Energy Management

Published: 23 Sep 2011

By Satish Lele, Vice President, A&E and CMF, Frost & Sullivan Asia Pacific

Energy is an important resource in the manufacturing process. The conversion of raw material into finished goods requires thermal, electrical, mechanical and fluid energy. Energy is consumed in the industrial sector by a diverse group of industries and for a wide range of activities. Demand for energy in industries varies across regions and countries all over the world, and depends on the level and mix of economic activity and technological development.

Some energy-intensive industries that use most of the energy consumed by the industrial sector include steel production, petroleum refining, chemical and cement industries.

Generally the use of energy is the second-largest variable cost in the manufacturing process after raw material costs. While it can be low for automotive and general engineering industry, it can be a very high component in the smelting of aluminum.

According to International Energy Agency (IEA), the industry sector consumed about 28 percent of the global need for energy. This increases for industrialized countries, which can be the single largest consumers of energy.

With growing costs of energy and the pressures to reduce the environmental impact of operations, the role and importance of energy management is gaining importance.

 

Importance of energy management

Energy management is an evolving market, as seen by its position in the product life cycle management curve. End users are still investing selectively and cautiously in energy management solutions.

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