Talk presented at: IETC 2014, .Industrial Energy Technology Conference, New Orleans. Author: Paul F Monaghan PhD, CEO Enerit Ltd, paul.monaghan@enerit.com, http://ie.linkedin.com/in/paulfmonaghan This paper draws on real experience of implementing ISO 50001 and Superior Energy Performance (SEP) in USA and Europe in a variety of sectors: pharmaceutical, automotive, medical device, metals and plastics, universities & ICT. The paper aims to give high-level practical guidance on implementation of these types of energy management system (EnMS) US DoE has reported substantial extra savings with an EnMS approach. However, there are a number of challenges to: getting started; and making continuous improvement with EnMS. Firstly, the expression “Energy Management System” means different things to different people. In this paper, we explain what the difference is between EnMS, as meant by ISO 50001/SEP and the general class of Energy Management Information Systems (EMIS), which include monitoring systems and corporate energy/carbon reporting systems. The next problem is “getting started” with EnMS. In this paper, we first explain identify that there are two key reasons for people to adopt EnMS: These two organizations may start in a different way: • If the goal is “I want to save more energy in a cost-effective way”, start with an energy review and find ways to visualize how energy is used within the organization. • If the goal is “I want to get an ISO 50001/SEP certified”, start with a gap assessment. When some sites in the organization have successfully implemented an EnMS, how do you: ensure that those sites continuously improve; and how do you bring the less advanced sites up to the level of the leading sites? We believe it is useful to view everything in terms of Energy Management Maturity Models and use this as guidance along the path from start-up through to embedded continuous energy management improvement. Factors that we have found useful in successful rollouts are visualization tools e.g.: Sankey diagrams - show energy flows; Spider diagrams; Dashboards. In this paper, we will show examples of these visualizations in real situations. Biography: Paul F Monaghan has a Ph.D. in Mechanical Engineering from Queen’s University Canada. After an early career as an energy engineering consultant, he became a tenured Professor in Mechanical Engineering at the National University of Ireland. He left to found two start-up software companies, QSET and Enerit and lived in USA & Ireland. His focus has been on energy and software for over 30 years. Today, he leads Enerit which has delivered ISO 50001 software in Europe, Americas and Asia to organizations like: Pfizer, Medimmune, Fiat, Boston Scientific, Nuqul, Harbec, Sage and Asia Development Bank.

1. Lessons Learned: Guidance based on Early
Experiences of Implementing ISO 50001 & SEP
Paul F Monaghan PhD, CEO
Enerit – the ISO 50001/SEP software company

2. Background

3. ISO 50001/SEP Experiences
http://www.energymanagertoday.com/why-are-certain-countries-stronger-in-energy-
management-086920/

4. European Research Projects

5. One Misunderstanding:
What is EnMS?

6. EnMS (e.g. ISO 50001/SEP) vs EMIS
o Formal Energy Management Systems vs
Monitoring Systems
o http://www.energymanagertoday.com/enms-and-emis-whats-the-
difference-087680/
EnMS vs Business as Usual (BAU)
o EnMS vs good energy efficiency programs
o http://eetd.lbl.gov/sites/all/files/aceee_sep_paper.pdf
What is EnMS? –Two Aspects

7. EnMS
Management
Policy/Goal/Targets
Resources
Training,
Communication,
Documentation
OperationalControl
Internal
Audit
CAPAs
ManagementReview
Technical
Energy
Review
Energy
Baseline
EnPIs
Design
EnergyPurchasing
Monitoring
Measurement
VerifyingActionPlan
Results
EnergyPerformance&
EnPIsReview
EnMS (ISO 50001/SEP) & EMIS Relationship
BEMS
Carbon
Reporting
M&T
SCADA
EMISSmart Meters
M&V

8. Getting Started

9. Systematic Energy Management
Management commitment,
Resources, Planning
Understanding your
energy usage and how
to control it
Develop and energy
efficiency culture
Balance of all 3 for
successful
Energy Management
Focus today:
Organization & People

10. Bringing it back home
Visualize YOUR Energy Saving Opportunities
Identify waste and opportunities early
http://www.energymanagertoday.com/kick-off-your-energy-management-program-with-
guesstimation-sankey-visualization-096549/

11. Energy Review
Analyze energy use and consumption
Determine Significant Energy Use (SEU)

12. Key Point – Really find Energy end-uses e.g.
Low-volume high-end Pharma. company
o 80% clean-room AHU’s>>
• Focus on regulatory change
University campus
o Most energy under control of academic depts. >>
• Focus - empowering staff: training; self audits
• Future: capital spend on controls
Both – involved energy team + others
FindYour Energy Starting Position

13. Many bad M&T system designs:
o 100:1 sensors for 50/50 Elect./Thermal -Why?
o Overwhelmed with 15 min. data
But what is big message?
o How linked to your goals and real end-uses?
Go slower – get it right
o Don’t fear “guesstimating”
o Spend wisely – even on expensive single items
• e.g. Big steam meter if relevant
Monitoring first? … Maybe not!

