Energy (data) management – why ISO 50001 alone is not enough

Knowledge database

Energy (data) management – or why ISO 50001 isn't everything

Time and again we are confronted with the question: "You sell energy management systems, don't you?" The answer is always the same: "Yes and no." Our product portfolio includes components, software, and solutions for recording and analyzing energy-related data and thus forms the basis for a range of possible tasks and objectives, and therefore also for an energy management system.

ISO 50001

ISO 50001 is the standard that governs the introduction of an energy management system. The focus here is on the term "management system". Based on other management systems such as ISO 9001 or ISO 14001, this is a methodology for setting goals, implementing them systematically, and eliminating the factor of chance as far as possible. In this context, the term "goal" should be understood more along the lines of "the journey is the goal".

The PDCA or Plan-Do-Check-Act system is a CIP (continuous improvement process) that gradually examines processes and procedures for their optimization potential and defines measures and responsibilities as well as the necessary resources and time periods. The structure of ISO 50001 is similar to that of ISO 9001 or ISO 14001 and can therefore be easily integrated into existing management systems, which significantly reduces the effort required for implementation.

The word "check" contained in the PDCA process also immediately shows the reference to the topic of measurement data acquisition and evaluation, or in other words: Energy data management. Without measurement, no target/actual comparison, no benchmark is possible. Although ISO 50001 does not contain any clear specifications regarding the scope and frequency of energy measurements, practice shows that without a minimum of measurement technology for continuous recording, at least for all major consumers, potentials can only be determined to a limited extent and savings targets can therefore not be achieved comprehensively enough. Customers who have achieved their certification with a minimum of measurement effort recognize the benefits of more extensive measurement across as many consumers as possible during the ongoing PDCA process.

Our measuring systems are scalable and grow with the customer's requirements. Existing structures can be adopted just as easily as our measurement devices can be integrated into existing systems.

In connection with the introduction of ISO 50001, questions are often asked about the verification and subsequent calibration of measurement devices. The standard prescribes neither one nor the other. Measurement devices in the form of calibrated meters are just as little prescribed as recalibrating measurement devices at regular intervals. This would also mean an unreasonable amount of effort, as digital measurement devices cannot usually be calibrated when installed. As such the company to be certified must only ensure the comparability of the measurements in the different periods and document the verification by whatever means. For our universal measurement devices, this means that when used as intended (ambient temperature!), measuring accuracy is still greater than that of conventional meters in their delivery condition, even after many years. In practice, we recommend a random comparison or parallel measurement of the power and work values with a high-quality measurement device such as our MRG 605 or MRG 511 measuring case using our current transformer measuring terminal strips.

Who needs ISO 50001 anyway?

(current German legal situation 2013)

Information on the topic and how to apply can be obtained from the Federal Office for Economic Affairs and Export Control: www.bafa.de

EEG (Renewable Energies Act) §40 ff. – EEG levy reduction

Under certain conditions, companies are entitled to apply for a reduction in the EEG levy:

Company must be in the manufacturing industry
Share of electricity costs at least 14% of gross value added
Annual consumption must be at least 1 GWh per site
From an annual consumption of 10 GWh, ISO 50001 certification is required to achieve the reduction

The regulation is intended to ensure the international competitiveness of energy-intensive companies. Due to the increase in the share of renewable energy producers, the EEG levy is likely to continue to rise sharply, which will indeed put energy-intensive companies at a significant competitive disadvantage. Despite all the half-truths that are spread in the media on this topic, practice shows that the lion's share of all companies that have applied for and received approval for the EEG reduction are actually energy-intensive companies and are in international competition. A much larger proportion of companies with a high electricity consumption of >1 GWh per year already fail to meet the 14% value-added hurdle in the approval process.

Applications and information can be obtained from the relevant main customs offices: www.zoll.de

StromStG (Electricity Tax Act) §10 – Peak balancing

Companies in the manufacturing sector can benefit from peak balancing under certain conditions in accordance with §10 StromStG. The company may be exempted from or refunded the tax burden remaining after application of §9b StromStG. This "relief in special cases" (known as peak balancing) is only granted if the tax burden exceeds €1,000 in a given calendar year (deductible/basic amount). The amount of relief depends on the difference between the electricity tax, which exceeds the basic amount, and the (notional) relief resulting from the fact that pension insurance contributions have fallen since the introduction of the electricity tax (for general pension insurance from 20.3% before the introduction of the electricity tax to currently 18.9%; with an employer contribution of 50%, this meant a reduction of 0.7% for employers in 2013; the "difference"). A maximum of 90% of this difference will be waived, reimbursed, or refunded. This calculation formula means that companies with high electricity consumption and few employees (subject to pension insurance) benefit particularly from peak balancing.

