What are the steps to adopt Energy Management Systems?
Energy Management Systems – ISO 50001
Energy Efficiency in Emerging Economies (E4) Training Week
International Energy Agency (IEA)
8-12 June 2015, 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?
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 CO
2market; or no market recognition
• Lack of information? Enterprises do not recognize the need where and how the 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)?
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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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
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) Guide to improve energy performance c) Voluntary global
management system standard
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
EnMS Goals
“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
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Ad-hoc Energy Management Approach
EnMS Goals
EnMS Goals
Senior management commit to EnMS
0 Years 3
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 EnMS can achieve
75 80 85 90 95 100
105
Energy Use (2003 Base Year)
2-3% saving per year 5% saving per year
EnMS Certification
Source:
Investment restrictions
What EnMS can achieve
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
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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 EnMS can achieve
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2. A globally recognized voluntary
standard
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
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
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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
Quality Infrastructure 1.01
Source: UNIDO EnMS Programme
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conformity assessment embraces the activities which determine whether standards, regulations,
specifications or other requirements are met
ISO 50001 Global Certifications as of May 2014
7,345
Source: Reinhard Peglau - Federal Environment Agency Germany - May 2014 7,344
Regional distribution of ISO 50001 Certifications as of May 2014
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0%
8%
0%
3%
39%
47%
1% 1% 0% 1% 0%
Africa Asia
Central America Eastern Europe European Union Germany
Middle East North America Oceania
South America
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
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
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
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
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
Training and technical assistance
• Government led or government funded programs to strengthen technical skills in the industrial sector
• Subsidizing technical consultants who may assist the implementation of EnMS
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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
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
Challenges
Enterprises ability to use the instruments
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?
Enterprises ability to use the instruments
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
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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INSERT THE TITLE OF YOUR PRESENTATION HERE
4. Voluntary or mandatory?
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%
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
• 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
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5. Lessons from UNIDO Program
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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
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
10 key ideas – Quiz Answers
Stakeholder capacities
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
UNIDO Program on Energy Efficiency
Planned Operational
South Africa Moldova Russia Turkey Ecuador Malaysia Thailand
Philippines Egypt Indonesia Iran
Ukraine Colombia Macedonia
Operational in 17 countries Planned activities in 10 countries
Other donors
Swiss State Secretariat for Economic Affairs
As of June 2015
2008
2012
2014
Decision-makers reached Enterprises trained on EnMS Consultants trained on EnMS Enterprises with EnMS
250 +
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200 + 600 +
390 + 1500 +
2,600 +
190 +
Operational in 12 countries
(as of June 2014)
UNIDO Program on Energy Management System
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ISO 50001 EnMS – UNIDO Experience
WHAT HAS WORKED?
1. Securing and focusing on initial national champions
2. Building the 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
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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
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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EnMS/ISO 50001 - Looking ahead
New ISO 50001 related standards
ISO 50002 – Energy audits – Released in July 2014
ISO 50003 – EnMS – Requirements for bodies providing audit and certification of energy management systems – Released in Sep 2014
ISO 50004 – EnMS – Guidance for the implementation, maintenance and improvement of an EnMS – FDIS
ISO 50006 – Measuring Energy Performance using Energy Baselines and Energy Performance Indicators — General Principles & Guidance – FDIS
ISO 50015 – Measurement and Verification of Organizational Energy Performance – General Principles and Guidelines – CD3
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
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
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?
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
Perceived barriers – industry responses
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Thank you for your attention!
Bettina Schreck
Industrial Energy Efficiency Unit UNIDO
Vienna International Centre P.O. Box 300
A-1400 Vienna, Austria Tel: 0043 1 26026 3032
For more information:
