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Energy Management
System Implementation
in Industry
Introduction
Today industry accounts for more than a third of global energy consumption and greenhouse
gas emissions and will continue to drive the growth of global energy demand over the coming
decades, particularly in developing and emerging economies. In order to decouple industrial
development and economic growth from energy consumption and the associated environmental
and climate change impacts, industry needs to substantially increase its energy efficiency and
progressively switch from carbon-intensive to low-carbon and low-emission technologies.
While the challenge remains daunting, there are policies, technologies, best practices and other
instruments available to industry, policymakers and the international community to support and
undertake actions. The immediate need is to accelerate the global dissemination and imple-
mentation of existing best available technologies and practices. It is estimated that by doing
so, industry could cut its global energy consumption by over 25 per cent.
By scaling up the deployment of industrial energy management systems (EnMSs) and standards,
UNIDO helps countries at all levels of development to improve the overall efficiency of their
manufacturing sectors, while also achieving cost-effective reduction of greenhouse gas (GHG)
emissions. Industry experience around the world has shown that companies can save around
10-20 per cent of their annual energy consumption and reduce their costs through better energy
management, often by just making operational changes with minimal or no investment.
1
The need for energy management systems in industry
Time and again, energy efficien- Energy management systems (EnMSs) EnMSs seek to apply to energy
cy has been demonstrated to have emerged over the last two decades use and consumption the
be cost-effective while having a same culture of continual
as a proven best practice methodology
positive effect on productivity improvement that has been
in the industrial sector. Despite to ensure proactive and effective energy successfully used by industrial
this, energy efficiency improve- management. EnMSs offer a structured firms to improve quality, envi-
ments with no-cost or very ronment and safety practices.
and systematic approach for integrating
favourable payback periods
An evaluation of the impact of
often do not get implemented. energy efficiency into an enterprise man-
national industrial energy effi-
Even in cases where projects agement culture and daily practices, ciency programmes based on
are implemented, results are
through the provision of: the adoption and implementa-
often not sustained due to a
tion of EnMS standards in
lack of supportive operational A framework for understanding Denmark, Ireland, the Nether
and maintenance practices.
energy use and consumption. lands and Sweden showed that
Unfortunately, energy efficiency
the annual energy performance
is still widely viewed as a luxury Action plans to continually improve improvement rate of industrial
rather than a strategic invest-
energy performance, including enterprises that implemented
ment in future profitability.
EnMSs was more than double
energy systems and production
The evidence from three dec- that of enterprises without
ades of national and interna- processes. EnMSs. Moreover, experiences
tional experience with industrial in Europe and the United
Metrics to track and quantify
energy efficiency programmes States, as well as early pilot
shows that energy efficiency in energy performance against a implementation of ISO 50001
industry depends more on how baseline of energy consumption. showed that in companies that
energy is managed than on were totally new to energy
the simple installation of new Data and documentation to sustain management, average energy
technologies. and demonstrate energy performance gains in the first
one to two years ranged
performance improvements
between 10and 20percent of
over time. baseline consumption.
2
ISO 50001:2011 Energy management systems Requirements with
guidance for use
Taking stock of the good results achieved through national EnMS ISO 50001:2011 offers a framework for
standards in various countries, UNIDO started to promote the organizations to:
development of an international EnMS standard in 2006. In
UNIDOs view, an internationally recognized standard would be Establish an energy policy;
particularly helpful to developing countries and economies in tran-
sition that still lack policy frameworks and mechanisms to promote Allocate resources and create
and achieve improved energy efficiency in the industrial sector. teams to effectively implement an
UNIDO initiated the process that subsequently led to the publica- energy management system;
tion on 15 June 2011 of the international standard ISO50001:2011,
Energy management systems Requirements with guidance Conduct energy reviews;
for use.
Identify opportunities for improving
energy performance;
Figure I. EnMS model for ISO 50001
Establish baselines and energy
Continual improvement
Energy policy performance indicators for tracking
progress;
Management
Energy planning
review Set energy performance
improvement targets; and
Implementation
and operation
Implement action plans to achieve
those targets.
The UNIDO programme on EnMS implementation in industry combines capacity-building and pilot implemen-
tation. It builds understanding, expertise and skills of consultants and enterprises for implementing EnMSs
in line with ISO 50001 and provides expert advisory services needed to ensure implementation. The UNIDO
EnMS programme comprises three elements: an awareness seminar, user training and expert training.
4
Energy management system user training
The objective of this training is to provide enterprise staff with the knowledge, understanding and tools
needed to initiate the development and implementation of an EnMS in line with ISO 50001.
Learning goals of the user training also lends itself as a thorough introduction to EnMS
implementation for policymakers, energy efficiency
Knowledge and skills that participants attain through professionals, management system consultants and
the user training include the following: other energy or management system practitioners.
A good understanding of the key elements of
an EnMS aligned with ISO 50001, including
policy, roles and responsibilities, energy plan- Content of the user training
ning, implementation and operation, perfor-
The user training is delivered through classroom
mance checking, and management review;
sessions over two days. It consists of PowerPoint
A good understanding of the benefits of presentations, exercises, discussions, interactive
EnMSs and ISO 50001; tools demonstration and a final workshop to apply
and test understanding. The content of the training
A good understanding of the resource require-
includes:
ments for EnMS implementation;
Overview of an energy management system
The ability to put together a high-level project
management plan (time, resources, etc.) to Project management EnMS implementation
implement an EnMS within their organization; Management commitment
and
Energy policy
The ability to initiate the development and
Developing energy information and plans
implementation of an EnMS.
Energy metrics
Day-to-day operations
Target participants of the user training
Checking
The user training is primarily targeted to enterprises
Management review
energy managers, engineers and other personnel
responsible for energy management. The training Workshop on EnMS implementation
5
Energy management system expert training
The objective of the UNIDO EnMS expert training programme is to create a cadre of national energy efficiency
experts equipped with the knowledge, skills and tools needed to support the implementation of energy
management systems aligned with ISO 50001. By working with and providing expert assistance to enter-
prises, the expert training programme also leads to EnMS implementation in participating enterprises.
Learning goals of the expert training The ability and experience needed to audit an
EnMS, verifying and reporting on its energy
At the end of the expert training, national trainees performance.
possess the following set of knowledge, expertise
and skills: The ability to deliver seminars and training on
EnMSs and ISO 50001.
Knowledge of the strategic benefits of EnMS
implementation. Knowledge of legislation and regulations
relevant to the implementation of EnMSs in a
A strong understanding of all elements of an specific country.
EnMS that conforms to the ISO 50001
standard, as well as best practices and how Knowledge of financing options available for
to implement them. EnMS implementation and energy efficiency
(EE) projects in a specific country.
A sound understanding of energy performance
metrics and relevant best practices.
6
Structure and approach of the expert the supervision and coaching of international
experts to apply the knowledge, skills and tools pro-
training
vided in the classroom sessions on the job.
The expert training consists of three modules and
It is worth mentioning that all expert trainees are
an exam:
required to attend the user training first.
Module 1 EnMS planning and energy
In order to increase absorption, retention and use of
performance
the knowledge transferred to trainees while delivering
Module 2 EnMS implementation and immediate tangible results, the approach of the
operation UNIDO programme provides for the active involve-
Module 3 EnMS checking and management ment of partner enterprises in the expert training.
review Such partner enterprises commit to work with expert
Qualification exam trainees towards the implementation of an EnMS and
energy efficiency measures that meet set financial
The modules are delivered mainly through class- criteria. They may or may not have a representative
room sessions. Modules are separated by periods in the expert training classroom sessions. Figure III
of time ranging from three to six months, during below shows a schematic of the expert training
which trainees work with partner enterprises under approach; figure IV shows its structure.
7
Figure IV. Structure of the UNIDO EnMS expert training programme
8
3-6 months 3 days 2-3 months
Expert Module 3.
On-the-job On-the-job
training
Checking and review
training
Experts exam
Note: Note:
Regular webinars and Regular webinars and coach-
coaching sessions led by the ing sessions led by the inter-
international trainers will be national trainers will be held
held during this period. during this period.
9
Overview of the UNIDO global energy management system programme
As of January 2015, the UNIDO global EnMS pro- been assisted in the implementation of energy man-
gramme is active in 17 developing countries and agement systems and state-of-the-art energy efficiency
emerging economies. optimization projects and practices. The current global
EnMS portfolio is highlighted in figure V below, with
It is the flagship initiative of the broader UNIDO indication of ongoing discussions on expanding activi-
Industrial Energy Efficiency (IEE) programme, which ties to more countries in the period 2016-2017. It is
consists of around 35 technical cooperation projects worth mentioning that all UNIDO EnMS country projects
with a total portfolio budget of US$ 105 million and also include a policy development component wherein
committed co-financing from government partners, UNIDO supports national governments in strengthen-
industry and financing institutions of more than ing the institutional capacity for industrial energy effi-
US$ 660 million. UNIDO has provided in-depth train- ciency, policies and programmes. Accordingly, UNIDO
ing on EnMS implementation to more than 800 nation- provides technical assistance for establishing IEE
al energy efficiency consultants through its global frameworks, which in turn promote and accelerate the
EnMS programme. Moreover, 300 companies have adoption of EnMSs and ISO 50001 in industry.
