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ISO 50001Establishing an ISO 50001 Energy Management System

White paper

AbstractThis white paper provides an overview of ISO 50001, and details the key steps necessary to establish and operate an effective energy management system consistent with the framework outlined in the standard. The white paper is intended for all organisations, especially those with energy intensive operations, as well as key energy management personnel, including facilities engineers, plant managers and building service professionals.

2 ISO 50001 | TÜV SÜD

Klaus-Dieter FürschProduct Compliance Manager, TÜV SÜD Management Service GmbHKlaus-Dieter Fürsch is product compliance manager and certified lead auditor for energy management systems at TÜV SÜD Management Service GmbH in Munich, Germany, a TÜV SÜD group company. Fürsch is also a certified lead auditor for other management systems, including quality management (ISO 9001), environmental management systems (ISO 14001) and occupational health and safety management systems (BS OHSAS 18001). Fürsch’s auditing experience covers a wide range of industries, including automotive, chemical, food, paper, leather and textiles, as well as a number of industrial processes, such as metal production and processing, plastics processing, and glass production and processing. Fürsch also has extensive technical experience in water management and conservation, and worker occupational health and safety issues.

Contents

INTRODUCTION 3

WHAT IS ISO 50001? 3

THE BENEFITS OF ISO 50001 4

ESTABLISHING AN ISO 50001 COMPLIANT ENERGY MANAGEMENT SYSTEM 4

CONCLUSION 10

About the TÜV SÜD expert

3TÜV SÜD | ISO 50001

Introduction

What is ISO 50001?

As the demand for energy increases worldwide, energy intensive organisations must find ways to move beyond simple conservation efforts toward programs and practices that actually increase the efficiency of their energy usage. More than just a tool for conserving energy, organisation wide energy management systems have the potential of reducing energy consumption, increasing energy efficiency, improving productivity and driving profitability. Despite these benefits, however, organisations frequently lack the necessary knowledge to develop and implement an effective energy management system.

ISO 50001: 2011, Energy management systems (EnMS) – Requirements for guidance and use, provides organisations with an energy management structure that can increase their energy performance, including energy efficiency, use of energy, consumption of energy and reduction of energy costs. The standard also presents a clear, four phase process for establishing and maintaining an energy management system, that also provides sufficient flexibility to address situations and challenges unique to specific operations.

More than just a tool for conserving energy, organisation wide energy management systems have the potential of reducing energy consumption, increasing energy efficiency, improving productivity and driving profitability.

Developed by the International Standards Organisation (ISO), ISO 50001 covers every phase of the implementation and operation of an energy management system, and provides a framework that can help organisations accomplish the following tasks:

�� Develop an organisation policy for more efficient use of energy.�� Develop and perform energy

reviews to identify opportunities for improving energy performance. �� Establish targets and objectives to

achieve the goals of the policy.

�� Control operations and maintenance activities related to its significant energy use. �� Monitor, measure and analyse key

characteristics that affect energy performance.�� Review the suitability, adequacy

and effectiveness of the energy management system. �� Continually improve an

organisation’s energy performance.

ISO 50001 is based on the management system model found in ISO 9001 (quality management), ISO 14001 (environmental

management), OHSAS 18001 (occupational health and safety), ISO 22000 (food safety), and other management systems used by more than one million organisations worldwide. The model follows the familiar “plan-do-check-act” process for managing and improving an organisation’s operations and performance. As such, the availability of ISO 50001 enables organisations to integrate energy management efforts into their existing management systems activities.

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The benefits of ISO 50001

Establishing an ISO 50001 compliant energy management system

By adopting an ISO 50001 compliant energy management system, organisations can accomplish the following goals:

�� Make better use of existing energy consuming assets.�� Facilitate organisation wide

communication around the management of energy resources. �� Promote energy management best

practices and reinforce good energy management behaviours. �� Objectively evaluate and prioritise

the implementation of energy efficient technologies.

�� Promote energy efficiency throughout the organisation’s entire supply chain.�� Foster energy management

improvements for greenhouse gas emission reduction projects. �� Provide integration with other

organisational management systems.

