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Industrial Energy Management
and the Emerging ISO50001 Standard




 Rob Dussault
 Schneider Electric
 Industry NOW Express
Agenda

      1              The Energy Dilemma

      2              From Power Distribution to the Smart Grid

      3              Solutions in Energy Management- EcoStruxure




Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012   2
The energy dilemma is here to stay
                              The facts                                                                      The need




              Energy demand                                                                     CO2 emissions to
              By 2050                                                                           avoid dramatic climate
              Electricity by 2030                                                               changes by 2050
              Source: IEA 2007




Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012               3
The                                                                                                                To ~9B ….
 Drivers:                                                                          ~7B today….




Global GDP Growth


                                   +78% over 14 years….




                                                                                               +83% over 6 years!


  Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012                    4
The energy dilemma is here to stay
                              The facts                                                                      The need




              Energy demand                                                                     CO2 emissions to
              By 2050                                                                           avoid dramatic climate
              Electricity by 2030                                                               changes by 2050
              Source: IEA 2007




Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012               5
The energy dilemma is here to stay
                              The facts                                                                      The need




              Energy demand                                                                     CO2 emissions to
              By 2050                                                                           avoid dramatic climate
              Electricity by 2030                                                               changes by 2050
              Source: IEA 2007




                                                                                          Increased                 Conflicts for
     Frequent                                   Rising
                                                                                          Emissions               resource access
   power outages                             energy prices
                                                                                           Control                   & control

Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012                          6
Impact: US Industrials
                                                             Energy Price Trends




                                                                                                             ** US EIA: Energy Price Volatility Table


Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012                                              7
Impact: US Industrials
                                                             Energy Price Trends




                                                                                                             ** US EIA: Energy Price Volatility Table
Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012                                              8
Impact: US Industrials
                                                             Energy Price Trends




                                                                                                             ** US EIA: Energy Price Volatility Table
Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012                                              9
Impact: US Industrials
                                                           Energy Price Trends




Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 2012
                                                                                            Standard 100212–      10
Impact: US Industrials
                                                           Energy Price Trends




Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 2012
                                                                                            Standard 100212–      11
Impact: US Industrials
                                                           Energy Price Trends




                                                                                                                  What’s happening to
                                                                                                                  Energy Prices Post-
                                                                                                                  Recession?




Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 2012
                                                                                            Standard 100212–                       12
Post-Recession Price Trends

                                                                                          US Natural Gas Price Forecast*
                                                                         ***

                                                                                                                                             +150% in
                                                                                                                                             4years
                                                    +3% / year**



                                                    -3% / year**




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


Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012                                              13
Impact: US Industrials
                                           Comparing % US Energy Consumption with % Population
     1 600




                                                                                                                    50
                                                                                                                  14
     1 400
                            Average Power per Capita
     1 2 00                 (Watts per Person)
     1 000




                                                                                                           0
                                                                                                         85
                                                                                           5
                                                                                         77
        800




                                                                          0
                                                                        70
        600

        400
                                                         5
                                                       27
                                         0
                                       20




        2 00
                       50




             0
                     India          Mexic o           China              EU           Russia           Japan      USA




Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 2012
                                                                                            Standard 100212–             14
Impact: US Industrials
                                            Comparing % US Energy Consumption with % Population
     1 600




                                                                                                                       50
                                                                                                                     14
     1 400
                            Average Power per Capita
     1 2 00                 (Watts per Person)
     1 000




                                                                                                               0
                                                                                                             85
                                                                                             5
                                                                                           77
        800




                                                                            0
                                                                          70
        600

        400
                                                           5
                                                         27
                                          0
                                        20




        2 00
                       50




             0
                      India          Mexic o           China               EU           Russia               Japan   USA




Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012                  15
Impact: US Industrials
                                            Comparing % US Energy Consumption with % Population
     1 600




                                                                                                                       50
                                                                                                                     14
     1 400
                            Average Power per Capita
     1 2 00                 (Watts per Person)
     1 000




                                                                                                               0
                                                                                                             85
                                                                                             5
                                                                                           77
        800




                                                                            0
                                                                          70
        600

        400
                                                           5
                                                         27
                                          0
                                        20




        2 00
                       50




             0
                      India          Mexic o           China               EU           Russia               Japan   USA




Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012                  16
Impact: US Industrials
                                            Comparing % US Energy Consumption with % Population
     1 600




                                                                                                                       50
                                                                                                                     14
     1 400
                            Average Power per Capita
     1 2 00                 (Watts per Person)
     1 000




                                                                                                               0
                                                                                                             85
                                                                                             5
                                                                                           77
        800




                                                                            0
                                                                          70
        600

        400
                                                           5
                                                         27
                                          0
                                        20




        2 00
                       50




             0
                      India          Mexic o           China               EU           Russia               Japan   USA



                                 USA Industrials Hyper-Sensitive to increases in Energy Prices !




Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012                  17
Impact: US Industrials
                                             Example: Iron/Steel Mills




                    Other
Coal
1%                  1 4% Fuel Oil
                           1%


                                     Electricity
                                        2 9%
 Natl Gas
  55%

               Forms of
                Energy
              Consumed




  Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012   18
Impact: US Industrials
                                              Example: Iron/Steel Mills


                                                                                                Other
                                                                                                11%
                    Other
Coal
1%                  1 4% Fuel Oil
                                                                                                               Process
                           1%
                                                                                                               Heating
                                                                                                                 43%
                                     Electricity
                                        2 9%
                                                                                   Machine Drive
 Natl Gas
                                                                                       46%
  55%

               Forms of                                                                      Share of Electrical
                Energy                                                                       Energy Consumed
              Consumed




  Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012             19
Impact: US Industrials
                                              Example: Iron/Steel Mills
                                                   90% of energy consumed is in the PROCESS !

                                                                                                Other
                             Focus of Energy Managers                                           11%
                    Other
Coal
1%                  1 4% Fuel Oil
                                                                                                               Process
                           1%
                                                                                                               Heating
                                                                                                                 43%
                                     Electricity
                                        2 9%
                                                                                   Machine Drive
 Natl Gas
                                                                                       46%
  55%

               Forms of                                                                      Share of Electrical
                Energy                                                                       Energy Consumed
              Consumed




  Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012             20
The solution is a combination of
   cleaner generation and efficiency
   ● Over 50% of CO2 emission abatement will be from end use efficiency

      World energy-related CO2 emissions abatement




                                                                                                      Stabilize greenhouse emissions to 450ppm

                                                                                                           Source: World Energy Outlook 2009, OECD / IEA
Schneider Electric - Industry Business – Industrial Energy Management and and Emerging ISO50001 Standard– 2012
   Schneider Electric - Industry Business – Industrial Energy Management Emerging ISO50001 Standard 100212– 2012                                 21
How to Increase supply and Decrease
emissions? Efficiency counts triple!

 Coal
                      100 units                                           35 units                           33 units




               1 unit saved at                                                                3 units of primary
               point of use                                                                   energy not consumed



Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012              22
Other Drivers for Efficiency
Beyond Energy Costs and The Environment:
   • Minimize                   Risks
              • Regulation
              • Disruption
   • Employee Retention
              •Emerging Talent
   • Public Relations
              •Green Branding




Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012   23
Agenda

      1              The Energy Dilemma

      2              From Power Distribution to the Smart Grid

      3              Solutions in Energy Management- EcoStruxure




Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012   24
The Jurassic Grid
   old-style power distribution


Centralised
Generation




                                                                                                                           Residential




                                                                                                    Industry




                                                                                                       Building




                                                                                                         Datacenter
                                  Transmission                          Distribution                                  Commercial & Industrial

 • Central production adapting to demand                                                • Production / consumption balance done by
   variation                                                                              integrated utility companies
 • Top-down energy flow                                                                 • Rather passive users
   Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 2012
                                                                                               Standard 100212–                           25
Active energy management
     is about being smart grid ready
                                                                              Demand / supply mgt :
                                                                              Active Energy Efficiency
                                                                              Energy visibility
                                                                              Energy control & optimisation
Centralised
                                                                         2
Generation

                                                                                                                             Electric Vehicles &
                                                                                                                         3   Energy Storage

                                                                                                                                       Residential




                                                                                                      Industry




                                                                                                         Building




                                                                                                            Datacenter
                                    Transmission                          Distribution                                          Commercial & Industrial

                                     Renewable
                                     Energy                                                                                                 Decentralised
                                     Plants                                     Communication and                                           Generation
 1
                                                                   4            software at all levels of
                                                                                the “Smart Grid”

     Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 2012
                                                                                                 Standard 100212–                                           26
Jurassic Energy Management Techniques

       1     Find out what the challenge is…                                  Energy audit
                                                                               & metering




            Passive Energy Efficiency                                       Active Energy Management

        2                                                  3   Optimise through                                 4
                                                                                                                    Monitor,
            Fix the basics                                      automation &
                                                                                                                maintain, improve
                                                                  regulation

    Low consumption devices,                                       Solutions in :                               Metering, monitoring and
    insulation material, power                                Industrial Automation,                         consulting services, EM analysis
        factor correction                                     building management,                                       software
                                                            power management, lighting
                                                                      control


Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012                                      27
Jurassic Energy Management Techniques

       1     Find out what the challenge is…                                  Energy audit
                                                                               & metering




            Passive Energy Efficiency                                       Active Energy Management

        2                                                  3   Optimise through                                 4
                                                                                                                Monitor, maintain,
            Fix the basics                                      automation &
                                                                                                                    improve
                                                                  regulation
    Low consumption devices,                                       Solutions in :                               Metering, monitoring and
    insulation material, power                                Industrial Automation,                         consulting services, EM analysis
        factor correction                                     building management,                                       software
                                                            power management, lighting
                                                                      control




Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012                                      28
Jurassic Energy Management Techniques

       1     Find out what the challenge is…                                  Energy audit
                                                                               & metering




            Passive Energy Efficiency                                       Active Energy Management

        2                                                  3   Optimise through                                 4
                                                                                                                    Monitor,
            Fix the basics                                      automation &
                                                                                                                maintain, improve
                                                                  regulation

    Low consumption devices,                                       Solutions in :                               Metering, monitoring and
    insulation material, power                                Industrial Automation,                         consulting services, EM analysis
        factor correction                                     building management,                                       software
                                                            power management, lighting
                                                                      control



Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012                                      29
Active Energy Management:
The fastest way to save on energy, curb CO2 emissions
and reduce operation cost
                                                                              Energy audit
       1     Find out what the challenge is…                                   & metering




            Passive Energy Efficiency                                       Active Energy Management

        2                                                  3   Optimise through                                 4     Monitor,
            Fix the basics                                      automation &                                          maintain,
                                                                  regulation                                          improve

    Low consumption devices,                                       Solutions in :                               Metering, monitoring and
    insulation material, power                                Industrial Automation,                         consulting services, EM analysis
        factor correction                                     building management,                                       software
                                                            power management, lighting
                                                                      control
Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012                                      30
Applies to all Facility Types
                                        Supervision



                                                                                                                                     Energy &
                                                                                                                                     Advanced
                                                                                                   Enterprise portal                 Services



 Power
 management



 Process
 & Machines
 management


  IT / Server
  Room
  management


 Building
 management


 Security
 management
                                                                                                                       Supervision

                                                Supervision

Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012                                      31
Combining Energy Data for Active Energy
Management
                                                                         Plant energy management

                                                             MES & Information management

                                                                               Plant supervision

                                                                       Process Automation

                                                                         Machine control

                                                                         Motor control

                                                           Electrical distribution

                                              Power monitoring & control

                                                                     Security

                                                        Access control

                                                      Critical Power

                                                     Interoperability and openness
    Simple Integration                               to third party systems
    Safety                                                   Efficiency                                       Productivity
    ● Critical power                                         ● Up to 30% energy savings                       ● Maximize output
    ● Process control                                        ● Capex & Opex reduction                         ● Improved workforce
    ● Safety systems (SIL*)                                                                                     utilization & performance
 Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012                                 32
Not all Energy Management Dashboards
are the Same!
                               Enterprise-Level
                               Monthly data: Purchasing records, efficiency
                               projects, sustainability metrics

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

                Single-Site Operations

                      Hourly data, process inputs, correlation with process variables

   Control-Level

          Instantaneous readings, operator alarms, idle state control


 Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012   33
Demonstration: Enterprise
Dashboard


          Resource Advisor
Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012   35
Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012   36
Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012   37
Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012   38
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




Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012   40
An introduction to ISO 50001
International Organization for
 Standardization
                                                                                               Worldwide Adoption of ISO 14001
                                                                                  25,000
● Develops standards for industry
       ●ISO 9001 – Quality Management
        Systems                                                                   20,000
       ●ISO 14001 – Environmental
        Management Systems
                     – 108% year-over-year                                        15,000
                       adoption growth rate
● Standards are widely accepted                                                   10,000



1 year after ISO50001 implementation: 5,000
915 sites certified…
…matching adoption rate of ISO140001
                                                                                        0
                                                                                        1995              1996   1997        1998   1999        2000

   Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012                              42
What is ISO 50001?
● 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




Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012   43
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.




     Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012                          44
© Schneider Electric – 2012
How is ISO 50001 different from
LEED?
● 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




Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012   45
What Can Receive ISO 50001
Certification?
● 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”




Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012   46
Superior Energy Performance

 ● SEP was released in early 2012

 ● ISO 50001 certification is a requirement

 ● Offers four sectors
         ● Industrial

         ● Commercial

         ● Transportation

         ● Utility




                                                                      A GRADING system for Performance Improvement
                                                                           5%=Silver, 10%=Gold, 15%=Platinum

Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012    47
Benefits of ISO 50001
● 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




Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012   48
Challenges
                                                                                             ● 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




     Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012                                             49
© Schneider Electric – 2012
Anatomy of the standard
            Plan                                       Do                                     Check              Act
                                                                                                             Noncomformities,
    Establish an                                                                             Control of
                                               Energy Review                                                  Correction, and
   Energy Baseline                                                                           Documents
                                                                                                                Prevention
                                             Establish Energy
       Establish an                                                                          Operations        Management
                                               Performance
      Energy Policy                                                                           Control            Review
                                            Indicators (EnPIs)
                                                   Energy
         Legal                                                                             Evaluation of        Control of
                                                 Management
      Requirements                                                                         Compliance            Records
                                                 Action Plan

             Design                            Implementation                             Internal Audits     Documentation

                                                 Competence,                               Monitoring,
   Procurement of
                                                 Training and                             Measurement,       Communication
   Energy Services
                                                  Awareness                                 Analysis

                                    Click on individual requirements to learn more
Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012                      50
Implementation
                                               OVERVIEW



     Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012   51
© Schneider Electric – 2012
Implementation Process
    ● 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




     Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012   52
© Schneider Electric – 2012
Phase 1 – Gap Analysis
    ● Determine which current practices can
       be adopted to meet the standard

    ● Develop an implementation plan

          ● Determine Phase 3 required effort




     Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012   53
© Schneider Electric – 2012
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




Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012   54
Phase 3 – EnMS Construction
    ● Build procedures for a fully functional system

    ● Provide awareness & training

    ● Ensure energy efficiency targets have a plan for achievement




     Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012   55
© Schneider Electric – 2012
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)




     Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012   56
© Schneider Electric – 2012
Phase 5 – Certification Audits
    ● 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




     Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012   57
© Schneider Electric – 2012
SEP Add-on
                                                            ● 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




     Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012   58
© Schneider Electric – 2012
Case Study

Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012   59
Smyrna, TN Plant
● ISO 50001 certified EnMS
● Awaiting SEP Audit
● Will qualify for SEP Platinum with 18%
  reduction




Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012   60
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




Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012   61
Standard Says

Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012   62
Establish an                                                                                                    Back to menu


  Energy Policy
    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).




     Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012             63
© Schneider Electric – 2012
Energy Review                                                                                                   Back to menu


    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.




     Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012             64
© Schneider Electric – 2012
Legal Requirements                                                                                              Back to menu


    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.




     Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012             65
© Schneider Electric – 2012
Establish an                                                                                                               Back to menu


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




     Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012                         66
© Schneider Electric – 2012
Establish Energy                                                                                             Back to menu


Performance Indicators (EnPIs)
Identify EnPIs appropriate for                                                          • Wh per Widget
monitoring and measuring its                                                            • kWh per gallon
energy performance.                                                                     • kWh per ton




Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012             67
Energy Management                                                                                               Back to menu

  Action Plan
    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.




     Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012             68
© Schneider Electric – 2012
Implementation                                                                                                  Back to menu


    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.




     Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012             69
© Schneider Electric – 2012
Competence,                                                                                                     Back to menu


  Training and
  Awareness
    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.




     Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012             70
© Schneider Electric – 2012
Communication                                                                                                       Back to menu


Communicate the EnMS and EnPIs throughout the organization, market and
other stakeholders



            Energy
            ~~~~~~~~~
             Policy
             ~~~~~~~~~
            ~~~~~~~~~                                                                                              Employees
            ~~~~~~
             ~~~~~~~~~
             EnPI
            ~~~~~~~~~
            ~~~~~~
             ~~~~~~~~~
            ~~~~~~~~~
            ~~~~~~
             ~~~~~~~~~
            ~~~~~~~~~
             ~~~~~~~~~
                                                                                                                  Shareholders


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

     Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012                  71
© Schneider Electric – 2012
Documentation                                                                                                Back to menu


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.




Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012             72
Control of Documents                                                                                            Back to menu




      Energy
      ~~~~~~~~~
     Procedures
       ~~~~~~~~~
      ~~~~~~~~~
      ~~~~~~
       ~~~~~~~~~
      ~~~~~~~~~
      ~~~~~~
       ~~~~~~~~~
      ~~~~~~~~~
      ~~~~~~
       ~~~~~~~~~
      ~~~~~~~~~
       ~~~~~~~~~




     Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012             73
© Schneider Electric – 2012
Operations Control                                                                                              Back to menu


    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.




     Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012             74
© Schneider Electric – 2012
Design                                                                                                          Back to menu


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




     Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012             75
© Schneider Electric – 2012
Procurement                                                                                                     Back to menu

  of Energy Services
    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.




     Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012             76
© Schneider Electric – 2012
Monitoring,                                                                                                     Back to menu

  measurement, analysis
    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.




     Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012             77
© Schneider Electric – 2012
Evaluation                                                                                                      Back to menu


  of Compliance
    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.




     Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012             78
© Schneider Electric – 2012
Internal Audits                                                                                                 Back to menu


    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.




     Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012             79
© Schneider Electric – 2012
Noncomformities,                                                                                                Back to menu


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




     Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012             80
© Schneider Electric – 2012
Control of Records                                                                                              Back to menu


    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.




     Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012             81
© Schneider Electric – 2012
Management Review                                                                                               Back to menu


    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.




     Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012             82
© Schneider Electric – 2012

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Industrial Energy Management and the Emerging ISO 50001 Standard

