, its energy consumption and the provisions of the applicable legislation.