ENERGY CONSUMPTION & UTILIZATION TRENDS ENERGY MANAGEMENT WHAT IS ISO50001 STANDARD? ISO55001 vs. ISO50001? THE WAY FORWARD

1. ISO55000 AND THE FUTURE OF ASSET MANAGEMENT
Asia Pacific Regional Conference & Exhibition
ENERGY MANAGEMENT :
SUSTAINABLE IMPLEMENTATION
FOR BUSINESS SUSTAINABILITY
Zaini Abdul Wahab
Sdn Bhd,Malaysia
12-14 November 2013
Bali, Indonesia

2. OUTLINE
 ENERGY CONSUMPTION & UTILIZATION
TRENDS
 ENERGY MANAGEMENT
 WHAT IS ISO50001 STANDARD?
 ISO55001 vs. ISO50001?
 THE WAY FORWARD

3. ENERGY DEMAND & UTILIZATION
TRENDS

4. GLOBAL ENERGY DEMAND
Source: IEA Energy Outlook 2011




Increases by 1/3 from 2010 to 2035, with China & India accounting for 50% of the growth
Global energy consumption is expected to increase by a factor of 3 over the 21st century.
The growth in primary energy consumption is expected to decrease in the future due to assumed levelling
of population growth & improved energy efficiency
Urbanization – Urban areas now house 50% of the world’s population, use 2/3 of global energy, and
produce 70% of global carbon emissions

5. GREEN HOUSE GASES EMISSIONS
Source: IPCC (2007)
Delivering energy requires a long-term commitment to investments &
technologies
More than 50% of GHGs are from fossil fuel combustion
Urbanization – Urban areas now house 50% of the world’s population, use
2/3 of global energy & produce 70% of global carbon emissions

6. ENERGY MANAGEMENT

7. COMMON TERMINOLOGIES
ENERGY EFFICIENCY
Delivers more services for the
same energy input, or the same
services for less energy input;or
Ratio of an output of
performance, service,goods or
energy & an input of energy
ENERGY MANAGEMENT
All activities to ensure efficient
use of energy in the organization
ENERGY PERFORMANCE
Measurable results related to energy
efficiency, energy use & energy consumption
ENERGY MANAGEMENT SYSTEM(EnMS)
Set of interacting/interacting elements to
establish an energy policy, objectives,
processes &procedures to achieve those
objectives

8. WHY MANAGE ENERGY IN ASSETS?
ENERGY USING
SERVICES
ASSETS
SALES/LEASE & ENERGY COST SAVINGS
INCREASE USERS’ COMFORT
ENERGY TO OPERATE
BOOST IMAGE & VALUES

9. ASSET RESPONSIBILITY PERIOD
Energy Supply &
Utilization

10. WHERE WE WASTE?

11. WHERE TO SAVE?...BUILDING FACILITIES
SAVING POTENTIALS
 Pumps (25% - 35%)
 Chiller (20% - 25%)
 AHU/FCU (25% - 35%)
 Cooling Tower(15% - 20%
 Lighting System (40-60%)

12. WHERE TO SAVE?...MANUFACTURING FACILITIES
(Source: Energy Conservation Centre of Japan,
2011)

13. WHY ENERGY MANAGEMENT?
Profitability
Sustainability
Competiveness
Competency
Working environment
quality
Corporate Image
Operating Costs - Energy
Risks – price fluctuation &
supply shortages
Pollution
Carbon emission
Depletion of fossil fuel
 LOWER ENERGY BILLS
 IMPROVED AIR QUALITY
 REDUCED GREENHOUSE
GASES
 INCREASED ENERGY
SECURITY
 DEFERRED NEEDS TO
INVEST IN NEW
INFRASTRUCTURE

14. ENERGY MANAGEMENT PROCESS
Fact Findings
Planning &
Target Setting
Managing
Energy
Performance
for sustainable energy management
implementation

15. BASIC EnMS COMPONENTS & CYCLE
MANAGEMENT
COMMITMENT
MANAGEMENT REVIEW
POLICY
SYSTEM &
PERFORMANCE
CHECKING
PLANNING
IMPLEMENTATION &
OPERATION

