Energy Management Implementation Model and Standards

Transcription

1 Supported by EIE/04/246/S BESS Benchmarking and Energy management Schemes in SMEs Intelligent Energy Europe (EIE) EIE/04/246/S Deliverable D 2.1 Energy Management Implementation Model and Standards Final Report October 2005 This report is composed within Work Package 2 (leader Jozef Stefan Institute) Project coordinator name: Project coordinator organisation name: Boudewijn Huenges Wajer SenterNovem The sole responsibility for the content of this publication lies with the authors. It does not represent the opinion of the Community. The European Commission is not responsible for any use that may be made of the information contained therein.

2 1. SUMMARY 1.1 Introduction to the BESS Project The BESS project (Benchmarking and Energy Management Schemes in SMEs) is supported by the European Commission under the EU s Intelligent Energy Europe (EIE) Programme. The primary objective of the project is to promote widespread use of best practice energy management and benchmarking tools and to improve energy efficiency in industrial small and medium-sized enterprises (SMEs), with particular focus on the food and drinks industry. The main tasks of the project are: Development of an interactive tool (jointly with the industrial associations) for the promotion of a systematic approach to energy management and benchmarking. The tool will contain the following elements: selection of appropriate measures, implementation and day-to-day management, an e-learning scheme, and a monitoring and benchmarking system for the food and drinks industry. Pilots in 55 industrial SMEs. Comparative analysis of energy monitoring and benchmarking in 11 pilot countries. Targeted dissemination of the interactive tool in co-operation with the food and drinks industry associations. Seminars, internet and other information dissemination. The project started in January 2005 and the kick-off meeting was held in Utrecht, the Netherlands on 7-8 February The project is scheduled to be finalised by 30 April The project s internet address is More information on the project can be obtained from the project partners (see Annex 13 for contact information) and the project co-ordinator: Mr Boudewijn Huenges Wajer SenterNovem (The Netherlands) b.huenges.wajer@senternovem.nl Tel BESS EIE/04-246/S

3 2. EXECUTIVE SUMMARY - WORK PACKAGE 2 ENERGY MANAGEMENT IMPLEMENTATION MODEL AND STANDARD 2.1 Objectives The objective of Workpackage 2 of project BESS - Energy Management Implementation Model and Standards - is to provide an overview and inventory of useful existing schemes on energy management systems (implementation) and energy management standards. Through evaluation of the approaches a proposal for BESS energy management implementation model (BESS EMIM) is made, reflecting the potential accordance to energy management standards. The energy management implementation model will be tested during pilot phase (Workpackage 5), where selected companies will implement energy management according to BESS EMIM proposed. Based on evaluation of the companies the model will be reviewed and adjusted according to end-user experience. 2.2 Tasks Preparatory work In the Preparatory work an inventory of existing energy management systems and approaches was to be prepared taking into consideration the existing energy management systems and approaches, standard requirements of environmental driven energy management standards (e.g. Denmark, Sweden, Ireland), EU legislative framework on the issue of energy management and other. Developing an energy management implementation model and standard Based on best practice from inventory on energy management systems and approaches and other influencing factors (Plan Do Check Act approach, ISO 14001, EMAS and IPPC requirements, energy auditing, checklists an Energy Management Implementation Model had to be developed in the form, where the implementation activities and tools are described including linking lists to existing energy management standards (e.g. Danish Standard). The tools which are under development are part of a pilot package which will be tested and evaluated by participating pilot SMEs and associations and afterwards adjusted accordingly 2.3 Results European Union has a long tradition of energy management activities, but yet has not adopted any EU wide energy management document. There are several approaches which can be divided into following categories: Environmental management (ISO14001/EMAS/PDCA Cycle) driven energy management (Denmark, Sweden, Netherlands, Ireland, Canada, EMAS Toolkit) Individual management approach (UK, Australia - based on UK experience, Ireland) Most known environmental management systems are ISO and EMAS, but also IPPC (Integrated pollution prevention control) requires of a company to deal with energy efficiency in structured way. Some EU countries therefore used ISO as basis for defining the energy management standard which is a basis framework for energy management implementation model. The BESS approach follow the energy management standard definition as derived from environmental management system ISO 14001, but with certain provisions that are more applicable to SMEs. The proposed BESS-EMIM consists of following steps (which do not follow in consequential order, but rather present the contents (framework), while the timing of performing individual actions depends on specific needs of the company and level of introduction of energy management into existing company structure. BESS EIE/04-246/S

4 A. START (applicable when implementing PDCA activities systematically for the first time) A1-Business Case, A2-Selfassessment, A3-Energy management implementation project plan A4-Definitions, A5-Specifications B. UNDERSTAND B1-Energy Audit, B2-Tools, B3-Legislative & Regulative Framework C. PLAN C1-Action Plan, C2-Roles and Responsibilities D. COMMIT D1-Energy Policy, D2-Energy Coordinator, D3-Energy Team E. IMPLEMENT E1-Implement Action Plan (Energy Savings Register, Awareness /Communication, Training /Education), E2-Operation and Maintenance F. EVALUATE F1-Energy Management Checklist, F2-Indicators, F3-Benchmarking, F4- Monitoring and Targeting G. REVIEW G1-Revision, G2-Improve The standard on energy management, as proposed by BESS project consists of the same elements as Dutch approach to energy management (and Danish/Swedish/Irish standard). The linking list describes the connection between the BESS EMIM and standard requirements. SenterNovem BESS approach/danish Standard BESS 4.2 Energy policy D1 4.3 Planning Review of energy aspects B Legal and other requirements B Performance and targets F Energy management programmes C1 4.4 Implementation and operation Structure and responsibility C2, D2, D Training, awareness and competence E Communications E Energy management system documentation Document control (D, E2) Operational control E2 4.5 Checking and corrective action Monitoring and measurement F2, F3, F Non-conformance and corrective and preventive action G1, G Records B2, E2, F Internal audit of the energy management system A2, F1 4.6 Management review A2, F1 BESS EIE/04-246/S

