Mechanisms for Industrial
Energy Management
Michaela Martin, Oak Ridge National Lab
James Quinn, U.S. Dept. of Energy
Program Name or Ancillary Text
Rio de Janeiro, Brazil
August 10, 2011
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What is Energy Management?
Energy Management
• Is a framework for integrating energy into the existing
management practices of an organization
• Can be based on a national, or international standard such
as ISO 50001- Energy management systems
• It requires that:
– Top management of an organization make a commitment
to continual improvement of their energy performance
– Energy performance improvements are measured and
documented against a baseline
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Ad hoc Approach to
Energy Management…
Source: UNIDO 2010
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Structured Approach
Senior management
commit to program
Costs
+5%
Initial savings
sustained
0
-5%
Housekeeping first – then
investment
-10%
Becomes company
culture
-15%
-20%
-25%
Investment
0
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Years
Source: UNIDO 2010
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Benefits of Energy Management
• Much of the energy efficiency in existing facilities can be achieved
through changes in how energy is managed, rather than through
installation of new technologies
• Effective energy management also provides a context for
management to assess the applicability of new technologies
• Energy management requires an organization to comprehensively
examine its energy use and consumption and to develop a
framework to sustain the change
facilities
equipment
personnel
systems
processes
Scope of an energy management system
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Building the Case for
Energy Management
• Identify Champions:
– Who are the key person(s) that
control needed resources?
– Who is respected by staff within the
organization?
– Who can help you achieve this as a
priority?
• Identify key persons
– Who know the processes
– Who know the facilities
• Develop a risk response
– What are the most common
barriers to long-term programs?
– Who in the organization is likely to
oppose this process?
– Are there resource conflicts?
– What are the competing priorities?
– Who know equipment
– Who know how to help team with
documents, records, and other
management system issues
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Energy Management Efforts
U.S. DOE Efforts to Support Energy Management
The U.S. DOE has supported a series of domestic and international
efforts to help end-users and their organizations manage energy.
• ISO 50001 Energy Management Standard
• ASME System Assessment Standards
• Resources for Supporting Energy Management
• Superior Energy Performance Program
• Global Superior Energy Performance (GSEP) Partnership
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New ISO 50001 Standard
ISO 50001 Energy Management Standard
• Requires organization to establish a baseline, metrics,
energy management team, and system—enabling
systematic achievement of continuous
improvement in energy performance.
• Designed to be used independently, yet can be aligned or integrated
with other management systems (e.g., ISO 9001 and ISO 14001).
• Applicable to all organizations that use energy, including industrial
plants, buildings and other facilities, entire organizations.
• Does not prescribe specific energy performance criteria.
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ISO 50001: Energy
Management System Standard
ISO 50001 provides a framework for industrial
and commercial facilities and organizations to
manage their energy use.
Potential impacts:
• Could influence up to 60% of the world’s energy use
across many economic sectors
Uptake of ISO 50001 will be driven by companies
seeking an internationally recognized response to:
ISO 50001 Launched
• Developed by ISO Project
Committee 242; United
States and Brazil led
effort with the United
Kingdom and China
• Corporate sustainability programs
• 56 countries participated,
13 as observers
• Energy cost reduction initiatives
• Final Draft International
Standard (FDIS) released
March 2011
• Demand created along the manufacturing supply chain
• Future national cap and trade programs; carbon or
energy taxes; increasing market value of “green
manufacturing” / reduced carbon footprint
• Final standard published
in June 2011.
• International climate agreements
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What’s Different About
ISO 50001?
Addresses some practical realities:
• Energy efficiency is not a core business of most organizations.
• Personnel and business priorities change over time.
• As a result, energy efficiency improvements may not be
sustained.
ISO 50001 prepares an organization to:
• Manage future organizational changes in an energy-efficient
manner, while preserving profitability/effective operations
• Evaluate what works for the organization based on hard data
and build on it
• Provide a structure and framework for communicating results
both internally and externally
• Integrate an energy management system into existing
management programs
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Components of an Energy
Management Standard
Typical features include:
1.
2.
3.
4.
5.
Energy policy: top management’s official statement of
the organization’s commitment to managing energy
Cross-divisional management team led by a
representative who reports directly to management and is
responsible for overseeing implementation of the energy
management system
Energy review to assess current and planned energy
use, energy sources, and consumption and identify
opportunities for improvement
Baseline of the organization’s energy use
Energy performance indicators (EnPIs) that are unique
to the company and are tracked to measure progress
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Components of an Energy
Management Standard
6.
