Energy Management System Standard ISO 50001 Md Mizanur

Energy Management System Standard ISO 50001 Md. Mizanur Rahman MEng(Sweden), Ph. D (Finland), CEng (UK), Chartered Energy Engineer (EI, UK) Certified Energy Manager Cell: 0176480491 Email: mizanur@mail. fkm. utm. my 1

Energy management • Energy management activities consists of monitoring energy consumption, analysing trends in energy use, identifying and implementing energy saving measures, and verifying savings with proper measurements. • Energy management helps managers and staff to identify options for increasing energy efficiency, carry out energy efficiency projects, monitor energy use and results, and learn from technical actions. • It is widely accepted that only systematic energy review and management process can tap the full potential of energy efficiency in industry 2

Barriers to implement Energy Management (EM) in industry • Policies: There are no mandatory rules or regulations to adopt EM or reduce GHG emissions • Market conditions: The prices of fuels and electricity are low; no CO 2 market; or no market recognition • Lack of information: Enterprises do not recognize the need where and how spend energy • Technical: Enterprise are unable to monitor their energy use or/to modify their processes

Benefits of EM • Organization’s financial savings • Increasing of reliability of operations • Positive effect on productivity and competitiveness • Attractive financial and economic returns • Reducing the exposure to rising energy prices • Increasing of security of supply • Reducing the impact on the environment 4

Why it is not happening? • Management focus on production, not on EM • Lack of information and understanding of financial and qualitative benefits • Lack of adequate technical skills for identifying, developing and implementing EE measures and projects • Poor monitoring systems and data • First costs more important than recurring costs > disconnection between capital and operating budgets • When EM knowledge exists it very often resides with individuals rather than with the company/ organization > sustainability risk • Financing 5

Energy Management System (En. MS) • An energy management system (En. MS) is a collection of procedures and practices to ensure the systematic tracking, analysis and planning of energy use • Structured approach to the management of energy use Energy Management System Standard • Standardised approach to implementing an En. MS • Best practice EM standard refers to a management system that meets the requirements of ISO 50001: 2018 • An organization may decide to base its En. MS on a standard e. g. ISO 50001: 2011 Certification of En. MS • An organization may decide to have its En. MS certified (to demonstrate its best practice to customers, clients and suppliers OR fulfil a legal or other requirement) 6

• Energy management programmes (En. MP) are the policies and initiatives that encourage companies to adopt energy management systems. Energy management programmes play an important role in showing that improving energy efficiency is not only compatible with – but can also drive – profitable business development. • Energy Management System (EMS) refers to a software that enables energy optimization by use of temperature setbacks, occupancy controls, or other control functions 7

What En. MS can achieve • Systematic activity • Actively managing energy use and costs, reducing exposure to rising energy costs • Obligation to train and raise awareness • Obligation to provide resources • Document savings for internal and external use (e. g. emission credits, legal reporting requirements) • Reduce GHG emissions without negative effect on operations • Continuity through changes of personnel Energy and Cost Savings Continual Improvement Environmental Benefits 8

En. MS Standards and ISO 50001 – Background • National En. MS standards (as of 2009) Denmark, Sweden, Ireland, USA, South Korea, Thailand, South Africa, China • National En. MS specifications or laws (as of 2009) Australia, Canada, Germany, The Netherlands, United Kingdom, Japan • Regional En. MS standards EN 16001 – European Energy Management Standard – 1 July 2009 • International En. MS standards-International Standard ISO 50001 – Energy Management Systems – Requirements with guidance for use – 15 June 2011 9

• March 2007 - UNIDO Meeting on En. MS in Industry Recommendation to ISO Secretariat to consider developing an International En. MS Standard • ISO 50001 developed by ISO Project Committee 242 – Energy Management, established in Feb 2008 • Membership as of March 2014 -49 countries full members, 12 countries as observers, 11 organizations-in-liaison, incl. UNIDO • ISO 50001 developed in 2011 10

Quiz About Energy Management Systems Question 1 Why should enterprises adopt En. MS ? a)To improve their energy efficiency b)To reduce costs c)To increase productivity d)Systematically manage their energy use Question 2 What should be improved by adopting an En. MS ? a)Fuel usage b)Electricity usage c)Energy performance d) Energy intensity Question 3 The ISO 50001 is a? a)Structured approach to the management of energy use b)Voluntary global energy management system standard c)Guide to improve energy performance d)Technical regulation 11

ISO 50001: 2018 - Scopes 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. Will also address measurement of current energy • usage, and implementation of a measurement system • to document, report, and validate continual improvement in the area of energy management.

