Energy Management Fundamentals
Energy is an important factor for socio-economic development of any country. Economic development in developed and developing countries is impossible without energy. Various studies have shown that important energy issues are seriously taken into account in different countries in current circumstances including providing enough energy to meet human needs, attaining a minimum economic growth, solving regional environmental problems, increasing energy efficiency and supply of needed capital for investment in the energy sector.
Increases in energy efficiency significantly contribute to improvement in regional and global environmental conditions in an effective manner. In addition, increased energy efficiency can meet a part of global energy requirement. Various studies have shown that there is a significant potential for improving energy efficiency in different parts of the world. Moreover, greater efficiency in energy consumption requires significant investment in old plants and industries as well as investment in alternative fuels. Furthermore, development of energy systems and use of available technical methods for supply of energy and improvement in energy efficiency require significant investment. In addition, governments should supply needed capital in the energy sector.
Considerable part of global energy supply will be met by fossil fuels over the next few decades. Coal and gas will be available for longer time among fossil fuels. However, fossil fuel resources are exhaustible. Therefore, supply-demand balances, rational energy consumption, improved energy efficiency, supply of needed capital, development of renewable energy technologies and prevention of environmental degradation constitute the framework for energy management program in different countries.
Energy management program has been implemented in different countries since early 1970s. This program consists of macro policies in the energy sector to reduce organizing energy demand, development of proper organizations, legislation of necessary laws and regulations and implementation of management programs.