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Establishment of a Sustainable Energy Management System Pierre Cazelles Regional Project Advisor - AEMAS Director Partnerships Asia, International Copper Association AEMAS Launching Conference, Kuala Lumpur, 19 July 2011

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Page 1: Aemas    pierre cazelles

Establishment of a Sustainable Energy Management System

Pierre CazellesRegional Project Advisor - AEMAS

Director Partnerships Asia, International Copper Association

AEMAS Launching Conference, Kuala Lumpur, 19 July 2011

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About International Copper Association

International non-profit organization

Leading organization for promoting copper worldwide

Operating budget (including co-funding): $80 M – 2010

31 offices in 24 countries on 6 continents

10 offices in Europe, offices in India, Singapore, Thailand, China, Japan, Australia

Most important program: sustainable electrical energy (60% of total budget): electric motors, energy management, transformers, solar water heating, RE, etc.

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1. Status of Energy Management

Situation Consequence

Decision-making process in end-users in Asia: top-down approach

There is a need for ambitious energy policy and proper decision-making process with regard to energy

“Energy Manager” is ONLY a technical function

“Energy managers” cannot get support/ commitment from their board

As of today, low level of implementation in end-users because lack of awareness and/or interest in EE&C

Energy matters must become a topic of decision at management board level

Background

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1. Status of Energy Management

• Energy usually represents 5% of total production cost: improving EE by 10% has little impact on total cost savings

• The “traditional” energy manager is a technical person with little if no decision power when it comes to securing budget

• All training courses on energy management focus on the technical aspects: no training curriculum on the MANAGEMENT aspects

Barrier analysis

Cost savings is NOT a driver

Lack of management commitment

Little managerial skills in-house

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1. Status of Energy Management

Without a proper Energy Management System, there is no sustainability in EE measures implemented.

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1. Status of Energy Management

Preliminary conclusions

• Absence of energy management system makes efforts in EE not sustainable

• Lack of managerial skills and decision-power among “energy managers”

• Lack of interest for EE and EnMgt among industries

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2. ISO 50001

• Recently published“ISO 50001:2011 specifies requirements for establishing, implementing, maintaining and improving an energy management system, whose purpose is to enable an organization to follow a systematic approach in achieving continual improvement of energy performance, including energy efficiency, energy use and consumption.”

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2. ISO 50001 – draft version

4.1 General requirements

4.2 Management responsibility

4.2.1 General

4.2.2 Roles, responsibility and authority

4.3 Energy policy

4.4 Planning

4.4.1 General

4.4.2 Energy Profile

4.4.3 Energy Baseline

4.4.4 Energy performance indicators

4.4.5 Legal and other requirements

4.4.6 Objectives, targets and action plans

4.5 Implementation and operation

4.5.1 Competence, training and awareness

4.5.2 Documentation

4.5.3 Operational control

4.5.4 Communication

4.5.5 Design

4.5.6 Purchasing energy services, goods and energy

4.6 Checking performance

4.6.1 Monitoring, measurement and analysis

4.6.2 Evaluation of legal/other compliance

4.6.3 Internal audit

4.6.4 Nonconformities, corrective, preventive and improvement actions

4.6.5 Control of records

4.7 Review of the energy management system by top management

4.7.1 Inputs to management review

4.7.2 Outputs from management review

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2. ISO 50001 pros and limitations

+ ISO’s reputation will encourage many industries to adopt ISO 50001 to gain better public image

+ ISO 50001 standard provides detailed specifications on the elements of an Energy Management System

- No guidelines on HOW to establish and manage the EnMgt system: rely on external consultants?

- “ISO 50001:2011 does not prescribe specific performance criteria with respect to energy.”:

- No requirements on energy efficiency improvements- No requirements related to budget and investment

- “ISO 50001:2011 is applicable to any organization wishing to ensure that it conforms to its stated energy policy and wishing to demonstrate this to others, such conformity being confirmed either by means of self-evaluation and self-declaration of conformity, or by certification of the energy management system by an external organization.

Pros

Limitations

Page 10: Aemas    pierre cazelles

3. Energy Management Gold Standard

“System of certification based on excellence in energy management”

Training and certification of Energy Managers

• Training curriculum focused EXCLUSIVELY on managerial aspects: how to establish and manage and EnMgt system• Two levels of certification: Certified EnMer and Professional EnMer

Certification of companies

• Based on ISO 50001 with additional requirements• Three levels of certification to progressively drive towards EnMgt best practices

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3.1 Approach to EnMgt

Technical team

Report to

Management Board

Report to Certified Energy Manager

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3.2 Certification of Energy Managers• Empowers industries with in-house capabilities to establish and manage

the EnMgt system• Enhances the professional standing of Energy Managers• Training curriculum based on 220-page Energy Management Workbook:

- Role of the energy manager- How to define the energy policy- How to appraise the energy management performance- How to set up and manage: energy baseline, EEI, Energy Accounting Centers, Energy Management Committee, Energy Management Working Procedures, Investment Appraisal for Energy Efficiency Projects, Human Resource Development in Energy Management System, Documentation in Energy Management System- How to establish Energy Target & Plan, including organizing Energy Audit & Analysis, Measurement & Verification- How to integrate the Energy Management System into Business Practice (working ,monitoring and reporting procedures, other management standards, …)- Project management and investment- Energy Management performance review

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3.2 Certification processMinimum qualifications:• Bachelor degree or higher in any field with:

- At least 5 years of working experience in factories and/or buildings; and- At least 2 years of working experience in a supervisory and/ or managerial role.

• Or higher vocational certification or higher with:- At least 7 years of working experience in factories and/or buildings and- At least 4 years of working experience in a supervisory and/ or managerial role.

New candidates

with minimum

qualifications Professional Energy Manager / PEM

Appl

icati

on &

Q

ualifi

catio

n As

sess

men

t

Trai

ning

and

Tes

t (C

ompu

lsor

y) Certified Energy Manager / CEM

Submit 2 IEMP/ Interview before panel

Successfully implem

ent a sustainable EM

Gt system

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AEMAS is co-funded by the European Union

Country Coord. Logo

SAMP

L

E

Certified Energy Manager

This Certificate is awarded to

In recognition of his/her fulfillment of all the obligations under theASEAN Energy Management Scheme (AEMAS)

Mr. Man HungDirector, ASEAN Centre for Energy

<Name><Position>, <Orga. Name>

Certificate #:

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3.3 Certification of companies• EnMgt System in place according to ISO 50001+ Certified Energy Manager (CEM)+ Motivation plan for the personal involved in the EnMgt system+ Budget allocated for investment in EE measures+ Procurement policies and internal investment criteria “EE-friendly”

Validity: 2 years Cannot be renewed: obligation to achieve 2 star In case 2-star certification cannot be achieved within 2 years, the 1-star

certificate is withdrawn. Companies can re-apply for 1-star after 3 years minimum from the date of

withdrawal Companies can apply directly for 2-star anytime.

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3.3 Certification of companiesSame as 1 star + (either one of the following):• Overall EEI improves by 5% (over 2 years)• Overall energy consumption decreases by 5%• EEI improves by 1% on year-on-year basis over past 3 years• EE measures representing at least 50% of the total energy saving potential of recommended measures (internal audit) are implemented and achieving at least 1% overall energy savings• EE measures representing at least 50% of the total energy saving potential of recommended measures (external audit by AEMAS certified auditor and approved by senior AEMAS experts) and achieving less 1% overall energy savings are implemented (include cases where NO EE measures are implemented)• Fuel-switching project implemented (using NG or RE)• Projects involving self-generation of electricity implemented• One RE project implemented• Investment in 5 new EE technologies

Validity: 2 years Renewal gives 3 stars If cannot be renewed: downgrading to 1-star (if criteria met) with only 1 year validity

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3.3 Certification of companies

Open only for 2-star certified companiesSame criteria as for 2-star + Energy Manager must be PEM (not CEM), i.e. renewal of 2-star provides 3-starRationale: a company who can meet 2-star certification 2 times in a row, that is over 3-4 years, demonstrate their sustainable and pro-active approach to EnMgt. The 3-star aims to convey this message.

Validity of 3-star: 2 years Renewal confirms sustainability In case a company cannot renew, it is downgraded to 1-star (if criteria are met), with 1-year validity only.

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3.4 Energy Management Gold Standard vs. ISO 50001

Corporate energy policy

Energy Management system in place and documented

Trained and certified energy manager

Demonstration of budget spending

Demonstration of EE measures implementation

Verified improvement of EEI

Budget management

Motivation

Energy Management System in place, budget allocated

Real EE improvement; Energy Management System is sustainable

ISO 50001

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4. Summary

• Are you aiming at achieving best practices in energy management to save cost on continuous basis? have your energy manager attend AEMAS training

• Are you aiming at being recognized as a top performer in energy management? have your company certified under the Energy

Management Gold Standard

Page 20: Aemas    pierre cazelles

Thank you for your attention

Pierre CazellesDirector – Partnerships AsiaInternational Copper AssociationRoom 1205, 12F, Canway Bldg66 Nan Li Shi Rd.100045 Beijing ChinaTel: (86) 159-0100-7376Email: [email protected]

www.aemas.org

Disclaimer:This document has been produced with the assistance of the European Union. The contents of this document are the sole responsibility of the authors and can in no way be taken to reflect the views of the European Union.