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Trevor Floyd – MSc CEnv CEng MEI CMarEng MIMarEST ACIBSE MCMI
Development & Implementation of an EnMS - ISO50001
Course Tutor
Trevor Floyd Chartered Energy Engineer Chartered Environmentalist Chartered Marine Engineer
Low Carbon Consultant Carbon Trust Consultant
BSI - Accredited Consultant Carbon Trust Standard - Assessor
ISO14001, BS EN 16001, ISO 50001 specialist British Standards Institute – Committee Member
EU-ETS - Verifier CIBSE - CPD Trainer
Energy Institute – Accredited Course provider United Nations – ISO50001 Specialist
Principal Consultant at
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The standard – ISO 50001
Agenda The importance of energy management
The development / creation of ISO50001
Implementation of an effective Energy Management System
Conclusion / Questions
Item 1
Item 2
Item 3
Item 4
Item 5
To appreciate the importance of Energy Management To assist others to implement Energy Management Solutions To understand the relevance of effective Energy Management To understand the structure of ISO 50001 To appreciate how to assess and Energy Management System in its entirety To confirm the suitability of systems for individual organisations
Our learning Objectives
You cannot manage and control something which you don’t actually measure and
understand!
FACT
Energy Efficiency & Waste Minimisation
Energy is a resource: like money, people and stock Waste is a bad use of resources Energy efficiency adds value Reducing waste adds value
ENERGY MANAGEMENT
Payless per unit of electricity
Negotiate best tariff
Select best tariff
Cost avoidance measures
Change Of Fuel
Generate own power
Reduce the amount
of energy consumed
Capital Investment
High cost measures
Low cost measures
Reduce waste Using existing
equipment
PROACTIVE Waste
avoidance
Planned Maintenance
Efficient Operation
REACTIVE Waste
avoidance
Management Information
(M & T)
Applying Energy Management Principles
STEP 1 COMMITMENT A clear commitment from the top Management Team Delegate full responsibility to a single person in authority
It is no point starting on the journey, unless we have the above.
Applying Energy Management Principles
STEP 2 HOW IS THE SITE PERFORMING AT PRESENT? AUDIT!
Study Energy data Last 3 years supplier invoices Sub-meter records if available Electricity ½ hour data, if available Compare to trade/industry benchmarks, e.g.:- kWh/sq.m, kWh/tonne What is the average price per unit for each fuel?
Applying Energy Management Principles STEP 3 CARRY OUT A SITE SURVEY Breakdown the site into its component parts Processes Motive power Lighting Compressed air Space heating Water heating
Applying Energy Management Principles
STEP 4 SET UP A PERMANENT MONITORING SYSTEM Obtain supplier ½ hour information Consider sub-metering on heavier users Energy Management Software aM&T – 5% CO2 allowance in Part L and Ekes Benefits if AMR in place for CRC
INFORMATION / INFORMATION / INFORMATION
Applying Energy Management Principles STEP 5 CREATE ACTION PLAN - contains No cost measures Low cost measures Capital investment Staff training/energy groups Purchasing Policy Set realistic targets, for the site and for energy centres, against sensible benchmarks e.g.:- production, floor area, temperature
Applying Energy Management Principles
STEP 6 SIMPLE HOUSEKEEPING MEASURES – NO COST Match load profiles against perceived information Why is base load so high? What causes the high consumption on Sunday? Space heating usage in summer.
Applying Energy Management Principles
STEP 6 (Cont.) Check controls and reset for maximum efficiency Check for compressed air leaks Switch off equipment when not in use Changes to maintenance regime PUT RIGHT AND ENSURE IT STAYS RIGHT
Applying Energy Management Principles
STEP 7 LOW COST MEASURES Upgrade controls e.g.: TRVs, lockable thermostats Insulation improvements Timers/thermostats on heating Simple sensors and controls
Applying Energy Management Principles STEP 8 CAPITAL (Future) INVESTMENT
Replacement lighting Variable speed drives/High efficiency motors New process technology Replacement boilers / heaters
Applying Energy Management Principles
STEP 9 STAFF TRAINING/ENERGY GROUPS
regular staff briefings performance reporting energy promotion
Applying Energy Management Principles STEP 10
PURCHASING POLICY Install high efficiency lighting on refurbishment Install high efficiency motors instead of rewinding existing units Can you purchase plant under Enhanced Capital Allowances? Is operating cost (life cycle) considered as well as purchase price?
