ISO 50001 /EN 16001

Energy Management System

and
Energy Key Performance Indicators

Framework , Requirements and

Implementation Methodology
Contents
 About Energy Management—General Understanding
 Role of Energy Manager
 About ISO 50001—Framework
 What actually Process Approach Means
 Requirements of ISO 50001
 Roadmap for Energy Management System
 Role of Energy Key Performance Indicators and how
to identify them.
 Role of Energy Management Information Systems
ISO 50001 /EN 16001

About Energy Management

 ENERGY MANAGEMENT
....INVOLVES A COMBINATION OF

- MANAGERIAL

&

- TECHNICAL/TECHNOLOGICAL
- SKILLS/KNOWLEDGE
 ENERGY IN AN ORGANISATION
IS CONSUMED ACROSS ALL FUNCTIONS IN AN
ORGANISATION

 THUS, TRADITIONALLY, NO ONE MANAGER HAS

HAD SOLE RESPONSIBILITY FOR THE
ORGANISATION’S TOTAL INVOLVEMENT WITH
ENERGY
BENEFITS AT
ORGANISATION PLANT LEVEL TOO.

- FOR EXAMPLE:

...... PROFIT!

...... SURVIVAL!
 Losing Energy
= Losing Profits
CURRENT SITUATION

Other costs Profits

ENERGY MANAGEMENT 78%
Energy 8%
Other costs Profits
78%
Energy
10%
PROFITS

14

12% 16%
12

10

6
in this example... reducing
4
ENERGY SAVINGS by 20%
2 may reduce costs by only 2% but
0 INCREASE PROFITS by 16.5%
 PLANT/ORGANISATION BENEFITS

- Improved ability to compete

- Improved ability to withstand future energy
cost increases or shortages
- Improved productivity
- Improved maintenance schedules
- Improved quality
- Environmental benefits
MAYBE THE MAIN
BENEFIT.....
Increased awareness that everybody has
a role to play in:
 saving energy
 reducing costs
 increasing competitiveness
 creating/saving jobs!
MANAGEMENT IS....
....... THE ACHIEVEMENT OF

RESULTS

THROUGH OTHER PEOPLE

 ENERGY MANAGEMENT
The objective of Energy Management is to achieve
and maintain optimum energy procurement and
utilisation, throughout the organisation:

- To minimise energy costs/waste...

- ...Without affecting production.
- To minimise environmental effects.
ENERGY MANAGEMENT INVOLVES ALL
FOUR MANAGERIAL FUNCTIONS

... PLANNING

... LEADING

... ORGANISING

... CONTROLLING
EXAMPLE: PLANNING
 Identifying the potential for energy cost savings:
- immediate/short term (no- &
low-cost)
- medium term
- long term.

 Drawing up plans/programmes/ strategies for realising

this potential (includes financial appraisal).
EXAMPLE: LEADING
 “Leading Upwards”: gaining the commitment
and backing of senior management and key
people

 “Leading Sideways/Downwards”: inspiring

and motivating colleagues at all levels to
become involved in ongoing energy
management
EXAMPLE: ORGANISING
 Marshalling the resources necessary to be
able to manage energy - eg:
- the necessary staff
- the necessary expertise
- the necessary technology
- the necessary equipment

 Putting in place the necessary structures and

lines of reporting
EXAMPLE: CONTROLLING
 Setting up the necessary ongoing
measurement/monitoring
Setting objectives/targets for energy use
and cost savings
Taking corrective action where necessary
 AN ORGANISATION....

...Without Energy Management ... With Energy Management

•Little energy awareness • Ongoing awareness of energy

•Little attention paid to energy • Continuous attention to energy

as a critical resource
•Energy responsibility spread across
organisation • Energy manager coordinates
actions

•Energy not included in investment

decisions • Energy a key investment factor

•Low awareness of energy saving/ • Ongoing monitoring of energy

management technologies
Why an Energy Management
System?
 Most energy efficiency achieved through changes
in how energy is managed rather than through
installation of new technologies;
 An energy management system provides a method
for integrating energy issues into existing
management systems for continual improvement
 The PDCA model of management systems has
proven successful for quality, health and safety, and
environment
Business Benefits
 Implementation of an energy management system
assists an organization to:
 Develop a baseline of energy use
 Actively managing energy use and costs
 Reduce emissions without negative effect on
operations
 Continue to improve energy use/output over time
 Document savings for internal and external use
(e.g. emission credits)
 How is a Process Measured?

