Thursday, September 3, 2009

Energy Management – A priority call to the Contemporary Corporate

This week, I had a chance to get introduced to the very new energy management standard - BS EN 16001:2009 Energy Management Systems - Requirements with guidance for use. This standard has been published on 31st July 2009.

BS EN 16001 represents the latest best practices in energy management building upon existing national standards and initiatives. The standard specifies the requirements for an EnMS to enable an organization to develop and implement a policy, identify significant areas of energy consumption and target energy reductions.

Introduction of this standard is quite significant in the present global scenario. Let me share my views:

1. Energy now a day has become so important to an organisation as well as to the society; it was much needed to pay some more attention towards it. Though organisations were reducing energy through their own cost cutting initiatives or under ISO 14001, which was not really a focused approach. Two very vital resources - Energy and Water was getting lost within the paradigm of pollution. The EnMS will rightly serve the purpose to prioritize energy on the corporate agenda.

2. Organisations were conducting Energy Audits – few for improvement and many to comply with legal requirement. The reports could not find a place on the CEO’s agenda & get dumped on the EHS manager’s table. Now at least Energy audit will find some relevance and the isolation will hopefully converted to Plan – Do - Check – Act of improvement.

3. Organisations who are working towards Green House Gas emission reduction can relate their activities in a more harmonized way with Energy Management System.

4. Corporate Social Responsibility (CSR) is on a top priority agenda of many corporate. Certification to EnMS will strengthen the organization’s claim of Energy Management in their Sustainability Reporting.

5. Last but not the least, it paves the way to the forthcoming ISO 50001 on Energy Management which is expected to launch during December 2010.

Features:

Key features of the standard include:

1. The need for an Energy Policy that shall be a statement of commitment towards achieving improved energy performance.

2. The need to identify and review Energy Aspects; elements of an organisation's operation that can affect energy use.

3. The need to produce Energy Objectives and Targets, which it will aim to achieve through use of Energy Management Programs.

Energy management encompasses a full range of issues, including those with strategic and competitive implications.

Demonstration of successful implementation of this Standard can be used by an organisation to assure interested parties that an appropriate energy management system is in place.

The standard is meant to help organizations save on energy costs and reduce their greenhouse gas (GHG) emissions.

It is intended to apply to all types and sizes of organizations and to accommodate diverse geographical, cultural and social conditions. This standard applies to the activities under the control of an organization. This standard for energy management systems can be used independently or integrated with any other management system. To facilitate its use, the structure of this standard is similar to the structure of ISO 14001.

Benefits

The overall aim of this European standard is to help organizations establish the systems and processes necessary to improve energy efficiency. This should lead to reductions in cost and greenhouse gas emissions through systematic management of energy. This standard specifies requirements for an energy management system to enable an organization to develop and implement a policy and objectives which take into account legal requirements and information about significant energy aspects.

Who can go for it?

BS EN 16001 applies to any organization that wishes to:

a) Improve energy performance in a systematic way

b) Establish, implement, maintain and improve an energy management system

c) Ensure that it conforms with its stated energy policy

d) Demonstrate such conformance to others

e) Seek certification of its energy management system by an external organization

f) Make a self-evaluation and self-declaration of conformance with the standard

Contents:

BS EN 16001 is based on a methodology known as plan-do-check-act. The requirements necessary to implement the standard include:

Plan: Identify energy aspects and legal obligations; establish energy objectives and targets.

Do: Assign resources and responsibilities; raise organizational awareness and provide training; communicate internally and externally; establish documentation; implement operational controls.

Check: Establish the monitoring of energy management programs; evaluate compliance with legal obligations; identify and manage non-conformance; control records; carry out internal audits of the energy management system.

Act: Review of energy management systems by management resulting in potential changes.


Structure of the Standard:


Foreword

Introduction

1 Scope

2 Terms and definitions

3 Energy management system requirements

3.1 General requirements

3.2 Energy policy

3.3 Planning

3.3.1 Identification and review of energy aspects

3.3.2 Legal obligations and other requirements

3.3.3 Energy objectives, targets and programme(s)

3.4 Implementation and operation

3.4.1 Resources, roles, responsibility and authority

3.4.2 Awareness, training and competence

3.4.3 Communication

3.4.4 Energy management system documentation

3.4.5 Control of documents

3.4.6 Operational control

3.5 Checking

3.5.1 Monitoring and measurement

3.5.2 Evaluation of compliance

3.5.3 Nonconformity, corrective action and preventive action

3.5.4 Control of records

3.5.5 Internal audit of the energy management system

3.6 Review of the energy management system by top management

3.6.1 General

3.6.2 Inputs to management review

3.6.3 Outputs from management review

Annex A (informative) Guidance on the use of this European standard

A.1 General requirements

A.2 Energy policy

A.3 Planning

A.3.1 Identification and review of energy aspects

A.3.2 Legal obligations and other requirements

A.3.3 Energy objectives, targets and programme(s)

A.4 Implementation and operation

A.4.1 Resources, roles, responsibility and authority

A.4.2 Awareness, training and competence

A.4.3 Communication

A.4.4 Energy management system documentation

A.4.5 Control of documents

A.4.6 Operational control

A.5 Checking

A.5.1 Monitoring and measurement

A.5.2 Evaluation of compliance

A.5.3 Nonconformity, corrective action and preventive action

A.5.4 Control of records

A.5.5 Internal audit of the energy management system

A.6 Review of the energy management system by top management

Bibliography



Future:

One more standard on energy management is also knocking at the door – yes, I am talking about the one from ISO stable – ISO 50001. This will be released during December 2010.

