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Energy Management System ISO 50001

Energy Management System ISO 50001

1 of 64
ISO 50001: Energy Management Systems Standard
A Brief Overview
The Advent, Implementation and Integration of
Newly Introduced International Standard
1
ENERGY
2
Energy
3
Energy in Science:
“Energy is something that can do work”.
“Energy is a source of power such as fuels”. (Oxford)
There are two basic forms of energy:
• Kinetic Energy
• Potential Energy
Conservation of Energy:
When energy changes from one form to another, the amount of
energy stays the same. Energy cannot be made or destroyed. This
rule is called the "conservation law of energy".
4
ENERGY MANAGEMENT
“The judicious and effective use of energy to maximize
profits (minimize costs) and enhance competitive
positions” .
Energy Management
5
Reference: Turner & Kennedy: Guide to Energy Management.
6
ENERGY MANAGEMENT SYSTEM BIRTH STORY

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Energy Management System ISO 50001

  • 1. ISO 50001: Energy Management Systems Standard A Brief Overview The Advent, Implementation and Integration of Newly Introduced International Standard 1
  • 3. Energy 3 Energy in Science: “Energy is something that can do work”. “Energy is a source of power such as fuels”. (Oxford) There are two basic forms of energy: • Kinetic Energy • Potential Energy Conservation of Energy: When energy changes from one form to another, the amount of energy stays the same. Energy cannot be made or destroyed. This rule is called the "conservation law of energy".
  • 5. “The judicious and effective use of energy to maximize profits (minimize costs) and enhance competitive positions” . Energy Management 5 Reference: Turner & Kennedy: Guide to Energy Management.
  • 7. ISO 50001 Energy Management System the path, the birth story. 2006 - international community engaged in discussions . Apr/2007 - stakeholders meeting (UNIDO) determine international standard needed . 2005 – started discussions about energy management in several countries . Mar/2008 - ISO approved a proposal from the United States. 7
  • 8. • 2008 China Meeting (UNIDO) – discussing about general structure of standard . • Sep/2008 1st Meeting Washington DC – starting ISO 50001 and making WD establish (work draft) • Mar/2009 2nd Meeting– analyzing WD suggestions approving CD level (committee draft) • Nov/2009 3rd Meeting London – CD analyses and approval of DIS level (draft of international std) • Out/2010 4th Meeting Beijing – construction of FDIS (final draft of international standard) • Jun/2011 Publishing ISO 50001 . • Before Advent of This standard BS EN 16001 published August 2009 has been successfully developed in many countries and famous specially in Europe. 8
  • 9. 9 ISO 50001 ENERGY MANAGEMENT SYSTEM
  • 10. “Set of interrelated or interacting elements to establish an energy policy and energy objectives, and processes and procedures to achieve those objectives.” 10 Reference: ISO 50001 Standard Energy Management System (EnMS)
  • 11. Objectives of Energy Management • To achieve and maintain optimum energy procurement and utilization, throughout the organization. • To minimize energy costs / waste without affecting production & quality. • To reduce import dependency. • To enhance energy security, economic competitiveness, and environmental quality. 11
  • 12. 12 ISO 50001 What is New?
  • 13. ISO 50001: Energy Management Systems Standard-Introduction 13
  • 14. ISO 50001: Energy Management Systems Standard-Introduction ( contd.) 14
  • 16. 16 Benefits • Improved cost savings. • Helps to achieve energy efficiency & compliance. • Coordinating energy programs (Energy Efficiency, Energy Production, Renewable Energy and Alternative Energy) • Facilitates external financial incentives (Electric utility, third party financing, tax benefits and others) • Builds energy management into business practices • Optimize energy-consuming assets • Improves operations and capital cost decisions • Facilitates energy management best practices • Improves the ability to benchmark, measure and report energy intensity improvements • Improves transparency and communication on the management of energy resources • Helps in evaluating and prioritizing new energy-efficient technologies • Framework for promoting energy efficiency throughout the supply chain
  • 17. 17 Environmental Benefits • ISO 50001 also serves as a means of improving an organization's environmental performance, raising operational efficiencies and greening their brand. • GHG EMISSIONS AND CLIMATE CHANGE: The ISO 50001 Standard shall lead to reductions in GHG emissions and other future Environmental impacts of climate change, through the systematic management of energy. • ACID RAIN: Acid rain = SO2 (Sulphur dioxide) + NO (Nitrogen Oxide) + H2O (Water) The reduction of these emissions through better energy management will mitigate harmful impacts of Acid Rain.
