Presentation materials to introduce to decision makers of organizations to trigger the awareness among them with less technical contents and more on commitment required from them
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Energy management awareness program for decision makers
1.
2. Corporate trends & potentials for energy
savings to increase profitability
Barriers and options for organizations to
implement EE measures
ISO 50001: 2011 - Implementing energy
management system based on standard to
increase profitability
3. Building owners can see reduced operating costs, increased building values, greater
return on investment, and higher occupancy from new and retrofitted green buildings
UNEP - GEO-5 for Business
Impacts of a Changing Environment on the Corporate Sector
Companies may receive reputational benefits from achieving green building
certifications . A 2011 survey of U.S. adults- 64% would prefer to patronize a business
whose facility is certified as green, while 48% indicated that green certification of a facility
improves their image of a company.
University of Missouri researchers - consumers would be more willing to pay
between 15 & 20% more for retail products from companies that support
sustainable practices
UN Global Compact of 766 CEOs worldwide-93 % of CEOs said
sustainability issues will be a critical factor to the future
success of their business
2012 Ernst & Young Survey – 66% of executives saw an increased amount of
sustainability-related inquiries from investors in the past year. 70% inquiries focused on
energy management and greenhouse gas emissions & more than ½ questions about
sustainability reporting
Survey on 250 CFOs in 14 countries by Deloitte - CFOs are increasingly aware the benefits
sustainability can bring to the business. 2/3 respondents said they are involved in driving
sustainability strategies .More than 50 % said their involvement in pushing sustainable
practices has increased in the past year.
IS ENERGY EFFICIENCY AN
OPTION OR A MUST DO NOW?
5. EEPs viewed as
“Infrastructure
Investments” – LOW
PRIORITY VS. CORE
BUSINESS – don’t fix if not
broken
EEPs funding through
loans/debts WILL IMPAIR
“CREDIT CAPACITY” from
core business – NO WAY
for SMEs/SMIs
BENEFITS ARE TOO SMALL
TO APPEAR ON CEO’S
RADAR SCREEN & to
justify “perceived’
operating
complexities/risks
NOT CONVINCED ON
ACTUAL COST SAVINGS
ACHIEVED nor aware of
proven Measurement &
Verification(M&V)
methods to ensure
sustainability of savings.
6. • Management
Directives
• Implementation of
EnMS - to ensure
sustainability of
energy cost
reduction initiatives
MEASURES
With LOW/NO
COST
Minimal Cost
Savings
•Priorities of budget
- core
business/operations
•Investment risks
•Limited human
resources & expertise
MEASURES
WITH HIGH
COST
Significant Cost
Savings
May require
expert
assistance &
external
financing
In-house
initiatives
9. Will provide organizations with
technical and management strategies to increase
energy efficiency, reduce costs, & improve
environmental performance
a recognized framework for integrating energy
efficiency into their management practices.
An access to a single, harmonized standard for
implementation across the organization
…..with a logical and consistent methodology for
identifying & implementing improvements
10. 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.
11. Can be implemented solely for the internal
and external benefits it provides the user
organizations and the latter’s stakeholders
and customers
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.
12. To get energy saving
results from LOW – COST
energy saving measures
13. The implementation of
an EnMS is NOT a
project!
The use or operation of
the EnMS is NOT a
project!
Every organisation will
be different
› Different complexity
and scale
› Different approach to
change
management
› Different culture
› Different speeds of
action
15. • Without the top
management commitment,
the EnMS will not succeed!
• The top management
controls
priorities
authorities
resources
• The top management must
be engaged and visible!
15
16. Is the top management
really comitted?
Will they support the
system?
This is a decision point!
Will they make the
necessary resources
available (technical,
financial and human)?
17. Set the scope and
boundaries of the EnMS
Establish energy policy
Allocate resources
Appoint management
representative
Approve formation of energy
management team
Communicate importance of
energy management
Ensure objectives, targets,
and appropriate ENPIs are
established
Consider energy
performance in long-term
planning
Ensure measurement and
reporting of results
Conduct management
reviews
17
18. Management
commitment
Not just a signature!
Define scope of
EnMS
Appropriate to scale
Commitment to
continual
improvement
Make resources
available
Framework for target
setting and
management review
Towards achieving energy savings!
19. The above are required for
each individual involved in
the EnMS.
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
20. 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
audit?
System Optimization
Renewable energy options
Are there legal or other
requirements?
Develop baselines & EnPIs
Set objectives and targets
Action Plan
21. 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
22. 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
what new instruments are
required
• Each new instrument
should be able to justify
its cost with installation
cost
• Electricity & liquid flow
meters can be good
value
• Gas flow meters tend to
be expensive (steam,
compressed air, etc)
23. Examine the whole
system and not
individual components
Establish user
requirements and
specification
Examine opportunities
with use
Examine opportunities
with distribution.
Develop a list of all
potential ideas
Select items for
implementation
• Prioritisation
Plan and manage
their implementation
24. Each SEU has
operating parameters
which affect its energy
use
These need to be
identified, quantified,
recorded and
communicated,
monitored &
controlled
Examples:
› Compressed air -
Pressure , pressure
drops
Refrigeration- delivery
temperature,
condensing
temperature
,evaporator &
condenser approach
temperatures
25. 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
To be aligned with the
review of training needs
› It additionally checks
operating & maintenance
procedures
27. 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
29. Monitor &
Measure
•Monitor = passive data acquisition: utility meters, panel
meters
•Measure = active data collection: sub-meters, data
loggers
Energy
Performance
•Use M&M data to determine SEU performance
•Calculate efficiency, specific energy or input per unit
output
Operational
Control
• Is SEU energy performance as expected?
• Are controls working?
• How can they be improved?
