Application of Quality Management Standards in the Energy Management System
Personal Information Name: Mohamed Ahmed Samy Bachelor of Electrical Engineering Ain Shams University-Faculty of Engineering Year 2000 Senior Project Engineering Leader (Enppi from Nov. 2014 till present) Project QEHS Manager (Enppi from Apr. 2011 till Nov. 2014) Electrical Engineer (Enppi from Mar. 2002 till Apr. 2011) Electrical Engineer (Schneider-Electric from Jun.2001 till Oct.2001) Professional Energy Manager (IEP-USA) Data Center Certified Associate (Energy University-USA) ASQ Certified Quality Engineer (ASQ-USA) QMS Lead Auditor IRCA Registered (IRCA-UK) Associate IEMA Institute of Environmental Management & Assessment (IEMA-UK) Project Management Professional (PMP-PMI), USA Other Certificates in Different Disciplines e.g. Supply Chain management, Operations Management, Business Process Management, OSHA Professional, Environmental Engineering...etc. E-mail address: samozin2003@hotmail.com Mobil Number: +201069668079
Objectives Quick Awareness of ISO 50001 Understanding the Importance / Benefits of ISO 50001 Implementation or Other Equivalent Energy Management Initiatives Understanding the Path Forward and the Steps for its Implementation Quick Awareness of the Barriers to its implementation Illustrating Practical Examples
Introduction ISO 50001 is a management system standard which is not specifically sector-oriented and can be adopted by different organizations in differents fields of application ISO 50001 was designed in such a way that it can be integrated with other existing management systems, e.g. ISO 9001, ISO 14001 and OHSAS 18001, it is based on the Plan-Do-Check-Act cycle (PDCA) established by Eng. Walter Shewart Plan-Do-Study-Act cycle (PDSA) and then modified by Dr. Edward Deming Accordingly, the different management systems can be easily integrated with any company existing management systems
Integration of EnMS with Other Existing Management Systems When integrating EnMS requirements into other existing management systems, companies profit from a reduction in personnel, as well as in temporal and financial expenditure. The successful integration of EnMS requires a company s successful integration of responsibilities for energy, safety, quality and environmental protection. Problems always occur when bringing together system accountabilities and, if required, inherent positions also need to be changed or even eliminated.
Integration of EnMS with Other Existing Management Systems
EnMS in energy-intensive companies The introduction of an EnMS is particularly important for energy-intensive companies, as this will have a significant impact with regards to cost reductions, energy savings, sustainable development and meet their committements towards legal and other requirements Multinational manufacturers recognize that the standard gives credibility and structure to an Energy Management initiative.
Emergence of Energy Management System Standard ISO 50001
The Importance of ISO 50001 Implementation ISO 50001 provides a framework of requirements for organizations to: Develop a policy for more efficient use of energy Fix targets and objectives to meet the policy Use data to better understand and make decisions about energy use Measure the results Review how well the policy works, and Continually improve energy management.
The Importance of ISO 50001 Implementation (Cont D) It s an emerging market expectation. Many multi-nationals companies adopting this standard e.g. 3M, Coca Cola, Nissan, Volvo...etc. It provides a competitive advantage by providing for: Decreased energy demand/costs Decreased maintenance costs Cross functional alignment Continuous improvement culture Engaged mployees Environmental protection Sustainable management Projection of climate policies It provides an efficient framework for an energy management program
Steps for ISO 50001 Implementation Develop a plan of action and form team Perform gap Analysis Conduct facility Energy Review EnMS building Conduct Internal Audit to determine your level of maturity ISO Certification Audit (1 Stage & 2_nd Stage)
Barriers to Implementation of ISO 50001 Management focus is on production and not on energy efficiency Lack of technical training on systems energy efficiency (energy and management) Technical knowledge exists resides with individuals rather than with the organization process assets (OPA s) Poor monitoring system and data for overall operations
ISO 50001 Standard Structure It is based upon the following approach Plan-Do-Check-Act Plan: Establish an energy baseline Establish an energy policy Legal requirements Design Procurement of energy services Do: Energy review Establish energy performance indicators (EnPI) Energy management action plans Implementation Competence, training and awareness
ISO 50001 Standard Structure (Cont D) It is based upon the following approach Plan-Do-Check-Act Check: Control of documents Operational controls Evaluation of compliance Internal audits Monitoring, measurement and analysis Act: Non-conformities, correction and prevention Management review Control of records Documentation Communication
