ISO 50001 is a new ISO standard that can bring significant benefits to Jamaica and other Caribbean countries. Interest for ISO 50001 is beginning to take traction in Jamaica. This presentation was delivered to a company which is actively engaged in setting up an energy management system and wants to incorporate the best practices available thus there interest in ISO 50001. ISO 50001 es un nuevo estándar ISO que puede traer importantes beneficios a Jamaica y otros países del Caribe. Interés por la norma ISO 50001 está empezando a tomar impulso en Jamaica. Esta presentación haya comunicado a una empresa que participa activamente en la creación de un sistema de gestión de la energía y quiere incorporar las mejores prácticas disponibles por lo tanto existe interés en ISO 50001.

1. _ Corporation
&
ISO 50001
A Winning Combination
Phillip Thomas
A1 Solutions
www.A1Solutions.net

2. Additional / Useful Information
The following website contains additional
information and excellent links regarding the
ISO 50001 program.
www.A1Solutions.net

3. What is ISO 50001?
ISO 50001 is an Energy Management
System that when correctly
implemented will lead to increased
energy efficiency, reductions in
energy consumption and costs and
reductions in greenhouse gas
emissions and other environmental
impacts.

4. What is an Energy Management
System and what are the benefits?
• An energy management program allows a
company to understand and manage its use
of energy.
• It involves the examination of all the systems,
processes, procedures, personnel and
equipment to determine those that have a
significant impact on its energy use,
consumption and efficiency.

5. Benefits (contd.)
• With this fulsome picture the
company can then accurately
manage its existing operations and
plan future developments
• It is able to
– identify, and prioritize potential
energy saving opportunities.
– Schedule future opportunities as per
cost and benefits.
– Explore new possibilities in light of
potential cost benefits

6. Why ISO?

7. Why ISO 50001?
History
• In 2007 the United Nations Industrial Development
Organization (UNIDO)as a response to the proliferation of
National standards asked ISO to consider the development
of an International Energy Standard.
• U.S. Department of Energy (D.O.E.) and the American
National Standards Institute felt that a united and
concerted effort was needed in tackling the widespread
inefficiencies in industry.
– From these discussions ANSI also formally requested ISO to develop
this standard
• In February of 2008 ISO Project Committee 242- Energy
Management was formed led by the U.S (ANSI) and Brazil,
Associacao Brasileira de Normas Tecnicas (ABNT).

8. History contd.
Mandate
To achieve standardization in the field of energy
management including
• Energy Supply
• Procurement practices for energy consuming
equipment and systems
• Energy use (lighting, ventilation, cooling etc.)
• Any use-related disposal issues
In addition the standard would address measurement of current
energy usage, and the implementation of a measurement
system to document, report and validate continuous
improvement in the area of energy management.

9. Mandate contd.
The new ISO 50001 standard would:
• Establish a framework for industrial
plants, commercial facilities or
entire organizations (regardless of
size) to manage energy.
• Have broad applicability across
national economic sectors,
potentially influencing up to 60% of
the world’s energy use.

10. List of Participating Countries
Participating
• Argentina
• Australia
• Barbados
• Canada
• Chile
• China
• Columbia
• Denmark
• Ecuador
• Egypt
• Finland
• France
• Germany
• India
• Iran
• Ireland
• Israel
• Italy
• Japan
• Kazakhstan
• Kenya
• S. Korea
• Malaysia
• Mauritius
• Mexico
• Morocco
• Netherland
• Nigeria
• Norway
• Pakistan
• Peru
• Poland
• Portugal
• Russia
• St. Lucia
• Singapore
• S. Africa
• Spain
• Sweden
• Thailand
• Tunisia
• Turkey
• U. K.
• Uruguay
• Zimbabwe
Observing
• Belgium
• Bulgaria
• Costa Rica
• Czech
Republic
• Hong Kong
• Iceland
• Indonesia
• Romania
• Serbia
• Slovakia
• Sri Lanka
• Switzerland
• Tajikistan
• Trinidad and
Tobago

