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Barriers to implement EE in industry
Policies? There are no mandatory rules or regulations to adopt EE or
reduce GHG emissions
Market conditions? The prices of fuels and electricity are low; no CO2
market; and/or no market recognition from value chain
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Quiz 1 About Energy Management Systems
Question 1 Question 2 Question 3
Why should enterprises What should be improved The ISO 50001 is a?
adopt EnMS ? by adopting an EnMS ?
a) Structured approach to
a) Fuel usage the management of
a) To improve their energy energy use
efficiency b) Electricity usage
b) Voluntary global
b) To reduce costs c) Energy performance management system
standard
c) To increase productivity d) Energy intensity
c) Guide to improve
d) Systematically manage
energy performance
their energy use
d) Technical regulation
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BENEFITS of Energy Efficiency
Organizations 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
then
Why it is not happening?
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BARRIERS to Energy Efficiency
Management focus on production, not on EE
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 EE knowledge exists it very often resides with
individuals rather than with the company/ organization
sustainability risk
Financing
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EnMS Goals
It is all about Continuously
Improving Energy Performance!
Energy
Baseline
Energy
Target
ISO 50001 DEFINITION
(reporting period)
Target
(baseline period)
efficiency (3.8), energy use (3.18) and
energy consumption (3.7)
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EnMS Goals
Ad-hoc Energy Management Approach
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EnMS Goals
Systematic Approach
Senior management
commit to EnMS
Costs
+5% Initial savings
sustained
0
-20%
Investment
-25%
0 Years 3
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What can be achieved by adopting EnMS?
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Energy Use (2003 Base Year)
100
2-3% saving per year 5% saving per year
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90
85
EnMS Investment
80
Certification restrictions
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Source:
Liam McLaughlin,
UNIDO Expert
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2003 2004 2005 2006 2007 2008
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What can be achieved by adopting EnMS?
Management focus
Systematic activity Energy and
Actively managing energy use and costs, Cost Savings
reducing exposure to rising energy costs
Obligation to train and raise awareness
Obligation to provide resources Continual
Improvement
Document savings for internal and external use
(e.g. emission credits, legal reporting requirements)
Reduce GHG emissions without negative effect on
operations Environmental
Continuity through changes of personnel Benefits
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What can be achieved by adopting EnMS?
Most industrial enterprises that have implemented EnMS
achieved average annual energy intensity reductions of
2-3% against 1% reduction of business as usual (IRL, NET,
DEN, SWE, USA)
UNIDO experience:
Average organization-wide energy savings in first 1-2 years
range from 5% to 15%, with little or no capital investments
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EnMS Standards and ISO 50001 Why?
Policy best practice to effectively promote and implement
sustainable EE in industry
Demonstrated market-driven tools to disseminate BAT and BAP
and support their implementation
Increased focus on demand for standards & regulations as tools
in the fight against Climate Change (services, trade,
negotiations, etc.)
Underpinning and catalyzing development or strengthening of
policy and regulatory frameworks (i.e. ISO 14001 experience)
Boosting of IEE market transformation and acceleration of the
adoption of EE technologies and services
Harmonization across countries
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EnMS Standards and ISO 50001 Background
National EnMS standards (as of 2009)
Denmark, Sweden, Ireland, USA, South Korea, Thailand, South Africa, China
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EnMS Standards and ISO 50001 Background
March 2007 - UNIDO Meeting on EnMS in Industry
Recommendation to ISO Secretariat to consider
developing an International EnMS 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 less than 3 years (record
time!)
