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The global policy landscape of ISO 50001 energy management systems

While many options exist to improve industrial demand-side energy efficiency, energy management systems (EnMSs)—particularly those aligned with ISO 50001—are proven to drive continuous and meaningful energy performance improvements. Governments leverage these EnMSs in their policies to advance national objectives including enhancing industrial competitiveness and achieving environmental goals. Existing research has focused on the impact of EnMSs at the company level, while comprehensive work on EnMSs in a global policy context is lacking. We seek to close this gap by investigating the extent to which current national policies incorporate the utilization of EnMSs, particularly the ISO 50001 standard. Our paper employs a hybrid approach, combining a literature review and expert interviews across 28 governments representing > 86% of global primary energy consumption. We dissect policy mechanisms, governance levels, underlying motivations, and trends in present EnMS policies. We find that > 96% of the investigated countries include EnMSs within their policy scope; 90% of policies including EnMSs utilize the ISO 50001 standard in some capacity. Primary policy motivations include decarbonization, energy savings for industrial competitiveness, and energy system resilience. We highlight that in the EnMS context, policy mixes—combining economic incentives, regulatory instruments, and information-based approaches—are more effective than standalone measures. Our work provides a novel global overview of governmental EnMS policies, moving beyond whether EnMS should be adopted to focus on how they can be implemented most effectively.

Moreno, Francisco Luis↗

ISO 50001-Based Energy Management Systems as a Practical Path for Decarbonization: Initial Findings from a Survey of Technical Assistance Cohort Participants

Organizations face rising pressure to take action to reduce their climate-affecting emissions (i.e., decarbonize). While many responses are possible, an essential approach—strategically managing their energy consumption as an essential business practice via an ISO 50001-based energy management system—is not yet widely recognized as a framework for decarbonization. This study analyzes interim survey results from 24 organizations (a 48% response rate) implementing a rigorous energy management system, one deployed by the U.S. Department of Energy as “50001 Ready”, to test whether participating organizations perceive the energy management system under development as an essential aspect of their decarbonization efforts. The results are preliminary in nature, given the ongoing nature of the program and associated data collection; however, they are sufficient to refute our hypothesis that energy management systems are perceived by organizations participating in 50001 Ready cohorts to primarily affect energy performance with little-to-no connection regarding decarbonization efforts. Major findings include that participants’ decarbonization targets and commitments are driven by market imperatives (highlighting the importance of ISO 50001 as a management system tool) and that they see energy efficiency as vital to decarbonizing. We conclude by suggesting future research directions to further establish the premise that energy management systems are an effective, efficient, and long-lasting decarbonization strategy.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Initial Findings from US Department of Energy’s Better Plants Virtual in-Plant Training on 50001 Ready

Manufacturing facilities use about 35% of the domestic energy in the United States every year. Implementing an effective energy management system (EnMS) is one of the most important approaches to improve energy efficiency. However, the implementation of EnMS is low for many countries (including the US) and even for energy-intensive sectors. The reasons for the low implementation rate of energy management systems had been investigated by multiple researchers, but very few studies have focused on the barriers and challenges of implementing ISO 50001-based energy management systems. To contribute to this understudied area, this paper discusses the implementation and outcomes of the first Better Plants 50001 Ready Virtual In-plant Training. This paper first provides an overview of 50001 Ready and the 50001 Ready Navigator Tool. Then, it provides details on this training event and its outcomes. Finally, it discusses findings from the responses to 40 live polling questions about the status of the 25 tasks of the 50001 Ready Navigator for participating companies, key components of the participating manufacturing companies’ energy management systems, and challenges and barriers that these companies are facing. The findings suggest that although many companies understood the importance of an effective energy management system, about half of them do not understand the required resources for building energy management systems, and most of them have only just begun establishing these systems and need more assistance and resources in multiple areas. More specifically, more assistance is necessary for the following: (1) improving corporate management’s understanding of the time and resources needed to build an EnMS as well as the benefits; (2) creating linear regression models for more accurate energy performance tracking; (3) understanding energy use, collecting and analyzing energy performance data; (4) optimizing equipment operational controls, and creating action plans.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Public – Private Partnership to Promote Efficient Manufacturing and Workforce Development (IAC Final Technical Report)