5 Table of Contents 1. SUMMARY Introduction to the BESS Project 2 2. EXECUTIVE SUMMARY - WORK PACKAGE 2 ENERGY MANAGEMENT IMPLEMENTATION MODEL AND STANDARD Objectives Tasks Results 3 3. INTRODUCTION INVENTORY OF EXISTING EUROPEAN ENERGY MANAGEMENT SYSTEMS AND ENERGY MANAGEMENT STANDARDS DENMARK Ireland United Kingdom Portugal Netherlands Canada Australia ENVIRONMENTAL AND ENERGY SYSTEM RELATED ENERGY MANAGEMENT SYSTEMS ISO IPPC directive The IPPC Directive and energy efficiency Technical Working Group On Energy Efficiency EMAS scheme - The EC eco-management and audit scheme Differences between ISO and EMAS The three requirements of EMAS The EMAS Energy Efficiency Toolkit for small and Medium sized Enterprises ENERGY MANAGEMENT IMPLEMENTATION MODEL Introduction Evaluation of energy management standard Evaluation of energy management models (approaches) BESS energy management implementation model proposal (BESS-EMIM) Implementing the BESS-EMIM model Proposal for Energy Management Specification REFERENCES Annex 1 Draft BESS Energy Management Specification Annex 2 Draft BESS Energy Management Checklist (printable version of the interactive excel tool) Annex 3 Draft BESS linking lists (between the BESS Energy Management Specification and the other management systems/standards i.e. ISO 9001/2000, and the HACCP food safety) BESS EIE/04-246/S

6 3. INTRODUCTION Energy management is a systematic and structured approach to improve energy efficiency and at the same time contribute to reducing environmental impacts of energy use. Energy management is a method to secure a constant improvement of the energy efficiency in a company. It improves environmental profile of the company and considerably reduce costs for energy (electricity, fuels) and energy use related environmental costs (taxes). Experiences show that many companies can reduce their energy costs considerably by implementing energy management. Typically, a company reduces its energy consumption by approximately 5 to 15 per cent during the first years of implementation. The concepts for energy management were developed in the 1980s in close co-operation with industrial organisations. The development was in most cases combined with other activities, such as cost-reduction policies, voluntary agreements, demand side management, environmental demands etc. Energy management is becoming much more challenging and more important to businesses today. In addition to the increasing costs involved, price volatility and supply reliability have become real issues that can affect a business profitability. To succeed in this environment, a more structured approach to energy management is required, one that examines internal practices across all disciplines, far beyond the technical audits that have been used for years. The overview is concentrating on possible European wide approach to energy management, which could include experience form different countries and integrating several recommendations from different (cross-sectoral) drivers (systems), e.g. standards (DS 2403 in Denmark), environmental standards (ISO 14001) or mandatory/voluntary approaches (EMAS, IPPC, voluntary agreements). The overview of existing energy management is structured as a three-way approach: 1. Individual country related (Denmark, Ireland, UK, Australia, New Zealand, Sweden, Canada, others), 2. European Commission recommendation/activities on energy management 3. System and Environment driven energy management (standards, ISO 14001, IPPC, voluntary agreements...) The description of the deliverable D 2.1 contained in this report is phrased in the Annex 1 of the Grant Agreement with the Commission as follows: Report on the results of the inventory of existing European energy management systems and energy management standards, requirements for energy management standards for SME s, the chosen implementation model of energy management and proposed elements for energy standards in EU for SMEs, including a draft interactive checklist tool for inclusion in the web based e-learning pilot package. In this 2 nd draft report some terms are used which need possibly to be revised or harmonized with similar terms used in other 2nd draft BESS reports; it is the intention to have unambiguous terms and definitions in the final version of this report. BESS EIE/04-246/S