ISO TC 242 Energy Management (2008)
ISO TC 301 Energy
ISO TC 257 - Evaluation of Energy Savings (2010) management and energy
saving (2016)
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Definitions
Energy Management System (EnMS)
Systematic and structured approach to the management
of energy use
Certification of EnMS
An organization may decide to have its EnMS
certified to a standard (to demonstrate its best
practice to customers, clients and suppliers OR fulfil
a legal or other requirement) Source: UNIDO EnMS Programme
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Quality Infrastructure 1.01
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7,000+ ISO 50001 Global Certifications Sep 2015
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Certificates issued Argentina 14
Brazil 38
Cameroon 0
China 65
Egypt 15
India 443
Indonesia 28
Kazakhstan 35
Mexico 21
Mongolia 0
Myanmar 0
Nigeria 0
Peru 1
Russia 115
Serbia 14
South Africa 7
Sri Lanka 8
Tunisia 0
Turkey 136
UK 853
Ukraine 34
US 80
Uzbekistan 0
Venezuela 1
Source: ISO Survey September 2015
Vietnam 23
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EnMS/ISO 50001 Support standards
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ISO 50001 from pilot to wide dissemination
ISO 50001 will succeed in delivering the expected impact and
benefits to organizations and countries only if it is
implemented properly and widely, if :
Technically sound and effective implementation of EnMS/ISO
50001 depends on the availability of qualified experts/
professionals to assist organizations and enterprises
Key success indicators will be:
the ability to demonstrate to organizations and to the market the
tangible benefits of implementing EnMS/ISO50001
the level of policy support granted and/or regulation attached to the
implementation EnMS/ISO50001
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Quiz 1 About Energy Management Systems
Question 1 Question 2 Question 3
Why should enterprises What should be improved The ISO 50001 is a?
adopt EnMS ? by adopting an EnMS ?
a) Structured approach to
a) Fuel usage the management of
a) To improve their energy energy use
efficiency b) Electricity usage
b) Voluntary global
b) To reduce costs c) Energy performance management system
standard
c) To increase productivity d) Energy intensity
c) Guide to improve
d) Systematically manage
energy performance
their energy use
d) Technical regulation
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INSERT THE TITLE OF YOUR PRESENTATION HERE
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Quiz 2 Policies
Question 3 Question 4 Question 5
The best way to ensure Certification of ISO 50001 An EnMS support policy is
that enterprises have is to successful if
adopted ENMS is
a) Certification of ISO a) Assess conformity a) determine tangible
50001 by accredited against all of the benefits ($, KWh)
Certification Bodies requisites of the
b) Achieves outputs set in
standard
b) Robust adoption of ISO its M&E framework
50001 b) Providing a certificate
c) Has wide sectorial
against a management
c) Third party verification adoption
system implementation
of improved E d) Industries adopt MRV
performance c) Get international
at the facility level
recognition on
d) Ad-hoc management
management practices
system
d) Verification process for
achieving energy
savings
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Target-setting
A. Mandatory:
Where adoption is made mandatory within the goal
of achieving a certain energy intensity target
Challenges
Sectorial targets are divided across facilities
Need for robust mechanisms for target setting, MRV,
Government enforcement and control agencies have capacities
Need for institutional capacities from industries (associations,
chambers, federations) to negotiate and operate
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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
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Training and technical assistance
Government led or government funded programs to
strengthen technical skills in the industrial sector
(University led, through Learning Networks)
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
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Enterprise Recognition Programs
Challenges
Enterprises ability to use the instruments
Market value
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Capacity-building for EnMS implementation
There is a need to have responsible agencies and competent
staff across all aspects of an EnMS promotion policy, whether
there is mandatory enforcement or control or just promotion
of EnMS
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?
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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
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Quiz 2 Policies
Question 3 Question 4 Question 5
The best way to ensure Certification of ISO 50001 An EnMS support policy is
that enterprises have is to successful if
adopted ENMS is
a) Certification of ISO a) Assess conformity a) determine tangible
50001 by accredited against all of the benefits ($, KWh)
Certification Bodies requisites of the b) Achieves outputs set in
b) Robust adoption of ISO standard its M&E framework
50001 b) Providing a certificate c) Has wide sectorial
c) Third party verification against a management adoption
of improved E system implementation
d) Industries adopt MRV
performance c) Get international at the facility level
d) Ad-hoc management recognition on
system management practices
d) Verification process for
achieving energy
savings
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4. Voluntary or mandatory?