How ISO 50001 will help? • Will provide organizations with technical and management strategies to increase energy efficiency, reduce costs, and improve environmental performance. • To provide organizations and companies with a recognized framework for integrating energy efficiency into their management practices. • Multinational organizations will have access to a single, harmonized standard for implementation across the organization with a logical and consistent methodology for identifying and implementing improvements.

The Basic Approach of ISO 50001

Core terminology used in energy management system (En. MS) • Energy policy, top management’s official statement of the organisation’s commitment to managing energy. • Cross-divisional management team led by a representative who reports directly to management and is responsible for overseeing the implementation of the energy management system. • Energy review to analyse and assess current and planned energy use and energy sources, relative to production and service delivery. The review then identifies opportunities for improvement. • Baseline of the organisation’s energy use. • Energy performance indicators (En. PIs) that are unique to the company and are tracked to measure progress. • Energy objectives and targets for energy performance improvement at relevant functions, levels, processes or facilities within an organisation. 15

• Action plans to meet those targets and objectives. • Operating controls and procedures for significant energy uses. • Measurement, management, and documentation for continuous improvement for energy efficiency. • Internal audit of progress of the En. MS based on these measurements. • Revision by third-party auditor to receive certification/verification and recognition by external stakeholders. 16

Key Requirements in ISO 50001 1. Appointment of management representative by top management 2. Preparation of energy policy 3. Identification and ensuring compliance against legal & other requirements 4. Conducting energy review of existing energy sources. 5. Creating energy base line as benchmark for improvement 6. Energy performance indicators 7. To provide necessary trainings 8. Establishing necessary operational controls for control of energy consumption 9. Design of energy efficient facilities, equipment, infrastructure, systems and processes right from project stage 10. Procurement of energy efficient equipment, instruments and services such as transportation etc. 11. Monitoring &measurement of energy consumption , performance indicators, significant energy uses & related variables 12. Internal audit, management review, control of documents, control of records.

Key Requirements in ISO 50001

Management/Technical Interaction PDCA Cycle

To certify or not ? • Certification by an independent auditor is not a requirement of the standard itself • To certify or not is a decision to be taken by the standard user, unless imposed by regulatory requirements.

En. MS Based on the concept of: • Plan • Do • Check • Act

Management Responsibility • ISO 50001 Standard says…… – It requires the top management to demonstrate its commitment to support and continually improve the effectiveness of the En. MS

Management Responsibility • Is the top management really comitted? • Will they support the system? • This is a decision point! • If not, we can all go for coffee now! • Will they make the necessary resources available (technical, financial and human)

Management Role The foundation of the system • • Management Give commitment Sign policy Allocate resources Assign responsibility Top management representative Give support Make decisions

Management Support & Commitment • Top management commitment is crucial to the successful implementation of the En. MS. – provide the necessary resources such as time, personnel, financial, materials, etc. for the effective implementation of the En. MS. • It must be communicated and made visible to the entire organization to encourage active participation of all staff members in adhering to the En. MS.

Management Representative • ISO 50001 Standard says…… – It requires the top management to appoint a management representative(s) to promote awareness and oversee the implementation of the En. MS. (Item 4. 2. 2)

MR • ISO 50001 standard requires an organization to appoint a management representative to oversee the development and operation of the En. MS. – To help the organization achieve its energy objectives and targets and for improving energy performance. • Should be competent to perform the required duties and be capable of exerting influence throughout the organization to implement and improve the En. MS.

MR Roles • Responsible for managing all aspects of the En. MS as it evolves. • MR should have sufficient authority, competency and resources to ensure the overall effectiveness of the En. MS.

Energy Manager • In some organisations, this may be the same person as the management representative • Often not a full time job; – For example, maintenance or engineering manager or engineer – Probably a technical person with energy engineering knowledge • Role • Implement the En. MS • Owns the En. MS • Manages energy use • Acts as auditee for the En. MS • Responsibility • Varies with organisation • Implementation • Energy budget • Reporting

Energy Management Team • The energy management team is responsible for ensuring the implementation of actions/measures of the energy management decisions. • The composition and size of the energy management team should be determined with due consideration of the size and complexity of the organization.

