Energy Management System ISO 50001-2011 By: Eng. Fadi Al Shihabi Senior Manager Ernst & Young BEP, CEM,CRM
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Energy Futures Market Energy Efficiency Certificate Energy Subsidy Renewable Energy Certificate Power/Energy Exchange Page 3
Let us start by asking few questions How effectively are we managing our energy costs today? Page 4
Let us start by asking few questions Are we selecting our activities rationally, or by whim? Page 5
Let us start by asking few questions Are our economic criteria realistic, or wishful thinking? Page 6
Let us start by asking few questions Are we paying enough attention to risk? Page 7
Our agenda today Page 8
Energy Management System (EnMS) background WHAT IS ENERGY MANAGEMENT SYSTEM? 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. Global ISO 50001 Certifications 6765 77% 11985 2014 2015 Page 9
Key drivers for implementing an EnMS Business risks 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 EnMS solution Reduce energy bills through efficient energy performance 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 Save in energy and diversify energy sources 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 Infuse confidence among stakeholders Regulatory Competition 3 1 2 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 business 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 Comply with regulation and best practices Lead the market through energy efficiency and new technologies Page 10
Introduction to the ISO 50001 Energy Management System General requirement of ISO 50001 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 Uptake 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 Define Determine Establish EnMS Scope and Boundaries Requirements to achieve continual improvement of energy performance Implement Maintain EnMS Documentation 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 Page 11
EnMS as per ISO 50001 Allows a company to monitor, understand and manage its use of energy Continual improvement Energy policy Considers all systems, processes, procedures, personnel and equipment on an energy point of view Management review Energy planning Implementation and operation Identifies those having a significant impact on energy use, consumption and efficiency Sets targets through energy benchmarking, data analysis and energy performance improvement Internal audit Checking Monitoring, measurement and analysis Helps to develop strategies for efficient use of energy Corrective and preventive actions Page 12
10 steps to achieve ISO 50001 Steps Requirements Resources needed 1 Commit Commitment through Energy policy Top management s official statement on commitment to manage energy Top management 2 Communicate Communicate the policy to all stakeholders Establish a cross-divisional energy management team HR, Training and energy department 3 Collect Collect data covering current and planned energy use Track energy consumption and Identify key energy consuming equipments 4 Analyze Establish a energy consumption baseline with in the defined boundaries Identify energy saving opportunities and prioritize Energy team 5 Design Design energy objectives and targets Identify Energy Performance Indicators (EnPIs) to evaluate the performance 6 Develop & Benchmark Energy management plan along with activities, timelines and responsibilities Develop Operation Control Procedures and documentation 7 Implement Implement the energy management system based on the action plan Energy team and operation support 8 Monitor Prepare the monitoring and verification protocols Measure, manage and document the energy performance against targets 9 10 Control Report 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 Energy team, top management and operation support Page 13
Energy planning in line with ISO 50001 Initial Energy Review Energy Baseline Energy Performance Indicators (EnPIs) Action Plans Targets Objectives Determine energy performance for identification of energy saving opportunities Establish basis for energy performance comparison. Eg. Previous year average/design performance Set EnPIs, measure energy performance. Eg. Electricity consumed per unit of gasoline delivered Formulate action plans to achieve objectives and targets, legal/regulatio ns and other requirements Set targets consistent with the objectives Establish, implement and maintain documented energy objectives Page 14
Energy audit following ISO 50002 during the energy planning What is an Energy Audit? 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. Relationships of ASHRAE Energy Audit Levels Preliminary Energy-Use Analysis Benchmark against peers Low cost measures First Energy-Use Analysis 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. Walk-through audit Detailed energy audit Level 1 Level 2 Identify energy efficiency measures (EEMs) Detailed breakdowns and EEMs Applicability 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. Simulations and additional measurements Level 3 Techno Economic analysis Page 15
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 subsystems. The process flow diagram could be useful here Choose the material and energy balance envelope such that, the number of streams entering and leaving, is the smallest possible Consider a full batch as the reference in case of batch operations The measurement units may include, time factor or production linkages Always choose recycle streams (material and energy) within the envelope It is important to include start-up and cleaning operation consumptions (of material and energy resources (M&E). Calculate the gas volumes at standard conditions In case of shutdown losses, averaging over long periods may be necessary While preparing M&E balances, precision of analytical data, flow and energy measurements have to be accurate especially in case of short time span references For each stream, where applicable, indicate energy quality (pressure, temp, enthalpy, kcal/hr, kw, Amps, Volts etc.). Highlight losses and emissions (M&E) at part load operations if prevalent. Page 16
Typical Energy Balance approach and outcomes Page 17
The final outcome of the EnMS is to understand how your key energy assets perform over a period of time.. Analyse current state Establish parameters Generate Ideas and Freeze Specifications Executive Summary 1600 1400 1200 Contracted KVA load must be 10% more than the average demand of last six months Reduce contracted KVA load Low Payback prioritization for EEMs and ECMs 1000 Period 1 Period 2 Period 3 Check Condensers and Evaporators 1.4 1.2 Contract KVA Consumed KVA Specific Energy Consumption of TR generation cost should be with 10% of the industry benchmark Install Retrofits (VFD) and energy efficiency chiller 1 15 0.8 Cost of Chilled Water Company Industry Benchmark Summary Opportunities Measures 10 Opportunity No Detailed EEMs/ECMs Annual Energy Baseline Annual Estimate d Energy Energy Reductio n Annual Savings Implementatio n Cost Paybac k 5 Equipment, measures kwh or BTU kwh or BTU % $ $ Months 18 0 Actual Over Consumption Over Supply Ineffic ient Genertion Page 18
EnMS introduces the concept of Energy Performance Indicators for effective monitoring ENERGY MANAGEMENT SYSTEM EnPIs Monitoring COMPANY ADGASNAME Date Doc. No. Rev. No. Page No. 6/2/2014 1 1 Validity From 1-Jan-12 40909 To 31-Dec-14 42004 NO. LEVEL AREA EnPI DESCRIPTION UNIT EnPI 9 L3 MUB Fuel gas consumed per unit of power generated (MG-1/2GTG) GJ/MWh Enter Start Date Start Date Selected Period 1-Jan-12 20.5 Day 1 Month 1 End Date 31-Dec-13 20.0 Year 2012 No. of Days 730 Performance Baseline 2013 19 Target 2013 19 Selected Period Av. 18 19.5 19.0 18.5 18.0 Enter Period Month/s 24 Display Curves Baseline 19 19 19 18 18 18 18 18 18 17.5 17.0 14-Sep-11 23-Dec-11 1-Apr-12 10-Jul-12 18-Oct-12 26-Jan-13 6-May-13 14-Aug-13 22-Nov-13 2-Mar-14 Target Actual EnPI Monthly Av. Yearly Av. Baseline 2013 Target 2013 Selected Period Av. Baseline Target Actual EnPI Monthly Av. Yearly Av. Selected Period Av. Selected Period Av. Page 19
..based on the energy review, key energy efficiency projects are selected and prioritized ILLUSTRATIVE A Direct Financial Impact [Revenue Cost] Server racks HVAC Systems with heat regenerated desiccant Water cooled chillers Solar thermal for feed water heating Hard Disk drives by Green Power Technology Dynamic Smart Cooling Energy Efficient Printers, Copiers Phase Changing Materials PC Power Managers C D Size of bubble denotes the CAPEX required for the project High cost Abatement Potential Medium cost Abatement Potential Low cost Abatement Potential Glass with low e and low U value Green Processors B Ease of Implementation Page 20
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 1 Corporate EnMS Level 2 Operating ISO Procedures Level 3 Energy Management System Methods and Procedures Level 4 EnMS Standard Forms and Site Records Page 21
Getting the documentation for the ISO 50001 certification 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 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 Page 22
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