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Policies to promote EnMS Energy Efficiency in Emerging Economies (E4) Training Week
International Energy Agency (IEA) 6-10 June 2016, Paris
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Content
1. Why Energy Management Systems (EnMS)?
2. Globally recognized voluntary standard
3. Supportive policy mechanisms for implementation: • target-setting agreements (incl. reporting requirements)
• tax policies
• training and technical assistance
• recognition programs
• capacity-building for EnMS implementation
• conformity assessment professionals
4. Voluntary or mandatory?
5. Lessons from UNIDO Programme
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Barriers to implement EE in industry
Policies? There are no mandatory rules or regulations to adopt EE or reduce GHG emissions
Market conditions? The prices of fuels and electricity are low; no CO2 market; and/or no market recognition from value chain
Awareness? Enterprises do not recognize the need to manage energy use. Unaware of where and how they spend energy
Technical? Enterprise are unable to monitor their energy use or/to modify their processes
INSERT THE TITLE OF YOUR PRESENTATION HERE
1. Why Energy Management Systems (EnMS)?
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Quiz 1 – About Energy Management Systems
Question 1 Why should enterprises adopt EnMS ?
a) To improve their energy efficiency
b) To reduce costs
c) To increase productivity
d) Systematically manage their energy use
Question 2
What should be improved by adopting an EnMS ?
a) Fuel usage
b) Electricity usage
c) Energy performance
d) Energy intensity
Question 3 The ISO 50001 is a?
a) Structured approach to the management of energy use
b) Voluntary global management system standard
c) Guide to improve energy performance
d) Technical regulation
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BENEFITS of Energy Efficiency
Organization’s financial savings
Increasing of reliability of operations
Positive effect on productivity and competitiveness
Attractive financial and economic returns
Reducing the exposure to rising energy prices
Increasing of security of supply
Reducing the impact on the environment
Why it is not happening?
then
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BARRIERS to Energy Efficiency Management focus on production, not on EE
Lack of information and understanding of financial and qualitative benefits
Lack of adequate technical skills for identifying, developing and implementing EE measures and projects
Poor monitoring systems and data
First costs more important than recurring costs disconnection between capital and operating budgets
When EE knowledge exists it very often resides with individuals rather than with the company/ organization sustainability risk
Financing
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EnMS Goals “It is all about Continuously
Improving Energy Performance!”
ISO 50001 DEFINITION 3.12 energy performance
measurable results related to energy efficiency (3.8), energy use (3.18) and energy consumption (3.7)
Source: ISO 50001: 2011
8 R
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ce
En
PI
va
lue
(b
ase
line
pe
rio
d)
Curr
ent
EnP
I valu
e
(re
po
rtin
g p
erio
d)
Energy
Baseline
Energy
Target
Target
Achieved !
Actual value
Source: Adapted from ISO 50006
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Ad-hoc Energy Management Approach EnMS Goals
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EnMS Goals Senior management
commit to EnMS
0 3 Years
Investment
-20%
-25%
-15%
-10%
-5%
0
+5%
Costs Initial savings
sustained
Housekeeping first – then investment
EE becomes
company culture
Systematic Approach
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What can be achieved by adopting EnMS?
70
75
80
85
90
95
100
105
2003 2004 2005 2006 2007 2008
Energy Use (2003 Base Year)
2-3% saving per year 5% saving per year
EnMS Certification
Source: Liam McLaughlin, UNIDO Expert
Investment restrictions
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Management focus
Systematic activity
Actively managing energy use and costs, reducing exposure to rising energy costs
Obligation to train and raise awareness
Obligation to provide resources
Document savings for internal and external use (e.g. emission credits, legal reporting requirements)
Reduce GHG emissions without negative effect on operations
Continuity through changes of personnel
Energy and Cost Savings
Environmental Benefits
Continual Improvement
What can be achieved by adopting EnMS?
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Most industrial enterprises that have implemented EnMS achieved average annual energy intensity reductions of 2-3% against 1% reduction of business as usual (IRL, NET, DEN, SWE, USA)
For companies new to energy management, savings during the first 2 years are 10-20%
UNIDO experience: Average organization-wide energy savings in first 1-2 years range from 5% to 15%, with little or no capital investments
What can be achieved by adopting EnMS?