ISO has also identified energy management as a priority area. The work will be carried out in a new ISO committee PC 242 Energy Management. The American National Standards Institute (ANSI) will serve as the committee Secretariat in partnership with Associação Brasileira de Normas Técnicas (ABNT). ISO 50001 will establish an international framework for industrial plants or entire companies to manage all aspects of energy, including procurement and use. The standard will provide organizations and companies with technical and management strategies to increase energy efficiency, reduce costs, and improve environmental performance

ISO 50001 – Management System Standard for Energy

Recently I have come across couple of initiatives like seminars, training programs and conclave on Energy Management. So far, energy management has been a part of ISO 14001 (EMS) or an isolated effort through Energy Audit. Though most of the times, the efforts end up with replacing few lamps to CFL and switching off the ACs and lights when you are not in the room / workplace.

Interestingly, this is the first time, things are happening in a logical and structured manner.
GHG emissions are under scanner and organisations are working to reduce them (along with substantial financial benefits from Carbon Credit in the developing countries). I
SO 50001 - Energy Management Standard is under development and
BS EN 16001 - Energy Management Standard has been released on 31st August 2009.

Let’s start with ISO 50001.

ISO has identified energy management as a priority area meriting the development and promotion of International Standards. Effective energy management is a priority focus because of the significant potential to save energy and reduce greenhouse gas (GHG) emissions worldwide. As per Mr. Alan Bryden, ISO Secretary-General - “The urgency to reduce GHG emissions, the reality of higher prices from reduced availability of fossil fuels, and the need to promote efficiency and the use of renewable energy sources provide a strong rationale for developing this new standard, building on the most advanced good practices and existing national or regional standards.”

In my opinion, this development will initiate a new global approach to systematically address energy performance in organizations – pragmatically addressing energy efficiency and related climate change impacts. The future ISO 50001 will establish a framework for industrial plants, commercial facilities or entire organizations to manage energy. This will be next step of BS EN 16001- 2009. An energy management standard is expected to achieve major, long-term increases in energy efficiency. ISO 50001 implementation is expected to address what the organization does to effectively manage energy resources and performance that is relevant to global standards.

As per the industry analysts, targeting broad applicability across national economic sectors, the standard could influence up to 60 % of the world’s energy use.

The new standard will consider common elements found in all of ISO’s management system standards. This will ensure maximum compatibility with key standards such as ISO 9001 for quality management and ISO 14001 for environmental management.

The project committee is working towards an ambitious schedule and aims to have ISO 50001 ready for publication by the end of 2010.

Background:

Discussions between US experts and the American National Standards Institute (ANSI) led to a formal proposal for ISO to establish a committee on this subject. In February 2008, the Technical Management Board of ISO approved the establishment of a new project committee (ISO/PC 242 – Energy Management) to develop the new ISO Management System Standard for Energy. Early on, the United Nations Industrial Development Organization (UNIDO) recognized industry’s need to mount an effective response to climate change and to the proliferation of national energy management standards. In March 2007, UNIDO hosted a meeting of experts, including representatives from the ISO Central Secretariat and nations that have adopted energy management standards. That meeting led to submission of a UNIDO communication to the ISO Central Secretariat requesting that ISO consider undertaking work on an international energy management standard.

The work will be carried out in a new ISO committee PC 242 Energy Management. The American National Standards Institute (ANSI) will serve as the committee Secretariat in partnership with Associação Brasileira de Normas Técnicas (ABNT). ISO 50001 will establish an international framework for industrial plants or entire companies to manage all aspects of energy, including procurement and use. The standard will provide organizations and companies with technical and management strategies to increase energy efficiency, reduce costs, and improve environmental performance

Content:

The standard is expected to address issue like:

• measuring, reporting, benchmarking energy use improvements.

• assess energy improvement projects impact on GHG emissions.

• create transparency in the management of energy resources.

• evaluate the improvements in implementation of energy efficient technologies.

• validate continuous improvement in energy management.

• promoting a framework for efficient use of energy in the organization.

• helping organizations make a better use of their energy assets.

• helping in procurement practices for energy using equipment and systems.

• emphasis management's commitment to energy use and efficiency.

Future:

Corporations, supply chain partnerships, utilities, energy service companies, and others are expected to use ISO 50001 as a tool to reduce energy intensity use and carbon emissions in their own facilities (as well as those belonging to their customers or suppliers) and to benchmark their achievements.

The future standard will provide organizations and companies with a recognized framework for integrating energy efficiency into their management practices. Multi-national organizations will have access to a single, harmonized standard for implementation across the organization with a logical and consistent methodology for identifying and implementing energy efficiency improvements.

Let’s hope for the best.