development & implementation of an enms -...

Trevor Floyd – MSc CEnv CEng MEI CMarEng MIMarEST ACIBSE MCMI

Development & Implementation of an EnMS - ISO50001

Course Tutor

Trevor Floyd Chartered Energy Engineer Chartered Environmentalist Chartered Marine Engineer

Low Carbon Consultant Carbon Trust Consultant

BSI - Accredited Consultant Carbon Trust Standard - Assessor

ISO14001, BS EN 16001, ISO 50001 specialist British Standards Institute – Committee Member

EU-ETS - Verifier CIBSE - CPD Trainer

Energy Institute – Accredited Course provider United Nations – ISO50001 Specialist

Principal Consultant at

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The standard – ISO 50001

Agenda The importance of energy management

The development / creation of ISO50001

Implementation of an effective Energy Management System

Conclusion / Questions

Item 1

Item 2

Item 3

Item 4

Item 5

To appreciate the importance of Energy Management To assist others to implement Energy Management Solutions To understand the relevance of effective Energy Management To understand the structure of ISO 50001 To appreciate how to assess and Energy Management System in its entirety To confirm the suitability of systems for individual organisations

Our learning Objectives

You cannot manage and control something which you don’t actually measure and

understand!

FACT

Energy Efficiency & Waste Minimisation

Energy is a resource: like money, people and stock Waste is a bad use of resources Energy efficiency adds value Reducing waste adds value

ENERGY MANAGEMENT

Payless per unit of electricity

Negotiate best tariff

Select best tariff

Cost avoidance measures

Change Of Fuel

Generate own power

Reduce the amount

of energy consumed

Capital Investment

High cost measures

Low cost measures

Reduce waste Using existing

equipment

PROACTIVE Waste

avoidance

Planned Maintenance

Efficient Operation

REACTIVE Waste

avoidance

Management Information

(M & T)

Applying Energy Management Principles

STEP 1 COMMITMENT A clear commitment from the top Management Team Delegate full responsibility to a single person in authority

It is no point starting on the journey, unless we have the above.


STEP 2 HOW IS THE SITE PERFORMING AT PRESENT? AUDIT!

Study Energy data Last 3 years supplier invoices Sub-meter records if available Electricity ½ hour data, if available Compare to trade/industry benchmarks, e.g.:- kWh/sq.m, kWh/tonne What is the average price per unit for each fuel?

Applying Energy Management Principles STEP 3 CARRY OUT A SITE SURVEY Breakdown the site into its component parts Processes Motive power Lighting Compressed air Space heating Water heating


STEP 4 SET UP A PERMANENT MONITORING SYSTEM Obtain supplier ½ hour information Consider sub-metering on heavier users Energy Management Software aM&T – 5% CO2 allowance in Part L and Ekes Benefits if AMR in place for CRC

INFORMATION / INFORMATION / INFORMATION

Applying Energy Management Principles STEP 5 CREATE ACTION PLAN - contains No cost measures Low cost measures Capital investment Staff training/energy groups Purchasing Policy Set realistic targets, for the site and for energy centres, against sensible benchmarks e.g.:- production, floor area, temperature


STEP 6 SIMPLE HOUSEKEEPING MEASURES – NO COST Match load profiles against perceived information Why is base load so high? What causes the high consumption on Sunday? Space heating usage in summer.


STEP 6 (Cont.) Check controls and reset for maximum efficiency Check for compressed air leaks Switch off equipment when not in use Changes to maintenance regime PUT RIGHT AND ENSURE IT STAYS RIGHT


STEP 7 LOW COST MEASURES Upgrade controls e.g.: TRVs, lockable thermostats Insulation improvements Timers/thermostats on heating Simple sensors and controls

Applying Energy Management Principles STEP 8 CAPITAL (Future) INVESTMENT

Replacement lighting Variable speed drives/High efficiency motors New process technology Replacement boilers / heaters


STEP 9 STAFF TRAINING/ENERGY GROUPS

regular staff briefings performance reporting energy promotion

Applying Energy Management Principles STEP 10

PURCHASING POLICY Install high efficiency lighting on refurbishment Install high efficiency motors instead of rewinding existing units Can you purchase plant under Enhanced Capital Allowances? Is operating cost (life cycle) considered as well as purchase price?