Efficient Effective
No Waste Desired Results Achieved

Input
Activity Output

Right Resources: Desired Results:

Qualified People Quality Products
Right Facilities/Equipment Quality Services
Correct Materials Customer Satisfaction
Proven Methods
20
ISO 50001 /EN 16001

ISO 50001/EN 16001

Framework
 Aim of ISO 50001
The aim of the standard is to put practices in place that are
effective, and result in measurable energy savings. In
practice, an effective energy management system should
result in:

• organizations taking action to improve energy efficiency,

• a continual improvement year-by-year and an improved
performance in energy usage,
• more thorough analysis of areas with potential for energy
saving being carried out, if no action on energy efficiency is
being taken.
Objectives
OBJECTIVES
 High Energy Efficiency

 Cost Savings via Conservation

 Environmental Protection
 Scope of ISO 50001
 Standardization in the field of energy management, including:
 energy supply,
 procurement practices for energy using equipment and systems,
 energy use, and
 any use-related disposal issues.

 The standard will also address measurement of current

energy usage, and implementation of a measurement system
to document, report, and validate continuous improvement in
the area of energy management.
Scope of ISO 50001
 This standard specifies requirements for an
energy management system, which enables
an organization to take a systematic approach
to the continual improvement of energy
efficiency and energy performance. It does
not itself state specific performance criteria
with respect to energy.

 This standard applies to all organizations.

Components of an Energy
Management Standard(EnMS)
 A plan
 A cross-divisional management team
 Policies and procedures
 Projects
 Identification of key performance
indicators, and
 Periodic reporting
Energy Management Concept
 After the realization of energy investments
 Further conservation via better management
 Similar to ISO 9001 and ISO 14001
 Stand alone or integrated with other systems
 No need for external verification
 Management quality related to cost savings
 Better utilization of equipment and facilities
 Improvements in overall management
ISO 50001--Framework
Energy Management Steps
 Current Status Assessment – Audit
 Management Commitment – Policy
 Planning and Implementing
 Structure and Responsibilities
 Awareness and Training
 Monitoring and Targeting
 Management Review
 ENERGY POLICY

Management Commitment
 Appropriate to company’s profile
 Commitment to continual improvement
 Compliance with legislation and regulations
 Energy performance review framework
 Documented, implemented and maintained
 Communicated to entire organisation
 Vision of energy excellence
 PLAN – DO – CHECK – ACT

Planning and Implementing

 Setting of targets
 Planning of measures
 Determination of resources and time
 Staff – Investment – Time – Budget
 Implementation of measures
 Checking and correcting
 Reviewing results
 Setting of new targets
Planning
 Identification and review of energy aspects
 past and present energy consumption and energy factors based on
measurement and other data.
Planning
 the identification of equipment having significant energy consumption, in
particular of significant changes in energy use during the last period
 Energy Management Matrix
Level Policy Organisation Communication Monitoring Awareness Investment

Top Management Clear delegation of Formal and informal Sets targets, monitors Promotion of the Positive
commitment to Energy responsibility for communication consumptions, value of energy discrimination in
Management: Policy, energy consumption, channels exploited by identifies faults, efficiency to all the favour of energy
4
Action Plan and to the members of the energy manager and quantifies savings members and efficiency in all
Review. Management organisation. staff at all levels. and budget tracking. stakeholders of the organisation's
Integration. organisation. investments.

Formal Energy Energy Manager Implementation Team Monitoring and Program of staff Cursory appraisal of
Management Policy accountable for all used as main Targeting reports training, awareness new building,
but without active energy consumption, communication based on sub- and regular publicity equipment and
3
commitment from Top representing all users channel together with metering but without campaigns. Usual refurbishment
Management. to Top Management. direct personal efficient reporting to payback criteria used. opportunities.
contacts. users.

Un-adopted Energy Energy Manager with Contact of important Monitoring and Certain budget is Only energy
Management Policy little support and energy users, by Targeting reports allocated to energy investment with short
set by Energy unclear authority, organisation's based on supply and management and pay-back periods are
2
Manager or senior reporting to Top members lead by accounting data, some awareness and planned and realised.
Department Manager. Management. senor Department without reporting to training is elaborated.
Manager. users.

Energy Management, Informal and not Cost reporting to Top Energy Manager Informal and not Only low and no cost
unwritten guidelines, systematic contacts Management based compiles energy systematic contacts measures taken for
as part time of the Energy only on invoice and tracking reports only used to promote energy conservation.
1 responsibility of Manager with only a accounting data. for internal use in the energy efficiency.
someone with limited few important energy technical department.
authority and users.
influence.

No explicit Energy No contact with No established No accounting for No promotion of No energy

Management Policy, important energy information system. energy consumption. energy efficiency. conservation
Energy Manager, users. investments.
0
Action Plan and
responsibility
delegation.
Planning
 the identification of equipment having significant energy consumption, in
particular of significant changes in energy use during the last period
 Planning
The analysis should result in a breakdown of energy use to the
extent that the energy requirement and energy drivers are
identified for each significant energy usage. This will also require
an identification of the system boundary of the significant energy aspect
under consideration.

 an estimate of the expected energy consumption during the following period

 the identification and prioritization of opportunities for improvement
Planning
Planning
Planning
 Special investigations (SI)
 In the case that no opportunities for improvement are being
implemented in any one year (and none have been identified),
the organization shall carry out, in that year, at least one special
investigation into
 areas that may offer potential for energy savings, and report on
its outcome.
 A special investigation shall be planned and described in terms
of:
Planning
 • Aim of project
 • Expected saving potential
 • Activities to be carried out
 • Organization and responsibilities
 • Time schedule
 • Budget and resources

 Where organizations have already identified opportunities, they should

concentrate on implementing these. Over subsequent reviews, as opportunities
for improving energy efficiency are more difficult to identify and the standard
begins to infiltrate business practices and create a culture of energy efficiency,
 then more in-depth analysis will be required to understand where and how
performance can be improved.
Planning
 Planning
 Energy Objectives, targets and programme(s)
Target setting is a cyclical process and in some cases may be regarded as continuous, if
short time scales are used. Targets should be SMART (simple, measurable, achievable,
realistic and time-based).
 Planning--EnPI
 Each identified significant energy usage should have an associated objective or
target. This may be in the form of an energy performance indicator (EPI).
 EPIs for energy consumption can be set at management and operational levels.
Management level EPIs will generally relate to the overall control of significant
energy usage. Operational level EPIs may relate to particular items of plant,
equipment etc., and focus on specific energy savings opportunities.
Implementation and Operation
 Resources, roles, responsibility and authority
 Operational control
 Design
 For significant projects, an energy representative should be part of the design team, and the
team should work in an integrated manner. For major projects an interdisciplinary team should
be established.
 Where appropriate, energy performance targets and performance measures should be set.
 Whole-system design of the project should be addressed.
 Life-cycle costing should be applied, where appropriate.

 Specification and Procurement

 Procurement policy should include a requirement to take into account the energy implications
of procurement decisions and all procurement decisions that affect significant energy use
should start with an evaluation of needs. Procurement specifications, tender and contract
documentation should include energy consumption criteria and a requirement to analyse the
life-cycle costs of purchases. Organizations should consider energy efficient products and
services (including those carrying a recognized eco-label) as the first choice in all applicable
procurements, unless there are reasons not to do so such as health, safety, performance, or
cost considerations.
Implementation and Operation
 Specification and Procurement
Implementation and Operation
 Operation and maintenance
Each significant energy user should have an associated operation and maintenance
procedure(s). For some organizations, the correct operation of significant energy using
plant, equipment or other users, may account for the majority the energy saving potential.
Personnel who operate such plant, equipment etc. should be competent on the basis of
appropriate education, training and/or experience

 Possible maintenance techniques include:

 Preventive Maintenance.
 Predictive Maintenance.
 Reliability Centered Maintenance (will require equipment specific maintenance routines).
 Overall Equipment Effectiveness (OEE).
 Totally productive maintenance.
 Other principles may be applied, such as ‘right first time’.