11. Why ISO?
Who / What is ISO?
– ISO = International Organization for
Standardization
– Membership of 160 national bodies
including Bureau of Standards
– “Provides businesses, government and
society with practical tools for all three
dimensions of sustainable development
• Economic, Environmental, and Social”
– Standards facilitate trade, spread
knowledge, disseminate innovative
advances in technology and share good
management practices

12. Who / What is ISO contd.?
– Standards are developed only when there is a
clear market requirement and are done by experts
in the respective subject areas.
– The ISO standard “represents a global consensus
on the state of the art in the subject of that
standard”

13. ISO 50001 :2011
ENERGY MANAGEMENT SYSTEMS
Requirements with guidance for use.

14. ISO 50001
– NEW - at last report 33 U.S. organizations
including 3M, Alcoa, Dow Chemical
– Gives organizations the requirements for energy
management systems
– Provides benefits for organizations large and
small in both public and private sectors, in
manufacturing and services in all regions of the
world
– Will establish a framework for industrial plants;
commercial, institutional and governmental
facilities and entire organizations to manage
energy.
– Adaptable to all industrial /commercial entities
– Adaptable to all cultures and countries
– Certification offered

15. – “Individual organizations cannot control energy prices,
government policies or the global economy, but they
can improve the way they manage energy in the here
and now.
– Improved energy performance can provide rapid
benefits for an organization by maximizing the use of
its energy sources and energy-related assets, thus
reducing both energy cost and consumption.
– The organization will also make positive contributions
toward reducing depletion of energy resources”
ISO 50001 – Why important?

16. – “It will provide public and private sector
organizations with management strategies to
increase energy efficiency
– Reduce costs
– Improve energy performance
– Will integrate energy performance into
management practice (culture)
– Multinationals will have a single standard
applicable across all entities”
ISO 50001 – What will it do?

17. – “Plan – conduct the energy review and establish
the baseline, energy performance indicators
(EnPIs), objectives, targets and action plans
necessary to deliver results in accordance with
opportunities to improve energy performance and
the organization’s energy policy
– Do – Implement the energy management action
plan(s)”
ISO 50001 – How does it Work?

18. ISO 50001 – How does it
Work? Contd.,
– “Check – Monitor and measure
processes and the key characteristics
of its operations that determine
energy performance against the
energy policy and objectives and
report the results.
– Act – Take actions to continually
improve energy performance and the
Energy Management System.”

19. Figure 1, ISO “Win the Energy Challenge”

20. GAP?
Why Only Now?

21. THE UNIT COST OF ENERGY!
Not as self evident as you may
realize.

22. ENGINEER / TECHNOLOGY
VS.
BUSINESS / ADMINISTRATION

23. Analysis
Engineering
• Highly specialized in
technical areas.
• Trained and oriented
towards the execution of
projects.
• Calculations &
communication – Tech
speak.
• Financial and qualitative
benefits not elevated.
F&A, Operations, Marketing,
Admin
• Focus on production not on
efficiency.
• Lack of technical training on
systems and energy
efficiency.
• Calculations &
communication - Business/
Admin speak.
• The financial impact of
technical rolled into lump
sums “Overhead”.

24. Engineer vs. Management
contd.
In the past we could get away with
such a situation however it
resulted in
• Technical overlays – efficient
working with or over inefficient
systems, equipment, processes.
• No real understanding of the
energy cost of the various sub
systems and their respective
contributions.

25. Result
Overhead being apportioned equally over
efficient and non-efficient equipment,
processes, and systems.

26. Result
ABC Costing
Recall the transformations of businesses as a
result.
– Product lines reorganized with priority given to
those with higher margin contribution.
– The parallel is what ISO 50001 is bringing to what
has been a cloudy, nebulous area and why early
movers are all reporting significant gains.

27. Types of results being
achieved
• The majority of industrial
enterprises that have implemented
EnMS have reported annual
average declines in energy intensity
of 2.0 – 3.0%.
• However those that have
implemented for the first time
have reductions in the first 2 years
in the order of 10 – 20%.