  • 1. Industrial Energy Management and the Emerging ISO50001 Standard Rob Dussault Schneider Electric Industry NOW Express
  • 2. Agenda 1 The Energy Dilemma 2 From Power Distribution to the Smart Grid 3 Solutions in Energy Management- EcoStruxure Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 2
  • 3. The energy dilemma is here to stay The facts The need Energy demand CO2 emissions to By 2050 avoid dramatic climate Electricity by 2030 changes by 2050 Source: IEA 2007 Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 3
  • 4. The To ~9B …. Drivers: ~7B today…. Global GDP Growth +78% over 14 years…. +83% over 6 years! Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 4
  • 5. The energy dilemma is here to stay The facts The need Energy demand CO2 emissions to By 2050 avoid dramatic climate Electricity by 2030 changes by 2050 Source: IEA 2007 Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 5
  • 6. The energy dilemma is here to stay The facts The need Energy demand CO2 emissions to By 2050 avoid dramatic climate Electricity by 2030 changes by 2050 Source: IEA 2007 Increased Conflicts for Frequent Rising Emissions resource access power outages energy prices Control & control Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 6
  • 7. Impact: US Industrials Energy Price Trends ** US EIA: Energy Price Volatility Table Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 7
  • 8. Impact: US Industrials Energy Price Trends ** US EIA: Energy Price Volatility Table Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 8
  • 9. Impact: US Industrials Energy Price Trends ** US EIA: Energy Price Volatility Table Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 9
  • 10. Impact: US Industrials Energy Price Trends Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 2012 Standard 100212– 10
  • 11. Impact: US Industrials Energy Price Trends Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 2012 Standard 100212– 11
  • 12. Impact: US Industrials Energy Price Trends What’s happening to Energy Prices Post- Recession? Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 2012 Standard 100212– 12
  • 13. Post-Recession Price Trends US Natural Gas Price Forecast* *** +150% in 4years +3% / year** -3% / year** *NYMEX forecast, using 50% probability table **annualized from 2009 proportion: http://www.eia.doe.gov/cneaf/electricity/epm/table1_1.html ***http://www.eia.gov/energy_in_brief/renewable_electricity.cfm Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 13
  • 14. Impact: US Industrials Comparing % US Energy Consumption with % Population 1 600 50 14 1 400 Average Power per Capita 1 2 00 (Watts per Person) 1 000 0 85 5 77 800 0 70 600 400 5 27 0 20 2 00 50 0 India Mexic o China EU Russia Japan USA Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 2012 Standard 100212– 14
  • 15. Impact: US Industrials Comparing % US Energy Consumption with % Population 1 600 50 14 1 400 Average Power per Capita 1 2 00 (Watts per Person) 1 000 0 85 5 77 800 0 70 600 400 5 27 0 20 2 00 50 0 India Mexic o China EU Russia Japan USA Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 15
  • 16. Impact: US Industrials Comparing % US Energy Consumption with % Population 1 600 50 14 1 400 Average Power per Capita 1 2 00 (Watts per Person) 1 000 0 85 5 77 800 0 70 600 400 5 27 0 20 2 00 50 0 India Mexic o China EU Russia Japan USA Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 16
  • 17. Impact: US Industrials Comparing % US Energy Consumption with % Population 1 600 50 14 1 400 Average Power per Capita 1 2 00 (Watts per Person) 1 000 0 85 5 77 800 0 70 600 400 5 27 0 20 2 00 50 0 India Mexic o China EU Russia Japan USA USA Industrials Hyper-Sensitive to increases in Energy Prices ! Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 17
  • 18. Impact: US Industrials Example: Iron/Steel Mills Other Coal 1% 1 4% Fuel Oil 1% Electricity 2 9% Natl Gas 55% Forms of Energy Consumed Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 18
  • 19. Impact: US Industrials Example: Iron/Steel Mills Other 11% Other Coal 1% 1 4% Fuel Oil Process 1% Heating 43% Electricity 2 9% Machine Drive Natl Gas 46% 55% Forms of Share of Electrical Energy Energy Consumed Consumed Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 19
  • 20. Impact: US Industrials Example: Iron/Steel Mills 90% of energy consumed is in the PROCESS ! Other Focus of Energy Managers 11% Other Coal 1% 1 4% Fuel Oil Process 1% Heating 43% Electricity 2 9% Machine Drive Natl Gas 46% 55% Forms of Share of Electrical Energy Energy Consumed Consumed Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 20
  • 21. The solution is a combination of cleaner generation and efficiency ● Over 50% of CO2 emission abatement will be from end use efficiency World energy-related CO2 emissions abatement Stabilize greenhouse emissions to 450ppm Source: World Energy Outlook 2009, OECD / IEA Schneider Electric - Industry Business – Industrial Energy Management and and Emerging ISO50001 Standard– 2012 Schneider Electric - Industry Business – Industrial Energy Management Emerging ISO50001 Standard 100212– 2012 21
  • 22. How to Increase supply and Decrease emissions? Efficiency counts triple! Coal 100 units 35 units 33 units 1 unit saved at 3 units of primary point of use energy not consumed Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 22
  • 23. Other Drivers for Efficiency Beyond Energy Costs and The Environment: • Minimize Risks • Regulation • Disruption • Employee Retention •Emerging Talent • Public Relations •Green Branding Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 23
  • 24. Agenda 1 The Energy Dilemma 2 From Power Distribution to the Smart Grid 3 Solutions in Energy Management- EcoStruxure Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 24
  • 25. The Jurassic Grid old-style power distribution Centralised Generation Residential Industry Building Datacenter Transmission Distribution Commercial & Industrial • Central production adapting to demand • Production / consumption balance done by variation integrated utility companies • Top-down energy flow • Rather passive users Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 2012 Standard 100212– 25