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INSERT THE TITLE OF YOUR PRESENTATION HERE
2. A globally recognized voluntary standard
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EnMS Standards and ISO 50001 – Why? Policy best practice to effectively promote and implement
sustainable EE in industry
Demonstrated market-driven tools to disseminate BAT and BAP and support their implementation
Increased focus on demand for standards & regulations as tools in the fight against Climate Change (services, trade, negotiations, etc.)
Underpinning and catalyzing development or strengthening of policy and regulatory frameworks (i.e. ISO 14001 experience)
Boosting of IEE market transformation and acceleration of the adoption of EE technologies and services
Harmonization across countries
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EnMS Standards and ISO 50001 – Background
National EnMS standards (as of 2009) Denmark, Sweden, Ireland, USA, South Korea, Thailand, South Africa, China
National EnMS specifications or laws (as of 2009) Australia, Canada, Germany, The Netherlands, United Kingdom, Japan
Regional EnMS standards EN 16001 – European Energy Management Standard – 1 July 2009
International EnMS standards International Standard ISO 50001 – Energy Management Systems –
Requirements with guidance for use – 15 June 2011 – currently under revision
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EnMS Standards and ISO 50001 – Background March 2007 - UNIDO Meeting on EnMS in Industry Recommendation to ISO Secretariat to consider developing an International EnMS Standard
ISO 50001 developed by ISO Project Committee 242 – Energy Management, established in Feb 2008
Membership as of March 2014
49 countries full members
12 countries as observers
11 organizations-in-liaison, incl. UNIDO
ISO 50001 developed in less than 3 years (record time!)
ISO TC 242 – Energy Management (2008)
ISO TC 257 - Evaluation of Energy Savings (2010)
ISO TC 301 Energy management and energy saving (2016)
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Definitions
Energy Management System (EnMS) Systematic and structured approach to the management
of energy use
Energy Management System Standard Standardised approach to implementing an EnMS
An organization may decide to base its EnMS on a standard e.g. ISO 50001:2011 (This is best practice)
Certification of EnMS
An organization may decide to have its EnMS certified to a standard (to demonstrate its best practice to customers, clients and suppliers OR fulfil a legal or other requirement)
Source: UNIDO EnMS Programme
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Quality Infrastructure 1.01
Source: UNIDO EnMS Programme
conformity assessment embraces the activities which determine whether standards, regulations,
specifications or other requirements are met
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7,000+ ISO 50001 Global Certifications Sep 2015
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Source: ISO Survey – September 2015 – 50% (3,400 certificates) in Germany
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Certificates issued
Source: ISO Survey – September 2015
Argentina 14
Brazil 38
Cameroon 0
China 65 Egypt 15
India 443
Indonesia 28
Kazakhstan 35 Mexico 21
Mongolia 0
Myanmar 0
Nigeria 0 Peru 1
Russia 115
Serbia 14
South Africa 7 Sri Lanka 8
Tunisia 0
Turkey 136
UK 853
Ukraine 34
US 80
Uzbekistan 0
Venezuela 1
Vietnam 23
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EnMS/ISO 50001 – Support standards
ISO 50002:2014 – Energy audits
ISO 50003:2014 – EnMS – Requirements for bodies providing audit and certification of energy management systems
ISO 50004:2014 – EnMS – Guidance for the implementation, maintenance and improvement of an EnMS
ISO 50006:2014 – Measuring Energy Performance using Energy Baselines and Energy Performance Indicators — General Principles & Guidance
ISO 50015:2014 – Measurement and Verification of Organizational Energy Performance – General Principles and Guidelines
ISO 50001 – Updated version – harmonization amongst MS plus revisions
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ISO 50001 – from pilot to wide dissemination
ISO 50001 will succeed in delivering the expected impact and benefits to organizations and countries only if it is implemented properly and widely, if :
Technically sound and effective implementation of EnMS/ISO 50001 depends on the availability of qualified experts/ professionals to assist organizations and enterprises
Key success indicators will be: • the ability to demonstrate to organizations and to the market the
tangible benefits of implementing EnMS/ISO50001
• the level of policy support granted and/or regulation attached to the implementation EnMS/ISO50001
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Quiz 1 – About Energy Management Systems
Question 1 Why should enterprises adopt EnMS ?
a) To improve their energy efficiency
b) To reduce costs
c) To increase productivity
d) Systematically manage their energy use
Question 2
What should be improved by adopting an EnMS ?
a) Fuel usage
b) Electricity usage
c) Energy performance
d) Energy intensity
Question 3 The ISO 50001 is a?
