Tennessee 3-Star Industrial Assessment Center

ISO 50001: Energy Management

Standard Kenneth Currie, PhD, PE, CP EnMS

Director

Center for Manufacturing Research

Chattanooga Regional Manufacturers Association

Energy Summit

May 8, 2013

Workshop Objectives

• An understanding of the ISO 50001 energy

management system

• What are the benefits of an energy management

system

• Understanding the PDCA cycle for energy

management

• Practical applications for developing Energy

Performance Indicators

Energy Management Benefits

• Why do we want to manage energy?

• Low hanging fruit always grow back!

• As a risk management strategy

• Interdisciplinary energy management team

ensures cooperative atmosphere

ISO 50001 – Energy Management Standard

• Requires an organization to establish, implement, maintain, and improve an energy

management system, enabling systematic achievement of continual improvement in

energy performance, energy efficiency, and energy conservation.

• Imposes requirements on energy supply and consumption:

– Measurement

– Documentation and reporting

– Design and procurement practices

for energy-using equipment and systems

– Processes and personnel

• Applies to all factors that can be monitored and influenced by the organization to

affect energy use.

• Does not prescribe specific performance criteria with respect to energy.

• Designed to be used independently, yet can be aligned or integrated with other

management systems (e.g., ISO 9001 and ISO 14001). Applicable to all

organizations that use energy.

PDCA: PLAN

Energy Policy

What does the Standard say?

• Approved by top management

• Appropriate for the organization

• Provides framework for setting and reviewing objectives

and targets

• Supports the purchase of energy efficient products and

services

• Documented, communicated, and understood

• Regularly reviewed and updated

Energy Policy

Example:

Capsa Corp is committed to:

Continually improving energy performance

Achieving 25% energy intensity reduction in 10 years

Providing available information and resources to meet

objectives and targets

Supporting the purchase of energy efficient equipment and

systems as appropriate for the organization

Abiding by legal and other requirements

Scope and Boundary

Scope and

boundary may

be the same.

“The EnMS includes all

operations of XYZ

Manufacturing Company

located at 123 Main

Street, Nashville, TN.”

Energy Planning Process

Planning Inputs

Past and present

energy uses

Relevant variables

affecting significant

energy use

Energy performance

Energy Review

A. Analyze energy

use and

consumption

B. Identify areas of

significant energy

use and

consumption

C. Identify

opportunities for

improving energy

performance

Planning Outputs

•Energy baseline

•EnPI(s)

•Objectives

•Targets

•Action Plans

Energy Sources

Total Plant

Energy

Electricity Natural Gas Propane Off-site

Generated

Steam

Identify all energy sources that cross the fence line!

Primary energy sources enter the boundary of a facility from

an external or internal supplier.

Energy Uses

Total Plant

Energy

Electricity Natural Gas Propane Off-site

Generated

Steam

Motors A/C Heating Process

Heating Forklifts

Process

Heating

Energy Balance

An energy balance takes the total of all energy

sources and attributes it to specific equipment

and systems.

Looks at energy consumption on a smaller scale

for each energy use (air compressors, lights,

process motors, boilers, dryers, etc.)

Can be determined through submeters, load

analysis, or DOE software – PEP (Plant Energy

Profiler).

Energy Balance

Description Size Units Oper hr Load kWh MMBtu % total

Electrical Usage

VSD screw 125 HP 8760 0.5 439,177 1,498 10.0%

Recip backup 50 HP 500 0.7 14,506 49 0.3%

Chiller 100 tons 8760 0.5 350,400 1,196 8.0%

Air handlers 20 HP 8760 0.75 108,916 372 2.5%

Cooling tower 15 HP 8760 0.45 49,012 167 1.1%

Refrigeration 3 tons 8760 0.5 10,512 36 0.2%

Process pumps 50 HP 6600 0.6 164,120 560 3.7%

Votator 20 HP 3300 0.4 21,883 75 0.5%

Homogenizer 40 HP 3300 0.4 43,765 149 1.0%

Plant lights 69 kW 6600 1 455,400 1,554 10.4%

Process motors 50 HP 6600 0.4 109,413 373 2.5%

Misc electrical use 352,695 1,203 8.0%

Natural Gas Usage

Boiler 25 bHP 6600 0.35 6,909 46.1%

Water heater 300000 Btuh 8760 0.2 526 3.5%

Misc gas use 335 2.2%

Plant total 15,003 100.0% Annual Energy Usage

Source Usage Units

Natural gas 7,770 MMBtu

Electricity 2,119,800 kWh

Combined Btu 15,003 MMBtu

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

Step 2.3.2-2 Example Energy Balance

VSD screw

Recip backup

Chiller

Air handlers

Cooling tower

Refrigeration

Process pumps

Votator

Homogenizer

Plant lights

Process motors

Misc electrical use

Boiler

Water heater

Misc gas use

SEU

Significant Energy Uses give you the most “bang” for

your buck.

