2-14. Compliance with the Energy Conservation Act: Establishing a Data Collection and Reporting System

The Act on the Rational Use of Energy (Energy Conservation Act) is a law that requires businesses to reduce and improve the efficiency of their energy consumption. It applies to a wide range of business sites, including factories, office buildings, and logistics centers. Designated Energy Management Factories are specifically required to appoint an energy manager, regularly compile energy consumption data, and report it to the government. To ensure compliance, it is essential to establish an accurate data collection system and an organized reporting structure.

1. Basic Requirements of the Energy Conservation Act

Under the Energy Conservation Act, business sites with an annual energy consumption of 1,500 kL or more in crude oil equivalent are designated as Class I Designated Energy Management Factories, which are subject to detailed energy management. Business sites with an annual consumption of 1,000 kL or more but less than 1,500 kL in crude oil equivalent are designated as Class II Designated Factories and are subject to simplified management obligations. All applicable businesses must submit an annual "Periodic Report" to the Bureau of Economy, Trade, and Industry. Failure to submit a report or providing false information can lead to administrative guidance and penalties.

2. Building a Data Collection System

A robust data collection system is key to accurate reporting. The following points are crucial:

• Measure and compile monthly consumption for each type of energy, such as electricity, gas, fuel, and steam.

• Periodically inspect the accuracy of measuring devices (e.g., electricity meters, flow meters, gas meters).

• For multi-site operations, standardize the data format and centrally manage data from all locations.

• Introduce automated measurement systems or energy management systems (EMS) to minimize errors from manual data entry.

3. Establishing a Reporting Structure

In addition to collecting data, it is necessary to establish a structure for the reporting process.

• Clarify data collection responsibilities for each department and ensure strict adherence to submission deadlines.

• Have the energy manager review the compiled data and check for any anomalies.

• Regularly report energy usage to management and link it to improvement plans.

• When creating reports, clearly show year-over-year comparisons and energy consumption per unit to visualize energy conservation progress.

4. Linking to Improvement Activities

The reporting structure should not be seen as a mere compliance obligation but as the foundation for energy conservation activities. The collected data should be analyzed and used to implement concrete improvement measures, such as reducing peak electricity usage, improving the efficiency of air conditioning systems, converting to LED lighting, and optimizing boiler operations. By regularly verifying the improvement plans and results included in the reports, you can establish a PDCA (Plan-Do-Check-Act) cycle.

5. Utilizing IT and Audits

In recent years, there has been a growing trend of adopting cloud-based energy management tools, which allow real-time monitoring of energy consumption at each site. The use of such systems is also effective for data storage and recordkeeping, which is required in preparation for inspections by the Bureau of Economy, Trade, and Industry or external audits.

Compliance with the Energy Conservation Act is directly linked not only to corporate environmental compliance but also to reducing energy costs and promoting decarbonization. By establishing a reliable data collection and reporting system, companies can achieve both legal compliance and business benefits simultaneously.