16. KEY STEPS TO IMPLEMENT EnMS
1. DECLARE POLICY
2. ESTABLISH INTERNAL
ORGANIZATION
7. Set Target
& Values
8. Plan Saving
Measures
9. Implement
Measures
Daily Management Cycle
4. CREATE PROCEDURE/
STANDARDS
10. Verify results &
Evaluation
5. MANAGE ENERGY
PERFORMANCE INDICATOR
11. Standardize &
synchronize result
with procedures
12. Review& Set
Higher Targets
Improvement Cycle
3. UNDERSTAND CURRENT
ENERGY USE
6. Identify Problems

17. CHECKING ENERGY PERFORMANCE
MEASUREMENT & MONITORING
Baseline(s)
Energy Performance
Indicator(s)

18. SUCCESSFUL STORIES
COUNTRY
JAPAN
40 % reduction in primary
energy consumption/GDP
(1973-2004)-ECCJ,METI,Japan
ORGANIZATION
EASTMAN CHEMICAL COMPANY
Energy use intensity reductions of 27%t, 26% &
9% for the respective buildings and averaged at
21 % reduction- -2013 Environmental Leader
IRELAND
160 companies - 60% of Ireland’s industrial energy use
2% improvement in energy performance per year
Long-term members - have improved energy performance by 33% (1995 and 2010)
Energy Management Standard helps up to €150m in avoided energy costs (2005-10)
THAILAND
Targeting 25 % reduction in
Energy Index
(2005-2030)-DEDE,Thailand
TREASURY BUILDING, MINISTRY OF FINANCE OF MALAYSIA
17% reduction of electricity bill in 2011
based on 2010 baseline consumption – SEDA Malaysia
IDAHO NATIONAL LIBRARY,USA
Petroleum fuel use reduced cumulative
20.3% from the FY 2005 baseline
-2013 Environmental Leader

19. WHAT IS ISO50001 STANDARD?

20. SCOPES
Standardization in the field of energy management:
energy supply,
procurement practices for energy using equipment
and systems,
energy use, and any use-related disposal issues.
Measurement of current energy usage &
implementation of a measurement system to
document, report & validate continual improvement
in energy management.

21. HOW ISO 50001 WILL HELP?
 To provide organizations with technical & management
strategies to increase energy efficiency, reduce costs,
and improve environmental performance.
 To provide a recognized framework for integrating
energy efficiency into management practices.
 Multinational organizations - access to a single,
harmonized standard for implementation across the
organization with a logical and consistent methodology
for identifying and implementing improvements.

22. VALUES TO ORGANIZATIONS
 Aligns energy management with organizational priorities
 Ensures long-term sustainability of the EnMS
 Encourages employee buy-in and participation
 Provides visible demonstration of environmental
leadership to external parties
 Helps to achieve and sustain desired results
22

23. ISO55001 vs. ISO50001?

24. STANDARDS FOR ASSET MANAGEMENT
 ISO 55001
 The requirements specification for
an integrated, effective management
system for assets- defines
requirements for a management
system
 IS0 55002 provides
 Guidance for the implementation the
system
 ISO50001:2011
 Energy
Management
Systems Requirements With
Guidance For Use
Energy
performance
improvement
for energy
using services
 ISO 55000
 An overview of the subject of asset
management and the standard terms
& definitions to be used

25. INTEGRATION: ISO50001 & ISO55001
Integration of some of
the key requirements
in both standards
P-D-C-A cycle concept

26. ISO50001 vs. ISO55001
ISO50001
Management Responsibility
Top management
Management Representative
Energy Policy
Structure, authority & responsibility
Asset management policy
ENERGY PLANNING
PLAN
ISO55001
ASSET MANAGEMENT STRATEGY,
OBJECTIVES & PLAN
General
Legal requirements &other requirements
Energy Review
Analyse energy use and consumption
Identify Significant Energy Use(SEU)
Identify, prioritize & record energy performance
improvement opportunities
Energy baseline
Energy performance indicator(EnPI)
Energy objectives, energy targets & action plan
Asset management objectives
Asset management plan(s)

27. ISO50001 vs. ISO55001..c’tnd
IMPLEMENTATION AND OPERATION
DO
Competence, training and awareness
Communication
Documentation
ASSET MANAGEMENT
ENABLERS & CONTROLS
training, awareness &
competence
Communication, participation &
consultation
Asset management system
documentation
Operational control
Design
Life cycle activities.
Tools, facilities & equipment
Procurement of energy services, products, equipment &
energy
CHECKING
CHECK
Monitoring, measurement &analysis
PERFORMANCE ASSESSMENT & IMPROVEMENT
Performance & condition
monitoring
Evaluation of compliance with legal requirements & other
Evaluation of compliance
requirements
Internal audit of the EnMS
Audit
Nonconformities, correction, corrective action &
preventive action
Improvement action
Control of records
Records
ACT
MANAGEMENT REVIEW
General
Input to management review
Output from management review
IMPLEMENTATION OF
ASSET MANAGEMENT
PLAN(S)
MANAGEMENT REVIEW
Investigation of asset related
failures, incidents & non
conformities