Applying Energy Management Principles
A B
C D
E F
G
Most efficient
Least efficient
Potential operational saving
Applying Energy Management Principles STEP 11 SET REALISTIC OBJECTIVES & TARGETS
For the site For Energy Centres / Processes / Services Use appropriate criteria, e.g.:- degree days for temperature weight for production
Applying Energy Management Principles
AND FINALLY Feed the information back into the Action Plan Refine the plan Adjust the targets Keep on doing it!
• Understanding fuels • Technical Skills • Compliance skills • Information collection • Information Analysis • Resource availability • Commitment • Time
Key Challenges
Site energy consumption
25
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Incremental World Energy Demand Incremental energy demand by sector and region in the New Policies Scenario, 2008-2035
Source: IEA World Energy Outlook 2010
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What needs to be done
Source: IEA/UNIDO 2010
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WHY Energy Management Systems?
The problem: Energy efficiency is not integrated into daily management practices!
The solution: A systematic approach is required and top management must be engaged in the management of energy
The evidence: Most energy efficiency in industry is achieved through changes in how energy is managed rather than through installation of new technologies
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Ad hoc approach to energy management..
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Systematic Approach 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
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Case Study – Benchmarking in Foundry sector
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, Europe
Source: IFC, 2010
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Energy Management System (EnMS) An EnMS provides a structured and systematic
approach to integrate Energy Efficiency into industry corporate culture and daily management practices.
A framework for understanding significant energy uses
Action plans for continually improve energy performance
Structure and organizational framework to sustain energy performance improvements over time and change of personnel
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ISO 50001 Energy Management Standard
ISO 50001 is based on the Plan-Do-Check-Act continual improvement framework like ISO 9001 and ISO 14001
Compliance with the standard • Self-evaluation and self- declaration
of conformance
• Certification by external organization
ISO 50001 target to • Industry & power
sector • Commercial &
buildings • Transport
PLAN
DO
CHECK
ACT
Source: ISO 50001
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
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2-3% saving per year
EnMS Certification
What can an EnMS achieve?
Source: Ken Hamilton HP WW Manager Environment and Energy Services
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What can an EnMS/Standard achieve?
Management focus Systematic activity Obligation to train and raise awareness Obligation to provide resources Continuity through changes of personnel
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, USA)
For companies new to energy management, savings during the first 2 years are 10-20%
Energy and Cost Savings
Continual Improvement
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EnMS Standards – Some results Energy Management Standards – 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%e
United States Vol No Yes No Yes No Yes No Yes <5%
Japan^ Man No Yes Yes Yes No Yes Yes Yes 90%
Source: McKane A. for UNIDO
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ISO 50001 and Trade
Source: McKane, A. and Olsen, D., LBNL 2009
ISO 9000 Certificates
0
5000
10000
15000
20000
25000
30000
35000
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Tota
l Cer
tific
ates
(Sou
thea
st A
sia)
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
Tota
l Cer
tific
ates
(Nor
ther
n &
Wes
tern
Eur
ope)
South-Eastern Asia Northern and Western Europe
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ISO 50001 and Trade • Uptake of ISO 9001 in the supply chain was driven largely by Western
European countries and Japan
• Uptake of ISO 50001 will be driven by the US, Canada, the expanded EU, Japan, Korea, Brazil, China
• Use of ISO 50001 will be driven by companies seeking an internationally recognized response to: National and international energy efficiency and climate agreements National cap and trade programs, carbon or energy taxes Corporate sustainability/responsibility programs Increasing market value of “green manufacturing” Carbon trading schemes
• Companies will demand participation by their suppliers- this is already happening for environmental and lean manufacturing
• Exporters that position themselves now will be at a competitive advantage
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Opportunities and Challenges for Industry
• Cost reduction (energy, maintenance, downtime, etc.) & enhanced competitiveness
• Corporate image (environment, social responsibility, etc.)