Energy. Management Team • Decide structure and membership based on size and complexity of your organisation • Representatives from relevant departments – Production, finance, engineering, operations, senior management representative, energy manager or engineer, etc. • Cross functional cooperation • Common and shared goal

SUSTAINABLE TEAM

Roles, Responsibility & Authority • Required for each individual involved in the En. MS • Each person needs to understand their own role and responsibilities • Every needs to know each others authority levels • This may seem like common sense but is often a source of ineffectiveness • MUST be completed, accepted and communicated in advance of next steps

Energy Policy • ISO 50001 Standard says…… – It requires the organization to define an energy policy to state its commitment for achieving energy performance improvement. (Item 4. 3)

Energy Policy • Management commitment • Not just a signature! • Define scope of En. MS • Appropriate to scale • Commitment to continual improvement • Make resources available • Framework for target setting and management review

Energy Policy • ISO 50001 requires an organization to at least state the following commitments in the energy policy: – Continual improvement in energy performance; – Availability of information and of necessary resources to achieve objectives and targets; – Compliance with relevant legislation and other requirements related to energy use, consumption and efficiency; – Support for purchasing energy efficient products and services; and – Designing for enhanced energy performance.

Energy Policy • The policy should be defined and approved by the top management to show its commitment to meet the organization’s goals. • Must be communicated to all staff and be reviewed and updated in a systematic manner. • The organization can decide whether or not to make the policy available externally.

Energy Policy

Barriers to success • Common weaknesses in energy policies that lead to poor energy management: – not actively supported by senior management – not succinct – lack of specific targets and commitments – out of date – not a living document – not supported by a strategy with the ability to deliver.

Energy Planning

Planning • How much energy am I using? • Where am I using it? • Which are significant users? • What is driving it? • Who is influencing its use? • Do I need to have an energy assessment (=audit)? – If yes, focus it • System Optimization • Renewable energy options • Are there legal or other requirements? • Develop baselines & En. PIs • Set objectives and targets • Action Plan

Overview of Energy Planning Process

Full Workflow

Electricity Laws & Regulations: • ‘Energy Commission Act’ (2001) empowers the EC to advise the Minister on energy supply activities (which is defined as electricity and piped gas). The remit of the Act includes regulation on transmission, generation, safety and promotion of renewable energy. • ‘Electricity Supply Act’ (1990) to provide for the regulation of the electricity supply industry from generation, transmission in respect to safety of persons and efficiency use of electricity. • ‘Electricity Supply Regulations’ (1994) under the provisions of the Electricity Supply Act (ESA), registers electrical installation, competent persons in the electrical industry, contractors, and provide a list of electrical equipment which are safe and can be used in Malaysia. Under this regulation, energy labeling of electrical equipment are also included. • ‘Efficient Management of Electrical Energy Regulations’ (2008) becomes operation on 15 th December 2008 and make it mandatory of installation to appoint energy managers and submit energy audits.

Energy Review, Baseline & Performance Indicators • ISO 50001 Standard says…… – It requires the organization to develop, record and maintain an energy review as well as document the methodology and criteria used to develop the review. (Item 4. 4. 3) – It requires the organization to establish an energy baseline(s) for the measurement of the energy performance. (Item 4. 4. 4) – It requires the organization to identify appropriate energy performance indicators to monitor and measure its energy performance. (Item 4. 4. 5)

Energy Review • The organization must record and maintain an energy review with certain documented methodology and criteria. • An energy review is a process to determine an organization’s energy performance based on • data and/or actual measurement, leading to identification of opportunities for improvement. • The review provides useful information for the development of the energy baseline and the selection of energy performance indicators (En. PIs). • It also establishes the monitoring capability to support effective continuous improvement of the En. MS in the future. • Energy Review is Energy Audit

Energy Audit • Energy audits are a tool to reduce energy consumption and find a long-term solutions. • Identify and prioritize opportunities to improve energy performance, reduce energy waste and obtain related environmental benefits. • Audit outputs include – information on current energy use and performance – recommendations for improvements in a wide range of areas, covering • operational controls, • maintenance controls, • modifications and • capital projects.

