ESOS in Processing - (Energy Audit Scheme & ISO 50001)

ESOS in Irish Processing(The Energy Audit Scheme - is the ISO

50001 path right for you?)

RDS, DUBLIN, 9TH & 10TH SEPTEMBER 2015

Mike Brogan, CEO & Co-Founder

QSET software

Energy consultants large MNC’s(IS 393 software)

Members EN/ISO 50001 committeesFirst installs:

buildings & industry

EN 16001 software deployed

Enerit ISO 50001 software launched

20 years in Management System SoftwareISO 9001, ISO 14001, OHSAS 18001

1995 2004 2006 2008 2010 2011

Enerit Founded

Under the DIRECTIVE 2012/27/EU Energy Efficiency Directive [EED] all EU countries are required to use energy more efficiently at all stages of the energy chain from production to final consumption.

The EED establishes a set of binding measures to help the EU reach its 20% energy efficiency target by 2020.

EU countries required to transpose the Directive's provisions into their national laws by 5 June 2014.

Energy Efficiency Directive

Ireland’s national E.E. target is

31,925 GWh or 20% saving by

2020 and €2.4bn

The Energy Audit Scheme has been established by SEAI to implement Article 8.

Energy Efficiency Directive – Article 8 Article 8 – (Energy Audits & Energy Management Systems) of the Directive has been transposed into Irish Law as S.I. No. 426 of 2014 European Union (Energy Efficiency) Regulations 2014.

Under the legislation large organisations (non-SME and public body) are required to carry out an energy audit by 5 December 2015 and every four years after that.

The UK Government established ESOS to implement Article 8 (4-6) through the ESOS Regulations 2014.

ESOS – Energy Saving Opportunity Scheme

https://www.gov.uk/guidance/energy-savings-opportunity-scheme-esos

90% of total spend/use

Different routes

Submit notification to Environment Agency

If ISO 50001 Lead Assessor not required

Penalties for not doing audit up to £50,000

• 14,000 business notified• 152 competed in August

Does it affect You?Does your

company quality for Energy Audit Scheme (EAS)?

Employees > 250 ?

Turnover > €50m?

Balance Sheet > €43m?

You are “Large Enterprise”

Participation in EAS is

mandatory

You are “Large Enterprise”

Participation in EAS is

mandatory

You are not a “Large Enterprise”

Participation in EAS is NOT mandatory

You are still encouraged to

undertake energy audits – they may

help cut costs

Based on legal entity

status registered in

Ireland

ESOS only

applies to UK.

Legal entity in Ireland must comply with

EAS

EAS & Public Sector

Large Enterprise criteria applies

Individual buildings, any one of which has a total useful floor area of over 500 m2 or an annual energy spend in excess of €35,000 this requirement will apply in due course

• Introduced on a phased basis• Phasing details of eligibility thresholds and

timescales will be published in the Public Sector Energy Efficiency Action Plan later in 2015.

What does it cover?

kWh

Applicable to All Sectors – based on criteria regardless of the sector.

Air or sea: journeys that

start and/or end in Republic of

Ireland

Road Freight: Only

if you pay for the fuel

Rail travel: N/A unless you are a rail company

Cars: company cars and

fleet vehicles

Energy Audit Scheme – Derogation

Ref: Energy Audit Scheme Guidance Notes & FAQs

Do you have GHG Permit?

(iii) Does it cover 70% of your energy

use?

(i) Is it valid on 5th Dec

2015?

(ii) Minimum

audit requirement

s (Annex VI)?

(iv) implementing through SEAI programme?

(iv) Energy review complete by 5th Dec (70% energy use)? Appoint

Registered Energy Auditor

to confirm

(iv) Certified by June 2016?

Is it valid On

5th Dec 2015?

(ii) Minimum

audit requirement

s (Annex VI)?

(iii) Does it cover 70%

of your energy use?

Demonstrate eligibility

with evidence

Present Results & Sign-Off

ByCEO

ESOS compliance by

ISO 50001 does not require

verification by Lead Assessor

ISO 50001 Route• Internationally recognised approach for

effective management of energy consumption.

• Used by MNCs across its operations.

• Meet European mandatory auditing schemes in other countries.

• Management system with embedded procedures and controls

• Review and Continual Improvement

• Integrate with (ISO 9001, ISO 14001)

• Energy Planning Process covers the Energy Audit Scheme (& ESOS) and much more…

Ref: ISO 50001 standard

approach are 13.7% versus Business-as-Usual approach of 3.6%.

References: http://eetd.lbl.gov/sites/all/files/aceee_sep_paper.pdfhttp://www.superiorenergyperformance.net/results.html

ISO 50001 proven savings!

Annex VI - Minimum criteria for energy audits and Energy Management Systems

..up-to-date, measured, traceable operational data; … a detailed review of the energy consumption profile……build, whenever possible, on life-cycle cost analysis (LCCA)… … identification of the significant opportunities for improvement. ….clear information on potential savings. … storable for historical analysis and tracking performance.

Energy Audits

No template provided - It depends on the scale and nature of the operation

• ISO 50002: 2014 Energy audits: requirements with guidance for use• EN16247 Parts 1-4 covering audits in buildings, process and transport• CIBSE AM5:1991 Energy Audits and Surveys

Energy Audits

Can use previous energy audits– Must have been undertaken since September 2014– Completed by a Auditor on the Register of Energy Auditors– Must meet the minimum requirements in Annex VI

Sampling of sites with similar business operations can be audited

– must be 70% of energy use

Internal Auditors must be a Registered Energy Auditor

– signed-off by CEO or senior director

Sept

2014

Energy Saving Measures/ Improvement Opportunities

The cost savings should be based on a life-cycle cost analysis (LCCA) where practicable

– demonstrates if investment will be economical over its entire life by accounting for all the costs during a given period of time.

– These types of cost analyses are common accounting methodologies for many types of financial investments

“Energy audits shall allow detailed and validated calculations so as to provide clear information on potential savings.“

LCCA not always

practical so other

approaches (e.g. simple

payback period), may

be used.

Register established by SEAI in June• 47 Energy Auditors registers as of 28th AugustNot all auditors will be appropriate in all circumstances Internal personnel are eligible to register o Audit signed off by two senior authorised signatories

Energy Auditors Application Process Application form Normal tax and insurance certificates Degree / qualification certificates etc.o Minimum qualification – relevant technical discipline (Level 7) o Relevant post qualification experience – seven years o Have an additional ‘title/registration’ - either robust assessment of energy

experience/competence or this combined with examination Adherence to Code of Practice

Energy Auditors

SEAI recommend that organisations:- Assess Auditor Competence (e.g. BSI PAS 51215:

Energy efficiency assessment – competency of a lead auditor)

- Get 3 quotations

Compliance ProcessNot required to submit audits to SEAI

Energy Auditor presents results to senior management and sign-off by CEO or Senior Director

• If internal Auditor – sign-off by two senior personnel.

Audits may be required for quality assurance purposes

No penalties in 2015 – compliance assessment and penalties introduced in 2016 (ESOS penalty up to £50,000+)

Audit costs depend on size of operation and work already done – up to individual companies to select appropriate auditor and negotiate fee

Summary

“Large Enterprises” – EAS applies to youISO 50001 can be used for complianceNo Penalties yet but coming so why wait?ISO 50001 route makes sense for “Large Enterprises”There is time especially if you sign up to SEAI programmeThere are plenty of skilled auditors available and Enerit tools can help.

Don’t simply comply – apply!• Significant savings to be made

Questions?

Contact: [email protected]