• Green financing
• Carbon footprint
• Trade (i.e. compliance with international standards)
• In-house expertise & resources availability for EnMS implementation
• Integration with other management system standards (quality, environment, safety, etc.)
• Availability of expertise in the market for advising and assisting in implementation
Opp
ortu
nitie
s C
halle
nges
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Opportunities and Challenges for Policy-Makers EnMS and standard provide pillar for national EE and RE programmes EnMS and ISO 50001 applicable to all economy sectors significant
economies of scale Boost development of the EE service sector, including job creation Accelerate technology upgrade and innovation Proven international supporting policy best practices are available
Limited technical expertise and institutional capacity Supporting programs and incentives will be needed for wide and rapid uptake of EnMS and ISO 50001 need to allocate adequate resources Demonstrate benefits and measure impact Monitoring and verification Ensure market credibility certification and accreditation SMEs will need special attention and support
Opp
ortu
nitie
s C
halle
nges
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Energy Management System Standards
• Energy Management System Standards provide policy as well as market-driven tools to disseminate energy management best-practices and support their implementation
• National EnMS standards • Denmark, Sweden, Ireland, USA, South Korea, Thailand, South Africa,
China.
• Regional EnMS standards • EN 16001 – European Energy Management Standard – 1 July 2009 • Withdrawn in favour of ISO50001 – end of April 2012
• International EnMS standards • ISO 50001 – Energy Management Standard – 17 Jun 2011
Why use ISO 50001 for an EnMS?
• Standardised approach • Compatible with 9001, 14001, etc. • International recognition • Evidence for Corporate Social
Responsibility (CSR) • Meets Customer / Client requirements • Best practice
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Next Steps in ISO Technical Committee 242
Guidance and standards being developed for
• Implementing, maintaining and improving an EnMS using ISO 50001
• Energy metrics (baseline and performance indicators) • Energy auditing (technical) (parts 1 – 5) • EnMS auditing Measurement and Verification (M&V) • Benchmarking • Energy Service companies (ESCOs)
Joint working group with ISO TC 257
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Conclusions EnMS/ISO 50001 will assist companies and organizations in: • Actively managing energy use, reducing costs and exposure to energy prices
• Better utilizing company personnel and resources, including capital stock
• Continually improving energy performance
• Adopting energy efficiency best-practices and low-carbon technologies
• Improving enterprises’ and organizations’ bottom line
Improved Energy Productivity and Enhanced Competitiveness while delivering a substantial dividend to the Environment
leading to
The right programmatic and supporting framework will have to be in place to ensure good market penetration and effective
implementation, i.e. IMPACT
supported by
Why Energy Management?
Hong Kong Issues
Regulation
Possible Actions
Behaviour Change
Climate Change
Climate Changes - HK
Climate Change – Potential Impacts
Hong Kong GHG Emissions
Hong Kong Electricity
Solution – Demand Side Management
Benefits
Regulation / Guidance
Energy Labelling
Funding Schemes
Incentives – HK Awards
Carbon Calculators
Electricity Consumption
Local Benchmarks
ISO50001 The International
Energy Management System Standard –
EnMS
Composition of ISO 50001 4.1 General requirements 4.2 Management responsibility Top management Management representative 4.3 Energy Policy 4.4 Energy planning Legal and other requirements Energy review Energy baseline
Composition of ISO 50001 4.4 continued Energy Performance Indicators Energy objectives, targets & management action plans 4.5 Implementation & Operation Competence, Training, and Awareness Communication Documentation Operational control Design Procurement
Composition of ISO 50001 4.6 Checking Monitoring, measurement and analysis Evaluation of compliance Internal system Audit Non conformities 4.7 Management Review Inputs to review Outputs from review.