The ISO 50001 energy management model can help organisations better manage their energy resources today while also supporting longer term efforts to improve energy technologies.

Developing and implementing an energy management system is a significant undertaking. For this reason, the commitment and support of an organisation’s senior management is critical. While the actual work will likely be delegated to an energy team, management’s commitment to the effort must be unequivocal so that the team has the authority to implement the planned activities and efforts.

Once a commitment from senior management has been given, an energy team is formed, consisting

of personnel from throughout the organisation. Ideally, participants on the energy team include personnel from operations, purchasing and maintenance, as well as participants from the environmental health and safety and controlling departments. Establishing team goals as well as a regular meeting schedule can help to ensure that the team’s efforts stay on track.

A final preliminary step in establishing an energy management system is to identify any and all relevant energy related data. This would likely include

collecting utility bills for all types of energy used in the facility, such as electricity, steam and natural gas. In addition, the energy team should identify the equipment and systems that constitute the major uses of energy in the facility.

Once these preliminary steps have been completed, the implementation and maintenance of an ISO 50001 compliant energy management system typically involves the following four phases:

The ISO 50001 energy management model can help organisations better manage their energy resources today while also supporting longer term efforts to improve energy technologies.

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A B C DENERGY PLANNING

In the energy planning phase, an organisation

profiles the energy used in a facility, and identifies

specific projects to improve energy e�ciency.

During the implementation and operation phase, an organisation initiates the

specific energy improvement projects that

have been identified, supplemented by support

systems that reinforce those e�orts.

In the checking phase, an organisation assesses the

progress of individual projects against established

milestones, and takes corrective action as

appropriate.

During the management review phase, an

organisation reviews the energy management

system to ensure that it is achieving the overall goals and objectives related to

increased energy e�ciency.

IMPLEMENTATION& OPERATION

CHECKING MANAGEMENTREVIEW

Planning is the first phase in establishing an energy management system. A clearly defined and documented plan helps to ensure the success of the overall effort by providing a critical framework for the work to follow. At a minimum, effective planning involves the following activities:

�� Conduct an energy review - The first planning step is to conduct a thorough review of current energy consumption with the goal of identifying areas of significant energy use and prioritising opportunities for improvement. The energy review process includes:

– Identifying current energy sources and evaluating past and present energy use and consumption.

– Identifying and estimating current energy performance of those areas of significant energy use, including facilities, equipment, systems, processes, personnel, and any other relevant variables affecting energy usage.

– Identifying, prioritising and documenting specific opportunities for improving energy performance.

This activity helps the organisation to determine exactly where significant energy is being used, and allows it to focus its efforts on those specific areas that will provide the greatest possible return in energy efficiency. As part of the energy review, an organisation will also create a master list of potential projects. Each project on the list should include information regarding the cost to implement the project, the ease of project implementation, the potential energy savings, the potential cost savings, the potential return on invest, the project’s compatibility with other planned initiatives, and any other relevant factors.

�� Establish an energy baseline - The energy review provides the information necessary to establish an organisation’s energy baseline, so that changes

in energy performance can be measured. Adjustments to the energy baseline can be made in specific circumstances, for example, when major changes in operations, processes or energy systems impacts energy consumption, or when established energy performance indicators (EnPIs) no longer accurately reflect an organisation’s energy use and consumption.

�� Identify energy performance indicators - With the detailed information generated by the energy review, an organisation now identifies energy performance indicators (EnPIs) appropriate for monitoring and measuring its energy performance. EnPIs can be a simple parameter, a simple ratio or a complex model (for example, energy consumption per time, energy consumption per unit of production). An organisation is also responsible for documenting and regularly reviewing the method for determining and updating EnPIs.