Significant Energy Users (SEUs) Which systems? • • • Sub meters Motor list Estimation Calculation Pie Charts Sankey Diagrams Which people? • Who influences SEUs? • Training needs • Organisation charts Drivers? • What is driving use? • Variables • Activity • Weather • Regression analysis

How to quantify each energy user? • Do you have sub-metering? • This is the best situation • Ideally automatically logged to a database • Manually read also gives good information • Are meters accurate and working • Is data collection working and accurate • Do you have local meters? • k. W, A, flow rate, etc. • These can be read manually and calculated/estimated • Care with time of readings • Quantification or estimation of use • Equipment List and energy information (specifications/actual data)

Which systems? • What is the single largest energy user in your organisation? • How much energy does it use? • What drives that use? – What causes it to increase or decrease? • Which people affect the energy use of that item/system?

Determination of Energy Consumption • Analysis of Energy Bills • Energy Measurements • Energy Estimation – When actual measurement of data is not available, estimation of monthly energy consumption by power rating and operating hours may be adopted

Heat Balance • Use what you know: • Steam flow • Feedwater flow (= steam flow approximately) • Fuel flow (heat flow = fuel flow * efficiency) • Gas bills • Hot water flow and temperature difference (d. T) (Q=m*Cp*d. T) • Build up a balance • Heat in = heat out • If you have a significant gap, you may need to measure it • Ultrasonic flowmeters, portable heat meters • More challenging than electrical power – Typically fewer measuring points

• Establish energy performance indicators (En. PIs) Varying levels of complexity • Absolute energy consumption – Simple but ignores activity levels • Simple Ratios – Easy to use but can be • misleading – Take account of activity levels – Can only deal with single variables • Regression analysis – More complex – Quantifies driver effects – Allows comparison of actual against expected use • Try to have an En. PI for each SEU

Energy Performance Indicators (En. PI) • Energy Performance Indicators (En. Pls) to monitor and measure energy performance. • En. PIs are useful tools to enable management to assess actual energy performance against expected outcomes. • An En. PI can be a simple parameter, a simple ratio or a complex model.

En. PI • The organization can select and determine suitable En. PIs according to the operation to better reflect and measure its energy performance. • The En. PIs should be updated when business activities or baselines change that affect their relevance. • The methodology to determine and update the En. PIs should be recorded and reviewed regularly.

En. PI • energy consumption per unit of floor area • energy consumption per unit of production • Y = m. X + C • Y = m 1 X 1 + m 2 X 2 …. . + C

Energy Baseline(s) • Where are we starting from? • Permits quantification of success (or failure!) • Different types: • Absolute consumption • Specific energy consumption, e. g. k. Wh/unit output • Regression formula

Baselines • Baseline is initial model

Baselines

Energy Metrics • Consider the drivers for each SEU • This relationship may be your baseline • Energy Performance Indicators (En. PI) • Baseline • Baseload • Regression Analysis

Measurement Plan • Once SEUs are known • Including variables • Reporting requirements can be specified • What meters and measurements are required to deliver these reports? • How much can be achieved with existing instruments? • Manual vs. automated • List what new instruments are required • Each new instrument should be able to justify its cost • Don’t forget installation cost • Electricity and liquid flow meters can be good value • Gas flow meters tend to be expensive (steam, compressed air, etc)

System Optimisation • Examine the whole system and not individual components • Establish user requirements and specification • Examine opportunities with use • Examine opportunities with distribution.

Opportunity List

Types of people who impact energy consumption • Immediate and direct impact • SEU Operators • Maintenance and external service personnel • Influencers • Managers, supervisors, leaders • Production people • People who see things differently • Cleaners • Security • Safety Officers

Energy Management System Planning Outputs • Energy Baseline(s) • En. PIs • Objectives • Targets • Action Plan

Objectives, targets & action Plans

• ISO 50001 Standard says…… – It requires the organization to establish, implement and maintain documented energy objectives, targets and action plans specified outcome or achievement defined to meet its energy policy related to improved energy performance. (Item 4. 4. 6)

Objectives & Targets • Documented energy objectives and targets should be established to ensure compliance with the organization’s energy policy, and to facilitate continual improvement in energy performance. • Objectives should state what the organization wants to achieve; while targets should specify how the organization would achieve those objectives. • The objectives and targets should be practical, achievable and measurable, and must conform to the organization’s business objectives and preferably provide some challenge to the organization.

