Continuous Improvement of Energy Performance:

How policy makers can support ISO 50001

implementation for the industry
Pilot Program for implementation of Energy Management Systems

Program Outline Presentation

Klaus Carl
Presentation Chapters

Energy Management Systems Standard SEP

Pilot Program
– Overview and timetable
– Target groups and eligibility
– Incentives
– Consultancy assistance
Superior Energy Performance I

The Superior Energy Performance (SEP) program is a market-based,

ANSI/ANAB-accredited certification program

ISO50001 certification is required for SEP certification

Whereas ISO 50001 certification doesn’t require actual energy savings, SEP does

Three levels of performance: Silver, Gold and Platinum

Superior Energy Performance II
Certification Requirements

Superior Energy
Performance
Single facility ISO 50001 conformance
with validated energy performance
improvement
ISO 50001 is a ISO 50001
foundational tool Components in place:
ISO 50001
that any
Baseline
organization can
Policy
4
use to manage
Plan
energy.
Team/Leader
Superior Energy Performance III
Levels of certification

Performance Characteristics Silver Gold Platinum

Energy
Performance Meets 5% energy Meets 10% energy Meets 15% energy
Energy
Improvement performance improvement performance improvement performance improvement
Performance
threshold over the last 3 threshold over the last 3 threshold over the last 3
Pathway
years. years. years.

Mature Energy Pathway Energy Performance

Improvement Demonstrates an energy Demonstrates an energy Demonstrates an energy
performance improvement of performance improvement of performance improvement of
15% or more over the last 10 15% or more over the last 10 15% or more over the last 10
years. years. years.

Score on Best Practices •Meets a score of at least 35 •Meets a score of at least 81

Scorecard and up to 60 out of 100 total out of 100 total points for
points for Best Practices •Meets a score of at least 61 Best Practices Scorecard
Includes credits for energy Scorecard and up to 80 out of 100 total •Minimum of 25 points
management best practices •Minimum of 25 points points for Best Practices required for the energy
and energy performance required for the energy Scorecard management best practices
improvements beyond 15% management best practices. •Minimum of 25 points and 10 for energy
over the last 10 years.. required for the energy performance.
management best practices
and 10 for energy
performance.
Pilot Program

Overview and outline

Target groups and eligibility

Milestones and incentives

Timetable
Why does the Utility do that?

Obligation under state law

Marketing material that that is beneficial to utility, e-mails, presentations, flyers,
etc.

Create image of utility as a future oriented company, taking care of customer's
needs, being on the forefront of sustainable energy developments with the
ultimate goal of retaining customers, winning new customers and showing a
proactive sustainability culture.

Building up better customer relations

Building up better knowledge in the field of Energy Management Systems as well
as related standards.

Empowers a company-wide, systems-oriented approach

Helps to justify industrial and commercial energy efficiency program investments,
including permanent operational changes, to public utility commissions.

Generates future projects
Pilot Program
Overview

Creation of this new program to help industrial facilities prepare

- for ISO 50001 and/or SEP certification , or
- for ISO 50001 adaptation

The pilot is available to a limited number of participants who meet the eligibility
criteria and overall pilot goals.

Incentives are additional to any offered by other programs.

Application via website or by e-mail
Target Group and Eligibility Criteria
Mandatory requirements

Industrial, producing organizations

Support at the officer level of a dedicated energy policy and implementation of
energy saving strategies as integral part of organization's management and
operations

A senior manager is/will be appointed as Energy Manager

Not already be working towards certification
Target Group and Eligibility Criteria
Consumption requirements

Either Customer of utility with electricity consumption > 2,000 MWh/year and
interested in achieving ISO50001 and/or SEP Certification (certification path)
If a gas-only customer, then customers using 20,000 mcf annual or greater are
required to pursue the certification path. If an electric and gas customer, then the
electric thresholds apply.

Or customer with electricity consumption 300-2000 MWh/year and interested in
the streamlined program (streamlined path)

Committed to invest time and resources to structurally lower energy consumption
and related costs, with goal of achieving at least 5% savings in each of the first 3
years
Outreach Steps and Materials
Stage Materials Sample Activities

Building Flyer Phone existing contacts

Website E-mail –single or blast
Awareness
Network at meetings, or other events
Cold call from target list

Generating Factsheets Follow up calls to likely prospects

testimonials Follow up on referrals from Account Managers
Interest

standards Initial meeting/call with energy manager

resources and links

applicable laws

Creating Desire Outreach Presentation Presentation to energy manager, COO

Tools Education, sample tools/materials

EnMS checklists Begin to evaluate eligibility

Factsheet: EnPIs Identify other relevant programs

14001 migration

Taking Action Application Scoping meeting with energy manager

Intake Checklist Limited technical assistance
Either accepted or referred to other program
Pilot Project Outline
Steps, milestones, incentives for large industries.

Assistance Assistance ISO 50001 Assistance SEP

Outreach Intake
Phase I Phase II certification Phase III certification

Customer Customer Customer Customer

Customer. If accepted,
submits submits submits submits Proof
Submits utility drafts
Energy EnMS Proof of ISO of SEP
Application TA plan
Action Plan Documents Certification Certification

Utility
Customer & Utility Utility Utility
prepares
utility sign reviews for reviews for reviews for
Readiness
MoU completion completion completion
Report

Milestone Milestone Milestone Milestone

#1 #2 #3 #4
cert.& cert.&
certification certification
streamlined streamlined
path only path only
path path
Pilot Project Outline
Steps, milestones, incentives for small and medium sized industries.

