Energy mapping is the basis for further work in the planning and establishment of a baseline. When that is completed you can identify representative and measurable energy indicators (KPIs). These specific KPIs should also be inserted into an overall KPI structure.

Energy objectives and targets must then be established and implemented in the organisation.

In the section on establishing a baseline you can read more about the relationship between KPIs, baseline and objectives, and the various terms used to establish these.

KPI (''Key Performance Indicator'') is the term oil and gas industry actively uses when talking about energy indicators, and the term is therefore used in this guide. The standard for energy management (Norwegian edition) uses the term EnPI (Energy Performance Indicator) for KPIs, defined as a quantitative value or measure of energy performance as defined by the organisation. The KPI term used in this section is therefore the same as the EnPI term from the standard.

Monitoring and reporting of KPIs can, when used correctly, give the correct decision background for the correct person/role at the appropiate time. An example of this might be a production manager who gets energy consumption in GJ/day reported on his mobile every morning and an operator receiving an overview of the valve openings for valves every hour on in the control system, also called DCS (distribution control system).

The purpose of a KPI is to:

 What should be done

A KPI structure often consists of a KPI or more overall KPIs that relate to the company's energy objectives or energy targets for a specific installation/field, but could also be connected to the company's profitability objectives. Since many people and roles have their own KPIs, it is important to create a KPI structure that fits into the individual company and that involves multiple people.

The working process of establishing a KPI structure and establish different KPIs can be divided into four parts:

It is recommended that the work process is a combination of a top-down and a bottom-up approach. You could begin with your top-down approach, starting with establishing an overall KPI (in many cases does this already exist as part of the energy objective).

Then you can use the energy mapping as a basis for defining energy producers and consumers through consumer groups and equipment that are attached to the respective energy producers and consumers (see figure below).

By establishing an interdisciplinary discussion and/or carrying out a workshop you can involve the relevant people that are related to specific processes/equipment, and identify both the impact and non-impact factors that affect the energy consumption.

After you have established a KPI structure, the job is to implement the KPIs in your organisation, and to have a plan for continuous monitoring and control of the KPIs.

An example of a KPI structure is shown below. At the top, there is an overall KPI attached to a company’s or installation’s specific energy objective. This KPI is further broken down to department/unit or work area and then down to the process/equipment level. This can then be used to control processes/equipment in an energy efficient manner.

To establish good and quantified KPIs it is usually necessary to carry out an analysis that investigates what affects the KPI in question. A good start would be to make some simplistic measurements or calculations to set a preliminary value for the KPI. Then it may be necessary with a more in depth analysis at component or system level to find a more optimal value for the KPI that will be used.

Examples of overall KPIs are:
CO2 emission/Sm3 o.e. produced Energy consumption (kWh)/Sm3 o.e. Tonnes/Konkraft target Fuel gas consumption (Sm3)/Gas exported (Sm3)

KPIs on the bottom of the hierarchy should be conditions that operators and other personnel with special expertise within an area can affect directly through their daily work.

A schematic example of a KPI structure is shown below.

Experience from the industry project shows that defining good KPIs can be time consuming and requires the involvement of people with expertise in different areas. By defining KPIs through such a process ensures that they align with the rest of the system with due consideration paid to their value, content, context and possible influence from other systems.

Some of the pitfalls you can risk in the efforts to establish a KPI structure are:

KPIs

Involve

Follow-up

Examples of KPI structure for the energy management system related to ideas
Number of ideas for energy management measures proposed (of all levels of the organisation, especially focusing on the operators). Number of evaluated ideas (performed by for example the energy team). Number of measures carried out (the measures that can be cost reducing without major investments should be considered implemented).

 Who should be involved

Employees involved in defining the KPIs should be many of the same who were involved in energy mapping; see list below. To ensure management support, more people from higher up in the organisation should also be involved in the process. Finally, it is also important to involve the units that will contribute to reaching the objectives.

People to involve in this phase of the planning could include:

 What should be documented

For the KPIs and KPI structure, the following shall be documented:

 Challenges and opportunities

The experiences from industry indicate that there exist various challenges and potential solutions to what may occur when defining energy indicators.

To improve KPIs a comprehensive analysis may be required.

Better understanding of the energy consumption from the energy mapping can make it easier to understand what parameters/input data are required for such an analysis.

Resource intensive, there are many people who may be involved in finding correlations for KPIs.

Although it is costly to define KPIs, the process will result in the organisation benefiting from this in the long run. It becomes easier to find out responsibilities of individuals and this can make work easier in the future. In addition, such a mapping exercise can increase competence, awareness and engagement around the topic.

Challenging to find KPIs that satisfies all requirements and in addition some of the KPIs counteract each other.

KPIs that counteract each other should be avoided and a comprehensive mapping should be performed to understand correlations better. This may be accomplished by involving the people who understand the various systems best. By investing some time to understand the correlations, it can potentially save your company a lot of money in the long term.

There are not necessarily easy solutions to all challenges that are identified. Sometimes opportunities may arise from a process such as this:

 Energy management in practice

An example of a KPI structure from one of the workshops in this project is shown below.

 Where do you find this in ISO 50001?