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The An Overview of EnMS and ISO 50001 has been developed by UNIDO with the financial contribution of the Global Environment Facility, the Swiss State Secretariat for Economic Affairs, the UK Department for International Development and the Government of the Republic of South Africa.
Although great care has been taken to maintain the accuracy of information within the UNIDO training material, neither UNIDO nor the donors or the authors or contributors assume any legal liability or responsibility for consequences which may arise from the use of such training material. Reference to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise, does not necessarily constitute or imply its endorsement or recommendation by UNIDO. The views and opinions of authors expressed herein do not necessarily state or reflect those of UNIDO.
An Overview of Energy Management Systems and ISO 50001
2
An Overview of Energy Management
Systems and ISO 50001
Marco MatteiniIndustrial Development Officer
Energy Branch
United Nations Industrial Development Organization
3
Content
1. Definitions
2. Why Energy Management Systems (EnMS)
3. EnMS Goals
4. What EnMS can achieve
5. EnMS Standards and ISO 50001
i. Why
ii. Background
iii. Overview
iv. Structure
6. ISO 50001 EnMS Pilot Results and UNIDO Experience
7. The importance of a programmatic approach
8. Conclusions
4
Definitions
Energy Management System (EnMS) Systematic and structured approach to the management of energy use
Energy Management System Standard Standardised approach to implementing an EnMS
An organization may decide to base its EnMS on a standard e.g. ISO 50001:2011 (This is best practice)
Certification of EnMS An organization may decide to have its EnMS
certified to a standard (to demonstrate its best
practice to customers, clients and suppliers OR
fulfil a legal or other requirement) Source: UNIDO EnMS Programme
5
Why Energy Management Systems
It saves organizations’ money
It increase reliability of operations
It has a positive effect on productivity and competitiveness
It offers attractive financial and economic returns
Reduces exposure to rising energy prices
Increases security of supply
It reduces the impact on the environment
Why it is not happening?
then
BENEFITS of Energy Efficiency
6
Management focus is on production & not on energy efficiency
Lack of information and understanding of financial and qualitative benefits
Lack of adequate technical skills for identifying, developing and implementing EE measures and projects
Poor monitoring systems and data
First costs more important than recurring costs disconnection between capital and operating budgets
When EE knowledge exists it very often resides with individuals rather than with the company/ organization sustainability risk
Financing
Why Energy Management Systems
BARRIERS to Energy Efficiency
7
The problem: Energy efficiency is not integrated
into daily management practices
The solution: A systematic approach is required & staff at all levels within an organizationneed to be engaged in management of energy on an ongoing basis
The evidence: Most energy efficiency in industry is achieved through changes in how energy is managedrather than through installation of new technologies
Why Energy Management Systems
8
Source: IFC, 2010
Benchmarking study in Russian Foundry sector
Why Energy Management Systems
Energy savings
PRICES of INPUTS FINAL PRODUCT COSTS
9
Source: IFC, 2010
Benchmarking study in Russian Foundry sector
Why Energy Management Systems
Energy savings
PRICES of INPUTS FINAL PRODUCT COSTS
Poor resources
management
Loss of
Competitive Edge=
10
Matching the efficiency of best performing Russian (average
European) foundry could increase operational profitability of
individual enterprises by up to 15%
More than half of the
savings and benefits
could be realized
through better
management practices
and various low-cost
initiatives alone, with
no need for major
capital expenditure
- 57%
- 43%
Better management& low cost initiatives
Capital investment
Average efficiency, Russia
Best performance, EuropeSource: IFC, 2010
Why Energy Management Systems
Benchmarking study in Russian Foundry sector
11
Matching the efficiency of best performing Russian (average
European) foundry could increase operational profitability of
individual enterprises by up to 15%
More than half of the
savings and benefits
could be realized
through better
management practices
and various low-cost
initiatives alone, with
no need for major
capital expenditure
- 57%
- 43%
Better management& low cost initiatives
Capital investment
Average efficiency, Russia
Best performance, EuropeSource: IFC, 2010
Why Energy Management Systems
Benchmarking study in Russian Foundry sector
Poor resources
efficiency
Loss of
Competitive Edge=Poor management
practices
12
easy difficult
Technical feasibility
Investment
high
low
water
gas/electricity
gas
electricity
NOTE: Size of circles proportional to
money savings
Why Energy Management Systems
Financial and technology bias
The experience of many countries shows that companies tend to focus on high-cost and technically-difficult efficiency projects, and to overlook low-cost and easy opportunities
13
Goals of Energy Management Systems
It is all about
improving
Energy Performance!
