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Theoretical and Applied Economics
Reference:

Classification of Types of Energy Efficiency Management of Modern Enterprises

Ganin Petr Viktorovich

Graduate student, GBU "Center for Advanced Economic Research" of the Academy of Sciences of the Republic of Tatarstan

420111, Russia, Republic of Tatarstan, Kazan, Karl Marx str., 23/6.

ganin.pv@gmail.com
Mukhametshina Gul'naz Rasimovna

PhD in Economics

Associate Professor, Department of General Management, Kazan (Volga) Federal University

420111, Russia, Tatarstan, Kremlevskaya str., 18k2

698817@mail.ru

DOI:

10.25136/2409-8647.2023.2.39380

EDN:

TQOYZN

Received:

12-12-2022


Published:

04-08-2023


Abstract: The subject of the study is the content of the energy efficiency management process of the enterprise. In accordance with the proposed approach, energy efficiency management is a complex of consistently implemented functions of analysis, planning, organization, motivation, control and evaluation of the actual effectiveness of measures to reduce the level of energy intensity of production and other activities, formed taking into account the requirements and capabilities determined by formal institutions, and focused on ensuring stable growth of financial and economic and social efficiency of the enterprise. The object of the study is the classification of types of energy efficiency management of the company. The research methods are a critical analysis of the specialized literature on energy efficiency, the synthesis of various scientific and methodological approaches, the study of time series. The scientific novelty consists in the fact that the author supplemented the classification of types of energy efficiency management of the enterprise according to such criteria as the time factor, the degree of centralization of management, sources of financing, the involvement of external practices and third-party consultants, the degree of validity of management activities. The classification supplemented by us allows us to determine the type of energy saving management depending on the goals and objectives of the long-term financial, economic and social development of the enterprise itself, the available resource base, the available human resources of the engineering and energy profile, the state and likely trends of changes in the fuel and energy market, primarily individual tariffs for energy resources and other factors. All other things being equal, the most potentially financial and socially effective is the management of the energy efficiency of the enterprise, which is justified on the basis of a set of modern econometric models, is centralized, carried out at the expense of its own sources of financing, is appropriately balanced in strategic, tactical and operational management sections.


Keywords:

energy efficiency, energy conservation, energy management, statistical analysis, expert approach, strategic management, industry, performance contracting, centralized management, decentralized management

This article is automatically translated. You can find original text of the article here.

Introduction. The financial and economic effectiveness of the functioning and development of modern enterprises of various scales, forms of ownership and branches of the economy directly depends on the quality and scientific validity of the management of energy efficiency processes. Thus, R. Abrams points out the existence of a direct relationship between the quality of energy efficiency management of production and the level of the company's market value [9, p.51]. B. Feld and J. Mendelson substantiates the importance of the relationship between the specifics of energy efficiency management and the dynamics of the investment attractiveness of the enterprise [12, p.42].

The purpose of the article is to clarify the theoretical provisions of energy efficiency management of modern enterprises. As part of the purpose of the article , the following tasks are highlighted:

- to show the importance of energy efficiency management in the development of modern enterprises;

- clarify the content of energy efficiency management as an economic process;

- to supplement the classification of types of energy efficiency management of the enterprise;

- to propose an organizational and economic mechanism for integrated preferential project lending, performance contracting and crowdsourcing.

Research methods: critical analysis of specialized literature on energy efficiency management, comparative country analysis of the level of energy intensity of industrial production, correlation and regression analysis, method of economic justification of the organizational mechanism of performance contracting.

The scientific novelty of the article consists in supplementing the classification of types of energy efficiency management and substantiating the organizational and economic mechanism of integrated preferential project lending, performance contracting and crowdsourcing.

The main part. In accordance with the definition specified by the author, energy efficiency management is a complex of consistently and consistently implemented functions of analysis, planning, organization, motivation, control and evaluation of the actual effectiveness of measures in the field of reducing the level of energy intensity of production and other activities, formed taking into account the requirements and capabilities determined by formal institutions, and focused on ensuring stable growth financially-economic and social efficiency of the enterprise.

