Developing Criteria for Integrated Energy Management

Good day mates!

For several days now, our group has been working really hard for a case study “Integrated Energy Management in New Zealand”. And today we specifically focused and discussed the development of criteria to determine or evaluate how much is energy management in New Zealand been integrated. The following questions/inquiries were raised during our meeting: to what extent is energy being managed, what aspects of energy must be considered and integrated and how to design a criteria framework.

Indeed a lengthy discussion was made on so many things regarding energy integration. But we were able to agree to look on the following references in developing our criteria.

a.      The vertical and horizontal integration from Buhrs (1995) IEM matrix;

b.      The conceptual IEM matrix discussed by Born and Sonzogni (1995);

c.       Problem-framing by Bardwell (1991);

d.      Barriers to IEM by Cairns (1991); and

e.      Other relevant readings/literatures on IEM.

As Bardwell’s problem-framing and Cairns’ barriers to IEM have already been discussed on my previous postings, this blog will explore the possibility of developing criteria using the frameworks developed by Buhrs and Born and Sonzogni.

Vertical and horizontal integration

Buhrs (1995) suggested putting or combining together the vertical and horizontal axis to chart the diversity of approaches towards IEM in a matrix (see figure 1). But what does he actually mean by vertical and horizontal axis? The vertical axis of the IEM matrix simply refers to the environment which is represented as an integrated, holistic concept, comprising interdependent ecosystems or nature, including people (Buhrs, 1995). The key to effective integration of the vertical axis is to take into account interconnectedness of all elements under the environment concept (Buhrs, 1995). This is rather very ambitious if not very idealistic in my opinion. The environment itself for me is already a very huge and difficult subject to approach, hence, adding all associated concepts will rather make it more complex and complicated. However, it is the very essence of integration to take into account all the significant aspects of the environment for effective management. Thus, if we want to work on integrated energy management, all subjects associated with it must essentially be considered.

In contrast, the horizontal axis includes a variety of efforts and approaches to IEM which may be classified as integrated interpretation, institutional integration and policy integration (Buhrs, 1995). Integrated interpretation efforts refer to integrating information and knowledge about, and understanding of the environment. Institutional integration effort, on the other hand, is directed at integrating organizations, rules and procedures for environmental management. And lastly, policy integration effort is the process of formulating more integrated policy for managing the environment. The horizontal axis for me is more doable than the vertical axis. However, in order to come with a good IEM framework the both axis must be in integrated. But how can this help us developed criteria for our case study?

The IEM Matrix
Management
“The Environment”	Classification	Interpretation	Institutions	Policy	IEM
	Land
	Water
	Air
	Plants
	Animals
	Resources
	People

Figure 1. The IEM Matrix by Buhrs (1995)

Since environment is much broader in scope than energy, the IEM framework suggested by Buhrs may not totally be utilised in our case study. Nonetheless, I personally think of using the vertical and horizontal aspect in integrating energy institutions and policies. For instance, we will be looking on organizational structure in terms of decision-making within the vertical and horizontal level. Within the horizontal level we will be evaluating how cooperation and coordination is being undertaken between and among ministries of the government concerned with energy management and how energy policies are being implemented within their level. Under the vertical level, we will try to evaluate how energy policies and planning and decision-making process is being undertaken or translated from the central government to regions/districts down to local governments. Under this level we will also try to look on how key energy players are being involved in energy management such as the power generators, transmitters, distributors and consumers. Further, different relevant sectors which use energy mainly in their operation will be integrated such as the industries, transport, agriculture and household.

The Four Dimensions of IEM

Born & Sonzogni (1995) have conceptualized an IEM framework under four major dimensions or characteristics: comprehensive, interconnective, strategic, and interactive/coordinative. Comprehensive is inclusive of many things but must define the scope and scale of management. In IEM, it may include all critical biophysical, chemical, and human parts of an ecological system and all entities – public and private – that affect or can be affected by management (Born & Sogzogni, 1995). Comprehensive may answer the question: have all relevant aspects/areas of energy been considered for integration? Interconnective on the other hand may define interrelationships and linkages among processes and components of the environment within and among multiple, cross-cutting, and often conflicting resource uses. One appropriate question that interconnective dimension may answer is how do management of energy is being undertaken among the vast stakeholders. In other words, interconnective may show the linkages of all processes involve in energy management. In contrast, strategic or reductive or scaled-down involve interactions and trade-off decisions among stakeholders. Question on dispute resolution and prioritisation may be answered under this dimension. Lastly, interactive/coordinative may address how information is shared and dispersed between and among agencies and various stakeholders (Born & Sonzogni, 1995). A good question to look at in relation to interactve/coordinative dimension is how well energy information are being shared.

How can these dimensions help us create criteria for an integrated energy management? I constructed a table below to show possible aspects of energy that can be evaluated using the four dimensions of IEM by Born & Sonzogni.

Dimension	Aspects of Energy Management for Integration
1.      Comprehensive	a.      Integration of energy sources and uses into a single energy system; b.      Consideration of social, economic and environment into energy policies and strategies; c.       Integration of policies and regulations into energy company’s operations or goals; d.      Integration of the horizontal and vertical components of the energy institutions or organizations; e.      Integration of energy alternatives into planning; and f.        International or global linkages.
2.      Interconnective	a.      Consideration for all sectors for integration: households, agriculture, industry, commercial, transport, etc.; b.      Integration of key government agencies and energy companies; c.       Determination of supply and demand for energy market integration; d.      Define functions and responsibilities of all key players; and e.      Mapping and structuring to show interconnection/linkages of all energy management processes and determine the gaps.
3.      Strategic	a.      Integration of supply and demand in connection with population and economic present and future growth; b.      Determination of alternatives and their viability (must be integrated in the energy strategy); c.       Evaluation of consistency of policies and availability of alternative dispute resolutions; d.      Public communication and transparency for effective public involvement; and e.      Prioritisation of regional needs.
4.      Interactive/ Coordinative	a.      Evaluation of the extent of public participation with regard to energy management; b.      Institutional coordination and energy development strategy; c.       Inter-ministerial, inter-governmental coordination; and d.      Multi-partite or multi-stakeholder energy planning and decision-making.

Both works by Buhrs (1995) and Born and Sonzogni (1995) may be used as a guide only for the development of criteria for integrated energy management and not necessarily define energy integration. As mentioned earlier, environment is distinct and a lot different from energy in numerous aspects, hence a modification of the frameworks suggested by the authors is needed to establish criteria that will specifically and holistically define energy management. But by referring to this criteria, we may able to evaluate if integration in energy management is lacking, inadequate, strong or weak. I have provided herewith some aspects of creating criteria towards integrated energy management. They may be very general but somewhat useful nonetheless. I admit however that more research works are needed to be undertaken to put together various elements in one matrix for energy management.  

So, what do you think mates? Do you know any criteria that we can use for our case study? Please do not hesitate to suggest. Thank you very much.  

References

Bardwell, L.V. 1991. Problem-Framing: A Perspective on Environmental Problem-Solving. Environmental Management 15:601-612.

Born, S.M., Sonzogni, W.C. 1995. Integrated Environmental Management: Strengthening the Conceptualization. Environmental Management 19:167-181.

Buhrs, T. 2009. Integrated Environmental Management: Towards a Framwork for Application. Unpublished paper, Environmental Management and Design Division, Lincoln University.

Cairns, J. Jr.  1991. The Need for Integrated Environmental Systems Management. Pp 5-20, Chapter 2, In: John Cairns, Jr. And Todd V. Crawford (eds). Integrated Environmental Management. Lewis Publishers. Chelsea, Michigan.