Keep it simple! Choose 1 or 2 to begin with.

SEU’s form the basis of much of the EnMS.

– Operator competence and training

– Procurement

– Operational Controls

– Monitoring, Measuring, Analysis

– Objectives, Targets, Action Plans

SEU Determination

Must use and document a method for establishing

significant energy consumption.

•Energy Balance

•Pareto (80 / 20 rule)

•Ranking Methods

•Benchmarking

Identify Energy Opportunities

Develop criteria:

• Estimated energy or cost savings

• ROI, rate of return

• Length of implementation period

• Possible safety, health, environmental issues

• Maintenance impact

• Production impact

• Organizational goals

Energy Planning Process

Planning Inputs

Past and present

energy uses

Relevant variables

affecting significant

energy use

Energy performance

Energy Review

A. Analyze energy

use and

consumption

B. Identify areas of

significant energy

use and

consumption

C. Identify

opportunities for

improving energy

performance

Planning Outputs

•Energy baseline

•EnPI(s)

•Objectives

•Targets

•Action Plans

Energy Metrics

Purpose of energy metrics

• We need to know if performance is improving

• We need to verify savings of improvements

• We need to know how much energy we are using

• We need to know if we are meeting our objectives

and targets

• We need objective support for decision making

ISO 50001 Metrics = EnPI and baseline

Relevant Variables

Relevant variables are factors that affect energy

performance.

• Weather – Temperature

– Humidity - Cooling degree days

– Precipitation - Heating degree days

• Production related – Operating hours - Operating temperature

– Variation in types of production - Operating pressure

– Production rate

• Operator training

• Maintenance

Simple EnPI

EnPI = Annual Energy Use / Annual Production

(MMBtu / yr) (e.g. lbs/yr, tons/yr, units/yr)

• Easiest to use and calculate

• Sufficient if other variables don’t impact energy consumption

• KISS rule – keep EnPI as simple as possible

Simple EnPI

• Did the plant start using energy less efficiently?

• Or, are other variables impacting energy consumption?

Statistical Models – Linear Regression

Energy Baseline

• Basis of comparison for evaluating energy

performance.

• Use information in initial energy review

• Facility determines the time period

• Apply data from initial time period and model to

develop energy baseline

• Measure future energy consumption against

baseline to determine energy performance

improvement

Objectives and Targets

Policy Overall direction relative to energy performance

Objective Long term, specific,

supports policy

Objective Long term, specific,

supports policy

Target

Specific, measurable,

achievable, timed,

supports objective

Target

Specific, measurable,

achievable, timed,

supports objective

Target

Specific, measurable,

achievable, timed,

supports objective

PDCA - DO

Competence and Training

What does the standard require?

• Ensure competency of individuals who work with

significant energy uses

– Education

– Skills

– Training

– Experience

• Identify training needs and meet those needs

Awareness

The standard requires awareness of individuals

working for or on behalf of the organization.

– Responsibility in meeting the EnMS requirements

– Importance in meeting the EnMS requirements

– How their activities impact energy consumption

– Energy performance benefits

Awareness affects ALL employees, not just

those working with SEUs.

Communication

The standard requires:

Internal communication of energy performance

and EnMS

Establish process for comments and suggestions

External communication decision – Do we

communicate externally or not?

Procurement

Organizations must make the connection between

purchasing and the impact on its energy

performance. Will a purchase significantly affect

energy performance?

Purchasing Services

• Energy service providers who will affect SEUs

need to be evaluated

– Maintenance service contractors for SEUs

– Project engineers/managers/architects

– Energy consultants

• Informed that procurement is partly based on

energy performance

• Major component of assessment is competency

Design

The standard requires:

Consider: • Energy performance in improvements in design;

• Operational control in design

For:

• New or modified facilities, equipment, systems, and processes

• That have a significant impact on the organization’s energy performance

• Where appropriate, incorporate energy performance into design activities

(such as procurement, specifications, and design).

Operational Control

What is required by the standard?

• Determine and plan operations associated with SEUs

• Set criteria for operation and maintenance of SEUs

• Communicate to appropriate personnel

• Operate and maintain according to criteria

Leads to:

SIGNIFICANT ENERGY SAVINGS AND BENEFITS

WITHOUT CAPITAL EXPENDITURE!