One of the most common indicators of energy efficiency in the development of modern economic systems at various levels is the energy intensity of production, which is the ratio of energy costs to the total cost of goods, works, and services produced. Accordingly, minimizing the energy intensity of production is one of the basic goals of managing the energy efficiency processes of companies, industries or industrial complexes. Data on the average energy intensity of industrial production for the G7 and BRICS countries, which together formed more than 70.0% of global GDP in 2021, are shown in Figure 1.

As shown in Figure 1, the average level of energy intensity of industrial production in the Russian economy is relatively higher than the values of a similar indicator for all G7 states. At the same time, according to this criterion, the effectiveness of energy efficiency management of the national economy is higher than similar indicators for such leading states of the BRICS group as India, Brazil and South Africa.

Fig. 1. Average energy intensity of industrial production in the G7 and BRICS countries, % of the cost of industrial production (2021) [13, p.417]

 

As shown in Figure 2, ensuring a reduction in the energy intensity of industrial production in the group of countries under consideration is a statistically significant factor in ensuring an increase in the level of overall financial and economic efficiency according to the criterion of average profitability of industry.

 

Fig.2. Economic and statistical function of the influence of the average energy intensity of industrial production on the average level of profitability for the group of G7 and BRICS states, 2021 (constructed by the author on the basis of information contained in [13])

The issue of classification of types of energy efficiency management of an enterprise is not fully covered in the specialized literature. Thus, G.Ya. Vagin and V.A. Korovin differentiate energy efficiency management by branches of the economy: by industrial enterprises, agro-industrial complex, construction complex, etc. [2, p.79]. G.N. Klimova considers the specifics of energy efficiency management for the development of small and large industrial enterprises [4, p.117]. J. Charch and R. Ues differentiate the management of energy efficiency of enterprises into systemic and situational, however, without accurately determining the economic content of the latter [11, p.131]. R. Chervitz divides energy saving management into those associated with significant capital expenditures of the company and requiring mainly the reorganization of economic processes, without significant additional investment costs [10, p.59].

Accordingly, the author supplemented the features of the classification of energy efficiency management of the enterprise in the context of criteria that are significant from the point of view of theory and practice of modern management, namely:

1. According to the criterion of the time factor, it is advisable to differentiate the energy efficiency management of the enterprise into the following types:

- strategic energy efficiency management of an enterprise is a system of long-term goals, priorities and organizational and economic mechanisms in the field of energy policy of a business entity, usually associated with relatively significant investments in reducing the level of energy intensity of the production process;

- tactical management is a set of measures for the current adjustment of the energy management system (for example, in weekly or monthly sections) in accordance with changes in the internal and external environment of enterprises, for example, trends in the dynamics of fuel and energy tariffs in the relevant industry market;

- operational management of energy efficiency is the daily control, analysis and organization of management of the use of fuel and energy resources, the fastest identification and elimination of losses in the field of operation of the company's energy equipment, the functioning of electrical systems, heat supply technologies, etc.

2. According to the sources of financing, energy efficiency management can be differentiated into the following types:

- carried out exclusively at the expense of the company's own funds (net profit, depreciation, previously formed financial reserves) – according to the assessment, in particular, K.S. Fioktistov, over 90.0% of energy saving management programs of Russian companies at the beginning of 2020 were carried out solely at the expense of their own sources of financing [8, p.57];

- implemented on the basis of partial use of budgetary funds, which may take place in relation to energy efficiency management programs of enterprises of special social importance, state corporations and other similar economic entities [5, p.132];

- carried out on the basis of partial use of credit resources provided by commercial banks on the basis of conditions of traditional or project lending.

3. Depending on the use of the practices of external economic entities in the field of energy management in the framework of the organization of the energy efficiency process, the type of management under consideration can be differentiated as follows:

- unique energy efficiency management, formed purely for the needs of a specific business entity;

- energy efficiency management of an enterprise using some standard industry and intersectoral technical, technological and organizational solutions in the field under consideration, standard approaches to energy management, etc.;

- energy efficiency management, which uses elements of industry benchmarking – the best practices of the company's industry competitors in the field of management activity under consideration.

4. Depending on the degree of centralization, energy efficiency management of a large, usually multi-profile enterprise (or holding structure) can be divided into the following types:

- centralized management of energy efficiency of the enterprise;

- decentralized management, within the framework of which each large production unit of the company forms and implements its own strategy and tactics to increase the level of energy efficiency of the operational process and other areas of activity.