  • 18. 18 • AIR QUALITY: Beside greenhouse gases, SO2 and NOx emissions that cause acid rain, emissions of particulate matter contribute to bad air quality. Fuel combustion is the most important source of anthropogenic nitrogen oxide. Energy performance improvement will lead to Air Quality Improvement. • WATER QUALITY: Damage caused by the exploration and transport of oil is related to the pollution of the water. By better management of Energy sources water quality will be improved. • Helps in meeting International GHG reduction targets Environmental Benefits
  • 20. 20 Some Important Definitions Reference: ISO 50001 Standard • Energy baseline: Quantitative reference(s) providing a basis for comparison of energy performance. • Energy efficiency: Ratio or other quantitative relationship between an output of performance, service, goods or energy, and an input of energy. • Energy performance indicator (EnPI): Quantitative value or measure of energy performance, as defined by the organization. NOTE EnPIs could be expressed as a simple metric, ratio or a more complex model . • Energy review: Determination of the organization's energy performance based on data and other information, leading to identification of opportunities for improvement .
  • 22. 1 Scope 2 Normative references 3 Terms and definitions 4 Energy management system requirements 4.1 General requirements 4.2 Management responsibility 4.2.1 Top management 4.2.2 Management representative 4.3 Energy policy 4.4 Energy planning 4.4.1 General 4.4.2 Legal and other requirements 4.4.3 Energy review 4.4.4 Energy baseline 4.4.5 Energy performance indicators 4.4.6 Energy objectives, energy targets and energy management action plans 4.5 Implementation and operation 4.5.1 General 4.5.2 Competence, training and awareness 4.5.3 Communication 4.5.4 Documentation 4.5.5 Operational control 4.5.6 Design 4.5.7 Procurement of energy services, products, equipment and energy 4.6 Checking 4.6.1 Monitoring, measurement and analysis 4.6.2 Evaluation of legal requirements and other requirements 4.6.3 Internal audit of the EnMS 4.6.4 Nonconformities, correction, corrective, and preventive action 4.6.5 Control of records 4.7 Management review 4.7.1 General 4.7.2 Input to management review 4.7.3 Output from management review 22
  • 23. ISO 50001-EnMS Requirement • ISO 50001 specifies requirements for an organization to establish, implement, maintain and improve an energy management system. • Specifies energy management system (EnMS) to : • develop and implement an energy policy. • establish objectives, targets, and action plans which take into account legal requirements. • This International Standard specifies requirements for all factors affecting: • energy supply, uses and consumption • measurement, documentation and reporting, • design and procurement practices for energy using equipment, processes, systems, and personnel. • ISO 50001 does not prescribe specific performance criteria with respect to energy 23
  • 24. • Energy Management Representative: The Organization shall appoint a competent Energy Management Representative. 24 • Energy Management Team: The size of the energy team will vary depending on the size of your organization. In addition to the Energy Representative who leads the team and possible dedicated energy staff, consider including a representative from each operational area that significantly affects energy use, such as: EnMR and Energy Team • Engineering • Purchasing • Operations and Maintenance • Building/Facilities Management • Environmental Health and Safety
  • 26. Plan - Do - Check – Act (PDCA)  ISO 50001 is based on the Plan - Do - Check - Act (PDCA) continual improvement framework and incorporates energy management practices into everyday organizational activities. As per ISO 50001:2011(E): • Plan: conduct the energy use assessment, establish the baseline, energy performance indicators (EnPIs), objectives, targets and action plans necessary to deliver results that will improve energy performance (measurable results related to energy efficiency, use and consumption) in line with the organization's energy policy; • Do: implement the energy management action plans; • Check: monitor and measure processes and the key characteristics of 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 EnMS. 26
  • 27. ENERGY MANAGEMENT SYSTEM MODEL FOR ISO 50001 27 CORRECTIVE AND PREVENTIVE ACTIONS CHECKING IMPLEMENTATION AND OPERATION ENERGY PLANNING ENERGY POLICY MONITORING, MEASUREMENT AND ANALYSIS INTERNAL AUDIT MANAGEMENT REVIEW CONTINUAL IMPROVEMENT
  • 28. ENERGY MANAGEMENT SYSTEM Conceptual Representation of Energy Performance Energy Intensity Energy Consumption Energy Use Other 28 Energy Efficiency Energy Performance
  • 30. • ENERGY POLICY • ISO 50001 defines Energy Policy as “Statement by the organization of its overall intentions, and direction of an organization related to its energy performance, as formally expressed by top management.” • The energy policy provides a framework for action and for the setting of energy objectives and energy targets and is documented, communicated, and understood well within the organization. • Appropriate to the scale and nature of the organization energy use. • Availability of necessary resources and support. • Commitment to comply with applicable regulations and other requirements. • Setting and reviewing of energy objectives and targets. • Supports the purchase of energy efficient technology and services. • Energy policy declaration by an organization is seen as a top management commitment to continual improvement of organization's energy performance. 30
