Management System Standards and Industrial Energy Efficiency in Argentina

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1 Management System Standards and Industrial Energy Efficiency in Argentina Presentation by Osvaldo D. PETRONI IRAM, Instituto Argentino de Normalización y Certificación São Paulo, Brazil August

2 Presentation Outline 1. Management System Standards (MSS) a. Past experience with national and international quality and environmental MSS Constraints faced and lessons learned b. Management System Standard for Energy (MSE) Opportunities and challenges 2. Industrial Energy Efficiency (IEE) a. Policy and legislative frameworks for Energy Efficiency and IEE b. Present and future programs to promote and support IEE c. Roles, challenges and opportunities for MSE 3. Conclusions 2

3 1. Management System Standards (MSS) a. Past experience with national and international quality and environmental MSS Constraints faced and lessons learned IRAM as National Standardization Body of Argentina and National Member Body of ISO and other relevant hemispheric and regional standardization bodies (COPANT and AMN) has had an active and growing participation in the development of international and regional MSSs. This reflects the high concern of all relevant interested sectors of Argentina for this MSSs. 3

4 1. Management System Standards (MSS) a. Past experience with national and international quality and environmental MSS Constraints faced and lessons learned IRAM involvement in the development of MSS ISO 9000 series: P member of ISO/TC 176 and its SCs Active participation in the revision of ISO series Participation in JCG Participation in the development of ISO Participation in the Spanish translations of ISO 9000 series 4

5 1. Management System Standards (MSS) a. Past experience with national and international quality and environmental MSS Constraints faced and lessons learned Participation in ISO meetings (I): ISO/TC 176 meeting, Kyoto, Japan, ISO/TC 176/STTG meeting, Costa Rica, 2000 ISO/TC 176/STTG meeting, Mexico, 2001 ISO/TC 176/SC 3 meeting, Holland, 2001 ISO/TC 176 meeting, Birmingham, United Kingdom, 2001 ISO/TC 176 Terminology group, Madrid, Spain,

6 1. Management System Standards (MSS) a. Past experience with national and international quality and environmental MSS Constraints faced and lessons learned Participation in ISO meetings (II): ISO/TC 176 meeting, Bucarest, 2003 ISO/TC 176/STTG meeting, República Dominicana, 2004 ISO/TC 176 meeting, Colombia, 2005 ISO/TC 176/STTG meeting, Cuba, 2005 ISO/TC 176 meeting, Panamá, 2005 ISO/TC 176 meeting, Korea, 2006 ISO/TC 176/STTG meeting 2006, Isla de Margarita, Venezuela ISO/TC 176/STTG meeting 2007, Buenos Aires, Argentina ISO/TC 176 meeting, Serbia, 2008 ISO/TC 176/STTG meeting 2008, Bolivia 6

7 1. Management System Standards (MSS) a. Past experience with national and international quality and environmental MSS Constraints faced and lessons learned IRAM began its participation as P member of ISO/TC 207 since 1996 (Fourth plenary) Active participation in all plenary meetings since that time with delegations conformed by national representatives from industry, government, NSB, consumers, NGOs and other stakeholders. 7

8 1. Management System Standards (MSS) a. Past experience with national and international quality and environmental MSS Constraints faced and lessons learned Active participation in several SCs: SC 1 (EMS) about the study of ISO and ISO 14004, first version 1996 and revision in Immediate national adoption and training courses. SC 1 active participation in the study of ISO about staged implementation of ISO with special annex for SMEs SC 4 about environmental performance evaluation and others SCs and WGs which develop support standards for EMS. 8

9 1. Management System Standards (MSS) a. Past experience with national and international quality and environmental MSS Constraints faced and lessons learned More facts related to environmental MSS: Argentina/IRAM hosted in 2004 the 12th plenary meeting of ISO/TC 207, held in Buenos Aires, with high attendance and also several SCs and WGs meetings of different issues. Recent participation in JTCG (Joint Technical Coordination Group) for the alignment of both MSS (Quality and environment) 9

10 MSS United Nations 1. Management 14001:1996 System Standards 83(MSS) 14001:2004 a. Past experience 9001:2000with national and international 5067 quality and BPA 11 environmental MSS Constraints faced and lessons learned BPM s BS 8800:1996 registration of MS in Argentina HACCP Certificates Issued IRAM 3800:1998 ISO 13485:1996 ISO 13485:2003 ISO 22000:2005 ISO E 13485: 2003 ISO TS 29001:2003 ISO/IEC 27001:2005 ISO/IEC 90003:2004 ISO/TS First Edition 1999 ISO/TS 16949:2002 OHSAS 18001: QS-9000:1998 S.A. 8000:

11 1. Management System Standards (MSS) a. Past experience with national and international quality and environmental MSS Constraints faced and lessons learned Current level of participation of stakeholders in mirror IRAM Technical Bodies Mirror technical bodies for ISO/TCs and its SCs and WGs All sectors are balance-represented in the mirror technical bodies Active participation in ISO level involves the consensus of the National mirror technical body Development of National Guides for Interpretation of ISO 9001 linked with National Needs 11

12 1. Management System Standards (MSS) a. Past experience with national and international quality and environmental MSS Constraints faced and lessons learned Current level of participation and commitment of IRAM at ISO TCs Participation in International Meetings Voting and Sending comments to documents ISO/TC 176/SC 3 (Support Technologies): Vice Chair ISO/TC 176/STTG Chair Vice Chair of TC 207/SC4 Environmental performance evaluation (Twinning USA/Argentine) Vice chair of TC207/TCG (Terminology Contact Group) Twinning Norway/- Argentine 12

13 1. Management System Standards (MSS) a. Past experience with national and international quality and environmental MSS Constraints faced and lessons learned Lessons learned (I): High importance of being P member in order to be able to send comments to be considered. High importance of attendance to the meetings in order to support our comments and positions jointly with other developing countries Importance of reaching consensus about special issues with other countries of the region previously to send comments or to attend the meetings 13

14 1. Management System Standards (MSS) a. Past experience with national and international quality and environmental MSS Constraints faced and lessons learned Lessons learned (II): Importance of setting up national mirror image committees as well as national mirror image SCs, WGs, Task forces, etc. Importance of caring on balance participation of different stakeholders to build up the national position to be sent to ISO/TCs and its depending groups. Importance of visibility, diffusion and training support at national level to disseminate the benefits of MSS implementation and to develop competent human resources for implementing and auditing MS. 14

15 1. Management System Standards (MSS) b. Management System Standard for Energy (MSE) Opportunities and challenges For developing countries like Argentina, where no national MSE has been developed yet, it is a great opportunity to accompany ISO/PC 242 work involving at national level all related stakeholders to facilitate the final adoption as national standard of the approved ISO MSE. The high acceptance and implementation of MSS (Q/E) will facilitate the penetration of MSE, specially if it is developed with the highest level of coordination with the existent ISO MSS (Q & E). OPPORTUNITIES 15

16 1. Management System Standards (MSS) b. Management System Standard for Energy (MSE) Opportunities and challenges Diverse energy saving initiatives currently under implementation at different levels in industries, utilities and other private and public organizations will have the chance to be integrated and coordinated under a global accepted management system approach. A wide implementation of future ISO MSE upstream and downstream the added value chain will certainly lead to a sensible reduction of GHG emissions. OPPORTUNITIES 16

17 1. Management System Standards (MSS) b. Management System Standard for Energy (MSE) Opportunities and challenges To attain a fast concur of different already developed national approaches to an unified globally accepted approach for an international MSE. Should MSE prompt to significant energy saving targets instead of leaving them completely free to the criterion of the organization? Considering that energy matters and GHG emissions are today of public interest, should MSE require reporting to Public Entity? Third party certification to provide confidence to the society? CHALLENGES 17

18 Industry Water United Nations 2. Industrial Energy Efficiency (IEE) a. Policy and legislative frameworks for Energy Efficiency & IEE ARGENTINA ENERGY SAVING POTENTIAL SECTOR Comercial & Public Public Ligthing Household (including ligthing & appliances) Transportation Agriculture (Irrigation Irrigation) Electricity 4 6 % (1) % (2) 30 % 30 % 30 % N / A 40 % 50 % Natural Gas + Fuel Oil % % 10 % (1) % (2) 30 % (gas oil) 10 % (gas oil) 18 N / A N / A (1) Without technological change (2) With technological change (3) In case where it is possible to replace fossil fuels with biomass N / A = not applicable Source: Secretaría de Energía ENERGETIC Wood & biomass (potential replacement) % (3) N / A N / A N / A N / A N / A N / A

19 2. Industrial Energy Efficiency (IEE) a. Policy and legislative frameworks for Energy Efficiency & IEE INDUSTRIAL ENERGY TOTAL CONSUMPTION IN ARGENTINA (2005) Biomass 9% Liquids Fuels 1% LPG 2% Others 9% Electricity 32% Natural Gas 47% Source: Secretariat of Energy Argentina 19

20 2. Industrial Energy Efficiency (IEE) a. Policy and legislative frameworks for Energy Efficiency & IEE INDUSTRIAL GDP AND ENERGY CONSUMPTION (1993 = 100) 2 1,8 1,6 1,4 1,2 1 0,8 0,6 0,4 0, Industrial GDP Total Energy Consumption Electricity 20

21 2. Industrial Energy Efficiency (IEE) a. Policy and legislative frameworks for Energy Efficiency & IEE INDUSTRIAL ENERGY INTENSITY (Industrial Energy Total Consumption / Industrial GDP) 0,3 0,25 Toe / 1000 $ 93 0,2 0,15 0,1 0, Years Total EI Natural Gas EI Electricity EI 21

22 2. Industrial Energy Efficiency (IEE) a. Policy and legislative frameworks for Energy Efficiency & IEE i) Lack of regulatory incentives to promote energy efficiency. ii) Lack of adequate price signals to energy consumers, especially among residential consumers. iii) iv) MAJOR BARRIERS FOR EE Lack of information among consumers on the efficiency of energy using equipment. Inadequate information and high transaction costs for enterprises to implement energy efficiency investments. v) Perceived high risk among banks to finance energy efficiency projects. vi) Infant ESCO industry 22

23 2. Industrial Energy Efficiency (IEE) a. Policy and legislative frameworks for Energy Efficiency & IEE PRODUCTIVITY AND ENERGY EFFICIENCY IN SMALL & MIDDLE SIZE ENTERPRISES IN ARGENTINA (PIEEP) Promote the implementation of measures to improve the efficient use of productive resources and associated competitiveness of Small and Middle Enterprises (SMEs), Result 1: Demonstration Units Develop local case studies to demonstrate practical experiences and benefits of the approach. Result 2: Strengthen the energy services supply Work with institutional and private consultancies to adjust and refine their energy services offer to suit the needs of the local market. Result 3: Private sector motivation - Preparing the demand side R 2 R 1 Built the goal R 3 R 4 Work with different sectors in order to introduce the concept and demonstrate the business opportunities associated with efficient resources management Result 4: Local policies Generate inputs for local authorities to develop policies to promote energy efficiency. 23

24 ENERGY EFFICIENCY IN ARGENTINA SMALL & MEDIUM SIZED COMPANIES SELECTED INDUSTRIAL SECTORS PORK SAUSAGE INDUSTRY. CDAD. DE BUENOS AIRES DAIRY INDUSTRY (CHESSE). PCIA. BUENOS AIRES DAIRY INDSUTRY (CHEESE). PCIA. ENTRE RIOS SUGAR FACTORIES. PCIA. DE TUCUMÁN LEMON INDUSTRIALIZATION. PCIA. DE TUCUMÁN INDUSTRIAL LOTS. PCIA BUENOS AIRES DAIRY PRODUCTS (CHEESE). PCIA. CÓRDOBA GRAIN DRYING. PCIA DE CÓRDOBA BS. AS. SECTOR RIEGO. PCIA. DE MENDOZA FRUIT CONSERVATION. PCIA. DE RIO NEGRO 11 SECTOR FERRO ALEACIONES. PCIA DE MENDOZA 12 WOOD INDUSTRIALIZATION. PCIA MISIONES Y CORRIENTES 24

25 ENERGY EFFICIENCY AND COMPANY PROFITS Avoidable Costs Cost of inefficiencies Production Costs Efficient Resources Management Profits Production Costs Profits Profit Increase What are the benefits for a company? Lower costs Greater production capacity Inprovements in product quality Minor plant shutdowns Fewer rejects Use of clean technologies 25

26 2. Industrial Energy Efficiency (IEE) a. Policy and legislative frameworks for Energy Efficiency & IEE LESSONS LEARNED FROM EE EXPERIENCES i) Promoting dissemination of information to support market mechanisms ii) Addressing financial barriers iii) Ensuring synergies with government policies iv) Challenges of utility energy efficiency program 26

27 2. Industrial Energy Efficiency (IEE) a. Policy and legislative frameworks for Energy Efficiency & IEE DECREE Nº 140/ PRONUREE DECRETO 140/2007 LINEAMIENTOS PRINCIPALES National Program for the Rational and Efficient Use of Energy i) Declares the rational and efficient use of energy a national interest. ii) Establishes energy efficiency as a permanent, medium to long term activity. iii) Defines energy efficiency as an essential component of energy policy and environmental stewardship. iv) Delegates responsibility for the implementation of PRONUREE to the Secretary of Energy. 27

28 2. Industrial Energy Efficiency (IEE) a. Policy and legislative frameworks for Energy Efficiency & IEE DECREE Nº 140/ PRONUREE INDUSTRY DECRETO 140/2007 LINEAMIENTOS PRINCIPALES E E STANDARD & LABELING COMERCIAL/PUBLIC E E REGULATION EDUCATION PUBLIC LIGHTING COGENERATION HOUSEHOLDS CLIMATE CHANGE TRANSPORTATION 28

29 2. Industrial Energy Efficiency (IEE) a. Policy and legislative frameworks for Energy Efficiency & IEE DECREE Nº 140/ PRONUREE INDUSTRIAL SECTOR ENERGY EFFICIENCY POLICY i) Voluntary Agreements with chambers of commerce ii) Financing Energy Efficiency Projects iii) Promoting the creation of ESCOs iv) Information dissemination activities 29

30 2. Industrial Energy Efficiency (IEE) b. Present and future programs to promote and support IEE i) The development objective of the project is to increase the efficiency in the use of energy by developing a sustainable and growing market for energy efficiency services and equipment in Argentina. ii) Project Total Cost 99.5 million US$ iii) iv) ENERGY EFFICIENCY PROJECT IN ARGENTINA SE WB - GEF GEF Grant, 15.5 million US$ Component 1: Development of the Argentina Energy Efficiency Fund (Total estimated cost US$2.18 million, of which US$1.80 million from GEF). This component includes two activities: (a) the development of a pipeline of energy efficiency projects, to be financed through a grant facility; and (b) the development of the Argentina Energy Efficiency Fund (AEEF). v) Component 3: Capacity building for ESCOs - Total estimated cost US$0.87 million, of which US$ 0.45 million from GEF. Information, training and dissemination programs -Total estimated cost US$1.55 million, of which US$ 1.05 million from GEF. 30

31 2. Industrial Energy Efficiency (IEE) c. What are the roles, challenges and opportunities for SMEs Here you are invited to think about and provide a concise description (2-3 slides) of ii) iii) iv) i) Whether and how an Energy Management Standard fits/ would fit within your country s EE/IEE programs; If and where there are/would be synergies and what these synergies are/ would be; If and where there are/ would be difficulties and what these difficulties are/ would be; Where partnerships with national and international stakeholders could be more beneficial and effective v) Other issues you think would be worth mentioning/ considering/ discussing 31

32 2. Industrial Energy Efficiency (IEE) c. What are the roles, challenges and opportunities for SMEs i) Energy Management Standard may help to provide confidence on energy performance measurement and continue improvement of energy saving targets in the frame of EE programs with financial support of government or international funds; ii) Possible synergies with public programs (e.g. road lighting, public buildings) and private programs (e.g. energy-intensive industries, utilities). iii) Difficulties for implementation at medium and small companies where still QMS have small penetration. 32

33 2. Industrial Energy Efficiency (IEE) c. What are the roles, challenges and opportunities for SMEs iv) Partnership between public sector (Secretariat of Energy) and National Standardization Body (IRAM) is very important, specially to coordinate programs, communicate benefits and provide training. Interaction with international programs, like GEF, and coordination at regional level (MERCOSUR) have a paramount and strategic importance. v) There are currently industrial companies in Argentina trying to implement some principles of energy management in their activities. It will be important to involve them from the very beginning into the development of ISO MSE, to make them feel protagonist of this work and to avoid at the end of the process reluctant attitudes. 33

34 3. Conclusions There is a circumspect interest to follow the work at ISO PC 242 both in private and public sectors of Argentina; Recent enforced Decree 140/2007 creates an environment favorable to energy efficiency initiatives, including energy management under an international standardized frame; Developing countries like Argentina have high energy saving potential, which should help the dissemination of energy management concepts; High level of integration/coordination with existent Q&E MSSs will be a key factor; Coordination among countries of the region, which are energy interdependent, is very important at the time to participate in energy international fora. 34

35 THANK YOU OBRIGADO GRACIAS For more information Osvaldo PETRONI For more information Enrique GONZALEZ 35

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