  • 26. Active energy management is about being smart grid ready Demand / supply mgt : Active Energy Efficiency Energy visibility Energy control & optimisation Centralised 2 Generation Electric Vehicles & 3 Energy Storage Residential Industry Building Datacenter Transmission Distribution Commercial & Industrial Renewable Energy Decentralised Plants Communication and Generation 1 4 software at all levels of the “Smart Grid” Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 2012 Standard 100212– 26
  • 27. Jurassic Energy Management Techniques 1 Find out what the challenge is… Energy audit & metering Passive Energy Efficiency Active Energy Management 2 3 Optimise through 4 Monitor, Fix the basics automation & maintain, improve regulation Low consumption devices, Solutions in : Metering, monitoring and insulation material, power Industrial Automation, consulting services, EM analysis factor correction building management, software power management, lighting control Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 27
  • 28. Jurassic Energy Management Techniques 1 Find out what the challenge is… Energy audit & metering Passive Energy Efficiency Active Energy Management 2 3 Optimise through 4 Monitor, maintain, Fix the basics automation & improve regulation Low consumption devices, Solutions in : Metering, monitoring and insulation material, power Industrial Automation, consulting services, EM analysis factor correction building management, software power management, lighting control Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 28
  • 29. Jurassic Energy Management Techniques 1 Find out what the challenge is… Energy audit & metering Passive Energy Efficiency Active Energy Management 2 3 Optimise through 4 Monitor, Fix the basics automation & maintain, improve regulation Low consumption devices, Solutions in : Metering, monitoring and insulation material, power Industrial Automation, consulting services, EM analysis factor correction building management, software power management, lighting control Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 29
  • 30. Active Energy Management: The fastest way to save on energy, curb CO2 emissions and reduce operation cost Energy audit 1 Find out what the challenge is… & metering Passive Energy Efficiency Active Energy Management 2 3 Optimise through 4 Monitor, Fix the basics automation & maintain, regulation improve Low consumption devices, Solutions in : Metering, monitoring and insulation material, power Industrial Automation, consulting services, EM analysis factor correction building management, software power management, lighting control Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 30
  • 31. Applies to all Facility Types Supervision Energy & Advanced Enterprise portal Services Power management Process & Machines management IT / Server Room management Building management Security management Supervision Supervision Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 31
  • 32. Combining Energy Data for Active Energy Management Plant energy management MES & Information management Plant supervision Process Automation Machine control Motor control Electrical distribution Power monitoring & control Security Access control Critical Power Interoperability and openness Simple Integration to third party systems Safety Efficiency Productivity ● Critical power ● Up to 30% energy savings ● Maximize output ● Process control ● Capex & Opex reduction ● Improved workforce ● Safety systems (SIL*) utilization & performance Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 32
  • 33. Not all Energy Management Dashboards are the Same! Enterprise-Level Monthly data: Purchasing records, efficiency projects, sustainability metrics Multi-Site Operations Daily data, correlation with production count, site-by-site benchmarking Single-Site Operations Hourly data, process inputs, correlation with process variables Control-Level Instantaneous readings, operator alarms, idle state control Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 33
  • 35. Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 35
  • 36. Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 36
  • 37. Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 37
  • 38. Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 38
  • 39. Demonstration-Production Energy Optimization Production Energy Optimization
  • 40. 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 Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 40
  • 41. An introduction to ISO 50001
  • 42. International Organization for Standardization Worldwide Adoption of ISO 14001 25,000 ● Develops standards for industry ●ISO 9001 – Quality Management Systems 20,000 ●ISO 14001 – Environmental Management Systems – 108% year-over-year 15,000 adoption growth rate ● Standards are widely accepted 10,000 1 year after ISO50001 implementation: 5,000 915 sites certified… …matching adoption rate of ISO140001 0 1995 1996 1997 1998 1999 2000 Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 42
  • 43. What is ISO 50001? ● 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 Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 43
  • 44. 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. Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 44 © Schneider Electric – 2012
  • 45. How is ISO 50001 different from LEED? ● 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 Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 45
  • 46. What Can Receive ISO 50001 Certification? ● 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” Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 46
  • 47. Superior Energy Performance ● SEP was released in early 2012 ● ISO 50001 certification is a requirement ● Offers four sectors ● Industrial ● Commercial ● Transportation ● Utility A GRADING system for Performance Improvement 5%=Silver, 10%=Gold, 15%=Platinum Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 47
  • 48. Benefits of ISO 50001 ● 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 Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 48
  • 49. Challenges ● 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 Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 49 © Schneider Electric – 2012
  • 50. Anatomy of the standard Plan Do Check Act Noncomformities, Establish an Control of Energy Review Correction, and Energy Baseline Documents Prevention Establish Energy Establish an Operations Management Performance Energy Policy Control Review Indicators (EnPIs) Energy Legal Evaluation of Control of Management Requirements Compliance Records Action Plan Design Implementation Internal Audits Documentation Competence, Monitoring, Procurement of Training and Measurement, Communication Energy Services Awareness Analysis Click on individual requirements to learn more Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 50