5. According to the criterion of using the services of external specialized organizations, it is advisable to differentiate energy efficiency management into the following main types:

- carried out by the company itself, without involving the services of third-party organizations;

- carried out by the company itself, but with the involvement of external industry consultants specializing in helping to solve the problems of rationalization of energy management systems;

- implemented by a third-party professional energy service company on the basis of a civil contract with the customer enterprise (through the organization of traditional energy service in the direction of ensuring the growth of energy efficiency of the company's activities or on the basis of a sufficiently innovative organizational and economic mechanism of energy service performance contracting).

6. Depending on the degree of scientific validity of the energy efficiency management system, in our opinion, the following main types of the latter can be distinguished:

- management based mainly on the intuition of the top manager of the organization, his purely voluntary approach to solving energy efficiency problems (sometimes used in the activities of some small and medium-sized companies that do not have a planning and analytical service in their structure);

- management based on the use of an expert-consulting approach to substantiating the goals, priorities of improving the energy efficiency of the enterprise and the development of organizational and economic mechanisms to achieve them;

- energy efficiency management based on the wide application of a complex of economic-statistical and other econometric methods and models.

The implementation of projects and programs in the field of energy efficiency of modern enterprises directly depends on the rationality, scientific validity of mechanisms for managing energy saving processes.

For example, in the state program "Energy Saving and energy efficiency improvement in the Republic of Tatarstan", the emphasis is on such a mechanism as complex, innovative technical re-equipment of the energy economy of enterprises [1, Article 12]. R.M. Dashkin, I.A. Koch, D.S. Makarenko and T.I. Khasanov focus on the use of energy saving mechanisms within the framework of the general concept of "lean production" [3, p.241]. N.I. Timonina considers the features of the mechanism for ensuring energy efficiency growth based on the formation of special project management structures for individual energy facilities of modern enterprises [7, p.113].

In order to improve the energy efficiency management of modern enterprises in the industrial sector of the economy, we propose an organizational and economic mechanism for integrated preferential project lending, performance contracting and crowdsourcing in the process of introducing energy-saving production technologies and (or) specialized digital startups. In general, this kind of organizational and economic mechanism is shown in Figure 3.

 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

Fig.3. Organizational and economic mechanism of integrated preferential project lending, performance contracting and crowdsourcing in the process of introducing energy-saving production technologies and (or) specialized digital startups (developed by the author)

In general, performance contracting is a special form of energy-intensive consulting and project services for business entities, usually industrial companies, in which the final total remuneration of the performance contract operator directly proportionally depends on the actual reduction in the level of energy intensity of the development of the energy economy of the customer company or the functioning of its production activities as a whole [6, p.59].

Within the framework of the organizational and economic mechanism presented in Figure 3, the energy service performance contracting is of a complex nature. Complexity is manifested in the following main elements:

- organization and implementation of a system energy survey (energy audit) of the entire spectrum of energy processes carried out within the operational and other areas of activity of the customer enterprise;

- identification on the basis of a comprehensive energy audit of the directions of energy efficiency growth of activities, a correct feasibility study of the sequence of works to ensure energy efficiency improvement, their cost and potential financial and economic performance for the customer;

- reinforcement of work on the technical and technological modernization of the energy economy of the customer's enterprise with appropriate organizational and economic measures (lean manufacturing technologies, lean office, training of all groups of the company's personnel in algorithms for the most rational use of equipment and other groups of fixed assets in the direction of minimizing their energy intensity without compromising the quality of business processes of the business entity);

- provision by the energy service company (the operator of the performance contract) to the customer enterprise of several options for the implementation of works to ensure the growth of energy efficiency of the company's activities, differentiated by the timing and cost of implementation;

- possible insurance of potential risks of energy servicesperfomance contracting in a specialized insurance organization;

- the actual execution of a comprehensive energy service performance contract, including the implementation of the operational monitoring of losses in the grid economy used by the customer company developed by the author of the digital startup;

- payment of the bonus part of the remuneration to the operator of the energy service contract only after the actual reduction, after the implementation of a comprehensive modernization of the energy economy of the customer's enterprise, of the latter's energy intensity by at least the amount provided for under the energy service contract.

