Kyoto Protocol

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      While there are a number of factors influencing the attitudes and opinions towards energy efficiency, most notably the increasing cost of energy and a rising social conscience, it is likely to be legislative drivers that have the greatest impact on changing behaviours and practices. Respective governments internationally are introducing energy saving targets and effecting regulations to ensure they are met. Under the Kyoto Protocol, industrialized countries have agreed to reduce their collective emissions of greenhouse gases by 5.2% by 2008-2012, however, compared to the emissions levels expected by 2012 prior to the Protocol, this limitation represents a 29% cut. The target in Europe is an 8% reduction overall with a target for CO2 emissions to fall by 20% by 2020 and up to 50% of CO2 emissions of residential and commercial buildings are from electricity consumption. Moreover, as domestic appliances, computers and entertainment systems grow; other equipment such as air conditioning and ventilation systems increase in use, electricity consumption is rising at a higher rate than other energy usage. The ability to meet targets by simply persuading people to act differently or deploy new energy saving or energy efficient technology is unlikely to succeed. Just considering construction and the built environment, new construction is far less than 2% of existing stock. If newly constructed buildings perform exactly as existing stock the result by 2020 will be an increase in electricity consumption of 22%. On the other hand, if all new construction has energy consumption of 50% less than existing stock, the result is still an increase of 18%. By 2020 in most countries 80% of all buildings will have already been built, the refurbishment of existing building stock and improving energy management is vital in meeting emission reduction targets are the only potential for further savings is by reducing the amount of energy consumed. The most important ingredient however, lies with the ability of those in control of residential, industry, business and government to concentrate their hearts and minds on making energy efficiency a critical target. Otherwise, it might not be just the Kyoto targets on which the lights go out.

Chapter 1 - Introduction


      Nowadays, we can obtain energy easily in our daily life. We can enjoy the air-conditioning system, lighting, fuel, and different kinds of electrical appliances, etc, all of which have enhanced our quality of life. It seems there is no immediate risk in terms of energy. But we all heard about the word - “Energy management”. So why do we need “Energy management”?

Most of the energy production all over the world relies mainly on the burning of fossil fuels such as coal, oil and natural gas. The burning of fossil fuels actually gives our earth a lot of negative impacts. A large amount of carbon dioxide and other pollutants will be generated during the burning process. Some of these gases are greenhouse gases and will contribute to the global warming effect. Even worse, some of them are actually harmful and impact our health. Besides the side effect, the limited recourse of fuels is also another potential risk. Studies show that the world energy consumption has risen 45% since 1980 and it is projected to be 70% higher by 2030 and in terms of CO2 emission, it is 33% up of since industrial revolution, rising faster than ever.

Although we can help our planet by turning off the lights or electric devices, this only represents for a very small proportion of energy. In fact, industry and building, account for more than half of today's energy consumption.

      Therefore applying energy management would be the quickest, cheapest and cleanest way to reduce energy consumption and greenhouse gas emission in order to meet the Kyoto targets.

The Energy Dilemma

Below is the study from different parties trying to point out the energy dilemma:>/p>

  1. By 2050, energy demand will double and world population will increase 46% (Source -
  2. By 2050, CO2 emissions must be reduced by 50% to limit temperature rise to 2°C (Source - UNFCC Fact sheet: climate change science)
  3. 70% of electricity is generated via coal or hydrocarbons (Source -
  4. The renewable share of total world energy usage increases from 7% in 2004 to 8% in 2030 (Source -
  5. Greenhouse gas emissions has increased by 70% just between 1970 and 2004 (Source - IPCC, 2007: Climate Change 2007)
  6. Emerging markets represents 75% of new energy demand (Source - IEA)
  7. Lighting consumes 19% of electricity in the world (Source - IEA)
  8. The buildings in which we work, shop, play and educate our children use about US$200 billion worth of electricity and natural gas each year (Source: Energy Information Administration. “2003 CBECS Detailed Tables. Table C4A. Expenditures for Sum of Major Fuels for All Buildings, 2003.” December 2006. 1 June 2007)
  9. Commercial and industrial buildings in the U.S contribute 45% of our natural emissions of greenhouse gases (Source: Inventory of U.S. Greenhouse Gas and Sinks: 1990-2005. "USEPA #430-R-07-002)
  10. Over the next 25 years, greenhouse gas emissions from buildings are projected to grow faster than any other sector, with emissions from commercial buildings leading the way - a projected 1.8% a year through 2030 (Source: U.S. Green Building Council)

Energy challenges and opportunities are everywhere

Energy Future, What is in Our future?