The 7 major implementation steps Step 1 – Getting started Step 2 – Profiling your energy situation Step 3 – Developing objectives, Targets and
action plans Step 4 – Reality checks Step 5 – Manage the current state and
improvements Step 6 – Check the system Step 7 – Sustain and improve the system
Courtesy - US Department of Energy Advanced Manufacturing Office
Implementation Process
Typical Energy Management Process
ISO 50001 It is not a competition! European Standard ended April Chinese Standard – GB23331
UK led development with British Standards Institute Based on committee member’s experience and that of other advisors Based on existing Energy Management approaches employed worldwide Based on recognised ‘Best Practice’ Piloted in mid June 2009 – 5 case studies Published as BS EN 16001 in September 2009 ‘Internationalised’, by negotiation, for conversion to ISO 50001 – in Beijing October 2010 and released June 2011
Final changeover to ISO50001 – JUNE 2012
Background to Standard
EnMS layout, paragraphs and approach based on existing
Standards such as: ISO 9000 ISO 14001
etc..
Relationships
Deming Cycle
STUDY
The International Energy Management
System Standard –
EnMS
ISO50001
4.1 General requirements 4.2 Management responsibility • Top management • Management representative 4.3 Energy Policy 4.4 Energy planning • Legal and other requirements • Energy review • Energy baseline
Composition of ISO 50001
4.4 continued • Energy Performance Indicators • Energy objectives, targets & management action plans 4.5 Implementation & Operation • Competence, Training, and Awareness • Communication • Documentation • Operational control • Design • Procurement
Composition of ISO 50001
4.6 Checking • Monitoring, measurement and analysis • Evaluation of compliance • Internal system Audit • Non conformities 4.7 Management Review • Inputs to review • Outputs from review.
Composition of ISO 50001
An Energy Management Policy created in sufficient detail AND fully implemented = (should meet)
The requirements of the EnMS
ISO 50001
Conclusion
Evaluate your Energy Management practices against those detailed in ISO 50001. If they are sufficiently encompassing then consider the internal and external benefits of becoming certified or Self certify your practices as a means of validation of those practices Apply for external certification if deemed necessary or possibly required by customers and clients
Opportunity
Establishing & Implementing and
EnMS
ISO50001 section 4.3 1. Energy policy
•Developing a meaningful and usable policy •Linking with other organisational policies •Scopes and boundaries (coverage) •Levels of commitment •Issues of accessibility & confidentiality •Periodic policy / strategy reviews and documentation •Policy content
Legal Organisational objectives Energy usage reduction targets
•Reviewing •Relating to other issues concerning energy such as purchasing (not tariffs) •Sufficient for purpose
•Exercise – Develop a sample one page policy document
See ISO50001 sections 3.11 and 3.17 for definitions and section 4.4.6 for precise requirement
2. Objectives and targets
•Consistency with policy •Targets •Objectives •Action Plan or Programme to achieve objectives and targets
•Exercise – Identify typical organisational objectives and targets
ISO50001 section 4.4.6
3. Programmes or Action Plans (ISO 50001)
•Responsible persons •Timetables •Verification of results / achievements
•Exercise – Create a prioritised Action Plan
ISO50001 section 4.2.2
4. Roles and responsibilities
•Designated Management representative •Individual roles and responsibilities •Resources to be made available
•Exercise – Who is fit for purpose
ISO50001 section 4.1 (b)
5. Scope and boundaries
•Physical or geographical limits declared as the boundary of operations covered •Energy uses to be considered within scope •Recording and delineating scopes and boundaries
•Exercise – Describe the boundaries and scope
ISO50001 section 4.4.3 (and 4.4.4 relating to energy baseline)
6. Energy review
•Cataloguing energy sources •Evaluating past / historical organisational performance •Creating a schedule of major energy using plant and equipment •Establishing plant and equipment performance measures / criteria •Developing baselines
•Exercise – List the key Review components
Sankey Diagram
Energy Performance
Mentioned in ISO50001 section 4.6.1
7. Metering plan
•Metering types •Metering locations •Installation timetable •Metering data plan
•Exercise – Develop a simple metering approach
8. Energy influences
•Energy Factor examples •Linking energy use with application / output •Degree days •Other possible factors •Recording factors / relationships for management purposes
•Exercise – List potential influences
ISO50001 section 4.4.3 (c)
9. Opportunities register
•Identifying and recording opportunities for energy saving •Assigning responsibility for follow up •Setting deadlines and due dates against each opportunity •Establishing priorities •Tracking opportunities to conclusion / completion
•Exercise – List potential opportunities to be recorded
ISO50001 section 4.6.1
10. Exceptions
.