Figure V. Overview of UNIDOs current global EnMS portfolio Active UNIDO EnMS programmes
Colombia Republic of
Ecuador Moldova
Egypt Russian Federation
India South Africa
Indonesia Thailand
Iran (Islamic The former Yugoslav
Republic of) Republic of
Malaysia Macedonia
Myanmar Turkey
Philippines Ukraine
Viet Nam
Planned activities
Armenia Kazakhstan
Azerbaijan South Africa
Belarus Tunisia
Chile United Arab
China Emirates
Georgia
10
Case Study 1. ArcelorMittal Saldanha Works Plant, South Africa
11
Case Study 2. S.A. Lactis, Moldova
S.A. Lactis is an open joint-stock company with approxi- These rapid improvements, achieved at no cost or low
mately 185 employees that processes milk and produces cost, were made possible through a number of energy
fresh dairy products under the companys own trade- management measures. For example, the optimization
mark, Lactis. It holds approximately 10 per cent of the of milk processing schedules and the installation of 11
Moldovan dairy market. In 2009, Lactis management second-hand meters enabled better tracking of signifi-
started to look into energy efficiency as a viable means cant energy uses against different consumption drivers,
to reduce production costs and the impact of increasing providing information to production managers on a daily
energy prices. The focus was on identifying low hanging basis and allowing unexpectedly high consumption pat-
fruits to achieve immediate energy and cost savings terns to be acted upon and rectified immediately.
with minimal investments. Enhancing the capacity of staff through training to iden-
tify and intervene on high levels of energy use led to a
number of proposals for improvement from employees,
S.A. Lactis achievements through the such as the shutting off of one boiler that was found to
implementation of an EnMS, 2011-2012 be unnecessary following the rescheduling of production
Total number of projects 11 and adjustment of water heating and cooling systems.
12
Case Study 3. Sidi Kerir Petrochemicals Company (SIDPEC), Egypt
SIDPEC joined the UNIDO EnMS Programme in Egypt at gross financial savings in the first year of EnMS imple-
the end of 2013, and assigned the following long-term mentation amounted to 8.3 million Egyptian Pounds.
objectives to be achieved by the end of 2018: reduce Upon certification to the ISO 50001 standard in December
electrical consumption by 10 per cent; reduce imported 2014, benefits accrued by SIDPEC through EnMS imple-
fuel gas consumption by 10 per cent; train 80 per cent mentation had gone beyond energy and cost savings.
of personnel on energy awareness. The firm and sus- Indeed, SIDEC staff reported increased cohesion as a
tained commitment of top management was critical for result of cross-functional team building for the EnMS,
the successful implementation of the EnMS, as was the which eliminated barriers between various production
clear definition of roles and responsibilities of the ener- plants. Production areas with a surplus of utilities were
gy team formulated in January 2014. The added value of identified and paired with other areas that had a deficit,
the UNIDO training was the understanding and skills thereby avoiding the production of more utilities. No-cost
attained by members of the energy team, which facili- and low-cost measures have proven to have substantial
tated awareness-raising and training of energy-relevant energy and cost savings potential in SIDPEC and to be
employees at all levels in the factory. The identification a strong tool for convincing all company staff of the ben-
of energy performance improvement opportunities by efits of having a systemic approach to energy manage-
various production teams was made possible as a result ment and continuous improvement. As a result, energy
of the inclusive approach, which allowed for the capi- efficiency has been integrated as part of SIDPECs com-
talization of varied experiences and expertise. All in all, pany culture and day-to-day operations.
