Industrial Energy Management and the Emerging ISO 50001 Standard

Industrial Energy Management and the Emerging ISO50001 Standard

Rob DussaultSchneider ElectricIndustry NOW Express

2Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012

Agenda

1 The Energy Dilemma

2

3

From Power Distribution to the Smart Grid

Solutions in Energy Management-

EcoStruxure


The energy dilemma is here to stay

Energy demandBy 2050Electricity by 2030

CO2

emissions to avoid dramatic climate changes by 2050

The facts The need

Source: IEA 2007


The Drivers:

+78% over 14 years….

+83% over 6 years!

~7B today….

To ~9B ….

Global GDP Growth




CO2


The facts The need

Source: IEA 2007




CO2


The facts The need

Source: IEA 2007

Frequent power outages

Rising energy prices

Increased Emissions

Control

Conflicts for resource access

& control


Impact: US Industrials

** US EIA: Energy Price Volatility Table

Energy Price Trends




Energy Price Trends



Energy Price Trends

Schneider Electric -

Industry Business –

Industrial Energy Management and Emerging ISO50001 Standard 100212–

2012



Energy Price Trends




2012



Energy Price Trends

What’s happening to Energy Prices Post-

Recession?




2012


Post-Recession Price Trends

**annualized from 2009 proportion: http://www.eia.doe.gov/cneaf/electricity/epm/table1_1.html*NYMEX forecast, using 50% probability table

+150% in 4years

US Natural Gas Price Forecast*

-3% / year**

***

***http://www.eia.gov/energy_in_brief/renewable_electricity.cfm

+3% / year**

http://www.eia.doe.gov/cneaf/electricity/epm/table1_1.html



Average Power per Capita(Watts per Person)

50

200 275

700 775 850

1 450

0

2 00

400

600

800

1 000

1 2 00

1 400

1 600

India Mexico China EU Russia Japan USA

Comparing % US Energy Consumption with % Population




2012




50

200 275

700 775 850

1 450

0

2 00

400

600

800

1 000

1 2 00

1 400

1 600






50

200 275

700 775 850

1 450

0

2 00

400

600

800

1 000

1 2 00

1 400

1 600


USA Industrials Hyper-Sensitive to increases in Energy Prices !




Fuel Oil1 %

Electricity2 9%

Other1 4%

Natl Gas5 5 %

Coal1 %

Forms of Energy

Consumed

Example: Iron/Steel Mills



Other1 1 %

Process Heating

43%

Machine Drive46%

Share of Electrical Energy Consumed

Fuel Oil1 %

Electricity2 9%

Other1 4%

Natl Gas5 5 %

Coal1 %

Forms of Energy

Consumed




Other1 1 %

Process Heating

43%

Machine Drive46%

Share of Electrical Energy Consumed

90% of energy consumed is in the PROCESS !

Fuel Oil1 %

Electricity2 9%

Other1 4%

Natl Gas5 5 %

Coal1 %

Focus of Energy Managers

Forms of Energy

Consumed



The solution is a combination of cleaner generation and efficiency

Source: World Energy Outlook 2009, OECD / IEA

●Over 50% of CO2

emission abatement will be from end use efficiency

World energy-related CO2 emissions abatement

Stabilize greenhouse emissions to 450ppm




2012


How to Increase supply and Decrease emissions? Efficiency counts triple!

Coal100 units 35 units 33 units

1 unit saved at point of use

3 units of primary energy not consumed


Other Drivers for Efficiency

• Minimize Risks

• Regulation

• Disruption

• Employee Retention

•Emerging Talent

• Public Relations

•Green Branding

Beyond Energy Costs and The Environment:


Agenda

1 The Energy Dilemma

2

3

From Power Distribution to the Smart Grid

Solutions in Energy Management-

EcoStruxure


Transmission Commercial & Industrial

Residential

Distribution

The Jurassic Grid old-style power distribution

CentralisedGeneration

Industry

Building

Datacenter

•

Central production adapting to demand variation

•

Top-down energy flow

•

Production / consumption balance done by integrated utility companies

•

Rather passive usersSchneider Electric -



2012


Transmission Commercial & Industrial

Residential

Distribution

Active energy management is about being smart grid ready

CentralisedGeneration

Industry

Building

Datacenter

Electric Vehicles & Energy Storage3

RenewableEnergyPlants

DecentralisedGeneration

1

Demand / supply mgt : Active Energy EfficiencyEnergy visibilityEnergy control & optimisation

2

Communication and software at all levels of the “Smart Grid”

4




2012


Passive Energy Efficiency

Low consumption devices, insulation material, power

factor correction

Fix the basics2

Find out what the challenge is… Energy audit& metering

1

Active Energy Management

Optimise through automation &

regulation

Monitor, maintain, improve

Solutions in :Industrial Automation,building management,

power management, lighting control

Metering, monitoring and consulting services, EM analysis

software

3 4

Jurassic Energy Management Techniques




factor correction

Fix the basics2


1



regulation





software

3 4



Active Energy Management: The fastest way to save on energy, curb CO2 emissions and reduce operation cost



factor correction

Fix the basics2

Find out what the challenge is… Energy audit& metering1



regulation





software

3 4


Supervision

Applies to all Facility Types

Supervision

Process& Machinesmanagement

Buildingmanagement

IT / ServerRoom management

Power management

Security management

Energy & AdvancedServicesEnterprise portal

Supervision


Productivity●

Maximize output●

Improved workforce utilization & performance

Combining Energy Data for Active Energy Management

Efficiency●

Up to 30% energy savings●

Capex

& Opex

reduction

Safety●

Critical power●

Process control●

Safety systems (SIL*)

Interoperability and openness

to third party systemsSimple Integration

Plant energy management

MES & Information management

Plant supervision

Process Automation

Machine control

Motor control

Electrical distribution

Power monitoring & control

Security

Access control

Critical Power


Not all Energy Management Dashboards are the Same!

Control-Level

Instantaneous readings, operator alarms, idle state control

Single-Site Operations

Hourly data, process inputs, correlation with process variables

Multi-Site OperationsDaily data, correlation with production count, site-by-site benchmarking

Enterprise-LevelMonthly data: Purchasing records, efficiency projects, sustainability metrics

Demonstration: Enterprise Dashboard

Resource Advisor

Demonstration-Production Energy Optimization

Production Energy Optimization


Key Takeaways•The Energy Crisis is significant AND relevant to US Manufacturers—now is the time to act

•Industrial Efficiency alone must contribute 50% of the Solution

•Traditional audit and fix the basics approach targets only 10% of the consumption

•A comprehensive active energy management system gives visibility and context for continuous improvement—

like your financial controls

An introduction to ISO 50001


●

Develops standards for industry●

ISO 9001 –

Quality Management Systems●

ISO 14001 –

Environmental Management Systems

–

108% year-over-year adoption growth rate

●

Standards are widely accepted

International Organization for Standardization

Worldwide Adoption of ISO 14001

0

5,000

10,000

15,000

20,000

25,000

1995 1996 1997 1998 1999 2000

1 year after ISO50001 implementation:915 sites certified……matching adoption rate of ISO140001


●

Standard for Energy Management Systems

●

EnMS

vs. EMS

●

EnMS

refers to a management system that meets the requirements of ISO 50001

●

An Energy Management System (EMS) refers to a software that enables energy optimization by use of temperature setbacks, occupancy controls, or other control functions

What is ISO 50001?


●

ISO 50001 is intended to Improve Energy Performance through activities like:●

Creation and achievement of energy performance goals

●

Tracking energy performance indicators

●

ISO 50001 officially launched in June of 2011 with Schneider Electric’s World Headquarters “The Hive”

as the first certified site, globally.

ISO 50001

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Schneider Electric –

2012


●

LEED

●

Pertains to the physical characteristics of the building and the

installed conservation measures

●

ISO 50001

●

Concentrates the management policies and procedures to generate efficient operation in the years to come

How is ISO 50001 different from LEED?


●

The Energy Management System (EnMS) receives the certification●

Client defines the scope and boundary for the EnMS●

An entire corporation●

A segment or group of facilities●

A single facility or campus●

A portion of the facility or campus●

A “light bulb”

What Can Receive ISO 50001 Certification?