ISO 50001 DEFINITION
3.12
energy performance
measurable results related to energy efficiency (3.8), energy use (3.18) and
energy consumption (3.7)
Source: ISO 50001: 2011
14
EnMS Goals
Ad-hoc Energy Management Approach
15
Senior management
commit to EnMS
0 3Years
Investment
-20%
-25%
-15%
-10%
-5%
0
+5%
CostsInitial savings
sustained
Housekeeping first –
then investment
EE becomes
company culture
EnMS Goals
Systematic Approach
16
Management focus
Systematic activity
Actively managing energy use and costs, reducing exposure to rising energy costs
Obligation to train and raise awareness
Obligation to provide resources
Document savings for internal and external use (e.g. emission credits, legal reporting requirements)
Reduce GHG emissions without negative effect on operations
Continuity through changes of personnel
Energy and
Cost Savings
What EnMS can achieve
Environment
Benefits
Continual
Improvement
17
Most industrial enterprises that have implemented EnMSachieved average annual energy intensity reductions of 2-3% against 1% reduction of peer enterprises without EnMS (experience of Ireland, The Netherlands, Denmark, Sweden, USA)
For companies new to energy management, savings during the first 2 years are usually in the 10-20% range
UNIDO experience: average organization-wide energy savings in first 1-2 years range from 5% to 15%, with little or no capital investments
What EnMS can achieve
18
EnMS standards proven policy best practice to effectively promote and implement sustainable energy efficiency in industry
Standards provide demonstrated market-driven tools to disseminate Best-Available-Techniques (BAT) and support their implementation
Increased focus on & demand for standards & regulations as tools in the fight against Climate Change (services, trade, negotiation, etc.)
EnMS Standards can underpin and catalyze development or strengthening of policy & regulatory frameworks for energy efficiency
EnMS Standards can boost industrial EE market transformation and
accelerate adoption of EE technologies and services
Harmonization across countries
EnMS Standards and ISO 50001 - Why
19
National EnMS standards (until 2009)• Denmark, Sweden, Ireland, USA, South Korea, Thailand, South Africa,
China.
National EnMS specifications or laws (until 2009)• Australia, Germany, The Netherlands, United Kingdom, Japan
Regional EnMS standards • EN 16001 – European Energy Management Standard – 1 July 2009
International EnMS standards
• International Standard ISO 50001 – Energy management systems – Requirements with guidance for use – 15 June 2011
EnMS Standards and ISO 50001 – Background
20
March 2007 - UNIDO Meeting on EnMS in Industry Recommendation to ISO Secretariat to consider developing an International EnMS Standard
ISO 50001 developed by ISO Project Committee 242 – Energy Management, established in Feb 2008
• Membership as of March 2014
49 countries full members
12 countries as observers
11 organizations-in-liaison, incl. UNIDO
ISO 50001 developed in less than 3 years (record time!)
ISO TC 242 – Energy Management
EnMS Standards and ISO 50001 – Background
21
Purpose of ISO 50001
“..to enable an organization to follow a systematic approach in achieving continualimprovement of energy performance, ..”
Scope of ISO 50001
It is applicable to all organizations
ISO 50001 does NOT prescribe specific performance criteria or targets
with respect to energy.