  • 31. 31 ABC Inc. Corporate Energy Policy Objective ABC Inc. is committed to using and purchasing energy in the most efficient, cost effective, and environmentally responsible manner possible. Towards this end, ABC shall: Comply with all legal requirements , other standards or code of practices to which it subscribes. Improve energy efficiency continuously by setting objectives and targets and establishing and implementing effective energy management programs while providing information and resources necessary to achieve them worldwide to support all operations and customer satisfaction. Applicability This policy shall apply to all ABC Inc., facilities, business units, and employees. Approval Mr. CEO & Chairman of the Board Sample Energy Policy
  • 34. • ENERGY PLANNING • Consistent with energy policy and has the following activities: • Energy review - determination of Energy performance for identification of energy saving opportunities • Energy baseline- establishing basis for energy performance comparison. • Energy performance indicators (EnPIs)- setting EnPIs, measure of energy performance. • Objectives- establishing, implementing and maintaining documented energy objectives. • Targets- setting targets consistent with the objectives. • Action plans- formulating action plans to achieve objectives and targets, legal/ regulations and other requirements and shall include: • designation of responsibility. • The means and time frame by which individual targets are to be achieved. • A statement of the method by which an improvement in energy performance shall be verified. • A statement of the method of verifying the results. 34
  • 35. Source: ISO 50001 Standard For Assessment documentation shall include seasonal and annual records of metered electricity, natural gas or other fuel used for stationary equipment. A list of proposed energy saving activities and anticipated energy savings due to conservation actions or equipment modifications are also required. The producer should consider activities to reduce energy usage for items such as: • Lights & Fans • Stationary Engines • Production Machinery • Pumps , vacuum pumps • HVAC • Refrigeration • Miscellaneous 35 Energy Baseline: Quantitative reference(s) providing a basis for comparison of energy performance NOTE 1 An energy baseline reflects a specified period of time. NOTE 2 An energy baseline can be normalized using variables which affect energy use and/or consumption, e.g. production level, degree days (outdoor temperature), etc. NOTE 3 The energy baseline is also used for calculation of energy savings, as a reference before and after implementation of energy performance improvement actions.
  • 36. 36 Record Keeping for Energy Baseline: It is the responsibility of the producer, to maintain records which document energy use. Records include: • Utility and/or fuel purchase bills • Quantities and sources of energy applied; • Dates (month and year) documenting energy use. • Methods of energy use • Actions taken to improve energy efficiency • Removal or addition of energy use components
  • 37. EnPIs: It is now common practice to use Key Performance Indicators (KPIs) to summarize volumes of data into a few critical “nuggets” of actionable information. These KPIs provide both the metrics that will be used to determine the success of a business plan as well as the timely information managers need to track performance and make adjustments to ensure success. A similar approach can be used in the practice of energy management, where KPIs can be designed as EnPIs to measure the success of key elements in an energy management plan and provide energy managers with the timely “nuggets” of information they need to ensure success. Examples may include: • Total Energy Use • Energy Composition • Usage by Energy Source • Unit Energy Costs • Total Energy Costs • Excluding Cooling • Stage of Production and Plant Services 37
  • 38. EnPIs serve as performance rating systems to allow for comparison against similar facilities. Benchmarking can be done in variety of ways. Facility or organizational performance may be benchmarked to: • Past performance — A comparison of current versus historical performance. • Industry average — Based on an established performance metric, such as the recognized average performance of a peer group. • Best in class — Benchmarking against the best in the industry and not the average. • Best Practices — A qualitative comparison against certain, established practices considered to be the best in the industry. The key steps in benchmarking include: • Determine the level of benchmarking ( for example: equipment, process line, facility or organizational). • Develop metrics. • Conduct comparisons. • Track performance over time 38
  • 40. 40 Collect data: • The data must be complete and accurate because it will be used for analysis and goal setting. Consider the following when collecting energy use data: • Determine appropriate level of detail : Some may choose to collect data from sub-meters on individual processes while others may only look at a utility bill. • Account for all energy sources: Inventory all energy purchased and generated on-site (electricity, gas, steam, waste fuels) in physical units (kWh, mMBtu, Mcf, lbs of steam, etc.) and on a cost basis. • Document all energy uses: For the sources identified above, assemble energy bills, meter readings, and other use data. • Gather at least two years of monthly data or a more frequent interval if available. Use the most recent data available. • Collect facility and operational data . it may be necessary to collect non-energy related data for all facilities and operations, such as building size, operating hours, etc.