14. Get ManagementCommitment – the key
o Build the Business Case - Market to the CEO
o Most failures – switching priorities
– Can’t stay on the job
Get Integrated -
o Link up with the teams and systems that look after
environment, quality & health and safety
o They bring standards & compliance knowledge
o They will look after the management systems side
o Best implementations have combined teams
Getting Started –Two Big Points

15. Organizations get ISO 50001/SEP for 2 reasons:
o Save cost of energy – examples later
o Get certified
Figure out BUSINESS drivers to get certified:
o Your competitors are doing it – driven by customers
o Show “Green” credentials e.g. Harbec
o Demonstrate proven Best Practice in organization
o Tax Rebates or other cash benefits, e.g. Germany
Why should your org. go EnMS?

16. Getting Management Persuaded
Energy Savings – Case Studies
People are Starting to Believe
Visualize YOUR Energy Saving Opportunities (above)
Logical next Step in Best Practice

17. Proven Energy Savings

18. approach are 13.7% versus Business-as-Usual approach of 3.6%.
References:
http://eetd.lbl.gov/sites/all/files/aceee_sep_paper.pdf
http://www.superiorenergyperformance.net/results.html
USA SEP Pilot – 10.1% less Energy Cost

19. Why ISO 50001 EnMS? – Evidence
speaks for itself!
BSI Group ...Sheffield Hallam University in the UK reduced its
carbon emissions by 11% once it was certified.
Annual savings of over £100,000 ($160.7k).
Deloitte research has shown that organizations pursuing a
systematic energy management approach are achieving three
times more savings that those who do not (7.2% versus 2.4 %.)
The range of savings found by Certification Europe are from 6-
37%.

20. Pfizer – A Big Company Example
• “At Pfizer Loughbeg, we have reduced our electricity and gas use
since 2009 by 30%.
• The adoption of EN16001 followed by our successful certification
to ISO 50001 forced us to focus on our significant energy uses.
• Our work to date in energy management has led us to seek out the
most efficient operational profile that satisfies our regulatory and
corporate quality standards.”
Paul Farrell, Site Energy Lead,
Pfizer Loughbeg Drug Product Plant
Ref: Energy – Ireland Leading the way in Energy Management
See this and other case studies at: http://enerit.com/our-software/case-studies

21. NewYork State
• 1996 – ISO 9001
“it taught us to do what we say
and say what we do”
• 2000 – ISO 14001
“Knowing that 9001 made us
accountable in quality systems,
we anticipated that 14001 would
give us similar improvement in
areas of environmental
impact..”
o 1st wind turbine
• 2013 – ISO 50001 / SEP -
carbon neutral
o “..marketing carbon
neutrality in every part they
manufacture and to prove
it…”
o Target 15% savings over 3
years – SEP Platinum – 16.4%
achieved
• 2014 – ISO 13485 – quality
for medical devices
o Decision to use Enerit
software for all ISO systems.

22. Benefits
Employee Engagement: People are now taking the time to think
“How can we decrease energy usage!”
Systemic Approach to Achieving Energy Cost Savings: tools to
measure and monitor going forward in the future.
Continual Energy Efficiency Improvement: “..leads to more new
product development … more energy efficiency in equipment
performance…”
Low Implementation Costs with High ROI: No costly new
equipment or major changes. Less than the full-time effort of one
employee, but had the support and encouragement of
management.
Full case study under preparation will appear here:
http://enerit.com/our-software/case-studies

23. People are starting to believe

24. http://www.aems.ie/Pages/iso50
ISO 50001 Fastest Growing Standard
Since ISO 9001

25. 6600 ISO 50001 certs globally to March 2014
The real early adopter is Germany
o 50% of world total – via tax rebates (rest<<5%)
Forecasted number of certs is 230,000 by 2022
o Less than 4% certified already!
Verdantix survey
o 25% of companies will invest in next 12 months
o in the US, 14% expect to invest in ISO 50001 at the
enterprise level
ISO 50001 Adoption

26. Logical next Best Practice Step
Building on existing management systems is easier
than you think

27. Integrate with Other Standards
Ref: SGS
See also:
http://www.energymanagertoday.com/iso-50001-integration-with-iso-14001-089466/

