ISO 50001 – Managing Energy Efficiency

UNIDO is a specialized agency in the United Nations System,

which has the following mandate:

• Promote & support Inclusive & Sustainable Industrial Development

(ISID) in developing countries and transition economies;

In the past years, UNIDO has taken an active role in the global

development agenda focusing its activities on three thematic priorities

Poverty reduction through

productive activities

Trade Capacity

Building.

Energy and

Environment

About UNIDO

Programme Context

3

Industry is the single largest source

of GHG emissions, accounting for

about 32% of global emissions

Industry accounts for ~ 1/3 of global

energy use

Industrial energy use is projected to

increase by 37% by 2035 (2013

base) in the New Policies Scenario

Growth arises especially in non-

energy intensive sectors and in non-

OECD countries

Source: IPPC Working

Group III – Mitigation of

Climate Change, 2014

Greenhouse Gas Emissions by Economic Sectors

Estimated economic EE potential in industry is 25-

30%, with existing best-available practices and

technologies

Source: IEA/ UNIDO 2010

Most emissions reductions possible through deploy-ment of existing best available practices and technologies

GHGs Emission ScenariosEnPI

Baseline

Target

Programme Context

Work together with counterparts, stakeholders and partners to:

Strengthen policy and regulatory frameworks for better and sustainable energy efficient performance in industry

Accelerate adoption and wide dissemination of IEE best-available practices and technologies

Save energy and reduce GHG emission of the industrial sector

Integrate EE in industry daily business practices

Approach and Objectives

Competitiveness

ProductivityInnovation

Job

Creation

6

Sustainable Industrial Energy EfficiencyEnergy Management Systems (EnMS)

EE INTEGRATED

ENERGY SAVINGS & INVESTMENTS

Auxiliary energy systems account for over 50% of final manufacturing energy consumption

System optimization average efficiency gains range between 15-30% against 4-5 % of individual components

Distribution

End Use

Recovery

Generation

Energy System Optimization (ESO)

1 month

Training

Overview

of EnMS/ ISO 50001

Periodic webinars

Training

EnMS

Planning

and EnPIs

Training

EnMS

Implem. &

Operat.

Training

ESO1Training

ESO2

Energy

Assess.

ESO1

Energy

Assess.

ESO2

International and National Experts support to Partner Enterprises

2 3 4 5 6 7 8 9 10 11 12 13 14

Plant visits by Experts

Training

EnMS

Checking

& Review

EnMS

Internal

Audits

FINAL

EXAM

Implementation Implementation Implementation

UNIDO EnMS-ESO Programme Structure

7

Завод_1 Завод_2 Завод_3 Завод_4 Завод_5 Завод_6 Завод_7 Завод_8 Итого

Вода

Элект.

Тепло

Savings in million Rubles during Sep 2014 – Feb 2015Plant_1 Plant_2 Plant_3 Plant_4 Plant_5 Plant_6 Plant_7 Plant_8 Total

Water -1,7 -0,8 -0,4 -1,1 -1,2 -0,1 -0,8 -0,1 -6,2

Electr. -0,8 -2,2 -4,7 -3,2 0,4 -1,7 -2,2 0,7 -13,6

Heat 0,0 -0,2 0,0 -2,0 3,0 -5,3 -1,4 1,7 -4,3

Total -2,6 -3,1 -5,2 -6,3 2,3 -7,2 -4,4 2,3 -24,1

These savings were achieved without

investmentsSource: Leonid

Kolchin

8

What can EnMS-ESO achieve – Brewery

Water

Electr.

Heat

Total

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

Adjustments/optimization of

production operation, energy

systems optimization, fuels

switching, etc..... driven by EnMS!

Energy Savings 2011-2014

460 GWh

9

What can EnMS-ESO achieve – Iron and Steel

10

UNIDO Global EnMS Programme - Some Results

2008

20122015

Decision-makers reached

Enterprises trained on EnMS

EnMS Experts trained

Enterprises with EnMS

Funding mobilized

€ 200K 250 +

35

200 +

600 +

€ 6 mil +

600 +

3500 +

5,500 +

€ 13 mil +

230 +

Average organization-wide energy savings in first year of EnMS

implementation of 5-15%

More than 3 TWh of energy saved over 4 years

Multiple non-energy benefits

including waste reduction,

increased productivity and

quality gains, innovation and

job creation

11

Policy

Conformity

Assessment

ISO 50001

EnMS

1. The availability of competent

professionals to guide and assist

organizations in implementation

2. Credible demonstration to

organizations and market of the tangible

benefits of EnMS/ISO50001

3. The level of policy support granted or

regulation attached to the

implementation EnMS/ISO50001.