Since 2013, proof of an ISO 50001-certified energy management system has been required for large companies in order to obtain the peak balancing scheme. For small and medium-sized enterprises (SMEs), an energy audit in accordance with DIN EN 16247-1 is sufficient.

From practical experience:

Managing Director F. to Operations Manager A.: "How much electricity do we actually use?" Operations Manager A.: "I'm not sure, but definitely a lot!" Managing Director F.: "Make sure that this changes!" Operations Manager A. to Plant Electrician M.: "We need to get the electricity costs down, take care of it." One year later. Managing Director F. to Operations Manager A.: "Electricity costs are still so high, how can that be?" Operations Manager A.: "I'll have to ask M. about that." Operations Manager A. to Plant Electrician M.: "We're still paying electricity costs like crazy. How is that possible, I told you to take care of it!" Plant Electrician M.: "Yes, boss, but the Controller cut the money for new drives, then the colleague was ill for four weeks and you know, day-to-day operations, it’s merciless, the phone rings all the time and everyone wants something from you!"

. .. this would not have happened with ISO 50001!

Who else needs an energy management system (EnMS)?

Basically, every company with a certain level of energy consumption and a large number of different consumers and processes benefits from the introduction of an ISO 50001-compliant energy management system. The underlying system ensures targeted measures to reduce energy costs in the long term. In addition, an ISO 50001-compliant EnMS will also become increasingly important in future as a marketing tool for presenting a green and environmentally conscious corporate philosophy. It must be admitted that professional companies do not necessarily have to have a certified management system in place in order to sustainably reduce energy costs. In addition, there are countless companies that do not meet the legal requirements for an EEG levy reduction or peak balancing and therefore ISO 50001 is not an inevitable topic. The energy costs are nevertheless high. Anyone who creates the necessary transparency with an energy data management system from Janitza lays the foundation for sustainable, energy-conscious management. Energy management represents a closed control loop with the aim of continuous improvement.

Overview of ISO 50001, energy efficiency, and funding opportunities

The following pages help you with the topics

Federal Office for Economic Affairs and Export Control: www.bafa.de
At the main customs offices: www.zoll.de
DENA – German Energy Agency: www.dena.de
The DENA list of certified energy consultants: www.energie-effizienz-experten.de
Kreditanstalt für Wiederaufbau: www.kfw.de
A comprehensive overview of all support measures: www.foerderdatenbank.de
Federal Ministry for the Environment, Nature Conservation and Nuclear Safety: www.bmu.de/energieeffizienz
NRW Energy Agency: www.energie-im-unternehmen.de IHK, T.V and DEKRA on their state-specific websites

Peak load management and network charges

Another important aspect of cost reduction that can be pursued with an energy data management system is controlling and reducing peak loads. Electricity supply companies calculate the network charges based on the highest load measured within a quarter of an hour. This value may then apply for the entire billing year. Nevertheless, it is possible that this value has simply arisen arbitrarily or by chance. It often happens that the actual "troublemakers" in generating peak loads are not immediately recognizable.

Only those who create transparency about the load profiles of their main consumers are able to take active countermeasures. This can be done by switching off consumers in a targeted manner, by switching on your own generators or, where this is not possible due to technical processes, by means of delayed switch-on processes or by down-regulating non-essential process operations. Another, but often unknown, aspect is that according to §19 Para. 1 StromNEV – special forms of network usage, supply companies must offer their customers a reduced monthly power tariff if the peak load measured once is significantly higher than the company's normal load due to special circumstances.

Load management and optimization of production processes

It is not only the peak load that increases electricity costs. Studies in large manufacturing companies have shown that, depending on the process, electricity consumption of several gigawatt hours per site is sometimes generated annually during non-shift times and idle phases alone. A fine-meshed network of measurement points within the production structures in connection with modern PLC controllers and production control systems enables automated optimization in realtime at a high level. Janitza measurement devices are ideal for this task thanks to their open communication interfaces, high sampling rate, and measuring accuracy.

Load management and electricity purchasing

Anyone who knows their load profiles and buys electricity on the spot market can of course do so with precise knowledge of their volatile demand based on their load profiles.

Subsidies and public funds

The state provides extensive assistance for implementing measures and investing in systems and equipment to increase energy efficiency. From low-interest loans to investment grants and the costs for the (sometimes mandatory) certified energy consultant. The list is long and the offers are constantly changing.