Energy objectives and targets for energy performance
improvement at relevant functions, levels, processes, or
facilities within an organization
7. Action plans to meet those targets and objectives
8. Operating controls and procedures for significant
energy uses
9. Measurement, management, and documentation for
continuous improvement for energy efficiency
10. Internal audit of progress to management based on
these measurements
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ISO 50001 Energy
Management (EnMS)
ISO FDIS 50001
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Applying ISO 50001
• Applies to all factors that can be monitored and influenced by the
organization to affect energy use
• Designed to be used independently, yet can be aligned or
integrated with other management systems (e.g., ISO 9001 and
ISO 14001). Applicable to all organizations that use energy
• Can be implemented at the corporate or facility level
• Does not prescribe specific performance criteria or results with
respect to energy
• Needs enabling policies and programs to realize its global potential
• Superior Energy Performance is such an enabling program
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What is Superior Energy
Performance?
A market-based, ANSI/ANAB-accredited certification program
that provides industrial and commercial facilities with a roadmap
for achieving continual improvement in energy efficiency while
boosting competitiveness.
Goals:
• Drive continual improvement in
energy performance
• Develop a transparent system
to validate energy performance
improvements and management
practices
• Encourage broad participation
throughout industry
Superior Energy
Performance for industry
will be launched in the U.S.
in 2012.
• Support and build the energy
efficiency market and workforce
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Superior Energy
Performance Strategy
• Foster a corporate culture of
continuous improvement in energy
efficiency
• Use ISO 50001 standard as
foundational tool for energy
management
• Establish a tiered program that
provides an entry point for companies
at all levels of experience with energy
management
• Create a verified record of energy
performance improvement.
• Potentially create value for corporate
energy savings and carbon reductions
in utility, state, regional, national, and
international trading markets
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Getting Superior Energy
Performance Certified
Certification Requirements:
An ANSI/ANAB-accredited Verification Body will conduct a
third-party audit to verify that the following requirements are
met:
1. Energy Management System Conformance to ISO 50001
Energy Management Standard
Superior Energy
2. Energy Performance Improvement
Performance
Single facility ISO 50001
conformance with validated energy
performance improvement
ISO 50001 is a
foundational tool that
any organization can
use to manage
energy.
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ISO 50001
Components in place:
• Baseline
• Policy
• Plan
• Team/Leader
ISO 50001
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Superior Energy Performance
Program Design
The two-tiered approach accommodates:
• Maturity of facility’s energy management program
• Level of external validation desired
• Business climate/cycle
Two Program Tiers
Partner
Certified Partner
Self Declaration
ANSI/ANAB-accredited certification
Criteria
 Conformance to ISO 50001
 Measure and audit energy
performance improvement
Criteria
 Conformance to ISO 50001
 Measure, verify, and certify energy
performance improvement
Performance Levels
 Energy performance
improvement required
Performance Levels
 Energy performance improvement required, minimum
requirements set by program
 Two Pathways Available: Energy Performance or
Mature Energy
Method of Verifying Results
 Self Declaration
Method of Verifying Results
 ANSI/ANAB-accredited certification with on-site visit
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SEP Performance Criteria
for Certification Levels
Performance
Characteristics
Energy
Energy
Performance Performance
Pathway Improvement
Silver
Meets 5%
improvement
threshold over the
last 3 years.
Demonstrates an
Energy
improvement of
Performance
15% or more over
Improvement
the last 10 years.
Mature
Energy
Pathway
Score on
Best
Practice
Scorecard
Includes credits for
energy management
best practices and
energy performance
improvements beyond
15% over the last 10
years.
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Gold
Meets 15%
Meets 10%
improvement
improvement threshold
threshold over the
over the last 3 years.
last 3 years.
Demonstrates an
improvement of 15%
or more over the last
10 years.
 Scores at least 35  Scores at least 61
and up to 60 out
and up to 80 out of
of 100 total points
100 total points for
for Best Practice
Best Practice
Scorecard
Scorecard
 Minimum of 25
points required for
the energy
management best
practices.
Platinum
 Minimum of 25 points
required for the energy
management best
practices and 10 for
energy performance.
Demonstrates an
improvement of 15%
or more over the last
10 years.
 Scores at least 81
out of 100 total
points for Best
Practice Scorecard
 Minimum of 25 points
required for the
energy management
best practices and 10
for energy
performance.
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Getting Superior Energy
Performance Certified
Resources to Help Facilities Prepare for Certification
Standards & Protocols:
Certified Practitioners
ISO 50001
Energy Management Standard
Certified Practitioner in Energy
Management Systems
System Assessment
Standards
Certified Practitioners in
[Type] System
Measurement & Verification
Protocol
SEP Lead Auditors
SEP Performance Verifiers
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System Assessment Standards
Assessment standards for specific energy systems
provide immediate opportunities for energy
performance improvement in many facilities. Use of the
standards is not required for certification but will help
plants define a pathway for achieving energy savings.
