Establishment of a Sustainable Energy Management System

Mr. Ha Dang SonNational Expert- AEMAS

Managing Director of The Research Centre for Energy and Environment

AEMAS Launching ConferenceSofitel Plaza Hotel,Ha Noi, 21 October 2011

Outline

1. Origin of AEMAS2. Overall design3. Training and certification of energy managers4. Energy Management Gold Standard: certification of

companies5. Why apply? – Energy Managers6. Why apply? - Companies7. Energy Management Gold Standard vs. ISO 500018. AEMAS in other countries9. AEMAS in Vietnam

1. Origin of AEMAS

• Need from ASEAN governments to support their energy efficiency promotion policies (APAEC 1999-2004)

• Problems faced:– Lack of managerial skills among energy managers

(all training program focus on technical aspects)– Lack of interest from end-users to invest in energy

efficiency; cost savings is not strong driver (apart for very energy intensive industries)

1.1 AEMAS Structure

2. Overall design of AEMAS

Problems faced:– Lack of managerial

skills among energy managers

– Lack of interest from end-users to invest in energy efficiency

Solutions:– Develop training

curriculum focused on managerial aspects

– Propose certification for companies based on achievements in energy efficiency, to trigger interests based on CSR, green image, etc.

2. Overall design of AEMAS

“System of certification based on excellence in energy management”

Training and certification of Energy Managers

• Training curriculum focused EXCLUSIVELY on managerial aspects: how to establish and manage and EnMgt system• Two levels of certification: Certified EnMer and Professional EnMer

Certification of companies

• Based on ISO 50001 with additional requirements• Three levels of certification to progressively drive towards EnMgt best practices

3.1 Approach to EnMgt

Technical team

Report to

Management Board

Report to Certified Energy Manager

NOT a technical function!

3.2 Training of Energy Managers• Empowers industries with in-house capabilities to establish and manage

the EnMgt system• Enhances the professional standing of Energy Managers• Training curriculum based on 220-page Energy Management Workbook:

- Role of the energy manager- How to define the energy policy- How to appraise the energy management performance- How to set up and manage: energy baseline, EEI, Energy Accounting Centers, Energy Management Committee, Energy Management Working Procedures, Investment Appraisal for Energy Efficiency Projects, Human Resource Development in Energy Management System, Documentation in Energy Management System- How to establish Energy Target & Plan, including organizing Energy Audit & Analysis, Measurement & Verification- How to integrate the Energy Management System into Business Practice (working ,monitoring and reporting procedures, other management standards, …)- Project management and investment- Energy Management performance review

3.3 Certification processMinimum qualifications:• Bachelor degree or higher in any field with:

- At least 5 years of working experience in factories and/or buildings; and- At least 2 years of working experience in a supervisory and/ or managerial role.

• Or higher vocational certification or higher with:- At least 7 years of working experience in factories and/or buildings and- At least 4 years of working experience in a supervisory and/ or managerial role.

New candidates

with minimum

qualifications Professional Energy Manager / PEM

Appl

icati

on &

Q

ualifi

catio

n As

sess

men

t

Trai

ning

and

Tes

t (C

ompu

lsor

y) Certified Energy Manager / CEM

Submit 2 IEMP/ Interview before panel

Successfully implem

ent a sustainable EM

Gt system

4. Energy Management Gold Standard

Why the Energy Management Gold Standard?• ISO 50001 “Energy Management Standard” is a powerful tool

to assist energy managers set up a sustainable energy management system

• HOWEVER, ISO 50001 does NOT require certified companies to improve their energy efficiency: “ISO 50001:2011 does not prescribe specific performance criteria with respect to energy” (extract from ISO 50001 standard)

• Objective of ASEAN governments: convince energy end-users to improve their energy efficiency > ISO 50001 is not sufficient