A B

C D

E F

G

Most efficient

Least efficient

Potential operational saving

Applying Energy Management Principles STEP 11 SET REALISTIC OBJECTIVES & TARGETS

For the site For Energy Centres / Processes / Services Use appropriate criteria, e.g.:- degree days for temperature weight for production


AND FINALLY Feed the information back into the Action Plan Refine the plan Adjust the targets Keep on doing it!

• Understanding fuels • Technical Skills • Compliance skills • Information collection • Information Analysis • Resource availability • Commitment • Time

Key Challenges

Site energy consumption

25

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Incremental World Energy Demand Incremental energy demand by sector and region in the New Policies Scenario, 2008-2035

Source: IEA World Energy Outlook 2010

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What needs to be done

Source: IEA/UNIDO 2010

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WHY Energy Management Systems?

The problem: Energy efficiency is not integrated into daily management practices!

The solution: A systematic approach is required and top management must be engaged in the management of energy

The evidence: Most energy efficiency in industry is achieved through changes in how energy is managed rather than through installation of new technologies

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Ad hoc approach to energy management..

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Systematic Approach Senior management commit to EnMS

0 3 Years

Investment

-20% -25%

-15%

-10%

-5%

0

+5% Costs

Initial savings sustained

Housekeeping first – then investment

EE becomes company culture

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Case Study – Benchmarking in Foundry sector

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, Europe

Source: IFC, 2010

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Energy Management System (EnMS) An EnMS provides a structured and systematic

approach to integrate Energy Efficiency into industry corporate culture and daily management practices.

A framework for understanding significant energy uses

Action plans for continually improve energy performance

Structure and organizational framework to sustain energy performance improvements over time and change of personnel

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ISO 50001 Energy Management Standard

ISO 50001 is based on the Plan-Do-Check-Act continual improvement framework like ISO 9001 and ISO 14001

Compliance with the standard • Self-evaluation and self- declaration

of conformance

• Certification by external organization

ISO 50001 target to • Industry & power

sector • Commercial &

buildings • Transport

PLAN

DO

CHECK

ACT

Source: ISO 50001

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

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2-3% saving per year

EnMS Certification

What can an EnMS achieve?

Source: Ken Hamilton HP WW Manager Environment and Energy Services

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What can an EnMS/Standard achieve?

Management focus Systematic activity Obligation to train and raise awareness Obligation to provide resources Continuity through changes of personnel

Most industrial enterprises that have implemented EnMS achieved average annual energy intensity reductions of 2-3% against 1% reduction of business as usual (IRL, NET, DEN, USA)

For companies new to energy management, savings during the first 2 years are 10-20%

Energy and Cost Savings

Continual Improvement

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EnMS Standards – Some results Energy Management Standards – Programmatic Context

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%

Japan^ Man No Yes Yes Yes No Yes Yes Yes 90%

Source: McKane A. for UNIDO

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ISO 50001 and Trade

Source: McKane, A. and Olsen, D., LBNL 2009

ISO 9000 Certificates

0

5000

10000

15000

20000

25000

30000

35000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Tota

l Cer

tific

ates

(Sou

thea

st A

sia)

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

Tota

l Cer

tific

ates

(Nor

ther

n &

Wes

tern

Eur

ope)

South-Eastern Asia Northern and Western Europe

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ISO 50001 and Trade • Uptake of ISO 9001 in the supply chain was driven largely by Western

European countries and Japan

• Uptake of ISO 50001 will be driven by the US, Canada, the expanded EU, Japan, Korea, Brazil, China

• Use of ISO 50001 will be driven by companies seeking an internationally recognized response to: National and international energy efficiency and climate agreements National cap and trade programs, carbon or energy taxes Corporate sustainability/responsibility programs Increasing market value of “green manufacturing” Carbon trading schemes

• Companies will demand participation by their suppliers- this is already happening for environmental and lean manufacturing

• Exporters that position themselves now will be at a competitive advantage

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Opportunities and Challenges for Industry

• Cost reduction (energy, maintenance, downtime, etc.) & enhanced competitiveness

• Corporate image (environment, social responsibility, etc.)

