Professional Documents
Culture Documents
Berlin, 2017-08-08
Table of content
1 Introduction ......................................................................................................................... 3
1.1 Learning objectives of the course ........................................................................................... 3
1.2 Introduction............................................................................................................................. 3
2 Energy management ............................................................................................................ 4
2.1 Introduction to energy management ...................................................................................... 4
2.2 Instruments of energy management systems ......................................................................... 5
2.3 Benefits and barriers of EMS ................................................................................................... 7
2.4 Implementation of EMS .......................................................................................................... 8
2.5 Learning from peers ................................................................................................................ 8
2.6 How POFs use energy management ..................................................................................... 10
2.7 Chapter endnotes .................................................................................................................. 11
3 Energy audits ..................................................................................................................... 12
3.1 Introduction to energy audits ............................................................................................... 12
3.2 Scope of work for energy audits ........................................................................................... 12
3.3 Working methodology of an energy auditor ......................................................................... 13
3.4 Best available techniques ...................................................................................................... 14
3.5 How to find the right auditor ................................................................................................ 15
3.6 Usefulness of energy audit reports ....................................................................................... 16
3.7 Chapter endnotes .................................................................................................................. 17
4 Summary ........................................................................................................................... 18
4.1 Summary ............................................................................................................................... 18
4.2 References ............................................................................................................................. 18
4.3 Further Reading ..................................................................................................................... 18
1.2 Introduction
Once awareness of energy saving, energy efficiency and energy conservation is raised, the question is
how to realise this energy saving potential in a systematic manner. This course presents concepts that
help to identify appropriate energy interventions by pointing out two different approaches, one
internal and one external. Knowledge of these approaches also helps in defining the energy policy
objectives required to determine the overall framework for the organisation. After that, planning for
implementation of the strategies starts. This course discusses useful hints, instruments and definitions
to support learners in such a process.
The course starts by explaining an energy management system as a tool that can be used by each
individual organisation to achieve efficient and effective energy use. You will learn how this benefits
the organisation and how international standard ISO 50001 provides valuable assistance.
The course introduces the work of an energy auditor as an external support for the systematic analysis
of a company’s energy situation. It explains how energy auditors work and the various audit results
they produce. One of the subchapters introduces the advantages of energy audits for providers of
finance (POFs).
Energy management systems (EMS) require managerial and technical support and skills. It is a
combined approach in which the elements complement each other. Both sides follow the so-called
plan-do-check-act model.
The managerial aspects include:
• Plan: policy, development of goals and targets
• Do: training, documentation, communication
• Check: internal audits
• Act: management review, corrective/preventative action, incentives
Energy performance indicators (EPI) are usually defined for each designated energy cost centre (ECC),
which can be one piece of equipment or a line of interconnected machines. EPIs can be the ratio of
energy to product unit output or energy to product monetary value.
Energy efficiency investments are a component of every EMS.
Energy management systems (EMS) are voluntary systems often used in medium to large companies;
however, in several countries where CO2 trading systems have been established or consumption ceilings
for energy-intensive industries are in force, the reporting requires an established EMS. Some countries
link incentives like subsidies for efficient technologies to the existence of EMS.
The introduction of an EMS and even more the ISO 50001 certification comes at a cost: staff have to
be assigned to these tasks, external auditors or certifiers recruited, monitoring devices installed, data
management systems expanded, operational handbooks revised, equipment purchased etc. The cost
of establishing an EMS can be expected to be paid back within a reasonable period of time. However,
quite often management is not inclined to initiate this as they do not want or do not have the liquidity
to invest in an EMS.
Another barrier for companies is the fact that energy costs are not a focus of management as it is
traditionally more focused on other cost drivers. Some industries are also reluctant to grant external
auditors access to their plants. Hence, many companies feel it would be more appropriate not to install
a fully-fledged EMS and have instead implemented leaner approaches. However, the rapidly increasing
number of ISO 50001 certificates indicates a trend towards EMS.
The effect of introducing EMS usually takes some time and passes through different phases. It is
common for low-investment measures, so-called “low-hanging fruit”, to be implemented first, e.g.
turning off engines when in standstill mode, compensation of reactive power etc. The full energy saving
potential can only be mobilised once a monitoring system is in place and investments are made in more
efficient equipment.
The implementation of EMS can be divided into various phases (see figure below). After the decision
has been made to implement energy efficiency measures, low-investment/high-return measures (so-
called “low-hanging fruit”) lead to initially high reductions. Such measures could be switching off
devices/machines that are idling or on standby when they are not needed. Investments in new
equipment reduce consumption step-by-step and may lead to further incremental reductions in power
consumption after a certain learning phase. Successful implementation of the initial measures creates
momentum for further projects.