4.1 About ISO 50001:20114.1 General requirements

4.2 Management responsibility

4.2.1 General

4.2.2 Roles, responsibility and authority

4.3 Energy policy

4.4 Planning

4.4.1 General

4.4.2 Energy Profile

4.4.3 Energy Baseline

4.4.4 Energy performance indicators

4.4.5 Legal and other requirements

4.4.6 Objectives, targets and action plans

4.5 Implementation and operation 4.5.1 Competence, training and awareness 4.5.2 Documentation 4.5.3 Operational control 4.5.4 Communication 4.5.5 Design 4.5.6 Purchasing energy services, goods and energy4.6 Checking performance

4.6.1 Monitoring, measurement and analysis 4.6.2 Evaluation of legal/other compliance 4.6.3 Internal audit

4.6.4 Nonconformities, corrective, preventive and improvement actions

4.6.5 Control of records

4.7 Review of the energy management system by top management

4.7.1 Inputs to management review

4.7.2 Outputs from management review

4.2 ISO 50001 pros and limitations

+ ISO’s reputation will encourage many industries to adopt ISO 50001 to gain better public image

+ ISO 50001 standard provides detailed specifications on the elements of an Energy Management System

- No guidelines on HOW to establish and manage the EnMgt system: rely on external consultants?

- “ISO 50001:2011 does not prescribe specific performance criteria with respect to energy.”:

- No requirements on energy efficiency improvements- No requirements related to budget and investment

Pros

Limitations

4.3 Energy Management Gold Standard vs. ISO 50001

Corporate energy policy

Energy Management system in place and documented

Trained and certified energy manager

Demonstration of budget spending

Demonstration of EE measures implementation

Verified improvement of EEI

Budget management

Motivation

Energy Management System in place, budget allocated

Real EE improvement; Energy Management System is sustainable

ISO 50001

4.3 Overall Design

•Certified Energy Manager: 3-day training on managerial aspects + evaluation

•Professional Energy Manager: CEM + 2 achievement papers reviewed by committee

Certification of energy managers

•1 star: EnMgt system based on ISO 50001 + CEM + EE budget allocation

•2 stars: PEM + verified improvement in EEI + verified implementation of EE measures

•3 stars: sustainability on EnMgt system (impl. of EE meausres 3 years in a row, achievement of EM best practices

Certification of end-users

Energy Management Gold

Standard

4.4 Certification of companies• EnMgt System in place according to ISO 50001+ Certified Energy Manager (CEM)+ Motivation plan for the personal involved in the EnMgt system+ Budget allocated for investment in EE measures+ Procurement policies and internal investment criteria “EE-friendly”

Validity: 2 years Cannot be renewed: obligation to achieve 2 star In case 2-star certification cannot be achieved within 2 years, the 1-star

certificate is withdrawn. Companies can re-apply for 1-star after 3 years minimum from the date of

withdrawal Companies can apply directly for 2-star anytime.

4.4 Certification of companiesSame as 1 star + (either one of the following):

• Overall EEI improves by 5% (over 2 years)• Overall energy consumption decreases by 5%• EEI improves by 1% on year-on-year basis over past 3 years• EE measures representing at least 50% of the total energy saving potential of recommended measures (internal audit) are implemented and achieving at least 1% overall energy savings• EE measures representing at least 50% of the total energy saving potential of recommended measures (external audit by AEMAS certified auditor and approved by senior AEMAS experts) and achieving less 1% overall energy savings are implemented (include cases where NO EE measures are implemented)• Fuel-switching project implemented (using NG or RE)• Projects involving self-generation of electricity implemented• One RE project implemented• Investment in 5 new EE technologies

Validity: 2 years Renewal gives 3 stars If cannot be renewed: downgrading to 1-star (if criteria met) with only 1 year validity

4.4 Certification of companies

Open only for 2-star certified companiesSame criteria as for 2-star + Energy Manager must be PEM (not CEM), i.e. renewal of 2-star provides 3-starRationale: a company who can meet 2-star certification 2 times in a row, that is over 3-4 years, demonstrate their sustainable and pro-active approach to EnMgt. The 3-star aims to convey this message.

Validity of 3-star: 2 years Renewal confirms sustainability In case a company cannot renew, it is downgraded to 1-star (if criteria are met), with 1-year validity only.