7 4. INVENTORY OF EXISTING EUROPEAN ENERGY MANAGEMENT SYSTEMS AND ENERGY MANAGEMENT STANDARDS Europena union has a long tradition of energy management activities, but yet has not adopted any EU wide energy management document. There are several approaches which cvan be divided into following categories: Environmental management (ISO14001/EMAS/PDCA Cycle) driven energy management (Denmark, Sweden, Netherlands, Ireland, Canada, EMAS Toolkit) Individual management approach (UK, Australia - based on UK experience, Ireland) Most of the activities, described or used in these approaches are the same throughout large majority of them, considered to be long-known from energy conservation activities. However a tendency has been observed in last years to prepare a standardized approach to energy management based on ISO 14001/ISO 9001 standards. Also CEN/CENELEC, the standardization authority of Europe is discussing the possibility to prepare EU standard on energy management with reflection to ISO structure, which is already the case in several countries). 4.1 DENMARK 1. An Energy Management Standard (DS 2403) was introduced in 2001 in Denmark in order to provide organizations with guidance on energy management. The Danish standard on energy management was introduced in May 2001 and provides a framework for individual companies to tailor their own energy management system and describes it in more detail in separate pamphlet. The EMS is also a cornerstone of the voluntary agreement scheme. The guidelines on DS 2043 (DS/INF 136, published by DS in 2001) enable organizations to fulfil the recommendations is also an essential part of the voluntary agreements scheme on energy efficiency. DS 2403 has been developed with close connection to ISO and is meant to demand only minimal work if ISO is adopted within the company. IT is the most comprehensive upto-date approach in energy management and as such basis for some other countries to copy its content. Table of content consists of: 1. Scope 2. Normative references 3. Definitions 4. Energy management system requirements 4.1 General requirements 4.2 Energy policy 4.3 Planning Review of energy aspects (initial review, periodically revision of the review) Legal and other requirements Performance and targets (set energy targets) Energy management programmes (responsibilities, means and time-frame, documented) 4.4 Implementation and operation Structure and responsibility (roles, responsibilities, authorities, resources) BESS EIE/04-246/S

8 4.4.2 Training, awareness and competence (identify training needs, employees awareness) Communications (internal for energy and environmental management systems, active part of employees) Energy management system documentation (paper or electronic description of core elements of EMS) Document control (controlling records and other documents for location, periodically review, current versions, obsolete versions removed) Operational control (operation and maintenance of equipment with significant energy consumption, energy conscious purchasing, energy conscious design activities) 4.5 Checking and corrective action Monitoring and measurement (documented data and procedures, meters accuracy, compliance to legal/other requirements) Non-conformance and corrective and preventive action Records Internal audit of the energy management system (confirmation to the requirements of the standard, effective implementation) 4.6 Management review (periodically revision of top management, identify possible needs for changes, continual improvement) Detailed information on compatibility for SMEs and additional comments are in Annex 1, organized as chapters above. The general requirement of the standard is that the organization establishes an energy management system and reviews the system regularly to identify new opportunities for improvement and implement new energy conservation measures. It follows well known principle of constant improvement PDCA (Plan-Do-Check-Act) as shown on Figure 1. Figure 1: Step by Step Danish Standard Approach to Energy Management Advantages of the Danish Standard energy management system 1 : 1 With input by Alan Ryan, Sustainable Energy Ireland, Description of DS 2403 BESS EIE/04-246/S

9 structured management standard which concentrates on energy, and is easily achieved if an organisation has an ISO / management system in place already structure and terminology are parallel to ISO and ISO 9001, but focuses only on energy proved energy savings in Denmark range from 10 to 15% energy efficiency becomes organisational requirement by top management certification issued after approval large companies prefer certified or structured management systems certification is done by a management system expert and an energy technical expert, so the certification process is valuable, challenging and detailed covers all topics of energy supply, transformation, use, behaviour, technology, people well documented (ISO 9001 based) can be used in any agreements where energy apllies Disadvantages of the Danish Standard energy management system 2 : in itself, it only guarantees a minimum energy management level the degree to which companies implement DS 2403 varies the focus for companies is to satisfy the system, not to implement best practice in energy management if you do not have a formal documented management system in place, it will require additional resources and expertise to implement too complex for SMEs where no ISO (ISO 9001) can be too formal 4.2 Ireland 1. In Ireland no formal energy management scheme is in place. However, in 2004 the preparation on Irish Standard on Energy Management was initiated following the principles of Denmark standard DS Currently a draft for Energy management System has been prepared by Sustainable Energy Ireland (a partner in BESS project). It is expected that Irish Standard on Energy Management will be approved in For reasons, described in chapter 4 on Danish Standard advantages/disadvantages, an integrated, hybrid system of Danish Standard Approach and SME-friendly Energy Management Action Programme 3 (EMAP) is in preparation, integrating parts of standard content and other recommendations/requirements (like IPPC). A so called Sustainable Energy Initiative was launched by sustainable Energy Ireland in 2005, consisting of integrated approach to energy management. The approach combines two main tools: voluntary but binding agreement based on the new Irish Standard IS393 (in preparation) on energy management systems, intended for those organisations that feel they are already adequately equipped in terms of energy management and procedural experience to take such a step. The standard in itself is similar to Danish standard, described in previous chapter. E-MAP - Energy Management Action Programme, a set of 22 actions arranged within five related themes which, if fully and appropriately implemented by an organisation, will establish an energy management function able to identify and avail of opportunities for 2 With input by Alan Ryan, Sustainable Energy Ireland, Description of DS Information by Alan Ryan, Sustainable Energy Ireland BESS EIE/04-246/S

