The document summarizes key aspects of ISO 50001, the international energy management standard. It discusses the Plan-Do-Check-Act (PDCA) cycle for energy management in accordance with ISO 50001. Key steps in the Plan phase include establishing an energy policy and scope, conducting an energy review to identify significant energy uses and opportunities, setting an energy baseline and performance indicators, and developing objectives, targets, and action plans. Implementation and operation (Do) involves ensuring competence and training, operational control, procurement, and maintenance practices related to significant energy uses.

1. Tennessee 3-Star Industrial Assessment Center
ISO 50001: Energy Management
Standard
Kenneth Currie, PhD, PE, CP EnMS
Director
Center for Manufacturing Research
Chattanooga Regional Manufacturers Association
Energy Summit
May 8, 2013

2. Workshop Objectives
• An understanding of the ISO 50001 energy
management system
• What are the benefits of an energy management
system
• Understanding the PDCA cycle for energy
management
• Practical applications for developing Energy
Performance Indicators

3. Energy Management Benefits
• Why do we want to manage energy?
• Low hanging fruit always grow back!
• As a risk management strategy
• Interdisciplinary energy management team
ensures cooperative atmosphere

4. ISO 50001 – Energy Management Standard
• Requires an organization to establish, implement, maintain, and improve an energy
management system, enabling systematic achievement of continual improvement in
energy performance, energy efficiency, and energy conservation.
• Imposes requirements on energy supply and consumption:
– Measurement
– Documentation and reporting
– Design and procurement practices
for energy-using equipment and systems
– Processes and personnel
• Applies to all factors that can be monitored and influenced by the organization to
affect energy use.
• Does not prescribe specific performance criteria with respect to energy.
• Designed to be used independently, yet can be aligned or integrated with other
management systems (e.g., ISO 9001 and ISO 14001). Applicable to all
organizations that use energy.

5. PDCA: PLAN

6. Energy Policy
What does the Standard say?
• Approved by top management
• Appropriate for the organization
• Provides framework for setting and reviewing objectives
and targets
• Supports the purchase of energy efficient products and
services
• Documented, communicated, and understood
• Regularly reviewed and updated

7. Energy Policy
Example:
Capsa Corp is committed to:
Continually improving energy performance
Achieving 25% energy intensity reduction in 10 years
Providing available information and resources to meet
objectives and targets
Supporting the purchase of energy efficient equipment and
systems as appropriate for the organization
Abiding by legal and other requirements

8. Scope and Boundary
Scope and
boundary may
be the same.
“The EnMS includes all
operations of XYZ
Manufacturing Company
located at 123 Main
Street, Nashville, TN.”

9. Energy Planning Process
Planning Inputs
Past and present
energy uses
Relevant variables
affecting significant
energy use
Energy performance
Energy Review
A. Analyze energy
use and
consumption
B. Identify areas of
significant energy
use and
consumption
C. Identify
opportunities for
improving energy
performance
Planning Outputs
•Energy baseline
•EnPI(s)
•Objectives
•Targets
•Action Plans

10. Energy Sources
Total Plant
Energy
Electricity Natural Gas Propane
Off-site
Generated
Steam
Identify all energy sources that cross the fence line!
Primary energy sources enter the boundary of a facility from
an external or internal supplier.

11. Energy Uses
Total Plant
Energy
Electricity Natural Gas Propane
Off-site
Generated
Steam
Motors A/C Heating
Process
Heating
Forklifts
Process
Heating

12. Energy Balance
An energy balance takes the total of all energy
sources and attributes it to specific equipment
and systems.
Looks at energy consumption on a smaller scale
for each energy use (air compressors, lights,
process motors, boilers, dryers, etc.)
Can be determined through submeters, load
analysis, or DOE software – PEP (Plant Energy
Profiler).

13. Energy Balance
Description Size Units Oper hr Load kWh MMBtu % total
Electrical Usage
VSD screw 125 HP 8760 0.5 439,177 1,498 10.0%
Recip backup 50 HP 500 0.7 14,506 49 0.3%
Chiller 100 tons 8760 0.5 350,400 1,196 8.0%
Air handlers 20 HP 8760 0.75 108,916 372 2.5%
Cooling tower 15 HP 8760 0.45 49,012 167 1.1%
Refrigeration 3 tons 8760 0.5 10,512 36 0.2%
Process pumps 50 HP 6600 0.6 164,120 560 3.7%
Votator 20 HP 3300 0.4 21,883 75 0.5%
Homogenizer 40HP 3300 0.4 43,765 149 1.0%
Plant lights 69 kW 6600 1 455,400 1,554 10.4%
Process motors 50 HP 6600 0.4 109,413 373 2.5%
Misc electrical use 352,695 1,203 8.0%
Natural Gas Usage
Boiler 25bHP 6600 0.35 6,909 46.1%
Water heater 300000 Btuh 8760 0.2 526 3.5%
Misc gas use 335 2.2%
Plant total 15,003 100.0%
Annual Energy Usage
Source Usage Units
Natural gas 7,770 MMBtu
Electricity 2,119,800 kWh
Combined Btu 15,003 MMBtu

