energy management system iso 50001-2011 · introduction to the iso 50001 energy management system...

Energy Management System ISO 50001-2011

By: Eng. Fadi Al ShihabiSenior Manager – Ernst & YoungBEP, CEM,CRM

Energy Efficiency Certificate

Energy Futures Market

Renewable Energy

Certificate

Power/Energy Exchange

Energy Subsidy

Let us start by asking few questions…

How effectively are we managing our energy costs today?


Are we selecting our activities rationally, or by whim?


Are our economic criteria realistic, or wishful thinking?


Are we paying enough attention to risk?

Our agenda today

Energy Management System (EnMS) background

Energy Management systems (EnMS) are used world wide to optimize the energy usage to help organizations attain cost reduction, enhance energy security, improve reputation among stakeholders and also to reduce their carbon footprint. EnMS offers a systematic approach and a recognized framework to monitor and reduce the energy consumption in all types of organizations irrespective of the area of operation.

WHAT IS ENERGY MANAGEMENT SYSTEM?

6765

11985

2014 2015

Global ISO 50001 Certifications

77%

Key drivers for implementing an EnMS

Financial • On the long term, fossil fuel based energy prices increasing as global demographics and economic growth boost demand

• Price fluctuations in traditional energy sources impact the bottom line• Energy spent becoming a growing share of operational costs

Energy security• Political turmoil in the Middle East highlights energy availability risks• Production in high-growth emerging markets faces energy quality• Energy portfolio flexibility need to ensure operational consistency

Brand equity• Increasing consumer focus on sustainability• Industry leadership being defined outside of traditional metrics• Inaction becomes indefensible in light of smart energy developments and

the growing availability of energy efficiency technology

Regulatory• Energy performance targets defined by Governments challenge market

players• Polluter to pay principle becomes more applicable in many countries

especially with respect to energy and environment• Internal regulations and trade barriers may affect businessCompetition• Operational efficiency becomes a key differentiator in the economic down

turn • New reality of resource- constrained, low-carbon economy changes the

basis of competitive advantage• Clean tech (energy efficiency and renewable) adoption enabling long-term

market leadership

Reduce energy bills through efficient energy performance

Save in energy and diversify energy sources

Infuse confidence among stakeholders

Comply with regulation and best practices

Lead the market through energy efficiency and new technologies 1 23

Business risks EnMS solution

Introduction to the ISO 50001 Energy Management System

The organization shall:► Establish, develop, implement and maintain an

Energy Management System in accordance with the requirements of ISO 50001

► Define and document the scope and boundaries of its Energy Management System

► Determine and document how it will meet the requirements of the Standard in order to achieve continual improvement in its energy performance and of its System

General requirement of ISO 50001

Use of ISO 50001 will be driven by COMPANY NAME seeking an internationally recognized response to:

► International climate change agreements and regional clean energy, energy efficiency targets

► Corporate sustainability responsibility► Increase Market/Brand value► Supporting tool for green funds and carbon

emission reduction► Energy cost reduction initiatives► Demand side management monitoring

Uptake of ISO 50001

EnM

SD

ocum

en

tatio

n

Establish

Implement

Maintain

Scope and Boundaries

Requirements

EnMS

Define

Determine

to achieve continual improvement of energy

performance

ISO 50001 provides a framework of requirements enabling organizations to:

► Develop a policy for more efficient use of energy

► Establish an energy planning framework

► Fix targets and objectives to meet the energy policy

► Use data to better understand and make decisions concerning energy and carbon management

► Establish key performance indicators

► Measure the energy and GHG performance results

► Review the effectiveness of the policy

► Continually improve energy management and carbon abatement

EnMS as per ISO 50001

► Allows a company to monitor, understand and manage its use of energy

► Considers all systems, processes, procedures, personnel and equipment on an energy point of view

► Identifies those having a significant impact on energy use, consumption and efficiency

► Sets targets through energy benchmarking, data analysis and energy performance improvement

► Helps to develop strategies for efficient use of energy

Checking

Implementation and operation

Energy planning

Energy policy

Monitoring, measurement and analysis

Corrective and preventive actions

Internal audit

Management review

Continual improvement

10 steps to achieve ISO 50001

► Commitment through Energy policy► Top management’s official statement on commitment to manage energy

► Communicate the policy to all stakeholders► Establish a cross-divisional energy management team