      Our planet required 50% reduction of greenhouse gas emissions to stabilize the greenhouse effect by 2050, but with today's technology only 30% possible savings that could reduce emissions or electrify the rest of the non-electrified world.

      The reasons why the pressure on energy use will not go away because emerging markets such as China and India accounted for more than 75% of new demand placing new pressures on global resources. Meanwhile, mature markets such as US, Europe and Japan will also face increased demand and limited resources. These mature markets will continue legislating to reduce consumption, shift to alternative energy sources, and improve energy security.

      On the other hand, increase of resources competition and political instability cause oil and natural gas prices to grow above current levels for the foreseeable future. Therefore coal will continue to be a cheap and plentiful resource especially in emerging markets. This will maintain pressure on reducing emissions and sustain the need for global climate change actions.

      More than ever, global warming is at the top of the human concern. Environmental concerns and public opinion on climate change will drive continued actions by legislators, opinion leaders, and special interest groups forcing industry to respond.

      According to US federal figures, Coal consumption continues to grow, energy cost rose 31% from 2003 to 2005 and there is no indication that these costs will fall in the future. The US Department of Energy foresees 30% sustained increases in the cost of electricity. The impact of high energy prices is felt in every residential building, but only minorities of building owners have made any attempt to improve the efficiency of their facilities. It is important for human being to learn to adapt and manage energy consumption, energy costs, and pollutants.

Prepare and understand what is achievable through Energy MANAGEMENT

      The avoid of construct 1000 new power plants can save 30% energy in 2020 actually, we can all adapt to the new energy world, energy use reduction and management will be a continued focus of all of us, the followings are the key focus of our energy future:

  1. Limiting final energy consumption in all areas
  2. Measuring and tracking energy use to establish benchmarks and targets
  3. Promoting alternative green energy sources and technologies
  4. Opening markets to promote emissions trading and demand reduction

Opportunities of saving energy

      In fact, 30% energy savings in a building can reduce overall operating cost by 10%. For examples cutting energy use by 30% would result the same bottom line benefits as a 3% increase in rental income in a building or a 5% increase in net operating income. In hospitals reducing energy costs by 5% would increase earnings. In non-profit healthcare centre, $1 savings in energy would equal to $20 in new profits. In supermarkets reducing energy costs by 10% would increase profit margins by 6%. In hotels reducing energy costs 10% equates to an increase of $1.35 in average daily usage.

      In industry, experience proof that, non-energy benefits often exceed the value of the energy savings on energy efficiency projects; also there has a positive relationship between energy efficiency and productivity. In order to understand the impact and opportunity in saving our planet, energy management is the quickest, cheapest, cleanest way to extend our world's energy supplies.

The below data pointed out the impact and opportunity in saving energy in different sectors:


  1. Over 20% of energy consumption
  2. Using energy efficient products may save 10% to 40% electricity


  1. Over 30% of energy consumption
  2. Motors account for 60% of the electricity usage
  3. Average facility can reduce its energy consumption by 10 to 20%


  1. Over 20% of consumed energy and goring
  2. 3 key areas: HVAC, lighting and integrated building solutions
  3. Technical projects can yield up to 30% of energy savings

The fact is residential and industry offers the largest and most accessible opportunities for savings.

Energy consumption by markets

(Source: EERE Building Energy Data book 2006 & EERE Manufacturing Systems Footprint)

Residential: 21%

  1. Energy Efficiency products may save 10 to 40% in electricity
  2. Lighting and appliances represent 40% of energy usage. Heating represents 30%

Commercial Building: 18%

  1. Renovation can yield up to 30% of energy savings
  2. Motors represent 30% of electricity usage
  3. Commercial buildings use more than 50% of their energy for heating and lighting

Industry & Infrastructure: 31%

  1. Average facility can reduce consumption by 10 to 20%
  2. Motors represent 60% of electricity usage

Data centres: 2%

  1. Power and cooling can reduce power consumption by 20 to 30%
  2. Power and cooling systems represents 50% of electricity usage

Temperature and Lighting control are the main domains for the energy efficiency value. The following table shows the average breakdown of energy consumption of residential building and Office building. We can see that, the main sources of consumption are temperature control and lighting.

