ISO 50001 /EN 16001 Energy Management System and Energy Key Performance IndicatorsFramework , Requirements and Implementation Methodology

Contents

About Energy Management General Understanding Role of Energy Manager About ISO 50001 Framework What actually Process Approach Means Requirements of ISO 50001 Roadmap for Energy Management System Role of Energy Key Performance Indicators and how to identify them. Role of Energy Management Information Systems

ISO 50001 /EN 16001About Energy Management

ENERGY MANAGEMENT....INVOLVES A COMBINATION OF

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MANAGERIAL &

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TECHNICAL/TECHNOLOGICAL SKILLS/KNOWLEDGE

ENERGY IN AN ORGANISATIONIS CONSUMED ACROSS ALL FUNCTIONS IN AN ORGANISATION

THUS, TRADITIONALLY, NO ONE MANAGER HAS HAD SOLE RESPONSIBILITY FOR THE ORGANISATION S TOTAL INVOLVEMENT WITH ENERGY

BENEFITS AT ORGANISATION PLANT LEVEL TOO.

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FOR EXAMPLE: ...... ...... PROFIT! SURVIVAL!

Losing Energy = Losing ProfitsCURRENT SITUATION ENERGY MANAGEMENT Other costs 78% Profits Energy 10% PROFITS14

Other costs 78%

Profits Energy 8%

12

10

12%

16%in this example... reducing ENERGY SAVINGS by 20% may reduce costs by only 2% but INCREASE PROFITS by 16.5%

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6

4

2

0

PLANT/ORGANISATION BENEFITS-

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Improved ability to compete Improved ability to withstand future energy cost increases or shortages Improved productivity Improved maintenance schedules Improved quality Environmental benefits

MAYBE THE MAIN BENEFIT.....Increased awareness that everybody has a role to play in:

saving energy reducing costs increasing competitiveness creating/saving jobs!

MANAGEMENT IS........... THE ACHIEVEMENT OFRESULTS THROUGH OTHER PEOPLE

ENERGY MANAGEMENTThe objective of Energy Management is to achieve and maintain optimum energy procurement and utilisation, throughout the organisation: To minimise energy costs/waste... ...Without affecting production. To minimise environmental effects.

ENERGY MANAGEMENT INVOLVES ALL FOUR MANAGERIAL FUNCTIONS

... PLANNING ... LEADING ... ORGANISING ... CONTROLLING

EXAMPLE: PLANNING

Identifying the potential for energy cost savings: immediate/short term (no- & low-cost) medium term long term.

EXAMPLE: LEADING

Leading Upwards : gaining the commitment and backing of senior management and key people

Leading Sideways/Downwards : inspiring and motivating colleagues at all levels to become involved in ongoing energy management

EXAMPLE: ORGANISING

Marshalling the resources necessary to be able to manage energy - eg: - the necessary staff - the necessary expertise - the necessary technology - the necessary equipment Putting in place the necessary structures and lines of reporting

EXAMPLE: CONTROLLING

Setting up the necessary ongoing measurement/monitoring Setting objectives/targets for energy use and cost savings Taking corrective action where necessary

AN ORGANISATION.......Without Energy Management Little energy awareness Little attention paid to energy Energy responsibility spread across organisation ... With Energy Management Ongoing awareness of energy Continuous attention to energy as a critical resource Energy manager coordinates actions

Energy not included in investment decisions Low awareness of energy saving/ management

Energy a key investment factor Ongoing monitoring of energy technologies

Why an Energy Management System?

Most energy efficiency achieved through changes in how energy is managed rather than through installation of new technologies; An energy management system provides a method for integrating energy issues into existing management systems for continual improvement The PDCA model of management systems has proven successful for quality, health and safety, and environment

Business Benefits

Implementation of an energy management system assists an organization to: Develop a baseline of energy use Actively managing energy use and costs Reduce emissions without negative effect on operations Continue to improve energy use/output over time Document savings for internal and external use (e.g. emission credits)

How is a Process Measured?

EfficientNo Waste

EffectiveDesired Results Achieved

Input Right Resources:

Activity

Output Desired Results:

Qualified People Right Facilities/Equipment Correct Materials Proven Methods

Quality Products Quality Services Customer Satisfaction20

ISO 50001 /EN 16001ISO 50001/EN 16001 Framework

Aim of ISO 50001The aim of the standard is to put practices in place that are effective, and result in measurable energy savings. In practice, an effective energy management system should result in: organizations taking action to improve energy efficiency, a continual improvement year-by-year and an improved performance in energy usage, more thorough analysis of areas with potential for energy saving being carried out, if no action on energy efficiency is being taken.

