Achieving Superior Energy Performance (SEP) - U.S. DOE


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Superior Energy Performance® (SEP), administered by the U.S. Department of Energy’s (DOE) Advanced Manufacturing Office, is a certification program that verifies improvements in energy management and performance in industrial facilities. Industrial facilities can take advantage of SEP tools, resources, and protocols to set energy performance targets and then achieve and measure sustained savings to earn certification at the Silver, Gold, or Platinum level. Nine SEP certified facilities realized $87,000 to $984,000 in annual savings from no-cost or low-cost operational measures and have saved an average of 10% of energy costs within 18 months of implementing SEP.

Learn more about SEP:
- What is SEP?
- What have been the results manufacturers have achieved?
- What are the benefits that manufacturers claim about SEP?
- How is DOE supporting SEP?
- How does a manufacturing facility implement SEP?

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Achieving Superior Energy Performance (SEP) - U.S. DOE

  1. 1. 1 | Energy Efficiency and Renewable Energy Achieving Superior Energy Performance April 2, 2014 Paul Scheihing Technology Manager, Technical Assistance Advanced Manufacturing Office gov
  2. 2. 2 • Energy management and ISO 50001 • What is SEP? • What are the SEP Results? • What have manufacturers said are the benefits of SEP? • How can your facility start implementing SEP? • What is DOE’s role in SEP? • What are the latest projects by DOE to expand SEP adoption? Agenda
  3. 3. 3 Energy management and ISO 50001
  4. 4. 4 How can you achieve these objectives in your facility? • Identify new opportunities for improving energy performance • Move to a higher level of sophistication in data utilization • Achieve energy improvements with little to no capital investment • Build greater confidence among senior management that you are achieving returns and delivering results • Broaden energy management engagement to employees at all levels, including top levels of management • Integrate energy performance into management practices • Receive external recognition for third party verified results • Contribute to national goals to strengthen the economy, protect the environment, and reduce dependence on foreign oil The Energy Challenge in Facilities Across the Country
  5. 5. 5 • Time and again, industrial energy efficiency has been demonstrated to be cost effective while having a positive effect on productivity • Despite this, energy efficiency improvements with very favorable payback periods often do not get implemented • Even projects that are implemented may not be sustained due to lack of supportive operational and maintenance practices Problem: Energy efficiency is not integrated into daily management practices. Solution: Staff at all levels within an organization need to be engaged in the management of energy on an ongoing basis. Energy management requires an organization to shift from a project- by-project approach to one of continual improvement in energy performance Project Approach vs. Energy Management
  6. 6. 6 Source: UNIDO 2010 Ad Hoc Approach to Energy Management
  7. 7. 7 Continuous cost reduction from energy management systems Senior management commit to program Initial savings sustained Low cost operational improvements first – then investment Becomes company culture SOURCE: Kahlenborn et al. (2012), based on Lackner & Holanek (2007). Structured Approach to Energy Management
  8. 8. 8 • Help an organization institutionalize the policies, procedures, and tools to systematically track, analyze, and improve energy efficiency—leading to continual improvements in energy performance • Can increase energy efficiency by 15% or more in an industrial facility via operational changes; new technologies offer further improvements. • Requires an organizational change in culture • Requires that top management be engaged in the management of energy on an ongoing basis. Systems ProcessesFacilities Equipment Personnel Scope of Energy Management: What is an Energy Management System (EnMS)?
  9. 9. 9 New international best practice in energy management leading to: • continual improvement of energy performance; • greater reliability of sustained energy savings; • better utilization of energy data in making decisions; • more strategic deployment of energy efficient technologies (e.g. advanced monitoring systems), and • integration of energy efficiency practices into daily organizational operations. • Developed in collaboration with input from 56 countries • Global impact: many countries are adopting ISO 50001 as national standard. ISO 50001 - Energy Management systems
  10. 10. 10 4.5 Implementation and operation • Training • Documents • Communication • Design • Operational control • Procurement 4.6 Checking • Measuring and monitoring • Legal requirements • Internal auditing • Nonconformance, corrective, preventive • Records 4.1 General requirements 4.2 Management responsibility 4.3 Energy policy 4.4 Energy planning – Energy review – Energy baseline – EnPI – Objectives, targets & action plans 4.7 Management review ACT DOCHECK PLAN Blue text represents new data-driven sections in ISO 50001 not in ISO 9001 & ISO 14001 ISO 50001: Plan-Do-Check-Act
  11. 11. 11 ISO 50001: March 2014 United States – Looking ForwardCountry ISO 50001 Certified Sites (Mar. 18, 2014) Global 6,912 Germany 3,240 France 966 Netherlands 407 United Kingdom 348 Italy 228 Spain 205 Sweden 192 India 140 Korea 121 Turkey 108 United States 58 - The number of ISO 50001 certifications around the world is rapidly growing. - Historically, ISO 14001 and ISO 9001 accelerated only 3 to 4 years after introduction Source: Reinhard Peglau, German Federal Environment Agency ISO 50001 Adoption: Nearly 3 years since publication
  12. 12. 12 What is SEP?