ISO 50001’s success in delivering expected benefits and impact to

organizations and countries will depend on:

Achieving impact and market credibility

WORK CONTINUES AT ALL LEVELS!

1

Catalyzing Action to Transform the World’s

Energy System

Three objectives by 2030

2 3

The IEE Accelerator is a global collaborative platform and networkof businesses, international organizations and NGOs that willprovide tools, expertise, technical capabilities and financialcapacity to partners to contribute and make commitments foraccelerating the improvement rate of energy efficiency inIndustry.

Targeted implementation by 2030

Targeted implementation by 2020

25% 50%Goal:To facilitate the implementation of Energy Management Systems, technologies and practices in global industrial energy use.

SE4All - Industrial Energy Efficiency Accelerator

Energy Management System (EnMS)• A logical, methodical, organized way

of managing your energy use

• It is a management system and not a

technical system

Energy Management System Standard• A published structure or framework

which you may decide to use to

develop your EnMS

• ISO 50001 is the first international

energy management system standard

Why MS ISO 50001 EnMS is attractive?

(1) “DATA” Oriented Management System!!

Evaluation of energy “PERFORMANCE” can be measured and quantified by the “DATA”

(2) Managing with EnMS performances

EnMS performances are A + B of the following:

A. Performance of EnMS itself :

standard management performance

B. Energy Performance :performance managed with datasuch as EnPI

(3) Practicality

Regardless of the size and type of organisation, regardless of if you aresubscribing to the national or local requirements, “data” and “performance”based management method can be properly blended into your operation.

Continual Improvement Process (PDCA)

EnMS Performance

Energy ManagementPerformance Performance

ISO 9001ISO 14001

Generic

13

Conceptual Business Flow of EnMS

Excerpt form “ISO 50001:2011(E)” page vi

Monitoring,measurement and

analysis

Internal audit ofthe EnMS

Energy policy

Planning

Implementation

and operation

Continualimprovement

Managementreview

Nonconformities,correction, corrective and

Preventive actions

Checking

What is “MS ISO 50001 Compliance”

Establish guideline and provisions for EnMS operationfollowing MS ISO 50001

Operate business under the established EnMSfollowing MS ISO 50001

Verify if you operate business under established EnMSin conformance to MS ISO 50001

Clause 4, Sub-clause 4.1 - 4.3

Clause 4, Sub-clause 4.4 & 4.5

Clause 4, Sub-clause 4.6

Verification is done byactual result written in reports and records as evidences

against written guidelines and provisions, procedures and plans

Therefore, documentation is the most important aspect to consider

for efficient operation of EnMS compatible to MS ISO 50001

report the result of verification at Management reviewClause 4, Sub-clause 4.7

Document

MS ISO 50001 Requirements & Interpretation

Clause 4. EnMS requirements

4.1 General requirements

Establish

EnMSDefine

Scope and Boundaries

Determine

How it will meet the requirements

to achieve continual improvement ofenergy performance

Implement

Maintain

EnMS Champion

ENERGY POLICY

Performance ownership

Management Review

4.2.2 Management representative

Provide resources

Scope & Boundary

Disseminate EnMS

EnPI assessmentPlanning initiative

Fair evaluation

Appoints &authorizes

Reports performance

Directs energy management activities• Organise the operation unit

• Define roles & responsibility

• Appoint members

Top Management

EnMS Owner

Management rep.

EnMS Champion

Energy management team

EnMS Operation Committee

MS ISO 50001 Requirement Summary & Interpretation

Clause 4. EnMS requirements

4.2 Management Role

4.2.1 Top management commitment

Commitment to complywith applicable legal andother requirements

Supports the purchase ofenergy efficient productsand services

Documented,communicated, andunderstood within theorganization

Periodically reviewed,

and updated as necessary

Name of Top Management

18

Coherent with the natureand scale of, and impacton, the organization'senergy use

Commitment to continual

improvement in energyperformance

Framework for settingand reviewing energyobjectives and target

Commitment to ensure

the availability ofinformation and ofnecessary resources toachieve objectives andtargets

“Energy Policy” Template (EnMS-Policy-M01E)

MS ISO 50001 Requirement Summary & Interpretation

Clause 4. EnMS requirements4.3. Energy Policy

Clause 4. EnMS requirements4.4. Energy Planning4.4.1 General

A.4.1 Energy Planning Process Concept Diagram

Excerpt form “ISO 50001:2011 (E)” page 16

Energy Planning Process

MS ISO 50001 Requirement Summary & Interpretation

MS ISO 50001 Requirement Summary & Interpretation

4.4. Energy Planning

“EnMS Energy Review Report” Guidebook+t (EnMS-EnRev.Rep-M01E)