Available Standards:
•Pumping
•Compressed Air
•Steam
•Process Heating
Standards cover:
• Organizing an assessment
• Conducting an assessment
• Analyzing the data collected and developing
efficiency recommendations
• Reporting and documentation
Purchase standards and guidance documents
from ASME for $35 (print or digital):
• http://www.asme.org/kb/standards#des=EA
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Roles within
Superior Energy Performance
Industry
Government
• Drives strategy through U.S.
Council for Energy Efficient
Manufacturing
• Facilitates industry collaboration to
develop Superior Energy
Performance program: fund
program development activities
(e.g., standards development, pilot
projects)
• Pilots elements of Superior
Energy Performance prior to
program launch
• Adopts the Superior Energy
Performance program by
getting plants certified to
ANSI/ANAB-accredited
Superior Energy Performance
program
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• Cost shares Superior Energy
Performance program start-up
• Leverages Superior Energy
Performance program to deploy
federal energy programs (e.g.,
Save Energy Now LEADER)
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U.S. Council for
Energy-Efficient Manufacturing
• Acts as champion of U.S. industry
in pursuing national energy
efficiency goals.
• Seeks to improve the energy
intensity of U.S. manufacturing
through a series of initiatives.
• Guides development of Superior
Energy Performance.
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Benefits to Companies
• Recognition
‒ Publicly recognized as leader in sustainable use of
energy resources (local and financial community)
‒ Customers may grant preferred supplier status
• External financial incentives
‒ Energy efficiency credits (electric utility & others)
‒ Potential carbon credits (state, region, and national)
• Systematic framework for continuous improvement
‒ Consistent with ISO 50001 energy management
and ASME system assessment standards
‒ Provides tools and resources to assist
implementation and validation of sustained energy
performance improvement
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Industry and Construction stock CD 01030FRL
Creatas Power & Energy CD 005776
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Market Benefits
Benefits in the Industrial and Commercial Energy Efficiency Market
• Utilities
‒ Empowers a facility-wide, systems-oriented approach
‒ Helps justify industrial and commercial energy efficiency program
investments, including permanent operational changes, to public
utility commissions
• ESCOs
‒ Builds greater credibility with industrial and commercial customers
and a stronger business case for providing third-party energy
efficiency services and off-balance sheet capital investments
• Supply Chains
‒ Provides a proactive turn-key program for major OEMs and retailers
to request their suppliers to meet the program requirements
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Energy Management
Demonstration Projects
DOE’s Industrial Technologies
Program is conducting State/Regional
Energy Management Demonstration
Projects. ITP has funded 23 state
awards starting in 2009 to help
industry save energy.
Energy Management Demonstration Goals:
• Provide Save Energy Now LEADER Companies
with a roadmap to achieve ambitious goals to
reduce industrial energy intensity.
Kick-Off Dates
• Test the elements of Superior Energy
Performance.
• 2010: Southeast, Midwest, and
Mid-Atlantic regions
• Build energy management expertise at the
regional, state, and plant level by showcasing
lessons learned and best practices.
• 2011: California, Colorado, and
Texas (second round) and
Northwest region
• 2009: Northwest region
• Broaden energy savings throughout the nation.
www.eere.energy.gov/industry/energymanagementdemonstrations/
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Demonstration Approach
1. The state or region identifies an
appropriate demonstration plant
based on provided guidelines
2. Facility and consultants receive three
face-to-face training sessions
3. Consultants receive monthly training
(15-month implementation schedule)
4. Consultants coach facility to
implement energy management
system in conformance with ISO
50001
5. Facility and consultants hold quarterly
review with facility management and
Energy Management Demo team lead
6. Facility applies for Superior Energy
Performance as early as 18 months
after initial training.
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PA RT IC I PA NT S
Demonstrations
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
3M
Alcoa
Allsteel
Amcor PET
Bridgestone Tire
Cook Composites & Polymers
Cooper Tire
Didion Milling, Inc
Dow Chemical
Eaton
General Dynamics
Gray Harbor Paper
Haynes International
JR Simplot
Kenworth Trucks
Neenah Foundry Company
Nissan
Schneider Electric
Spirax Sarco
Traco
Volvo
World Kitchen
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Texas Pilot Project, 2008-2010
DOE worked with the University of
Texas at Austin to pilot Superior Energy
Performance in Texas facilities:
• Field tested elements of Superior
Energy Performance
• Conducted audits using ANSI MSE
and M&V Protocol
• Established the first ANSI/ANABaccredited Verification Body for
Superior Energy Performance
• Certified the first plants to
Superior Energy Performance
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First facilities certified to
Superior Energy
Performance
Performance
Level
Cook Composites and Polymers
Co. Houston, TX
Gold
Freescale Semiconductor, Inc.