  • 51. Implementation OVERVIEW Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 51 © Schneider Electric – 2012
  • 52. Implementation Process ● 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 Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 52 © Schneider Electric – 2012
  • 53. Phase 1 – Gap Analysis ● Determine which current practices can be adopted to meet the standard ● Develop an implementation plan ● Determine Phase 3 required effort Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 53 © Schneider Electric – 2012
  • 54. 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 Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 54
  • 55. Phase 3 – EnMS Construction ● Build procedures for a fully functional system ● Provide awareness & training ● Ensure energy efficiency targets have a plan for achievement Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 55 © Schneider Electric – 2012
  • 56. 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) Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 56 © Schneider Electric – 2012
  • 57. Phase 5 – Certification Audits ● 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 Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 57 © Schneider Electric – 2012
  • 58. SEP Add-on ● 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 Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 58 © Schneider Electric – 2012
  • 59. Case Study Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 59
  • 60. Smyrna, TN Plant ● ISO 50001 certified EnMS ● Awaiting SEP Audit ● Will qualify for SEP Platinum with 18% reduction Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 60
  • 61. 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 Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 61
  • 62. Standard Says Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 62
  • 63. Establish an Back to menu Energy Policy 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). Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 63 © Schneider Electric – 2012
  • 64. Energy Review Back to menu 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. Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 64 © Schneider Electric – 2012
  • 65. Legal Requirements Back to menu 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. Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 65 © Schneider Electric – 2012
  • 66. Establish an Back to menu Energy Baseline An assessment of Current Energy consumption, procurement practices, conservation measures Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 66 © Schneider Electric – 2012
  • 67. Establish Energy Back to menu Performance Indicators (EnPIs) Identify EnPIs appropriate for • Wh per Widget monitoring and measuring its • kWh per gallon energy performance. • kWh per ton Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 67
  • 68. Energy Management Back to menu Action Plan 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. Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 68 © Schneider Electric – 2012
  • 69. Implementation Back to menu 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. Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 69 © Schneider Electric – 2012
  • 70. Competence, Back to menu Training and Awareness 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. Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 70 © Schneider Electric – 2012
  • 71. Communication Back to menu Communicate the EnMS and EnPIs throughout the organization, market and other stakeholders Energy ~~~~~~~~~ Policy ~~~~~~~~~ ~~~~~~~~~ Employees ~~~~~~ ~~~~~~~~~ EnPI ~~~~~~~~~ ~~~~~~ ~~~~~~~~~ ~~~~~~~~~ ~~~~~~ ~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~ Shareholders 1Q Results ~~~~~~ Market ~~~~~~ ~~~~~~ Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 71 © Schneider Electric – 2012
  • 72. Documentation Back to menu 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. Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 72
  • 73. Control of Documents Back to menu Energy ~~~~~~~~~ Procedures ~~~~~~~~~ ~~~~~~~~~ ~~~~~~ ~~~~~~~~~ ~~~~~~~~~ ~~~~~~ ~~~~~~~~~ ~~~~~~~~~ ~~~~~~ ~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~ Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 73 © Schneider Electric – 2012
  • 74. Operations Control Back to menu 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. Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 74 © Schneider Electric – 2012
  • 75. Design Back to menu The organization should consider energy-performance improvement opportunities in the design of new, modified, and renovated facilities, equipment, and systems. Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 75 © Schneider Electric – 2012
  • 76. Procurement Back to menu of Energy Services 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. Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 76 © Schneider Electric – 2012
  • 77. Monitoring, Back to menu measurement, analysis 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. Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 77 © Schneider Electric – 2012
  • 78. Evaluation Back to menu of Compliance 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. Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 78 © Schneider Electric – 2012
  • 79. Internal Audits Back to menu 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. Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 79 © Schneider Electric – 2012
  • 80. Noncomformities, Back to menu correction, and Prevention The organization should address actual and potential nonconformities by making corrections and taking preventive action. Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 80 © Schneider Electric – 2012
  • 81. Control of Records Back to menu 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. Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 81 © Schneider Electric – 2012
  • 82. Management Review Back to menu 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. Schneider Electric - Industry Business – Industrial Energy Management and Emerging ISO50001 Standard– 2012 82 © Schneider Electric – 2012