**6.2. Indirect or long term benefits**

#### *6.2.1. Environmental benefits*

Greenhouse gases include carbon dioxide which is produced every time we use energy from fossil fuels - oil, coal and natural gas. With businesses producing almost half of the world's carbon emissions their impact is huge [32]. The increase in our planet's temperature has already caused sea levels to rise, making floods more frequent and severe. And as the temperature gets hotter, it's predicted that we shall see more extreme weather. It is found that the businesses are currently responsible for about half of all the world's carbon emissions. Even one small office can produce 3-5 tons of carbon dioxide (CO2) in a year. Unless they reduce their carbon emissions, businesses will start paying the price of climate change through more expensive energy supplies and higher insurance premiums [32].

#### *6.2.2. Business benefits*

90 Energy Efficiency – The Innovative Ways for Smart Energy, the Future Towards Modern Utilities

imported quality industrial equipment.

is upgradable whenever new data are available.

Some of the direct benefit can be states as follow.

d. Reduction of operation and maintenance costs

**6. Benefit of energy efficiency** 

**6.1. Direct or short term benefit** 

concerning the building

e. Improved public image

*6.2.1. Environmental benefits* 

a. Reduction of fuel and electricity bills

c. Energetic retrofitting of the buildings

**6.2. Indirect or long term benefits** 

advisory services to the public and the private sectors

projects.

e. Industries are implementing proven and cost-effective energy efficiency technology

f. Industries utilize locally manufactured equipment with comparable efficiencies to

g. The energy authorities is able to increase its capacity and capability in providing energy

A proposal by Escriva to impose seven actions of the base improvement in energy efficiency in commercial building had shown a considerable financial saving is being made. These actions include an accurate operational data measurement, a proper schedule, automatically monitored of the consumption of electricity, individual responsibility for energy use in each building, proactive action to increase energy efficiency, facilities modification to enable easier energy management and an excellent communication between user and the building managers. Even many national governments and international organization have developed new regulations, what is lacking today is the universal energy efficiency index for building. In order to address this issue Gonzalez et all [42] had proposed an energy efficiency index for buildings that relates the energy consumption within a building to reference consumption. The proposed energy index can be obtained in a simple manner by combination standard measurement, simulation and public data base; furthermore the index

The benefits resulting from the implementation of energy efficiency in management systems are numerous and can be grouped as direct and indirect. Direct benefits are the current benefits, while indirect benefits are the expected short or long term benefits. Some of the

b. Identification of energy saving opportunities and environmental compatibility

Greenhouse gases include carbon dioxide which is produced every time we use energy from fossil fuels - oil, coal and natural gas. With businesses producing almost half of the world's

direct and indirect benefits are given in the following section [30, 31].

Many companies think of energy as a fixed overhead but saving energy is actually one of the easiest ways to reduce costs and improve your standing. The following are some of the benefits from the practices discussed [41].


#### *6.2.3. Home benefits*

Home energy is responsible for carbon dioxide emissions which contribute to climate change. By following the best practice standards, new buildings and refurbished housing will be more energy efficient and will reduce these emissions. New buildings or home extensions can provide new, energy efficiency accommodations and also improved the overall efficiency of the houses that are extended [35]. For the homeowner, specifying an energy efficient extension is a cost effective approach because the additional cost will be recovered in reduced fuel costs. Payback period is less than 10 years, but fuel cost is entirely reduced for the entire life of the building.

#### *6.2.4. Transport benefits*

By running the fleet more energy efficiently the following benefits will be withdrawn.


On average, every time you use up to a 400 liter tank of fuel, you produce: "1.04 tons of carbon dioxide, 1.38 kilos of carbon monoxide, 0.67 kilo of hydrocarbon, 6.15 kilo of nitrogen oxide and 0.14 kilo of particulates" (UK Road Transport Emission Projection 1997). Bio fuel use has cut carbon dioxide emissions by 40,000 tons in the first quarter of 2006. Independently evaluated by the Edinburgh Centre for Carbon Management, the reductions were said to be the equivalent of 50,000 family vehicles taken off British roads [36].

Tools and Solution for Energy Management 93

iii. Financial – convenient mechanism of finance. iv. Managerial – training and management.

vi. Information – appropriate level of information.

follows:

benchmark.

transactions.

organizational

h. Weak local energy support service

performance and identifying wasted energy.

**8. Software tools** 

v. Pricing – proper rationalization of pricing on electricity and fuels.

In Malaysia for example there are several barriers which could hamper the smooth implementation of Industrial energy efficiency improvement project [41]. These are as

a. Limited knowledge/awareness about Energy Efficiency and Energy Conservation

b. Limited access to information on energy efficiency techniques as well as energy

c. Industries are unwilling to incur what are perceived as "high cost, high risk"

techniques/technologies in industries and the lifecycle economic benefits.

d. Industries generally focus on investments on production-related improvements.

f. Limited/not stringent regulations on energy efficient standards and implementation. g. Few or limited energy efficiency technology demonstration projects implemented.

An energy gap is a term that points to a phenomenon where a firm is not utilizing the feasibility of technically and economically viable efficiency measures. Weber [43] pointed them to its institutional, market, organizational and behavioral barriers. While Sorrel, et.al [44] grouped the barriers of energy efficiency as neo-classical (economical), behavioral and

The need for border framework to tackle barriers to energy efficiency for significant improvement has been intensified. But literature reviews reveal that there are qualitative issues on the barriers. And a creation of suitable topologies is a must to tackle them. There is currently not enough attention when considering relevant influential factors to the qualifications of the barriers levels, especially industry specific barriers related studies that are very scarcely found [44]. Various definitions of energy efficiency barriers that have been introduced by previous researchers include environmental, economical, and technology related aspects. This prevents a whole implementation of an energy efficient based practice blueprint. Governments as well as private sectors need to churn out more effort with the intention to practice energy efficient so that the longevity of a healthy world can be achieved for future generations [45]. A recent work by Escriva [46] could be an excellent approach to overcome part of the problem. This research work proposes the continuous assessment of energy efficiency in building using different energy rating factor for assessing energy

For the last four decades there have been many energy software had been developed and most of the energy tools can be run using a simple text-based input. The simple algorithms

e. Lack of financiers ready to finance energy efficiency investments.

## *6.2.5. Community benefits*

Community Action for Energy is one of the energy efficiency programs that are designed to promote and facilitate local community-based energy projects. Community action for energy can help to improve the quality of life in community by providing new opportunities to improve the comfort, health and well-being of people in community, combat fuel poverty and help the local economy. Example of community activities are community heating or cooling, ground source pump, renewable energy, solar PV, wind, and community energy project [37].

## *6.2.6. School benefits*

Energy efficiency for schools promotes energy management and efficiency for the whole school community. It encourages schools to make links between the school curriculum and the management of energy efficiency and learn about how to make a difference to climate change. Schools can save themselves money on their energy bills, reduce their carbon dioxide emissions and improve their working environment.
