ISO 50001: ENERGY MANAGEMENT SYSTEM

1. ISO 50001 What is it?

ISO 50001 (the 50001 International Standard for Organization) is an energy management
system (EnMS), helping organizations/enterprises continuously innovate in managing and
using energy effectively. This system does not specify effective criteria in detail but it sets
requirements for organizations to join in and commit to improving energy usage frequently.
Energy Management System ISO 5001 Terms and Definitions (3.9) points out: Set of
interrelated or interacting elements of an organization to establish energy policy and objectives
and to achieve those objectives.

2. ISO 50001 Why it appears?

Nowadays, all energy saving solutions for buildings are in local levels while comprehensive
and systematic ones are also critical. The low efficiency systems consume energy twice higher
than optimized ones, so this causes great waste of energy and money. Therefore, establishing
an energy management system is very important. From these requirements, International
Standard for Organization (ISO) issued ISO 50001 Energy Management System Requirements
and Instructions launched by the end of June, 2011.

3. ISO 50001 Which buildings it suits for?

All organizations can apply ISO 50001 to set energy objectives to suit their type and capability

Potentials on energy efficiency in this region are huge, even for buildings which are newly built,
using and nearly renovated.

For newly built buildings, if carrying out architectural design solutions synchronously, using
energy saving materials, installing and operating devices with high energy efficiency and
having energy management system, we can save energy of 30% 40% compared with other
buildings.

For buildings in operation and nearly renovated buildings, if the energy management systems
are launched, we can save energy of 15% 25%.

4. ISO 50001 what its advantages

ISO 5001 drives organizations toward achieving such basic objectives and benefits as:

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Reducing input cost on energy:

Improving operating and managing activities

Economizing energy and using effectively energy sources based on available
resources.
Pushing up innovations relating to energy usage and consumption
Driving toward using effectively energy consumption devices
Evaluating and prioritizing applications of technology and new devices which
enable to save energy.
Creating favorable conditions to compare, measure and set reports on saving
energy
Creating favorable conditions to spread information on energy management
Highly adapting to other management systems such as ISO 14001, ISO 9001

Raising prestige and capability of organizations:

Popularizing and multiplying practical actions on saving energy in community

Establishing patterns to improve energy efficiency through supply chains
Reducing negative effects on environment by taclking carbon dioxide and other
greenhouse gases emission (GHGs).

Many benefits brought by ISO 5001 can be seen in the Hive building Schneider Electric
headquarters near to Paris the first building achieved the ISO 5001 certification all over the
world. With the square of 35.000m2 and 1850 staff members, Hive has reduced energy
consumption from 150kWh/ m to 78kWh/ m and raised awareness on energy efficiency for
their staff.

The Hive building

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Some organizations using ISO 50001:

Coca Cola Heritance Ahungalla Cork University (UCC)

Hotel Sri Lanka Ireland

Introductions The largest drink The top five star resort of The first university
manufacturing company in Sri Lanka, the first hotel achieving the ISO 50001
Europe and the first one in achieving the ISO 50001 certification all over the
the world achieving the ISO certification. world.
50001 certification The hotel has 152 rooms
with total area of more
than 60000m2

Representatives Ian JohnsonIan Johnson, Refhan Razeen, Hotels Maurice Ahern, UCCs
General Director of Coca General Manager. Director of Energy and
Cola Enterprises Telecommunications
Management.

Companys 1. Reduce carbon emissions Reduce energy 1. Promoting activities on

expectations 2. Reduce energy cost consumption by 8% energy management for
when applying compared to the last all students and staff.
3. Improve energy usage
and after consumption of this year. 2. ISO 50001 is
and consumption.
achieving ISO dependent verification for
4. Upgrading energy
50001? 20 year effort on
management system.
implementing energy
innovations.

3. Increase supports from

high level managers.

Companys 1. Use high performance 1. Replace all incandescent 1. Install heating systems
design for blowing furnace. light bulbs with energy by using solar energy in
solutions and 2. Collect exhausted gases saving bulbs. O'Rahilly buildings.
initiatives on from air compression 2. Raise awareness of all 2. Upgrade lighting
energy efficiency systems. staff. systems in auditorium and
which are being parking.
3. Take advantage of 3. Launch effective energy
implemented to
sunlight. operating procedures for 3. Re install air
meet ISO 50001
4. Combine cans and bottles equipments and machines. ventilation systems in
requirements?