Reference: “ISO/DIS 50001(E)” page 14

Sample of applying Energy Planning Process Concept

Fig. Sample-1 Fig. Sample-2

c) Identify, prioritize, and record opportunities for improving energy performance, including,where applicable, potential energy sources, use of renewables, or alternative energysources

Excerpt form “Energy Review Report” Guidebook+t (EnMS-EnRev.Rep-M01E)

“EnMS Energy Review Report” Guidebook+t (EnMS-EnRev.Rep-M01E)

MS ISO 50001 Requirement Summary & Interpretation

Clause 4. EnMS requirements4.4. Energy Planning4.4.3 Energy Review

a) Analyze energy use based on measurement and other data

b) Based on energy use analysis, identify the areas of significant energy use and consumption

The energy review shall be updated at defined intervals and in response to majorchanges in facilities, equipment, systems or processes.

“EnMS Energy Review Report” Guidebook+t (EnMS-EnRev.Rep-M01E)

MS ISO 50001 Requirement Summary & Interpretation

Clause 4. EnMS requirements4.4. Energy Planning4.4.3 Energy Review

Energy review shall be planned, implemented documented reported. Energy review is to

define baseline and target after identifying energy conservation opportunities (ECOs),and will be used as one of evidences for quantifying energy performance improvements.

Action name Objectives Targets By who By when

Product lineChangeEnhancement

• Close the comp. air valve• Review washing cycle• Reduce detergent for shorter rinse

Reduce power by720,000 kWhCost red.3.3%CO2 emit. Red.400 t-CO2

Prod.#1Manager

End March,2012

23

Fig. Sample-1

4.4.6 Energy objectives, energy targets and energy management action plans

From the energy review, objectives, targets and action plan shall be consolidated in a plan

Fig. Sample-2

“Monitoring & Action Guideline” Guidebook+t (EnMS-Monitor.Gdln-M01E)

MS ISO 50001 Requirement Summary & Interpretation

Clause 4. EnMS requirements4.4. Energy Planning4.4.4 Energy baseline4.4.5 Energy performance indicators (EnPIs)From the energy review, energy baseline & EnPI shall be recorded for saving target

Excerpt form “Monitoring & Action Guideline” Guidebook+t (EnMS-Monitor.Gdln-M01E)

4.5.2 Competence, trainingand awareness

4.5.3 Communication

4.5.4 Documentation

4.5.5 Operational control

4.5.6 Design

4.5.7 Procurement of

energy services,products, equipmentand energy

4.4.2 Legal and otherrequirements

4.4.3 Energy Review

4.4.4 Energy baseline

4.4.5 Energy performance

indicators (EnPIs)

4.4.6 Objectives, targets

and action plan

“EnMS Action Plan” Guidebook+t (EnMS-Audit.Plan-M01E)

MS ISO 50001 Requirement Summary & Interpretation

Clause 4. EnMS requirements4.5. Implementation and operation4.5.1 General

1) Apply additional 6 elements in establishing the plan

2) Implement and operate in accordance with theestablished plan

EnMS shall identify trainingneeds associated with thecontrol of its significantenergy uses and its operation

• Workshop• External training

• Internal training• Seminar

• Etc.

AwarenessEnMS ensures that persons working for or on its behalf are andremain aware of:1) The importance of conformity with the energy policy, procedures and

with the requirements of the EnMS2) Their roles, responsibilities and authorities in achieving the

requirements of the EnMS3) The benefits of improved energy performance

4) The importance of achieving energy objectives and targets, and the

consequences of departure from specified procedures

“EnMS Training Plan” Guidebook+t (EnMS-Training.Plan-M01E)

MS ISO 50001 Requirement Summary & Interpretation

Clause 4. EnMS requirements4.5. Implementation and operation4.5.2 Competence, training and awareness

Competence

EnMS ensures any person or persons working for, or on itsbehalf related to significant energy uses are competent on thebasis of appropriate education, training, skills or experience.