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Case Study 4. Colusa Miliket Foodstuff, Viet Nam
Colusa Miliket Foodstuff is a joint-stock company pro- Following their participation in the UNIDO EnMS
ducing a range of processed foods out of wheat powder capacitybuilding programme, the company became
and rice grains in Ho Chi Minh City, VietNam. The com- the first business in Ho Chi Minh City to attain
pany places a strong focus on remaining competitive ISO50001 certification. When asked about the reasons
through the adherence to standards and systems for implementing an EnMS, the companys manage-
approaches to efficiency. Given the success of imple- ment responded, It is through cost reductions such
menting the quality management system standard as this that our future and the future of all our employ-
(ISO 9001:2008) and the environmental management ees remain secure. The strong commitment of high-
system standard (ISO 14001:2004) in 2012, the com- level management ensured the adoption of a solid
panys management felt the natural progression was to EnMS structure for continuous improvement of energy
implement the international energy management sys- performance at the Colusa Miliket company: energy
tem standard (ISO 50001:2011) and decided to join the savings in the first year of EnMS implementation
UNIDO EnMS Programme in Viet Nam. reached 12 per cent of 2011 baseline consumption
(normalized with production for 2012), and an addi-
tional 12 per cent improvement was achieved in the
Colusa Miliket Foodstuff achievements through first three months of 2013 alone.
the implementation of an EnMS in 2012
Total number of projects 5
Gross financial savings (US$) 46,805
Overall payback period (in years) <1
Energy savings compared to 2011 (%) 12
GHG emission reduction (tons CO2 ) 1,700
14
Case Study 5. INDIMA S.A., Ecuador
INDIMA S.A. is a company with 146 employees that pro- Sensors and timers were particularly useful in achieving
duces automotive parts in Quito, Ecuador. A supplier to energy savings in the plants soldering and lighting sys-
multinational automotive firms such as General Motors, tems with minimal investment. Moreover, the energy per-
Kia and Great Wall, INDIMA S.A. already had experience formance monitoring system created a mindset for
implementing standards and management systems energy efficiency within the plant, which encouraged
required by vehicle manufacturers when its management staff (particularly technical staff in continuous contact
decided to commit to a formalized industrial energy effi- with the production processes) to consider and look for
ciency initiative in 2012. This provided an opportunity for further methods of improvement, leading to more pre-
the extension of existing management structures to ventive maintenance of electric motors and mechanical
accommodate energy policies, procedures, sustainability drives, for example.
teams and reporting. It was therefore possible to integrate
an EnMS into existing processes in the plant in order to
meet customer demand more effectively and profitably.
INDIMA S.A. achievements through the
implementation of an EnMS in 2014
An EnMS was systematically planned at INDIMA S.A.,
Total number of projects 3+
beginning with the formation of teams and identification
of scopes and limits of the system that would define the Total investment (US$) 66,500
relevant energy policy for each sector. The support of sen- Gross financial savings (US$) 82,213
ior management was fundamental at that stage, as it Overall payback period (in years) 0.8
ensured the prioritization of energy efficiency in the deci-
Energy savings for 2014 (MWh) 394
sion-making structure and led to the creation of an energy
management team. The energy team conducted a base- GHG emission reduction (tons CO2 ) TBD
line survey to identify significant energy uses that would
become the focus of energy management activities. The The substantial energy savings achieved as a result of
survey found the soldering, lighting and computer sys- the EnMS were essential to maintaining the competitive-
tems to be the largest energy consumers in the plant, and ness of the plant, as energy prices increased consider-
established relevant energy performance indicators to ably during the time period of EnMS implementation
allow for their continuous monitoring. Daily monitoring of (by 7 US cents per kWh). The EnMS implementation pro-
the performance of significant energy uses enabled tected the plant from volatile energy prices at the time,
ongoing analysis and evaluation, thereby allowing staff to while achieving additional non-energy cost savings. This
promptly act to address or mitigate excessive consump- reaffirmed the top managements commitment to sup-
tion or other occurrences on a daily basisa critical ele- porting the ongoing EnMS as an integral part of INDIMA
ment of an effective and therefore sustainable EnMS. S.A.s day-to-day business operations.
15
UNIDO capacity-building and implementation programmes for energy
system optimization
The energy management system programme is only one of a series of capacity-building and implementation
programmes for energy efficiency in industry developed by UNIDO. In addition to the EnMS programme,
UNIDO offers training programmes for the following technical areas:
The UNIDO energy system optimization (ESO) programmes build technical capacity at three levels in each
of these technical areas through user, vendor and expert training.
The user training is targeted at facility engineers, operators and maintenance staff
ESO of enterprises, equipment vendors and service providers. It is designed to teach
User training how to assess systems, identify potential improvement opportunities and achieve
cost savings through proper operation and controls, system maintenance, and
appropriate uses of the provided energy service.
The vendor training is targeted at local system equipment vendors, suppliers and
ESO manufacturers. The purpose of this workshop is to introduce key market players to
Vendor training the system optimization approach and relevant service offerings.
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V.15-02743June 20151,000