Establishment of a Sustainable Energy

Management System

Pierre Cazelles

Regional Project Advisor - AEMASDirector Partnerships Asia, International Copper Association

National Energy Efficiency Conference 2011, Singapore, 24-25 May

About International Copper Association

International non-profit organization

Leading organization for promoting copper worldwide

Operating budget (including co-funding): $80 M – 2010

31 offices in 24 countries on 6 continents

10 offices in Europe, offices in India, Singapore, Thailand,

China, Japan, Australia

Most important program: sustainable electrical energy (60%

of total budget): electric motors, energy management,

transformers, solar water heating, RE, etc.

1. Status of Energy Management

Situation Consequence

Decision-making process in end-users

in Asia: top-down approach

There is a need for ambitious energy

policy and proper decision-making

process with regard to energy

“Energy Manager” is ONLY a technical

function

“Energy managers” cannot get

support/ commitment from their

board

As of today, low level of

implementation in end-users because

lack of awareness and/or interest in

EE&C

Energy matters must become a topic

of decision at management board

level

Background

1. Status of Energy Management

• Energy usually represents 5% of total

production cost: improving EE by 10% has

little impact on total cost savings

• The “traditional” energy manager is a

technical person with little if no decision

power when it comes to securing budget

• All training courses on energy

management focus on the technical

aspects: no training curriculum on the

MANAGEMENT aspects

Barrier analysis

Cost savings is NOT a driver

No management

commitment

Little managerial skills in-

house

1. Status of Energy Management

Without a proper Energy Management System, there is no

sustainability in EE measures implemented.

1. Status of Energy Management

Preliminary conclusions

• Absence of energy management system

makes efforts in EE not sustainable

• Lack of managerial skills and decision-power

among “energy managers”

• Lack of interest for EE and EnMgt among

industries

2. ISO 50001

• Targeted publication: Q3 2011

“ISO 50001:2011 specifies requirements for establishing,

implementing, maintaining and improving an energy

management system, whose purpose is to enable an

organization to follow a systematic approach in achieving

continual improvement of energy performance, including

energy efficiency, energy use and consumption.”

2. ISO 50001 – draft version

4.1 General requirements

4.2 Management responsibility

4.2.1 General

4.2.2 Roles, responsibility and authority

4.3 Energy policy

4.4 Planning

4.4.1 General

4.4.2 Energy Profile

4.4.3 Energy Baseline

4.4.4 Energy performance indicators

4.4.5 Legal and other requirements

4.4.6 Objectives, targets and action plans

4.5 Implementation and operation

4.5.1 Competence, training and awareness

4.5.2 Documentation

4.5.3 Operational control

4.5.4 Communication

4.5.5 Design

4.5.6 Purchasing energy services, goods and energy

4.6 Checking performance

4.6.1 Monitoring, measurement and analysis

4.6.2 Evaluation of legal/other compliance

4.6.3 Internal audit

4.6.4 Nonconformities, corrective, preventive and

improvement actions

4.6.5 Control of records

4.7 Review of the energy management system by top

management

4.7.1 Inputs to management review

4.7.2 Outputs from management review

2. ISO 50001 pros and limitations

+ ISO’s reputation will encourage many industries to adopt ISO 50001 to gain better

public image

+ ISO 50001 standard provides detailed specifications on the elements of an Energy

Management System

- No guidelines on HOW to establish and manage the EnMgt system: rely on

external consultants?

- “ISO 50001:2011 does not prescribe specific performance criteria with respect to

energy.”:

- No requirements on energy efficiency improvements

- No requirements related to budget and investment

- “ISO 50001:2011 is applicable to any organization wishing to ensure that it

conforms to its stated energy policy and wishing to demonstrate this to others,

such conformity being confirmed either by means of self-evaluation and self-

declaration of conformity, or by certification of the energy management system

by an external organization.

