Skip to main content Skip to Footer

Energy management transformation

The Singapore Energy Conservation Act will change how energy-intensive companies manage their consumption and greenhouse gas emissions.

Overview

Accenture partnered with the National Environment Agency (NEA) of Singapore to carry out a qualitative survey of 100 such companies. The survey results suggest that the energy maturity level of companies varies according to the industry sectors and level of people-centered components of energy management. Nonetheless, companies of all sizes will benefit from further embedding Enterprise Energy Management practices tailored to their level of maturity, through aligning their strategies, people, processes, leadership, governance and technologies toward a common goal of greater energy efficiency and competitiveness. The findings also offer an opportunity for the government, policy makers and regulators to provide not just incentives to support implementation of technological solutions, but also help companies build people-centric and performance management capabilities.

Watch this recorded video session from our Sustainability 24 2013 live broadcast where we launched the report alongside the CEO of National Environment Agency and discussed the topic of Total Energy Management: Transformation for Enterprise Energy Efficiency amongst our panelists. Registration is required to view the video.



Background



Enterprise Energy Management (EEM) is the practical application of energy management principles across an organisation in a sustainable way. By integrating best practices in strategy, leadership, technology, people and processes, this approach may help companies transform how energy is procured and managed, while realising superior and sustained cost and energy savings as well as improved compliance.

The Energy Conservation Act lays down the minimum energy management standards, binding on companies that consume more than 54 terajoule of energy a year. The Act requires companies to:

  • Appoint an energy manager.

  • Monitor and report energy use and greenhouse gas emissions annually.

  • Submit energy efficiency improvement plans annually.

The Accenture-NEA survey provides companies insights into the maturity of their energy management practices through a structured self-assessment process. It also informs the NEA on how future policies and initiatives can be designed to help progress Singapore’s energy management capabilities and overall sustainability agenda.



Key Findings



Using Accenture’s Enterprise Energy Management Capability Maturity Model, the survey provided a holistic approach to systematically assess an organisation’s energy management capabilities and identify potential improvement opportunities. The major findings were:

People-centred components of energy management are less mature and more varied.
Companies can generally improve people-centric and performance management related areas of energy management. Improving on these ‘softer’ elements will enable companies to realise and sustain the full benefits of energy management.

Levels of energy management maturity vary between different industry sectors.
Different levels of energy management maturity between industries, as well as significant variability within some industries, highlight the diverse nature of opportunities across Singapore’s sectors and companies.

The pattern of energy management maturity is similar irrespective of the size of the company.
The survey found a similar level of energy maturity across companies of different sizes by annual revenue, with the ‘softer’ people-centric capabilities such as rewards and incentives and roles and responsibilities representing the main areas for improvements for the companies.



Recommendations



The survey suggests that companies keep the following recommendations in mind to secure the full benefit of Enterprise Energy Management:

It is important to drive energy management in a structured and holistic manner.

Better leadership and governance is critical.

  • Comprehensive measurement underpins Enterprise Energy Management.

  • A business’s level of energy management maturity should determine the nature of interventions.

For policy makers and regulatory bodies, the survey outcomes highlight a need for support for companies to further drive integration of people-centric components of energy management, and for particular industries that are less established. The survey encourages them to:

  • Support companies in building up their energy management capabilities.

  • Facilitate sharing of energy management best practices to help drive energy transformation within particular industries.



Authors



Ynse de Boer is the managing director of Accenture’s Sustainability Services in ASEAN and is based in Singapore.Yee Chow, Sundeep Singh and Anurag Lodha from Accenture Strategy’s Sustainability practice also contributed to this study with inputs from National Environment Agency, Energy Efficiency and Conservation Department.