► Collect data covering current and planned energy use► Track energy consumption and Identify key energy consuming equipments

► Establish a energy consumption baseline with in the defined boundaries► Identify energy saving opportunities and prioritize

► Design energy objectives and targets► Identify Energy Performance Indicators (EnPIs) to evaluate the performance

► Energy management plan along with activities, timelines and responsibilities► Develop Operation Control Procedures and documentation

► Prepare the monitoring and verification protocols► Measure, manage and document the energy performance against targets

► Implement the energy management system based on the action plan

► Identify risks related to performance and establish control procedures► Conduct the period internal audits to ensure adequate implementation

► Periodic reporting on energy performance progress to the management► Aim for continual improvement

RequirementsSteps

Commit

Communicate

Collect

Analyze

Design

Develop & Benchmark

Monitor

Implement

Control

Report

1

2

3

4

5

6

8

7

9

10

Top management

HR, Training and energy department

Energy team

Energy team and operation support

Energy team, top management and operation support

Resources needed

Energy planning in line with ISO 50001

Establish, implement and maintain documented energy objectives

Objectives

Set targets consistent with the objectives

Targets

Formulate action plans to achieve objectives and targets, legal/regulations and other requirements

Action Plans

Set EnPIs, measure energy performance. Eg. Electricity consumed per unit of gasoline delivered

Energy Performance Indicators (EnPIs)

Establish basis for energy performance comparison. Eg. Previous year average/design performance

Energy Baseline

Determine energy performance for identification of energy saving opportunities

Initial Energy Review

Energy audit following ISO 50002 during the energy planning

Energy Audit is an assessment of the current state of a building and the recommendations to improve its performance. Its purpose is to identify areas for improvements in order to provide savings and cost analysis for retrofits and strategy improvements.

It may include several phases according the level of study required. As per ASRAE, there is 3 consecutives levels of energy audit, starting with a preliminary energy-use analysis.

What is an Energy Audit?

A preliminary study is required by the surveyor to understand first the buildings operation: Historic utility use, peak demand and cost.

It allow the consultant to benchmark the targeted premises against peers with standard calculations:

• Energy Cost Index (ECI), expressed in money per floor area per year

• Energy Utilization Index (EUI), expressed in energy per floor area per year

The first analysis assess the potential for improved energy performance and energy saving opportunities.

First Energy-Use Analysis

The audit should have defined scope and level of efforts is tailored to the needs of the facility. The audit should consider the gross conditioned floor area. The energy performance assessment rely on the availability of data.

ApplicabilityLevel 3

Simulations and additional measurements

Techno Economic analysis

Level 2

Detailed energy audit Detailed breakdowns and EEMs

Level 1

Walk-through audit Identify energy efficiency measures (EEMs)

Preliminary Energy-Use Analysis

Benchmark against peers Low cost measures

Relationships of ASHRAE Energy Audit Levels

The most effective way to perform an energy review

For a complex production stream, it is better to first draft the overall

material and energy balance.

While splitting up the total system, choose, simple discrete sub-systems. The process flow

diagram could be useful here

Choose the material and energy balance envelope such that, the

number of streams enteringand leaving, is the smallest possible

Always choose recycle streams (material and energy) within the

envelopeThe measurement units may include,

time factor or production linkagesConsider a full batch as the

reference in case of batch operations

In case of shutdown losses, averaging over long periods may be

necessaryCalculate the gas volumes at

standard conditions

It is important to include start-up and cleaning operation consumptions (of

material andenergy resources (M&E).

Highlight losses and emissions (M&E) at part load operations if

prevalent.

For each stream, where applicable, indicate energy quality (pressure,

temp, enthalpy, kCal/hr, kW, Amps, Volts etc.).

While preparing M&E balances, precision of analytical data, flow and

energy measurementshave to be accurate especially in

case of short time span references

Typical Energy Balance approach and outcomes

The final outcome of the EnMS is to understand how your key energy assets perform over a period of time..