  13. 13. 13 ISO 50001 Components in place: • Top Management • Energy Team • Policy • Planning • Baseline • Performance Metrics Superior Energy Performance Single facility ISO 50001 conformance with verified energy performance improvement ISO 50001 ISO 50001 is a foundational tool that any organization can use to manage energy. SEP Certification Requirements SEP certification recognizes facilities that demonstrate energy management excellence and sustained energy savings. Certification Requirements: An ANSI-ANAB Accredited Verification Body conducts a third-party audit to verify the following: 1. Energy management system conformance to ISO 50001 2. Applicant meets energy performance improvement and additional requirements in ANSI/MSE 50021
  14. 14. 14 Certification Levels Performance Characteristics Silver Gold Platinum Energy Performance Pathway Energy Performance Improvement Meets a specified energy performance threshold over the last 3 years: 5% 10% 15% Mature Energy Pathway Uses Best Practice Scorecard to earn points for energy management best practices and energy performance improvements. Energy Performance Improvement Meets 15% energy performance improvement threshold over the last 10 years. Score on Best Practice Scorecard (out of 100 total points)  At least 35 points  Minimum of 30 points for energy management best practices  At least 61 points  Minimum of 40 points for energy management best practices and 10 points for energy performance (beyond 15% over the last 10 years)  At least 81 points  Minimum of 40 points for energy management best practices and 20 points for energy performance (beyond 15% over the last 10 years) Facilities are certified silver, gold, or platinum based on the level of their achievement. Two pathways are offered: 1) energy performance and 2) mature energy.
  15. 15. 15 What are the SEP Results?
  16. 16. 16 The energy performance improvement is over a 3-year period, including capital and operational improvement. ** Mature energy pathway performance improvement is over a 10-year period Facility Name % Energy Performance Improvement Mack Trucks | Macungie, PA ** 41.9 Volvo Trucks, NA | Dublin, VA 25.8 Dow Chemical Company | Texas City, TX: Manufacturing facility 17.1 Bridgestone Americas Tire | Wilson, NC ** 16.8 Harbec Plastics | Ontario, NY 16.4 3M Canada Company | Brockville, Ontario, Canada 15.2 Cook Composites and Polymers | Houston, TX 14.9 Cummins | Whitakers, NC 12.6 General Dynamics | Scranton, PA 11.9 Allsteel | Muscatine, IA 10.2 Cooper Tire | Texarkana, AR 10.1 Olam Spices | Gilroy, CA 9.8 Owens Corning | Waxahachie, TX 9.6 Dow Chemical Company | Texas City, TX: Energy systems facility 8.1 Nissan, NA | Smyrna, TN 7.2 Freescale Semiconductor, Inc. | West Austin, TX 6.5 3M Company| Cordova, IL 6.2 SEP Certified Plants – as of March 2014
  17. 17. 17 Average quarterly percentage energy savings as a function of average quarterly baseline energy consumption for all nine facilities. Results are aligned across facilities so that the first quarter starts when the facilities received their first SEP training. Subtracting the BAU quarterly energy savings percentage from quarterly post-first training energy savings percentages reveals savings attributable to SEP. Cost Benefit Analysis - Nine SEP-certified industrial facilities: • Improved energy performance by 10% on average and saved more than $500,000 over business-as-usual in the first 18 months of SEP implementation. • 74% of energy and energy cost savings after EnMS implementation came from operational (no or low-cost) actions Data and Metrics: Making the Business Case View full study at: www.superiorenergyperformance s_paper13.pdf
  18. 18. 18 • SEP marginal payback figures are calculated for each plant by dividing SEP costs (not including capital project costs) by associated SEP operational energy savings beyond business-as-usual operational energy savings prior to SEP SEP Payback
  19. 19. 19 At its vehicle assembly plant in Smyrna, TN, Nissan achieved the following by implementing SEP: • Improved energy performance by 7.2% over 3 years • 4-month payback • $938,000 total annual energy savings Nissan Case Study: >$900K savings with 4 month payback View this and other SEP case studies at: “SEP adds rigor, analysis, and gives good guidance. It’s one thing to have a target and objective, but SEP gives tools that empower you to be more disciplined and prove the impact certain activities have.” -Nissan North America Energy Team