Assistance Assistance ISO 50001 Assistance SEP

Outreach Intake
Phase I Phase II certification Phase III certification

Customer Customer
Customer. If accepted,
submits submits
Submits utility drafts
Energy EnMS
Application TA plan
Action Plan Documents

Utility
Customer & Utility
prepares
utility sign reviews for
Readiness
MoU completion
Report

Milestone Milestone
#1 #2

cert.& cert.&
streamlined streamlined
path path
Milestones and Benefits

Certification Path Streamlined Path

Incentives Incentives
Milestones Achieved
(Required for >2,000 (Designed for 300-
MWh/yr) 2,000 MWh/yr)

1. Energy Action Plan approved $7,500 Up to $ 5,000

1. Certification Readiness Report for Energy Efficiency
$7,500 investments
issued

1. ISO 50001 certification received $7,500 n.a.

1. Superior Energy Performance
$7,500 n.a.
certification
Incentive Milestones and Requirements

The program requires successful implementation of at least 70% of the agreed
number of measures, with at least 90% of the total savings value identified.
Progress monitoring occurs after 6, 12 and 18 months, unless otherwise specified
in Technical Assistance Plan. Total investments in equipment or installation work
should reach at least $5,000 in the first 12 months of the program.

Customers have to submit documentation at each milestone, which will be

reviewed by program staff. The utility has the ultimate determination on whether
the documentation provided sufficiently demonstrates successful completion in
order to authorize incentive payment.
Technical Assistance Offered

A customized technical assistance plan will be developed for each participant
focusing on the highest priority areas.

Activities that are provided include:

– EnMS assessment, including organizational and process gaps, measurement and IT
scheme gaps
– Training, Energy Policy, Energy Performance Indicators, EnMS Action Plan, EnMS
handbook
– Energy audit with energy baseline and savings potentials
– Energy Review, including organizational and process gaps, measurement and IT
scheme gaps, energy consumption benchmarks
– Consultancy on EnMS implementation and operation
– Certification Readiness Check

Review progress and reconfirm commitment to proceed every 3 months

Program EnMS Training and Coaching

Company staff will be trained at the start of the implementation phase. There is
two training units, one for the Energy Team and one for the Energy Manager. For
time efficiency reasons both trainings may be combined to one session.

The training will complete the knowledge and understanding of EnMS, giving
insight to the standards, their requirements and their implementation.

The training will coach the participants how to use the tools and templates
provided in the context of the pilot program.

The training should include an interactive tour through the company helping to
understand the energy situation.

At the end of the training in more detail it is discussed what the consultancy
assistance should look like and how the company can organize its own activities.
Program EnMS Workshop
To prepare for a successful attainment of milestone 1, a workshop will be one month
after the gap analysis was issued by the consultant.

In the workshop

The results of the Energy Audit and Energy Review will be discussed

Customer progress will be checked (performance improvement)

Coaching on the long list of measures will be provided

Consultancy on the use of program tools and templates will be provided

It will be explained what documents are required from the customer, to be submitted to the
consultant for the Certification Readiness Check

Coaching on further progress up to milestone 2 will be provided

The workshop is a one day event. All internal stake holders of the customer should be
involved, including the CEO. The number of participants will typically be up to around
10.
Milestone Documentation
Milestone #1: Energy Action Plan

Addresses the following, as consistent with the ISO 50001 standard, at a minimum:
1. Energy Policy and Energy Performance Indicators with benchmarks.
2. Summary table of how items in the gap analysis were addressed.
3. Intended communication, reporting, reviewing, monitoring, and training processes.
4. Individual Action Plans for each technical, organizational and procedural measure
intended to be executed.
5. Overview of Action Plans (addressing measures executed in the past, measures
intended, and not intended to be realized) with summarized key indicators
6. Savings targets
7. Other documentation that demonstrates the current status of the EnMS (will vary
by customer).
8. Confirm commitment to certification for customers on Certification Path
Milestone Documentation
Milestone #2: Certification Readiness Check

Includes, as consistent with the ISO 50001 standard, at a minimum:

1. Energy Action Plan as described in Milestone #1 above
2. Summary table of how items in the Energy Review analysis were addressed
3. Action Plans implementation updates since Energy Action Plan was submitted
4. All other EnMS activities executed since Energy Action Plan was submitted
5. Savings balance, i.e. an overview of the overall and incremental energy savings
attained to date through EnMS development, differentiating the savings that would
have occurred anyway (e.g. projects previously planned)
6. Other documentation not specifically mentioned here that demonstrates the
current status of the EnMS (will vary by customer)
7. Readiness statement: Confirm commitment to certification for customers on
Certification Path
Milestone Documentation
Milestones #3&4: Certifications Achieved

Customer will provide copies of the proof of certification that is supplied by

certifying body for ISO 50001 or SEP certification, as appropriate.
Thank you for your attention!
Questions?

www.dnv.com
Contact presenter Klaus Carl

47 years, lives in Cologne, Dipl. Ing. Electrical Engineering

With DNV KEMA since May 2008, business lines Clean Fossil Power, since
January 2011 Sustainable Services, based in Bonn office

Klaus Carl
Senior Consultant
DNV KEMA Energy & Sustainability
KEMA Consulting GmbH
Kurt-Schumacher-Str. 8
53113 Bonn

Telefon: +49 228 44690-33

Fax: +49 228 4469099
Mobil: +49 174 3092152
E-Mail: [email protected]