Rhode Island Convention Center • Providence, Rhode Island
The Value of Managing Energy UseThrough ISO 50001
Track 10, Session 8: Greater Energy Savings through meeting the ISO 50001 requirements
Paul ScheihingU.S. Department of Energy
August 2016
Energy Exchange: Federal Sustainability for the Next Decade2
Energy Efficiency: Cost‐Effective Carbon Reduction
Reduce Before You Produce!
Reducing energy use, energy efficiency, is the least‐cost resource option to reduce carbon emissions, compared to other clean energy alternatives.
The least‐cost forms of energy efficiency are operations and behavior, often low or no cost actions.
But your energy use needs to be managed!
Source: American Council for an Energy‐Efficient Economy, The Best Value for America’s Energy Dollar: A National Review of the Cost of Utility Energy Efficiency Programs, 2014. /research‐report/u1402
Levelized Costs of Electricity Resource Options for Utilities
Energy Exchange: Federal Sustainability for the Next Decade3
Don’t React to Energy Use…
Source: UNIDO 2010
Energy Exchange: Federal Sustainability for the Next Decade4
…Manage Energy Use
Adapted from: Kahlenborn et al. (2012), based on Lackner & Holanek (2007)
Company implementation of an energy management system
Senior management commits to EnMS
Initial savings from low cost investments
Business as usual
Identify, prioritize, and implement systematic, no/low-cost energy savings
Strategically invest to maximize energy savings
Continuous Improvement
Additional savings from capital improvements
Becomes company culture
Capital Investments(e.g., buying energy-efficient machines)
Energy Exchange: Federal Sustainability for the Next Decade
Energy & cost savings over time
Elevates and integrates energy into normal business systems,as has happened for safety & quality
Involves staff from the Board room to the facilities staff: Organizational change in culture
Energy Management Systems (EnMS)
Project approach
Systematic energy management leads to continual improvements in energy and cost performance
An EnMS establishes a framework for industrial plants; commercial, institutional,and governmental facilities; and entire organizations to manage energy
Energy Exchange: Federal Sustainability for the Next Decade6
ISO 50001–Energy Management Systems (EnMS)
International standard that draws from best practices around the world. Developed with input from 56 countries, many countries now adopting it as a national standard.
Light blue text represents new data‐driven sections in ISO 50001 that are not in ISO 9001 & ISO 14001
ISO 50001 specifies requirements for establishing, implementing, maintaining and improving an EnMS.
Transparent, data‐driven, verifiable
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ISO 50001 Conformant Plants Outperforms Peers
Savings at certified facilities greater on average compared to non‐ISO facilities:• 3M: 62% greater over 3 years: 18 ISO 50001 certified sites across 7 countries; 2 US SEP, 1 Korea SEP certified; 257 non‐ISO50001• Schneider Electric: 65% greater over 4 years: 20 ISO 50001 certified in North America; 16 US SEP certified; 30 non ISO50001
Energy Exchange: Federal Sustainability for the Next Decade
Clean Energy Ministerial (CEM) Energy Management Campaign: “Drive to 50001”• Worldwide goal of 50,001 facilities certified to ISO 50001 by 2020 (up from
~12,000 currently)• The US is among the 9 governments and 10 private sector companies and
partners that pledged concrete actions to use ISO 50001 as a transparent mechanism to make progress toward climate and energy goals.