West Austin, TX
Silver
Owens Corning
Waxahachie, TX
Silver
Union Carbide, subsidiary of the
Dow Chemical Co. Texas City, TX
(manufacturing facility)
Platinum
Union Carbide, subsidiary of the
Dow Chemical Co. Texas City,
TX (energy systems facility)
Silver
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Value of Superior Energy
Performance
Superior Energy Performance provides…
• A facility-wide strategic approach to continual energy performance improvement.
• Market-recognized validation of effective energy management.
Third-party transparency validates energy performance improvement.
• SEP M&V Protocol
– Offers a standardized methodology for validating
energy performance improvements.
– Supports project-level M&V.
• Supports a more flexible approach by public utility
commissions in validating expenditure of rate payer funds.
SEP builds energy management expertise in the workforce.
• Certified Practitioner credentialing offers an opportunity for states and utility
representatives to increase energy management expertise.
• Prepares states and utilities to respond to growing interest in energy management.
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Energy Management
System Toolkit
• Framework for implementing a
comprehensive energy
management system
• Step-by-step implementation
guidance with tools
• Web-based and self-paced
The Self-Paced Module is located at:
https://save-energy-now.org
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Energy Management
System Toolkit
DOE will work with utilities and other partners to deliver
energy management training to end-users.
Four-Part Energy Management Webinar Training series
•
Helps facilities implement ISO 50001 and
Superior Energy Performance requirements.
•
Supports ITP Energy Management Tool Suite.
•
Available in October 2011.
ITP Energy Management Tool Suite
• Identifies savings opportunities
and tracks implementation
• Basic and advanced levels:
− Steam
• Tools include:
− Process Heating
– Quick PEP
− Pumps
− Fans
– Self-Paced Module
− Compressed Air
– Project Savings Tracker Module
− Motors
– Carbon Footprint Calculator
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Global Superior Energy
Performance (GSEP)
• GSEP is conceived as an international network of national
government agencies, national-level certification
programs, and other public/private sector organizations
that will catalyze continuous energy performance
improvements in commercial buildings and industrial
facilities of all performance levels.
• The GSEP partnership includes Canada, the European
Commission, France, India, Japan, Korea, Mexico,
Russia, South Africa, Sweden, and the United States.
• GSEP was announced in July 2010 at the Clean Energy
Ministerial, which convened 25 energy ministers from 20
countries and the European Commission.
• Clean Energy Ministerial provided a forum for like-minded
countries to take specific steps forward to promote clean
energy technologies.
• See www.cleanenergyministerial.org/gsep
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GSEP Objective and
Organizational Structure
GSEP
GSEP objective is to
reduce global energy
use by:
• Encouraging
industrial facilities
and commercial
buildings to pursue
continuous
improvements in
energy efficiency
• Promoting
public‐private
partnership
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CERTIFICATION
WORKING GROUP
(Lead: U.S.)
POWER
WORKING GROUP
(Lead: Japan (P))
CHP
WORKING GROUP
(Lead: Finland)
STEEL
WORKING GROUP
(Lead: Japan)
COOL ROOFS
WORKING GROUP
(Lead: U.S.)
CEMENT
WORKING GROUP
(Lead: Japan)
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GSEP Partner Countries
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Certification Working Group
The Certification Working Group is developing a network of coordinated,
national‐level certification programs to encourage public, educational, and
industrial facilities and commercial buildings to pursue continuous
improvements in energy efficiency. The GSEP certification process will
recognize facilities that meet three main criteria:
(1) adoption of an energy management system that conforms with the
forthcoming ISO 50001 standard,
(2) achievement of a designated minimum rate of energy performance
improvement and
(3) receipt of third‐party validation of energy performance improvement
and conformance to ISO 50001.
Industrial GSEP Pilot Participants: 3M, Nissan, Dow Chemical
Commercial GSEP Pilot Participants: Cleveland Clinic, Grubb & Ellis
Company, Marriott, Target Corp., Walmart
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Draft GSEP Certification
Strategic Objectives, June 2011
Shared Strategic Objectives Defined
During GSEP Meeting, 6/20/2011
1. Energy Management. Increase the implementation of
energy management in the industrial and buildings sectors
to improve energy efficiency and energy performance on
an ongoing basis.
2. Measurement and Verification. Measure and verify
energy performance improvements on a consistent basis.
3. Qualified Workforce. Build a qualified workforce of
professionals with expertise in the fields of energy
management, energy efficiency, and measurement and
verification.
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Thank you
James Quinn
U.S. Dept. of Energy
Michaela Martin
Oak Ridge National
Laboratory
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