10 energy efficiency, energy cost savings and reductions in energy-related emissions. Product concept The full E-MAP package (when finished) is to be available to organisations which register with SEI, and includes: o more detailed (but succinct) written advice on how to implement each of the actions most effectively; along with the E-MAP model itself, this is available to all via a user-friendly E-MAP website managed by SEI o the possibility of limited guidance from a panel of experienced mentors trained in all aspects of the E-MAP approach o an occasional newsletter with case studies, news and other relevant information, and o an opportunity for an assessment of your implementation of the actions, together with feedback on making your energy management even more effective In addition, organisations may avail of the opportunity to: o participate in SEI s energy management training courses, in the knowledge that these have been designed with the E-MAP philosophy in mind o access a comprehensive database of technical opportunities for energy efficiency improvement, structured with the E-MAP in mind, and available to all via SEI s website o participate in SEI s Energy Awards Scheme, the judging criteria for which are compatible with the E-MAP structure and philosophy o (later on, as the number of organisations participating increases) network with other organisations using the E-MAP approach, either through an electronic forum established for the purpose by SEI or through SEI s training and other energy management events The spectrum of organisation s engagement ranges all the way from casual use of the E-MAP package materials via the internet, through use of the E-MAP framework as a template for selfbenchmarking of existing energy management systems, through availing of the mentoring service, to use of the informal assessment/feedback service. For organisations that decide to pursue the new Irish Standard on Energy Management Systems (IS393), the E-MAP package provides an excellent preparation. Obtaining IS393 should be relatively easy after full implementation of E-MAP. And it is likely that organisations will find it easy to fulfil IPPC energy requirements (where relevant) if they have implemented the E-MAP approach and philosophy. For the purpose of Irish Energy Agreements the E-MAP process (approach) will be used. Draft of EMAP is already available in 2005, implementation of the scheme is subject to discussion with stakeholders on the subject. 3. Main existing approach for industrial consumers is Large Industry Energy Network (LIEN), voluntary networking initiative of companies who are committed to reducing their energy intensity on an individual basis, and who recognise the benefits that can flow from collaborating with like-minded organisations on innovations and best practices in energy management. The Large Industry Energy Network (LIEN) is operated by Sustainable Energy Ireland for the largest industrial energy consumers in Ireland, i.e. those with an annual energy spend over 1m, with the average spend around 4m. This voluntary approach has been effective in removing barriers through its extensive informational and networking activities. In particular, the key technological and commercial BESS EIE/04-246/S

11 barriers to energy efficiency in large industry have been explored extensively to enable members to choose profitable energy saving projects and actions. Membership involves a readiness to engage in a high level of networking between the members, with a view to sharing information and experiences in the area of energy management. In order to achieve significant energy savings, members of the Network employ a wide variety of technologies and management (including energy management) approaches. These include investments in technologies such as compressed air, refrigeration, energy efficient lighting, motive power, building management systems and combined heat & power (CHP). Other approaches include Monitoring & Targeting (M&T), staff awareness campaigns and energy management teams. The LIEN has grown from a pilot project in , involving ten major companies from varying sectors, to the current situation where 80 of Ireland's largest industrial companies are members. The combined energy expenditure of the programme is around 300m per annum. This accounts for around 40% of the total annual industry energy expenditure in Ireland. Sustainable Energy Ireland publishes an annual report, which shows the performance of every company over recent years and at the same time highlights achievements, case studies and trends. Workshops and seminars are organised throughout the year for LIEN members, providing them with a forum to learn from energy experts and other specialists, as well as from other energy managers. 4. To provide assistance to Integrated Pollution Control (IPC) licensees (Integrated Pollution Level Energy Policy Organising Motivation Information Systems 4 Energy policy, action plan and regular review have commitment of top management as part of an environmental strategy Energy management fully integrated into management structure. Clear delegation of responsibility for energy consumption. Formal and informal channels of communication regularly exploited by energy manager and energy staff at all levels. Comprehensive system sets targets, monitors consumption, identifies faults, quantifies savings and provides budget tracking. Marketing Marketing the value of energy efficiency and the performance of energy management both within the organisation and outside it. Investment Positive discrimination in favour of green schemes with detailed investment appraisal of all new-build and refurbishment opportunities. 3 Formal energy policy, but no active commitment from top management. 2 Un-adopted energy policy set by energy manager or senior departmental manager. Energy manager accountable to energy committee representing all users, chaired by a member of the managing board. Energy manager in post, reporting to ad-hoc committee, but line management and authority are unclear. Energy committee used as main channel together with direct contact with major users. Contact with major users through ad-hoc committee chaired by senior departmental manager. M&T reports for individual premises based on sub-metering, but savings not reported effectively to users. Monitoring and targeting reports based on supply meter data. Energy unit has ad-hoc involvement in budget setting. Programme of staff awareness and regular publicity campaigns. Some ad-hoc staff awareness training. Same pay back criteria employed as for all other investment. Investment using short-term payback criteria only. 1 An unwritten set of guidelines Energy management is the part-time responsibility of someone with lim ited authority or influence Informal contacts between engineer and a few users. Cost reporting based on invoice data. Engineer compiles reports for internal use within technical department. Informal contacts used to promote energy efficiency. Only low cost measures taken. 0 No explicit policy No energy management or any formal delegation of responsibility for energy consumption No contact with users. No inform ation system. No accounting for energy consumption. No promotion of energy efficiency. No investment in increasing energy efficiency in premises. Prevented Control - IPPC) to conduct consistent and effective Energy Audits at industrial sites a Guidance Note on Energy Efficiency Auditing has been published by Irish Environmental protection agency (EPA), where auditing is regarded as one of elements of energy management systems. A matrix to self-evaluate energy management system in company is presented (see Figure 2). BESS EIE/04-246/S