5. Why apply ? – Energy Managers

• Build your professional skills to implement and manage a sustainable energy management system based on ISO 50001

• Enhance your professional standing with certification recognized in 10 ASEAN countries, supported by European Union and UNEP

• Improve career path development

Certified Energy Manager

This Certificate is awarded to

In recognition of his/her fulfillment of all the obligations under theASEAN Energy Management Scheme (AEMAS)

Dr. Hardiv H. SitumeangASEAN Centre for Energy

Jean-Marc AlexandreCountry Coordinator AEMAS Thailand

AEMAS is co-funded by the European Union

Certificate #:

6. Why apply ? - Companies

• Get ready for ISO 50001 certification; make ISO 50001 certification cheaper (in-house capability, audit guidelines)

• Be recognized as top performer, as Energy Management Gold Standard is improved version of ISO 50001

• Improve your Corporate Social Responsibility and build your Green Image

• Improve your energy efficiency and make huge savings

7. Energy Management Gold Standard vs. ISO 50001

• EMGS recognizes your achievements in energy management > portrays you as a top performer ISO 50001 only certifies that an energy management system is in place

• With EMGS, your energy manager has skills to establish and run the system No need for external consultants

• EMGS gives you guidelines to prepare for the audit Not ISO 50001: need for external consultants to prepare for audit Make audit faster and cheaper, as everything is ready up to auditor’s

expectations

• As EMGS is based on ISO 50001, you can make a self-declaration of conformity with ISO 50001, without paying third-party certification fees

8. AEMAS in other countries

• AEMAS already established in all ASEAN countries• 260 energy managers already certified; 100

additional per month• 5 companies already certified 1-star under Energy

Management Gold Standard:– Malaysia: University Technology Malaysia; Telekom

Malaysia R&D– Philippines: San Miguel-Yamamura Packaging

Corporation; Texas Instrument; Toshiba Information Equipment

5. Partners

PelangiCountry Coordinator, Indonesia

Greentech MalaysiaCountry Coordinator, Malaysia

Research Center for Energy and EnvironmentCountry Coordinator, Vietnam

ASEAN Center for EnergyCoordinator

Copper Development Center South East AsiaCountry Coordinator, Thailand, Laos, Cambodia

Energy Practitioners Association of the PhilippinesCountry Coordinator, Philippines

Action for Sustainable DevelopmentTechnical partner, France

Myanma Engineering SocietyCountry Coordinator, Myanmar

Funded by:

ASEAN ENERGY MANAGEMENT SCHEME IN VIETNAM

Content

• Background• Sustainable Energy Management System• AEMAS Structure and Network• AEMAS Target Group• Deliveries• Activities• Planned Schedule of AEMAS Course• Contact

Background• Law on Efficiency and Saving Energy was effective 1/1/2011

– Article 33.34: Responsibilities of the establishment of key energy facility is to apply energy management systems, conduct audits and energy audits, and to assign energy management at the facility.

– Decision 1294/QD-TTg: list of enterprises of the group of key energy

• Vietnam National Energy Efficiency Programme (VNEEP)– Subject to Prime Minister’s Decision number 79/2006/QD-TTg dated 14

April 2006– For a successful implementation of the Program, reaching a saving rate of 3-5% of the total energy consumption in the period 2006-2010 and 5- 8% of the country by 2015

• Establishment of a Energy Management System is Sustainable solution for enterprises

Unsustainable Energy management

Sustainable Energy Management

Regional Level (ASEAN)Regional Level (ASEAN)

AEMAS Structure in Viet NamAEMAS Steering Committee

(EE&C SSN)AEMAS Steering Committee

(EE&C SSN)AEMAS Regional Body

(ACE)AEMAS Regional Body

(ACE)

AEMAS National Steering Committee

(EECO)

AEMAS National Steering Committee

(EECO)

AEMAS Country Coordinator

(RCEE)

AEMAS Country Coordinator

(RCEE)

National Support Network (HUT, ECCs,

Dept of IT, MoC)

National Support Network (HUT, ECCs,

Dept of IT, MoC)

National Level (Vietnam)

National Level (Vietnam)

Local trainers(RCEE, HUT, VESCO)

Local auditors (RCEE, VESCO)

Country Experts (RCEE)

CEMs

PEMs

RCEE Level RCEE Level

Establishment of AEMAS Country Chapter

• AEMAS National Steering Committee: The AEMAS Country Chapters will become instrumental in assisting governments in energy efficiency policy implementation.