Conclusion. In general, the classification we have supplemented allows us to determine the type of energy saving management depending on the goals and objectives of the long-term financial, economic and social development of the enterprise itself, the available resource base, the available human resources of the engineering and energy profile, the state and likely trends of changes in the fuel and energy market, primarily individual tariffs for energy resources and other factors. All other things being equal, the most potentially financial and socially effective is the management of the energy efficiency of the enterprise, which is justified on the basis of a set of modern econometric models, is centralized, carried out at the expense of its own sources of financing, is appropriately balanced in strategic, tactical and operational management sections.

The proposed organizational and economic mechanism of integrated preferential project lending, performance contracting and crowdsourcing will increase both the level of intensity and financial and economic efficiency of the introduction of energy-saving technologies by domestic companies of various forms of ownership and sectors of the economy.

References
1. State program “Energy saving and energy efficiency improvement in the Republic of Tatarstan” // Approved by the Decree of the Cabinet of Ministers of the Republic of Tatarstan dated December 4, 2013 No. 954 (as amended and supplemented on October 19, 2019).
2. Vagin G.Ya., Korovin V.A. Resource and energy saving in foundry production. – M.: Forum, 2022. – 254 p.
3. Dashkin R.M., Koch I.A., Makarenko D.S., Khasanov T.I. Energy efficiency of Russian oil companies as a determinant of their shareholder value formation // Economic relations. – 2020. – Volume 10. – No. 1. – pp. 239-256. – doi: 10.18334/epp.9.4.41465.
4. Klimova G. N. Electric power systems and networks. Energy saving : textbook for universities / G. N. Klimova. — 2nd ed. — Moscow : Yurayt Publishing House, 2022. — 179 p. - (Higher education). — ISBN 978-5-534-00510-3. — Text : electronic // Yurayt Educational Platform [website]. — URL: https://urait.ru/bcode/490263
5. Kolesnikov A.I., Fedorov M.N., Varfolomeev Yu.M. Energy saving in industrial and municipal enterprises. – M.: Infra-M, 2005. – 382 p.
6. Marchenko G.N., Ryzhkova L.V., Performance contracting as a tool for reducing the costs of industrial enterprises // Bulletin of the Kazan State Energy University. - 2009. - No. 4. – pp.56 – 62.
7. Timonina N.I., Energy saving and energy efficiency as ways to achieve energy security in the country // Theoretical economics. – 2022. - No.1. – pp.111 – 118
8. Feoktistov K.S. Problems of application of functional analysis in assessing the energy efficiency of modern enterprises // Issues of economics and management. – 2021. - No. 4. – pp.56-59.
9. Abrams R. Entrepreneurship: A Real-World Approach. Redwood City: Planning Shop, 2021. - 412 p.
10. Cherwitz R. Developing intellectual interpreneurship. – Wash, 2001. - 174 p.
11. Church J., Ware R. Industrial Organization: A Strategic Approach. McGraw Hill 2000.
12. Feld B., Mendelson J. Venture deals. Wiley, 2019. - 368 p.
13. World Bank Economic Review. N.Y., 2022

First Peer Review

Peer reviewers' evaluations remain confidential and are not disclosed to the public. Only external reviews, authorized for publication by the article's author(s), are made public. Typically, these final reviews are conducted after the manuscript's revision. Adhering to our double-blind review policy, the reviewer's identity is kept confidential.
The list of publisher reviewers can be found here.