14. 0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
Step 2.3.2-2 Example Energy Balance
VSD screw
Recip backup
Chiller
Air handlers
Cooling tower
Refrigeration
Process pumps
Votator
Homogenizer
Plant lights
Process motors
Misc electrical use
Boiler
Water heater
Misc gas use

15. SEU
Significant Energy Uses give you the most “bang” for
your buck.
Keep it simple! Choose 1 or 2 to begin with.
SEU’s form the basis of much of the EnMS.
– Operator competence and training
– Procurement
– Operational Controls
– Monitoring, Measuring, Analysis
– Objectives, Targets, Action Plans

16. SEU Determination
Must use and document a method for establishing
significant energy consumption.
•Energy Balance
•Pareto (80 / 20 rule)
•Ranking Methods
•Benchmarking

17. Identify Energy Opportunities
Develop criteria:
• Estimated energy or cost savings
• ROI, rate of return
• Length of implementation period
• Possible safety, health, environmental issues
• Maintenance impact
• Production impact
• Organizational goals

18. Energy Planning Process
Planning Inputs
Past and present
energy uses
Relevant variables
affecting significant
energy use
Energy performance
Energy Review
A. Analyze energy
use and
consumption
B. Identify areas of
significant energy
use and
consumption
C. Identify
opportunities for
improving energy
performance
Planning Outputs
•Energy baseline
•EnPI(s)
•Objectives
•Targets
•Action Plans

19. Energy Metrics
Purpose of energy metrics
• We need to know if performance is improving
• We need to verify savings of improvements
• We need to know how much energy we are using
• We need to know if we are meeting our objectives
and targets
• We need objective support for decision making
ISO 50001 Metrics = EnPI and baseline

20. Relevant Variables
Relevant variables are factors that affect energy
performance.
• Weather
– Temperature
– Humidity - Cooling degree days
– Precipitation - Heating degree days
• Production related
– Operating hours - Operating temperature
– Variation in types of production - Operating pressure
– Production rate
• Operator training
• Maintenance

21. Simple EnPI
EnPI = Annual Energy Use / Annual Production
(MMBtu / yr) (e.g. lbs/yr, tons/yr, units/yr)
• Easiest to use and calculate
• Sufficient if other variables don’t impact energy consumption
• KISS rule – keep EnPI as simple as possible

22. Simple EnPI
• Did the plant start using energy less efficiently?
• Or, are other variables impacting energy consumption?

23. Statistical Models – Linear Regression

24. Energy Baseline
• Basis of comparison for evaluating energy
performance.
• Use information in initial energy review
• Facility determines the time period
• Apply data from initial time period and model to
develop energy baseline
• Measure future energy consumption against
baseline to determine energy performance
improvement

25. Objectives and Targets
Policy
Overall direction relative to energy performance
Objective
Long term, specific,
supports policy
Objective
Long term, specific,
supports policy
Target
Specific, measurable,
achievable, timed,
supports objective
Target
Specific, measurable,
achievable, timed,
supports objective
Target
Specific, measurable,
achievable, timed,
supports objective

26. PDCA - DO

27. Competence and Training
What does the standard require?
• Ensure competency of individuals who work with
significant energy uses
– Education
– Skills
– Training
– Experience
• Identify training needs and meet those needs

28. Awareness
The standard requires awareness of individuals
working for or on behalf of the organization.
– Responsibility in meeting the EnMS requirements
– Importance in meeting the EnMS requirements
– How their activities impact energy consumption
– Energy performance benefits
Awareness affects ALL employees, not just
those working with SEUs.

29. Communication
The standard requires:
Internal communication of energy performance
and EnMS
Establish process for comments and suggestions
External communication decision – Do we
communicate externally or not?

30. Procurement
Organizations must make the connection between
purchasing and the impact on its energy
performance. Will a purchase significantly affect
energy performance?

31. Purchasing Services
• Energy service providers who will affect SEUs
need to be evaluated
– Maintenance service contractors for SEUs
– Project engineers/managers/architects
– Energy consultants
• Informed that procurement is partly based on
energy performance
• Major component of assessment is competency

32. Design
The standard requires:
Consider:
• Energy performance in improvements in design;
• Operational control in design
For:
• New or modified facilities, equipment, systems, and processes
• That have a significant impact on the organization’s energy performance
• Where appropriate, incorporate energy performance into design activities
(such as procurement, specifications, and design).

33. Operational Control
What is required by the standard?
• Determine and plan operations associated with SEUs
• Set criteria for operation and maintenance of SEUs
• Communicate to appropriate personnel
• Operate and maintain according to criteria
Leads to:
SIGNIFICANT ENERGY SAVINGS AND BENEFITS
WITHOUT CAPITAL EXPENDITURE!