Objectives & Targets Example

Targets • Alter the formula to reduce by targeted amount • E. G. multiply coefficients by 0. 95 Annualized F 1+F 2 (July 2010 June 2012) 3, 750, 000 3, 700, 000 Annualized Elect 3, 650, 000 y =1. 9931 x +2 E+06 R² = 0. 7298 3, 600, 000 3, 550, 000 3, 500, 000 3, 450, 000 3, 400, 000 3, 350, 000 3, 300, 000 3, 250, 000 3, 200, 000 580, 00 0 600, 00 0 620, 00 0 660, 000 680, 00 0 Product 640, 000 700, 00 0 720, 00 0

Relationship

Sample objectives ID Description Resp Target Date 1 Reduce electricity consumption by 15% Increase awareness of energy matters to 90% of employees JB 31 Dec 2014 MM 31 Dec 2013 2 3 4 5 Status

Sample targets ID Description Resp Target Date 1 Train all boilers operators on energy efficient operations JB 31 Dec 2011 2 Carry out 4 energy awareness training sessions MM 31 Dec 2011 1 comp 3 Increase condensate recovery rate to 90% JB 31 Dec 2011 83% 4 5 Status

Action Plans • Action plans should be developed to address all of the organization’s energy objectives and targets detailing how and when they are to be achieved, which will subsequently facilitate monitoring the progress in achieving the energy objectives and targets. • The action plans should include schedules, resources and responsibilities for achieving the objectives and targets. • They should be flexible and be able to be revised to reflect any changes in the objectives and targets.

Example of an Action Plan • Replace lighting with more energy efficient options • Provide energy training for staff • Ensure air handling units are turned off when not required • Review and upgrade if required insulation • Substitute high efficiency motors when replacement is required. • Use ambient air for compressed air system intake.

Implementation & operation

Implementation & Operation • Competence, training and awareness • Documentation • Operational control • Key Area • Operation and Maintenance • Service Contractors • Training • Communication • Design – Energy Efficient Design (EED) • Purchasing energy, services, goods Action Plan

Competence, Training & Awareness • ISO 50001 Standard says…… – It requires the organization to ensure all staff and persons related to significant energy uses are competent. (Item 4. 5. 2)

Competence • Competence refers to persons who possess the required skills, knowledge, qualifications, and capacity to perform their duties that can significantly affect energy use or the implementation of the En. MS. • A competent workforce is essential in successfully implementing the organization’s En. MS and achieving improved energy performance. • The knowledge and skills that are necessary to implement the En. MS, ensure control of the significant energy uses and achieve the energy objectives and targets must be addressed.

Training • • • Appropriate training should be provided to all relevant personnel. This training should include general concept of energy management as well as skills training (usually on-the-job) to allow personnel to carry out their tasks with an awareness of the impact their activities can have on the energy performance. Contractors working within the boundary of the organization, should be required to provide details of their competence

Communications • ISO 50001 Standard says…… – It requires the organization to address internal communication in relation to its energy performance and En. MS. The organization should also decide whether to communicate externally about its energy policy, En. MS and energy performance. (Item 4. 5. 3)

Internal Communication • An internal communication procedure could include how staff members are made aware of energy issues, how decisions are made or information is disseminated to staff etc. • make provision for the communication of suggestions / complains etc. relevant to energy management and how these are dealt with. • Communication procedure to cover the process in responding to comments and suggestions by contractors working for or on behalf of the organization.

External Communication • Should maintain a documented decision on whether it will communicate its energy policy, En. MS and energy performance externally • If they do, they should consider the following aspects: – type and level of information to be communicated; – targets of communication; – mechanisms and responsible parties to handle and respond to enquiries; – official response time; and – recording system and format of communication and the associated correspondence.

Documentation • ISO 50001 Standard says…… – It requires the organization to establish, implement and maintain information to describe the core elements of the En. MS and their interaction. (Item 4. 5. 4. 1) – It requires to control all the En. MS documents. (Item 4. 5. 4. 2)

Documentation • ISO 50001 Standard require documented information that describes the core elements of their En. MS: – scope and boundaries of the system; – energy policy; – energy planning process including methodology and criteria used to develop the energy review, energy baselines and methodology for determining and updating the En. PIs; – energy objectives, targets and action plans; and – decision whether to communicate externally about information of energy performance.