●

SEP was released in early 2012

●

ISO 50001 certification is a requirement

●

Offers four sectors

●

Industrial

●

Commercial

●

Transportation

●

Utility

Superior Energy Performance

A GRADING system for Performance Improvement5%=Silver, 10%=Gold, 15%=Platinum


●

Facilitates a detailed study of significant energy consumers●Uncovers far more than a traditional energy audit

●Encourages process experts to reevaluate process in detail

●

Guides the energy expert and process experts to reach optimal process parameters

●

Sets up a robust management and documentation system that can be highly

leveraged for other benefits

●

Reinforces corporate brand as one that is sustainable and environmentally responsible

Benefits of ISO 50001


●

Initial Investment

●

Dedication of internal resources to enable and maintain

●

Capex investment for certification

●

Establishing C-Level Engagement

●

Not mandated

●

Too new to show case studies for savings

Challenges

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2012


Establish an Energy Baseline

Anatomy of the standard

Establish an Energy Policy

Energy Review

Legal Requirements

Establish Energy Performance

Indicators (EnPIs)Energy

Management Action Plan

Control of Documents

Operations Control

Evaluation of Compliance

Internal Audits

Noncomformities, Correction, and

Prevention

Management Review

Control of Records

Documentation

CommunicationMonitoring,

Measurement, Analysis

Implementation

Competence, Training and Awareness

Design

Procurement of Energy Services

Click on individual requirements to learn more

Plan Do Check Act


ImplementationOVERVIEW

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●

Planning Session: determine the Energy

Management Team

●

Implementation: 5 Phases-#1 Gap Analysis

#2 Facility Energy Review

#3 EnMS

Construction

#4 Readiness Review and Internal Audit

#5 ISO Certification Audit

●

6 – 12 month Process

Implementation Process

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Phase 1 – Gap Analysis●

Determine which current practices can

be adopted to meet the standard

●

Develop an implementation plan

●

Determine Phase 3 required effort

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Phase 2 – Energy Review

●

Conduct utilities analysis

●

Identify Significant Energy Users (SEUs)

●

For each SEU

●

Develop Energy

Conservation Measures

●

Create metering plan

●

Identify operating parameters


●

Build procedures for a fully functional system

●

Provide awareness & training

●

Ensure energy efficiency targets have a plan for achievement

Phase 3 – EnMS Construction

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Phase 4 – Readiness Prep

●

Second Gap Analysis to ensure all requirements are

met

●

Conduct an Internal Audit

●

Hold Management Review

●

Review Internal Audit Results

●

Review Energy Performance Indicators (EnPI)

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●

Stage 1 Audit

●

Higher level audit to ensure

readiness for Stage 2

●

Stage 2 Audit

●

Ensure the EnMS meets

the intent of the standard

●

Deeper dive into procedures

●

Present corrective actions for major and minor findings

Phase 5 – Certification Audits

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2012


●

Main addition is the Superior Energy Performance

Indicator (SEnPI) used for qualification

●

Determine appropriate variables affecting SEnPI

●

Calculate SEnPI

for a 4 or 11 year time span

●

Update SEnPI

annually

SEP Add-on

©


2012


Case Study


●

ISO 50001 certified EnMS●

Awaiting SEP Audit●

Will qualify for SEP Platinum with 18% reduction

Smyrna, TN Plant


●

Paint line Results (Significant Energy User)●

VFDs on washer pumps●

Turned off IR ovens (10% of gas use)●

Hook burn-off temperature set to 1,500 degrees when 1,200 degrees would suffice

●

Other Benefits●

Drying ovens were being left on at night●

New HVAC units were not commissioned properly●

Procurement specifications did not require high efficient equipment

Smyrna, TN Plant


Standard Says


The standard outlines the process of creating an effective energy policy which includes defining planning inputs, performing an energy review (analyzing energy consumption, identifying areas of significant consumption, and indentifying opportunities for improving energy performance) and

defining planning outputs (EnPI, targets and objectives).

Establish an Energy Policy

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The organization should develop, record, and maintain an energy review. The methodology and criteria used to develop the energy review is documented. To develop the energy review, the standard states that the organization must:

1. Analyze energy use and consumption based on measurement and other data;2. Based on the analysis of energy use and consumption, identify

the areas of significant energy use;

3. Identify, prioritize and record opportunities for improving energy performance.

Energy Review

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The organization should identify, implement and have access to the applicable legal requirements and other requirements to which the organization subscribes related to its energy use, consumption and efficiency.

