2.1 Develop an energy management policy and plan

Energy policy

An energy policy provides the foundation for successful energy management. It formalises senior management’s support for ongoing energy management and articulates the organisation’s commitment to energy efficiency for employees, shareholders, the community and other stakeholders.

It is not just the policy itself that is important—it is also the way the policy is developed, which can help to raise awareness and build support for energy management:

  • Use the policy development process as an engagement and education opportunity by involving key people.
  • Ensure that the language used in the policy is clear and relevant to staff as well as external stakeholders.
  • Use the launch (or re-launch) of the policy to raise the profile of energy management, for example by involving senior management.
  • Follow up the development of the policy with a communications program to ensure that all management and staff understand the importance of energy management and are encouraged to get involved.

An energy management policy can clarify what the energy management objectives of the organisation are and the timeframes within which they are expected to be achieved. Policies are typically clear and concise documents so that they can be easily communicated across the organisation and to external stakeholders. Energy policies are often incorporated into an environmental, greenhouse gas or climate change policy, as is demonstrated by the Centennial Coal Environment and Community Policy (Box 2). Centennial Coal has a number of coalmining operations in NSW.

Box 2: Energy efficiency incorporated into the Centennial Coal Climate Change Policy

an image showing the Centennial Coal Climate Change Policy

Source: Centennial Coal, Environment and Community Policy, http://www.centennialcoal.com.au/Environment/∼/media/Files/Environment/Centennial%20Coal%20Environment%20and%20Community%20Policy%202011.ashx (accessed April 2016).

Energy management plan

An energy management plan outlines a framework and structured set of activities to be undertaken over a given period to deliver improved energy performance. Typically such plans are developed to align with annual budgeting and reporting periods. While the structure of the plan varies from one organisation to another, the central elements outlined below are commonly incorporated into an energy management plan.

Introduction and rationale

The plan should outline the rationale for energy management and the scope of the operations that it is covering. For example, a plan developed for an individual mine site should describe:

  • the main business drivers and the expected benefits from energy management
  • any regulatory requirements that the plan will address
  • the relevant corporate and/or site energy policies
  • who has authorised the development of the plan
  • how frequently the plan will be reviewed.

Describe the main operations that are covered by the plan. For example, does the plan focus only on operational energy use or are other activities, such as transportation from mine to port, included?

Performance, goals and targets

Outline performance goals or targets, which should be updated annually. As plans are reviewed, there should be an explanation of the reasons why targets were or were not met, including factors that may have been outside the control of the operation such as severe weather and unplanned shutdowns. It may also be appropriate to develop more complex energy performance indicators, such as regression models, that indicate changes in performance based on prevailing conditions. ISO 50006 provides guidance on appropriate performance indicators for different circumstances. Footnote 4

Also ensure that any energy-efficiency measures that have been implemented are clearly described and explain the extent to which they have contributed to goals and targets.

Accountability, roles and responsibilities

Key accountabilities for energy management should be included in the plan. They might include the role of the site manager, production personnel and support staff, such as an energy, environment and sustainability champion. It is also important to include a description of the key reporting lines between a site and corporate management. Outline the make-up of an energy management team if one has been established.

Planned energy-efficiency measures and funding for the subsequent period

At the heart of an annual energy management plan is an outline of the actions that will be taken in the subsequent year, how they will be resourced and the energy savings and other benefits that they are expected to deliver.

Actions can be categorised as:

  • actions that are fully funded and scheduled for implementation
  • actions that will be taken to further investigate and refine the business case for particular projects
  • actions that will support ongoing identification, monitoring and verification of energy performance.

Also include information on any communication and training initiatives that are intended to improve understanding and awareness of the importance of energy management, together with improvements that will be made to energy measurement and reporting systems.

Budget and resources

Provide an overview of the resources allocated to energy management at the site. This may include overall spending on the energy-efficiency initiatives outlined in the previous section, as well as the time allocated to site stakeholders to drive energy management.


Footnote 4
ISO 50006:2014, Energy management systems—Measuring energy performance using energy baselines and energy performance indicators—General principles and guidance.

Return to footnote 4 referrer

Share this Page