12 Figure 2: Energy Management Matrix For IPC (IPPC) applicants a recommendation is given on energy management systems in chapter 2.2.1, where According to Sustainable Energy Ireland3, typically a company can save 2 or 3% of its energy through improving its energy management systems. The Auditor should review the site s energy management system, if one exists, against best practice and make recommendations for improvement. Site operators should strive to develop their energy management systems on a prioritised basis as part of a continuous and cyclical process of improvement. This can be done by identifying the level of development of different elements of the site s energy management system on the energy management matrix included in Appendix II (Figure 2). Level 4 of the matrix represents Best Practice in the field. However, this level of development may not be appropriate for all sites. It is suggested the operator of an IPC (IPPC) licensed site is required to submit a summary report on the Energy Audit to the Agency. This report shall include among others also an overview of the status of the energy management system at the site. 4.3 United Kingdom 1. United Kingdom has a long tradition on energy management as being one of the first countries to develop and publish guidebooks on energy management. There is no formal energy management scheme in UK but a reference brand-name Action Energy from the Carbon Trust is the main information source on energy management issues, mostly available on the web. Many publications are available on energy management issues, from general publications to sector or technology specific. Companies are encouraged to use for them one of most suitable energy management approaches. All relevant documents are available at 2. An example of five step approach (basics from 1990s) is presented in Good Practice Guide A Strategic approach to energy and environmental management (GPG376) where a combined approach to energy and environmental management is described. A known energy management matrix (Figure 2) is upgraded into energy and environment matrix, where the combined energy and environmental matrix is similar but covers a broader range of activities. A five step approach is presented in Figure 3 and include similar elements as Plan-Do-Act- Check (PDAC) approach. The five-step approach to energy and environmental management is familiar to anyone who has ever implemented change management or quality management schemes in their business. This approach will keep the management process on track and help to avoid the many barriers that hinder progress. 3. The Energy Efficiency Accreditation Scheme is recognised as the national benchmark standard in energy efficiency. It enables achievement in the management and use of energy to be tangibly recognised, through an award from the leading professional body, the Energy Institute. Accreditation is achieved by meeting set standards that are independently assessed and moderated. Over two hundred leading organisations in business, industry and the public sector have gained accreditation. They have done so by demonstrating: management commitment to energy efficiency BESS EIE/04-246/S

13 investment, both actual and planned, in energy efficiency measures a record of progressive improvement in energy efficiency. Figure 3: Five step approach to energy and environmental management The Scheme is open to any organisation from the industrial, commercial or public sectors, with single or multiple sites. Accreditation does not require organisations to be reaching state of the art standards. It requires proper attention to the management of energy, evidence of progressive improvement in standards and a commitment to make further progress. The award is valid for three years, after which re-accreditation is gained if, upon re-appraisal, standards are shown to have been maintained. For accredited organisations that wish to check their progress between accreditations, an interim assessment service is available. Energy efficiency improvements have long been recognised as the cheapest and quickest way of combating the threat of global warming, and the Scheme provides an excellent framework for a CO2 reduction programme. It is therefore an excellent way of demonstrating environmental commitment as well as achievement in energy efficiency. Evaluations are carried out by independent, experienced assessors who have undergone training to ensure that assessment will be made consistently and to the high standards required. The Energy Efficiency Accreditation process relies heavily on the professional experience of the Assessor and allows for considerable flexibility in the way that judgements are made, within a set framework for achievement. The demonstration of prior improvements in specific energy consumption is key. Assessors must be highly experienced energy efficiency practitioners or consultant advisors, who have a number of years' experience and who have undergone training in the requirements of the assessment process. Their expertise lies in the efficient usage of energy resources and the systems / procedures required to achieve that end. They are not generalists (to the contrary of EMAS/ISO auditors). The assessment falls into three major parts: Management commitment to energy efficiency policy, management structure, procedure for monitoring and encouraging efficiency, awareness and training programs, and program support BESS EIE/04-246/S

14 Investment in energy efficiency measures capital investment in energy efficiency, provision in plans and budgets, consideration of energy efficiency in other investments, and other forms of expenditure (manpower, training, management) Energy efficiency improvements reduction in key KPI s, trends over 3 years, performance against national benchmarks Advantages of the EEA scheme 4 : The fact that it was an award, not just another certification process was considered to be extremely positive and beneficial The assessment and the assessors were extremely helpful and were experts in energy management and its application. Simple, easily understood, easily achievable minimum energy management level. The award scheme was seen as a positive marketing tool, and many companies displayed the schemes logo Disadvantages of the EEA scheme 4 : The scheme is audited only every 3 years, there are interim assessments but they are not compulsory The scheme is expensive, 6500 for companies of an energy bill of > 1.27m, 5100 for companies with a bill of 127k 1.27m, and 2250 for energy bill of < 127K. This is expensive for what is in effect just a national scheme and not a formal certification. If the assessor is sub standard or not committed, a lot of the value of the survey and assessment is lost. A company just had to provide evidence of the required items. The requirements were not structured, they operated in isolation. Not so much a management system, as a good management check list. Degree to which a company implements the scheme varies. You can be very poor and still get the EEAS, as long as you can demonstrate commitment to improvement. 4.4 Portugal The Regulation for Energy Management (RGCE) has been introduced in 1982 and targeted mainly at the industrial sector. RGCE applied to energy-intensive companies and established goals for the progressive reduction of specific energy consumption. In addition, RGCE has been made mandatory for every company that apply for a grant.s rational use of energy projects, with annual energy consumption higher than GWh, to carry out an energy audit every 5 years and set-up as well implement an energy management plan for the subsequent 5 years. RGCE has also obliged companies to monitor their energy management plans in order to assure its successful implementation. The Rationalisation Plan has a period of application of 5 years; this represents a series of modifications and/or transformations to be made as a result of the energy audit. The primary objective of the RGCE-regulations was to influence companies to consider energy as a cost factor. The regulations establish goals for companies to progressively reduce their specific energy consumption. In addition, the regulations require companies to account their energy use, to prepare and carry out plans for rationalizing their energy consumption and to achieve the energy savings. Because of the difficult economic situation the RGCE-system has not been working according to intentions. 4 With input by Alan Ryan, Sustainable Energy Ireland, Description of EEAS BESS EIE/04-246/S