ObjectivesOBJECTIVES High Energy Efficiency Cost Savings via Conservation Environmental Protection

Scope of ISO 50001

Standardization in the field of energy management, including:energy supply, procurement practices for energy using equipment and systems, energy use, and any use-related disposal issues.

The standard will also address measurement of current energy usage, and implementation of a measurement system to document, report, and validate continuous improvement in the area of energy management.

Scope of ISO 50001

This standard specifies requirements for an energy management system, which enables an organization to take a systematic approach to the continual improvement of energy efficiency and energy performance. It does not itself state specific performance criteria with respect to energy. This standard applies to all organizations.

Components of an Energy Management Standard(EnMS)

A plan A cross-divisional management team Policies and procedures Projects Identification of key performance indicators, and Periodic reporting

Energy Management Concept

After the realization of energy investments Further conservation via better management Similar to ISO 9001 and ISO 14001 Stand alone or integrated with other systems No need for external verification Management quality related to cost savings Better utilization of equipment and facilities Improvements in overall management

ISO 50001--Framework

Energy Management Steps

Current Status Assessment Management Commitment Planning and Implementing

Audit Policy

Structure and Responsibilities Awareness and Training Monitoring and Targeting Management Review

ENERGY POLICY

Management Commitment

Appropriate to company s profile Commitment to continual improvement Compliance with legislation and regulations Energy performance review framework Documented, implemented and maintained Communicated to entire organisation Vision of energy excellence

PLAN

DO

CHECK

ACT

Planning and Implementing

Setting of targets Planning of measures Determination of resources and time

Staff

Investment

Time

Budget

Implementation of measures Checking and correcting Reviewing results Setting of new targets

Planning

Identification and review of energy aspects

past and present energy consumption and energy factors based on measurement and other data.

Planning

the identification of equipment having significant energy consumption, in particular of significant changes in energy use during the last period

Energy Management MatrixLevel Policy Top Management commitment to Energy Management: Policy, Action Plan and Review. Management Integration. Formal Energy Management Policy but without active commitment from Top Management. Un-adopted Energy Management Policy set by Energy Manager or senior Department Manager. Energy Management, unwritten guidelines, as part time responsibility of someone with limited authority and influence. No explicit Energy Management Policy, Energy Manager, Action Plan and responsibility delegation. Organisation Clear delegation of responsibility for energy consumption, to the members of the organisation. Energy Manager accountable for all energy consumption, representing all users to Top Management. Energy Manager with little support and unclear authority, reporting to Top Management. Informal and not systematic contacts of the Energy Manager with only a few important energy users. No contact with important energy users. Communication Formal and informal communication channels exploited by energy manager and staff at all levels. Implementation Team used as main communication channel together with direct personal contacts. Contact of important energy users, by organisation's members lead by senor Department Manager. Cost reporting to Top Management based only on invoice and accounting data. Monitoring Sets targets, monitors consumptions, identifies faults, quantifies savings and budget tracking. Monitoring and Targeting reports based on submetering but without efficient reporting to users. Monitoring and Targeting reports based on supply and accounting data, without reporting to users. Energy Manager compiles energy tracking reports only for internal use in the technical department. Awareness Promotion of the value of energy efficiency to all the members and stakeholders of the organisation. Program of staff training, awareness and regular publicity campaigns. Usual payback criteria used. Certain budget is allocated to energy management and some awareness and training is elaborated. Informal and not systematic contacts used to promote energy efficiency. Investment Positive discrimination in favour of energy efficiency in all organisation's investments. Cursory appraisal of new building, equipment and refurbishment opportunities. Only energy investment with short pay-back periods are planned and realised. 4

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2

Only low and no cost measures taken for energy conservation.

1

No established information system.

No accounting for energy consumption.

No promotion of energy efficiency.

0

No energy conservation investments.

Planning

the identification of equipment having significant energy consumption, in particular of significant changes in energy use during the last period

PlanningThe analysis should result in a breakdown of energy use to the extent that the energy requirement and energy drivers are identified for each significant energy usage. This will also require an identification of the system boundary of the significant energy aspect under consideration.

an estimate of the expected energy consumption during the following period the identification and prioritization of opportunities for improvement

Planning

Planning

Planning

Special investigations (SI) In the case that no opportunities for improvement are being implemented in any one year (and none have been identified), the organization shall carry out, in that year, at least one special investigation into areas that may offer potential for energy savings, and report on its outcome. A special investigation shall be planned and described in terms of:

Planning

Aim of project Expected saving potential Activities to be carried out Organization and responsibilities Time schedule Budget and resources Where organizations have already identified opportunities, they should concentrate on implementing these. Over subsequent reviews, as opportunities for improving energy efficiency are more difficult to identify and the standard begins to infiltrate business practices and create a culture of energy efficiency, then more in-depth analysis will be required to understand where and how performance can be improved.