28. In Implementation Mode
Examples of Visualization & Communication
with ICT support

29. Set up Communications toWider Staff
Tracking is crucial:
o Not just energy & EnPI numbers, but also
o The organization’s “Way ofWorking”
Get all information in one place – min. Admin!
Visualize to motivate
Integrate with other systems
In Implementation Mode

31. Area Activity Level 1 Level 2 Level 3 Level 4 Level 5
Commitment Man. Responsibility
Inputs to define the organizations strategy are ad hoc and
mostly …
There is no specific department dedicated to energy
management.
The task is performed by a more generic support group ….
The process to strategy and targets formulation is based on
the…
Clear and specific roles and responsibilities related to the
…
The development of new technologies for improving the …
Ashort term energy planning is usually performed…..
The policy reflects the relationship between the
organisations activities and its relevant aspects, and it is
communicated internally.
Acompetent team on energy management issues is
created.
The communication of roles and responsibilities is
performed using.....
Strategy, policy and goals are established in a well-
structured manner by top management that provides for
external communication.
Threats, opportunities and availability of resources are
evaluated and....
People have clear responsibilities and targets and know
how they link within...
Top management sets short, medium and long term goals
in the energy policy.
Energy management is continuously considered in business
goals setting….
The central authority is also responsible for managing all
energy related external ....
Energy Policy
The related needs are defined on as needed basis in
response…
The organisation doesn’t have its own energy policy
There is a structured process to strategy formulation but a
policy…
The process for defining energy management strategies
and ……
The policy reflects the relationship between the
organisations activities and its...
The process to strategy and targets formulation is based on
the analysis of ...
The executive level has appointed a managing role the
responsibility for .....
Top Management implements an energy policy that goes
beyond legal....
The policy is communicated to all its employees and all
personnel working on....
Top Management establishes implements and maintains
an energy policy with....
Energy Planning Legal Requirements
There is a no structured regulatory alignment process
There is a no structured regulatory alignment process
Energy planning and targets are based on analysis of
process ...
The organisation identifies a person responsible for finding
the laws and...
The development of new technologies for improving the
energy management...
Structured and periodic reviews of planning processes are
in place...
The organisation not only meets legal obligations but also
ethical obligations…
Energy planning is performed based on the short-term,
medium term and ....
The organization operates respecting the principles of
sustainable development…
Significant Energy Uses
The organisation is not conscious of its major Energy
aspects, but it is able…
Estimation of expected energy consumption is done
occasionally …
Energy planning and targets are based on analysis of
process requirements and compliance with legal
obligations, taking into account short-term goals.
The organisation identifies a person responsible for finding
the laws and...
The organisation is aware of its significant energy uses.
The organisation is registered to receive regular updates on
legislation...
Aspecific role charged with disseminating new regulations
has ....
The organisation is aware of the energy consumption of
significant energy uses..
People have clear responsibilities and targets and know
how they link within ...
There is structured process to opportunities definition
toward energy...
Benchmarking against well understood industry best
practices takes place…
The organisation is aware of its significant energy uses from
a sustainability point ....
Energy Baseline & EnPI’s
Estimation of expected energy consumption is done
occasionally …
The organisation is not conscious of its major Energy
aspects, but it is able…
Energy consumption is estimated based on historical
consumption analysis …
The energy transformation and distribution processes are
well managed.
Critical areas for energy efficiency are identified and plans
are developed...
Critical areas for energy efficiency are identified and plans
are developed…
Energy consumption forecasting is detailed at single area
level and ...
Benchmarking against well understood industry best
practices takes place…
The organisation is aware of its significant energy uses from
a sustainability point ....
Energy Action Plans
The planning process is managed in ad hoc manner
The organisation is not conscious of its major Energy
aspects, but it is able…
The organisation identifies all people whose actions may
lead to significant...
Energy consumption is estimated based on historical
consumption analysis …
Critical areas for energy efficiency are identified and plans
are developed...
Critical areas for energy efficiency are identified and plans
are developed…
Estimation of expected energy consumption is done
occasionally …
The organisation is not conscious of its major Energy
aspects, but it is able…
Energy consumption is estimated based on historical
consumption analysis …
The energy transformation and distribution processes are
well managed.
Implementation Training and awareness
The related needs are defined on as needed basis in
response…
The organisation doesn’t have its own energy policy
There is a structured process to strategy formulation but a