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 in room temperature to 4. Reduce hours of opening labs.
reduce energy consumed cold storage 4. Upgrade lighting and
by refrigeration devices. 5. Run washing machines heating systems for
5. Install real time control only when full of loads Crossleigh House Energy
systems (RCSs) to measure 6. Run cake mixture Research implemented by
how much, where and machines in off peak the Department of
when water and energy hour. Building and Environment
have been used. 5. Equip thermometer for
7. Carry out prevention and
maintenance schedule for the central buildings.
all devices and machines. 6. Use roof heat insulation

8. Use central distributed materials for Board rooms

air conditioners for five and Connolly buildings
areas from to in order 7. Upgrade building
to reduce energy in areas management systems
without customers. (BMSs).

8. Upgrade data storage

for controlling energy.

9. Monitor water usage

and push up works of
energy efficiency.

Benefits from 1. Continuously innovate 1. Reduce energy cost, Cork University is an

ISO 50001 energy efficiency especially after optimizing educational institution

2. Bring more financial central air conditioning which is using self

effectiveness for systems. proposed energy projects

enterprises. 2. Raise staffs awareness and management systems

3. Save 10% and 16,5% of through conferences, in order to support

water and electricity training courses and researches and improve

leaflets. energy sustainability. And
consumption.
the energy management
systems are currently
being showed in Delhi by
Liam McLaughlin ISO
50001 consultant.

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5. Steps for applying ISO 50001

Like other management systems of ISO, ISO 50001 was based on the PDCA cycle (Plan Do
Check Act), so the energy management system of each organization can be more and more
completed. This is also one of the best conditions for each organization to integrate the energy
management system into other available systems. Steps of the energy management systems are
described as follow:

Step No.1: Designing the policy on energy

The energy plan is lodestar for applying and upgrading the energy management system of the
organizations in order to make the energy usage of each organization more effective. This is
considered the first step and firm foundation to build and implement the energy management
system. Moreover, the energy policy must be checked frequently to ensure the energy
management system runs fully and smoothly.

An outstanding example of the energy policy

We will order effectively economical and feasibly energy saving products and services

All new projects have to undergo an energy assessment in order to ensure that energy usage is
economically and technically feasible.

Our company is willing to follow other rules and principles on using energy.

The policy will be updated periodically to show our commitment to well managing energy.

The policy also will be transferred to all ABCs employees.

Date/Month/Year

ABC Management Board

Name/ Position

Step No.2: Making plan on energy management.

This is basic step in setting up the energy management system. The tasks which need to be
fulfilled in the process consist of:
1. Identify legal requirements and other requirements on energy which should be followed and
these requirements include: international and national legal requirements; regional, provincial
and sectoral legal requirements and legal requirements of local authority.
2. Examine the situation of energy usage of each organization, thus evaluating and defining the
steps on consuming large amount of energy in order to find out innovation chances.

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3. Find out the Energy Performance Index (EnPI) and energy baseline of each organization. The
EnPI and energy baseline are considered the Measure of Effectiveness (MOE) for the
improvement of the energy management system.

The energy baseline is used to describe the energy consumption of the organization
within one year and to compare the effectiveness before and after innovation measures
are taken.
The EnPI is the value or qualitative measurement of energy efficiency which can be
defined on the basis of the best performance achieved.

Example of the energy baseline

The above line chart shows the energy baseline reflecting one year energy consumption of the
base year. The energy baseline in the year after will be compared with the previous one and the
gap between two lines shows the energy saved. In case of the changes on scale, technology,
products, process which impact on energy consumption, there is need to set new energy
baseline (updated baseline) in view of comparing with the real one. Annually, the organization
is able to identify the effectiveness on energy consumption in comparison with the base year
based on the energy baseline.

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Example of the Energy Performance Index (EnPI)

Output value (Unit) Input energy (Unit) Value of EnPI

Weight (tons/kg) Heat (Btu) Btu/kg, Btu/ton

Number of products (pieces) Heat (Btu) Btu/piece

Number of customers (people) Heat (Btu) Btu/person

Weight (tons/kg) Electricity (kWh) kWh/kg, kWh/ton

Number of products (pieces) Electricity (kWh) kWh/ piece

Number of customers (people) Electricity (kWh) kWh/person

Square (m2 Electricity (kWh) kWh/ m2

4. Launch goals, criteria and programs on energy management so that each program shows the
steps in detail which help the organizations achieve their own goals and criteria, including time,
available human resources and people responsible for the implementation of the program.

In fact, all energy management programs are assessed on the basis of criteria set by the
organizations before carrying out. The following example shows some of basic criteria and
various levels of care to help organization make their decision much easier.