Maintenance

The primary purpose of maintenance is to maintain

reliability and availability

If equipment is properly maintained it is more likely to be

energy efficient also

Reactive maintenance wastes energy

The cost of the energy will often by more than the cost of

the maintenance

All significant energy users need to be maintained correctly

Applies to external service contracts as well as internal

maintenance staff

Documentation

What is a document?

• Electronic or written instruments used to communicate

expectations

• What you do and how you do it.

What is a record?

• Document stating results achieved or providing evidence of

activities performed

• Doing what you said you would do

ISO 50001 Documents

Some example documents:

• Scope and boundary of EnMS

• Energy policy

• Energy planning

• Methodology and criteria used to develop the

energy review

• Methodology for determining and updating the

EnPIs

ISO 50001 Records

Some example records:

• Energy baseline

• Training records

• Decision regarding external communication of

EnMS

• Results of design activity

• Measurement – calibration, energy review, etc

• Audit results

• Management review records

PDCA - CHECK

Monitoring, Measurement, and Analysis

What does the standard require?

• At planned intervals key characteristics are:

– Monitored

– Measured

– Analyzed

• Results are recorded

• Measurement needs are defined, reviewed, and

implemented

• Measurement equipment provides accurate and

repeatable data

• Calibration records are kept

What are Key Characteristics?

• Significant Energy Uses

• SEU relevant variables

• EnPIs

• Other outputs from energy review:

– Energy sources, uses, and consumption

– Future energy use

– Energy improvement opportunities

• Progress toward meeting objectives and targets

• Expected vs actual energy consumption

evaluation

Analysis

• What are the important analysis questions?

– Has your energy performance improved?

– Has the energy balance changed?

– Are SEUs changing?

– How effective is the system in meeting objectives and targets?

• What type of data analysis will be used?

– Absolute analysis

– Control limit analysis

– Tend analysis

– Benchmarking

• How often will data analysis be completed?

• How will data and analysis results be recorded?

• How will significant deviations be handled?

Internal Auditing

What does the standard require?

• Audits are conducted at planned intervals

• Ensures

– Conformance with ISO 50001

– Conformance with organization’s EnMS

– Maintained and effective

– Improves energy performance

• Audit plan and schedule

– Considers status and importance

– Considers results of previous audits

• Objective and impartial

• Records

• Results reported to top management

Continual Improvement

Internal audits lead to continual improvement

• Identify what the organization is doing well and where they need to

improve

• Nonconformities lead to actions which ensure continual

improvement of energy performance and the EnMS

• Internal audit results and the status of corrective/preventive actions

are reviewed at management review

• The organization determines actions to be taken and ensures the

actions are effective

• This process effectively starts the Plan-Do-Check-Act continual

improvement cycle over

Nonconformances

Definition: Non-Fulfillment of a requirement

• The organization is not doing what it said it would do

• What is being done is not working

• Requirement are not being met

• The intended energy performance improvement is not

being obtained.

Corrective and Preventive Action

Addresses actual and potential nonconformances

What does the standard require?

• Make corrections

• Identify the root cause

• Determine actions appropriate to the magnitude

and consequences

• Record

• Review for effectiveness

PDCA - ACT

Management Review

Involves fact based decision making by top management.

What does the standard say?

Top management shall review the EnMS

At planned intervals to ensure

Suitability

Adequacy

Effectiveness

Maintain records

Typical Decisions

• What is the status of the EnMS?

• What strategic changes are needed?

• What changes are needed, expected, or have resulted in

terms of energy performance?

• Are there any external requirements that will affect the

EnMS?

• Are there any changes internally that will affect the EnMS?

• Is there a need to change current improvement objectives?

• What resources are needed?

• Is the EnMS suitable and effective and achieving continual

improvement in energy performance?

Inputs

• Energy policy

• Objectives, targets, action plans

• EnPIs and past, current, and projected energy

performance data

• SEUs and their performance and changes

• Internal audits

• Planned changes in design and procurement

• Status of corrective and preventive actions

• Recommendations and opportunities for improvement

• Action items from previous mgmt review

Outputs

Decisions or Actions related to:

• Energy Performance

• Energy Policy

• EnPIs

• Objectives and Targets

• Resource Allocation

• Other EnMS components

More information

DOE eGuide for ISO 50001 https://save-energy-now.org/EM/SPM/Pages/Home.aspx

http://www1.eere.energy.gov/energymanagement/

Acknowledgement: This project is funded under agreement with the

State of Tennessee. This material is based upon work supported by

the Department of Energy under Award Number DE-EE0000160.

CDFA 81.041.