• Green financing

• Carbon footprint

• Trade (i.e. compliance with international standards)

• In-house expertise & resources availability for EnMS implementation

• Integration with other management system standards (quality, environment, safety, etc.)

• Availability of expertise in the market for advising and assisting in implementation

Opp

ortu

nitie

s C

halle

nges

42

Opportunities and Challenges for Policy-Makers EnMS and standard provide pillar for national EE and RE programmes EnMS and ISO 50001 applicable to all economy sectors significant

economies of scale Boost development of the EE service sector, including job creation Accelerate technology upgrade and innovation Proven international supporting policy best practices are available

Limited technical expertise and institutional capacity Supporting programs and incentives will be needed for wide and rapid uptake of EnMS and ISO 50001 need to allocate adequate resources Demonstrate benefits and measure impact Monitoring and verification Ensure market credibility certification and accreditation SMEs will need special attention and support

Opp

ortu

nitie

s C

halle

nges

43

Energy Management System Standards

• Energy Management System Standards provide policy as well as market-driven tools to disseminate energy management best-practices and support their implementation

• National EnMS standards • Denmark, Sweden, Ireland, USA, South Korea, Thailand, South Africa,

China.

• Regional EnMS standards • EN 16001 – European Energy Management Standard – 1 July 2009 • Withdrawn in favour of ISO50001 – end of April 2012

• International EnMS standards • ISO 50001 – Energy Management Standard – 17 Jun 2011

Why use ISO 50001 for an EnMS?

• Standardised approach • Compatible with 9001, 14001, etc. • International recognition • Evidence for Corporate Social

Responsibility (CSR) • Meets Customer / Client requirements • Best practice

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Next Steps in ISO Technical Committee 242

Guidance and standards being developed for

• Implementing, maintaining and improving an EnMS using ISO 50001

• Energy metrics (baseline and performance indicators) • Energy auditing (technical) (parts 1 – 5) • EnMS auditing Measurement and Verification (M&V) • Benchmarking • Energy Service companies (ESCOs)

Joint working group with ISO TC 257

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Conclusions EnMS/ISO 50001 will assist companies and organizations in: • Actively managing energy use, reducing costs and exposure to energy prices

• Better utilizing company personnel and resources, including capital stock

• Continually improving energy performance

• Adopting energy efficiency best-practices and low-carbon technologies

• Improving enterprises’ and organizations’ bottom line

Improved Energy Productivity and Enhanced Competitiveness while delivering a substantial dividend to the Environment

leading to

The right programmatic and supporting framework will have to be in place to ensure good market penetration and effective

implementation, i.e. IMPACT

supported by

Why Energy Management?

Hong Kong Issues

Regulation

Possible Actions

Behaviour Change

Climate Change

Climate Changes - HK

Climate Change – Potential Impacts

Hong Kong GHG Emissions

Hong Kong Electricity

Solution – Demand Side Management

Benefits

Regulation / Guidance

Energy Labelling

Funding Schemes

Incentives – HK Awards

Carbon Calculators

Electricity Consumption

Local Benchmarks

ISO50001 The International

Energy Management System Standard –

EnMS

Composition of ISO 50001 4.1 General requirements 4.2 Management responsibility Top management Management representative 4.3 Energy Policy 4.4 Energy planning Legal and other requirements Energy review Energy baseline

Composition of ISO 50001 4.4 continued Energy Performance Indicators Energy objectives, targets & management action plans 4.5 Implementation & Operation Competence, Training, and Awareness Communication Documentation Operational control Design Procurement

Composition of ISO 50001 4.6 Checking Monitoring, measurement and analysis Evaluation of compliance Internal system Audit Non conformities 4.7 Management Review Inputs to review Outputs from review.

