Energy accounting is a system for measuring, analyzing, and reporting on the energy consumption of various activities on a regular basis. This is done to increase energy efficiency and track the environmental impact of energy consumption.
Energy accounting is a system used in energy management systems to measure and analyze energy consumption in order to improve an organization’s energy efficiency. These systems are used by companies like Intel to track energy usage.
There are numerous energy transformations that are possible. An energy balance can be used to track the flow of energy in a system. This becomes a valuable tool for determining resource consumption and environmental impacts. The amount of energy required at each point in a system, as well as the form of that energy, is measured. An accounting system keeps track of energy in, energy out, and non-useful energy versus work done, as well as system transformations. Non-productive labor is sometimes to blame for environmental issues.
Planning and operation of energy production and consumption units, as well as energy distribution and storage, are all part of energy management. The goals are resource conservation, climate protection, and cost savings, while users have continuous access to the energy they require. It is inextricably linked to environmental management, production management, logistics, and other well-established business functions. The VDI-Guideline 4602 published a definition that includes the economic aspect:
“Energy management is the proactive, organized and systematic coordination of procurement, conversion, distribution and use of energy to meet the requirements, taking into account environmental and economic objectives”. It is a systematic endeavor to optimize energy efficiency for specific political, economic, and environmental objectives through Engineering and Management techniques.
The ratio of energy delivered by an energy technology to the energy invested to set up the technology is known as the energy returned on energy invested (EROEI). A company’s long-term energy strategy should be integrated into its overall strategy. This strategy could include a goal of increasing the use of renewable energies. Furthermore, criteria for energy investment decisions, such as yield expectations, are established. Companies can avoid risks and maintain a competitive advantage over their competitors by developing an energy strategy.
Many businesses are attempting to improve their image while also protecting the environment through a proactive and public energy strategy. The strategy of General Motors (GM) is based on continuous improvement. They also have six principles, such as restoring and preserving the environment, reducing waste and pollutants, educating the public about environmental conservation, and collaborating to develop environmental laws and regulations.
In 2006, Nokia developed its first climate strategy. The strategy attempts to assess the energy consumption and greenhouse gas emissions of products and operations in order to set reduction targets. Furthermore, their environmental efforts are focused on four key areas: substance management, energy efficiency, recycling, and environmental sustainability promotion.
Volkswagen (VWenergy)’s strategy is based on environmentally friendly products and resource-efficient production, according to the “Group Strategy 2018.” Almost all of the Group’s locations are certified to the international standard ISO 14001 for environmental management systems.
When examining a company’s energy strategies, keep the topic of greenwashing in mind. This is a type of propaganda in which green strategies are used to promote the idea that an organization’s goals are environmentally friendly.