a) Structured approach to the management of energy use
b) Voluntary global management system standard
c) Guide to improve energy performance
d) Technical regulation
INSERT THE TITLE OF YOUR PRESENTATION HERE
3. Supportive policy mechanisms for implementation
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Quiz 2 – Policies
Question 3 The best way to ensure that enterprises have adopted ENMS is…
a) Certification of ISO 50001 by accredited Certification Bodies
b) Robust adoption of ISO 50001
c) Third party verification of improved E performance
d) Ad-hoc management system
Question 4 Certification of ISO 50001 is to
a) Assess conformity against all of the requisites of the standard
b) Providing a certificate against a management system implementation
c) Get international recognition on management practices
d) Verification process for achieving energy savings
Question 5 An EnMS support policy is successful if
a) determine tangible benefits ($, KWh)
b) Achieves outputs set in its M&E framework
c) Has wide sectorial adoption
d) Industries adopt MRV at the facility level
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Target-setting
A. Mandatory: Where adoption is made mandatory within the goal of achieving a certain energy intensity target
B. Voluntary or negotiated agreements: used by governments as a mechanism for promoting IEE
Challenges Sectorial targets are divided across facilities Need for robust mechanisms for target setting, MRV, Government enforcement and control agencies have capacities Need for institutional capacities from industries (associations,
chambers, federations) to negotiate and operate
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Tax policies and incentives Exemptions to enterprise taxes:
On fuel or electricity use
On carbon taxes
Rebates on VAT of efficient industrial equipment or monitoring systems for environmental and/or energy control
Reduced income tax
Challenges
Can be perceived as a subsidy
Enterprises ability to use the instruments
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Training and technical assistance
Government led or government funded programs to strengthen technical skills in the industrial sector (University led, through Learning Networks)
Subsidizing technical consultants who may assist the implementation of EnMS
Challenges Encouraging industry to participate Can be perceived as a subsidy Enterprises ability to use the instruments Availability of qualified staff Creation of qualification mechanisms for technical experts
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Enterprise Recognition Programs
Market based policy >> to achieve recognition there has to be a tangible benefit obtained by the recognized enterprises
Third party verification >> to provide industrial facilities and companies with a transparent system for verifying improvements in energy performance and management practices, which may involve or not ISO certification
Can be supported by cost-shared training and technical assistance for facilities seeking recognition
Challenges
Enterprises ability to use the instruments
Market value
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Capacity-building for EnMS implementation There is a need to have responsible agencies and competent
staff across all aspects of an EnMS promotion policy, whether there is mandatory enforcement or control or just promotion of EnMS
Need for inter-institutional coordination
How to equip government agencies with mandatory roles?
How to strengthen agencies with support roles?
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Challenges
Need for dedicated teams or agencies?
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Capacity-Building for conformity assessment professionals If enterprises will certify the ISO 50001 standard, then the Quality Infrastructure needs to strengthened, particularly the ability of Certification Bodies to assess conformity, starting by Auditors
There are three main features of certification bodies that are addressed relative to conformity assessment, competency, consistency, and impartiality
Need for an internationally recognized accreditation process at country level
Challenges Ensuring that energy performance improvements are achieved
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Quiz 2 – Policies
Question 3 The best way to ensure that enterprises have adopted ENMS is…
a) Certification of ISO 50001 by accredited Certification Bodies
b) Robust adoption of ISO 50001
c) Third party verification of improved E performance
d) Ad-hoc management system
Question 4 Certification of ISO 50001 is to
a) Assess conformity against all of the requisites of the standard
b) Providing a certificate against a management system implementation
c) Get international recognition on management practices
d) Verification process for achieving energy savings
Question 5 An EnMS support policy is successful if
a) determine tangible benefits ($, KWh)