15 4.5 Netherlands Developments in the area of energy management have switched to high gear in recent years in Netherlands. Government on all levels, organization and business are now convinced that energy management is vital to achieving sustainable energy efficiency improvements. Formal agreements on energy management have also been established (as obligatory part) in the Long Term Agreements in energy efficiency (LTAs). In the last two years the SenterNovem (Netherlands) prepared probably the most comprehensive energy management approach (including instruction, support etc.), whereas the system for energy management is constructed based on PDCA methodology and with respect to ISO standard on environmental management systems. Information materials (toolkit) consist of series of brochures about energy management: Energy management system specification with guidance for use Energy management checklist Structural attention for energy efficiency by energy management. Brochures were published in 2002 and 2004 by the Ministry of Economic Affairs and SenterNovem within the framework of LTA2 facilitation programme. Like the ISO standard, the energy management approach (toolkit) in Netherlands can be widely applied in all sectors and both in large and small companies and organizations, taking into account the nature of the organization and adapt the recommendations according to the structure, size and level of commitment. In content the Netherlands approach to energy management is the same as in Denmark with additional features on guidance and tools for easier implementation. The difference between the approaches is that Dutch approach is mandatory for LTA companies, where Denmark approach is a certification (standard) based process. 4.6 Canada The Canadian Industry Program for Energy Conservation (CIPEC) was established to promote effective voluntary action that reduces industrial energy use per unit of production, thereby improving economic performance while participating in meeting Canada s climate change objectives. CIPEC has been helping Canadian industry to improve energy efficiency for more than a quarter of a century. It is the most important part of the Industrial Energy Efficiency program at NRCan s OEE. CIPEC is an alliance between industry and the Government of Canada to increase energy efficiency, limit emissions of greenhouse gases and improve the competitiveness of Canadian industry. CIPEC provides a focus for setting energy efficiency improvement targets and the development and implementation of action plans at the industry sector and sub-sector levels. CIPEC works with industry sector task forces and trade associations to track and report energy efficiency improvements and related reductions in emissions. It works to help the implementation of energy efficiency programs for example, by publishing this Guide. To help industry meet this double challenge, the Canadian Industry Program for Energy Conservation (CIPEC) is issuing this new edition of the Energy Efficiency Planning and Management Guide, produced by the Office of Energy Efficiency (OEE) of Natural Resources BESS EIE/04-246/S

16 Canada (NRCan). First published in 1981 and revised in 1993, this edition of the Guide was extensively rewritten and updated with the newest information available at the time of printing. The table of content is presented below. It consistes of three parts: 1. Energy efficiency management on setting energy management programme 2. Technical guide to energy efficiency planning and management on technical information for diverse energy using technologies 3. Evaluation Worksheets for check-up of potential improvements ENERGY EFFICIENCY PLANNING AND MANAGEMENT GUIDE TABLE OF CONTENTS PART 1 - Energy efficiency management in the Canadian context 1.1 Setting up and running an effective energy management program Strategy considerations, Defining the program, Environmental management program How to implement it, Energy management training assistance 1.2 Energy auditing (Audit initiation, Audit preparation, Audit execution, Audit report, Postaudit activities Implementing energy efficiency, Audit assistance) 1.3 Assistance for energy management programs and environmental improvements (Activities of the Government of Canada, Provincial and territorial government activities, Associations and utilities, Other sources of assistance) PART 2 - Technical guide to energy efficiency planning and management 2.1 Managing energy resources and costs (Energy market restructuring in Canada, Monitoring and targeting) 2.2 Process insulation (Economic thickness of insulation, Keep moisture out, Environmental considerations, More detailed information, Energy management opportunities 2.3 Lighting systems (The Energy Efficiency Act Environmental considerations) 2.4 Electrical systems Understanding electrical billings Time-of-use rates Time-shifting consumption and real-time pricing Energy management opportunities Reducing peak demand Reducing energy consumption Improving the power factor 2.5 Boiler plant systems Heat lost in flue gas Fouled heat-exchange surfaces Hot blowdown water Heat loss in condensate Environmental considerations Low NOx combustion Energy management opportunities More detailed information 2.6 Steam and condensate systems Pipe redundancy Steam leaks Steam trap losses Heat loss through uninsulated pipes and fittings Environmental considerations Energy management opportunities More detailed information 2.7 Heating and cooling equipment (steam and water) Cleanliness of heattransfer surfaces Removing condensate Insulating heating and cooling equipment Environmental considerations Energy management opportunities More detailed information 2.8 Heating, ventilating and air-conditioning systems Energy management opportunities Cost-reduction measures Reduce humidification requirements Other low-cost EMOs Retrofit EMOs Solar energy Ground-source heat pumps Radiative and evaporative cooling; thermal storage Waste heat from process streams Other retrofit EMOs Environmental considerations More detailed information. 2.9 Refrigeration and heat pump systems Energy management opportunities Costreduction measures Ground-source heat pumps Retrofit EMOs Other retrofit EMOs Environmental considerations More detailed information 2.10 Water and compressed air systems Water systems Energy management opportunities Compressed air systems Energy management opportunities Environmental considerations More detailed information 2.11 Fans and pumps Motors and drives Fans Energy management opportunities Pumps Other energy management opportunities Environmental considerations More detailed information BESS EIE/04-246/S