Source: ISO 50001:2011 – Annex A
ISO 50001 EnMS - Overview
facilities equipment personnel
systems processes procurement
measurement design doc. & report
22
ISO 50001 is based on the Plan-Do-Check-Act continual improvement framework like ISO 9001 & ISO 14001
Source: ISO 50001 :2011
Energy policy
Energy planning
Implementation
and operation
Checking
Nonconformities, correction, corrective and preventive action
Internal audit of
the EnMS
Management
review
Monitoring, measurement and
analysis
Continual improvement
ISO 50001 EnMS - Overview
ISO 50001 targeted to
• Industry
• Power sector
• Commercial & buildings
• Transport
• Others
23
Source: ISO 50001:2011
Energy policy
Energy planning
Implementation
and operation
Checking
Nonconformities, correction, corrective and preventive action
Internal audit of
the EnMS
Management
review
Monitoring, measurement and
analysis
Continual improvement
ISO50001 EnMS – Structure
PolicyManagement Review
Implementation
& Operation
Planning
Checking
Day to day
operations
Management
participation
YesManagement
Responsibility
Source: UNIDO EnMS Programme
24
Is the top management really committed?
Will they support the system?
This is a decision point!
If not, we can all go for coffee now!
Will they make the necessary resources available (technical, financial and human)?
ISO50001 EnMS – Structure
PolicyManagement Review
Implementation
& Operation
Planning
Checking
Day to day
operations
Management
participation
YesManagement
Responsibility
Management Responsibility
Source: UNIDO EnMS Programme
25
Shows the management commitment
Not just a signature!
Define scope of EnMS
Appropriate to scale
Commitment to continual improvement
Make resources available
Framework for target setting and management review
ISO50001 EnMS – Structure
PolicyManagement Review
Implementation
& Operation
Planning
Checking
Day to day
operations
Management
participation
YesManagement
Responsibility
Policy
Source: UNIDO EnMS Programme
26
How much energy am I using?
Where am I using it?
Which are significant energy users?
What is driving it?
Who is influencing its use?
Do I need to have an energy assessment (=audit)? If yes, focus it
Identify and prioritize opportunities
Renewable energy options
Are there legal or other requirements?
Develop Baseline & Energy Performance Indicators (EnPIs)
Set objectives and targets
Action Plan
ISO50001 EnMS – Structure
PolicyManagement Review
Implementation
& Operation
Planning
Checking
Day to day
operations
Management
participation
YesManagement
Responsibility
Planning
Source: UNIDO EnMS Programme
27
Competence, training and awareness
Documentation
Operational control
• Key Area
• Operation and Maintenance
• Service Contractors
• Training
Communication
Design
• Energy Efficient Design (EED)
Purchasing energy, services, goods
ISO50001 EnMS – Structure
PolicyManagement Review
Implementation
& Operation
Planning
Checking
Day to day
operations
Management
participation
YesManagement
Responsibility
Implementation and Operation
Source: UNIDO EnMS Programme
28
Check Operations
• Check operator records
• Check maintenance records
• Equipment checking
Check the system
• Is everyone doing what is required?
Check Performance
• Check EnPIs
• Check trends and costs
Check progress
• Against plans
ISO50001 EnMS – Structure
PolicyManagement Review
Implementation
& Operation
Planning
Checking
Day to day
operations
Management
participation
YesManagement
Responsibility
Checking
Source: UNIDO EnMS Programme
29
Regular presentation
How are we getting on?
• Is performance improving as targeted?
• Problems and barriers to overcome?
• Achievements
What is the plan for next year?
• What do we need in order to achieve this plan?
ISO50001 EnMS – Structure
PolicyManagement Review
Implementation
& Operation
Planning
Checking
Day to day
operations
Management
participation
YesManagement
Responsibility
Management Review
Source: UNIDO EnMS Programme
30
Then
you
start
all
over
again!!
ISO50001 EnMS – Structure
PolicyManagement Review
Implementation
& Operation
Planning
Checking
Day to day
operations
Management
participation
YesManagement
Responsibility
Source: UNIDO EnMS Programme
31
An EnMS provides a structured and systematic approach to integrate Energy Efficiency into an organization’s culture and daily management practices.