  20. 20. 20 • First ISO 50001 facility in US • 25% improvement in energy performance over 3 years • $866,000/year operational savings • $377,000 cost to implement SEP • 5 month payback Billboard at the Roanoke, Virginia Regional Airport. Image: Volvo Trucks Volvo Trucks Case Study: >$800K savings with 5 month payback
  21. 21. 21 • First U.S. defense contractor to be SEP and ISO 50001 certified • 11.9% improvement in energy performance over 3 years • $956,000/year operational savings • $255,000 cost to implement SEP • 6 month payback “SEP brought to light many energy intensity savings opportunities that were previously hard to justify. With the EnMS system in place and metering instruments installed, it is much easier to justify improvement projects, and management is more receptive to these proposals.” - Stephen Cannizzaro, Sustainability Manager See the case study at: sses_and_testimonials.html General Dynamics Case Study: >$900K savings with 6 month payback
  22. 22. 22 What have manufacturers said are the benefits of SEP?
  23. 23. 23 SEP certified facilities achieve greater savings potential SEP creates higher confidence in energy efficiency investments “External verification and validation is critical. Certification adds to the confidence in calculations and savings.” — Nissan, Smyrna, TN Third-party verification bolsters a plant’s internal reputation and the company’s public image “At first, we didn’t appreciate the value of third party verification, but our facility has evolved to value third party verification as critical. Any facility can claim energy savings, but a third party verification proves the savings to be real.” — Schneider Electric, Smyrna, TN “Third-party certification removes any potential of “green washing” and provides credibility to savings.” — General Dynamics, Scranton, PA “The established targets required by SEP kept the team at 3M Canada motivated and dedicated to achieving those targets. Since ISO 50001 does not specify particular energy savings targets on its own, along with SEP we're able to truly demonstrate our level of achievement, which we're quite proud of.” —3M Canada, Brockville, Ontario “SEP has helped justify expenditures to management. The measurement and verification requirement helps to identify real cost savings, allowing us to reinvest those savings into additional energy projects.” — Cooper Tire, Texarkana, AR “The verification was more important than the management standard because it provides a performance metric. SEP provides the ability to have proven performance metrics to quantify actual savings, giving both internal and external credibility to savings claims.” — Volvo Trucks, Dublin, VA 23 End User Testimonials
  24. 24. 24 • Advantages of the rigor of SEP: – Improves measurement of energy performance of manufacturing processes – Helps find new savings opportunities that were not originally apparent, including those that are low/no cost • Highlights process energy savings: – Enables incentives and measureable improvements on the process energy side of manufacturing (vs. focusing on specific pieces of equipment or measures) – Engages process engineers in energy management • Promoting the business case for SEP: – SEP provides plant managers top level metrics on the bottom-line business value – Plant managers are confident presenting real and accurately calculated savings to management due to third party verification End User Noted Benefits of SEP
  25. 25. 25 How can your facility start implementing SEP?
  26. 26. 26 SEP Certification Process 4. Audit and Certify The SEP Verification Body will used certified audit personnel to verify your facility’s conformance to SEP requirements. 1. Enroll Enroll in SEP, no matter how far along you are in the process. There is no commitment involved. 2. Implement Implement an EnMS in your facility using the various available resources and work towards meeting SEP requirements. 3. Apply Once ready, submit an application to the SEP Administrator. When it is approved, the application will be sent to your selected SEP Verification Body. 5. Maintain After the initial SEP certification, we encourage your energy team to take steps to continue improvements in energy performance. The SEP Verification Body will conduct annual surveillance audits to ensure the EnMS is maintained. 6. Recertify SEP Certification lasts for 3 years. In order to maintain certification, your facility will have to apply for recertification and undergo a recertification audit, similar to the initial certification audit, to show that the requirements are still met.