28. NUTS & BOLTS – ISO 50001

29. ISO 50001 – Description
• The ISO 50001 standard is comprised of 4
sections and an Annex
 Section 1 – Scope
 Section 2 – Normative References
 Section 3 – Terms & Definitions
 Section 4 – Energy Management System
Requirements
 Annex A

30. Scope
Explains the purpose(s), functions and limits of the standard
including –
1. Enabling an organization to adopt a systematic approach to
achieve continual improvement in energy consumption.
2. Specifies the requirements for energy use and consumption
e.g. measurements and documentation.
3. Applies to all variables affecting energy performance that can
be monitored with specific performances NOT mandated.
4. Can be used independently or in conjunction with other
management systems.
5. Can be applied to any organization.
6. Provision of an annex for guidance of use.

31. Normative References
• A placeholder to ensure that the numbering of
the standard conforms to that of other ISO
management systems standards.

32. Terms and definitions
• A series of explanations for the terms and
expressions used throughout the document to
prevent ambiguity and uncertainty. Example
• Correction – “Action to eliminate a detected
nonconformity”
• Corrective Action – “Action to eliminate the cause of
a detected nonconformity”
• Preventive Action – “Action to eliminate the cause of
a potential nonconformity”

33. Energy Management System
Requirements
The core of the standard
Comprises 7 sections
• General requirements
• Management responsibility
• Energy policy
• Energy planning
• Implementation and operation
• Checking
• Management Review

34. General Requirements
The general requirements give a fulsome outline of
what this section desires to achieve and
specifies the organizations commitment to
1. The establishment and the continual
improvement of an energy management system
(EnMS) in line with the dictates of the standard.
2. Set the limits of the system by defining its
scope and boundaries
3. Continual improvement of energy performance.

35. Management Responsibility
The standard places significant emphasis on the
role of senior management, for the success of
implementing the standard. The standard
requires the following from top management
• Development and implementation of an energy
policy
• The appointment of a representative and an
energy management team.
• The provision of necessary resources.

36. Management contd.
• Communicate importance of energy
management throughout the organization.
• Ensure the establishment of objectives and
targets and that performance indicators are
appropriate to the organization.
• Strategic planning should include energy
performance
• Conduct reviews.

37. Management Rep.
• Delegated responsibility for implementation.
• Responsible for the establishment of energy
team.
• Reports on energy performance and overall
program.
• Promotes the program at all levels throughout
the organization.

38. Energy Policy
The energy policy is a critical document as it
delineates the purpose and direction of the
organization. The standard requires the following
• Appropriate to the company’s operations
• Commitment to continual improvement of energy
performance and the provision of necessary
resources.
• Adherence to all legal requirements and others
to which the company subscribes.

39. Energy Policy contd.
• Provides direction on the setting and reviewing
of objectives and targets
• Company must support the purchase of energy
efficient products and must include enhancing
energy performance in all plant designs
• Must be communicated throughout the
organization
• Regularly reviewed and updated as required.

40. Energy Planning
A critical activity for effective implementation.
Energy planning involves the following
• Ensures that all plans are in accordance with the
energy policy
• Ensures that legal and other requirements are
factored in the implementation.
• Preparing for an energy review
• Establishing an energy baseline

41. Energy Planning contd.
• Establishes appropriate energy performance
indicators (EnPIs).
• Establishes appropriate energy objectives and
targets.
• Documents and establishes appropriate action
plans to accomplish targets.

42. Implementation &
Operation
The organization will ensure that -
• All persons working in energy significant areas
are trained and educated appropriately.
• That both the EnMS and energy performance
are communicated throughout the organization.
• The documentation required by the standard is
instituted with the necessary controls.

43. Implementation &
Operation contd.
The organization will ensure that –
• The necessary operational / maintenance
controls are in place to achieve targets and
objectives according to the action plans.
• Energy performance is factored in all designs
and in the procurement of equipment, services
and energy.

