How to enhance the security of your energy supply
As the global economy recovers from the COVID-19 pandemic, the demand for energy is rising. But the world is in the midst of a new period of scarcity. Supply cannot meet demand, and the ramifications are significant: from Lebanon to China and across the globe, countries are experiencing frequent and prolonged power outages; meanwhile, liquefied natural gas (LNG) shortages in Nigeria have left households and businesses cooking with firewood or charcoal; and citizens in Europe are facing all-time-high bills as gas prices surged by almost 600% in 2021.
Qatar, the world’s biggest seller of LNG, has said that it has no further supply to support demand. Meanwhile, worker shortages, maintenance backlogs, and cash flow issues have delayed important repairs to pipelines. Preparation for future crises is essential.
Tackling future issues, today
Businesses, particularly those in energy intensive industries, were hard hit by the rising wholesale gas prices. Exposure to price volatility and demand spikes left them vulnerable and unable to adequately plan ahead. Production in some firms is at risk of being halted. Others have made the decision to stop production until prices stabilize, while others have collapsed entirely.
Several factors exacerbated this year’s crisis, pushing energy prices higher than ever. Limited regional gas stockpiling and international tensions increased importation competition and dependence. Then, extreme weather events – heat waves and uncharacteristically cold winters – put pressure on an already strained system. And supply chain disruption because of the pandemic made responding to demand challenging and expensive.
However, this was not unprecedented. And it won’t be the last energy crisis the world faces. To anticipate and respond to future crises, businesses need to first identify where they are using energy. Then, they need to focus on ways to reduce their energy consumption, and to use it more efficiently as part of a balanced portfolio approach. Indeed, the most cost-effective energy is that which is never consumed.
A systematic approach to drive down energy use and costs
An Energy Management System (EnMS) is a framework for systematic energy management that helps a business see where it is consuming energy before putting in place actions to reduce it. An Energy Management System starts with establishing a baseline that can be used to drive performance improvements. The business carries out an energy review to identify areas of significant energy use. Based on that analysis, it defines reduction targets, together with performance indicators and processes to achieve them. A comprehensive EnMS can help future-proof businesses by increasing their energy efficiency, reducing costs, and conserving valuable resources.
ISO 50001, the global standard for energy management, follows the ISO risk-based approach. By encouraging risk-based thinking, the results are threefold: awareness and communication are improved, energy efficiency practices are integrated into all areas of the organization, and business performance is optimized.
Driving continual improvement
Certification to the ISO 50001 standard by Bureau Veritas can help you establish an energy strategy and management system that can lead to lower energy use and higher savings. Used as part of a comprehensive energy portfolio approach, it can help you lower your costs.
Our certification services provide a competitive advantage. Our skilled auditors have international and local expertise in a range of areas, including a variety of industries and regulations. Certifying to ISO 50001 demonstrates your commitment to continual improvement, while reducing energy consumption and building resilience.
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