Pros

Limitations

3. Energy Management Gold Standard

“System of certification based on

excellence in energy management”

Training and certification of

Energy Managers

• Training curriculum focused

EXCLUSIVELY on managerial

aspects: how to establish and

manage and EnMgt system

• Two levels of certification:

Certified EnMer and

Professional EnMer

Certification of companies

• Based on ISO 50001 with additional

requirements

• Three levels of certification to

progressively drive towards EnMgt best

practices

3.1 Approach to EnMgt

Technical team

Report to

Management

Board

Report to Certified Energy

Manager

3.2 Certification of Energy Managers

• Empowers industries with in-house capabilities to establish and manage

the EnMgt system

• Enhances the professional standing of Energy Managers

• Training curriculum based on 220-page Energy Management Workbook:

- Role of the energy manager

- How to define the energy policy

- How to appraise the energy management performance

- How to set up and manage: energy baseline, EEI, Energy Accounting Centers, Energy

Management Committee, Energy Management Working Procedures, Investment Appraisal for

Energy Efficiency Projects, Human Resource Development in Energy Management System,

Documentation in Energy Management System

- How to establish Energy Target & Plan, including organizing Energy Audit & Analysis,

Measurement & Verification

- How to integrate the Energy Management System into Business Practice (working ,monitoring

and reporting procedures, other management standards, …)

- Project management and investment

- Energy Management performance review

3.3 Certification of companies

• EnMgt System in place according to ISO 50001

+ Certified Energy Manager (CEM)

+ Motivation plan for the personal involved in the EnMgt system

+ Budget allocated for investment in EE measures

+ Procurement policies and internal investment criteria “EE-friendly”

Validity: 2 years

� Cannot be renewed: obligation to achieve 2 star

� In case 2-star certification cannot be achieved within 2 years, the 1-star

certificate is withdrawn.

� Companies can re-apply for 1-star after 3 years minimum from the date

of withdrawal

� Companies can apply directly for 2-star anytime.

3.3 Certification of companies

Same as 1 star + (either one of the following):

• Overall EEI improves by 5% (over 2 years)

• Overall energy consumption decreases by 5%

• EEI improves by 1% on year-on-year basis over past 3 years

• EE measures representing at least 50% of the total energy saving potential of recommended

measures (internal audit) are implemented and achieving at least 1% overall energy savings

• EE measures representing at least 50% of the total energy saving potential of recommended

measures (external audit by AEMAS certified auditor and approved by senior AEMAS experts)

and achieving less 1% overall energy savings are implemented (include cases where NO EE

measures are implemented)

• Fuel-switching project implemented (using NG or RE)

• Projects involving self-generation of electricity implemented

• One RE project implemented

• Investment in 5 new EE technologies

Validity: 2 years

� Renewal gives 3 stars

� If cannot be renewed: downgrading to 1-star (if criteria met) with only 1 year validity

3.3 Certification of companies

Open only for 2-star certified companies

Same criteria as for 2-star + Energy Manager must be PEM (not

CEM), i.e. renewal of 2-star provides 3-star

Rationale: a company who can meet 2-star certification 2 times in a

row, that is over 3-4 years, demonstrate their sustainable and pro-

active approach to EnMgt. The 3-star aims to convey this message.

� Validity of 3-star: 2 years

� Renewal confirms sustainability

� In case a company cannot renew, it is downgraded to 1-star (if

criteria are met), with 1-year validity only.

3.4 Energy Management Gold Standard vs. ISO 50001

Corporate energy policy

Energy Management system in place and

documented

Trained and certified energy manager

Demonstration of budget spending

Demonstration of EE measures implementation

Verified improvement of EEI

Budget management

Motivation

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Energy Management System in

place, budget allocatedReal EE improvement; Energy

Management System is sustainable

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ISO 50001

4. ASEAN Energy Management Scheme

Implemented

under the

Coordinated by

Implementing partners in each ASEAN country

Technical support

Co-funded by

Endorsed by Ministries of Energy from the 10 ASEAN member countries

4. Status

• AEMAS structure established in each country

• Local trainers accredited in each country

• 150 energy managers already trained and

certified – another 2,800 to be trained and

certified until 2014

• 15 companies under certification process (1-

star)

Contact

Pierre Cazelles

Director – Partnerships Asia

International Copper Association

Room 1205, 12F, Canway Bldg

66 Nan Li Shi Rd.

100045 Beijing China

Tel: (86) 159-0100-7376

Email: pierrecazelles@copper.org.cn

www.aemas.org

Disclaimer:This document has been produced with the assistance of the European Union. The contents of this document are the sole responsibility of the authors and can in no way be taken to reflect the views of the European Union.