the an overview of enms and iso 50001 has been developed

The An Overview of EnMS and ISO 50001 has been developed by UNIDO with the financial contribution of the Global Environment Facility, the Swiss State Secretariat for Economic Affairs, the UK Department for International Development and the Government of the Republic of South Africa.

Although great care has been taken to maintain the accuracy of information within the UNIDO training material, neither UNIDO nor the donors or the authors or contributors assume any legal liability or responsibility for consequences which may arise from the use of such training material. Reference to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise, does not necessarily constitute or imply its endorsement or recommendation by UNIDO. The views and opinions of authors expressed herein do not necessarily state or reflect those of UNIDO.

An Overview of Energy Management Systems and ISO 50001

2

An Overview of Energy Management

Systems and ISO 50001

Marco MatteiniIndustrial Development Officer

Energy Branch

United Nations Industrial Development Organization

3

Content

1. Definitions

2. Why Energy Management Systems (EnMS)

3. EnMS Goals

4. What EnMS can achieve

5. EnMS Standards and ISO 50001

i. Why

ii. Background

iii. Overview

iv. Structure

6. ISO 50001 EnMS Pilot Results and UNIDO Experience

7. The importance of a programmatic approach

8. Conclusions

4

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

5

Why Energy Management Systems

It saves organizations’ money

It increase reliability of operations

It has a positive effect on productivity and competitiveness

It offers attractive financial and economic returns

Reduces exposure to rising energy prices

Increases security of supply

It reduces the impact on the environment

Why it is not happening?

then

BENEFITS of Energy Efficiency

6

Management focus is on production & not on energy efficiency

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


BARRIERS to Energy Efficiency

7

The problem: Energy efficiency is not integrated

into daily management practices

The solution: A systematic approach is required & staff at all levels within an organizationneed to be engaged in management of energy on an ongoing basis

The evidence: Most energy efficiency in industry is achieved through changes in how energy is managedrather than through installation of new technologies


8

Source: IFC, 2010

Benchmarking study in Russian Foundry sector


Energy savings

PRICES of INPUTS FINAL PRODUCT COSTS

9

Source: IFC, 2010



Energy savings

PRICES of INPUTS FINAL PRODUCT COSTS

Poor resources

management

Loss of

Competitive Edge=

10

Matching the efficiency of best performing Russian (average

European) foundry could increase operational profitability of

individual enterprises by up to 15%

More than half of the

savings and benefits

could be realized

through better

management practices

and various low-cost

initiatives alone, with

no need for major

capital expenditure

- 57%

- 43%

Better management& low cost initiatives

Capital investment

Average efficiency, Russia

Best performance, EuropeSource: IFC, 2010



11

Matching the efficiency of best performing Russian (average

European) foundry could increase operational profitability of

individual enterprises by up to 15%

More than half of the

savings and benefits

could be realized

through better

management practices

and various low-cost

initiatives alone, with

no need for major

capital expenditure

- 57%

- 43%

Better management& low cost initiatives

Capital investment

Average efficiency, Russia

Best performance, EuropeSource: IFC, 2010



Poor resources

efficiency

Loss of

Competitive Edge=Poor management

practices

12

easy difficult

Technical feasibility

Investment

high

low

water

gas/electricity

gas

electricity

NOTE: Size of circles proportional to

money savings


Financial and technology bias

The experience of many countries shows that companies tend to focus on high-cost and technically-difficult efficiency projects, and to overlook low-cost and easy opportunities

13

Goals of Energy Management Systems

It is all about

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

14

EnMS Goals

Ad-hoc Energy Management Approach

15

Senior management

commit to EnMS

0 3Years

Investment

-20%

-25%

-15%

-10%

-5%

0

+5%

CostsInitial savings

sustained

Housekeeping first –

then investment

EE becomes

company culture

EnMS Goals

Systematic Approach

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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

What EnMS can achieve

Environment

Benefits

Continual

Improvement

17

Most industrial enterprises that have implemented EnMSachieved average annual energy intensity reductions of 2-3% against 1% reduction of peer enterprises without EnMS (experience of Ireland, The Netherlands, Denmark, Sweden, USA)

For companies new to energy management, savings during the first 2 years are usually in the 10-20% range

UNIDO experience: average organization-wide energy savings in first 1-2 years range from 5% to 15%, with little or no capital investments

What EnMS can achieve

18

EnMS standards proven policy best practice to effectively promote and implement sustainable energy efficiency in industry

Standards provide demonstrated market-driven tools to disseminate Best-Available-Techniques (BAT) and support their implementation

Increased focus on & demand for standards & regulations as tools in the fight against Climate Change (services, trade, negotiation, etc.)

EnMS Standards can underpin and catalyze development or strengthening of policy & regulatory frameworks for energy efficiency

EnMS Standards can boost industrial EE market transformation and

accelerate adoption of EE technologies and services

Harmonization across countries

EnMS Standards and ISO 50001 - Why

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National EnMS standards (until 2009)• Denmark, Sweden, Ireland, USA, South Korea, Thailand, South Africa,

China.