The subject of the study. The article, based on the title, should be devoted to the classification of types of energy efficiency management of modern enterprises. The content of the reviewed materials corresponds to the stated topic, however, the purpose and meaning of the information provided were not clear. When finalizing the article, it is necessary either to specify the meaning of this information or, possibly, to expand the range of issues under consideration, going beyond the boundaries of classification aspects. Moreover, the author in the title talks about modern enterprises, but the text does not provide specific criteria for this type of organization: it is recommended either to abandon the allocation of this group of legal entities, or to give their characteristics so that the object of research is clearly specified. Research methodology. The reviewed materials are a summary of well-known facts about approaches to the classification of types of energy efficiency management of modern enterprises. When finalizing the article, it is recommended to offer recommendations on their practical use in the context of modernization of energy efficiency management processes of enterprises. The relevance of the study of issues related to the management of energy efficiency of modern enterprises is beyond doubt, as it is of great importance not only for a specific legal entity, but also for regional economies and the Russian economy as a whole. There is no scientific novelty in the presented materials, despite the presence of a potentially large number of unexplored aspects on the issues under consideration. Style, structure, content. The style of presentation is scientific, if assessed from the point of view of the absence of colloquial and journalistic expressions. The structure of the reviewed materials does not meet the formal requirements for the structure of a scientific article due to the lack of mandatory blocks related to the analysis of numerical data on the issue under consideration, as well as reasonable recommendations for solving the identified problems. Due to errors in the formulation of the topic and the construction of the structure, it was not possible to disclose the issues raised at a high level. Bibliography. The list of references consists of 10 sources, of which 8 are publications from the periodical press, which indicates an insufficient study of the scientific works of other authors. Moreover, the design of the bibliographic list does not meet the requirements of GOST. It seems that an article in the scientific journal "Theoretical and Applied Economics" in form and content should meet all the requirements. Appeal to opponents. Due to the absence of scientific results in the text of peer-reviewed materials, there is no corresponding discussion with the results of research obtained by other authors. When finalizing the article, including those carried out in terms of studying an additional number of sources, the author should definitely pay attention to this issue, since this will additionally ensure an increase in the level of scientific novelty. Conclusions, the interest of the readership. Taking into account all the above, the peer-reviewed materials can be published only after conducting research on the stated topic and their transformation into a scientific article. Issues related to ensuring the energy efficiency of enterprises are of interest to a wide readership, but this requires mandatory focus on existing problems and recommendations for their solution.Accordingly, the decision on the possibility of publication should be made after careful revision and re-review.

Second Peer Review

Peer reviewers' evaluations remain confidential and are not disclosed to the public. Only external reviews, authorized for publication by the article's author(s), are made public. Typically, these final reviews are conducted after the manuscript's revision. Adhering to our double-blind review policy, the reviewer's identity is kept confidential.
The list of publisher reviewers can be found here.

The purpose of the article is to clarify the modern classification of types of energy efficiency management of the enterprise. The problems of energy efficiency are becoming the central object of research in the modern theory and practice of industrial enterprise management. The dynamics of the implementation of energy efficiency projects in developed countries is only increasing every year, and in recent years Russia has been taking an active position on the development of energy conservation and energy efficiency. However, there are still some scientific gaps concerning issues related to the management of energy efficiency of the enterprise. The methodological basis of the research consists of the following methods of scientific cognition: hypothetical-deductive method, analysis of the regulatory framework for the subject of research, critical analysis of special literature on energy efficiency management, comparative analysis, correlation and regression analysis. The scientific novelty consists in the presentation of the author's complement of the features of the classification of energy efficiency management of an enterprise from the point of view of modern management. In addition, the organizational and economic mechanism of integrated preferential project lending, performance contracting and crowdsourcing in the process of introducing energy-saving technologies for the production of digital startups is proposed. The material of the article as a whole is structured in accordance with internal logic, divided into three thematic parts, at the end of the article the conclusions for the scientific community are presented. The appeal to the opponents is presented, the author analyzes foreign and domestic works on the classification of types of energy efficiency management of the enterprise. Also, importantly, the article contains a final section on the practical side of the proposed classification. The style of the article is scientific, at the same time, the article is written in a language understandable to readers. The list of references contains thirteen sources, almost a third of them are foreign. Mostly good quality sources are used. Also, among the positive aspects of the publication, we can note the presentation of graphic research materials, which allow readers to perceive information more easily. The reviewer has some comments and suggestions: 1. At the beginning of the article, a goal is declared concerning the clarification of the content of energy efficiency management as an economic process. However, the text itself does not disclose information on the basis of which data the clarification of this definition was made. We suggest either removing this goal from the text and making a footnote to the author's previous publication, in which he comes to his conclusions, or giving a detailed explanation. 2. It is necessary to describe the conclusions of the second figure, since the transition between it and the subsequent text is not entirely clear. 3. Figure 3 is designed carelessly, it is necessary to insert it in such a way that the arrows are in the right places and are not displaced. The work generally meets the requirements for scientific research, is written on an urgent topic that will receive a response among the readership, and can be recommended for publication in the scientific journal Theoretical and Applied Economics after the comments have been eliminated.
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