28. HOW TO SELL?
1. Connect proposal
with current
organizational priorities
2. Convince key
players/
influencers
6. Present
feasible funding
options
ENERGY
MANAGEMENT
PROGRAM
5. Confirm major
costs and benefits to
the business
3.Confirm &
interact with
decision makers
4. Identify risks &
prepare management
strategies

29. KEY SELLING POINTS
COMPANY
 NO RISK strategy to boost profits
 REDUCE business costs – intensive
energy using assets
 RISING & UNCERTAIN energy costs
 INCREASE competitiveness
 STAY ING in business from cash
flow savings
 INCREASING mandatory
compliance & requirements by
legislations & markets
 Best available techniques, carbon tax
,Emissions Trading
 Energy Using Products & Services
DIRECTIVES
COUNTRY
 SECURITY of energy
supply & price
 Imperative for the
NATIONAL ECONOMY
especially for countries
with heavily subsidized
energy prices
 REDUCE dependence
on imported fuels
 Adverse
ENVIRONMENTAL
IMPACTS of fossil fuel
use

30. THE WAY FORWARD

31. THE CORPORATE TRENDS…
Survey on 250 CFOs in 14 countries by Deloitte - CFOs are increasingly aware the benefits
sustainability can bring to the business. 2/3 respondents said they are involved in driving
sustainability strategies .More than 50 % said their involvement in pushing sustainable
practices has increased in the past year.
UN Global Compact of 766 CEOs worldwide-93 % of CEOs
said sustainability issues will be a critical factor to the
future success of their business
2012 Ernst & Young Survey – 66% of executives saw an increased amount
of sustainability-related inquiries from investors in the past year .70%
inquiries focused on energy management and greenhouse gas emissions
and more than ½ questions about sustainability reporting
University of Missouri researchers - consumers would be more willing to pay
between 15 & 20% more for retail products from companies that support
sustainable practices
Building owners can see reduced operating costs,
increased building values, greater return on investment,
and higher occupancy from new and retrofitted green
buildings
Companies may receive reputational benefits from achieving green building
certifications . A 2011 survey of U.S. adults- 64% would prefer to patronize a
business whose facility is certified as green, while 48% indicated that green
certification of a facility improves their image of a company.
UNEP - GEO-5 for Business
Impacts of a Changing Environment on the Corporate Sector

32. More than 50%
of executives consider
sustainability—the management of environmental,
social, and governance issues—“very” or “extremely”
important in a wide range of areas, including newproduct development, reputation building, and
overall corporate strategy.
-McKinsey Global Survey Result, March 2010

33. TOWARDS ENERGY EFFICIENT SCENARIO :
NEW POLICY
 Economically viable efficiency measures can halve energy demand
growth to 2035

34. GLOBAL ENERGY EFFICIENCY POTENTIALS
 Energy efficiency potential used by sector in the New Policies Scenario
 2/3 of the economic potential to improve energy efficiency remains
untapped in the period to 2035

35. SEA: INVESTMENT POTENTIALS (US$MIL.)
Biggest potentials in the
industrial sector
The total market size = US$6.7 billion;
Industrial = US$2.9 billion(44%)
Commercial = US$3.7 billion(56%)
source: www.reexasia.com

36. ENERGY MANAGEMENT IMPACTS FOR BUSINESS SUSTAINABILITY
INTRODUCTION &
AWARENESS
IMPLEMENTATION &
SUPPORT MEASURES
PERFORMANCE
MONITORING&
MEASUREMENT
IMPROVED
•Energy
Performance
•Competitiveness/
•profits
•Environmental
quality
REDUCED
•Energy
consumption &
costs
•Pollution
•CO2 emissions
CREATED
•Business & job opportunities
•More experts/workers from energy efficiency industry
•New source of economic growth & DDIs

37. THANK YOU!
zaini@cnsgroup.com.my
+6019 2152700
www.cnsgroup.com.my