Maintenance activities on equipment that is relatively unimportant in terms of energy use

and facility reliability may apply a reactive maintenance approach.
Monitoring and Measurement
 Significant energy usage should be metered as appropriate and recorded in a metering plan. The
addition of energy meters will depend on the feasibility and cost-effectiveness of the metering.
 Factors to take into account in determining cost-effectiveness of metering, include the cost of:
 Design
 Purchase
 Installation
 Operation
 Data storage
 Analysis of the data output
 Maintenance

 This must be weighed against the estimated energy cost savings. A metering strategy should be
considered that identifies what needs to be metered and takes into account the factors
determining cost-effectiveness.
 Metering can range from sophisticated permanent meters to simple low cost spot meters. Due
consideration should be given to other instrumentation that is available from which energy
consumption can be deduced/calculated, such as hours run meters, flow meters and temperature
measurement.
Monitoring and Measurement
 An important principle of metering and its outputs is that it should be increasingly integrated
into the business management process.

 In justifying the relevance of the measurement frequency applied in relation to the identified
energy usage, simple risk analysis may be used.

 Significant energy usage should be monitored in order to identify unnecessary or wasteful

energy usage.

 Monitoring techniques may consist of meter readings, indirect measurements, estimations etc.

 It is important to establish relationships between the significant energy users and the factors
that affect its consumption. It should be noted that it is not always practicable or beneficial to
monitor energy consumption or energy factors due to a relatively stable and constant energy
requirement. In these instances it should be demonstrated that it is not practical or beneficial
to monitor the energy consumption or associated energy factor of the significant energy user.
 HUMAN RESOURSE ALLOCATION

Structure and Responsibilities

 Energy Manager
 Designs and implements measures
 Motivates and supports personnel
 Coordinates activities and changes
 Monitors and communicates performance
 Staff Involvement
 Participation of end users and executives
 Clear responsibilities and assignments
 Multilevel cross-functional communication
 Reward of success of and remark of failure
ISO 50001 /EN 16001

Role of Energy Manager

 ROLE OF ENERGY MANAGER
1. Energy Data collection and Analysis
 maintain records of energy & water consumption
 supervise reading of all meters on a regular basis
 develop indices for specific energy consumption

2. Energy Planning supervision

 review utility & fuel bills
 investigate & recommend fuel-switching opportunities
 develop plans in the event of supply shortages
 prepare annual energy cost budgets
 ROLE OF ENERGY MANAGER
3. Energy Conservation
 develop energy conservation ideas and projects

 evaluate financially energy-saving options

 obtain management commitment of funds

 re-evaluate existing projects

 set performance standards

4. Energy Project Implementation

 indicate equipment maintenance programmes

 supervise implementation of conservation projects

5. Communications & Public Relations

 prepare reports to management

 communicate with production and support departments

 develop awareness programmes to encourage participation

 publicise commitment to energy conservation

 CAPACITY BUILDING

Awareness and Training

 Importance of energy efficiency
 Implementation of conservation measures
 Consequences of their work activities
 Roles and responsibilities
 Involvement and active participation
 Training according to function
 Managers – Specialists – Workforce
 Implementation of energy policy
 ENERGY AUDIT

Current Status Assessment

 Identification of key areas and activities
 Determination of energy indicators
 Collection and analysis of energy data
 Determination of baseline consumptions
 Identification of conservation opportunities
 Identification of legal and other requirements
 Determination of energy management level
 INFORMATION MANAGEMENT

Monitoring and Targeting

 Data Collection
 Meter readings and energy bills
 Production related data
 Analysis
 Specific energy consumption indicators
 Correlations and use of charts and graphs
 Valuable information and conclusions
 Reporting
 Right information to the person responsible for action
 Information: accurate, on time, concise and on right form
 Action
 Appropriate action – achievement of energy targets
 Evaluation of measures – setting of new targets
 COMMITMENT RENEWAL

Management Review
 Annual periodic review
 Assessment of management performance
 Identification of weaknesses and strengths
 Existence of top management commitment
 Sufficiency of human or economic resources
 Sufficiency of motivation or incentives
 Quality of information and reporting
 Sufficiency of monitoring of system
 Clear and simple conclusions
 Determination of improvement priorities
 Action planning inputs
 System optimization: Why a system
approach matters in industry

 Steam and electric motor-driven systems account for more

than 50% of final manufacturing energy use worldwide
 In industry energy efficient equipment per se does not
guarantee energy savings when it is part of a bigger
system
 System approach involves looking at how components
function together to deliver a certain end-use
 Energy efficiency improvement potential through system
optimization is on average 15-30%
System optimization: Why a system
approach matters in industry
Definitions
 Performance Measure:

An indicator used by management to

measure, report, and improve
performance. These are classed as
either a key result indicator (KRI), a
performance indicator (PI), or a key
performance indicator (KPI).
 Definitions
 Key Resulting Indicators (KRIs):

Key result indicators (KRIs) tell you how

you have done in a perspective.

 Performance Indicators (PIs):

Performance indicators (PIs) tell you what

to do.
 Definitions
 Key Performance Indicators (KPIs):

Key Performance Indicators (KPIs) tell you

what to do to increase performance
dramatically.
Definitions

Three Types of Performance Measures

What
What are
are KPIs?
KPIs?
 What are KPIs?
KPIs represent a set of measures focusing
on those aspects of organizational
performance that are the most critical for
the current and future success of the
organization. KPIs are rarely new to the
organization. They have either not been
recognized or were “gathering dust”
somewhere unknown to the current
management team. KPIs can be illustrated
by two examples,
7 KPI characteristics

 1. a KPI echoes organizational goals

 2. a KPI is decided by management
 3. a KPI provides context
 4. a KPI creates meaning on all organizational
levels
 5. a KPI is based on legitimate data
 6. a KPI is easy to understand
 7. a KPI leads to action!

11/04/21 65
Components of KPI
The KPI should be seen as:
Only Key when it is of fundamental
importance in gaining competitive advantage
and is a make or break component in the
success or failure of the department / section.

11/04/21 66
Components of KPI
The KPI should be seen as:
Only relating to Performance when it can be
clearly measured, quantified and easily
influenced by the department / section.

11/04/21 67
Components of KPI
The KPI should be seen as:
Only an Indicator if it provides leading
information on current and future
performance. A considerable amount of data
within the department / section only has value
for historical purposes is not an indicator.

11/04/21 68
How to classify Indicator
• A parameter can be classified as INDICATOR,
when after measurement of INDICATOR

• We need more information about some

more parameters in order to control
INDICATOR

• We immediately move on to take action in

order to control INDICATOR
 Role of EnMIS in EnMS

 Track energy usage, identify wastage and generate reports.

 Energy monitoring, verification on Performance Contracting.
 Plan, process, monitor and compare activities.

Advantages:
The major advantages of the softwares for energy management is to store the
data in a usable format, the calculations of effective targets for energy use, and
comparison of actual consumption with the targets, early detection of poor
performance, effective performance reporting.
 Software objective
 Assess the energy consumption (Thermal, Electrical, Water) of textile
mills.

 Generate identification code for proper classification of textile mills for

comparative analysis.

 Compare the textile mills energy consumption with the Industry average

 Bringing Awareness about standards of energy consumption

 Self assessment for improvements in the textile mill’s energy
consumption.

 Classification of textile mills into gold/ silver/ bronze/ tin

Statistics Summary
Electrical Rating
Thermal Rating
Water Rating