One of the best ways to learn is to learn from peers, other branches of the same company, other
industry companies or even competitors. This approach has been successfully applied in regard to
energy efficiency in the industrial sector in the form of energy efficiency networks (local, regional or
The International Organization for Standardization (ISO) provides voluntary international standards,
which also stipulate the requirements for energy management systems (EMS). The request for ISO to
develop an international energy management standard came from the United Nations Industrial
Development Organisation (UNIDO), which had recognised industry’s need to mount an effective
response to climate change and the proliferation of national energy management standards. The
outcome was ISO 50001:2011 [3], which is linked to earlier standards such as ISO 9001 Quality
Management Systems, ISO 14001 Environmental Management Systems and others that can be applied
independently.
ISO 50001 provides the framework for establishing, implementing, maintaining and improving an
energy management system. It is based on the plan-do-check-act approach (PDCA) and can be
implemented by any type of organisation regardless of its size, location or business. ISO 50001 focuses
on overall energy performance, which not only includes energy efficiency but also energy security and
energy use, for example. A company that is certified as ISO 50001 compliant has undergone an official
process. It signals its long-term commitment to saving energy to management and staff, ensures that
their approach is in line with international assumptions and shows other stakeholders and the general
public that it is continuously saving costs.
For POFs, ISO 50001 certification is a very strong indicator that the energy management system is up-
to-date, the personnel are committed and all energy efficient investments receive maximum attention
and are thus highly likely to achieve the forecasted savings regarding operational costs.
Number of ISO 50001 certificates worldwide for the years 2011 – 2014
(Data source: ISO 2015)
Energy audits are often the first step in understanding how energy is utilised within an organisation.
They indicate which forms of energy are used and quantify the amount of energy required for a specific
application. Energy audits are usually the first step in implementing an energy management system.
Energy audits are also part of every new assessment cycle within the energy management system and
help to identify hot spots with the highest potential for improvement.
Energy audits can be performed by internal staff. However, the job of energy auditor has been
professionalised in many countries around the world. To become an energy auditor, a technical
background such as engineering is required, along with the completion of an additional course in
energy auditing including a final examination. These courses may be certified by national bodies.
Because of this, energy audits are often carried out by externals. Organisations benefit from their
broader experience and the assumption of independent decision-making.
Energy audit reports are not standardised. Some countries have developed guidelines or templates to
satisfy legal requirements with regard to electric power policy, building permits or voluntary
certification schemes.
The scope of work for an energy audit is not defined and depends on the individual terms of reference.
In general, the following three energy audit categories apply:
1. Preliminary audit: this is also called a “walk-though” audit and results in a number of
recommendations, many of which come under the category of good housekeeping, e.g.
switching lights and machines off when not in use, closing doors when rooms require a certain
temperature etc. The final report summarises “no-cost – low cost” measures and points out
areas that require further analysis.
2. Energy audit/general energy audit: this requires detailed information and measurements, and
the organisation often has to install meters at relevant energy usage points in order to deliver
the required data. The final report is a technical one, detailing how much energy can be saved
by which measure.
3. Investment grade audit: this monetarises the technical figures of the general audit report,
recommends investments and helps the organisation to prioritise their competing investment
needs by taking return-on investment and net-present value calculations into consideration.
In their recommendations for investment, energy auditors may refer to something called “best
available techniques”. This is a standard expression which means that, given the current status of
development within an industry, the best available technology is state-of-the-art technology subject to
cost-benefit considerations. The EU outlines so-called best available techniques reference documents
(BREFs) for different industries, which “inform the relevant decision-makers about what may be
technically and economically available to industry in order to improve their environmental
performance and consequently improve the whole environment” [1]. BREFs on specific industries like
ceramics or iron and steel cover all environmental aspects, some of which are of indirect relevance to
energy efficiency, e.g. emissions. One comprehensive BREF is dedicated to energy efficiency as a
horizontal issue across all specific industries [2]. It describes in detail energy technologies of relevance
to the industrial sector and provides performance benchmarks.
BREFs are important guideline documents as reference information for both licensing authorities and
industry in the EU member states. In the absence of similar descriptions of the state-of-the-art in other
countries, the BREFs serve as a point of reference worldwide.
As energy auditor is a quite new profession, many countries do not have an established system under
which energy auditors are trained and certified. This can make the search for an appropriate auditor
somewhat difficult. The following criteria might help to assess the qualification of an auditor:
• Does the auditor have an appropriate academic background (e.g. architect or civil engineer for
buildings, mechanical or electrical engineer for industrial plants)?