Operational Controls • ISO 50001 Standard says…… – It requires the organization to identify and plan operations and maintenance activities which are related to its significant energy uses in order to ensure that they are carried out under specified conditions. (Item 4. 5. 5)

Operational Controls • Implementation of the En. MS is dependent on the establishment and maintenance of operational procedures and controls to ensure that the significant energy uses are being controlled • Review all significant energy uses to identify those which are not already controlled or where existing controls may be insufficient, and to subsequently ensure that control procedures are in place for all such areas

Review Operation Control • This is aligned with the review of training needs – It additionally checks operating and maintenance procedures • Check operating procedures • Are operators familiar with the energy impact of operations? • Check maintenance procedures • Check maintenance frequencies • Are maintenance staff familiar with the energy impact of their work? • This review will help to assess training needs

Operational Control: A critical element of the En. MS for energy savings Steps in achieving effective operational control: 1. Determine and establish maintenance and operational criteria 2. Communicate operational controls 3. Operate according to the criteria Leads to, SIGNIFICANT ENERGY SAVINGS & BENEFITS WITHOUT CAPITAL EXPENDITURE!

Developing Criteria Sources of Criteria • Manufacturer’s recommendations • System operational manuals, including automated controls • Service personnel suggested operating settings • Service personnel suggested maintenance practices • Internal expert’s suggestions • Guidance from energy system experts • Benchmarking performance of similar equipment • Past issues or problems

Operational Criteria • Operating criteria Temperature Pressure Residence time Humidity Control schemes Others

Maintenance options Preventive maintenance Predictive maintenance Reliability centred maintenance (RCM) Overall equipment effectiveness (OEE) Total productive maintenance (TPM) • Note: reactive maintenance maybe appropriate for items thatare relatively unimportantin terms of reliability and energy use

Maintenance criteria and Factors • Maintenance criteria • Filters • Lubrication • Tune-ups, adjustments • Maintenance factors • Operating schedules • Inspection methods and intervals • Start up & shut down • frequency • Severity of service

Procurements of Energy Services, Products, Equipment and Energy • ISO 50001 Standard says…… – It requires the organization to inform suppliers that procurement is partly evaluated on the basis of energy performance when procuring services, products and equipment that have an impact on significant energy use. (Item 4. 5. 7)

Life Cycle Analysis: Purchasing & Lifetime Costs Upfront expense Incremental cost Energy cost Maintenance cost Expected lifetime Disposal cost/Salvage value

Checking

Checking Check Operations • Check operator records • Check maintenance records • Equipment checking Check the system • Is everyone doing what is required? Check Performance • Check En. PIs • Check trends and costs Check progress • Against plans

Monitoring, Measurement & Analysis • ISO 50001 Standard says…… – It requires the organization to monitor, measure and analyze the key characteristics of its operations that determine energy performance at planned intervals. Equipment used in monitoring and measurement of key characteristics should be calibrated to ensure data are accurate and repeatable. (Item 4. 6. 1)

Monitoring, Measurement & Analysis • According to the standard, key characteristics required monitoring shall include at a minimum: – Significant energy uses and other outputs of the energy review; – The relevant variables related to significant energy uses; – En. PIs; – The effectiveness of the action plans in achieving objectives and targets; and – Evaluation of actual versus expected energy consumption.

Checking Performance En. PIs Baseline Savings targeted to date Savings achieved to date

Internal Audit • ISO 50001 Standard says…… – It requires the organization to conduct internal audits regularly to ensure effective implementation of the En. MS. (Item 4. 6. 3)

Internal Audit • Should establish a programme to evaluate periodically on its En. MS implementation and check the effectiveness of the system in fulfilling their energy policy. • The programme should include the scope and frequency of the audits.

Nonconformities, Corrective & Preventive Actions • ISO 50001 Standard says…… – It requires the organization to address nonconformities by making corrections, and by taking corrective action and preventive action. (Item 4. 6. 4)

Management Review

Management Review Regular presentation How are we getting on? Is performance improving as targeted? Problems and barriers to overcome? Achievements What is the plan for next year? What do we need to achieve this plan?