30. Conduct Life Cycle Analysis: Purchasing & Lifetime Costs
If purchases affect significant energy use (singular) notify
suppliers evaluation partly based on energy performance
Designate how energy use over the lifetime of the product,
equipment or service will be assessed for purchases that have
significant impact on energy performance
Significant energy use
Objectives and targets
Past improvement efforts
Maintenance of energy system
31. In the design of new, renovated or modified,
facilities, equipment, systems & processes
that can have a large impact on energy
performance ,consider
opportunities for energy performance
improvement
operational control
Include energy performance evaluation
results in procurement activities, including
specification & design
Record design results
32. Check Operations
• Check operator records
• Check maintenance records
• Equipment checking
Check the system
• Is everyone doing what is
required?
Check Performance
• Check EnPIs
• Check trends and costs
Check progress
• Against plans
35. Independent review of part or all of the EnMS
To determine if the following are meeting the EnMS requirements
Plans
Activities
Procedures and processes
Is the EnMS effective in improving energy performance & operating
as intended?
Is it achieving its objectives?
Does the EnMS meet the requirements of a standard if certification is
being sought for ISO50001?
An essential part of continuous improvement
36. 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?
37. Ongoing Activities
Training
Communication
Operational Control
Procurement
Energy Efficient Design
Action Plans
Checking
• EnPIs
• Progress
• EnMS
SUSTAIN & INCREASE
PROFITS!
38. Solution or technology
based approaches?; or
Project based ; or
With corporate
sustainable energy
management program
with action plans, clear
targets & strategies?
Notes de l'éditeur
We embrace changes or we will be struggling or out of the business
So much clear benefits-why are we still holding our actions?
Easier to measure and verified? Yes!
basic components in energy management system
Note: This was moved from the end of the presentation from version 1 to this version.
This is NOT a project this is a management system.
To follow the proposed way to do it with not so much flexibility to avoid confusion
Denmark is among the best now but they were taking some time to plan too
Other example- Japan
Both keep improving in the implementation
NOTE: It is important to remember that the basic EnMS requirements for management responsibility (for top management and the management representative) go across the elements of the Plan-Do-Check-Act framework. This is not reflected in this graphic, but in the “Connections” slides that follow.
Management Role (graphic)—Management has extensive responsibilities in the EnMS. Key elements of management’s role include setting the strategic direction for the organization’s energy management activities and ensuring that results are measured and reviewed and based on those results, appropriate actions taken to ensure the effectiveness of the EnMS and the achievement of continual improvement in energy performance.
Without top management commitment, the EnMS will fail!—Top management controls organizational priorities, resource allocations and the designation of authority. If top management is not on board, then the EnMS will not happen.
Top management must be engaged and visible—The EnMS is designed to drive energy management into daily business operations. If top management does not go beyond “talk the talk” to “walk the talk” then employees can perceive the EnMS as the latest “flavor of the day” that will eventually fade away. Visible involvement and leadership by top management is crucial to employee buy-in and participation.
Question for discussion: What projects have you done in the past that didn’t have Senior Mgt. Commitment and support and what issues or difficulties did you run into?
To summarize, top management demonstrates its commitment to support the EnMS and its effectiveness by meeting these responsibilities. These responsibilities establish the organization’s strategic direction for energy management and continual improvement and engage management in actions related to Plan, Do , Check and Act.
Significant energy uses have connections to other parts of the EnMS. Once a significant energy use is identified the organization must address:
Objectives, targets and action plans related to the SEU
Competence, training and awareness
Operational control of the SEU
Monitoring, measurement and analysis
This slide shows explicitly the relation between monitoring and measurement and operational control. Operational controls are intended to establish and effect optimal performance of significant energy uses. To determine if controls are achieving the desired result, SEU operation must be monitored and measured so that performance can be analyzed. If performance is as expected, then we can deduce that the operational controls are having the proper affect. If performance is not as expected or has deteriorated then the controls are not having the desired affect on either operation or maintenance. This may be a signal that controls need to be re-evaluated and possibly improved.
If purchased services, products or equipment can have an impact on significant energy use, the suppliers must be informed that purchasing is partly based on energy performance. Note that significant energy use is singular. This indicates the service, product or equipment is not necessarily a specified significant energy use in the EnMS but does use a relatively large amount of energy.
For energy products, equipment and service that are expected to have a significant impact on energy performance, criteria are established for evaluating the energy use, consumption and efficiency of that product, equipment or service over its operating lifetime. Energy performance is defined by the key characteristics. Examples of items that could require energy evaluation for procurement include:
Significant energy use – E.g. a boiler system or its components may require an energy evaluation associated with procurement
Objectives and targets – The equipment, products or services associated with meeting objectives and targets.
Past improvement efforts – Objectives and targets that have been met and the procurement activities associated with maintaining performance levels.
Maintenance of energy system – SEUs must incorporate planned maintenance activities and the EnMS must be maintained IAW operational criteria. The equipment, products and services associated with maintenance may require energy evaluation.
When designing new, renovated or modified, facilities, equipment, systems and processes that can have a large impact on energy performance consider opportunities for energy improvement. Is there equipment that is more energy efficient available? Can the process be designed such that less energy is required? Can the building be constructed so it is more energy efficient? Also consider operational control to determine if controls can be implemented that will help to reduce energy consumption e.g. automatic controls on a boiler to control air/fuel ratio or procedures for regular checking process parameters to ensure control limits remain in tolerance. Record the results of the design activity.
Highlight the importance of the ongoing activities once the initial PDCA has been completed. The items above become the day to day operation that continue indefinately.
Highlight the importance of the ongoing activities once the initial PDCA has been completed. The items above become the day to day operation that continue indefinately.