• How long has the auditor been working in this area?
• What comparable references does he have? Is the area in which the auditor has gained
experience similar and comparable to the task at hand?
• What certification does the auditor hold (e.g. ISO 50001; building permits)?
• Is the auditor registered with relevant associations and has he/she undergone periodic
retraining?
• Is the auditor independent or does he/she work for a potential supplier of energy efficient
equipment?
In many countries, databases that help to find an energy auditor are available. The providers of such
databases often check whether the candidates meet minimum entry and quality assurance
requirements. In addition to this, chambers of commerce, professional associations or national auditor
associations may be able to provide lists of auditors.
A precise description of the tasks to be rendered within the terms of reference provides candidates
with a better understanding of the job and ensures clarity regarding the expectations on both sides
with regard to the scope and timeframe of the services.
Energy audit reports are useful tools not only for the energy consuming company but also for POFs.
The fact that an organisation has engaged an energy auditor is a positive sign and indicates an interest
in managing the energy system in a systematic manner. Audit reports provide an independent picture
of an organisation’s energy supply and energy consumption by analysing the energy flows, pointing out
energy conservation measures and identifying potential future investment needs. The quality of the
audit defines its usefulness.
One of the three variables that determine the quality of the audit report is the knowledge and
experience of the energy auditor. The second variable is the terms of reference. In order to be able to
rely on the energy audit report as a due diligence tool, the purpose and expectations should be covered
by the terms. The third important variable is the quality of data collected within the organisation. The
energy audit relies in part on existing data and in part on data collected during the audit. Experience
has shown that not all necessary data are available, especially in the case of SMEs. Furthermore, data
may not exist for the timeline needed to establish a savings potential.
An audit report will include all sorts of recommendations. In particular if it is the first assessment, there
will be many recommendations that do not require substantial investment or where, for example,
inefficient drives can be replaced by modern ones within the scope of maintenance activities. These
measures have a short payback period and are usually financed under the company’s recurrent costs.
Therefore, POF should also expect a useful auditor report to indicate the main areas for energy efficient
investments or to at least indicate how the company might develop investment plans.
Managing the information in an energy audit report means understanding the limitations of what is
stated and what has been omitted.
4.2 References
The Association of German Engineers (VDI): Guideline 4602, paper 1: Energy management – Terms
and definitions (2007)
Energieeffizienz-Netzwerke: www.energie-effizienz-netzwerke.de
European IPPC Bureau (EIPPCB), website: http://eippcb.jrc.ec.europa.eu/
ISO 50001 – Energy management; http://www.iso.org/iso/home/standards/management-
standards/iso50001.htm
Umweltbundesamt (UBA): Energiemanagementsysteme in der Praxis; 2012, available online
(German): https://www.umweltbundesamt.de/sites/default/files/medien/publikation/long/3959.pdf
EIPPCB 2009 – European IPPC Bureau (February 2009). Retrieved from
http://eippcb.jrc.ec.europa.eu/reference/BREF/ENE_Adopted_02-2009.pdf
The website of the International Organization for Standardization (ISO) detailing ISO 500001 for energy
management provides a lot of information, e.g. requirements with guidance for use, a practical guide
for SMEs or requirements for bodies providing audits and certification. However, not all of the
information is available for free.
http://www.iso.org/iso/home/standards/management-standards/iso50001.htm
https://ec.europa.eu/energy/intelligent/projects/en/projects/enforce
http://www.energy-efficiency-watch.org/
This example from the German Energy Agency (dena) demonstrates an initiative for energy efficiency
networks in order to improve mutual learning among industry players.
https://www.dena.de/en/topics-projects/energy-efficiency/companies/energy-efficient-
networks/
The Copenhagen Centre’s Knowledge Management System (KMS) engages stakeholders in energy
efficiency initiatives through knowledge sharing and outreach. The KMS provides users with access to
selected information, reports, publications and databases on energy efficiency.
http://kms.energyefficiencycentre.org/
The following book provides insights into energy management measures for different industrial
appliances such as electric motors, boilers or pumps, among many others.
Abbi, Y. P.; Jain, S. (2006): Handbook on Energy Audit and Environment Management; The
Energy and Resources Institute (TERI), 2006
Blok, K. (2007): Introduction to Energy Analysis; Techne Press, Amsterdam, The Netherlands
2007
Yang, M.; Yu X. (2015): Energy Efficiency – Benefits for Environment and Society; Springer-
Verlag London, 2015