26100 Integrating Business
Perspectives
Lecture 9
ENERGY EFFICIENCY AND THE
PLANNING AND CONTROL CYCLE
OBJECTIVE 5
OBJECTIVE 5 IS BASED ON “THE
PLANNING AND CONTROL PROCESS:
ENERGY EFFICIENCY: A STUDY NOTE”
SECTION ONE
IT IS AVAILABLE VIA UTS ONLINE IN
THE FOLDER:
Description of the Planning and Control Cycle
 Remember Lecture 1?
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External Context: Energy Efficiency
• Australia has committed to a 5% reduction on
Greenhouse gas (GHG) emissions relative to Yr 2000
levels
• Hmm, but most of our energy comes from high GHG
emissions sources
• And energy
demand is
increasing
5
Energy Efficiency Context
• Solutions?
• These are the lowest cost solutions
Source: International Energy Agency, 2011, 'World Energy Outlook ', OECD/IEA, Paris. p. 214.
6
Link with Organisation, External Context, and Stakeholders
• There are at least four common reasons given by
managers justifying investing in energy efficiency
projects:
1. Cost savings: a reduction in energy costs increases
profit.
2. Reduced environmental impact
3. Stakeholder pressure: to enhance their reputation
with customers, staff and other stakeholders
4. Carbon pricing: a reduction in energy use reduces
carbon pricing burden.
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What do organisations do to become more energy efficient?
Many organisations implement energy efficiency using a
‘Planning and Control Cycle ‘ approach, which involves
preparation of EVALUATON and PROGRESS REPORTS
Project Identification
Baseline
Performance
Measurement
Assess Project Feasibility
Detailed Planning and
Budgeting
Feedback
and
Learning
Enactment of Plan
Evaluation of Project
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PLANNING AND CONTROL CYCLE: LIGHTING EXAMPLE
Source: http://www.realhomeimprovement.net/products/aboutenergy-saving-lightbulbs
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PLANNING AND CONTROL CYCLE: LIGHTING EXAMPLE
Stage Title
One Baseline Performance
Measurement
Two Project Identification &
Feasibility
Three Planning and Budgeting
Four
Enactment
Five
Evaluation
Six
Feedback and Learning
Description
Count the number and type of light bulbs at the facility.
Estimate usage patterns
A range of energy efficient light bulbs are identified.
The lowest total cost light bulbs are identified (purchase
price, life of bulb, and energy consumption are
considered).
Managers decide who is responsible for purchasing the
new bulbs, replacing and disposing of the old ones. They
then approve the amount that can be spent on the project.
People responsible purchase the new bulbs, replace and
dispose of the old ones. The manager checks to see if the
job has been done.
The cost of the bulbs and the energy saves is compared to
the budget.
If certain brands of bulbs are found to be of poor quality,
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these can be avoided in the future.