Legal Requirements

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Establish an Energy Baseline

An assessment of Current Energy consumption, procurement practices, conservation measures

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Identify EnPIs

appropriate for monitoring and measuring its energy performance.

Establish Energy Performance Indicators (EnPIs)

• Wh per Widget• kWh per gallon• kWh per ton

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Energy Management Action Plans should:

1.Discuss the hardware to be used (metering and structures on site);2.Use a software platform to create targets and view site assessments to determine

what can be improved;3.Discuss “train the trainer”

using consumption worksite information;4.Discuss current energy action plan output, framed in “plan do check act”

language.

Energy Management Action Plan

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It is recommended that the organization use the action plans and

other outputs resulting from the planning process for implementation and operation.

1.Establish energy performance indicators, energy objectives and

targets that are measureable and have timelines for achievement;

2.All persons working on this project are trained and educated properly;3.Appropriate records are maintained;4.Anyone working on behalf of the organization is aware of the importance, their

roles, the benefits, and the impact of this standard.

Implementation

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The organization is responsible for making sure that any people working for or on its behalf are competent on the basis of appropriate education, training, skills, or experience.

A representative must ensure that appropriate records are maintained and that all employees are aware of their roles and the benefits and impact of the International Standard.

Competence, Training and Awareness

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Communicate the EnMS

and EnPIs

throughout the organization, market and other stakeholders

Communication

EnPI

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Energy Policy

~~~~~~~~~~~~~~~~~~

1Q Results~~~~~~~~~~~~~~~~~~

Employees

Shareholders

Market

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The organization should establish, implement and maintain information, in paper, electronic or any other medium, to describe the core elements of the EnMS

and their interaction.

Documentation Back to menu


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Control of Documents

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Energy Procedures

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The organization needs to identify and plan operations and maintenance to ensure that they are carried out under specified conditions by means of the following:

1.

Establishing and setting criteria for the effective operation and maintenance of significant energy uses, where their absence could lead to a significant deviation from effective energy performance;

2.

Operating and maintaining facilities, processes, systems and equipment, in accordance with operational criteria;

3.

Appropriate communication of the operational controls to personnel working for, or on behalf of, the organization.

Operations Control

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The organization should consider energy-performance improvement opportunities in the design of new, modified, and renovated facilities, equipment, and systems.

Design

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When procuring energy services, products, and equipment that can

have an impact on significant energy use, the organization should inform

suppliers that procurement is partly evaluated on the basis of energy performance.

Procurement of Energy Services

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A company needs to define and periodically review its measurement needs. Key characteristics of its operations that determine energy performance need to be monitored, measured, and analyzed at planned intervals. Key characteristics include at a minimum:

1.

Significant energy uses and other outputs of the energy review;2.

The relevant variables related to significant energy uses;3.

EnPIs;4.

The effectiveness of the action plans in achieving objectives and targets;5.

Evaluation of actual versus expected energy consumption.

Monitoring, measurement, analysis

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At planned intervals, the organization needs to evaluate compliance with legal requirements and other requirements to which it subscribes related to its energy use and consumption.

Evaluation of Compliance

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The organization is expected to conduct internal audits at planned intervals to ensure that the EnMS:

1.

Conforms to planned arrangements for energy management including

the requirements of this International Standard;

2.

Conforms with the energy objectives and targets established;3.

Is effectively implemented and maintained, and improves energy performance.

Internal Audits

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The organization should address actual and potential nonconformities by making corrections and taking preventive action.

Noncomformities, correction, and Prevention

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The organization will establish and maintain records to demonstrate conformity to the requirements of its EnMS

and the energy performance results achieved. Additionally:

•

The organization defines and implements controls for the identification, retrieval and retention of records;

•

Records remain legible, identifiable, and traceable to the relevant activity.

Control of Records

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At planned intervals, top management should review the organization's EnMS

to ensure its continuing suitability and effectiveness. This includes having a review on a scheduled basis and reviewing best practices. The outputs from the management review should include any decisions or actions related to changes in the energy performance, energy policy, EnPIs

and another other changes to the objective or the allocation of resources.

Management Review

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Industrial Energy Management and the Emerging ISO 50001 Standard

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