Major OBJECTIVE applying energy management in residential building DEDIGN AND MAINTENANCE

      Apply energy management in residential building to reduce energy consumption, mainly in lighting and temperature control. Temperature and lighting control are the most energy consuming functions at home; today's technology can already provide a large set of solutions to reduce drastically the energy consumption. Moreover applying energy management can maximize energy savings while keeping comfort, safety and security at home. These solutions are scalable and flexible enough to be used in new constructions as well as for retrofit, renovation or extension of existing applications.

The major objective applying lighting control is:

  1. Reduce needless lighting time;
  2. Proper management of lighting level according to outside brightness;
  3. Optimized the lighting level in different parts of the house according to the level of activity;
  4. Increase comfort by energy saving;
  5. To control and visualize the energy savings.

The objective for applying temperature control is:

  1. Reduce needless heating or cooling time;
  2. Proper management of temperature level according to the outside temperature;
  3. Optimized temperature level of different activity;
  4. Increase comfort by energy savings;
  5. To control and visualize the energy savings.

      Nowadays, there are many products helping us in terms of saving energy, for example dimmers, timers, movement detectors, switches. The technology is to consider energy efficiency in all its coming solutions for residential, using gateways and network integrated systems will allow more sophisticated energy management as well as support for added value services for the end user, also, extended communication capabilities, advanced control and remote access will allow fine tuning energy management at home.

      The combination of HVAC and lighting used more than 70 % of energy in many buildings. Therefore, building implementation, from design to commissioning, should be carried out in a way that achieves optimum energy saving results.

      Nowadays, people are starting concerning energy efficiency and always being the highest priority at all means. However, not all people understand what energy efficiency really involves and how energy saving initiatives can be implemented. For this reason, in this report, two approaches to energy efficiency have defined: Passive Energy Efficiency; and more significantly Active Energy Efficiency.

      Many people may consider the thermal issues in the building fabric with remedies such as insulation, glazing, and heat loss countermeasures are the major energy measures. However, lighting should be the clue which often constrained to install with low consumption system. The entire above are actually the passive countermeasures that largely reduce energy loss rather than the energy deployed.

      Instead of passively prevented, it would be much better for find active energy efficiency methodology. That means, not only energy saving devices and equipment are needed to be installed, but also controlling their energy required and applied. By controlling, it is critical to achieving the maximum efficiency. Just take an example for better illustration, consider an energy efficient lamp which is left turned on in an empty room. The energy waste actually as much as using an ordinary lamp!

      Another important factor that makes active energy efficiency from this point forward is the need to meet desires carbon reduction targets set by those governments in alliance with the Kyoto Protocol. In the built environment, unless all the existing buildings are made energy efficient, otherwise, it is impossible to reach the targets set for 2020.

      This report will looks at the approaches to Active energy efficiency that can be applied within new and existing residential buildings.

Chapter 2 - Literature Review

      Due to natural efficiency of most power plants as well as losses in transmission and distribution in electricity network, 1kWh of usage in a building actually requires 3kWh of production; therefore, each energy unit saved in the building could save 3 times as many at production level.

      Just simply changes procedural and behavioural. And by understanding where and how energy used could contribute up to 10% savings without any capital investment,

Energy efficiency and Energy Management

Energy Efficiency is the ratio between the useful output of an energy conversion machine and the input, in energy terms. The useful output may be electric power, mechanical work, or heat. Thus the calculation depends on the model, e.g. Heat can be either useful power output if we measure a heater while it can be a loss if we measure a motor.

      Energy Management is a strategy to achieve organizational objectives at minimum energy consumption and cost. The key principles of energy management are:

  • Purchase energy at the lowest available price
  • Manage energy consumption at peak efficiency
  • Utilize the most appropriate technology

      Measuring the energy efficiency is one of the most important steps for energy management. Besides, technical knowledge on building energy systems, analytical techniques for assessing energy use, financial management methods for evaluating energy efficiency investment, and “social marketing” skills for building organizational commitment are all the essentials at working on the energy management.

      While, to be honest, working on only energy management can't save our world forever. The fuel will be finally used up and thus we need to look for new energy resources, e.g. solar energy, waste energy.

Where to focus?

      Up to 12% of energy lost per year without monitoring and maintenance. So we must identify potential actions to improve and control energy efficiency. By analysing energy consumption, we can expose in excess of 30% energy savings potential.

