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ISO 50001 Standard For Energy Management Systems KEVIN WALLACE, P.Eng., CEM Manager Industrial Business Strategy BC Hydro Power Smart KEVIN WALLACE, P.Eng., CEM Twitter hashtag: #ps10

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ISO 50001 Standard For Energy Management Systems

KEVIN WALLACE, P.Eng., CEM

Manager Industrial Business Strategy

BC Hydro Power Smart

KEVIN WALLACE, P.Eng., CEM

Twitter hashtag: #ps10

OVERVIEW• ISO 50001 Draft International Standard (DIS)

• ISO 50001 Benefits + Drivers

• Superior Energy Performance

• Certification Systems• Certification Systems

PURPOSE OF ISO 50001

• International Organization for Standardization (ISO)

• Voluntary standard

• Requires an organization to establish, implement, maintain, and improve an Energy Management System (EnMS)

• An EnMS defines the systems and processes necessary to take a systematic approach to achieve continual improvement of energy performance

• An EnMS addresses energy supply, usage, procurement and design practices

• Will lead to reductions in energy cost, greenhouse gasemissions and other environmental impacts

BACKGROUND

• ISO 50001 is currently at the Draft International Standard (DIS) stage.

• Prepared by Project Committee ISO/PC 242, Energy Management.

• Canada is one of 39 participating countries.• Canada is one of 39 participating countries.

• The Canadian Advisory Committee (CAC) has 22 members.

• CAC harmonized with CSA Technical Committee.

• Over 400 pages of input addressed to-date.

EnMS GLOBALLY

• Ireland, Denmark, UK, USA, China, Sweden and Spain have a voluntary national EnMS in place.

• All have programs to support the adoption of the standard. This includes incentives, comprehensive guides and certification.comprehensive guides and certification.

• All except USA and China have adopted EN 16001, the European EnMS, which was published July 2009.

• All have agreed to adopt ISO 50001 when published.

KEY FEATURES OF ISO 50001

• Simple and flexible

• Defines “what” but

not “how”.

• Builds on “the best”

of existing standards of existing standards

(ISO 9001 & 14001)

• Applicable to all

types and sizes of

organizations

ISO 50001 SCOPE

Energy Consumption

Energy Efficiency

Energy Intensity

Energy Use

Energy Consumption

Energy Efficiency

Energy Intensity

Energy Use

Other

KEY REQUIREMENTS

PLANNING PROCESS

DOCUMENTATION

1.1. ScopeScope

2.2. Normative referencesNormative references

3.3. Terms and definitionsTerms and definitions

4.4. Energy management system requirementsEnergy management system requirements4.4. Energy management system requirementsEnergy management system requirements

1.1. General requirementsGeneral requirements

2.2. Management responsibilityManagement responsibility

3.3. Energy policyEnergy policy

4.4. Energy planningEnergy planning

5.5. Implementation and operationImplementation and operation

6.6. Checking performanceChecking performance

7.7. Management review Management review

ISO 50001 TIMELINE

• Sept 2008: first ISO meeting; Washington

• March 2009: second ISO meeting; Rio de Janeiro

• Nov 2009: third ISO meeting; London

• Mar 2010: issue draft international standard (DIS)

• Oct 18th 2010: fourth ISO meeting; Beijing

• Jan 2011: Final DIS; 2 month ballot

• Mid 2011: standard to be published

• 2011: CSA to adopt as a Canadian standard

• 2011: ISO project committee evolved into a

technical committee to support implementation

BENEFITS

• Internal– Cost reductions (energy and GHG)

– Sustainability/CSR initiatives

• External/Market– Increased revenue (sales or price)– Increased revenue (sales or price)

– Supply value chain requirements

– Brand value/equity

DRIVERS FOR ADOPTION

• Drivers that could increase adoption of ISO 50001– CSR:CS&EA

– Certification Systems (SEP or Eco)

– Social marketing – increased consumer awareness and information

• Future– International climate agreements– International climate agreements

– National cap and trade programs; carbon or energy taxes

– Capitalism 3.0 or “Conscious Capitalism”

• Increasing market value of “green manufacturing”

• Risks– Certification overload – green washing

– Capacity to supply services

– Commodity industry – seen as a cost with min benefit; can’t pass on costs

ISO 9000 IMPACT

• Correlation between ISO 9000 certification and improved performance difficult, however:– The impact of certification on quality management was greater in the

manufacturing industry

– Large and mid-size companies reaped the greatest benefit of certification

– Certified companies were statistically significantly more profitable – Certified companies were statistically significantly more profitable than non-ISO certified companies

– Primary benefits internal to the organization; motivations external

• Leaders lead; laggards conform– Early adopters reaped the greatest benefit of certification

– Stepping stone for Total Quality Management system

• What does this mean for ISO 50001 uptake?

SUPERIOR ENERGY PERFORMANCE (SEP)

• Drive continual improvement in energy intensity

• Encourage broad participation

throughout industry

Launch US

wide in 2011

• Develop a transparentsystemto validate energy intensityimprovements and management practices

• Support and build the industrial efficiency

market and workforce

U.S. COUNCIL FOR ENERGY-EFFICIENT MANUFACTURING• Acts as champion of U.S.

industry in pursuing national

energy efficiency goals.

• Seeks to improve the energy

intensity of U.S.

manufacturing through a manufacturing through a

series of initiatives.

1. Energy Management System Conformance –

ISO 50001 Energy Management Standard

GETTING SEP CERTIFIED

An ANSI-accredited Certification Body will certify plants in two areas:

2. Validated Energy Performance Improvement –Third-party measurement & verification to show that the facility meets minimum Superior Energy Performance requirements on energy

intensity improvements

GLOBAL - SEP

• Clean Energy Ministerial, Washington DC, July

2010

• 25 countries have agreed to partner on:

1. Certification Harmonization

2. Sectoral Task Groups2. Sectoral Task Groups

3. Cross-sectoral Technology Task Groups

• Pilots in industrial and commercial

• Canadian pilot includes 3M plant, NRCAN

Offices.

SUPPLY CHAIN DRIVERS

ECO CERTIFICATION SYSTEMS

CERTIFICATION LEVERAGE

CERTIFICATION OVERLOAD

Courtesy of The Washington Post

WHAT NEXT?

PSCP

BC Hydro Certified

PSCP

BC Hydro Certified

ACKNOWLEGEMENTS

• Paul Scheihing, US DOE

• Ron Morrison, CME

• Michael Burke, NRCAN

• Steve Quon, BC Hydro

THOUGHTS

• Will the Green Economy or consumer

awareness drive a fundamental change in how

large industry manages energy use?

• Will brand value, market differentiation,

sustainability or CS&EA continue to drive sustainability or CS&EA continue to drive

companies to certify as green?

• How successful certification programs drive ISO

EnMS or drive ISO 50k through the supply

chain?

THANK YOU!

[email protected]

KEVIN [email protected]

Twitter hashtag: #ps10