Planning

Planning

Energy Objectives, targets and programme(s) Target setting is a cyclical process and in some cases may be regarded as continuous, if short time scales are used. Targets should be SMART (simple, measurable, achievable, realistic and time-based).

Planning--EnPI

Each identified significant energy usage should have an associated objective or target. This may be in the form of an energy performance indicator (EPI). EPIs for energy consumption can be set at management and operational levels. Management level EPIs will generally relate to the overall control of significant energy usage. Operational level EPIs may relate to particular items of plant, equipment etc., and focus on specific energy savings opportunities.

Implementation and Operation

Resources, roles, responsibility and authority Operational control

Design

For significant projects, an energy representative should be part of the design team, and the team should work in an integrated manner. For major projects an interdisciplinary team should be established. Where appropriate, energy performance targets and performance measures should be set. Whole-system design of the project should be addressed. Life-cycle costing should be applied, where appropriate.

Specification and Procurement

Procurement policy should include a requirement to take into account the energy implications of procurement decisions and all procurement decisions that affect significant energy use should start with an evaluation of needs. Procurement specifications, tender and contract documentation should include energy consumption criteria and a requirement to analyse the life-cycle costs of purchases. Organizations should consider energy efficient products and services (including those carrying a recognized eco-label) as the first choice in all applicable procurements, unless there are reasons not to do so such as health, safety, performance, or cost considerations.

Implementation and Operation

Specification and Procurement

Implementation and Operation

Operation and maintenanceEach significant energy user should have an associated operation and maintenance procedure(s). For some organizations, the correct operation of significant energy using plant, equipment or other users, may account for the majority the energy saving potential. Personnel who operate such plant, equipment etc. should be competent on the basis of appropriate education, training and/or experience

Possible maintenance techniques include: Preventive Maintenance. Predictive Maintenance. Reliability Centered Maintenance (will require equipment specific maintenance routines). Overall Equipment Effectiveness (OEE). Totally productive maintenance. Other principles may be applied, such as right first time .

Maintenance activities on equipment that is relatively unimportant in terms of energy use and facility reliability may apply a reactive maintenance approach.

Monitoring and Measurement

Significant energy usage should be metered as appropriate and recorded in a metering plan. The addition of energy meters will depend on the feasibility and cost-effectiveness of the metering. Factors to take into account in determining cost-effectiveness of metering, include the cost of:

Design Purchase Installation Operation Data storage Analysis of the data output Maintenance

This must be weighed against the estimated energy cost savings. A metering strategy should be considered that identifies what needs to be metered and takes into account the factors determining cost-effectiveness. Metering can range from sophisticated permanent meters to simple low cost spot meters. Due consideration should be given to other instrumentation that is available from which energy consumption can be deduced/calculated, such as hours run meters, flow meters and temperature measurement.

Monitoring and Measurement

An important principle of metering and its outputs is that it should be increasingly integrated into the business management process. In justifying the relevance of the measurement frequency applied in relation to the identified energy usage, simple risk analysis may be used. Significant energy usage should be monitored in order to identify unnecessary or wasteful energy usage. Monitoring techniques may consist of meter readings, indirect measurements, estimations etc. It is important to establish relationships between the significant energy users and the factors that affect its consumption. It should be noted that it is not always practicable or beneficial to monitor energy consumption or energy factors due to a relatively stable and constant energy requirement. In these instances it should be demonstrated that it is not practical or beneficial to monitor the energy consumption or associated energy factor of the significant energy user.

HUMAN RESOURSE ALLOCATION

Structure and Responsibilities

Energy Manager

Designs and implements measures Motivates and supports personnel Coordinates activities and changes Monitors and communicates performance Participation of end users and executives Clear responsibilities and assignments Multilevel cross-functional communication Reward of success of and remark of failure

Staff Involvement

ISO 50001 /EN 16001Role of Energy Manager

ROLE OF ENERGY MANAGER1.Energy Data collection and Analysis

maintain records of energy & water consumption supervise reading of all meters on a regular basis develop indices for specific energy consumption

2.