The 7 major implementation steps Step 1 – Getting started Step 2 – Profiling your energy situation Step 3 – Developing objectives, Targets and

action plans Step 4 – Reality checks Step 5 – Manage the current state and

improvements Step 6 – Check the system Step 7 – Sustain and improve the system

Courtesy - US Department of Energy Advanced Manufacturing Office

Implementation Process

Typical Energy Management Process

ISO 50001 It is not a competition! European Standard ended April Chinese Standard – GB23331

UK led development with British Standards Institute Based on committee member’s experience and that of other advisors Based on existing Energy Management approaches employed worldwide Based on recognised ‘Best Practice’ Piloted in mid June 2009 – 5 case studies Published as BS EN 16001 in September 2009 ‘Internationalised’, by negotiation, for conversion to ISO 50001 – in Beijing October 2010 and released June 2011

Final changeover to ISO50001 – JUNE 2012

Background to Standard

EnMS layout, paragraphs and approach based on existing

Standards such as: ISO 9000 ISO 14001

etc..

Relationships

Deming Cycle

STUDY

The International Energy Management

System Standard –

EnMS

ISO50001

4.1 General requirements 4.2 Management responsibility • Top management • Management representative 4.3 Energy Policy 4.4 Energy planning • Legal and other requirements • Energy review • Energy baseline

Composition of ISO 50001

4.4 continued • Energy Performance Indicators • Energy objectives, targets & management action plans 4.5 Implementation & Operation • Competence, Training, and Awareness • Communication • Documentation • Operational control • Design • Procurement


4.6 Checking • Monitoring, measurement and analysis • Evaluation of compliance • Internal system Audit • Non conformities 4.7 Management Review • Inputs to review • Outputs from review.


An Energy Management Policy created in sufficient detail AND fully implemented = (should meet)

The requirements of the EnMS

ISO 50001

Conclusion

Evaluate your Energy Management practices against those detailed in ISO 50001. If they are sufficiently encompassing then consider the internal and external benefits of becoming certified or Self certify your practices as a means of validation of those practices Apply for external certification if deemed necessary or possibly required by customers and clients

Opportunity

Establishing & Implementing and

EnMS

ISO50001 section 4.3 1. Energy policy

•Developing a meaningful and usable policy •Linking with other organisational policies •Scopes and boundaries (coverage) •Levels of commitment •Issues of accessibility & confidentiality •Periodic policy / strategy reviews and documentation •Policy content

Legal Organisational objectives Energy usage reduction targets

•Reviewing •Relating to other issues concerning energy such as purchasing (not tariffs) •Sufficient for purpose

•Exercise – Develop a sample one page policy document

See ISO50001 sections 3.11 and 3.17 for definitions and section 4.4.6 for precise requirement

2. Objectives and targets

•Consistency with policy •Targets •Objectives •Action Plan or Programme to achieve objectives and targets

•Exercise – Identify typical organisational objectives and targets

ISO50001 section 4.4.6

3. Programmes or Action Plans (ISO 50001)

•Responsible persons •Timetables •Verification of results / achievements

•Exercise – Create a prioritised Action Plan


4. Roles and responsibilities

•Designated Management representative •Individual roles and responsibilities •Resources to be made available

•Exercise – Who is fit for purpose

ISO50001 section 4.1 (b)

5. Scope and boundaries

•Physical or geographical limits declared as the boundary of operations covered •Energy uses to be considered within scope •Recording and delineating scopes and boundaries

•Exercise – Describe the boundaries and scope

ISO50001 section 4.4.3 (and 4.4.4 relating to energy baseline)

6. Energy review

•Cataloguing energy sources •Evaluating past / historical organisational performance •Creating a schedule of major energy using plant and equipment •Establishing plant and equipment performance measures / criteria •Developing baselines

•Exercise – List the key Review components

Sankey Diagram

Energy Performance

Mentioned in ISO50001 section 4.6.1

7. Metering plan

•Metering types •Metering locations •Installation timetable •Metering data plan

•Exercise – Develop a simple metering approach

8. Energy influences

•Energy Factor examples •Linking energy use with application / output •Degree days •Other possible factors •Recording factors / relationships for management purposes

•Exercise – List potential influences

ISO50001 section 4.4.3 (c)

9. Opportunities register

•Identifying and recording opportunities for energy saving •Assigning responsibility for follow up •Setting deadlines and due dates against each opportunity •Establishing priorities •Tracking opportunities to conclusion / completion

•Exercise – List potential opportunities to be recorded


10. Exceptions

.

