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ESOS in Processing - (Energy Audit Scheme & ISO 50001)


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Under EU Energy Efficiency Directives, Large Enterprises must carry out an energy audit of their operations every four years. The first such audit must be completed by 5th December 2015. To implement the directive, the Energy Saving Opportunity Scheme (ESOS) has been established in the UK and the Energy Audit Scheme (EAS) in the Republic of Ireland. The ISO 50001 Energy Management Standard can be used an automatic path to comply with these mandatory schemes.

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ESOS in Processing - (Energy Audit Scheme & ISO 50001)

  1. 1. ESOS in Irish Processing (The Energy Audit Scheme - is the ISO 50001 path right for you?) RDS, DUBLIN, 9TH & 10TH SEPTEMBER 2015 Mike Brogan, CEO & Co-Founder
  2. 2. QSET software Energy consultants large MNC’s (IS 393 software) Members EN/ISO 50001 committees First installs: buildings & industry EN 16001 software deployed Enerit ISO 50001 software launched 20 years in Management System Software ISO 9001, ISO 14001, OHSAS 18001 1995 2004 2006 2008 2010 2011 Enerit Founded
  3. 3. Under the DIRECTIVE 2012/27/EU Energy Efficiency Directive [EED] all EU countries are required to use energy more efficiently at all stages of the energy chain from production to final consumption. The EED establishes a set of binding measures to help the EU reach its 20% energy efficiency target by 2020. EU countries required to transpose the Directive's provisions into their national laws by 5 June 2014. Energy Efficiency Directive Ireland’s national E.E. target is 31,925 GWh or 20% saving by 2020 and €2.4bn
  4. 4. The Energy Audit Scheme has been established by SEAI to implement Article 8. Energy Efficiency Directive – Article 8 Article 8 – (Energy Audits & Energy Management Systems) of the Directive has been transposed into Irish Law as S.I. No. 426 of 2014 European Union (Energy Efficiency) Regulations 2014. Under the legislation large organisations (non-SME and public body) are required to carry out an energy audit by 5 December 2015 and every four years after that. The UK Government established ESOS to implement Article 8 (4-6) through the ESOS Regulations 2014.
  5. 5. ESOS – Energy Saving Opportunity Scheme 90% of total spend/use Different routes Submit notification to Environment Agency If ISO 50001 Lead Assessor not required Penalties for not doing audit up to £50,000 • 14,000 business notified • 152 competed in August
  6. 6. Does it affectYou? Does your company quality for Energy Audit Scheme (EAS)? Employees > 250 ? Turnover > €50m? Balance Sheet > €43m? You are “Large Enterprise” Participation in EAS is mandatory You are “Large Enterprise” Participation in EAS is mandatory You are not a “Large Enterprise” Participation in EAS is NOT mandatory You are still encouraged to undertake energy audits – they may help cut costs Based on legal entity status registered in Ireland ESOS only applies to UK. Legal entity in Ireland must comply with EAS
  7. 7. EAS & Public Sector Large Enterprise criteria applies Individual buildings, any one of which has a total useful floor area of over 500 m2 or an annual energy spend in excess of €35,000 this requirement will apply in due course • Introduced on a phased basis • Phasing details of eligibility thresholds and timescales will be published in the Public Sector Energy Efficiency Action Plan later in 2015.
  8. 8. What does it cover? kWh Applicable to All Sectors – based on criteria regardless of the sector. Air or sea: journeys that start and/or end in Republic of Ireland Road Freight: Only if you pay for the fuel Rail travel: N/A unless you are a rail company Cars: company cars and fleet vehicles
  9. 9. Energy Audit Scheme – Derogation Ref: Energy Audit Scheme Guidance Notes & FAQs Do you have GHG Permit? (iii) Does it cover 70% of your energy use? (i) Is it valid on 5th Dec 2015? (ii) Minimum audit requirements (AnnexVI)? (iv) implementing through SEAI programme? (iv) Energy review complete by 5th Dec (70% energy use)? Appoint Registered Energy Auditor to confirm (iv) Certified by June 2016? Is it valid On 5th Dec 2015? (ii) Minimum audit requirements (AnnexVI)? (iii) Does it cover 70% of your energy use? Demonstrate eligibility with evidence Present Results & Sign-Off By CEO ESOS compliance by ISO 50001 does not require verification by Lead Assessor