Energy Planning supervision

review utility & fuel bills investigate & recommend fuel-switching opportunities develop plans in the event of supply shortages prepare annual energy cost budgets

ROLE OF ENERGY MANAGER3. Energy Conservation develop energy conservation ideas and projects evaluate financially energy-saving options obtain management commitment of funds re-evaluate existing projects set performance standards Energy Project Implementation indicate equipment maintenance programmes supervise implementation of conservation projects Communications & Public Relations prepare reports to management communicate with production and support departments develop awareness programmes to encourage participation publicise commitment to energy conservation

4.

5.

CAPACITY BUILDING

Awareness and Training

Importance of energy efficiency Implementation of conservation measures Consequences of their work activities Roles and responsibilities Involvement and active participation Training according to function

Managers

Specialists

Workforce

Implementation of energy policy

ENERGY AUDIT

Current Status Assessment

Identification of key areas and activities Determination of energy indicators Collection and analysis of energy data Determination of baseline consumptions Identification of conservation opportunities Identification of legal and other requirements Determination of energy management level

INFORMATION MANAGEMENT

Monitoring and Targeting

Data Collection

Meter readings and energy bills Production related data Specific energy consumption indicators Correlations and use of charts and graphs Valuable information and conclusions Right information to the person responsible for action Information: accurate, on time, concise and on right form Appropriate action achievement of energy targets Evaluation of measures setting of new targets

Analysis

Reporting

Action

COMMITMENT RENEWAL

Management Review

Annual periodic review Assessment of management performance Identification of weaknesses and strengths

Existence of top management commitment Sufficiency of human or economic resources Sufficiency of motivation or incentives Quality of information and reporting Sufficiency of monitoring of system

Clear and simple conclusions Determination of improvement priorities Action planning inputs

System optimization: Why a system approach matters in industry

Steam and electric motor-driven systems account for more than 50% of final manufacturing energy use worldwide In industry energy efficient equipment per se does not guarantee energy savings when it is part of a bigger system System approach involves looking at how components function together to deliver a certain end-use Energy efficiency improvement potential through system optimization is on average 15-30%

System optimization: Why a system approach matters in industry

Definitions Performance Measure: An indicator used by management to measure, report, and improve performance. These are classed as either a key result indicator (KRI), a performance indicator (PI), or a key performance indicator (KPI).

Definitions Key Resulting Indicators (KRIs): Key result indicators (KRIs) tell you how you have done in a perspective. Performance Indicators (PIs): Performance indicators (PIs) tell you what to do.

Definitions Key Performance Indicators (KPIs): Key Performance Indicators (KPIs) tell you what to do to increase performance dramatically.

Definitions

Three Types of Performance Measures

What are KPIs?

What are KPIs?KPIs represent a set of measures focusing on those aspects of organizational performance that are the most critical for the current and future success of the organization. KPIs are rarely new to the organization. They have either not been recognized or were gathering dust somewhere unknown to the current management team. KPIs can be illustrated by two examples,

7 KPI characteristics

1. a KPI echoes organizational goals 2. a KPI is decided by management 3. a KPI provides context 4. a KPI creates meaning on all organizational levels 5. a KPI is based on legitimate data 6. a KPI is easy to understand 7. a KPI leads to action!65

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Components of KPIThe KPI should be seen as: Only Key when it is of fundamental importance in gaining competitive advantage and is a make or break component in the success or failure of the department / section.

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Components of KPIThe KPI should be seen as: Only relating to Performance when it can be clearly measured, quantified and easily influenced by the department / section.

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Components of KPIThe KPI should be seen as: Only an Indicator if it provides leading information on current and future performance. A considerable amount of data within the department / section only has value for historical purposes is not an indicator.

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How to classify Indicator A parameter can be classified as INDICATOR, when after measurement of INDICATOR We need more information about some more parameters in order to control INDICATOR We immediately move on to take action in order to control INDICATOR

Role of EnMIS in EnMS

Track energy usage, identify wastage and generate reports. Energy monitoring, verification on Performance Contracting. Plan, process, monitor and compare activities.

Advantages: The major advantages of the softwares for energy management is to store the data in a usable format, the calculations of effective targets for energy use, and comparison of actual consumption with the targets, early detection of poor performance, effective performance reporting.

Software objectiveD D D D D D Assess the energy consumption (Thermal, Electrical, Water) of textile mills. Generate identification code for proper classification of textile mills for comparative analysis. Compare the textile mills energy consumption with the Industry average Bringing Awareness about standards of energy consumption Self assessment for improvements in the textile mill s energy consumption. Classification of textile mills into gold/ silver/ bronze/ tin

Statistics Summary

Electrical Rating

Thermal Rating

Water Rating