policy…
The process for defining energy management strategies
and ……
The policy reflects the relationship between the
organisations activities and its...
The process to strategy and targets formulation is based on
the analysis of ...
The executive level has appointed a managing role the
responsibility for .....
Top Management implements an energy policy that goes
beyond legal....
The policy is communicated to all its employees and all
personnel working on....
Communication
There is a no structured regulatory alignment process
There is a no structured regulatory alignment process
Energy planning and targets are based on analysis of
process requirements...
The organisation identifies a person responsible for finding
the laws and...
.
The development of new technologies for improving the
energy management...
The planning process and continuous energy efficiency
improvement relies on interested parties.
Structured and periodic reviews of planning processes are
in place...
The organisation strives for best technologies available....
.
Energy planning is performed based on the short-term,
medium term and ....
The organization operates respecting the principles of
sustainable development...
Doc. Control
The related needs are defined on as needed basis in
response…
The organisation doesn’t have its own energy policy
There is a structured process to strategy formulation but a
policy…
The process for defining energy management strategies
and ……
The policy reflects the relationship between the
organisations activities..
The process to strategy and targets formulation is based on
the analysis of ...
The executive level has appointed a managing role the
responsibility for .....
Top Management implements an energy policy that goes
beyond legal....
The policy is communicated to all its employees and all
personnel working on....
Design & Procurement
There is a no structured regulatory alignment process
There is a no structured regulatory alignment process
Energy planning and targets are based on analysis of
process …..
The organisation identifies a person responsible for finding
the laws and...
The development of new technologies for improving….
The planning process and continuous energy efficiency ...
Structured and periodic reviews of planning processes are
in place...
The organisation strives for best technologies available....
Energy planning is performed based on the short-term,
medium term...
The organization operates respecting the principles of….
Checking Monitoring
The related needs are defined on as needed basis in
response…
The organisation doesn’t have its own energy policy
There is a structured process to strategy formulation but a
policy…
The process for defining energy management strategies
The policy reflects the relationship between the
organisations activities and its...
The process to strategy and targets formulation is based on
The executive level has appointed a managing role the
responsibility for .....
Top Management implements an energy policy that goes
The policy is communicated to all its employees and all
personnel working on....
The Journey - Energy Management Maturity
No clear
responsibility
No energy policy
No information
system
No Energy Team
As-needed basis
Basic monitoring
using energy bills
No understanding
of SEUs
Targets based on
bill reduction
No O&M training
ad-hoc awareness
of EE program
Zero-cost actions
Relies on limited
Energy Team
Energy Policy by
some staff
Basic EnMS
spreadsheets
Activities plan by
function
Basic metering
Cost reports
based on bills
SEUs known
EnPIs analysed
Global targets
General training
Low cost actions
Policy by senior
management
Activities planned
around SEU’s
Energy Manager &
Energy team
Activities based
on SEUs
M&T system
Obj. & Targets set
based on EnPIs
O&M staff trained
on EE. Awareness
training for all
EE Investment in
short term actions
priorities based on
payback etc.
Regular review of
Energy policy
Strategy and goals
from management
Clear roles in line
with business
Detailed reports
on SEU’s
Sub-meters
Obj. & Targets in
line with business
Training programs
in place.
Criteria in
Investment same
as others
Policy integrated
into company goals
and expectations
EM included
business goals
Innovation and best
practices
Well defined
medium and long
term targets
Forecasting and
linked to ERP
Skills aligned with
best practices
Aware of energy
performance
RET investment
External
Validation &
Recognition
Level 1 Level 2 Level 3 Level 4 Level 5

32. The Maturity Journey
Overview:
Current Position vs. Standard
Savings accrue as each
area is improved

33. Management Systems Integration
BMS Carbon
Reporting
M&T
Single point of access for all Energy information!

34. Single SignOn
Standard
Data Integration
Standard
File Formats
EnMS Software
3rd party Products
Partner/Client End-User
Partner/Client
Configuration
Technical Integration

35. Conclusions

36. Conclusions
EnMS: different from EMIS or BAU
Energy savings: 6-37%; SEP – 10%, 1.7 yr payback
Start well:
Persuade management – the material is there – use it!
Team up with EHS&Q for MS – skills & people-time
Design better M&T after end-use estimates
Pinpoint energy end-use – changes everything
Build or buy an EnMS ICT support – add to M&T

37. Conclusions
For implementation & continuing success:
Integrate with EHS & Q systems
Maximize communication & accountability
Minimize administration cost
Visualize to motivate & track
Communicate all key managers & gen. staff
Track “way of working”, as well as EnPIs & actions
Bottom line: this is not compliance – it’s a common
sense way of working

38. Questions?
To reach me via USA or Ireland office
Contact: paul.monaghan@enerit.com