•Monitoring consumption routinely (actual against expected) •Maintaining a list of past accidental deviations from expected consumption •Recording causes and remedies
•Exercise – List typical exceptions
ISO50001 section 4.5.2 11. Awareness, training and competence
•Qualifications of designated representative •Methods of communication to keep employees and contractors aware of the EnMS and energy-management activities? •Training staff with significant influence over energy consumption given training to maintain their competence related to energy responsibilities •Information and training provision on energy management for all levels of management •Training-needs analysis (linked to the register of roles and responsibilities
Exercise – Discuss best approaches to enrol staff members
ISO50001 section 4.5.5
12. Operational instructions, checklists and specifications
•Referencing all items such as checklists, specifications, documented maintenance procedures, standing orders (or anything else which describes how work is to be carried out) if they have energy efficiency implications •Dates for review or revision
•Exercise – List potential documents relative to this section
ISO50001 section 4.4.2
13. Legal and regulatory requirements
•Creating a list of applicable legal and other requirements •Sources of information •Relating legal and regulatory requirements to the organisation’s energy or major energy uses (ISO50001)
•Exercise - Discuss sources of information
ISO50001 section 4.6.4 14. Non-conformities This is taken to relate to administrative issues, i.e., non-conformance with the EnMS. Energy-consumption exceptions were dealt with separately.
•Establishing a systematic process for recording non-conformities •Corrective and preventive actions documented, with deadlines
•Exercise – What are minor and major nonconformities?
ISO50001 section 4.6.3 covers internal audits and 4.7 covers management review
15. Reviews and audits
•Recording of top-management reviews •Recording of remedial actions taken
•Exercise – Records and audit process
ISO50001 section 4.6.5
16. Document control
Note that completeness of the EnMS records is assured if the audit of all preceding sections concluded that the requisite registers and other documents exist in a satisfactory form.
•Control of relevant documents •Document legibility, identity and traceability •Document control committee
•Exercise – Types of documentation
In this section we bring together the
features of the exercises already carried out, plus the best approach to self
certification to decide how any size of organisation can internally audit and
then, if so required, self certify.
17 Self certification
Accurate recording and monitoring of energy usage leads to better GHG reporting
Warning
ISO50001 Implementation steps presentation
MIND MAP (after the break)
STEP 1 GETTING STARTED
Step 1.1 Make the business case
Step 1.1.1 Identify key internal influencers Step 1.1.2 Understand your business drivers Step 1.1.3 Prepare sales pitch Step 1.1.4 Brief top management
Step 1.2 Secure top management commitment
Step 1.2.1 Establish the scope and boundaries Step 1.2.2 Appoint a management representative Step 1.2.3 Assign the members of the energy team Step 1.2.4 Define the energy policy Step 1.2.5 Create organizational awareness Step 1.2.6 Ensure continual awareness
Step 1.3 Establish the structure for EnMS implementation
Step 1.3.1 Set the timeframe for implementation Step 1.3.2 Develop the implementation plan Step 1.3.3 Establish communication channels Step 1.3.4 Celebrate success often
Step 1.4 Understand the role of documents and records
STEP 2 PROFILE YOUR ENERGY SITUATION
Step 2.1 Identify, evaluate and track legal and other requirements
Step 2.1.1 Identify and access legal requirements Step 2.1.2 Identify and access other requirements Step 2.1.3 Establish a process for evaluating and updating requirements Step 2.1.4 Plan for evaluating compliance with legal and other requirements