b) Achieves outputs set in its M&E framework
c) Has wide sectorial adoption
d) Industries adopt MRV at the facility level
INSERT THE TITLE OF YOUR PRESENTATION HERE
4. Voluntary or mandatory?
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The importance of a Programmatic Context Before ISO 50001, in countries with national EnMS standards:
EnMS standards were typically voluntary
Part of larger programs targeted primarily to large industrial plants and energy consumers
Technical assistance was available (training & expert services)
Offer financial incentives for compliance, usually as part of a target-setting agreement
Case studies used to publicize benefits
Public recognition was provided for outstanding performers
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The importance of a Programmatic Context
Denmark Vol Yes Yes Yes Yes Yes Yes Yes Lim 60%
Ireland Vol Yes Yes No Yes Yes Yes Yes Yes 25%
Sweden Vol Yes Yes Yes Yes Yes No Yes No 50%
United States Vol No Yes No Yes No Yes No Yes <5%
Japan ^ Man No Yes Yes Yes No Yes Yes Yes 90%
Source: Adapted from A. McKane for UNIDO
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The importance of a Programmatic Context After the release of ISO 50001:
Clear increase of EnMS policies, programs and best-practices, either consolidated or introduced voluntary approach still predominant
But
There is wide variability of context between OECD and different developing regions/economic groups
Past and existing EnMS (and standards) policy and program best-practices were/are in countries with mature industrial EE policy frameworks and implementation
In most, if not all, best-practice cases, industry associations and/or regional/local institutions have played an important role
Non-OECD countries face significant challenges in terms of knowledge gaps, lack of understanding, governance, human & financial constraints resources for effectively promote and support EnMS and ISO 50001
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Monitoring and Evaluation of policy effectiveness
Challenge with all policies adopted is to determine how they contribute towards meeting national targets >> how to monitor and evaluate the policies that are adopted
When planning an EE policy package, whether it has quantitative targets or not, proper planning and budgeting for monitoring mechanisms
Establish baseline conditions and a methodology to evaluate the impact of the adopted policy or programs
If targets are quantitative, how to reconcile enterprise level MRV with sectorial targets
INSERT THE TITLE OF YOUR PRESENTATION HERE
5. Lessons from UNIDO Programme
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Quiz 3 – Stakeholders
Question 7
Who are the key stakeholders to consider when analyzing the EnMS adoption?
a) Regulator
b) Certification bodies
c) Technical experts
d) Industries
Question 8
Which is the key govt. challenge to adopt mandatory targets?
a) Establishing metrics
b) Drafting regulations
c) Controlling and enforcing industries
d) Collecting and analysis data
Question 9
What does it mean to be a certified energy manager?
a) Having completed an EnMS course
b) Completing an accredited certification process
c) Having a lot of EnMS experience
d) Graduating as an energy engineer
Question 10
What is the purpose of monitoring, reporting and verification of energy use?
a) Assessing sectorial energy consumption (govt.)
b) Complying with regulation (enterprise)
c) “Check” step in the Deming's cycle
d) Controlling energy performance
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UNIDO EnMS Implementation Programme
Objectives
1. Transfer international best-practices for EnMS/ISO 50001 implementation in industry to groups of national EE experts
2. Promote and support EnMS and EE implementation in manufacturing enterprises
3. Catalyze and contribute to the transformation of national market for industrial energy efficiency services & products
Reduce GHG emissions Increase competitiveness
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UNIDO Program on Energy Efficiency
Planned activities
Operational
South Africa Moldova Russia Turkey Ecuador Malaysia Thailand Viet Nam India
Philippines Egypt Indonesia Iran Ukraine Colombia Macedonia Myanmar China
Operational in 17 countries
Planned activities in 10 countries
Other donors Swiss State Secretariat for Economic Affairs
UK Department for International Development
Government of South Africa
Government of Italy
As of June 2016
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UNIDO IEE-EnMS-ESO Programme
2008
2012 2016
Decision-makers reached
Enterprises trained EnMS/ESO
Consultants trained EnMS/ESO
Enterprises with EnMS
250 +
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200 +
600 +
700 +
3,000 +
5,000 +
270 +
Operational in 17 countries (as of June 2016)
Annual Energy savings (GWh)
7,000 +
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How much energy is 7,000 GWh?
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Annual energy
consumption of
1,160,000
EU households Annual energy
production of
1,700 MW wind farm CO2 emissions of
1,750,000 middle class
cars (running 12,500 km
per year)
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ISO 50001 EnMS – UNIDO Experience WHAT HAS WORKED?
Securing and focusing on initial national champions
Building the enough national consultants EnMS expertise and skills to ensure successful implementation (long-term coaching and support)
Being prescriptive and providing good guidance – but also be flexible and adaptive
Providing substantial EnMS expert support to companies – to keep on track and monitoring change and progress
Advocating with top management the need for staff training and competency development
Rewarding change of practices and performances
Identifying the right drivers or catalyst for change
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ISO 50001 EnMS – UNIDO Experience LESSON LEARNT
1. Top management engagement is necessary for EnMS & EE implementation … but it is not always sufficient (personal and social norms can interfere)
2. Cultural context is an important factor in transferring knowledge and embracing change
3. Cultural context can vary substantially from country to country lessons learned in a country may not apply or become misleading in others
4. Need to minimize enterprises’ uncertainty about proposed new scenario
5. Communication and partnership/relationship management are critical
6. ISO 50001/EnMS means CHANGE and it is not about technology and engineering, but mainly about people, processes and practices ... for many that Change is going to be bigger and more difficult!