A. Energy planning

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MOST IMPORTANT MEASURES BY CATEGORY FOR SELECTED INDUSTRIES

Ventilators: Volume flow adjustmentProcess heat: Heat recovery from exhaust of process plants

Compressed Air: Usage of heat recoveryCooling: Heat recovery from waste heat

Space Heating: Heat recovery from supply air and exhaust airCooling: Usage of free cooling

Compressed Air: Elimination of leakage from the networkProcess Heat: Additional exhaust heat exchanger at steam boiler

Pumps: Increase of temperature spread of cooling networkProcess heat: Preheating of the combustion air

Compressed air: Reduction of start sequence and share of idle timeSpace Heating: Usage of process exhaust heat for preheating of air

Ventilators: Usage of more e­cient aggregatesProcess heat: Replacement/modification of existing thermal/regenerative post combustion

Pumps: Demand-controlled use of pumps in the cooling network

0% 1% 2% 3% 4% 5% 6%

Source: Okotec Energiemanagement GmbH / Prognos AG 2012

Ventilators

Compressed Air Cooling (without pumps)

Process heat (without pumps) Space heating (without pumps)

Pumps

�� Set energy objectives, targets and action plans - Based on the identified opportunities for improvements, an organisation can now define energy objectives, targets and action plans.

With a plan in place, implementation can now begin. The implementation phase includes the following activities:

�� Competence, training and awareness - An effective energy management system is based on the competence of all personnel involved. An organisation must ensure that all employees, as well as other working on its behalf, are knowledgeable about:

– The benefits of improved energy performance.

– How their activities contribute to the achievement of the

organisation’s energy goals.

Objectives and targets should be consistent with the organisation’s energy policy, and include time frames for their achievement. Energy action plans shall identify the parties responsible for plan

– The importance of conformity with the procedures and requirements of the organisation’s energy management system.

– Their specific responsibilities in achieving the goals of the energy management system.

In addition, an organisation should identify any training needs associated with its efforts to control significant energy uses and the operation of its energy management system, and document all training efforts.

implementation, the time frame for completion, a statement of the method used to verify the results, and a statement of the method used to verify energy performance improvements.

�� Communication - An organisation should routinely provide employees with information about its energy performance and its energy management system, and create a process that allows employees and others working on its behalf to make suggestions for improving the system. If an organisation decides to provide information about its energy policy to external audiences, it should establish and implement an appropriate method to manage this communication.

B. Implementation and operation

MOST IMPORTANT MEASURES BY CATEGORY FOR SELECTED INDUSTRIES

Source: Okotec Energiemanagement GmbH / Prognos AG 2012

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�� Documentation - An organisation must document, either in paper or electronic form, the core elements of its energy management system. The documentation shall include:

– The scope and boundaries of the organisation’s energy management system.

– The organisation’s energy policy.

– The energy objectives, targets and action plans.

– The documents and records as required by ISO 50001.

– Any other documents determined to be necessary for the effective management of the system.

�� Document control - In addition to the above documentation requirements, an organisation must also establish and maintain suitable procedures to approve documents

Continuous checking of the key characteristics of an organisation’s energy performance and its achievement of objectives, targets and action plans is an essential element of the process, ensuring that implementation activities are producing the desired results and achieving the anticipated energy efficiencies. The checking phase includes the following activities:

�� Monitoring, measurement and analysis - This aspect of the checking phase includes the monitoring, measurement and analysis of the following specific energy performance characteristics:

– Significant energy uses as

for use, to periodically review and update documents as necessary, and to ensure that relevant versions of applicable documents are available to those who need them.

�� Operational control - A key aspect of the implementation and operation phase is the control of operations in a manner consistent with an organisation’s energy policy, objectives, targets and action plans. This includes establishing criteria for the effective operation and maintenance of significant energy uses to reduce the risk of deviations from effective energy performance, and operating and maintaining facilities, processes, systems and equipment according to the established operational criteria.

identified during the energy review.

– Relevant variables related to significant energy uses.

– EnPIs. – Effectiveness of action plans

created to achieve the defined energy objectives and targets.

– Comparison and evaluation of actual versus projected energy consumption.

The results from the monitoring and measuring of these key characteristics must be documented, and the organisation must investigate and respond to significant deviations in energy performance. In addition, an organisation must ensure that the

�� Design - When considering the implementation of new, modified or renovated facilities, equipment, systems and processes, an organisation shall consider energy performance improvement opportunities as part of the specification and design processes.