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The importance of a Programmatic Context
Before ISO 50001, in countries with national EnMS
standards:
EnMS standards were typically voluntary
Part of larger programs targeted primarily to large industrial plants
and energy consumers
Technical assistance was available (training & expert services)
Offer financial incentives for compliance, usually as part of a target-
setting agreement
Case studies used to publicize benefits
Public recognition was provided for outstanding performers
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The importance of a Programmatic Context
Denmark Vol Yes Yes Yes Yes Yes Yes Yes Lim 60%
Ireland Vol Yes Yes No Yes Yes Yes Yes Yes 25%
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The importance of a Programmatic Context
After the release of ISO 50001:
Clear increase of EnMS policies, programs and best-practices, either
consolidated or introduced voluntary approach still predominant
But
There is wide variability of context between OECD and different
developing regions/economic groups
Past and existing EnMS (and standards) policy and program best-practices
were/are in countries with mature industrial EE policy frameworks and
implementation
In most, if not all, best-practice cases, industry associations and/or
regional/local institutions have played an important role
Non-OECD countries face significant challenges in terms of knowledge
gaps, lack of understanding, governance, human & financial constraints
resources for effectively promote and support EnMS and ISO 50001
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Monitoring and Evaluation of policy effectiveness
Challenge with all policies adopted is to determine how they
contribute towards meeting national targets >> how to monitor
and evaluate the policies that are adopted
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Quiz 3 Stakeholders
Question 7 Question 8 Question 9 Question 10
Who are the key Which is the key What does it mean What is the purpose of
stakeholders to govt. challenge to to be a certified monitoring, reporting
consider when adopt mandatory energy manager? and verification of
analyzing the targets? energy use?
EnMS adoption? a) Having
a) Establishing completed an a) Assessing sectorial
a) Regulator metrics EnMS course energy consumption
(govt.)
b) Certification b) Drafting b) Completing an
bodies regulations accredited b) Complying with
certification regulation
c) Technical c) Controlling and
process (enterprise)
experts enforcing
industries c) Having a lot of c) Check step in the
d) Industries EnMS Deming's cycle
d) Collecting and
experience
analysis data d) Controlling energy
d) Graduating as an performance
energy engineer
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UNIDO EnMS Implementation Programme
Objectives
1. Transfer international best-practices for EnMS/ISO 50001 implementation in
industry to groups of national EE experts
2. Promote and support EnMS and EE implementation in manufacturing
enterprises
3. Catalyze and contribute to the transformation of national market for
industrial energy efficiency services & products
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UNIDO Program on Energy Efficiency
As of June 2016
Operational in 17 countries
Planned activities in 10 countries
Operational
South Africa Philippines
Moldova Egypt
Russia Indonesia
Turkey Iran
Ecuador Ukraine Other donors
Malaysia Colombia Planned Swiss State Secretariat for Economic Affairs
Thailand Macedonia activities UK Department for International Development
Viet Nam Myanmar Government of South Africa
India China Government of Italy
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UNIDO IEE-EnMS-ESO Programme
Operational in 17 countries (as of June 2016)
Decision-makers reached
Enterprises trained EnMS/ESO
Consultants trained EnMS/ESO
2016
Enterprises with EnMS 7,000 +
2012
Annual Energy savings (GWh)
2008 5,000 +
3,000 +
600 +
700 +
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How much energy is 7,000 GWh?
Annual energy
consumption of
1,160,000
EU households Annual energy
production of
CO2 emissions of
1,700 MW wind farm
1,750,000 middle class
cars (running 12,500 km
per year)
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ISO 50001 EnMS UNIDO Experience
WHAT HAS WORKED?
