1994 INTERNATIONAL SYSTEM DYNAMICS CONFERENCE
A Soft Systems Management Approach to Energy Management and
Conservation for the Hotel Industry of Cyprus
Costas Y Konis
The Institute of Technology
P.O.Box 783, Nicosia, Cyprus
Tel: 010 357 2 317288
Fax: 010 357 2 318087
Abstract
The paper describes an attempt to tackle the problem of energy management and conservation of the
Hotel Industry of the island of Cyprus utilising the Soft Systems Methodology. Hotel industry is one
of the most dynamic industries of the island and contributes heavily towands its national income.
The paper describes all steps of the methodology applied that is: the development of the rich picture,
the identi ion of issues for i the of | models and the derivation
of useful, feasible and culturally acceptable recommendations.
The paper concludes that Soft Systems Methodology is an excellent means for tackling complex
problems involving human activity systems and that is certainly suitable for improving problematic
situations in energy management and conservation.
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1994 INTERNATIONAL SYSTEM DYNAMICS CONFERENCE
A Soft Systems Management Approach to Energy Management and
Conservation for the Hotel Industry of Cyprus
The Development of the Rich Picture
During the development of the rich picture the emphasis was placed on identifying elements of
structure, process and climate. As the research progressed there were cases in which certain roles and
attitudes of actors had to be modified.
The most important actors in the rich picture are listed below :
(a) The Cyprus Tourism Organisation (C.T.O)
(b) The Cyprus Hotel Owners Assocation
(c) The Cyprus Hotel Manager Association
(d) The Department of Energy
(e) Architects
(f) Tourists
(g) Chief Engineers
(h) Hotel Manager
(i) Building and Engineering Contractors
G) The House of Representatives
(q) The Electricity Authority of Cyprus
The main issues selected from the rich picture
The most important main issues selected (in no particular order) were the following:
(a) Energy policy
(b) Lack of awareness of energy conservation opportunities
(c) Lack of education and training of persons involved in the design and operation of hotels at all
levels.
(d) Lack of clear line of aurhority and
measures.
(e) Lack of progressiveness of the financial institutions in their loan policies.
(f) Lack of energy data and information at all levels.
(g) Communication problems within hotels and between various actors at all levels.
ibility for the impl ion of energy conservation
(h) Energy probl in the hotels
(i) Parliament and Government conflicts about policy and special group interests.
Gj) Lack of motivation and i ives for the impl ion of energy
conservation measures.
Relevant Systems Related to the Major Issues
Some of the relevant systems that were developed in order to eleminate main
issues were the following:
(a) A system to form and promote policies on energy use and energy related investments.
(b) An education system to inform and increase awareness on energy matters.
(c) A system to establish a centre or a body that will be responsible for the efficient use of energy.
(d) Ani ion system for the collection, analysis and provision of regular and ad hoc
information on energy matters to all parties concerned.
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1994 INTERNATIONAL SYSTEM DYNAMICS CONFERENCE
(e) A system to promote new methods of financing for energy conservation investments.
(f) An information system to inform relevant parties within a hotel on matters related to energy
efficiency and provide a channel to ease communication difficulties.
(g) A system to establish and facilitate links between isolated parties concerned with energy
conservation.
(h) A management system to plan and organise energy efficiency activities within a hotel.
(i) A system to encourage energy conservation through the provision of incentives.
G) A-system to support research and i in relevant technologies for the Cypriot Hotel
Industry
The Primary task and the CATWOE memonic
The primary task of the research was defined as follows:
"To understand, manage and imporve the energy use in the Hotel Industyr of Cyprus".
After the following root ition for the primary task relevant system was
chosen: "A global and ongoing system to understand, manage and i improve the energy use in the
Hotel Industry of Cyprus for the benefit of the economy and the country".
The multiple levels of problem analysis required, were immediately apparent.
The "CATWOE" mnemonic (according to P. Checkland) fo the primary taks root definition was
satisfied as follows:
C (customer): Individual hotels, the hotel industry of Cyprus and the economy of the island (3
differen levels).
A (actors): All actors in the problem situation shown in the rich picture: Hotel managers, owners,
engineers, guests (4 different levies).
T (transformation): Understand, manage and improve energy utilisation processes with a view to
greater effectiveness and economy (at each major level) - The need met.
W (weltanschaung): Cyprus is too dependent on foreign suppliers and at the mercy of oil price
variations. However it has certain energy resources of its own (such as energy conservation) and the
engineering skills to develop effective energy conservation devices and means (2 different levels,
national and local).
O ( Owner): Government Energy Department on behald of all parties concerned and Hotel engineers
charged with energy economy on behald of the onwers.
E (Environment): Attitudes, abilites, capability ot invest in proposed meauses, legislation,
regulations.
The conceptual model of the primary task
This stage involved the development of the conceptual model based on the primary task. All relevatn
systems were included in this conceputaul model. The first level of his conceptual model is shown in
Figures.