Practical Examples on Energy Conservation in Companies from Different Sectors Measures Sectors Investment in Euro Cost reduction in Euro per year Payback time (statistic) Savings in Mwh and tons of CO2 Installation of heat Exchanging device at different Locations Construction material industry / Brick production (Schlagmann) 925.000 around 450.000 around 2 years 3.225 t CO2 Checking the lighting situation in the furniture hall buildings Mail order selling (Baur) 0 5.500 0 48 MWh and 30 t CO2 New circulation pumps in swimming pools Hospitality industry (Hotel St. Georg, Bad Aibling) 4.000 3.200 1,25 years 20 MWh and 11 t CO2 Developing a new energy saving synthetic paint finishing system Car component industry (sector classification code) 133.000 (additional expenditre) 255.000 0,52 years 219 MWh electrical 4080 MWh thermal 120 t CO2 + 1.224 t CO2 Optimising compressed air systems Food industry ( Brauerei Haus Cramer KG) 62.500 55.000 1,1 years 775 MWh 300 t CO2 Own illustration based on Infozentrum UmweltWirtschaft Bavaria (2009).
Developing Action Plans Concerns / Subject Target Parameters Reference parameter Required investment Value of savings Pay-back time Avoided CO2-emission Lighting in office building To reduce the energy consumption for lighting by 10 per cent next year Energy consumption for lighting per employee in [kwh / employee] Yearly consumption 500 Euro Approx. 300 Euro / Year Approx. 1,5 years 3.243 kg / year Measures Time frame Until October 2012 1. Building awareness of the user 2. Stocktaking review of lighting power at work places 3. Using energy saving lamps and / or ballasts 4. Optimised positioning of lamps Person responsible, amount of work Provision of expenditures Energy Manager, 0.5 day, Company Technician 1.5 days By energy efficiency team budget
Examples of EnMS from Specific oil & Gas Companies Chevron Chevron has implemented the energy management system (EnMS) via its corporate-wide organizational System/Governance. Energy facilitators/coordinators and functional business units subject matter experts establish and enhance best practices that can be shared throughout the whole organizational structure (i.e. Functional, matrix and projectized) and conduct energy evaluations / review to prioritize energy conservation opportunities (ECOs) in order to develop action plans for allocation of budgets and personnel in an optimized way
Examples of EnMS from Specific oil & Gas Companies ExxonMobil ExxonMobil has implemented the energy Management System throughout the refining and chemicals, operations and production organization in establishing a separate energy management system for refining and chemicals and other energy management system for operations and production which eventually integrated to acheive the common target which is energy consumption reduction also seeking for continual improvement
Examples of EnMS from Specific oil & Gas Companies ExxonMobil ExxonMobil energy management system measurement has the following hierarchy: Global Measures, Diagnostic Indicators and Key Energy Variables Global Measures include corporate and plant management, plant /site energy index, energy expense profitability Diagnostic indicators include business teams, process engineers, equipment specialists, area / complex, implementation and lost opportunity Key energy variables include shift supervision, field operators, unit / equipment, targets and action plans
Examples of EnMS from Specific oil & Gas Companies ExxonMobil Energy management system roll-out process: Preparation : site orientation, select & train team, gather & review data and arrange logistics (3-6 months) Operations improvements & facilities enhancements: process units, major equipment, utilities systems, optimizations, modifications and adiitions (2-10 weeks execution) Deliverables: gap assessment, gap closing options, cost/ benefit analysis and milestone plan (0-8 years implementation) The duration depends on the size and complexity of the organization
Examples of EnMS from Specific oil & Gas Companies Repsol Organization structure include management group, business unit representatives, technical group and energy efficiency coordination Management group has management leadership: this person is in charge of the EnMS Each business unit has an EnMS representative normally these persons are all managers ; the reason is that they must have the authority to make decisions e.g. Allocation and release of budgets and other organizational resources Technical group :each business unit has an EnMS representative that has technical expertise i.e. Discussing objectives and plans, proposing improvements and actions to be approved in the management group Energy efficiency coordination coordinates with technical group and gives support to management leadership
Examples of EnMS from Specific oil & Gas Companies Solomon Associates Energy Intensity Index Solomon Associates have developed their Energy Intensity Index as ratio of the actual energy used by a refinery divided by a standard energy usage i.e. This ration is dimensionless Each generic process unit type used in refineries has been assigned a standard energy factor determined by Solomon Associates from an analysis of their corporate knowledge databases which include extensive information and data about the majority of world refineries for a long period of time The lower the energy intensity index the better the performance of the refinery
Examples of EnMS from Specific oil & Gas Companies Energy intensity indicator or intensity index: The Energy Intensity (EI) indicator of a business unit or facility compares its actual energy consumption with the consumption a reference facility with the same characteristics and activity This indicator shows how the actual energy consumption of facilities improved or worsened compared with a base year. Periodic monitoring of this indicator helps a facility track the relative status and progress of its energy management activities (maintenance, operation, etc).