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EnMS/ISO 50001 - Looking ahead
Understanding What is energy
performance? What does it take to
implement EnMS?
Conformity Assessment Competent Auditors Credible Certification
and Accreditation Bodies
Policies Nationally appropriate Work with industry
EnMS Global Dissemination
Release of
ISO 50001
The CHALLENGES
Achieving impact and market credibility Policy and Conformity assessment frameworks for EnMS/ISO50001
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Ensure access to affordable, reliable, sustainable and modern energy for all
Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
Intended Nationally Determined Contributions
International Context
Safeguarding the environment efficient use of productive resources and the decoupling economic growth from environmental degradation
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EE Targets at different levels Global
7.3 By 2030, double the global rate of improvement in
energy efficiency
Regional
EU Energy Efficiency Directive (2012): s a set of binding
measures to help the EU reach its 20% energy efficiency
target by 2020
CEM countries (2016): drive to achieve 50001 global
certifications by 2020
WeCommit Campaign (SE4A-2015): pledge to support
SDG7
National
Which of your countries has set targets?
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Conclusions
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 the market of the tangible benefits of EnMS/ISO50001
3. The level of policy support granted and/or regulation attached to the implementation EnMS/ISO50001
Achieving impact and market credibility Policy and Conformity assessment frameworks for EnMS/ISO50001
ISO 50001’s success in delivering expected benefits and impact to organizations and countries will depend on:
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Quiz 3 – Stakeholders
Question 7
Who are the key stakeholders to consider when analyzing the EnMS adoption?
a) Regulator
b) Certification bodies
c) Technical experts
d) Industries
Question 8
Which is the key govt. challenge to adopt mandatory targets?
a) Establishing metrics
b) Drafting regulations
c) Controlling and enforcing industries
d) Collecting and analysis data
Question 9
What does it mean to be a certified energy manager?
a) Having completed an EnMS course
b) Completing an accredited certification process
c) Having a lot of EnMS experience
d) Graduating as an energy engineer
Question 10
What is the purpose of monitoring, reporting and verification of energy use?
a) Assessing sectorial energy consumption (govt.)
b) Complying with regulation (enterprise)
c) “Check” step in the Deming's cycle
d) Controlling energy performance
INSERT THE TITLE OF YOUR PRESENTATION HERE
6. Designing a EnMS support Policy Programme
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Part II
Breakout groups
Each group will prepare a plan for their EnMS Scheme for Country A and Country B
Guiding questions:
How can policy instruments support the introduction of EnMS?
Who are the necessary stakeholders that have to support the scheme?
What are the minimum institutional requirements and capacities needed to ensure that EnMS are an effective tool for industry?
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10 key ideas – Quiz Answers Why EnMS?
1) Reasons to adopt EnMS >> systematic improvement of energy performance
2) What is improved? Choosing the right metrics >> energy performance rather than EE or energy intensity
3) Barriers to adopt EnMS >> unique in each case, but technical are normally the most challenging
Support policies?
4) Voluntary adoption>> robust adoption rather than certification in earlier stages and lower cost for SMEs
5) Support schemes with third party verification, such as enterprise recognition programs have shown positive results, reducing costs for SMEs
6) Monitoring and evaluation of policies >> to show how measures meet the intangible benefits, but also translate into reduced KWh, t CO2 or USD
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10 key ideas – Quiz Answers
Elements to adopt EnMS
7) Who are the stakeholders? >> engagement of different government bodies and enterprises is key to promote action
8) What are the existing capacities of different stakeholders? >> barriers analysis show that for enterprises technical barriers are key
9) Personnel certification >> the notion of trust for competent workforces
10) MRV at the enterprise level and ME of the policy program >> being able to track performance is necessary for adoption and validate budget spent to achieve energy savings
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Perceived barriers – industry responses
Thank you for your attention!
Bettina Schreck Industrial Energy Efficiency Division UNIDO Vienna International Centre P.O. Box 300 A-1400 Vienna, Austria Tel: 0043 1 26026 3032 E-mail: [email protected]
For more information:
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