Energy Management

Logical use of energy and planning for energy efficiency are of special significance. Adoption of Note 19 and its associated executive bylaw in the 2nd Five-Year Economic Development Plan, enacted in 1994, constitute the first step towards energy efficiency program.

Later on, Article 121 of the 3rd Economic Development Plan, Article 20 of Law on 4th Economic Development Plan and its associated bylaw upgraded the trend of energy efficiency activities in energy audit and standard formulation.  

Technical energy audit grew in Iran’s industrial units in 2000 and in recent years, increased energy costs and implementation of subsidy reform bill has encouraged industrial units to establish an energy management division.

In Article 24 of Law on Energy Consumption Pattern Reforms, known as the most comprehensive law on energy efficiency in the country, all industrial users with electricity demand over 1MW or annual fuel consumption of over 5 mcm of natural gas equivalent are required to set up an energy management division at their organization.

Article 54 of this Law focuses specifically on power plants, refineries and petrochemical plants, requiring them to set up energy management sections.

After the release of ISO 50001:2011 as the international energy management standard and in light of successful domestic and international experiences, establishment of an energy management system would be instrumental in overcoming challenges of energy efficiency, reducing energy and environmental costs in Petroleum Ministry subsidiaries. In other words, one of the most effective tools for modifying energy consumption and identifying opportunities for better performance would be to set up an energy management system.  

Improving the energy performance would reduce the energy intensity and have environmental advantages, not to mention upgrade energy security, which has reduced energy imports by many nations over recent years.

In general, the objective sought in the establishment of energy management system is to empower organizations to set up systems and go through necessary procedures to keep a constant tab on the energy performance of organization and implementing it based on optimizing the energy consumption strategy, reducing costs, reducing greenhouse gas emissions and carbon footprint as well as upgrading the status and competitive advantage of organization with a view to obtaining international certificates.

A correct establishment of energy management system, either based on legal obligations by governments or through intra-organizational strategy, would be instrumental in identifying the energy performance and existing potential in the organization. That would save energy and costs.

The issue of energy in Iran is highly strategic. Therefore, the Minister of Petroleum issued a directive in 2015, instructing all associated companies and organs to set up energy management and audit divisions. In doing so, the Minister fulfilled his obligation for energy management and saving within the Ministry.

The energy management process goes through controlling the energy consumption, investment in energy saving and maintaining control on the energy consumption. Reducing financial costs in consuming energy products, enhancing energy productivity, reforming the consumption pattern, developing new solutions for energy efficiency and compatibility with the environment and protecting the environment, energy resources and national assets are among advantages of implementation of energy management system based on ISO 50001.

The National Award for Energy Management was planned to create a way to help companies willing to proceed in compliance with their social responsibility at a higher levels than minimum requirements. To that end, the Industrial Management Organization has sought the cooperation of major legislative bodies in the energy sector – Energy Sector Technology Development Committee of Office of Vice President for Science and Technology, Iran Fuel Conservation Organization, Electric Energy Production and Renewable Energies Organization, and Iran National Standards Organization – in setting up the National Award for Energy Management to be recognized as the reference for assessing energy management in the country.

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