Training

• Press release • Company newsletter • Factory tour • CSR report

• Web: contact us • Community activities

“EnMS Communication Guideline” Guidebook+t (EnMS-Comm.Gdln-M01E)

MS ISO 50001 Requirement Summary & Interpretation

Clause 4. EnMS requirements4.5. Implementation and operation4.5.3 Communication

a) Energy Performance & EnMS Operation Communication

b) Awareness and Motivational Communication

Examples can be…

• EnMS site and

monitoring system linksfrom company portal site

• EnMS proprietary bulletin boards

• Suggestion Box

• Morning meetings

• Training sessions

• Motivation and incentive program

Etc.

Fig. Sample

c) External Communication on EnMS

4.5.4.1 Documentation Requirements 4.5.4.2 Control of Documents

Procedure fordocuments after

released

Guideline forcreating

documents

Plan toachieve EnMS

targets

Scope &boundary Energy Policy

….and any otherdocuments considerednecessary for ensureproper operation ofEnMS

“EnMS Document Management Guideline” Guidebook+t (EnMS-Doc.Mgmt.Gdln-M01E)

MS ISO 50001 Requirement Summary & Interpretation

Clause 4. EnMS requirements4.5. Implementation and operation4.5.4 Documentation

• Audit plan & report • Training plan & report

• Lighting • Continual Improvement • Monitoring & action

• Boiler operation • Water Treatment operation• Service Water Facility

Guidelines,Plans,Reports, etc.

Procedures

•

•

• Energy review plan & report • Energy Policy• Facility-Equipment List

• Monitoring & Action Guideline • Continual Improvement Guideline• Procurement Guideline • Communication Guideline

… and other documents considered necessary

• Document Management Management Review

• Pumps Fan/Blower • Packing Line operation• Compressed Air operation

• Chiller operation • Material Handling Line operation• Power Substation operation• Cooling Tower operation • Preparation Line operation • Heating Line operation

• Power Generator operation • Packaged AC… and other documents considered necessary

“EnMS Charter” Guidebook+t (EnMS-Charter-M01E)

MS ISO 50001 Requirement Summary & Interpretation

Clause 4. EnMS requirements4.5. Implementation and operation4.5.5 Operational control

EnMS Charter

Sets a general guidelineand provision for overallEnMS operation

29

• Review energy aspectsin design

• Identify as

• Feasibility study

• Review Design

• Financial analysis

• Project proposal

• URS• Construction or modeling

• Trial / tests• Acceptance

• Verification

RESULT

ManagementReview

Approval

Energy SavingProject

“EnMS Energy Review Report” Guidebook+t (EnMS-EnRev.Rep-M01E)

MS ISO 50001 Requirement Summary & Interpretation

Clause 4. EnMS requirements4.5. Implementation and operation4.5.6 Design

Two types of designing effort for energy efficient performance:

Facility Design Manufacturing Process Design Product Design(Not mention in ISO 50001

but worth consider)

Clause 4. EnMS requirements4.5. Implementation and operation

4.5.7 Procurement of energy services, products, equipment and energy

Procurement of energy services,products and equipments

Supplier quotation

- Specs on energy

type and rating

- Life cycle energyconsumption estimate

- Life cycle maintenancecost

- Service availability incase of contingencysituations

Energy efficiencyassessment

Life cycle energy costvs. maintenance costassessment

Service flexibility assessmentespecially in the time of contingency

Procurement of energy supply

Supplier quotation

- Composition specifications

of fuel energy

- Composition specifications

of water

- Heat conversion factor per

energy unit

- CO2 emission conversion

factor per energy unit

Perform composition test once

every six months

Check regularly the energy

market prices to comparepurchase prices

“EnMS Lean Energy Procurement Guideline” Guidebook+t (EnMS-Procure.Gdln-M01E)

Collaboration with suppliers is key

MS ISO 50001 Requirement Summary & Interpretation

“EnMS Monitoring & Action Guideline” Guidebook+t (EnMS-Monitor.Gdln-M01E)

MS ISO 50001 Requirement Summary & Interpretation

Clause 4. EnMS requirements4.6. Checking (Performance)4.6.1 Monitoring, measurement and analysis

Following key characteristics of its operations that determine energyperformance shall be monitored, measured and analysed at planned intervals.

a) significant energy uses and other

outputs of the energy reviewb) the relevant variables related to

significant energy uses;

c) EnPIs

d) effectiveness of the action plans in

achieving objectives and targets

d) evaluation of actual versus expectedenergy consumption.