  • 41. 41
  • 43. • IMPLEMENTATION AND OPERATION • Organization to use the action plans and other outputs resulting from the planning process for implementation and operations and would require: • Competence, training and awareness of work force on their role, responsibilities and duties. • Communicate internally with workforce on energy performance, EnMS and establish a process through which suggestions can be invited to improve EnMS. • Records and document of the implementation and operation of the EnMS scope and boundaries, energy policy , objectives , targets, action plan and other documents as required. • Operational Controls of those operation and maintenance activities related to significant use of energy. • Design of new, modified and renovated facilities, equipment, systems and processes that can have a significant impact on energy performance. • Procurement of energy efficient products, services and energy. . 43
  • 44. 44
  • 46. • MONITORING ,MEASUREMENT AND ANALYSIS • Key characteristics of operations that determine energy performance are monitored, measured and analysed at planned intervals: • Significant energy uses and other outputs. • Energy Performance Indicators (EnPIs). • Effectiveness of Action plans. • Energy measurement plan. • CORRECTIVE AND PREVENTIVE ACTIONS • CONTROL OF RECORDS 46
  • 47. • INTERNAL AUDIT • Conduct internal audits to ensure that Energy Management System (EnMS) confirms to: • Planned arrangements for energy management . • Energy objectives and targets established. • Effective implementation. • EVALUATION OF COMPLIANCE • Legal Requirements. • Other Requirements. 47
  • 49. • MANAGEMENT REVIEW • Top management shall review the organization's EnMS to ensure its continuing suitability, adequacy and effectiveness. Inputs for review will include: • Calendar of review. • Records. • Follow-up actions from previous management reviews. • Energy policy. • Energy Performance Indicators(EnPIs). • Legal compliance and other requirements. • Energy objectives and targets. • Results of the audit. • Corrective and Preventive Actions. • Projected energy performance. • Recommendations for improvement. • Resources. 49
  • 50. • Continual Improvement  A recurring process which results in enhancement of overall energy performance and the EnMS. Output of Management Review will include: • Changes in the energy policy. • Changes in the EnPIs. • Changes in the targets, goals and objectives. • Allocation of resources. 50
  • 51. EnMS CONCLUSIONS • A new international ISO 50001 standard, applicable to any organization whatever the size, industry or geographical location, will benchmark energy management, and establish a framework for organization to manage energy use efficiently. • It is estimated that the standard could influence up to 60 percent of the world’s energy use. • This International Standard is based on the Plan-Do-Check-Act continual improvement framework and incorporates energy management in organization practices. • It does not establish absolute requirements for energy performance beyond the commitments in the energy policy of the organization and its obligation to comply with relevant legislation. 51
  • 52. EnMS CONCLUSIONS • Developing Best Practice Guides on sector specific energy conservation technologies and methodologies will facilitate the implementation of ISO 50001. • ISO 50001 is designed to be used independently, but can be aligned or integrated with other management systems (e.g., ISO 9001 and 14001). • ISO 50001 will be a voluntary system, but may tend to become de facto essential requirement as rapid uptake by competitors will drive non-participating organizations to adopt it as well. • An organization embracing ISO 50001 is likely to further accelerate adoption of energy efficiency practices and to continuously improve its energy performance and cost. 52
  • 54. 54
  • 55. 55
  • 56. 56
  • 57. 57
  • 59. 59 Energy Policy Energy Management System Manual Record Forms, Formats, Flow charts, Plans, Attachments Work Instructions Operational SOPs’ SOPs’
  • 61. "Power consumption was also reduced by 37 % as compared to the 74.3 thousand KWH/million USD production value in 2009. We are confident that our goal of 50 % reduction in 2014 is just around the corner.” Rock Huang, General Manager of Delta’s Dongguan factory. 61 Success Stories • AU Optronics – Taiwan • Reliance Infrastructure Limited – India • Delta Electronics – China “Confident of 50 % reduction” “With the implementation of the ISO 50001 energy management system in the Dongguan region, and production capacity at an even level from January to May of this year, we have already reduced power consumption by 10.51 million KWH as compared to the same period in 2010. This is equivalent to a reduction of 10.2 thousand tons of carbon emissions and a saving of CNY 8 million”.
  • 63. • For Energy & Environment consultancies “ Early Adapters, Early Gains”. 63 Concluding Session • Besides Energy Performance Improvement ISO 50001 is also beneficial for Environmental Performance Improvement. • Energy Performance Improvement Environmental Performance Improvement • Readily available professionals for development and implementation of ISO 50001. • EnMS ISO 50001 can be easily integrated with EMS ISO 14001. • The demand of ISO 50001 is forecasted to increase significantly throughout the world.
  • 64. 64