Examples of EnMS from Specific oil & Gas Companies Energy intensity indicator or intensity index: Energy savings can be calculated based on percent changes of an EI indicator relative to its base year. For example, using a base year of 1990, then EI1990 = 1. If, for example, in 2010, EI2010 = 70, then this would represent a 30% energy saving in 2010 compared to the energy that would otherwise have been used in 2010 at 1990 levels.
Examples of EnMS from Specific oil & Gas Companies Enppi Enppi established, documented, maintained and implemented EnMS in accordance with ISO 50001 and become certified for it Enppi developed its own procedure and action plans both on corporate and projects level in order to reduce energy consumptions Enppi developed EnPI in order to measure its performance against pre-determined values in order to take corrective actions/ preventive actions in case of any departure against established performance baseline Enppi achieved reduction in its headquarter energy consumption by 30% from its original energy consumption
EnMS & Environment Reduction in power consumption and / or energy will have a direct impact in reduction of greenhouse gas emissions that is closely related to global warming and climate change. Existing technologies with an attractive internal rate of return can cut the growth in global energy demand by half or more within 15 years. Industries around the globe can cut CO2 emissions 19 to 31% using proven technologies and practices
Around the World Denmark's Wind Energy Output Exceeded National Demand On July 15th Denmark s production of wind energy reached 140% of the national electricity demands. The surplus power was exported to surrounding countries Norway, Sweden and Germany. In 2014 approximately 43% of the electrical power requirement for Denmark was provided by wind.
Around the World (Cont d) Sweden Aims to be World s First Oil-Free Nation Sweden has set an ambitious goal to achieve a completely oil-free economy by 2020, without building more nuclear power plants. The Swedish government says it intends to replace all fossil fuels with renewable alternatives.
Around the World (Cont d) Uruguay Spends $2.6 Billion to Become South America Wind Leader Chairman of the state-owned electric utility UTE, announced that Uruguay plans on increasing its electrical power generation from wind 13% by the end of 2017. This would bring the country s total wind generation capability to 38% of its power requirement.
Conclusions ISO 50001 seeks to support organizations to use energy more efficiently, through the development of an energy management system (EnMS). Complying with ISO 50001 gives organizations a competitive advantage in the marketplace. ISO 50001 would enable businesses to systematically set and reach energy use goals, and realise energy cost savings. Needs enabling policies to realize its global potential for GHG emissions reductions
References ISO 50001:2011 Energy Management Systems-Requirements with Guidance for Use Energy Management Systems in Practice, ISO 50001-A guide for Companies and Organizations by Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, Germany, June 2012 Guidelines for Implementing ISO 50001Energy Managment Systems in the Oil & Gas Industry by IPIECA, OGP, UK, 2013, OGP Report No. 482 Building Sustainability into Energy Efficiency presentation by Programa Pais de Eficiencia Energética, Ministerio de Energía, Aimee McKane Lawrence Berkeley National Laboratory, November 2010 Implementing ISO 50001 Energy Management System-A Practitioner s Guide by Apex Global Learning for Excellence, Chennai, India, www.assistasia.org Curbing Global Energy Demand Growth, McKinsey & Co., May 2007 International Energy Agency, 2007 IEP Newsletter Volume 5 Issue 4, Fourth Quarter 2015
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