It will be compose of Country Coordinator ( RCEE) and other agencies to be nominated by the national EE&C SSN Focal Point.

• AEMAS National Support Network: will consist of a network of key intermediary organizations that will be instrumental in promoting AEMAS in the country and organizing training workshops in different parts of the country:

national federations of industries, training institutions, universities, professional associations, national institutes of engineers, ...

• AEMAS Regional Body and AMEAS Country Coordinator : will be in charge of evaluating applicants; and issue Accreditation for Energy Manager and Certification for End – Users. The AEMAS Regional Body, AEMAS Country Coordinator and AEMAS Country Chapters are still functioning after the end of the Action.

AEMAS – Vietnam Network• AEMAS NSC:

- MOIT/EECO (Focal point)- RCEE

• AEMAS Country Coordinator:- RCEE

• AEMAS NSN:– Technical Universities– Energy Conservation Centers– Business Associations– Industrial Park Managements– Office Building Managements

Target groups

• GT1: Energy managers, factory managers, heads of finance department, general managers of energy – intensive industries ( 500 energy managers in VN)

• GT2: Energy – intensive industries in ASEAN that will apply for certification ( SMEs) (259 in Entry level / 141 in Showcase level)

• GT3: Energy Consultants, energy auditors, ISO 14000 auditors

in 8 ASEAN countries ( 20 local trainers/ 20 local auditors)

Project Deliveries3 country experts

20 local trainers

20 local auditors

20 training workshops

500 CEM

259 entry level & 149 showcase for end – users

AEMAS Activities in the 1st YearInception meeting between EE&C SSN and RCEE on 7th

MayIdentify list of members of the AEMAS National

Support Network in consultation with national EE&C SSN

Focal Point. (in May)Organize the 1st AEMAS Steering Committee in

Vietnam, and introduce AEMAS – Vietnam networks. (10 –

12 June)Prepare a brochure for the AEMAS Country ChapterPrepare Terms of Reference of the national Steering

CommitteeOrganize first meeting of the Steering Committee and

AEMAS National Support Network. ( in Dec/Jan)Organize 1 course for local trainersOrganize 1 pilot training course

Output

Training

20 local trainers was

certified

10 first energy

managers in pilot training

Network

Association of specific industry

Các dự án NGO của

EU

Training curriculum

Relevant to Vietnam’s

background

Based on specific industry

Promotion Activities

Mass- email to 500

enterprises

Corporation Agreement

with various associations

Annual launching

event in HN and HCM

AEMAS Courses • Organize throughout of Vietnam

– Recently arrange in major cities who has concentrated industrial zones

• Organize by industrial group– Building the practical system for better energy

management (Good Practice by Sector)

• Organize 2 course per month– In the 1st week and 3rd of month– Recent courses would be held in November and December

Planned Schedule 2011

Thank you for your attention

www.aemas.org

Disclaimer:This document has been produced with the assistance of the European Union. The contents of this document are the sole responsibility of the authors and can in no way be taken to reflect the views of the European Union.

Contact of AEMAS Vietnam

Coordinator- North and Middle: Ms. Le Thi Tra My

Coordinator- South: Ms. Trinh Thuc Anh

The Research Centre for Energy and Environment

• Mobile:0982040860• Email: my.le@rcee.org.vn

• Mobile: 0919140088• Email: anh.trinh@rcee.org.vn

Unit 402 – 4th Floor, Hacinco Hotel,

110 Thai Thinh, Dong Da District, Hanoi

Tel: (04) 37868592 | Fax: (04) 37868593

THANK YOU