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1994 INTERNATIONAL SYSTEM DYNAMICS CONFERENCE
Understand Energy Use and Technology
(installed and new)
Manage Energy and New Energy
Investments
Improve Energy Use
(Promote-Monitor-Control)
Figure 1: Primary task based coneptual model (Level 1)
The various activities shown in figure 2 are listed below:
1. UNDERSTAND ENERGY USE AND TECHNOLOGY
Train
Increase Awarenes
Analyse Information
Distribute Information
Gather Information
R&D
Provide Information
Aggregate information on energy use
Develop data base
SOuSO oT ON EA eG 9
»
MANAGE ENERGY USE AND TECHNOLOGY
Measure energy use
Record energy use
Analyse energy use
Monitor energ use and new investments
Follow guidelines and legislation
Communication with relevant people
Motivate people
Evaluate various technologies
Introduce optimum energy "mixes"
10. Invest in new technology
11. Control energy use
12. Set targets
VPenavawnyn
Problem - Solving Methodologies, page 118
1994 INTERNATIONAL SYSTEM DYNAMICS CONFERENCE
3. IMPROVE ENERGY USE
1. Introduce guidelines for measuring, targeting and monitoring
2. Provide incentives for energy conservation
3. Monitor international developments on energy use and cost
4. Monitor energy use in industry and economy
5. Monitor energy cost in hotel industry
6. Evaluate benefits for industry and economy
7. Consider/monitor other benefits
8. Propose system changes
9. Establish responsibilities for energy conservation
10. Form poliices on energy conservation and use
ll. I duce ligislation and i
12. Propose legisl to control practising of related
13. Propose and canvas legislation and regulations related to energy use
14. Encourage R & D of relevant technology
The comparison stage
The final conceptual model was set aside the real situation (as presented in the rich picture) in order
to identify differences and similarities between the activities of the model and the real problem
situation. Based on the results of the comparison stage the research proceeded to the next stage. This
stage involved focusing on recommendations.
Furthermore, an additional stage defined as “guidelines for recommendations" was also included for
each and every case. This stage was considered necessary a order to provide practical guidelines fo
the persons tht would attempt to impl these
Developing Recommendations
Following the comparison phase of the Soft Systems Meth yy detailed dations were
developed for each major category shown below. The five major categories with the relevant
ies for which dations were derived are the following:
A. CHANGES IN POLICY
1 Energy pricing policy
2. Energy conservation policies
3. Infrastructure policy ( see D below also)
4. Codes, regulations and standards
5 Establishment of an Energy Conservation and Managment Fund (ECMF)
6. Introduction of R & D to establish cases for ic change
7. Introduction of legislation for the ising of the i
ig! Pp
B. CHANGES IN ATTITUDE
Increase and promote awareness for energy conservation
1
2. Pi ion of good ion
3. Provision of incentives
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1994 INTERNATIONAL SYSTEM DYNAMICS CONFERENCE
1 Introduction of i ion systems
2. Introduction of performance review and target setting techniques
3. Application of quantitative design modelling approaches
4.
5:
deling of existing tech
Adoption of new technologies and energy conservation measures
D.CHANGES IN STRUCTURE
1. Centre for collecting and di: ing inf
2. Establish Training Body for the needs of the Hotel Sector
E. EDUCATION AND TRAINING NEEDS
1. Training of the Staff of the Energy Unit
2. Training of architects and engineers
3. Training of hotel staff at all levels
4. Training of energy consultants
Conclusions:
The research investigated the problem of energy management and conservation in the hotel sector of
Cypurs; one of the most important and most dynamic sectors of the island's economy. The
methodology of the Soft Systems Approach was considered as the most appropriate method for
tackling the complexities involved in the problem situation. This was extended by the utilization of
interactive simulation modelling in ion supply and stochastic demand situati
(1) It has been demonstrated that the adoption of a systemic approach for tackling complex problems
is well suited for problems of energy management and conservation.
The use of the Soft Systems methodology approarch employed in this research proved to be an
excellent means of both understanding the problem situation of the Hotel Indsutry of Cyprus and
proposing feasible and desirable changes for its imp . Nok ion should therefore exist in
applying the methodology for the investigation of the energy problems of other micro sectors of the
economy.
(2) Existing problems in the energy situation investigated are systemic by nature. As a result there is
always a need for systems interacive models for preparing feasible economic solutions. The
reduction of current energy consumption level of the hotel sector by 10-20% through the applications
of the systems work is both possible and realistic.
(Ga) There is a real need for changing the attitude of all "actors" of the system towards the issue of
energy managment and conservation.
(3b) The detailed investigation of the research points to the fact that there is a pressing need for
introducing a new energy management infrastracutre at National level and below. This includes both
chages in the overall Goverment system responsible for energy, and the hotel industry itself.
(4) There is a need to modify existing energy policies and adopting new more efficient policies and
strategies. This conclusion concerns energy policies and strategies at the macro econmic level, the
hotel industry level and even at the level of indivual hotels and the managerial staff.
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1994 INTERNATIONAL SYSTEM DYNAMICS CONFERENCE
(Sa) There is a need for further investigation of the energy supply and demand patterns of the Hotel
industry of Cyprus in order to arrive to accurate cost effective proposals for optimum energy supply
mixes in individual hotels or small clusters of hotels.
(5b) Considerable energy savigns can be realised by modigying user habits and hotel energy demand
patterns (reducing energy consumption and peak electricity demand) through improved utilisation
and managment of installed technology, There is also good scope for energy conservation through
both remodelling existing technology and introducing new energy efficient technology. The
sequence of progression of these stages is also important to achieving maximal benefits.
(6) There is an immediate need for the provision of trainng and education of all human actors
involved in the problem situation. This fact has been well demonstrated form the analysis of the
questionnaires of the major "actors" of the hotel industry (chief engineers, hotel managers) and from
the discussions held with hotel staff, architects, engineers, hotel owners and energy consultants.
(7) A general sampling of the energy demand of the Ys itated by the ic nature of
the research, proved the pr of inappropriate energy practices and planning in
several representative industries. This fact underlines the need of undertaking systemic
investigations of all other energy consuming sectors prior to major energy planning decisions (such
as the construction of a new power plant). It is believed that there is good scope of energy
conservation in other sectors, of a magnitude comparable to that of the hotel sector examined.
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Problem - Solving Methodologies, page 122
1994 INTERNATIONAL SYSTEM DYNAMICS CONFERENCE
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Problem - Solving Methodologies, page 123
