Presentation - 2016 Energy Exchange

Track 10, Session 8: Greater Energy Savings through meeting the ISO 50001 requirements
The Value of Managing Energy Use
Through ISO 50001
Paul Scheihing
U.S. Department of Energy
August 2016
Rhode Island Convention Center • Providence, Rhode Island
Energy Efficiency: Cost‐Effective Carbon Reduction
Reduce Before You Produce!
Levelized Costs of Electricity Resource Options for Utilities
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
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Don’t React to Energy Use…
Source: UNIDO 2010
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Energy Exchange: Federal Sustainability for the Next Decade
…Manage Energy Use
Senior management commits to EnMS
Initial savings
from low cost investments
Additional savings from capital
improvements
Becomes company
culture
Business as
usual
Identify, prioritize, and implement
systematic, no/low-cost energy savings
Company implementation of an
energy management system
Strategically invest to maximize
energy savings
Capital Investments
Continuous Improvement
(e.g., buying energy-efficient machines)
Adapted from: Kahlenborn et al. (2012), based on Lackner & Holanek (2007)
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Energy Exchange: Federal Sustainability for the Next Decade
Energy Management Systems (EnMS)
An EnMS establishes a framework for industrial plants; commercial, institutional,
and governmental facilities; and entire organizations to manage energy
 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
 Systematic energy management
leads to continual improvements
in energy and cost performance
Energy & cost savings over time
Project approach
Energy Exchange: Federal Sustainability for the Next Decade
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.
ISO 50001 specifies requirements for establishing, implementing, maintaining and improving an EnMS. Transparent, data‐driven, verifiable
Light blue text represents new data‐driven sections in ISO 50001 that are not in ISO 9001 & ISO 14001
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ISO 50001 Conformant Plants Outperforms Peers
Savings at certified facilities greater on average compared to non‐ISO facilities:
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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
US Energy Management (ISO 50001) Commitments
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
Energy Exchange: Federal Sustainability for the Next Decade
DOE Offerings on ISO 50001
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
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 assist
facility 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
NEW DOE Resources
Step 1 CALCULATE
Step 2
IMPLEMENT
Qualified
Energy
Savings
ISO 50001
Qualified
Ready
EnMS
“Desk audit” of Energy Savings
“Self declared” ISO 50001
DOE recognition (compliant with utility programs and EPA Clean Power Plan)
DOE recognition of ISO 50001 and SEP readiness
Existing DOE Program
Optional Step 3
CERTIFY
Certification by Market
DOE recognition of SEP certification
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
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
eGuide users: • 3M
• Volvo Trucks
• Harbec
 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
Energy Exchange: Federal Sustainability for the Next Decade
Superior Energy Performance® (SEPTM)
SEP is a DOE certification program that verifies energy management excellence and sustained energy savings.
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
iStock photo: 16418416
SEP Certification
ISO 50001 certification
 National recognition by U.S. DOE identifying sustainability leaders
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Verified energy performance improvement
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
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Significant savings from operational improvements with no capital investment
•
Reducing carbon emissions, with third‐party verified energy performance improvement
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Savings found to be almost double corporate business as usual Energy Exchange: Federal Sustainability for the Next Decade
ISO 50001 Benefits Facilities of All Sizes
Some sites may have the strongest business case
Those with an annual energy spend < $2 million
Even a small facility saved $50K+ a year from operational energy cost savings
Annual energy spend > $2 million
Less than 1.5‐year payback
Less than 2‐year payback
Less than 2.5‐yr payback
Source: HARBEC case study
Source: Development of an Enhanced Payback Function of the Superior Energy Performance Program, LBNL, 2015.
www.energy.gov/eere/amo/business‐case‐sep
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Energy Exchange: Federal Sustainability for the Next Decade
SEP Certified Facilities and Verified Energy Performance Improvement
Improvement over 3 years unless stated otherwise
Saanichton, BC Canada
30.6%
Brockville, Ontario Canada
Smyrna, TN
23.1%
Aberdeen, SD
11.0%
Clovis, CA
16.7%
Hutchinson, MN
10.7%
Seneca, SC
15.6%
Cynthiana, KY
6.9%
Cordova, IL
5.7%
Decatur, AL
5.2%
Prairie du Chien, WI
5.2%
Peru, IN
24.9% / 10 yrs
Costa Mesa, CA
23.4%/15 mo’s
West Kingston, RI
Columbia, MO
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Last updated: July 7, 2016
20.0%
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)
Columbus, IN
21.4% / 7 yrs
16.8%
Whitakers, NC
12.6% / 2 yrs
Detroit, MI
32.5% / 10 yrs
Smyrna, TN
17.7%
7.8%
Bethlehem, PA
17.0%
Lexington, KY
6.9%
Washington, DC
16.5%
Lincoln, NE
6.5%
Ontario, NY
16.5%
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
Dunedin, FL
12.2% / 2 yrs
Wilson, NC
15.1% / 10 yrs
Gaithersburg, MD
8.5%
Cheswick, PA
7.6%
Carlisle, PA
5.7%
20.9%
Energy Exchange: Federal Sustainability for the Next Decade
Annual Cost Savings
Annual Savings
Company
Facility
Cummins
Rocky Mount Engine Plant, Whitakers, NC facility $716,000
11 months
General Dynamics
Scranton, PA facility
$956,000
6 months
$938,000
6 weeks
$748,000
5 weeks
$866,000
4 months
Nissan
Nissan
Volvo Trucks
Smyrna, TN facility – initial
certification
Smyrna, TN facility –
recertification
Dublin, VA facility – initial
certification
“SEP verification provides the ability
to have proven performance metrics
to quantify actual savings,
giving both internal and external
credibility to savings claims.”
Payback
2015 study of 10 SEP‐certified facilities: Volvo Trucks
Dublin, VA

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
Energy Exchange: Federal Sustainability for the Next Decade
Contact info
Learn more:
http://energy.gov/ISO50001
Paul Scheihing
Technology Manager, Technical Assistance
Advanced Manufacturing Office
US Department of Energy
[email protected]
1‐202‐586‐7234
Enroll today to gain access to resources, such as program updates, tips, and phone support
Subscribe on the SEP website to receive the latest SEP news & program updates energy.gov/eere/amo
energy.gov/eere/amo/ta
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Energy Exchange: Federal Sustainability for the Next Decade
Federal ISO 50001 pilot
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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]
Please use: “ISO ‐ Alternate Compliance Path” in email subject line.
Energy Exchange: Federal Sustainability for the Next Decade