An EnMS provides:
• A framework for understanding significant energy uses
• Action plans for continually improve energy performance
• Metrics to track and quantify energy performance against a baseline of energy consumption
• Structure and organizational framework to sustain energy performance improvements over time and change of personnel
ISO50001 EnMS – Summary
32
2-3% saving per year
EnMS
Certification
Source:
Ken Hamilton
HP WW Manager
Environment and Energy Services
ISO 50001 EnMS – Pilot Results
Industry: Defense Contracting
Energy Managem. System guidance/standard: ISO 50001
Key driver for EnMS: Environmental stewardship, government requirements, and cost reduction
Improvement focus: Seven processes using significant amounts of energy
Location: Scranton, Pennsylvania, USA
Product(s): Large-caliber artillery and mortar projectiles
Cost to implement: $255,000
Annual energy cost savings: $956,000
33
Source: Clean Energy Ministerial Global Superior Energy Performance
Partnership (GSEP)
http://www.cleanenergyministerial.org/Our-Work/Initiatives/Buildings-and-Industry
ISO 50001 EnMS – Pilot Results
COREX
DR-Plant
Steel shop
Mills
RHF Electricity demand : 160 MW
Manpower: 548 permanent employees
Sales output: 1,2 million ton HRC/annum
Arcelormittal
Saldanha Works
Energy Efficiency Achievements 2011
Energy Management System Implemented
No. of Projects/Measures 11
Total Capital Investment (USD) 0
2011 Gross Financial Savings (USD) 9,076,000
Overall Payback Period (in years) 0
2011 Energy Savings (GWh) 79.95
2011 GHG Reductions (tons CO2) 77,000
Energy systems optimization, fuels
switching, adjustments/optimization
of production schedules & process ..
.. triggered and driven by EnMS!
2012 Energy Savings > 100 GWh
ISO 50001 EnMS – UNIDO Pilot Results
34
Open joint stock company (about 15%
on Moldovan market)
185 employees
Management started to look into EE in
2009 to reduce production costs and
impact of increased energy pricesLACTIS improvements 2011-2012
Energy Management System Implemented
No. of Measures/Projects 11
Total Capital Investment (USD) 6,900
Gross Monetary Savings (USD) 22,000
Overall Payback Period (in years) 0.32
Annual Energy Savings (MWh) 328
2011 GHG Reductions (tons CO2) 160
LACTIS J.S.C
Value of EnMS/EE investments planned in 2012 for 2013-2014 was 410,000 USD
70% implemented so far
ISO 50001 EnMS – UNIDO Pilot Results
35
36
Baltika
Breweries
ISO 50001 EnMS – UNIDO Pilot Results
ISO 50001 EnMS – UNIDO Pilot Results
Johnson Matthey South Africa
Manufacturing plant in the automotive sector
Johnson Matthey 2012-2013
Annual Electricity Savings (GWh) 9.4
Annual money savings (USD)
- Cost savings from projects
- Cost savings from behavior
changes & operational efficiency
725,000
425,000
300,000
Total annual investments (USD) 580,000
Payback Period (years) 0.8
Completed Stage 1 of ISO 50001
Certification
Started implementation of EnMS in
2012
• Target ISO 50001 certification
Completed implementation in 9
months
4 large projects implemented
• Compressors optimisation;
optimising chillers; production
related projects
37
ISO 50001 EnMS – UNIDO Pilot Results
Johnson Matthey South Africa
Spe
cifi
c En
erg
y p
er
Mo
nth
[M
J/LC
P]
Production per Month [Litres of Catalyst Passed]
South Africa Manufacturing - Specific Energy against Production 2010/11 2011/12 2012/13
Specific energy
per month
(MJ/ units of
production)
Production per month (units of production)
Spe
cifi
c En
erg
y p
er
Mo
nth
[M
J/LC
P]
Production per Month [Litres of Catalyst Passed]
South Africa Manufacturing - Specific Energy against Production 2010/11 2011/12 2012/13
Specific Energy Consumption against Production
38
Source: Reinhard Peglau - Federal Environment Agency Germany - March 2014
ISO 50001 Global Certifications as of March 2014
6,912
39
40
Planned
activities
Operational
South Africa
Moldova
Russia
Turkey
Ecuador
Malaysia
Thailand
Viet Nam
India
Philippines
Egypt
Indonesia
Iran
Ukraine
Colombia
Macedonia
Myanmar
Operational in 17 countries
Planned activities in 10 countries
Other donors
Swiss State Secretariat for Economic Affairs
UK Department for International Development
Government of South Africa
Government of Italy