Step 2.2 Acquire, analyse and track energy data
Step 2.2.1 Identify data needs Step 2.2.2 Determine availability of data Step 2.2.3 Formulate a process for acquiring and recording data Step 2.2.4 Investigate tools for analysing and tracking energy data Step 2.2.5 Choose and implement an energy data management tool
Step 2.3 Determine significant energy uses
Step 2.3.1 Prepare a list of your energy systems Step 2.3.2 Develop an energy balance Step 2.3.3 Determine criteria for significance Step 2.3.4 Record significant energy uses and the method used Step 2.3.5 Analyse and track significant energy uses
Step 2.4 Identify energy opportunities
Step 2.4.1 Use energy assessments Step 2.4.2 Utilise other methods
Step 2.5 Prioritise energy opportunities
Step 2.5.1 Get the right people together Step 2.5.2 Review relevant organizational information Step 2.5.3 Determine criteria Step 2.5.4 Develop tools or techniques for applying criteria Step 2.5.5 Apply criteria to prioritize opportunities
Step 2.6 Establish a baseline and determine energy performance
indicators (EnPIs)
Step 2.6.1 Get stakeholder requirements for measuring performance Step 2.6.2 Establish a baseline Step 2.6.3 Develop a list of possible EnPIs Step 2.6.4 Determine factors that affect EnPIs Step 2.6.5 Select and test EnPIs Step 2.6.6 Analyse EnPIs to determine performance
STEP 3 DEVELOP OBJECTIVES, TARGETS AND ACTION PLANS
Step 3.1 Establish energy objectives and targets
Step 3.1.1 Get the right people together Step 3.1.2 Provide appropriate inputs Step 3.1.3 Define and document objectives and targets Step 3.1.4 Obtain management approval Step 3.1.5 Communicate the energy objectives and targets
Step 3.2 Formulate energy management action plans
Step 3.2.1 Select projects based on resources and other factors Step 3.2.2 List the actions needed Step 3.2.3 Develop the schedule Step 3.2.4 Assign roles and responsibilities Step 3.2.5 Document and regularly update the action plans
STEP 4 REALITY CHECK: STOP! LOOK! CAN I GO?
Step 4.1 Review the status of your efforts
Step 4.2 Perform a sanity check on resources
Step 4.3 Identify accomplishments and lessons learned
Step 4.4 Conduct a management review
Step 4.5 Communicate across the organisation
STEP 5 MANAGE CURRENT STATE AND IMPROVEMENTS
Step 5.1 Manage and control information
Step 5.2 Determine operational controls
Step 5.2.1 Determine and establish effective operating criteria Step 5.2.2 Operate according to established controls Step 5.2.3 Communicate operational controls
Step 5.3 Ensure competence of personnel
Step 5.3.1 Define competencies Step 5.3.2 Assess personnel against competencies Step 5.3.3 Develop plan to address training needs
Step 5.4 Ensure awareness of personnel
Step 5.4.1 Define awareness requirements Step 5.4.2 Plan and implement training
Step 5.5 Define purchasing specifications for energy supply
Step 5.6 Incorporate energy considerations in procurement
Step 5.7 Manage energy considerations in design
Step 5.8 Communicate internally
Step 5.9 Decide on external communications
STEP 6 CHECK THE SYSTEM
Step 6.1 Monitor, measure and analyse key characteristics
Step 6.2 Calibrate monitoring and measuring equipment
Step 6.3 Evaluate legal and other compliance
Step 6.4 Plan and conduct internal audits
Step 6.5 Take action to correct and prevent nonconformities
Step 6.6 Check and use the evidence
STEP 7 SUSTAIN AND IMPROVE THE SYSTEM
Step 7.1 Collect information for management review
Step 7.2 Conduct management reviews
Step 7.3 Ensure continual improvement
An Effective Energy Management System =
1. Reduce operational costs
2. Reduced energy consumption 3. Reduced emissions to
atmosphere
World Experience! Thanks to: British Standards Institute
US – Department of Energy
United Nations International Development Organisation
International Standards Organisation
and many others Thank you for your attention
Open Discussion & Final Questions
Principal Consultant @
Trevor Floyd MSc., CEnv., CEng., MEI., CMarEng., MIMarEST., ACIBSE., MCMI.