•Monitoring consumption routinely (actual against expected) •Maintaining a list of past accidental deviations from expected consumption •Recording causes and remedies

•Exercise – List typical exceptions

ISO50001 section 4.5.2 11. Awareness, training and competence

•Qualifications of designated representative •Methods of communication to keep employees and contractors aware of the EnMS and energy-management activities? •Training staff with significant influence over energy consumption given training to maintain their competence related to energy responsibilities •Information and training provision on energy management for all levels of management •Training-needs analysis (linked to the register of roles and responsibilities

Exercise – Discuss best approaches to enrol staff members


12. Operational instructions, checklists and specifications

•Referencing all items such as checklists, specifications, documented maintenance procedures, standing orders (or anything else which describes how work is to be carried out) if they have energy efficiency implications •Dates for review or revision

•Exercise – List potential documents relative to this section


13. Legal and regulatory requirements

•Creating a list of applicable legal and other requirements •Sources of information •Relating legal and regulatory requirements to the organisation’s energy or major energy uses (ISO50001)

•Exercise - Discuss sources of information

ISO50001 section 4.6.4 14. Non-conformities This is taken to relate to administrative issues, i.e., non-conformance with the EnMS. Energy-consumption exceptions were dealt with separately.

•Establishing a systematic process for recording non-conformities •Corrective and preventive actions documented, with deadlines

•Exercise – What are minor and major nonconformities?

ISO50001 section 4.6.3 covers internal audits and 4.7 covers management review

15. Reviews and audits

•Recording of top-management reviews •Recording of remedial actions taken

•Exercise – Records and audit process


16. Document control

Note that completeness of the EnMS records is assured if the audit of all preceding sections concluded that the requisite registers and other documents exist in a satisfactory form.

•Control of relevant documents •Document legibility, identity and traceability •Document control committee

•Exercise – Types of documentation

In this section we bring together the

features of the exercises already carried out, plus the best approach to self

certification to decide how any size of organisation can internally audit and

then, if so required, self certify.

17 Self certification

Accurate recording and monitoring of energy usage leads to better GHG reporting

Warning

ISO50001 Implementation steps presentation

MIND MAP (after the break)

STEP 1 GETTING STARTED

Step 1.1 Make the business case

Step 1.1.1 Identify key internal influencers Step 1.1.2 Understand your business drivers Step 1.1.3 Prepare sales pitch Step 1.1.4 Brief top management

Step 1.2 Secure top management commitment

Step 1.2.1 Establish the scope and boundaries Step 1.2.2 Appoint a management representative Step 1.2.3 Assign the members of the energy team Step 1.2.4 Define the energy policy Step 1.2.5 Create organizational awareness Step 1.2.6 Ensure continual awareness

Step 1.3 Establish the structure for EnMS implementation

Step 1.3.1 Set the timeframe for implementation Step 1.3.2 Develop the implementation plan Step 1.3.3 Establish communication channels Step 1.3.4 Celebrate success often

Step 1.4 Understand the role of documents and records

STEP 2 PROFILE YOUR ENERGY SITUATION

Step 2.1 Identify, evaluate and track legal and other requirements

Step 2.1.1 Identify and access legal requirements Step 2.1.2 Identify and access other requirements Step 2.1.3 Establish a process for evaluating and updating requirements Step 2.1.4 Plan for evaluating compliance with legal and other requirements

Step 2.2 Acquire, analyse and track energy data

Step 2.2.1 Identify data needs Step 2.2.2 Determine availability of data Step 2.2.3 Formulate a process for acquiring and recording data Step 2.2.4 Investigate tools for analysing and tracking energy data Step 2.2.5 Choose and implement an energy data management tool

