Evaluating current energy management strategy : case study of an automotive manufacturer in the Eastern Cape

• Main Author: Mahlati, Andile
• Format: Others
• Language: English
• Published: Nelson Mandela Metropolitan University 2012
• Subjects: Power resources > South Africa > Eastern Cape – Management; Power resources > Economic aspects > South Africa > Eastern Cape; Fossil fuels > South Africa > Eastern Cape; Greenhouse gases > South Africa > Eastern Cape
• Online Access: http://hdl.handle.net/10948/d1017152

Historically, the most frequently used energy sources have been those nearest and easiest to consume. Unfortunately, society’s reliance on fossil fuel for power generation has occurred at the expense of the environment, coal being a major contribution to carbon dioxide (CO2) emission. Carbon dioxide is classified as a greenhouse gas (GHG); it contributes to the phenomenon of climate change (Haw & Hughes, 2007, p.1). According to Worrell (2011), industry uses nearly 40 percent of worldwide energy on economic activities. Value chain activities alone contribute almost 37 percent to global GHG. Organisations are socially and ethically required to minimise the carbon footprint of their operations. Reducing energy use makes perfect business sense; it saves money, enhances corporate reputations and helps everyone participate the fight against climate change (Carbon Trust, 2011). Gielen, Newman, and Patel (2008) strongly believe the overall energy and emissions trends can be mitigated through additional energy efficiency measures. However, implementing EnMS will enable organisations to establish systematic approaches and the processes necessary to improve energy performance, including energy efficiency, use and consumption (SANS 50001, 2011). The objective of this paper was to evaluate the current energy management strategy adopted by selected automotive manufacture in Eastern Cape. The research was motivated by the fact that previous researchers have focused more on technological aspects and less of management functions. The research paradigm followed in this paper was qualitative because a case study is used to gain an insight and understanding about more and less successful energy management strategies. In this report, background about the global energy outlook and its significant to economic development, factors behind energy demands, the link to climate change and providing effective energy management principles are covered. The energy management principles covered key elements for delivering successful energy management. Literature highlighted that, senior management commitment is the foundation of good energy management, which is delivered through a formal energy policy and a supporting energy strategy with action plan. High level commitment will provide: Advocacy from senior managers; Visibility of the issues across your organization; Impetus for the organisation to implement energy management; Resources, both human and financial. It will also demonstrate that good energy management is part of your organisation’s mission and as relevant as other management aspects. The empirical study is focused on the characteristics of the current management system and organisational structure employed with its relevant functions. Based on these reference points the paper concludes with recommendations for the case study organisation.