17 2.12 Compressors and turbines Compressors Energy management opportunities Turbines Energy management opportunities Environmental considerations More detailed information 2.13 Measuring, metering and monitoring Accuracy Energy management opportunities Environmental considerations More detailed information 2.14 Automatic controls Control equipment Environmental considerations 2.15 Architectural features Reducing heat transfer Windows Reducing air leaks Energy recovery Central building energy management Other energy management opportunities Environmental considerations 2.16 Process furnaces, dryers and kilns Heat losses Controls and monitoring Drying technologies Heat recovery Energy management opportunities Environmental considerations More detailed information 2.17 Waste heat recovery Heat recovery technologies Energy management opportunities Environmental considerations More detailed information 2.18 Combined heat and power (CHP cogeneration ) Technology Energy management opportunities Environmental considerations More detailed information 2.19 Alternative approaches to improving energy efficiency Renewable energy Wastewater treatment plant (WWTP) EMOs Miscellaneous Where applicable Evaluation Worksheets 1. Audit mandate checklist 2. Process insulation evaluation worksheet 3. Lighting systems evaluation worksheet 4. Electrical systems evaluation worksheet 5. Boiler plant systems evaluationworksheet 6. Steam and condensate systems evaluation worksheet 7. Heating and cooling equipmentevaluation worksheet 8. Heating, ventilating and air-conditioning systems evaluation worksheet 9. Refrigeration and heat pump systems evaluation worksheet 10. Water and compressed air systems evaluation worksheet 11. Fans and pumps evaluation worksheet 12. Compressor and turbines evaluation worksheet 13. Measuring, metering and monitoring evaluation worksheet 14. Automatic controls evaluation worksheet 15. Architectural features evaluation worksheet 16. Process furnaces, dryers and kilns evaluation worksheet 17. Waste heat recovery evaluation worksheet Setting up an effective energy management program follows proven principles of establishing any management system. Also here a Deming cycle with PDCA methodology is used. An energy management plan is presented in Figure 4. BESS EIE/04-246/S

18 Figure 4: Energy Management Plan Another source of information is the handbook on energy management information systems (EMIS), written for all levels of management and operational staff, aims to give a structured and practical understanding of an Energy Management Information System (EMIS) and to serve as an instruction guide for its implementation. Because it covers all aspects of an EMIS including metering, data collection, data analysis, reporting and cost/benefit analyses this handbook is an integral part of a company s Energy Management Program (EMP). The authors present state-of-the-art techniques coupled with their own experience and technical input from this handbook s sponsoring organizations: Natural Resources Canada, Union Gas Limited, Enbridge Gas Distribution and CEATI End-Use Technologies Interest Group (BC Hydro, Manitoba Hydro, Hydro-Québec, the Pulp and Paper Research Institute of Canada and New York State Electric & Gas Corporation). BESS EIE/04-246/S

19 4.7 Australia In Australia the Government Energy Management (GEM) is targeted to public institutions as response to the National Greenhouse Strategy requirement for Governments to reduce greenhouse gas emissions from their own operations. Improving the energy efficiency of buildings is one important National Greenhouse Strategy measure. Goals under this Policy include a reduction in the total energy consumption of government buildings and the requirement that all agencies purchase electricity with at least 6% Green Power. On State level, different States tackle GEM in its own (but similar) way. As example, the New South Wales Department of Energy, Utilities and Sustainability is in the scope of Government Energy Management Policy (GEMP) of NSW responsible for general oversight of the policy, including policy implementation and review, in cooperation with the Department of Commerce. The Department is responsible for data collection from Government agencies and the Department also publicly reports on aggregate performance against targets. On the web pages several information materials are available, some of them targeted to SMEs: GEMP - Reducing Greenhouse Emissions from Government Operations Start-Up Kit Small Agency Model GEMP - Useful Links NSW Energy Data Gathering and Reporting (EDGAR) System Key GEMP Agencies Enquiry Contacts GEMP Annual Reports List of Energy Managers and Energy Coordinators A checklist on energy management is presented in Figure 5. BESS EIE/04-246/S

20 Figure 5: Six step approach to energy management in New South Wales A sample energy management policy statement of a governmental agency from Northern Territory ( is presented below.in order to increase its efficiency of energy use the agency will: 1. adopt best energy management practices, 2. aim to achieve our first Energy Targets of a... % reduction in annual energy expenditure and energy consumption (total or per person or per square meter) by... (compared with...(date)... figures), 3. regularly monitor energy use across sites and organisational units, 4. report quarterly on energy use to staff and at Management Board meetings 5. establish an Energy management organisation structure 6. identify a senior manager as Agency Energy Manager 7. identify an agency Energy Coordinator to assist the Agency Energy Manager 8. identify Divisional/Facility Energy Managers 9. identify an agency Energy Management Committee with agreed terms of reference BESS EIE/04-246/S

