Catalyzing market transformation for industrial energy efficiency and accelerate investments in best available practices and technologies UNIDO Energy Management System Capacity Building Program Summary Note Vienna, 26 July 2013
1. BACKGROUND 1.1. UNIDO Industrial Energy Efficiency Programme Improving energy efficiency in industry decreases costs and increase competitiveness. It is one of the most cost-effective measures to help supply-constrained developing and emerging countries meet their increasing energy demand and loosen the link between economic growth and environmental degradation, such as climate change. The final goal of the UNIDO Industrial Energy Efficiency (IEE) Programme is to effect sustained energy management and efficiency practices in industry of developing countries and emerging economies in order to reduce the environmental pressure of economic growth while increasing productivity, helping to generate economic growth, creates jobs and alleviates poverty. 1.2. Industry and energy management Time and again energy efficiency in industry has been demonstrated to be cost effective while having a positive effect on productivity. Despite this, energy efficiency improvements with very favorable payback periods often do not get implemented. When projects are implemented, it may often happen that results are not sustained due to lack of supportive operational and maintenance practices. Energy efficiency is still widely viewed as a luxury rather than a strategic investment in future profitability. Three decades of national and international experiences with industrial energy efficiency programs have shown that most energy efficiency in industry is achieved through changes in how energy is managed in an industrial facility, rather than through installation of new technologies. The goal of sustainable energy efficiency in industry requires that energy efficiency is integrated into daily management practices and systems for continual improvement. In order to achieve that, top management needs to be engaged in the management of energy on an ongoing basis. Energy management systems and standards provide proven tools and best-practice methodologies to integrate energy efficiency into industry corporate culture and daily management. Energy management systems provide the framework needed for the organizational and individual behavioural change that is required to effect sustainable and continually improving energy efficiency in industry; the behavioural change needed to go beyond the technology, equipment and stand-alone project approach to energy efficiency that is currently mainstreamed in industry as well as in the service market. Page 2 of 8
2. OUTLINE OF THE UNIDO ENERGY MANAGEMENT SYSTEM (ENMS) CAPACITY BUILDING PROGRAM What is an energy management system? In the UNIDO s definition, an energy management system is a methodology and a framework for the systematic management of energy use in an organization. An EnMS effects organizational, technical and behavioural actions in an economically-sound manner with the objective to improve energy performance. UNIDO s EnMS definition and methodology is in line with the international standard for energy management systems ISO 50001:2011 (now also EN ISO 50001:2011). The UNIDO EnMS Capacity Building Program comprises of three elements, shown in Fig. 1 ½ day Awareness Seminar USER Training Training Target group Enterprise top management Objective Build understanding of EnMS and EE potential benefits. Promote participation in the UNIDO project Target group Energy manager, chief engineer and other significant energy personnel of enterprises. Objective Provide skills and tools to develop and Fig. 1 Elements of UNIDO EnMS capacity building program Target group EE consultants, ESCOs, ISO 14001 experts and energy managers of selected enterprises. Objective Enable to provide technical assistance and training on EnMS development and implementation The ½ day Awareness seminar is designed as an introduction to and business case for energy management systems in industry and as a networking opportunity. The seminar is primarily targeted to enterprises top managers. The objective of this seminar is to raise awareness about the benefits of energy management systems benefits and resource requirements and to encourage top managers/ enterprises to participate in the UNIDO project by sending relevant staff to the USER training on energy management system and energy system optimization that will be offered by the UNIDO project as well as partnering in the training program. The 2 day USER training is targeted to person(s) designated by enterprises as responsible for energy management. The training will guide participants through the Plan-Do-Check-Act cycle as it applies to the ISO 50001 energy management standard. Instructions and tools will be given on how to establish an effective energy management system, including an energy policy, review of energy uses, identify what is significant and opportunities for improvement, setting objectives and targets, establishing an energy baseline and developing energy performance indicators. Page 3 of 8
The training is an intensive training delivered by leading international EnMS experts to national energy efficiency and management system professionals and industry energy managers. National professionals are trained through classroom, on-the-job practice and coaching by international EnMS experts and equipped with the expertise and the tools required for: Developing and implementing energy management systems in line with ISO 50001 Providing technical assistance to enterprises and coaching facility personnel in developing and implementing energy management systems in line with ISO 50001 Delivering the ½ day Awareness seminar Delivering the 2 day USER training 3. STRUCTURE OF THE UNIDO ENMS TRAINING PROGRAM The EnMS Training Program consists of three modules plus a qualification exam: Module 1 - Planning Module 2 - Implementation and Operation Module 3 - Checking and Management Review Qualification Exam Each module is delivered over a three-day period. Preliminary participation to the EnMS USER training is a mandatory requirement. Modules are separated by a period of time which can range from 4 to 6 months. During these intervals, under the supervision and coaching of the international EnMS experts, the trainees apply on-the-job the knowledge, skills and tools provided through the class-room sessions by working with selected partner enterprises. Periodic webinars and conference calls are organized during the program to monitor and review progress in the implementation of EnMS. As for the Qualification Exam, each trainee will be evaluated against the following criteria: 1) Competence and understanding demonstrated during classroom sessions 2) Performance and quality of progress and deliverables produced in working with partner enterprises 3) Scoring in the final qualification test Participants in the EnMS training program will consist of two groups: 1) representatives of enterprises partnering with the GEF-UNIDO project; 2) energy efficiency experts and service providers active in the Macedonian market and professionals from higher education institutions (all together hereinafter referred to as consultants ). The enterpriseconsultants ratio will be 1:2, i.e. two participating consultants for each enterprise. The total number of participants will be in the range of 25-30 people. Teams comprising of 1 enterprise and 2 national consultants will be formed during the inception phase of the training program. Page 4 of 8
Partner enterprises participating in the EnMS training program will: A. Have one staff 1 attending the full training program B. Have additional 1-3 staff attending the 2-Day USER training on EnMS implementation C. Receive international and national experts assistance to implement an EnMS in line with ISO 50001 and develop and implement EE improvements measures and investments D. Commit staff time to work with UNIDO international and national experts for the implementation of an effective EnMS and of a limited number of no-cost energy efficiency measures. E. Consider for investment and/or implementation those energy efficiency measures/projects that will meet company s financial criteria and resource availability. F. Have top management participating in 1 hour bi-monthly meetings with UNIDO s project management team to review progress in the implementation of the EnMS Fig. 2 in the next page provides a schematic representation of the structure of the whole EnMS training program, its schedule and a description of the intermediate results (deliverables and outputs) achieved by the partner enterprises during the program. Table 1 provides a basic summary of the content of the classroom trainings,. Table 1. Overview of classroom trainings content. USER Training Module 1 Module 2 Module 3 Overview of the whole energy management system (EnMS) Explanation of the EnMS implementation supporting tools Assignment of tasks to be carried out in preparation of Module 1 In-depth training on EnMS Planning (in line with ISO 50001) Further explanation and use of EnMS tools Intermediate written test on Module 1 Assignment of tasks for following EnMS implementation on-thejob period and scheduling of webinars Review of EnMS Planning work carried out In-depth training on EnMS Implementation & Operation (in line with ISO 50001) Further explanation and use of EnMS tools Intermediate written test on Module 2 Assignment of tasks for following EnMS implementation on-the-job period and scheduling of webinars Review of Implementat. & Operation work carried out In-depth training on EnMS Checking & Management Review (in line with ISO 50001) Further explanation and use of EnMS tools Intermediate written test on Module 2 Assignment of tasks for following EnMS implementation on-thejob period and scheduling of webinars 1 The proposed staff will have to be cleared by UNIDO to ensure that he/she has appropriate expertise, skills and authority. In general the UNIDO s recommendation to enterprises is to send to the training the person that will be the main driver and will retain the main responsibility for the implementation of the EnMS. Depending on the size of the company, this person usually holds one of the following positions: energy management representative or energy manager or technical director or chief engineer or environmental manager. Page 5 of 8
PE s trainee attends. PE s trainee attends. PE s trainee attends. PE s trainee attends. time 1-2 months 2 days 1.5-2 months 3 days 4-6 months 3 days 4-6 months 3 days 2-3 months Preparation USER Training PE team work to Module 1 PE team work to Module 2 PE team work to Module 3 PE team work to ½ day Exam EnMS selfassessment of PE Initial data collection Legend Draft Energy Policy Draft Roles & Responsibility matrix Further data collection PE team A Partner Enterprise (PE) team is formed by the PE s staff participating in the program plus 1-2 national consultants. Ongoing and periodic communication through webinars, emails and phone calls between the international trainers and the PE teams to review progress, discuss issues and provide guidance. Energy Policy Roles & Responsibility matrix Significant Energy Uses Baseline Energy Performance Indicators Opportunities list & action plans Energy & costs savings Performance improvements Staff trained on SEUs Operations & controls improved Procurement plan EE measures implemented Energy & costs savings Performance improvements Energy performance checked, verified and reported Energy performance reviewed by top management Decisions for next period based on internal audit Energy & costs savings Performance improvements PE trainee qualified as Energy Management System Expert EnMS implemented in PE Energy & costs savings Performance improvements Fig. 2 Structure and schedule of UNIDO EnMS training program Page 6 of 8
4. OUTLINE OF STAFF RESOURCES AND ACTIVITIES REQUIRED TO PARTNER ENTERPRISES FOR THE IMPLEMENTATION OF ENERGY MANAGEMENT SYSTEM The implementation of an energy management system is successful when it produces tangible and cost-effective energy savings and performance improvements for the organization. The evidence from UNIDO s and global experiences is that energy and cost savings achieved by organizations are proportional to the level of commitment put in place by their top management and the staff time allocated to the implementation of the EnMS. Resource requirements for the implementation of an effective EnMS can be grouped into 4 categories: 1. Management resources 2. Operational resources 3. Implementation cost for the EnMS itself 4. Capital investment in energy efficiency improvement projects Management Resources The senior management will need to give commitment to the program in the form of staff leadership through the change process. They will need to make decisions and offer ongoing support and encouragement. They will have to review progress based on short reports from the UNIDO international experts and discuss with their energy management personnel. Operational Resources Once the EnMS is up and running the main ongoing operational cost will be training staff to operate and maintain energy consuming equipment in an energy efficient manner. There will also be a small requirement to monitor progress and identify and implement actions to improve energy performance. Performance indicators will need to be developed, regularly reviewed and appropriate actions taken based on the indicators. Implementation cost for the EnMS itself The resources and expertise being provided by UNIDO under this program will be sufficient to design and provide guidance in the implementation of the EnMS. Operational staff will need to provide data, assist in putting the plant information and data into the documentation provided, participate in the UNIDO training, participate in meetings to develop the system, critically review the operational control of their energy using systems. Time needs to be allocated for EnMS staff to learn and change current practices. Page 7 of 8
Capital Investment While many energy performance opportunities identified during the implementation of the EnMS are and will be no-cost or low-cost measures (operation and control improvements, training, energy system optimization, etc.), opportunities for capital investment in energy saving technology will be also identified during the implementation of the EnMS. These investment costs will often be significantly reduced through the use of the energy efficient design methodology contained in the EnMS. For example, challenging the need for heat in each step of a process can often result in reduced need for steam and thus in reduced boiler and piping sizes and associated costs. Page 8 of 8