Guideline/procedure are useful to :

a) Define method of treating records

b) Define how to review measurementneeds

c) Define method to maintain quality of monitoring equipments and records

d) Define procedure to identify and act against deviations in energy performance

e) Define procedure for consistent monitoring and action operation

4.6. Checking (Performance)Clause 4. EnMS requirements

4.6.2 Evaluation of compliance with legal requirements and other requirements

EnMS is to stay alert and at planned interval evaluate compliance with legal

and other requirements to which EnMS subscribes that are relevant to itsenergy uses.

a) List of legal and other requirements to which itsubscribes that are relevant to its energy uses

b) Summary or highlight description of evaluation items for

compliance

c) Compliance status

d) Recommended action

e) Additional remarks if necessary

The updates and results of evaluation can be consolidated as records in adocument containing following information:

Recorded information can be presented during

management review to serve EnMS purpose.

“EnMS Legal & Requirements Compliance Status Report” Guidebook+t (EnMS-LRC.Status.Rep-M01E)

MS ISO 50001 Requirement Summary & Interpretation

“EnMS Audit Plan” Guidebook+t (EnMS-Audit.Plan-M01E)

(*1)ISO 50001 does not require auditplan and report per se, however theyare highly recommended for efficientand effective audit activities.

• EnMS is properly implemented andenergy performance improved

Record of audit result shall be

reported to top management.

MS ISO 50001 Requirement Summary & Interpretation

Clause 4. EnMS requirements4.6. Checking (Performance)4.6.3 Internal audit of the EnMS

EnMS audit is to be conducted as part of organisation’s audit programme.

Define the EnMS audit:a) Objective b) Scope

c) Responsibility d) Procedure

Reference ISO19011:2002 “Guidance

on the Principles of Auditing” inconducting EnMS audit.

EnMS audit is encouraged to conduct

in accordance with voluntarydocumented EnMS audit plan. (*1)

Audit examines :

• EnMS conforms to energy objectives

and targets established

Improvement actions

Actions for correction, corrective, and preventive as well as actions to counternonconformities

EnMS Continual Improvement Guideline (Problem Resolution management Guideline)

A guideline is useful to identify elements

requiring improvement, and to definesituations for preventive and correctiveactions.

EnMS Continual Improvement

Procedure

A document defining procedure is useful

for the entire work force dealing withactual and potential nonconformity, andthrough corrective and preventive actionsto identify opportunities from continualimprovement practices.

“EnMS Continual Improvement Guideline” Guidebook+t (EnMS-Cont.Impr.Gdln-M01E)

Continual improvement is the heart of EnMS operation

MS ISO 50001 Requirement Summary & Interpretation

Clause 4. EnMS requirements4.6. Checking (Performance)4.6.4 Nonconformities, correction, corrective action and preventive action

• Frequency • Procedure

Input to management review

Output from management review

• Changes in energy performance or EnPI

• Changes in energy policy, objectives/targets or baseline

• Allocation of resources.

MS ISO 50001 Requirement Summary & Interpretation

Clause 4. EnMS requirements4.7. Management review

Management review is one of the most

important EnMS processes

a) Reassures top management role and

responsibility

b) Accelerates the EnMS progress forcontinual improvement

c) Removes members’ wonder

d) Evaluate people’s effort & skill

e) Understands the changes made

Defining logistics• Purpose • Participants

Summary of Management Principles in EnMSFollowing is the list of items necessary to control EnMS operation regardless ofwhat MS ISO 50001 requires:

1. Operation and Progress Management

2. Change Management

3. Operational Problem Resolution Management

4. Risk Management

5. Preparation for Contingency

6. Document Management

7. Objective and Target Achievement Evaluation Criteria

Ensuring objective and target achievement evaluation criteria are defined in order tomeasure and evaluate progress or result

Ensuring operation is making progress according to the plan

Ensuring operation is in line with the changes

Ensuring operation swiftly to problem faced and turn into opportunity for improvement

Ensuring risk factors are evaluated to secure position for continual improvement

Ensuring safety is considered in case of emergency situation

Ensuring key documents are identified, maintain, updated and available when in need

Additional Management Principles in EnMS Operation

Records

Procedure Documents

ManagementDocuments

Audit Plan

Action PlanMonitoringGuideline

Energy ReviewReport

Energy Policy

Summary of DocumentationDocumentation is key to the success of EnMS operation

12 Key documents were introduced for MS ISO 50001 certification

The Charter

Continual

ImprovementGuideline

Training Plan

Legal &

RequirementsCompliance

Status Report

CommunicationGuidelineProcurement

Guideline

Document

ManagementGuideline

“EnMS Charter” Guidebook+t (EnMS-Charter-M01E)

THANK YOU

Ir. Dr K S Kannan

(k.s.kannan@unido.org)

Kaveta Chelliah

(k.chelliah@unido.org)

www.ieemms.org