UNIDO Global IEE-EnMS ProgrammeAs of December 2015
2008
20122015
Decision-makers reached
Enterprises trained on EnMS
Consultants trained on EnMS
Enterprises with EnMS
250 +
35
200 +
600 +500 +
3,000 +
5,000 +
280 +
Operational in 17 countries
(as of December 2015)
UNIDO Program on Energy Management System
41
WHAT HAS WORKED
1. Securing and focusing on initial national champions
2. Building enough national consultants EnMS expertise and skills to ensure successful implementation (long-term coaching and support)
3. Being prescriptive and providing good guidance – but also be flexible and adaptive
4. Providing substantial EnMS expert support to companies – to keep on track and monitoring change and progress
5. Advocating with top management the need for staff training and competency development
6. Rewarding change of practices and performances
7. Identifying the right drivers or catalyst for change
42
ISO 50001 EnMS – UNIDO Experience
LESSON LEARNT
1. Top management engagement is necessary for EnMS implementation … but it is not always sufficient (personal and social norms can interfere)
2. Cultural context is an important factor in transferring knowledge and embracing change
3. Cultural context can vary substantially from country to country lessons learned in a country may not apply or become misleading in others
4. Need to minimize enterprises’ uncertainty about proposed new scenario
5. Communication and partnership/relationship management are critical
6. ISO 50001/EnMS means CHANGE and it is not about technology and
engineering, but mainly about people, processes and practices ...
for many such “CHANGE” is going to be bigger and more difficult!
43
ISO 50001 EnMS – UNIDO Experience
44
Before ISO 50001, in countries with national EnMS standards:
• EnMS standards were typically voluntary
• Part of larger programs targeted primarily to large industrial plants and energy consumers
• Technical assistance was available (training & expert services)
• Offer financial incentives for compliance, usually as part of a target-setting agreement
• Case studies used to publicize benefits
• Public recognition was provided for outstanding performers
The importance of a Programmatic Context
45
Denmark Vol Yes* Yes Yes* Yes Yes Yes Yes Lim 60%
Ireland Vol Yes Yes No Yes Yes Yes Yes Yes 25%
Sweden Vol Yes** Yes Yes** Yes Yes No Yes No 50%e
United States Vol No Yes No Yes No Yes No Yes <5%
Source: A. McKane for UNIDO, 2007
* Denmark has had a CO2 tax since 1992 that affects larger industries. Tax relief is linked to participation
in a voluntary agreement.
** Sweden has had a CO2 tax since 1/2005.Tax relief for process-related electricity linked to participation
in a voluntary agreement.
*** Ireland plans to expand training offerings
Penetration of EnMS in Industry
The importance of a Programmatic Context
46
After the release of ISO 50001:
• Clear increase of EnMS policies, programs and best-practices, either consolidated or introduced voluntary approach still predominant
But
• There is wide variability of context between OECD countries and different
developing regions/economic groups
• EnMS policy and program best-practices were/are in countries with mature
industrial energy efficiency policy frameworks and implementation
experience
• In most, if not all, best-practice cases, industry associations and/or
regional/local institutions have played an important role
• Non-OECD countries face significant challenges in terms of knowledge
gaps, lack of understanding, governance, human & financial constraints
resources for effectively promote and support EnMS and ISO 50001
The importance of a Programmatic Context
Conclusions
Energy Management System is a proven method for industrial
enterprises to achieve Sustainable & Continual improvement
of Energy Efficiency and Productivity!
Commit
Plan
Do
Check kWh
47
ENERGY EFF.
INVESTMENTS
EE is INTEGRATED
in enterprises’ daily
business practices
ENERGY
SAVINGS
MULTIPLE
BENEFITS
GHG EMISSION
REDUCTIONS
48
Thank you for your attention
Marco Matteini
Industrial Energy Efficiency Unit
UNIDO
Vienna International Centre
P.O. Box 300
A-1400 Vienna, Austria
E-mail: M.Matteini@unido.org
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