Criteria for energy projects

Level and description
Criteria
1 2 3 4

From 500.000.000
Annual energy Less than Trn
200.000.000 to n
saving cost 200.000.000 2.000.000.000
500.000.000 2.000.000.000

Deployment More than one From six to 12 Less than six

Immediate
length year months months
More than From two to From six to 12 Less than six
Payback period months
three years three years months

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 Negative
Negative
Impacts on impacts
impacts within
environment, beyond No impacts Positive impacts
permissible
health and safety permissible
limits
limits

(The above table is for reference only; each criterion is up to the organization)

Example of goals, criteria and programs on energy management [4]

Starting date /
Regions Energy criteria Implementation
Responsibility Ending date

Reduce 3% of A --
Maintain gas pipe
coal consumption

B --
Reduce 2% of
Boiler system Control excess air
coal consumption

Reduce 3% of Install air C --

coal consumption conditioners

Step No.3: Implementating and managing the energy menagement system

The operation of the energy management system is launched. The output information of the
planning step is used for implementing and managing the system. The tasks should be carried
out include:
1. Identify demands on training, undergo training and raise awareness of Management Board
and employees.
2. Set up internal information systems as well as external information systems which relate to
energy management.
3. Establish and manage documents and records in order to control environemnt management
systems and to provide input information for the leaders decisions later.
4. Find out and control all activities of the organizations which consume large amount of
energy in view of conducting these activities in special condition.
5. Evaluate the chances on innovating energy efficiency in the process of designing and ordering
products of the organizations.

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 Example of control plan [4]

Control
SEU Control measures Control frequency
responsibility
Questionnaire Monthly

Boiler Operation notes Daily

Parameters Shift

Step No.4: Checking the energy management system

This step aims to evaluate the effectiveness of the energy management system and to provide
more information for the managers assessments.

1. Monitor, measure and analyze each component of the energy management system to achieve
goals and to ensure the effectiveness of the whole process compared with the criteria.

2. Assess the compliance with the rules and principles which must be followed by the
organizations.

3. Evaluate periodically the internal system of each organization to ensure its suitability to ISO
50001 requirements.

4. Identify unsuitable points which have happened or can be happened to repair or immediately
prevent.

5. Have process to examine documents.

Steps No.5: The managers consideration

The Management Board needs to check or test the energy management system basing on
measurement data during operation process, results on internal evaluation, goals and criteria,
thus proposing changes on the energy management system in order to meet the new
requirements.

6. ISO 5001 certification How to achieve it in Vietnam

On December 2012, ISO 50001 officially became the National Standard (Code ISO 50001)
published by Vietnams Institute of National Standards. These are basic ways of accessing to the
requirements of this standard:

To achieve ISO 50001 certification, organizations should understand these issues clearly:

Ways of meeting ISO 50001 requirements:

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To meet ISO 50001 requirements, organizations can apply two forms depending on capability
and size of each organization:

Self applying forms basing on understanding ISO 50001.

Employing consultants from outside. Unlike other management systems (environment
and quality), consultants need deep knowledge not only on the management system but
also on the techniques and energy efficiency and management

Ways of achieving ISO 50001 Certification:

After meeting all requirements of ISO 5001, organizations can publicize its conformity or the
third party certification. The third party can be:

Compliance Certification Center QUACERT Directorate for Standards, Metrology and

Quality, No.8, Hoang Quoc Viet Street, Cau Giay District, Hanoi, Vietnam.
TV NORD Vietnam, Room 803, Thang Long building, No. 105 Lang Ha Street, Dong Da
District, Hanoi, Vietnam and other certification companies.

For further information, please click here.

References
[1] http://www.iso.org/iso/home/news_index/news_archive/news.htm?refid=Ref1618
[2] http://www.iso.org/iso/home/news_index/news_archive/news.htm?Refid=Ref1537
[3] http://www.tieuchuan.vn/vi/quan-ly-chat-luong/quan-ly-nang-luong-he-thong-quan-ly-
nang-luong-iso-50000-iso-50001-dan-nhan-nang-luong-tiet-kiem-nang-luong-hieu-suat-nang-
luong/725-he-thong-quan-ly-nang-luong-iso-50001-tiet-kiem-nang-luong-dan-nhan-nang-
luong.html
[4] Nghin ph ng php p ng ISO 50001, Tr Th Thu Ph ng, 2013
[5]http://www.energyadvantage.com/blog/2010/02/monitoring-verification-verifying-
energy-savings/

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