Actually, we can focus on the demand side energy actions in 3 areas:

Reduction of Energy Consumption:

  1. All types of energy in all aspects of your operations
  2. Actions leading to cost savings and emissions reduction

Optimization of Energy Cost:

  1. Reduction through strategies that optimize or reduce the cost of acquiring energy or managing energy supply

Improvement of Reliability and Availability:

  1. Sustaining gains though reliable and efficient equipment operation
  2. Minimizing risk of outage through design and strategy

From above data, when applying efficient devices, automation and control system, monitoring and maintenance, the energy consumption can be reduced from 10 to 30%. Actually, keep up an energy management program only cost around 1 to 2% of total energy costs. But if without monitor, control, maintain and improvement programs up to 12% of energy savings would lost.

Enabling Energy saving

      Technology today can save about 30% of the Energy. The solutions can be applied along the whole energy chain easily which can enable and sustain energy efficiency at about 10 to 30%. While, of course, technology is the key to achieve energy efficiency and energy smart innovations would continue to have significant impact on enabling energy and emissions reduction.

      Also, to apply technologies in practical and economically ways for saving energy, information, expertise and knowledge are crucial. Besides, human behavioural and procedural actions would help facilitating the ability initiate and to sustain all savings.

How can we optimize energy consumption and spending?

      Analyzing energy consumption and cost allocation is the first key step to achieve energy reduction. Analyze energy consumption means to analyze the usage and understand all relevant utilities including Water, Air, Gas, Electricity, and Steam. Building owners can allocate cost more accountable for energy costs based on sub-billing reports and subsequent actions can further reduce overall energy usage by 8 to 10%.

      Another priority for energy saving is to minimize risk and maximize value through secure stable electricity contracts. Energy tariff optimization system can help utilizing the overall. Building owners can optimize the energy cost and maximize energy savings if they can gain with the strategy mentioned in this study which is able to fully leverage the best available tariffs.

    Area possible to apply energy management:

  • HVAC, Ventilation, Fan control, Lighting control and management
  • Pump, compressor control, Motor control and management
  • Power management and critical power solutions
  • Facility management and process optimization
  • Energy Information services, Audits and Assessments
  • Energy services

Enabling technology for energy MANAGEMENT:

  • Metering, Monitoring and Control, Automation and Sensors
  • Drives and motor control
  • Lighting control systems
  • Building automation systems and Electrical distribution
  • Power Factor Correction and Power Filtering
  • Uninterruptible Power Systems
  • Information Systems and Management Tool

Energy use analysis and tariff optimization with power management systems:

Power metering:

      Power metering can provide the field worker with the initial understanding of the electrical flow in a network. This meter would generate information on electricity consumption in subsystems and real-time power factor information. This first analysis capability improves knowledge of energy use, saves money through improved efficiency and allocation, and helps to avoid peak demand penalties.

Power monitoring and analysis system:

      Power monitoring and analysis system provides accurate information on electric flows to the field's users. This kind of system often embeds advanced functions to log and sort events on the electrical network. The data screens and reports provide a means to encourage and drive behaviour towards efficient energy usage through identifying usage patterns and allocating costs according to cost centre, production unit, shift, etc. in a facility.

Enterprise energy management:

Enterprise energy management system is a complete enterprise-level, energy focused business intelligence software solution. Even in enterprises with multiple sites and complex energy data, this kind of system provides the tools to quantify the cost of energy.

How to improve electrical network performance and upgrade energy efficiency?

Power Factor Correction:

      Some countries have specific policies for billing for reactive energy. Price penalties are applied if the active power or clear power ratio is not within the guidelines. Since, every electric machine needs active and reactive power to operate. Power factor measurement can identifies the level of reactive power and optimizes it to minimize cost and avoid penalties. The power factor correction bank would modify the level to avoid penalties if the power factor drops below the limit set by the utility (example in France: 0,92). By correcting poor power factor, these solutions also reduce kVA demand results in a 5 to 10%, lower utility power bill, cooler equipment operation and longer equipment life. In addition, proper power factor correction helps optimize electrical network loading and improves reliability.

Harmonic Filtering:

      Harmonics would stress the electrical network and potentially damage equipment. Equipment likes drives, filters, inverters, transformers and discharge lamps generate voltage distortion or harmonics. These harmonics would make stress to the network, overload cables and transformers, cause damage and disturb equipment such as computers and telephones and greatly reduced the life of equipment. Harmonic filtering equipments is to reduce and eliminate the harmonics. They increase the service life of equipment up to 32% for single phase machines, 18% for three phase machines and 5% for transformers.