National EnMS specifications or laws (until 2009)• Australia, 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

EnMS Standards and ISO 50001 – Background

20

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

EnMS Standards and ISO 50001 – Background

21

Purpose of ISO 50001

“..to enable an organization to follow a systematic approach in achieving continualimprovement of energy performance, ..”

Scope of ISO 50001

It is applicable to all organizations

ISO 50001 does NOT prescribe specific performance criteria or targets

with respect to energy.

Source: ISO 50001:2011 – Annex A

ISO 50001 EnMS - Overview

facilities equipment personnel

systems processes procurement

measurement design doc. & report

22

ISO 50001 is based on the Plan-Do-Check-Act continual improvement framework like ISO 9001 & ISO 14001

Source: ISO 50001 :2011

Energy policy

Energy planning

Implementation

and operation

Checking

Nonconformities, correction, corrective and preventive action

Internal audit of

the EnMS

Management

review

Monitoring, measurement and

analysis

Continual improvement

ISO 50001 EnMS - Overview

ISO 50001 targeted to

• Industry

• Power sector

• Commercial & buildings

• Transport

• Others

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Source: ISO 50001:2011

Energy policy

Energy planning

Implementation

and operation

Checking

Nonconformities, correction, corrective and preventive action

Internal audit of

the EnMS

Management

review

Monitoring, measurement and

analysis

Continual improvement

ISO50001 EnMS – Structure

PolicyManagement Review

Implementation

& Operation

Planning

Checking

Day to day

operations

Management

participation

YesManagement

Responsibility

Source: UNIDO EnMS Programme

24

Is the top management really committed?

Will they support the system?

This is a decision point!

If not, we can all go for coffee now!

Will they make the necessary resources available (technical, financial and human)?



Implementation

& Operation

Planning

Checking

Day to day

operations

Management

participation

YesManagement

Responsibility

Management Responsibility


25

Shows the management commitment

Not just a signature!

Define scope of EnMS

Appropriate to scale

Commitment to continual improvement

Make resources available

Framework for target setting and management review



Implementation

& Operation

Planning

Checking

Day to day

operations

Management

participation

YesManagement

Responsibility

Policy


26

How much energy am I using?

Where am I using it?

Which are significant energy users?

What is driving it?

Who is influencing its use?

Do I need to have an energy assessment (=audit)? If yes, focus it

Identify and prioritize opportunities

Renewable energy options

Are there legal or other requirements?

Develop Baseline & Energy Performance Indicators (EnPIs)

Set objectives and targets

Action Plan



Implementation

& Operation

Planning

Checking

Day to day

operations

Management

participation

YesManagement

Responsibility

Planning


27

Competence, training and awareness

Documentation

Operational control

• Key Area

• Operation and Maintenance

• Service Contractors

• Training

Communication

Design

• Energy Efficient Design (EED)

Purchasing energy, services, goods



Implementation

& Operation

Planning

Checking

Day to day

operations

Management

participation

YesManagement

Responsibility

Implementation and Operation


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Check Operations

• Check operator records

• Check maintenance records

• Equipment checking

Check the system

• Is everyone doing what is required?

Check Performance

• Check EnPIs

• Check trends and costs

Check progress

• Against plans



Implementation

& Operation

Planning

Checking

Day to day

operations

Management

participation

YesManagement

Responsibility

Checking


29

Regular presentation

How are we getting on?

• Is performance improving as targeted?

• Problems and barriers to overcome?

• Achievements

What is the plan for next year?

• What do we need in order to achieve this plan?



Implementation

& Operation

Planning

Checking

Day to day

operations

Management

participation

YesManagement

Responsibility

Management Review


30

Then

you

start

all

over

again!!



Implementation

& Operation

Planning

Checking

Day to day

operations

Management

participation

YesManagement

Responsibility


31

An EnMS provides a structured and systematic approach to integrate Energy Efficiency into an organization’s culture and daily management practices.

An EnMS provides:

• A framework for understanding significant energy uses

• Action plans for continually improve energy performance

• Metrics to track and quantify energy performance against a baseline of energy consumption

• Structure and organizational framework to sustain energy performance improvements over time and change of personnel

ISO50001 EnMS – Summary

32

2-3% saving per year

EnMS

Certification

Source:

Ken Hamilton

HP WW Manager

Environment and Energy Services

ISO 50001 EnMS – Pilot Results

Industry: Defense Contracting

Energy Managem. System guidance/standard: ISO 50001

Key driver for EnMS: Environmental stewardship, government requirements, and cost reduction

Improvement focus: Seven processes using significant amounts of energy

Location: Scranton, Pennsylvania, USA

Product(s): Large-caliber artillery and mortar projectiles

Cost to implement: $255,000

Annual energy cost savings: $956,000

33

Source: Clean Energy Ministerial Global Superior Energy Performance

Partnership (GSEP)

http://www.cleanenergyministerial.org/Our-Work/Initiatives/Buildings-and-Industry

ISO 50001 EnMS – Pilot Results

http://www.cleanenergyministerial.org/Our-Work/Initiatives/Buildings-and-Industry

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

2011 GHG Reductions (tons CO2) 77,000

Energy systems optimization, fuels

switching, adjustments/optimization

of production schedules & process ..