  27. 27. 27 A range of implementation resources available: • eGuide for ISO 50001: Use this web-based toolkit to implement an EnMS consistent with ISO 50001, • eGuide Lite: Download and use this starter toolkit to learn the basics of energy management and build internal or supply chain capacity, • Certified Practitioners in EnMS: Hire a CP EnMS to assist with implementing ISO 50001 and preparing for SEP certification. Some companies have sent internal staff to the training and certification to build this expertise in house, • Learn more about CP EnMS training: • Find a CP EnMS: • EnPI Tool: Enter energy consumption data and easily adjust for variables to receive a normalized view of energy performance and calculates SEP metrics, (continued) SEP Tools and Resources
  28. 28. 28 Comments on the eGuide from users: “Excellent job! VERY helpful and almost exhaustive.” “This is one of the best, if not the best, government guides I've ever used. It's easy to navigate, concisely and clearly written, logical. Thank you!” • Step-by-step guidance to implement an EnMS • Simple, clear instructions and guidance • Taking action made easier using templates, checklists, forms, and samples Implementation Resources: eGuide for ISO 50001
  29. 29. 29 • SEP is based on a strong foundation of international and national standards and protocols • ISO 50001 • ANSI/MSE 50021: additional SEP requirements beyond ISO 50001 • SEP Measurement and Verification Protocol • SEP Best Practice Scorecard • SEP Certification Protocol • Additional useful resources include: • ASME System Assessment Standards • ENERGY STAR® energy management guidelines energy-program/guidelines Additional SEP Tools and Resources
  30. 30. 30 Get Started: Visit the Redesigned SEP Website Visit our new website: Additional website features: • Access SEP software tools and technical resources, ( • Read case studies and watch video testimonials from SEP-certified facilities. ( • See the latest certification results ( • Find professional training and credentialing opportunities for your staff. • Sign up to receive the latest SEP updates. − Enrollment: Open to any U.S. industrial facility at any stage of the SEP implementation process, − Application: Any U.S. industrial facility may submit an application for certification when ready for its SEP audit.
  31. 31. 31 What is DOE’s role in SEP? What are the latest projects by DOE to expand SEP adoption?
  32. 32. 32 Current Activities • DOE acts as the SEP Administrator and is currently developing, testing and refining the administrative processes for industrial plants to enroll and apply for SEP certification • DOE provides recognition for SEP achievements and is working to build overall program recognition • New SEP Initiative: Better Buildings SEP Accelerator DOE’s Role In Development and Support of SEP Development of SEP • DOE worked with the U.S. Council for Energy-Efficient Manufacturing (U.S. CEEM) to develop SEP • DOE also partnered with state and regional energy efficiency partners to conduct SEP demonstrations
  33. 33. 33 Better Buildings Industrial SEP Accelerator The Industrial SEP Accelerator is part of the Better Buildings initiative to transform markets for accelerated energy efficiency. Purpose: DOE is exploring ways to make SEP certification easier and more affordable for industrial facilities. • SEP Enterprise-wide Accelerator: Companies are testing strategies to implement SEP across a corporation, business unit, or multiple plants to benefit from economies of scale. Six Partners committed, with 30 participating facilities located in the U.S., Canada, and Mexico: – 3M Company, Cummins Inc., General Dynamics Ordnance & Tactical Systems, Nissan North America, Inc., Schneider Electric, Volvo North American Group • SEP Ratepayer-funded Program Accelerator: Utilities and energy efficiency program administrators are testing SEP as a practical, energy- saving program offering for their industrial customers. – Bonneville Power Administration, Efficiency Vermont, Northeast Utilities, including Connecticut Light & Power Company, Yankee Gas, and NSTAR Electric & Gas
  34. 34. 34 Paul Scheihing Technology Manager, Technical Assistance Advanced Manufacturing Office US Department of Energy 202-586-7234
  35. 35. 35 Backup Slides
  36. 36. 36 ►Receive SEP certification ►Obtain third-party verification ►Achieve energy performance improvement targets ►Conduct rigorous measurement & verification of energy performance SEP Foundational Energy Management (e.g., ENERGY STAR For Buildings & Plants) ISO 50001 Fundamental approach to developing a systematic energy management program based on industry best practices and benchmarking tools Standard Energy Management System (EnMS) framework for global industrial operations Verified energy performance ►Re-assess ►Evaluate progress ►Implement plan ►Create action plan ►Set goals ►Baseline energy performance ►Establish energy policy ►Receive ISO 50001 certification ►Achieve ISO 50001 EnMS ►Management reviews ►Conduct internal EnMS audit ►Formally document EnMS 1 2 3 Steps in EnMS Progression Strategic Energy Management Continuum