Through delivering ninety (90) energy assessments to small- and medium-sized manufacturing facilities in and around Tennessee, significant understandings were gained through providing detailed energy assessment reports to manufacturers and training seventy-seven (77) engineering students in which thirty-five (35) certified IAC students were recognized by DOE. The robust involvement of Tennessee Valley Authority (TVA), local utility and Tennessee Tech’s Cybersecurity Education, Research, and Outreach Center (CEROC) in majority of assessments made the technical operation very effective where leaded to 40.5% implementation rate of energy recommendations. Other benefits of the award to the public are a dynamic modeling tool capable of analyzing existing cooling towers for energy use optimization was developed and presented to DOE IAC, providing technical assistance to non-participating manufacturers in the form of workshop and training, publishing fifteen (15) peer-reviewed conference and journal papers as well as a book chapter in the area of industrial energy efficiency field, assisting the TVA Magnolia Combined Cycle Power Plant to become the First 50001 Ready Certified Power Plant in the U.S. through briefing them on ISO 50001 and 50001 Ready as well as providing an energy assessment to the plant, assisted the new IAC center at Clemson University with on-site and remote support, and provided assessment and training in unique areas of water, waste water, cyber security and smart manufacturing to our clients, students and community.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Energy Intensity Baselining and Tracking Guidance

Each company joining the U.S. Department of Energy’s (DOE’s) Better Buildings, Better Plants Program (Better Plants) commits to establishing an energy consumption and energy intensity (EI) baseline and to tracking its energy performance over a 10-year period against that baseline. The baseline must reflect a company’s energy consumption over a 12-month period, covering all its U.S.-based operations. Energy consumption is calculated by fuel type in terms of primary energy (also known as source energy). EI is broadly defined as the amount of energy consumed per unit of output produced. For this guidance document and for the program, the term energy performance represents an evaluation of a facility’s capacity to use energy efficiently. Metrics used to assess a facility’s energy performance can include EI, energy consumption, improvements in EI, etc. Establishing an energy baseline and tracking system is a critical first step in effectively managing energy use. Developing a baseline can help a company understand energy use within the corporation and give it a point of comparison to evaluate future efforts to improve energy performance. It can also support efforts to validate a company’s energy management activities, improve comparative analyses when using benchmarks, and help in predicting future energy needs. In addition, a company that normalizes its performance data can determine highly defensible measures of energy savings generated through implemented energy efficiency projects. Establishing a baseline and tracking energy performance is also a requirement for ISO 50001 certification. Although basic energy data can be collected through utility bills, most manufacturers will have to perform additional analyses to develop accurate and robust energy baselines and tracking systems. Energy is consumed in many ways within the manufacturing sector and can come from multiple sources. Energy is sometimes generated and sold to other parties or captured and reused on-site. External events can exert a significant impact on a facility or company’s energy use independent of any purposeful efforts to improve energy efficiency. Operational changes, such as production shifts—which may be inevitable for some companies over the 10-year period covered by the program—can also make a big difference in energy use. Since Better Plants asks companies to account for all their U.S.-based operations, mergers, acquisitions, and divestitures can also have significant implications for a company’s energy metrics. This document aims to demystify the sometimes complex baselining process. It devotes special attention to the task of normalizing and adjusting energy consumption to account for external factors, such as weather and production changes. A key recommendation is that companies use regression analysis to normalize their energy consumption data whenever possible. Regression analysis is a statistical technique that estimates the dependence of a variable (i.e., energy use in the context of Better Plants) on one or more independent variables such as ambient temperature, while controlling for the influence of other variables at the same time. A properly developed regression analysis can provide a reliable estimate of energy savings resulting from energy improvement strategies and projects by accounting for the effects of variables such as annual production levels and weather. DOE has developed a companion Energy Performance Indicator software tool (EnPI) to simplify the baselining process. This tool can run regression models, calculate changes in EI at the facility level, and automatically compile facility-level data into a corporate-wide metric. Note that although the relevant equations used to calculate EI are provided in this document, the EnPI tool will automatically perform most calculations for the user. Additionally, Better Plants Partners (Partners) can call on their Technical Account Manager (TAM) to help them establish a baseline and assist with the necessary calculations to track progress.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