Management Review • ISO 50001 Standard says…… – It requires the top management to review the En. MS regularly to ensure its suitability, adequacy and effectiveness. (Item 4. 7)

PDCA complete Ongoing Activities Training Communication Operational Control Procurement Energy Efficient Design Action Plans Checking • En. PIs • Progress • En. MS

En. MS Project Plan • Note: The implementation of an En. MS is a project • The use or operation of the En. MS is NOT a project • Every organisation will be different • Different complexity and scale • Different approach to change management • Different cultures • Different speeds of action

Energy management Programme (En. MP) • Despite energy efficiency measures have been demonstrated to contribute to business competitiveness and raise productivity, energy efficiency actions and improvements are still not typically or widely viewed as a strategic investment in future profitability. • Because energy efficiency potentials are highly fragmented and spread across a multitude of locations and devices, this dispersion ensures that energy efficiency is the highest priority for virtually no one. • En. MPs are a means of encouraging the use of En. MS to overcome a range of barriers 109

Energy management Programme (En. MP) En. MPs help companies to the implementation of En. MSs, and provide guidance and support for the implementation process. 110

• • • Drivers and Supportive policy mechanisms for En. MS implementation Target-setting agreements (incl. reporting requirements) Tax policies Subsidies for energy audits Training and technical assistance Recognition programs Reward programme and other forms of recognition 111

• Capacity-building for En. MS implementation • Conformity assessment professionals • Mandatory implementation of En. MS • Energy review, benchmarking and technical tools. • Case studies showing peer experience. • Guidance materials. • Workshops, networks and other fora for best practice exchange. 112

Target-setting • Mandatory: Where adoption is made mandatory within the goal of achieving a certain energy intensity target • Voluntary or negotiated agreements: used by governments as a mechanism for promoting IEE Challenges • Sectorial targets are divided across facilities • Need for robust mechanisms for target setting • Government enforcement and control agencies have capacities • Need for institutional capacities from industries (associations, chambers, federations) to negotiate and operate 113

Tax policies and incentives • Exemptions to enterprise taxes: – On fuel or electricity use – On carbon taxes • Rebates on VAT of efficient industrial equipment or monitoring systems for environmental and/or energy control • Reduced income tax Challenges • Can be perceived as a subsidy • Enterprises ability to use the instruments 114

Training and technical assistance • Government led or government funded programs to strengthen technical skills in the industrial sector • Subsidizing technical consultants who may assist the implementation of En. MS Challenges • Encouraging industry to participate • Can be perceived as a subsidy • Enterprises ability to use the instruments • Availability of qualified staff • Creation of qualification mechanisms for technical experts 115

Enterprise Recognition Programs • Market based policy > to achieve recognition there has to be a tangible benefit obtained by the recognized enterprises • Third party verification > to provide industrial facilities and companies with a transparent system for verifying improvements in energy performance and management practices, which may involve or not ISO certification • Can be supported by cost-shared training and technical assistance for facilities seeking Challenges • Enterprises ability to use the instruments • Market value 116

Capacity-building for En. MS implementation • There is a need to have responsible agencies and competent staff across all aspects of an En. MS promotion policy, whethere is mandatory enforcement or control or just promotion of En. MS • Need for inter-institutional coordination • How to equip government agencies with mandatory roles? • How to strengthen agencies with support roles? Challenges • Need for dedicated teams or agencies? • Enterprises ability to use the instruments 117

Capacity-Building for conformity assessment professionals • If enterprises will certify the ISO 50001 standard, then the Quality Infrastructure needs to strengthened, particularly the ability of Certification Bodies to assess conformity, starting by Auditors • There are three main features of certification bodies that are addressed relative to conformity assessment, competency, consistency, and impartiality • Need for an internationally recognized • accreditation process at country level Challenges • Ensuring that energy performance improvements are achieved 118

Small group discussion • Discuss with your friends about environmental effects from application of coal, oil and gas (3 -5 minutes). • Give your opinions on: – Power generation sources in Malaysia or in your country – What are the environmental impacts from these fossil fuel uses? – Per capita emission in Malaysia and world? – How could the impacts be minimized? – Do you think Malaysian power sector is sustainable? 119