21 10. encourage Energy Managers of significant facilities to initiate Energy Management Committees and/or Energy Champions for their facilities 11. develop Energy Action Plans for significant facilities 12. allow divisions/facilities to retain savings in their energy expenditure whilst the department is allowed to retain savings a. divisions/facilities to reinvest... % of savings into energy management projects, b. divisions/facilities are encouraged to put aside a small percentage of savings in an incentive fund (eg. Christmas party funds or for charity or tree planting). Incentives are to be approved by the agency Energy Management Committee, 13. ensure that new appliances, equipment, vehicles, and building projects are energy efficient 14. wherever possible, provide energy efficient products and services to our clients. BESS EIE/04-246/S

22 5. ENVIRONMENTAL AND ENERGY SYSTEM RELATED ENERGY MANAGEMENT SYSTEMS 5.1 ISO The elements of ISO are organized around 5 steps (see Figure 6), each of which is briefly described below. Step 1 - Environmental policy A firm drafts a policy setting out its intentions in relation to the environment. The policy must contain commitments to continual improvement prevention of pollution complying with relevant environmental legislation and other relevant requirements. ISO defines continual improvement as the process of enhancing the environmental management system in order to achieve improvements in environmental performance in line with the organization s environmental policy. Step 2 - Planning The firm must then set itself objectives and targets relating to its 3 policy commitments and devise a plan to meet these objectives and targets. Step 3 - Implementation and operation Having devised its plan, the firm must then put in place the various elements necessary for its successful implementation and operation. Step 4- Checking and corrective action Having implemented its plan, the firm must then check to see it has been successful in meeting its objectives and targets. If any have not been met, then corrective action must be taken. The entire management system must be periodically audited to see that it meets the requirements of the standard. Step 5 - Management review Management must periodically review the system to ensure its continuing effectiveness and suitability. Changes are made to the system as and when necessary. As Figure 6 illustrates, ISO aims to bring about continual improvement over time. BESS EIE/04-246/S

23 Figure 6: The 5 steps of ISO Relationship to ISO 9000 ISO shares common management system features with the ISO 9000 series of quality system standards and firms can use their ISO 9000 management system as the basis for their environmental management system. The linkages with ISO 9000 are set out in ISO ISO self-declaration and certification ISO is a specification standard i.e. it consists of a set of requirements for establishing and maintaining an environmental management system. By complying with these requirements a firm can demonstrate to the outside world that it has an appropriate management system in place. Its compliance with the requirements of ISO is checked by an independent third party. The accreditation system for environmental management systems is set out in Figure 7. BESS EIE/04-246/S

24 Figure 7: The accreditation system for environmental management systems Are ISO and relevant to SMEs? The answer to this question is yes. ISO states that it has been written to be applicable to all types and sizes of organizations and to accommodate diverse geographical, cultural and social conditions. ISO also states that the level of detail and complexity of the environmental management system...and the resources devoted to it will be dependent on the size of an organization and the nature of its activities. This may be the case in particular for SMEs. In other words an environmental management system should be tailored to the needs of the particular firm establishing the system. Environmental management systems should not be complex and unwieldy but should be designed so that they are simple and user-friendly. ISO states that it can be used by organizations of any size. Nonetheless, the importance of SMEs is being increasingly recognized by governments and business. This guideline acknowledges and accommodates the needs of SMEs. 5.2 IPPC directive Integrated Pollution Prevention and Control (IPPC) is a regulatory system that employs an integrated approach to control the environmental impacts of certain industrial activities. It involves determining the appropriate controls for industry to protect the environment through a single permitting process. To gain a Permit, Operators will have to show that they have systematically developed proposals to apply the best available techniques (BAT), described in BREFs (see Table 1) and meet certain other requirements, taking account of relevant local factors. The Regulators intend to implement IPPC to: protect the environment as a whole promote the use of clean technology to minimise waste at source BESS EIE/04-246/S

25 encourage innovation, by leaving significant responsibility for developing satisfactory solutions to environmental issues with industrial Operators provide a one-stop shop for administering Applications for Permits to operate. Once a Permit has been issued, other parts of IPPC come into play. These include compliance monitoring, periodic Permit reviews, variation of Permit conditions and transfers of Permits between Operators. IPPC also provides for the restoration of industrial sites when the permitted activities cease to operate. Key issues of the guidance are summarised below. 1. All installations under the scope of IPPC shall meet a set of basic energy requirements for energy efficiency, which include: provision of information on energy consumed or generated by the activities within the permit and the associated direct and indirect carbon dioxide emissions energy management provisions a description of the proposed measures for the improvement of energy efficiency in operating and maintenance procedures, control of excessive heating and cooling losses and building services provision of an energy efficiency plan that identifies energy efficiency techniques that are applicable to the operation of the activities. 2. All installations under the scope of IPPC must also meet additional energy efficiency requirements either: Direct Participant Agreement in the Emissions Trading Scheme or through compliance with further permit-specific requirements as determined with the regulator. 3. Many energy efficiency techniques result in a net cost-saving over the life of the technique. The Regulators consider such techniques to be Best Available Techniques (BAT). BESS EIE/04-246/S

26 Table 1: Summary of Energy Efficiency Aspects in the BREFs BESS EIE/04-246/S