34. Maintenance
The primary purpose of maintenance is to maintain
reliability and availability
If equipment is properly maintained it is more likely to be
energy efficient also
Reactive maintenance wastes energy
The cost of the energy will often by more than the cost of
the maintenance
All significant energy users need to be maintained correctly
Applies to external service contracts as well as internal
maintenance staff

35. Documentation
What is a document?
• Electronic or written instruments used to communicate
expectations
• What you do and how you do it.
What is a record?
• Document stating results achieved or providing evidence of
activities performed
• Doing what you said you would do

36. ISO 50001 Documents
Some example documents:
• Scope and boundary of EnMS
• Energy policy
• Energy planning
• Methodology and criteria used to develop the
energy review
• Methodology for determining and updating the
EnPIs

37. ISO 50001 Records
Some example records:
• Energy baseline
• Training records
• Decision regarding external communication of
EnMS
• Results of design activity
• Measurement – calibration, energy review, etc
• Audit results
• Management review records

38. PDCA - CHECK

39. Monitoring, Measurement, and Analysis
What does the standard require?
• At planned intervals key characteristics are:
– Monitored
– Measured
– Analyzed
• Results are recorded
• Measurement needs are defined, reviewed, and
implemented
• Measurement equipment provides accurate and
repeatable data
• Calibration records are kept

40. What are Key Characteristics?
• Significant Energy Uses
• SEU relevant variables
• EnPIs
• Other outputs from energy review:
– Energy sources, uses, and consumption
– Future energy use
– Energy improvement opportunities
• Progress toward meeting objectives and targets
• Expected vs actual energy consumption
evaluation

41. Analysis
• What are the important analysis questions?
– Has your energy performance improved?
– Has the energy balance changed?
– Are SEUs changing?
– How effective is the system in meeting objectives and targets?
• What type of data analysis will be used?
– Absolute analysis
– Control limit analysis
– Tend analysis
– Benchmarking
• How often will data analysis be completed?
• How will data and analysis results be recorded?
• How will significant deviations be handled?

42. Internal Auditing
What does the standard require?
• Audits are conducted at planned intervals
• Ensures
– Conformance with ISO 50001
– Conformance with organization’s EnMS
– Maintained and effective
– Improves energy performance
• Audit plan and schedule
– Considers status and importance
– Considers results of previous audits
• Objective and impartial
• Records
• Results reported to top management

43. Continual Improvement
Internal audits lead to continual improvement
• Identify what the organization is doing well and where they need to
improve
• Nonconformities lead to actions which ensure continual
improvement of energy performance and the EnMS
• Internal audit results and the status of corrective/preventive actions
are reviewed at management review
• The organization determines actions to be taken and ensures the
actions are effective
• This process effectively starts the Plan-Do-Check-Act continual
improvement cycle over

44. Nonconformances
Definition: Non-Fulfillment of a requirement
• The organization is not doing what it said it would do
• What is being done is not working
• Requirement are not being met
• The intended energy performance improvement is not
being obtained.

45. Corrective and Preventive Action
Addresses actual and potential nonconformances
What does the standard require?
• Make corrections
• Identify the root cause
• Determine actions appropriate to the magnitude
and consequences
• Record
• Review for effectiveness

46. PDCA - ACT

47. Management Review
Involves fact based decision making by top management.
What does the standard say?
Top management shall review the EnMS
At planned intervals to ensure
Suitability
Adequacy
Effectiveness
Maintain records

48. Typical Decisions
• What is the status of the EnMS?
• What strategic changes are needed?
• What changes are needed, expected, or have resulted in
terms of energy performance?
• Are there any external requirements that will affect the
EnMS?
• Are there any changes internally that will affect the EnMS?
• Is there a need to change current improvement objectives?
• What resources are needed?
• Is the EnMS suitable and effective and achieving continual
improvement in energy performance?

49. Inputs
• Energy policy
• Objectives, targets, action plans
• EnPIs and past, current, and projected energy
performance data
• SEUs and their performance and changes
• Internal audits
• Planned changes in design and procurement
• Status of corrective and preventive actions
• Recommendations and opportunities for improvement
• Action items from previous mgmt review

50. Outputs
Decisions or Actions related to:
• Energy Performance
• Energy Policy
• EnPIs
• Objectives and Targets
• Resource Allocation
• Other EnMS components

51. More information
DOE eGuide for ISO 50001
https://save-energy-now.org/EM/SPM/Pages/Home.aspx
http://www1.eere.energy.gov/energymanagement/
Acknowledgement: This project is funded under agreement with the
State of Tennessee. This material is based upon work supported by
the Department of Energy under Award Number DE-EE0000160.
CDFA 81.041.