  10. 10. ISO 50001 Route • Internationally recognised approach for effective management of energy consumption. • Used by MNCs across its operations. • Meet European mandatory auditing schemes in other countries. • Management system with embedded procedures and controls • Review and Continual Improvement • Integrate with (ISO 9001, ISO 14001) • Energy Planning Process covers the Energy Audit Scheme (& ESOS) and much more… Ref: ISO 50001 standard
  11. 11. approach are 13.7% versus Business-as-Usual approach of 3.6%. References: ISO 50001 proven savings!
  12. 12. AnnexVI - Minimum criteria for energy audits and Energy Management Systems ..up-to-date, measured, traceable operational data; … a detailed review of the energy consumption profile… …build, whenever possible, on life-cycle cost analysis (LCCA)… … identification of the significant opportunities for improvement. ….clear information on potential savings. … storable for historical analysis and tracking performance. Energy Audits No template provided - It depends on the scale and nature of the operation • ISO 50002: 2014 Energy audits: requirements with guidance for use • EN16247 Parts 1-4 covering audits in buildings, process and transport • CIBSE AM5:1991 Energy Audits and Surveys
  13. 13. Energy Audits Can use previous energy audits – Must have been undertaken since September 2014 – Completed by a Auditor on the Register of Energy Auditors – Must meet the minimum requirements in AnnexVI Sampling of sites with similar business operations can be audited – must be 70% of energy use InternalAuditors must be a Registered Energy Auditor – signed-off by CEO or senior director
  14. 14. Energy Saving Measures / Improvement Opportunities The cost savings should be based on a life-cycle cost analysis (LCCA) where practicable – demonstrates if investment will be economical over its entire life by accounting for all the costs during a given period of time. – These types of cost analyses are common accounting methodologies for many types of financial investments “Energy audits shall allow detailed and validated calculations so as to provide clear information on potential savings.“ LCCA not always practical so other approaches (e.g. simple payback period), may be used.
  15. 15. Register established by SEAI in June • 47 Energy Auditors registers as of 28th August Not all auditors will be appropriate in all circumstances Internal personnel are eligible to register o Audit signed off by two senior authorised signatories EnergyAuditors Application Process Application form Normal tax and insurance certificates Degree / qualification certificates etc. o Minimum qualification – relevant technical discipline (Level 7) o Relevant post qualification experience – seven years o Have an additional ‘title/registration’ - either robust assessment of energy experience/competence or this combined with examination Adherence to Code of Practice Energy Auditors SEAI recommend that organisations: - AssessAuditor Competence (e.g. BSI PAS 51215: Energy efficiency assessment – competency of a lead auditor) - Get 3 quotations
  16. 16. Compliance Process Not required to submit audits to SEAI Energy Auditor presents results to senior management and sign-off by CEO or Senior Director • If internal Auditor – sign-off by two senior personnel. Audits may be required for quality assurance purposes No penalties in 2015 – compliance assessment and penalties introduced in 2016 (ESOS penalty up to £50,000+) Audit costs depend on size of operation and work already done – up to individual companies to select appropriate auditor and negotiate fee
  17. 17. Summary “Large Enterprises” – EAS applies to you ISO 50001 can be used for compliance No Penalties yet but coming so why wait? ISO 50001 route makes sense for “Large Enterprises” There is time especially if you sign up to SEAI programme There are plenty of skilled auditors available and Enerit tools can help. Don’t simply comply – apply! • Significant savings to be made
  18. 18. Questions? Contact: