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Energy Management System: An Overview 1 | P a g e

ENERGY MANAGEMENT SYSTEM An Overview

BNERI Working Paper Series

No: 003

December 2014


Company: Brunei National Energy Research Institute (BNERI) Science & Tehcnology Research Building UBD Tungku Link BE1410 Brunei Darussalam Authors: Majid Haji Sapar Senior Researcher Energy Efficiency & Conservation Department [email protected] Hilman Husnan Student Intern

Universiti Brunei Darussalam


List of Figures

List of Tables

Acronyms and Abbreviation

Abstract

1. Introduction

2. Energy Management System

Table of Content

3. Key Features of an Energy Management Standard

4. Overview of ISO 50001 Standard

4.1 Scope

4.2 Energy Management System Requirements

4.2.1 Implementation and Operation

4.2.2 Checking

4.2.3 Management Review

5. Checking and Internal Auditing

5.1 Inspection and correction

5.2 Internal Auditing

5.2.1 What is an Energy Audit?

5.2.2 Why it needs to be done?

5.3 Importance of Energy Measurement for Monitoring

6. Industrial Energy Monitoring

6.1 Data Collection

6.2 Energy Profile Analysis

6.2.1 Carbon Emission Analysis

6.2.2 Automated Energy Reasoning Analysis

6.3 Display

6.3.1 Display of Industrial Energy Consumption

6.4 Performance Measures

7. Analysis of Energy Management Standard

8. Comparison of Various National Energy Management Standards Elements

8.1 ISO 50001 Pros and Limitations

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9. Industrial Case Study in USA

9.1 Key lessons from Darigold’s experience with energy management system

9.2 Darigold’s commitment to energy and the environment

9.3 Adopting an energy management system, core principles and practices of

Darigold’s EnMs

10. Conclusion

Bibliography

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List of Figures Figure 1: Energy management system model for ISO 50001 12

Figure 2: The 4 phases of the PDCA circle 13

Figure 3: Energy planning process concept diagram

Figure 4: Energy – saving statistical form of Company A

Figure 5: Non-conformity report of a Company A

Figure 7: Power Consumption of a Company

Figure 8: Energy Structure

Figure 9: Structure example of how to save energy in a Company

Figure 10: Example of energy profile analysis across different temporal levels

Figure 11: Detecting abnormal energy consumption

Figure 12: Relation between the carbon emission and the electrical energy used in

manufacturing

Figure 13: Example of the automated energy reasoning system

Figure 14: Example of energy Display

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List of Tables

Table 1: Assessment of the matching level of national standards for energy management

Table 2: The summary of common and differences criteria of 4 EnMS standard

Table 3: Comparison of National and Regional Energy Management Standards

Table 4: Comparison of energy management standards

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List of Acronyms and Abbreviation EnMS Energy Management System

EnPls Energy Performance Indicator

PDCA Plan – Do – Check – Act

GHG Greenhouse gas ENPls Energy Performance Indicator

KPI Key Performance Indicator

RE Rules Engines

CEP Complex Event Processing

LCA Life Cycle Analysis DEC Display Energy Certificate

EPC Energy Performance Certificate HMI Human Machine Interface

SEC Specific Energy Consumption


Abstract

Over the past few years the need for an energy management system becomes crucial and

a number of countries have developed national standards for energy management. Their

structure is very similar and is based on the Deming cycle. The Deming Cycle is a set of

activities (Plan, Do, Check, and Act) designed to drive continuous improvement. The main

objective of the standards is to encourage companies to form the systems and processes for

energy management in order to reduce energy costs and greenhouse gas emissions. The

release of ISO 50001 has marked the worldwide introduction of international approach of

Energy Management System (EnMS) requirement. As one of the major ISO management

system standards, ISO 50001 has attracted a lot of attention among the industries and its

principles may even likely become part of supply chain requirement in future. An analysis of

their shared features and differences is discussed in this paper to provide a comparative view

of energy management standards. Also methods to collect, analyze, display and benchmark

the energy data are also discussed. In order to successfully implement EnMS, government

incentives and support plays an important role in driving the industries to implement EnMS.


1. Introduction

For an organization to achieve long-term business benefits from energy efficiency

investments, a technical change is not enough. Continuous improvement requires a strategic

energy management plan that has been created according to the organization’s unique

circumstances and sets clear energy efficiency targets and a plan for achieving them. The

energy management system (EnMS) requirements specifies, upon which an organization can

develop and implement energy policy, and establish objectives, targets, and action plans which

take into account legal requirements and information related to significant energy use. An

EnMS enables organization to achieve its policy commitments, take action as needed to

improve its energy performance and demonstrate the conformity of the system to the

requirements of the Standard. This paper will describe the purpose and scope of a typical energy

management standard, and importance of monitoring including its stages is highlighted.

Discussions regarding various EnMS standards around the globe are also presented in this

paper. Some of the advantages for an organization in applying an energy managements system

are cost reduction, environmental protection, sustainable management, and improvement of

public image.

2. Energy Management System

Over the past few years various countries have developed national standards for energy

management. The traits of the structure are very similar and are based on the Deming cycle.

The main objective of the standards is to encourage companies to form the systems and

process for energy management in order to reduce energy cost and greenhouse emission.

Some of the established energy management standards are AS 3595:1990 and AS 3596:1992

Australia energy management program, in Sweden SS627750:2003 Energy Management

Systems, SenterNovem in the Netherlands in 2004, American Standard ANSI/ MSE

2000:2008, UK PAS 99:2006, Korean Standard KSA 400:2007, China GB / T xxx-2000x

ICS 03.120.10, SS ISO 50001 in Singapore, and the European standard EN 16001:2009.

For each of the Deming Cycle the standards identify specific tasks. The lists of tasks for

the stages of the energy management system are:

A. Energy Planning:

1. Identification and implementation of legislative and other requirements related to the

nature of the use, the amount of energy consumption and energy efficiency.


2. Development of the method and an order of the energy analysis.

3. Determination of the energy baseline.

4. Establishing a list of energy efficiency indicators to monitor and measure energy

efficiency.

5. Identifying the goals, objectives and action plan for energy management

B. Introduction and operation:

1. Determining the need for personnel, requirements for their competence.

2. Development of documentation for energy management and provision of their safety.

3. Operational control in accordance with the objectives and tasks.

4. The exchange of information between the enterprise subdivisions.

5. Development of projects aimed at improving energy efficiency.

6. Setting rules for working with energy suppliers.

C. Control over energy efficiency:

1. Measurements and monitoring of energy efficiency.

2. Assessment of the energy management system conformity with legal and other

requirements.

3. An internal audit.

4. Identifying discrepancies for corrective measures.

5. Documenting the ongoing changes and generating reports.

D. Analysis of energy management system by top-management:

1. Analysis of accounting information on the energy management system

by top-management

2. The adoption of measures designed to correct the energy management system 3. Key Features of an Energy Management Standard.

The energy management system is best to be applied in both the strategic management of the

company and the performance of work related to the activity. The adaption of the standard must

be accompanied with strong commitment to continual improvement of energy efficiency.

A first step is to develop an energy policy, top management’s official statement of the

organization’s commitment to managing energy. The policy is typically developed through

collaboration between top management and a management representative and cross-

divisional/functional team, established by top management and authorized to implement the

policy as part of the energy management system.


The Plan-Do-Check-Act approach is essential in every energy management system. The

planning process includes: analysis of energy uses and current and past trends for energy

consumption, identification of significant energy uses, assessment and prioritization of the

opportunities for improvement. Also, this process encourages the organization to examine

their energy sources and to look for opportunities for increased reliance on renewable sources.

The resulting initial energy profile is used as a baseline against which improvements in energy

performance are measured. The energy performance indicator which is unique to the

organization is used to track the progress.

The effectiveness of the management system depends on measurement to gain an

understanding of current energy performance. The continual improvement of the system

provides a driver for the organization to improve data availability over time as the systems

matures.

Energy performance improvement targets and objectives are established for the organization,

which are met through the development and implementation of action plans. Implementation

relies on procedures, documentation, and operational controls, training, and communication.

The effectiveness of energy performance improvement efforts and the management system as

a whole are checked through internal audits and periodic management reviews, with corrective

actions taken as needed.

The principles of energy management are applied to all relevant activities of the organization,

including purchasing and design practices. All the personnel throughout the organization must

be involve and cooperate with strong commitment in order to increase the effectiveness of the

energy management system. They need to be aware of energy uses and performance

improvement objectives. Training must be provided by the organization in both skills and day-

to-day practices to improve energy performance.

4. Overview of ISO 50001 Standard

ISO 50001 is aimed to provide international framework for industrial, commercial, or

institutional facilities, or entire companies, to manage their energy, including procurement

and use. This standard is expected to achieve major, long-term increases in energy efficiency

(20% or more) in industrial, commercial, and institutional facilities and to


reduce greenhouse gas (GHG) emissions worldwide. It is developed by taking into account

nuances of different national standards for energy management. This standard applies to the

activities under the control of the organization, and application of the international standard

can be tailored to fit the specific requirements of the organization, including the complexity

of the system, degree of documentation, and resources.

The International Standard and other Energy Management System standard share similar

system adoption which is based on the Plan – Do – Check – Act (PDCA) continual

improvement model and incorporates energy management into everyday organizational

practices, as shown in Figure 1 and 2 for ISO 50001.

Figure 1: Energy management system model for ISO 50001.


Figure 2: The 4 phases of the PDCA circle Worldwide application of the International Standard contributes to more efficient use of

available energy sources, to enhanced competitiveness and to reducing greenhouse gas

emission and other related environmental impacts. ISO 50001 is applicable for all kind of

energy.

4.1 Scope

The International Standard specifies requirement for establishing, implementing, maintaining

and improving an energy management system, whose purpose is to enable an organization to

follow a systematic approach in achieving continual improvement of energy performance,

including energy efficiency, energy use and consumption.

4.2 Energy Management System requirements

The organization shall periodically review and evaluate its energy management system in

order to identify opportunities for improvement and their implementation. The scope and the

boundaries of its EnMS should be define and determine how it will meet the requirements of

the International Standard in order to achieve continual improvement of its energy performance

and of its EnMS.


The concept of energy performance includes energy use, energy efficiency and energy

consumption.

An organization management responsibility that includes the top management and

management representative are important factors in driving the organization towards the

desired goal to ensure delivery of energy performance improvements in accordance with its

energy policy.

Another factor is the energy planning (Figure 3) which shall be consistent with the energy

policy and shall lead to activities that continually improve energy performance. The past and

present energy use and consumption along with the relevant variables affecting energy use and

performance will be analyzed in order to identify areas of significant energy use and

consumption. This will be done to look for opportunities for improving energy performance.

The energy baseline should be established using the information in the initial energy review.

The organization shall identify Energy Performance Indicator (EnPls) appropriate for

monitoring and measuring energy performance where it will be reviewed and compared to

the energy baseline as appropriate. EnPls can be a simple parameter, a simple ratio or a

complex model for examples energy consumption per time, energy consumption per unit of

production and multi-variable models. EnPls can be updated when business activities or

baseline change affect the relevance of EnPl. Figure 3 shows the energy planning concept

diagram. Last but not least energy objectives, energy targets and energy management action

plans must be set and shall be consistent with the energy policy. Time frames shall be

established for achievement of the objectives and target.


Figure 3: Energy planning process concept diagram 4.2.1 Implementation and Operation

The organization shall use the action plans and other outputs resulting from the planning

process for implementation and operation.

4.2.2 Checking

Checking involves the monitoring, measurement and analysis of the key characteristics of its

operation that determine energy performance. This also involves internal audit of the EnMS

and the organization shall address actual and potential non conformities by making corrections

and by taking corrective action and prevention action.

4.2.3 Management Review

This should cover the scope of the energy management system, although not all elements of

the energy management system need to be reviewed at once and the review process may take


place over a period of time. Once the input has been reviewed by the management the

corresponding output of changes in energy policy, energy performance, EnPls and even the

objective of the organization can be changed for improvement.

5. Checking and Internal Auditing

5.1 Checking (Inspection and Correction)

“Check”, the third step of the PDCA cycle refers to inspection and correction of energy

management plans. It is a very important stage in the cycle whereby it scans for non-

conformities in the system to find any potential for improvement. It follows the following

processes:

A. Monitoring & Assessment

Monitor energy management results, as well as key performance indicators (KPI)

based on the company’s energy-efficiency benchmarks, using an energy assessment

form such as the one below.

Figure 4: Energy-saving Statistical Form of Company A

B. Making and Improvement Plan

Prepare an improvement plan based on monitoring and assessment results. The aim is

to:


- Correct non-conformities;

- Take preventive measures against non-conformities;

- Assign a person in charge of following up and ensuring that improvements are

implemented.

Figure 5: Non-conformity report of Company A (Corrective Actions Form)

5.2 Internal Auditing

5.2.1 What is an energy audit?

Conducting regular energy audits is actually a part of monitoring the progress of a company,

where auditors inspect, analyze and evaluate a company’s energy consumption, allows

energy managers to assess how much energy their company uses and to pinpoint

opportunities for potential energy and cost savings. An audit is only useful, however, if

energy managers can implement their auditors’ recommendations.

5.2.2 Why it needs to be done?

Electricity is the most commonly used form of energy. If the use of this is managed correctly

it can therefore help many companies cut their energy consumption and costs. Lighting

systems, electric motors and drive systems, and heating/cooling systems are the three most

commonly used energy consuming systems across all industries, whether large or small.

Thus, similar energy-savings strategies can be applied to any size business in these common

energy consuming systems as shown in figure 9.


Figure 7: Power Consumption of a Company

Before making a strategy to reduce electricity use, an energy manager must answer

three questions:

» How and where are the power outlets that consume energy and how much is consumed

at each outlet?

» How much should each power outlet consume?

» How can energy consumption be reduced?

To answer these questions, it is necessary to measure power consumption, and to

understand how and when power is consumed. For understanding, direct consumption is

energy consumed during manufacturing or a particular process. Common use consumption

is energy consumed during office hours. Auxiliary energy consumption, is additional

energy consumed apart from central production processes and includes standby power

generation, and other backup systems. (See illustration below, figure 8)


Figure 8: Energy Structure

Figure 9: Structure example of how to save energy in a company.


5.3 Importance of Energy Measurement for Monitoring.

Measurement can range from only utility meters for small organizations up to complete

monitoring and measurement systems connected to a software application capable of

consolidating data and delivering automatic analysis. It is up to the organization to determine

the means and methods of measurement.

Measuring energy data is a key component for implementing an energy management plan.

To be done effectively a manager needs to:

- Establish an energy data measurement system;

- Designate staff in charge of monitoring energy use;

- Ensure proper use of energy measuring instruments and ensure safety of meters; and

- Provide energy data in a complete and timely manner.

Designating staff members to implement energy measurement is important to creating an

effective system. Preparing a document that details ways the company measures energy is

essential.

This document includes information on monitoring data, as well as the staff members

responsible for monitoring energy supply and consumption. It also contains information on

the instruments used to monitor energy consumption, details on storage, disposal, purchase,

maintenance and calibration. It should also include a list of all equipment that measures

energy consumption, detailing the name, model, manufacturer, serial number and date of

calibration of the monitoring equipment.

Although measuring energy data only reflects "overall consumption" rather than energy

efficiency, it is still fundamental to evaluating energy efficiency and energy-saving

opportunities.

Companies should measure energy consumption by taking into account:

- Overall energy consumption.

- Energy consumption of power lines and departments

- Energy consumption of office and production equipment. 6. Industrial Energy Monitoring

Energy efficiency monitoring and benchmarking are important for energy management, as

they enable decision makers to identify improvement opportunities and to keep track of the

effects of their decisions on energy use. Monitoring and analysis of the energy consumption of

machines and support and manufacturing processes is the first step towards increasing energy

efficiency. Insufficient monitoring may result in companies not being aware of their potential

for profitable energy investments. Moreover, monitoring of energy consumption of the

enterprise supports the judgment as to whether anticipated energy savings could be achieved


or not. Monitoring also helps to identify the most energy intensive processes. In this section

all aspects of energy monitoring such as data collection, analysis, presentation and measures

of performance will be covered. This section also analyses existing techniques for data

collection, analysis, display, performance measures.

6.1 Data collection.

Collecting data with standard method is very important. One of the recent standards for data

exchange is MTConnectQR Standard (MTConnect, 2010) which was used to monitor energy

consumption. Energy consumption data can be gathered using statistical data, energy audits,

energy balance sheet, questionnaires. All big industry companies and energy providers are

collecting historical energy consumption for statistical data. Energy audit includes, survey

and analysis of energy flows for energy conservation in a building, process or system to

reduce the amount of energy input into the system without negatively affecting the output(s),

identifying the sources of energy use and their the interactions with weather, occupancy and

operating schedules. Data collection using energy balance sheets, where it shows the relevant

energy input and output and break down of energy used in various processes to identify the

“energy centers”, which may then be analyzed for energy saving potential.

Furthermore, the surrounding environment is playing important role in the energy flows of

companies.The amount of consumed energy is directly connected to the average day

temperature, length of daylight, carbon emission, etc. Resent research work (Herrmann and

Thiede, 2009; Jeswiet and Kara, 2008). Carbon emission signature and carbon footprint can

be used to measure or collect data carbon emission. Similarly, weather conditions data can be

obtained from weather forecast and statistical data.

6.2 Energy Profiles Analysis

Typically, Machines consist of several energy consuming components which generate a

specific energy profile when producing. Analysis of energy profiles from different temporal

production levels (figure 10) provides detailed information about energy consumption and

helps to identify problems and potentials for energy efficiency improvement.


Figure 10: Example of energy profile analysis across different temporal levels All major technical equipment with specific energy profiles can be combined in

cumulative load profiles for different production levels e.g., energy demand for a workshop,

a process chain, or whole plant. This allows companies to calculate energy expenses in near-

real-time regime. Here by energy costs are not only determined by consumption itself

(e.g., via price per kWh) but also by surcharges for peak loads (e.g., via demand rate) which

may occur due to unfavorable superposition of energy intensive processes. Moreover the

analysis of the energy profile with a different sample rate (or in a different temporal decision

level) allows management to choose a best energy usage strategy for a particular

manufacturing tool or a whole process (Vijayaraghavan and Dornfeld, 2010). On the other hand, Seem (2007) describes the use of a robust method of rule based on

statistical analysis to detect energy related events in buildings, using a whole building

analysis method. This process may lend itself to manufacturing where individual machine

data, or sub- metering are unavailable.


Figure 11: Detecting abnormal energy consumption The system works by grouping data by day, then the type of consumption phenomena (for

average and peak consumption). Daily profiles are then grouped by day type (e.g., weekdays

and weekends). This pre-processing of data provides a dataset based on normal performance,

from which events are detected as statistical outliers (e.g., a standard deviations from the

normal). Obviously, some parts of the data will behave more randomly than others, but

behavior is generally cyclic. As a result, the analysis techniques employed are tuned

depending on the mean and statistical data (SD) of individual phenomena, although in the

case study presented (figure 11), only two day types were needed to produce effective

results. 6.2.1 Carbon Emissions Analysis

Energy consumption is the primary reason for carbon emissions occurring during

manufacture or process. The manufacturing of a product is connected directly to the amount

of carbon emitted during this production. Thereby by analyzing carbon emission allows us

to analyze the impact of energy efficiency.


Figure 12: Relation between the carbon emission and the electrical energy used in

manufacturing Jeswiet and Kara (2008) propose a method that connects the electrical energy used in

manufacturing directly to the CO2 emissions (CE) that are created in using the electrical

energy. Proposed the carbon emissions signature in manufacturing provide a carbon

footprint described as a GHG (Green House Gases) label for each manufactured product

using electric energy. Figure 12 shows how energy sources, including fossil fuels where

carbon emission is an inevitable, converted into electric energy. 6.2.2 Automated Energy Reasoning Analysis

Some approaches for energy monitoring and analysis of manufacturing systems are

performed either as an accounting exercise, or as theoretical estimates of the required energy

consumption for the various parts of a manufacturing process. In some degree these

approaches are not accurate enough, especially in the complex industrial processes. These

approaches do not support analysis of the energy data at all temporal decision levels, such

as process control, micro planning, macro planning, production planning, enterprise asset

management. A software system for autonomous reasoning about energy consumption can

solve all these problems. Vijayaraghavan and Dornfeld (2010), however argue that the

software tool has to have the following capabilities: • Concurrent monitoring of energy use with process data (including all possible technical

parameters); • Standardized data sources (i.e., data standards);

• Scalable architecture for large data volumes;

• Modular architecture to support analysis across different manufacturing scales.


Vijayaraghavan and Dornfeld (2010) proposed a software-based approach, which allows

automated energy reasoning and supports decision making across the multiple temporal

levels shown in Figure 13. This software system is based on the complex event processing

(CEP) and rules engines (RE) techniques in order to automate monitoring and analysis of

energy consumption in manufacturing systems. These techniques are used to create higher

level abstract events and reason on them by pattern matching and identification. RE/CEP

systems are implemented using the Rate algorithm. The word “Event” is something that

occurred either at a point in time or over a range of time. In manufacturing systems, events

can be a numerical value (e.g., the electrical power consumption at a point in time) or can

be a type of annotation (e.g., the alarm state of the machine tool over an interval or failure

of the equipment).

Figure 13: Example of the automated energy reasoning system The MTConnect data standard (MTConnect, 2010) has been used in the software

architecture for data exchange. The standardized data streams from various sources in the

manufacturing system, which includes process equipment, ancillary equipment, and

embedded sensors etc., is converted into events and added to the event cloud. The rules

engine deliberate over the events in the event cloud and creates complex events at higher

levels of abstraction and push them into the event cloud. The “Timelines” module is used

to handle high frequency time series data, and the “Metrics” module is used to perform

mathematical operations on the time series data. The events created by these modules are

also populated into the event cloud, and reasoned by the rules engine. Resulting timeliness and metrics are then can be visualized in provided user interface and

exported to the further analysis and processing systems, such as life cycle analysis (LCA)

tools and environmental databases. This architecture is depicted on Figure 13. It provides

accurate characterization of process and equipment energy usage for different temporal

decision levels in manufacturing systems (see Fig. 10), which can be applied in life cycle

analysis or optimization of manufacturing processes.


6.3 Display

In recent years, energy management has grown in importance and with it has grown a

family of software tools to monitor, analyze and display energy use. Legislation has driven

the collection and publication of data on energy use in buildings - an example being the

obligation to show a ‘display energy certificate’ (DEC) or ‘energy performance certificate’

(EPC) for public and commercial buildings. This has led to the development of modern

building management systems and energy management systems that are capable of

displaying information related to building energy performance. Within industry, this

functionality may be provided by SCADA or MES software.

6.3.1 Display of Industrial Energy Consumption

There are several examples in the literature of the display of energy information to

improve energy efficiency. Energy is monitored and displayed at different levels from the

sub-process to the industrial organization and for different purposes. Display of energy

via a human-machine interface (HMI) is intended to facilitate understanding of

consumption patterns and emergency action if this is needed. Because poor understanding

of energy consumption may lead to excessive power consumption and have financial and/or

machine health implications, it is important that the display be clear and unambiguous. For

this reason, colour graphics are often used in such displays and attention is paid to

ergonomic features of the display so that users are presented with familiar graphical devices

such as:

• XY plots of time series data to communicate historic consumption;

• A needle on a dial to communicate instantaneous values, and

• A series of digital readouts to display accurate unambiguous data.

The ‘needle on dial’ device communicates information about normal and abnormal

conditions as well as rate information so that the user can determine, for example, whether

the instantaneous consumption is changing rapidly, slowly or not at all. All the above

features are present in the visual interface described by Avram and Xirouchakis (2011),

which was created using LabVIEW and is shown in Figure 14. An important feature of the

display shown in Figure 14 is the use of two traces superimposed on the same time axis to

allow a comparison of two energy profiles


Figure 14: Example of energy display graphical interface 6.4 Perf or ma nce measures

In general, energy performance measures are designed to measure how much benefit is

derived from a given amount of energy consumed. According to the First Law of

Thermodynamics; energy is never actually consumed, it is merely transformed.

Performance measures by benchmarking enables managers to identify whether better energy

performance could be expected, and by how much. It allows them to set reasonable goals,

monitor performance against them and decide when the goals themselves should be adjusted

(Boyd, 2005). Benchmarks need to be defined for comparisons between:

• A given process to identify trends and off-standard performance, i.e. energy baseline.

• Similar processes at plant level

• Different processes that have the same purpose (e.g. new machining technologies)

• Plants in an organization or industry sector in the same country

• Industry sectors in different countries

If a benchmark of good practice is available, it is possible to define a useful measure of energy

saving potential as a simple ratio in terms of specific energy consumption as shown below

(APERC, 2000):


The analysis of information provided by a wide range of performance indicators related to

the energy efficiency, such as

• Idle equipment energy consumption;

• Total energy consumption (i.e., electricity, oil, district heating);

• Energy bill (whole or specific energy carrier);

• DI Water consumption rate (consumption per hour) for whole fab or specific parts of the

water plant or separate streams;

• cost per cost center (e.g., waste water treatment). Other KPIs (key performance indicator)

includes

Other KPIs (key performance indicator) includes:

time:

• Cycle time;

• Man hour/unit;

quality:

• fault frequency, fault frequency, first time through (FTT), warranty cost for automotive

manufactures;

• yield

reliability:

• availability;

• unplanned stops;

• mean time between failures;

• production time of ion;

cost:

• euro for a selected cost block;

• euro per equivalent manufactured level

• cost/unit


7. Analysis of Energy Management Standard

Table 1 shows the stage of forming the energy management system and their relevant tasks.

For each of the tasks listed in the table, the level of matching (cross-correlation) is set. If the

factor is found in most standards, then it has high cross-correlation. The low correlation resides

in the task, if it is met in one or maximum two standards.

From the table it can be concluded that the majority of matches in the list of tasks of national

standards from energy management is specific for the last two stages. The first two stages are

characterized by a number of characters with low match. This can be explained by the fact

that the stages of planning and implementation are more creative and can be interpreted in

different ways depending on the goals and objectives. Stages of testing and analysis are more

standard and a list of tasks realized at these stages, even in the event of their selection for the

other comparable standard, such as the environmental management system quality

management system and other management system will differ only slightly.

Table 1: Assessment of the matching level of national standards for energy management


Table 2: The summary of common and differences criteria of 4 EnMS standard.


From table 2, important common and differences in criteria taken from a report article

(ICEBEA, 2013) are described below:

A. For the management responsibility criteria, every system has similar procedure in which the organization has to appoint the energy committee by management. On the other hand in Thai EMS, it has regulations that clearly specify qualification, for example holding a degree in Science or Engineering, with the evidence of working in energy conservation verified by the owner of the designated factory or building, or having taken a training course in energy conservation or training course with similar objectives organized or approved by the director. These qualifications will guarantee that organization has an energy team lead with knowledge and experience to manage energy efficiency.

B. For the energy policy, the outstanding point in ISO 50001 is a procurement of energy

services, products, equipment and energy process. It is because advance technology helps to reduce the cost of energy consumption in long term, and it can lessen gas emission of carbon dioxide into the atmosphere.

C. For the energy planning criteria, ISO 50001 has a prominent point which is an energy review. This process will correct and record every kind of energy consumption in organization such as electricity energy, heat and solar energy into database. The recorded energy data will be used to compare with the result of improves energy management. Conversely, ANSI/MSE 2000:2008 emphasize on external information that effect to cost of energy such as tariff, tax incentives, economics, and climate data. For example, summer season will influence electronic industry directly, because in shop floor has to maintain temperature and machines must be operated 24 hours a day and also the environmental process line must be controlled for preventing excessive moisture or static electricity. Therefore this period will affect the factory’s expenditure highly. For the cost evaluation, Thailand energy management system and EN16001:2009 16001:2009 16001:2009 use the specific energy consumption (SEC) method in order to calculate energy consumption per unit (MJ/unit).

D. For the implementation and operation criteria, ISO 50001 focus on the design of

facilities, tools, machines and process work flows including the procurement of energy services, products, equipment and energy. It is because saving energy consumption in long term period. Alternatively, Thailand EMS emphasize on payback period and expectation result of each energy projects. For ANSI/MSE 2000:2008 has an explicit point which consider of financial, energy resource, environment impact and safety.

E. For the checking criteria, ISO 50001, EN 16001:2009 and ANSI/MSE 2000:2008

have a quick response of corrective and preventive action when encounter a problem during action process. But, Thailand EMS just has internal audit once per year, per se, this consumes too much time.


8. Comparison of various National Energy Management Standards Elements.

As previously mentioned, a number of national energy management standards already existed. Table 3 and 4 compares the element of existing energy management standards or specification in seven countries or regions, plus three countries for which standards are under development (CEN (EU), China and Singapore) and Japan, which requires energy management by legislation. These standard has been developed to be entirely compatible with the ISO quality management program (ISO 9001:2008) and environmental management program (ISO 14001:2004).

While the existing energy management standards and specifications have many features in common, the have different variations in language, content and approach. The continued proliferation of national and regional energy management activities in a market that is increasingly global in scope creates the need for an international approach. The international approach of ISO now identifies energy management as one of its top five priorities based on its enormous potential to save energy, increase profitability, and reduce greenhouse gas (GHG) emissions worldwide. In some cases, there are few add on requirement to their existing national standard. Singapore for example has a few add on requirement such as the requirement for competence, consistency and impartiality in the auditing and certification of ISO 50001 (EnMS) for bodies providing these services and requirement that establishes general principles and guidelines for the process of Measurement and Verification (M&V) of energy performance of an organization or its components.


Table 3: Comparison of National and Regional Energy Management Standards

Participating Countries

Man

agem

ent C

omm

itmen

t Req

uire

d

Deve

lop

Ener

gy m

anag

emen

t pla

n

Esta

blish

ene

rgy

use

base

line

Man

agem

ent A

ppoi

nted

Ene

rgy

Repr

esen

tativ

e

Esta

blish

Cro

ss a

nd D

ivisi

onal

Im

plem

enta

tion

Team

Emph

asis

on C

ontin

uous

Im

prov

emen

t

Docu

men

t Ene

rgy

Savi

ngs

Esta

blish

Per

form

ance

Indi

cato

rs &

En

ergy

Sav

ing

Targ

ets

Docu

men

t & T

rain

Em

ploy

ees o

n Pr

oced

ural

/ O

pera

tiona

l Cha

nges

Spec

ified

Inte

rval

or R

e-ev

alua

ting

Perfo

rman

ce T

arge

ts

Repo

rtin

g to

Pub

lic E

ntity

Req

uire

d (P

olicy

Out

side

Stan

dard

)

Ener

gy S

avin

gs E

xter

nally

Val

idat

ed o

r Ce

rtifi

ed (

Outs

ide

Stan

dard

)

Year

Initi

ally

Pub

lishe

d

Appr

ox. M

arke

t Pen

etra

tion

by

Indu

stria

l Ene

rgy

Use

Existing Denmark Yes Yes Yes Yes Implied Yes Yes Yes Yes Suggest

annual Yes Optional1 2001 60% 2

Ireland Yes Yes Yes Licensed Implied Yes Yes Yes Yes Industry sets own

Yes Optional1 2005 25%

Japan3 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Annually

Yes Yes 1979 90%

Korea Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Annually

optional Optional4 2007 N.A

Netherlands 5 Yes Yes Yes Yes Implied Yes Yes Yes Yes Yes Yes Optional1 2000 20-90% 6

Sweden Yes Yes Yes Yes Implied Yes Yes Yes Yes Yes1 Yes Optional1 2003 50% elect

Thailand Yes Yes Yes Yes Implied Yes Yes Yes Yes Industry sets own

Yes Eval. plan 2004 Not Known 7

United States Yes Yes Yes Yes Yes Yes Yes Yes Yes Annual recomm

No No8 2000 < 5% 8


Under Development

CEN(EU) Yes Yes Yes Yes Implied Yes Yes Yes Yes Industry sets own

National schemes

2009 (planned)

China Yes Yes Yes Yes Implied Yes Yes Yes Yes Industry sets own

Not available

2009 (planned)

Singapore Yes Yes Yes Yes Yes Yes Yes Yes Yes Industry sets own

Yes Optional 2011 Not Known

1. Certification is required for companies participating involuntary agreements (also specified interval in Sweden). In Denmark, Netherlands & Sweden linked to tax relief eligibility.

2. As of 2002, latest date for which data is available. 3. Japan has the Act Concerning the Rational Use of Energy, which includes a requirement for energy management. 4. Korea invites large companies that agree to share information to join a peer to peer networking scheme and receive technical assistance

and incentives. 5. Netherlands has an Energy Management System, not a standard peers, developed in 1988 and linked to Long Term Agreements (LTA) in 2000. 6. 800 companies representing 20% of energy use have LTAs and must use the Energy Management System. The 150 most energy

intensive companies, representing 70% of the energy use have a separate, more stringent, bench marking covenant and are typically ISO 14000 certified, but are not required to use the EM System.

7. Thailand has made the energy management standards mandatory for large companies, linked it to existing ISO-related program activities, coupled with tax relief program evaluation not yet available.

8. To date, the US government has encouraged energy management practices, but not use of the standard. A program was initiated in 2008 to address this which also includes validation; program evaluation results anticipated in 2011.

Note: National standards and specifications were used as source documents to develop this table.


Table 4: Comparison of energy management standards

Energy Management Standard

Purpose and Scope Planning Elements

Doing Elements

Checking Elements

Acting Elements

ISO 50001 ISO (2009)

NOTE: The standard is expected to be published as an International Standard in Q3 2011

It has following features: 1) based on Plan-Do-

Check- Act (PDCA); 2) establish an

international framework for industrial and commercial facilities, or other types of organizations to improve energy performance.

It allows to organisation: 1) optimise energy-

consumption assets; 2) create communication

on the management of energy resources;

3) implement new energy-efficient technologies;

4) reduce energy bills, greenhouse gases emission and other environmental impact;

5) Integrate your management systems.

x Energy data management

x EPIs specification

x Calibration

BS EN 16001:2009 BS (2009)

1) based on Plan-Do- Check-Act (PDCA);

2) European standard; 3) specifies requirements

for establishing, implementing, maintaining and improving an energy performance;

4) can be applied to all types of organisation at any geographical point irrespective to cultural and social conditions.

It allows organisations to: 1) reduce energy costs, 2) improve business

performance, 3) formalize energy policy

and objectives,

x Energy profile

x Energy baseline

x EPIs specification

x Purchasing x Design x Energy project implementation

x Calibration


4) integrate it with other companies management system standards.

ANSI/MSE 2000:2008 ANSI (2008)

It has the following features: 1) based on Plan-Do-

Check-Act (PDCA); 2) defines a framework for

utility resources entering the baseline or used within its boundaries;

3) describes elements required for a lasting program of continual improvement in organization energy management;

It allows companies to: 1) control resource

consumptions and energy bills;

2) reduce environmental impact;

3) improve energy performance;

4) improve operational efficiency;

5) implement effective energy projects;

6) integrate it with other companies management system standards.

+ EPIs → KPIs

xNoncon-forming

VDI 4602 Energy Management VDI (2007)

It has following features: 1) definition of energy

management in industry;

2) definition of energy management system;

3) methodologies and approaches for optimising energy consumption,

4) not implies Plan-Do-Check-Act (PDCA) model.

It allows companies to: 1) define the energy

management for

x Energy baseline

x Legal obligation and other requirements

+ Energy objectives,

targets and programmes → Energy portfolio

x Purchasing Competency , training and awareness Reporting

x Evaluation of legal and other requirements

x Calibration x Internal audit

+ Simulation + Forecasting + Risk

assessment and management


different fields of application;

2) provide requirements for an energy management system;

3) provision, distribution and utilization of energy under application of ecological and economic goals.

I.S. 393:2005 SEAI (2006)

It has the following features :

1) structured and based on

ISO 9001 and ISO 14001 energy management standards;

2) help organizations to integrate energy management into their business structures;

3) establish requirements for energy performance nor does it guarantee optimal energy outcomes.

It allows companies to: 1) save energy; 2) save costs; 3) improve energy and

business performance; 4) identify technical stages

and processes of energy management system;

5) analyse energy saving potential.

x Management commitment

x Energy policy

x Strategic planning

x Legal obligation and other requirements

x Purchasing x Evaluation of legal and other requirements

x Calibration x Internal audit x Control of

records


From the comparison it is clear that Standards ISO 50001, BS EN 16001, ANSI/MSE 2000,

and I.S. 393 are using Plan-Do-Check-Act (PDCA) continual improvement framework to

manage energy management. However, these standards only provide high-level

recommendations for companies (e.g., no EPI specification for different industry types).

Also the standards do not establish absolute requirements for energy performance beyond the

commitments in the energy policy of the organization and its obligation to comply with

relevant legislation. On the another hand, Standard VDI 4602, which does not implement

PDCA model, provide more detailed specifications for monitoring and checking elements,

but audit, evaluation and review procedures is not defined.


8.1 ISO 50001 Pros and Limitations

Pros:

• ISO’s reputation will encourage many industries to adopt ISO 50001 to gain

better public image.

• ISO 50001 standard provides detailed specifications on the elements of an

Energy Management System.

Limitations:

• “ISO 50001:2011 does not prescribe specific performance criteria with respect

to energy.”

- No requirements on energy efficiency improvements

- No requirements related to budget and investment

• “ISO 50001:2011 is applicable to any organization wishing to ensure that it

conforms to its stated energy policy and wishing to demonstrate this to others,

such conformity being confirmed either by means of self-evaluation and self-

declaration of conformity, or by certification of the energy management system

by an external organization.

9. Industrial Case Study in USA

Darigold is a dairy and food processing company based in the United States. By

implementing an energy management system across their business, they have been able to

make huge cost savings and reduce their greenhouse gas emissions. Energy management

system that they are using is similar to ISO 50001 Global Energy Standard but they don’t use

a standard or certification.

9.1 Key lessons from Darigold’s experience with energy management system

• Having an energy management system (EnMS) in place can lead to significant

operational cost savings. EnMS provides a platform for identifying and prioritizing

energy efficiency projects that can generate capital.

• Cooperation between utilities, government, industry and academia on the development

of new business models for energy efficiency delivery and implementation helps industry

achieve energy savings and continuously improve energy performance.

• Frequent employee engagement and training is critical to maintaining ongoing energy

savings.


• Catalysts for successful EnMS adoption within companies include:

1. support by executive leadership

2. establishing a tangible and achievable goal for energy reduction

3. dedicating personnel to lead and sustain the EnMS program (e.g. an energy champion,

energy manager or energy engineer)

4. receiving government subsidies for EnMS activities that achieve energy savings,

which could be progressively phased-out.

• EnMS must be aligned with a company’s business objectives and operational priorities. 9.2 Darigold’s commitment to energy and the environment

Energy management plays a central role in Darigold’s corporate business strategy not just

because of the associated operational efficiencies and energy cost savings, but also because

it is a mechanism to reduce GHG emissions, demonstrate leadership with key customers

(through corporate social responsibility), and recruit a workforce keenly interested in

sustainable business operations and energy innovation.

Darigold believes that, first and foremost, a successful energy management program must

focus on personnel. More than upgrading motors, boilers or electrical equipment, building

general employee awareness and making training available to them create a foundation for

the company to continuously improve its energy performance.

9.3 Adopting an energy management system (EnMS), Core principles and practices of

Darigold’s EnMS.

After ten years of implementing individual equipment upgrades to improve energy

efficiency, Darigold decided in 2011 to adopt an EnMS, which has greater potential for

savings and productivity gains. Beyond the energy benefits, using a systems approach has

enabled the company to meet its carbon reduction goals, meaning there are lower financial

risks of future penalties or taxes on emissions (energy use can account for up to 90 percent

of Darigold’s greenhouse gas emissions).

Darigold’s corporate energy management strategy has the following core practices and

principles :

1. Set an energy saving goal


An achievable goal is a strategic first step. Darigold made a voluntary pledge when it

joined the US Department of Energy’s (DOE)- initiative, Better Buildings, Better

Plants. The goal was to reduce energy intensity by 25 percent over 10 years. Using this

target, Darigold executives and employees put in place resources and strategies specific

to their business needs. Darigold has a dedicated energy engineer who works with each

of the production facilities to translate the 10-year goal into manageable annual goals –

around 2.5-3 percent reduction each year.

2. Collaborate with strategic partners

Darigold has collaborated with a number of organizations on its energy management

program, ensuring it has a wealth of expertise and support. For example, Darigold’s

pledge and partnership with DOE qualified it to receive additional resources – such as

a technical account representative who checks progress, reviews data points and assists

with regression modeling (the latter looks at variables like weather and production

volume)

3. Monitor, track, measure and report energy data

Darigold’s energy savings are tracked in British thermal units per pound (BTU/lb). This

key performance indicator is reported on daily, helping to monitor and measure

progress Darigold’s plants. This type of information also helps identify better systems

and achievable energy performance targets.

Darigold uses utility invoices to review total energy consumption, which are compared

to monthly production throughput. This is also compared to the daily energy reports to

ensure the data matches. Darigold is investigating sub-metering different energy systems

so that it can pinpoint the equipment or processes that are using the most energy and

make changes accordingly.

Darigold now also monitors, tracks and reports energy data. Most of the company’s

facilities have the ability to log onto their respective utilities and obtain daily energy

consumption data. Electrical data is typically provided every 15 minutes and gas is

monitored on an hourly basis. The utilities provide this data free of charge, but the

information is always from the previous day. Darigold is currently evaluating real-time


monitoring that provides instantaneous power consumption data. However, it requires

time and capital to install.

Easy access to utility company data allows Darigold to create daily energy intensity

reports that compare total energy usage to production throughput. These reports are

more precise so individual production facilities can make adjustments quickly, and they

can be used to compare production facilities against another, and against their annual

goals.

4. Establish an energy management team

Darigold is in the process of incorporating strategic energy management into the

company culture. Its employees are both encouraged and empowered to deliver energy

savings strategies that can be easily transferred and replicated to other facilities. This is

orchestrated by Darigold’s Energy Management Team. The team, which builds upon

the ISO 50001 framework, manages the company-wide energy strategy, decisions about

Darigold’s facilities, and best practices. The team also acts as the steering committee

for the company’s energy efficiency initiatives. It comprises one representative from

each facility, plus key personnel with diverse skillsets from other parts of the company.

The team provides guidance, assesses energy-training requirements, establishes annual

goals and objectives, and conducts internal audits of the energy program. It also takes

the lead in corporate awareness and recognition programs. Each Darigold facility also

has a Plant Energy Team, whose main function is to investigate energy-saving

opportunities in respective facilities and ensure all plant employees are engaged in the

energy program. Employee awareness and commitment is very important and is a

continuous effort. (Productivity, 2012)


10. Conclusion

From the reviews and case study mentioned it is proven that the energy management

standard is a powerful tool, to adopt and implement desired energy efficiency and energy

use reduction.

The energy management system should be integrated into the overall development strategy of

the company development with strong commitment as this will resolve the problems of

strategic management, including strengthening the company’s market position and engaging in

new strategic economic areas, growth of the enterprises competitiveness, the use of new

energy sources, including the alternative sources of energy, the organization of new business

processes, as well as the restructuring of the company in the light of the energy management

systems.

Government support that includes incentives in implementing the standard is essential and

important aspect in promoting and encouraging the use of energy management system

standard among industries or companies.


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