�� Procurement of energy services, products, equipment and energy - An organisation shall establish criteria regarding energy use, consumption and efficiency when procuring energy using products or equipment that would significantly impact the organisation’s energy performance. Suppliers shall be informed that procurement decisions are based in part on energy performance.

equipment used in monitoring and measuring key characteristics provides accurate, repeatable data. Records of equipment calibration that establish the accuracy and repeatability of measured data must be maintained. Finally, an organisation must periodically review its measurement needs.

�� Evaluation of compliance with legal and other requirements - An organisation shall periodically evaluate its compliance with legal requirements and any other applicable standards and guidelines related to its energy use and consumption.

C. Checking

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�� Internal audit of the energy management system - At planned intervals, an organisation shall conduct internal audits of the energy management system to ensure that the system conforms with the energy objectives and targets that have been established, and that the implementation and maintenance of the system is producing anticipated energy performance improvements. The results of these audits shall be documented and reported to the organisation’s management.

�� Corrective and preventative actions - An organisation should be prepared to take correction and preventative actions as necessary

to address any non-conformities with the planned operation of the organisation’s energy management system. Specific actions should include:

– Reviewing actual or potential nonconformities.

– Identifying the causes of nonconformities.

– Evaluating the need for action to prevent further recurrence.

– Determining and implementing appropriate corrective or preventive actions.

– Reviewing the effectiveness of corrective or preventative actions.

– Maintaining records of all corrective and preventative actions.

An organisation shall also make any changes necessary to its energy management system to prevent the future occurrence of nonconformities.

�� Record control - The final aspect of the checking phase involves the maintenance of records and other documentation necessary to demonstrate the organisation’s ongoing compliance with the requirements of its energy management system as well as those of ISO 50001. Controls shall also include provisions for record retention and retrieval.

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In the management review phase, an organisation takes an objective look at the overall effort from a strategic point of view. The review phase also typically includes a briefing for senior management on the progress and the results of the targets and action plans, and the overall effectiveness of the organisation’s energy management system.

In preparing for the management review, an organisation shall consider and evaluate all of the following inputs in connection with its energy management system:

�� Follow-up actions from any prior management reviews.�� A review of the organisation’s

energy policy.�� A review of the energy

performance and related EnPIs.�� An evaluation of compliance with

legal and regulatory requirements, and any other applicable guidelines or standards.�� An assessment of the extent to

which the objectives and targets of the energy policy are being met.�� The results from the audit of the

energy management system.�� The status of any corrective or

preventative actions.�� Projections regarding future

energy performance.�� Additional recommendations for

improvement.

The management review itself will typically result in decisions or actions related to changes in the following areas:

�� The energy performance of the organisation.�� The organisation’s energy policy.�� The organisation’s EnPIs.

�� The objectives, targets or other elements of the organisation’s energy management system.�� The allocation of resources to

energy management activities.

D. Management review

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Conclusion

Effective energy management is an increasingly important aspect of organisational performance. ISO 50001 provides a clearly defined roadmap for organisations seeking to implement and maintain an energy management system that can reduce energy consumption, increase energy efficiency and improve profitability. The structure of ISO 50001 is also consistent with that of other management systems, such as ISO 9001 and ISO 14001, allowing organisations to leverage their

existing investments in management system compliance.

TÜV SÜD is an internationally recognised testing, inspection and certification organisation, with hundreds of technical experts in more than 30 countries around the world. This extensive network makes TÜV SÜD an effective single source for organisations seeking expertise in the certification and auditing of energy management systems of all types.

In addition to the certification of energy management systems to ISO 50001, TÜV SÜD offers a range of environmentally-related certifications, including ISO 14001, and OHSAS 18001, as well as consulting services in wind energy, photovoltaics (PV), and battery testing.

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GLOSSARY OF ACRONYMS EnMS – energy management systems EnPIs – energy performance indicators ISO – international standards organisation

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