North American Climate, Clean Energy, and Environmental Partnership• US, Canada and Mexico to set a regional common target by 2017 for ISO
50001 uptake contribution to “Drive to 50001”
US‐China dialogue on ISO 50001• Cooperation of ISO 50001 implementation approach and sharing of
measurement and verification protocol
US Energy Management (ISO 50001) Commitments
Energy Exchange: Federal Sustainability for the Next Decade
EXISTING: ISO 50001 & Superior Energy Performance (SEP)
DOE ISO 50001 and SEP certification with 3rd party verification of energy improvement
40+ SEP certified US facilities including 4 hotels
Working with wastewater cohort on SEP
DOE long involvement in ISO 50001 development
DOE Offerings on ISO 50001
NEW: ISO 50001 Ready Recognition
Create a path to self‐declaration to ISO 50001 conformance
DOE recognition of ISO 50001 self‐declaration
DOE eGuide being revised to assistfacility energy managers through the process and evaluate their facilities’ energy data
Qualified Energy Savings consistent with utility/Clean Power Plan best practices
Consistent with SEP and utility Strategic Energy Management M&V
Energy Exchange: Federal Sustainability for the Next Decade
US DOE Approach for ISO 50001
QualifiedEnergySavings
QualifiedEnMS
DOE recognition (compliant with utility programs and EPA Clean Power Plan)
DOE recognition of ISO 50001 and SEP readiness
“Desk audit” of Energy Savings
“Self declared” ISO 50001
DOE recognition of SEP certification
ISO 50001Ready
CALCULATEStep 1
CALCULATE IMPLEMENTStep 2
IMPLEMENTOptional Step 3Optional Step 3
CERTIFY
Certification by Market
NEW DOE Resources Existing DOE Program
Energy Exchange: Federal Sustainability for the Next Decade
DOE eGuide Tool to Support ISO 50001
Version 3.0 COMING Fall 2016 (starting beta testing now)Establish your ISO 50001 conformant energy management system
eGuide users: • 3M• Volvo Trucks• Harbec
DOE eGuide: Your map and tools needed along the way Free step‐by‐step toolkit to create EnMS
consistent with ISO 50001 structure
Includes sample plans, templates, communications
Develop process and verification for “claimable” energy savings
Central role for potential “registry” function
Transferable tool for partner co‐branding
See www.energy.gov/eguide
Energy Exchange: Federal Sustainability for the Next Decade
eGuide tool: “Qualified Energy Savings”
Qualified Energy Savings – Key elements• Protocol to show energy performance annually, single fuel or
whole facility (top‐down regression analysis) based on industry best practices
• Interoperable with EPA’s Portfolio Manager data collection• “Desk Audit” protocol for remotely checking energy data results• DOE recognizes energy savings due to improvement projects,
requires no third‐party analysis, no additional cost• Allows for “registry” function of facilities to track facility savings
Energy Exchange: Federal Sustainability for the Next Decade
eGuide tool: “ISO 50001 Ready”
ISO 50001 Ready – Key elements• “TurboTax” style tool uses Q&A format to lead facility teams
through the requisite steps toward ISO 50001 conformance• Online tutorials and linked resources will be available to
illustrate and assist with each step of the energy management system process
• DOE will recognize ISO 50001 self‐declaration
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Superior Energy Performance® (SEPTM)
SEP is a DOE certification program that verifies energy management excellence and sustained energy savings.
iStock photo: 16418416
SEP is ISO 50001 plus:
Deeper, sustained savings at less cost through robust tracking and measurement with advanced tools
Credible, third‐party verification by ANSI‐ANAB accredited entity that market can reward supply chains, utilities, and carbon trading
National recognition by U.S. DOE identifying sustainability leaders
Verified energy performance improvementVerified energy performance improvement
ISO 50001 certificationISO 50001 certification
SEP Certification
Energy Exchange: Federal Sustainability for the Next Decade
The Verified Results ISO 50001 Conformance
Through DOE’s Superior Energy Performance… • Achieving up to $1 million in annual savings• Significant savings from operational improvements with no capital investment• Reducing carbon emissions, with third‐party verified energy performance
improvement• Savings found to be almost double corporate business as usual
Energy Exchange: Federal Sustainability for the Next Decade16
ISO 50001 Benefits Facilities of All Sizes
Annual energy spend > $2 millionLess than 1.5‐year payback
Some sites may have the strongest business case
Those with an annual energy spend < $2 millionLess than 2‐year payback
Source: Development of an Enhanced Payback Function of the Superior Energy Performance Program, LBNL, 2015.