Securing and focusing on initial national champions
Building the enough national consultants EnMS expertise and skills to
ensure successful implementation (long-term coaching and support)
Being prescriptive and providing good guidance but also be flexible and
adaptive
Providing substantial EnMS expert support to companies to keep on track
and monitoring change and progress
Advocating with top management the need for staff training and
competency development
Rewarding change of practices and performances
Identifying the right drivers or catalyst for change
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ISO 50001 EnMS UNIDO Experience
LESSON LEARNT
1. Top management engagement is necessary for EnMS & EE implementation
but it is not always sufficient (personal and social norms can interfere)
2. Cultural context is an important factor in transferring knowledge and
embracing change
3. Cultural context can vary substantially from country to country lessons
learned in a country may not apply or become misleading in others
4. Need to minimize enterprises uncertainty about proposed new scenario
5. Communication and partnership/relationship management are critical
6. ISO 50001/EnMS means CHANGE and it is not about technology and
engineering, but mainly about people, processes and practices ...
for many that Change is going to be bigger and more difficult!
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EnMS/ISO 50001 - Looking ahead
Achieving impact and market credibility
Policy and Conformity assessment frameworks for EnMS/ISO50001
Release of
ISO 50001
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International Context
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EE Targets at different levels
Global
7.3 By 2030, double the global rate of improvement in
energy efficiency
Regional
EU Energy Efficiency Directive (2012): s a set of binding
measures to help the EU reach its 20% energy efficiency
target by 2020
CEM countries (2016): drive to achieve 50001 global
certifications by 2020
WeCommit Campaign (SE4A-2015): pledge to support
SDG7
National
Which of your countries has set targets?
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Conclusions
Achieving impact and market credibility
Policy and Conformity assessment frameworks for EnMS/ISO50001
ISO 50001s success in delivering expected benefits and impact to organizations
and countries will depend on:
1. The availability of competent
professionals to guide and assist
Policy
organizations in implementation
2. Credible demonstration to organizations ISO 50001
and the market of the tangible benefits EnMS
of EnMS/ISO50001
3. The level of policy support granted Conformity
and/or regulation attached to the Assessment
implementation EnMS/ISO50001
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Quiz 3 Stakeholders
Question 7 Question 8 Question 9 Question 10
Who are the key Which is the key What does it mean What is the purpose of
stakeholders to govt. challenge to to be a certified monitoring, reporting
consider when adopt mandatory energy manager? and verification of
analyzing the targets? energy use?
EnMS adoption? a) Having
a) Establishing completed an a) Assessing sectorial
a) Regulator metrics EnMS course energy consumption
(govt.)
b) Certification b) Drafting b) Completing an
bodies regulations accredited b) Complying with
certification regulation
c) Technical c) Controlling and
process (enterprise)
experts enforcing
industries c) Having a lot of c) Check step in the
d) Industries EnMS Deming's cycle
d) Collecting and
experience
analysis data d) Controlling energy
d) Graduating as an performance
energy engineer
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INSERT THE TITLE OF YOUR PRESENTATION HERE
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Part II
Breakout groups
Each group will prepare a plan for their EnMS Scheme for Country A
and Country B
Guiding questions:
How can policy instruments support the introduction of EnMS?
Who are the necessary stakeholders that have to support the
scheme?
What are the minimum institutional requirements and capacities
needed to ensure that EnMS are an effective tool for industry?
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10 key ideas Quiz Answers
Why EnMS?
1) Reasons to adopt EnMS >> systematic improvement of energy performance
2) What is improved? Choosing the right metrics >> energy performance rather
than EE or energy intensity
3) Barriers to adopt EnMS >> unique in each case, but technical are normally the
most challenging
Support policies?
4) Voluntary adoption>> robust adoption rather than certification in earlier
stages and lower cost for SMEs
5) Support schemes with third party verification, such as enterprise recognition
programs have shown positive results, reducing costs for SMEs
6) Monitoring and evaluation of policies >> to show how measures meet the
intangible benefits, but also translate into reduced KWh, t CO2 or USD
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10 key ideas Quiz Answers
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Perceived barriers industry responses
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Thank you for your attention!
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