18

0

5

10

15

Actual Over Supply

Over Consumption Ineffic ient Genertion

Opportunity

Summary Opportunities Measures

No Detailed EEMs/ECMs

Annual Energy

Baseline

Annual Estimated Energy

Energy Reductio

nAnnual Savings

Implementation Cost

Payback

Equipment, measures

kWh or BTU

kWh or BTU % $ $ Months

Analyse current state Establish parameters

Contracted KVA load must be 10% more than the average demand of last six months

Specific Energy Consumption of TR generation cost should be with 10% of the industry benchmark

Generate Ideas and Freeze Specifications

Reduce contracted KVA load

Check Condensers and Evaporators

Install Retrofits (VFD) and energy efficiency chiller

Executive Summary

Low Payback prioritization for EEMs and ECMs

1000

1200

1400

1600

Period 1 Period 2 Period 3

Contract KVA Consumed KVA

0.8

1

1.2

1.4

Cost of Chilled WaterCompany Industry Benchmark

EnMS introduces the concept of Energy Performance Indicators for effective monitoring…

Date Doc. No. Rev. No. Page No.

6/2/2014 1 1

NO. LEVEL AREA UNIT

EnPI 9 L3 MUB GJ/MWh

Start Date 1-Jan-12

End Date 31-Dec-13

No. of Days 730

Baseline 2013 19

Target 2013 19

Selected Period Av. 18

EnPI DESCRIPTION

Selected Period

Performance

Fuel gas consumed per unit of power generated (MG-1/2GTG)

ADGAS

ENERGY MANAGEMENT SYSTEMEnPIs Monitoring

17.0

17.5

18.0

18.5

19.0

19.5

20.0

20.5

14-S

ep-1

1

23-D

ec-1

1

1-A

pr-1

2

10-J

ul-1

2

18-O

ct-1

2

26-J

an-1

3

6-M

ay-1

3

14-A

ug-1

3

22-N

ov-1

3

2-M

ar-1

4

Baseline Target Actual EnPI Monthly Av. Yearly Av. Selected Period Av.

181818181818191919

Baseline 2013Target 2013Selected Period Av.

From 1-Jan-12 40909

To 31-Dec-14 42004

Day 1

Month 1

Year 2012

Month/s 24

Enter Start Date

Enter Period

Display Curves

Validity

Baseline

Target

Actual EnPI

Monthly Av.

Yearly Av.

Selected Period Av.

COMPANY NAME

..based on the energy review, key energy efficiency projects are selected and prioritized

B Ease of Implementation

AD

irect

Fin

anci

al Im

pact

[Rev

enue

—C

ost]

Green Processors

Phase Changing Materials

Solar thermal for feed water heating

PC Power Managers

Dynamic Smart Cooling

Hard Disk drives by Green Power Technology

Glass with low ‘e’ and low ‘U’ value

HVAC Systems with heat regenerated desiccant

Server racks

Energy Efficient Printers, Copiers

Water cooled chillers

C

D

Size of bubble denotes the CAPEX required for the project

High cost Abatement Potential

Low cost Abatement Potential

Medium cost Abatement Potential

ILLUSTRATIVE

Getting the documentation for the ISO 50001 certification

COMPETENCE, TRAINING, AWARENESS► Imparting ISO 50001 general awareness training and

specialized training to employees► All employees will be trained on EnMS► Level and extent of training varies depending on the

type, department, roles and responsibilities of employee

DOCUMENTATION► Documentation includes preparation/drafting of

documents inline with the requirements of ISO 50001

► Documentation involves drafting of four levels of documents (see pyramid on the right)

Level 1Corporate

EnMS

Level 2Operating ISO

Procedures

Level 3Energy Management System

Methods and Procedures

Level 4EnMS Standard Forms and Site Records

Getting the documentation for the ISO 50001 certification

Level 2 – Operational Procedures► Procedure for Control of Documents► Procedure for Control of Records► Procedure for Internal Audit► Procedure for Control of Nonconformity► Procedure for Corrective and Preventive Action

Level 3 – EnMS Procedures► Communication Procedure► Management Review Procedure► Energy Review Procedure► Energy Forecast Procedure► Competence, Training and Awareness Procedure► Register of Opportunities (ROOP) Procedure

Level 4 – Forms and Records► Energy Performance Indicators (EnPIs) and Significant

Energy Uses (SEUs) ► Register of Opportunities ► Targets and Action Plan Form► Audit Plan and ISO 50001 Training Planning► Corrective and Preventive Action Request

Level 1 - Corporate► Energy Policy, Energy Boundary and Energy Team► Energy Manual► Legal and Other Requirements Register► Master List of Documents► Register of Opportunities (ROOP)► Internal Audit Plan

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