Even a small facility saved $50K+ a year from operational energy cost savingsLess than 2.5‐yr payback
Source: HARBEC case study
www.energy.gov/eere/amo/business‐case‐sep
Energy Exchange: Federal Sustainability for the Next Decade17
SEP Certified Facilities and Verified Energy Performance Improvement
Brockville, Ontario Canada 21.4% / 7 yrs
Aberdeen, SD 11.0%
Hutchinson, MN 10.7%
Cynthiana, KY 6.9%
Cordova, IL 5.7%
Decatur, AL 5.2%
Prairie du Chien, WI 5.2%
Columbus, IN 16.8%
Whitakers, NC 12.6% / 2 yrs
Detroit, MI 32.5% / 10 yrs
Smyrna, TN 17.7%
Bethlehem, PA 17.0%
Washington, DC 16.5%
Ontario, NY 16.5%
Dunedin, FL 12.2% / 2 yrs
Wilson, NC 15.1% / 10 yrs
Gaithersburg, MD 8.5%
Cheswick, PA 7.6%
Carlisle, PA 5.7%
Saanichton, BC Canada 30.6%
Smyrna, TN 23.1%
Clovis, CA 16.7%
Seneca, SC 15.6%
Peru, IN 24.9% / 10 yrs
Costa Mesa, CA 23.4%/15 mo’s
West Kingston, RI 20.0%
Columbia, MO 13.3% / 1 yr
Apodaca, Mexico (Monterrey 2) 11.3%
Hopkins, SC 10.2%
Tijuana, Mexico 10.2%
Cedar Rapids, IA 8.8%
Apodaca, Mexico (Monterrey 3) 7.8%
Lexington, KY 6.9%
Lincoln, NE 6.5%
Rojo Gomez, Mexico 5.9%
Washington, DC 15.9%
Honolulu, HI 8.4%
San Francisco, CA 6.3%
Mack Trucks, Macungie, PA 41.9% / 10 yrs
Dublin, VA 28.4% / 10 yrs
Hagerstown, MD 20.9%
Last updated: July 7, 2016Improvement over 3 years unless stated otherwise
Energy Exchange: Federal Sustainability for the Next Decade
Annual Cost Savings
“SEP verification provides the ability to have proven performance metrics
to quantify actual savings, giving both internal and external
credibility to savings claims.”
Volvo TrucksDublin, VA
2015 study of 10 SEP‐certified facilities:
Average 12% reduction in energy costs within 15 months of starting to implement SEP
Saved over $430,000/year on average from low/no cost operational improvements
Company Facility Annual Savings Payback
CumminsRocky Mount Engine Plant, Whitakers, NC facility $716,000 11 months
General Dynamics Scranton, PA facility $956,000 6 months
NissanSmyrna, TN facility – initialcertification $938,000 6 weeks
NissanSmyrna, TN facility –recertification $748,000 5 weeks
Volvo TrucksDublin, VA facility – initialcertification $866,000 4 months
Energy Exchange: Federal Sustainability for the Next Decade19
Contact info
Paul ScheihingTechnology Manager, Technical Assistance
Advanced Manufacturing OfficeUS Department of [email protected]
1‐202‐586‐7234
energy.gov/eere/amoenergy.gov/eere/amo/ta
Learn more:http://energy.gov/ISO50001
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Enroll today to gain access to resources, such as program updates, tips, and phone support
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Federal ISO 50001 pilot
• Recruiting Federal facilities/sites to pilot ISO 50001• Goal: ISO 50001 self declaration; certification not required• eGuide tool and technical assistance/training provided• Possible Executive Order – Alternate Compliance Path• Starts in early 2017• Contact Brad Gustafson, FEMP;
[email protected] use: “ISO ‐ Alternate Compliance Path” in email subject line.