.. triggered and driven by EnMS!

2012 Energy Savings > 100 GWh

ISO 50001 EnMS – UNIDO Pilot Results

34

Open joint stock company (about 15%

on Moldovan market)

185 employees

Management started to look into EE in

2009 to reduce production costs and

impact of increased energy pricesLACTIS improvements 2011-2012

Energy Management System Implemented

No. of Measures/Projects 11

Total Capital Investment (USD) 6,900

Gross Monetary Savings (USD) 22,000

Overall Payback Period (in years) 0.32

Annual Energy Savings (MWh) 328

2011 GHG Reductions (tons CO2) 160

LACTIS J.S.C

Value of EnMS/EE investments planned in 2012 for 2013-2014 was 410,000 USD

70% implemented so far


35

36

Baltika

Breweries



Johnson Matthey South Africa

Manufacturing plant in the automotive sector

Johnson Matthey 2012-2013

Annual Electricity Savings (GWh) 9.4

Annual money savings (USD)

- Cost savings from projects

- Cost savings from behavior

changes & operational efficiency

725,000

425,000

300,000

Total annual investments (USD) 580,000

Payback Period (years) 0.8

Completed Stage 1 of ISO 50001

Certification

Started implementation of EnMS in

2012

• Target ISO 50001 certification

Completed implementation in 9

months

4 large projects implemented

• Compressors optimisation;

optimising chillers; production

related projects

37


Johnson Matthey South Africa

Spe

cifi

c En

erg

y p

er

Mo

nth

[M

J/LC

P]

Production per Month [Litres of Catalyst Passed]

South Africa Manufacturing - Specific Energy against Production 2010/11 2011/12 2012/13

Specific energy

per month

(MJ/ units of

production)

Production per month (units of production)

Spe

cifi

c En

erg

y p

er

Mo

nth

[M

J/LC

P]

Production per Month [Litres of Catalyst Passed]

South Africa Manufacturing - Specific Energy against Production 2010/11 2011/12 2012/13

Specific Energy Consumption against Production

38

Source: Reinhard Peglau - Federal Environment Agency Germany - March 2014

ISO 50001 Global Certifications as of March 2014

6,912

39

40

Planned

activities

Operational

South Africa

Moldova

Russia

Turkey

Ecuador

Malaysia

Thailand

Viet Nam

India

Philippines

Egypt

Indonesia

Iran

Ukraine

Colombia

Macedonia

Myanmar

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

UNIDO Global IEE-EnMS ProgrammeAs of December 2015

2008

20122015

Decision-makers reached

Enterprises trained on EnMS

Consultants trained on EnMS

Enterprises with EnMS

250 +

35

200 +

600 +500 +

3,000 +

5,000 +

280 +

Operational in 17 countries

(as of December 2015)

UNIDO Program on Energy Management System

41

WHAT HAS WORKED

1. Securing and focusing on initial national champions

2. Building enough national consultants EnMS expertise and skills to ensure successful implementation (long-term coaching and support)

3. Being prescriptive and providing good guidance – but also be flexible and adaptive

4. Providing substantial EnMS expert support to companies – to keep on track and monitoring change and progress

5. Advocating with top management the need for staff training and competency development

6. Rewarding change of practices and performances

7. Identifying the right drivers or catalyst for change

42

ISO 50001 EnMS – UNIDO Experience

LESSON LEARNT

1. Top management engagement is necessary for EnMS 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 such “CHANGE” is going to be bigger and more difficult!

43

ISO 50001 EnMS – UNIDO Experience

44

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

The importance of a Programmatic Context

45

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%e

United States Vol No Yes No Yes No Yes No Yes <5%

Source: A. McKane for UNIDO, 2007

* Denmark has had a CO2 tax since 1992 that affects larger industries. Tax relief is linked to participation

in a voluntary agreement.

** Sweden has had a CO2 tax since 1/2005.Tax relief for process-related electricity linked to participation

in a voluntary agreement.

*** Ireland plans to expand training offerings

Penetration of EnMS in Industry


46

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 countries and different

developing regions/economic groups

• EnMS policy and program best-practices were/are in countries with mature

industrial energy efficiency policy frameworks and implementation

experience

• 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


Conclusions

Energy Management System is a proven method for industrial

enterprises to achieve Sustainable & Continual improvement

of Energy Efficiency and Productivity!

Commit

Plan

Do

Check kWh

47

ENERGY EFF.

INVESTMENTS

EE is INTEGRATED

in enterprises’ daily

business practices

ENERGY

SAVINGS

MULTIPLE

BENEFITS

GHG EMISSION

REDUCTIONS

48

Thank you for your attention

Marco Matteini

Industrial Energy Efficiency Unit

UNIDO

Vienna International Centre

P.O. Box 300

A-1400 Vienna, Austria

E-mail: [email protected]

For more information:

mailto:[email protected]

the an overview of enms and iso 50001 has been developed

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