How to make savings on Ventilation and Air Conditioning?

      Ventilation and Air Conditioning can consume over 40% of energy consumption in many buildings and facilities. Improved control and management of ventilation, temperature, and system usage will reduce energy consumption and sustain it at the optimal level.

      From simple stand-alone control products up to building management systems, HVAC solutions can save up to 30% of the energy consumption. For fan ventilation applications, solutions based on drives can save up to 50% in energy consumption compared to conventional motor starter and flow regulation installations.

Stand alone temperature and energy control with thermostats and load shedding contactors:

      Based on a load shedding strategy, thermostats and simple contactors are used to optimize energy consumption and to shed load at peak demand. This would help to lowers energy bills, reduces peak demand charges and prevents unexpected tripping of loads. This solution can be applied in the residential area to manage air conditioning systems and electrical appliances and in the commercial building to manage lighting, heating and other small industrial processes.

Enclosed drive for variable torque applications:

      This is designed for HVAC pump and fan applications, these application are cost effective and energy saving. The enclosed drive are preassembled, prewired and pre-programmed, this makes great reduce on installation time.

HVAC control system with centralized management:

      This is an open, scalable control platform which could communicate with the main building management system for advanced air treatment control. By using standard communications couple drives, controls and graphic user interface to fully manage the HVAC systems from a central control station.

Small stand-alone HVAC Control solution:

      This is an IP-based building management controller combined with building control, web functional, alarm handling and graphics. As a stand-alone solution the controller is for smaller installations where cost and simplicity matters.

HVAC management system:

      HVAC management systems able to provide complete control of heating, ventilation and air conditioning; it is based on open, IT-friendly standards and includes management software, a complete range of controllers, communication devices and field devices. The system enables a centralized management of alarms, temperature setting, scheduling, data logging, graphs and reporting. User can monitor and control one or several buildings both on-site or remotely through multiple devices. The benefits are energy savings, more efficient facility operations and an optimal indoor environment.

How to make saving on lighting control?

      In a building lighting can contribute over 35% of energy consumption, therefore, lighting control would be one of the easiest ways to save energy costs and one of the most common applications. Comparing with traditional lighting switches, lighting control solutions can save up to 50% on the electricity bill, also, lighting systems are always flexible and designed for the comfort to users. The solutions can range from very small and local, such as timers and occupancy sensors, up to complicate customized and centralized solutions that are part of complete building automation systems.

Movement Sensor for automated lighting:

      Movement sensor can ensures automatic control of lighting according to presence and light levels from 90? up to 360?. This solution provides energy savings up to 16%. Because no light switch required, lighting is not switched on when not needed but a switch to override the sensor can be provided for optional. It is easy to install and thoughtful.

Lighting control system with sensors and a user interface:

      Lighting control solutions would able to combine controls, sensors and user interfaces to deliver energy savings and meet customized needs of the broad range of applications. Up to 65% energy can be save up with occupancy sensors, up to 40% via daylight dimming, up to 13% via lumen control and up to 35% with time scheduling.

Automate public lighting according to sunrise and sunset:

      Using a programmable light sensitive switch would allow automatic on and off of lighting according to sunrise and sunset times Up to 8% to 16% potential energy savings compare with traditional timer based solutions and it would increases the reliability of public lighting operation. It's more reliable than a brightness detector since it is not affected by dirt and is easier to install and maintain.

How can a residential building manage and maintenance energy usage more efficiently?

      Based on open and scalable systems, an integrated building management solution allow monitoring and control of all building systems including HVAC, lighting, access control, security and other special systems. Complete building solutions would provide significant operation and maintenance benefits during the life cycle of a building. Also, by combining those multiple systems up to 35% reduction in overall energy usage would provide.

By controlling all building functions such as mechanical and electrical equipment for ventilation, air conditioning, lighting, shutters/blinds, power distribution, etc; access control, CCTV, etc. for security, building automation and control systems design would contribute to equipment availability and energy savings as they can control

      Engineering maintenance enable the equipment to get the best energy performance throughout the equipment's entire life cycle. This makes user to get the best possible energy ratings for the buildings. On site monitoring and alarm handling can assure the very best efficiency in building operations. Keep the value of a building at a strategic level via regular adjustment and optimization of systems. Regular maintenance and exchange of spare parts according to plan maintenance schedules can save up to 2-8% of energy consumption. Therefore this combination design and approach will be further discussed in the report.