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Energy ManagementThe Danish Standard
Erik Gudbjerg
Lokalenergi A/S
UNIDO meeting. Vienna, March 21-22, 2007
1+1>2
Could you :
• Imagine a company without economical management system? – no
• Imagine a company without EMS– YES
Background for EMS in DK Denmark• The Danish EMS was developed in 1990 by the DEA• In 2001 EMS DS 2403 was introduced• DS 2403 is designed so that all companies can use it • The DS 2403 complies easily with:
–ISO 14001, Environmental management system–ISO 9001, Quality management system
Law on CO2 in 1992Energy intensive industries would be vulnerable
Voluntary agreements - a way to ease this extra burden On ”Process list” > 4 % of value added 3-year agreements
Danish experience show that companies can reduce energy consumption and energy costs by implementing:
An energy management system, even without concretesaving measures or investments
The savings achieved by focus on energy consumptionis given through the systematic approach of EMS
Typical savings of at least 5 to 10 % during the first years
Therefore EMS is an essential part of the Danish voluntary agreement
Barrier against EMS
• Lack of commitment from top management• Change of top management• Changes in project organisation• Project managers without project groups• Too busy producing…• Lack of time to digest the idea of EMS
• Renovation, enlargement of production facilities
• Bureaucratic administration (difficult grant procedures)
Success due to
• Real interest from top management• Real involvement from employees (project groups)• Time allocated to work with EMS• Stable organisation• Personal involvement• External consultants, sparring partners• External attention• Satisfying allocation of resources • Internal project groups, networking• Concrete results• Excellent communication
Elements of Voluntary Agreements
Eligible participants Energy intensive industry and non-energy intensive industry e-tax > 4%
Length of agreement 3 years
Company assessment Yearly
Payback investments 4/6 years[1]
Energy Management System Yes
Requirements on energy efficient purchasing and design
Yes
Special studies Yes
[1] Energy-intensive industry 4 years’ payback time, non-energy intensive industry 6 years’ payback time.
Energy and CO2 tax in Denmark
Heavy proces is melting, boiling etc.Light proces is neither heavy nor heating
Voluntary Agreements – DK
• An energy management system– Energy policy– Energy audit– Energy saving measures– Special studies– Maintaining of the process– Routines on e-eff Procurement– Routines on e-eff Design
is
EMS system
The energy policy is the corner stone
• It reflects top management’s commitment on energy related issues
• It defines clear targets• It shall be known to all
employees and to the public
3M's Energy Policy
Applicability This Policy applies to all the 3M U.S. and operations outside of the U.S. Introduction The objectives of this policy are to improve energy consumption efficiently, reduce cost, decrease capital investment, reduce environmental emissions and conserve natural resources. Policy Statement 3M ensures the effective use of energy to produce and deliver products and services to its customers by implementing the strategies listed below. Strategies
Improve energy efficiency continuously by establishing and implementing effective energy management programs worldwide that support manufacturing capabilities and customer satisfaction while providing a safe and comfortable work environment.
Emphasize energy efficiency as a factor in product development and in process and facility design.
Secure adequate and reliable energy supplies at the most advantageous rates and implement contingency plans to protect operations from energy supply interruptions.
Encourage continuous energy conservation by employees in their work and personal activities.
Support further development of internal and external energy efficient technologies. Cooperate with governmental agencies and utility companies on energy problems. Support national energy efficiency policies.
EMS system
The planning process– Energy audit + Update continually– Energy efficient procurement– Energy efficient design– Education plan– Information plan– Shall be written so that is read and understood by
everybody
EMS system
• Checking and correction– Monitor significant energy consumption
and activities influencing the energy consumption
– Regular assessment of energy consumption
– Establisment of key indicators– Review of the EMS
Energy ManagementEnvironmental Management
Quality Management
AuditSpecial Routines Policy, Goals,
Action Plan, Documentation, Evaluation, Communication, Education, Procurement and Design
Environment Plan
Maintenance
RegistrationCertification
ServiceContractsTraceability
DK Latest results from evaluation april 2005
Achieved energy savings of 28 companies of the survey and their expectations for the future
Estimated energy saving level related to starting point
< 1 % 1-5 % 5 - 10 % 10 -20 %
Year 1996-1999 1 14 8 4
Year 2000-2003 3 14 7 4
The future – expectations of savings next 4 years
10 15 3 0
Example – food-stuff company
• Production of cattle food • Soy meal, grain products, and other products, are mixed
• Grinded
• Steam and other fluids are added
• Passes an expander
• The mix passes through a pellet plant
• Energy consumption 5.9 GWh• Traditional energy efficiency proposals
• Motors, drive systems etc
• Saving potential: 300-450 MWh
Grinding
Humidifier
Pelleting
Mixing proces
• Energy management – brought the production into focus
• Production 12 t/h, designed for 20 t/h – Spec. 7.9 kWh/t
• By increased steam production, production could be increased to 15 t/h
– Spec. 5.4 kWh/t
• By increasing the size of motor of pellting mill by 50 kW to 250 kW the production was increased to 17 t/h
– Spec. 2.9 kWh/t
• Energy saving 795 MWh• Payback, only focus on energy 4.2 year, with production
improvement less than 1 year
Example – food-stuff company
Conclusions• In DK we believe that there is a need for a carrot to secure EMS implementation – e.g.
an energy tax system• Holistic approach all energy and processes• Realise that EMS is much more than energy
• Quality, enviroment, process optimization• A god energy manager is not a energy freak but a excellent EMS salesman
• There is a great need for a EU/world standard – it cannot proceed too rapidly
• There is a need for more energy management conferences or other possibilities to exchange experiences
• EMS systems have a role to play in other sectors in DK. The Agency has Agrements wíth
– 126 heavy industry– 175 grenhouses– 30 campsites / fishfarmers / entertainment parks
• Actually in DK we believe that energy mangement is for everyone
Energy mangement in the Persson family
MappingMeter readingCheck part consumption with mobile meter
Count appliances
Energy policyThe Perssons want to reduce their cost of energy and water and reduce their CO2 emission
The Perssons will do that will reduce energy and water consumbtion by technically and behavior means
The Perssons will reach their target by focusing on the substantial consumptions
Energy efficient procurement
Energy mangement in the Persson family
• Energy target
– Technical savings• Boiler and distribution system and hot water production
• Lighting, drying of clothes, standby
– Savings due to change in behavior• Heating, room temp
• Turn of unnecessary lighting• Defrost in refrigerator
• Dry clothes outside
• Turn off standby
Energy mangement in the Persson family
• The target of the family– Reduce energy consumption by 10% during the
first year and 5 % the following year– Collect information on energy efficiency and
water savings– Monthly readings and key figure
• Organization – Everyone has influence on the consumption meaning that everyone is
responsible– Mrs Persson is responsible for the system:
• Meter readings• Calculation of key figures• Training and information search• Information• Yearly update of the mapping • Arrange a yearly meeting
– Maintenance• Contract with installers
Energy mangement in the Persson family
Conclusions Denmark Sweden Ireland Agreement includes all kinds of energy
Yes No (electricity only)
Yes
Energy tax or CO2-tax Yes Yes No Reimbursement of tax in connection with agreement
Yes Yes No
Demand for Certification Yes Yes Yes Focus on LCC (Life Cycle Cost)
To some extent Very highly To some extent
Sanction if breach on an agreement
Yes Yes No
Standard for Energy Management
Yes (DS 2403)
Yes (SS 62 77 50)
Yes (IS 393)
Conclusions
• Recommendations– Denmark
• Introduce lifecycle cost
– Sweden• Include all types of energy
– Ireland• Introduce energy tax
?