Step 2.3 Determine significant energy uses

Step 2.3.1 Prepare a list of your energy systems Step 2.3.2 Develop an energy balance Step 2.3.3 Determine criteria for significance Step 2.3.4 Record significant energy uses and the method used Step 2.3.5 Analyse and track significant energy uses

Step 2.4 Identify energy opportunities

Step 2.4.1 Use energy assessments Step 2.4.2 Utilise other methods

Step 2.5 Prioritise energy opportunities

Step 2.5.1 Get the right people together Step 2.5.2 Review relevant organizational information Step 2.5.3 Determine criteria Step 2.5.4 Develop tools or techniques for applying criteria Step 2.5.5 Apply criteria to prioritize opportunities

Step 2.6 Establish a baseline and determine energy performance

indicators (EnPIs)

Step 2.6.1 Get stakeholder requirements for measuring performance Step 2.6.2 Establish a baseline Step 2.6.3 Develop a list of possible EnPIs Step 2.6.4 Determine factors that affect EnPIs Step 2.6.5 Select and test EnPIs Step 2.6.6 Analyse EnPIs to determine performance

STEP 3 DEVELOP OBJECTIVES, TARGETS AND ACTION PLANS

Step 3.1 Establish energy objectives and targets

Step 3.1.1 Get the right people together Step 3.1.2 Provide appropriate inputs Step 3.1.3 Define and document objectives and targets Step 3.1.4 Obtain management approval Step 3.1.5 Communicate the energy objectives and targets

Step 3.2 Formulate energy management action plans

Step 3.2.1 Select projects based on resources and other factors Step 3.2.2 List the actions needed Step 3.2.3 Develop the schedule Step 3.2.4 Assign roles and responsibilities Step 3.2.5 Document and regularly update the action plans

STEP 4 REALITY CHECK: STOP! LOOK! CAN I GO?

Step 4.1 Review the status of your efforts

Step 4.2 Perform a sanity check on resources

Step 4.3 Identify accomplishments and lessons learned

Step 4.4 Conduct a management review

Step 4.5 Communicate across the organisation

STEP 5 MANAGE CURRENT STATE AND IMPROVEMENTS

Step 5.1 Manage and control information

Step 5.2 Determine operational controls

Step 5.2.1 Determine and establish effective operating criteria Step 5.2.2 Operate according to established controls Step 5.2.3 Communicate operational controls

Step 5.3 Ensure competence of personnel

Step 5.3.1 Define competencies Step 5.3.2 Assess personnel against competencies Step 5.3.3 Develop plan to address training needs

Step 5.4 Ensure awareness of personnel

Step 5.4.1 Define awareness requirements Step 5.4.2 Plan and implement training

Step 5.5 Define purchasing specifications for energy supply

Step 5.6 Incorporate energy considerations in procurement

Step 5.7 Manage energy considerations in design

Step 5.8 Communicate internally

Step 5.9 Decide on external communications

STEP 6 CHECK THE SYSTEM

Step 6.1 Monitor, measure and analyse key characteristics

Step 6.2 Calibrate monitoring and measuring equipment

Step 6.3 Evaluate legal and other compliance

Step 6.4 Plan and conduct internal audits

Step 6.5 Take action to correct and prevent nonconformities

Step 6.6 Check and use the evidence

STEP 7 SUSTAIN AND IMPROVE THE SYSTEM

Step 7.1 Collect information for management review

Step 7.2 Conduct management reviews

Step 7.3 Ensure continual improvement

An Effective Energy Management System =

1. Reduce operational costs

2. Reduced energy consumption 3. Reduced emissions to

atmosphere

World Experience! Thanks to: British Standards Institute

US – Department of Energy

United Nations International Development Organisation

International Standards Organisation

and many others Thank you for your attention

Open Discussion & Final Questions

Principal Consultant @

Trevor Floyd MSc., CEnv., CEng., MEI., CMarEng., MIMarEST., ACIBSE., MCMI.

[email protected]

development & implementation of an enms -...

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