44. Checking
The organization will ensure that –
• Significant energy consuming factors are
measured, monitored and reported and where
necessary appropriate action taken.
• An energy measurement plan is formulated and
documented.
• All legal and other requirements are being
adhered to.
• An internal audit is conducted at predetermined
intervals with a plan developed and documented
and results reported.

45. Management Review
At predetermined intervals senior management
shall conduct a formal review of the EnMS to
“ensure continuing suitability, adequacy and
effectiveness”
Inputs will include –
• Reviews of the energy policy, energy
performance and EnPIs.
• The status on the achievement of objectives and
targets.
• Energy audit results.

46. Management Review
contd.
Outputs will include actions and decisions related
to the following
• Energy policy
• Energy performance, objectives, targets, EnPIs,
or other parts of the EnMS.
• Resources

47. Annex A
The annex does not contribute materially to the
standard however it expounds on certain areas
including
• The role of the management representative
• The importance of the energy policy
• Tips on energy planning including benchmarking
• Tips on the energy review including the baseline,
EnPIs, objectives, targets and action plans.
• Tips concerning the internal audit.

48. STEP BY STEP IMPLEMENTATION
GUIDE1
1Taken from document produced by Georgia Tech in association with U.S.
Department of Energy

49. Step 1 – Getting Started
i. Make the business case
ii. Secure top management commitment
iii. Establish the structure for EnMS
implementation
iv. Understand the role of documents and records.

50. Step 2 – Profile your Energy
Situation
i. Acquire Energy data
ii. Track and analyze energy data
iii. Establish a baseline and determine EnPIs
iv. Identify, evaluate and track legal and other
requirements.
v. Determine significant energy uses
vi. Identify energy opportunities.

51. Step 3 – Develop Opportunities,
Objectives and Resources
i. Prioritize energy opportunities
ii. Establish energy objectives
iii. Set energy targets
iv. Develop the energy action plan(s)

52. Step 4 – Reality Check: Stop!
Look! Can I Go?
i. Review the status of your efforts
ii. Perform a sanity check on resources
iii. Identify accomplishments and lessons learned
iv. Conduct a management review
v. Communicate across the organization
Go!!!!!

53. Step 5 – Manage Current State
and Improvements
i. Manage and control information
ii. Determine operational controls
iii. Ensure competency of personnel
iv. Ensure awareness of personnel
v. Define purchasing specifications for energy
supply
vi. Incorporate energy considerations in
procurement.

54. Step 5 – Manage Current State
and Improvements, contd.
vii. Manage energy considerations in design.
viii. Communicate internally.
ix. Decide on external communications.

55. Step 6 – Check the system
i. Monitor, measure and analyze key
characteristics.
ii. Calibrate monitoring and measuring
equipment.
iii. Evaluate legal and other compliance.
iv. Plan and conduct internal audits.
v. Take action to correct and prevent
nonconformities
vi. Check and use the evidence.

56. Step 7 – Sustain and Improve the
System
i. Collect information for management review
ii. Conduct management reviews
iii. Ensure continual improvement

57. A1 Solutions
“Your Perfection … Our Passion”

58. A1 Solutions
“Your perfection … Our Passion”
• Dedicated to the roll out of ISO 50001 in
Jamaica and the Caribbean
– IT SIMPLY MAKES SENSE!

59. Services ProvidedA1 Solutions “Your perfection … Our Passion”
• Conduct pre-assessment.
• Guide the company through the 7 ISO
50001 implementation steps including
appointment of management rep, policy
development, energy plan and review
training of staff.
• Ensure that communication systems and
reporting relationships are in place.

60. Services Provided contd.A1 Solutions “Your perfection … Our Passion”
• Manage the preparation of all necessary
documents including policies and plans.
• Guiding initial internal audits and
management reviews
• PREPARE THE COMPANY FOR
CERTIFICATION! POSSIBLY FIRST IN
JAMAICA AND THE CARIBBEAN!

61. THANK YOU!
Questions?