SEAI - Creating the right environment for ISO 50001 to thrive - John O'Sullivan,
Programme Manager SEAI
Thank you very much Dick and I am delighted to have the opportunity to speak with
you today after a really interesting and successful week for those of you that are
here from the TC242 meeting. And what I am going to speak to you about this
morning is our own strategy in Ireland that we have adopted and are developing in
order to maximize the potential for energy savings through the energy management
system. I think it has already been mentioned a few times of our successes in
Ireland. We’ve had an energy management system in place since 2005. And over
that time period through energy intensity improvement those in our energy
management network have realized savings that are now up to 150 million. And in
fact it’s 18% over a five-year period on an energy expenditure across our energy
efficiency network of close to 1 billion euros. So it is a very significant improvement
and achievement over the first five years. But what I get from members of our
program is what is going to happen next? How do we maintain these improvements?
We have achieved some very significant improvements initially over the first couple
of years and I think that was already mentioned by Marco’s presentation that
typically that you know 10, 15% is quite typical in the first time period. But is there
a strategy whereby we can continue to improve and be guided in that improvement
process over time. So our strategy in that regard was developing an energy
management security model and the purpose of this presentation is to introduce
you to it and also just to give you a little bit of the background as to how we got to it.
So I use the word Hypotheses, only because in the absence of data but I would be
very much of a strong opinion that a mature energy management system will deliver
more energy savings and also we can’t forget about non energy savings benefits for
the future. It provides a strategic road map as to how you can continually improve
and obviously the management system has to improve itself but having something
like a maturity model may help to understand how to get there or how you define
where you are once you get to a particular stage.
We all know that energy management systems can initially be rooted within the
technical services functions and utility functions of businesses and they can be
extremely effective and we can make those type of initial impacts very quickly but
we also know that if we can engage with other functions within the organization
such as the quality, engineering and the operations group who are demanding the
energy and are really setting the boundaries for how much energy we really need.
And if we can engage them within the energy management process then something
really special can happen and you can actually get to deliver real deep savings
through process optimization and through optimization of your facility through
your overall company. And following that deeper innovation actually can follow but
you need to take those steps to get there.
So the maturity model for us in SEAI – it’s very much a long term strategy for us to
try to continue to achieve long term performance for both of our programs: The
Energy Agreements Program and the LIEN which is the Large Industry Energy
Network in Ireland. And obviously to try to develop and help to develop the energy
management system process in Ireland for those that are users here. For an energy
user, what an energy user will get will be a method of diagnosis. So we hope that we
will give you a method of diagnosis of how maturely you may have advanced from
originally meeting what would be a compliant system. You will understand how well
the energy management system is integrated into the business and it is also a tool
that assists with the improvement process but I think most importantly it is a
shared energy management vision within the organization. And I think it is
important that an organization has that vision to kind of see where they can bring
the energy management system to as their business.
Very very briefly as a kind of another intro, this is our two organizations that I was
referring to; the Large Industry Energy Network has been in place for 16 years. The
last annual report, those of you who can pick it up here today. It has over 160
members and it represents up to and actually a little bit over 1 billion euro of energy
spend. But most importantly as a metric is that it’s almost 15% of our national
energy requirement. A subset of that group is our energy agreements program and
even though its approximately 50% in numbers of members that are also members
of the LIEN it actually represents 11% of national primary energy. So those that are
in our energy agreements program are committed and have made a commitment
with SEAI to implement an energy management system, which is now obviously ISO
50001. So we have now 11% of Ireland primary energy requirement in the future to
be managed by an energy management system. The table there on the right is
showing you the difference that we have seen over the last 4 years in energy
intensity improvement between those two groups that would be just in the LIEN
only and those that would be in the LIEN but using the energy management system
as a method of driving continuous improvement. It is clear that there has been a
separation in energy performance between. So again, it is not a hypothesis, I can
clearly say that the energy management approach in Ireland is really making a
difference to what maybe would have happened otherwise without it.
It’s been mentioned a few times already about the business. This is my business
slide, it’s a kind of a show me the money slide really. It’s what I use whenever I am
speaking with a new company who is trying to understand about energy
management. And when they engage with SEAI and our energy managements
program. And really the only thing, it’s a complicated slide and I won’t get into the
detail other than to show you that there is a point in time where you can obviously
see what could be regarded as a process shift, something happened, and what
actually happened was the introduction of the Irish energy management system –
IS393 and then in 2003 the introduction of the energy agreement program and you
can see that initial gain very quickly. And the blue oval is highlighting an 18%
improvement over 5 years for those that have moved with the program since 2005.
And it’s really an indicator of the impact that the energy agreements program and
therefore the ISO 50001 standard and other previous standards has had in terms of
energy efficiency improvement in Ireland. Normally when businesses see this graph
they say, we’re in, you know we should have been here already, it makes sense, if
160 companies are seeing this type of benefit.
So I just wanted to show what our strategy is to maximize impact within the
program. As a user of an energy management system you can implement it probably
in three different situations. You can implement it independently with no support
from, in Ireland, SEAI, who is the authority that is providing support in this area.
However you can implement it where there is a program requirement, which is in
the case of the energy agreement. And the idea of this is that from our point of view
as a strategy is that we impose through the agreement some additional needs, some
additional requirements that we have added to the requirements of the
management system. So it’s for us it’s an average of 1 special investigation per year.
And this is what I would call a performance push so we are pushing an additional
requirement. But we also, quite a lot of our work is more in the area of support. And
it is a voluntary engagement with the members to use those supports and this is
what I call a program pull. And we have again, you probably won’t be able to see this
on the slide but there is quite a lot of work we have been doing over the last 5 years
in this area and I am just highlighting the fact that, there with the red arrow that this
is what introduced the energy management maturity model. So at the moment the
energy management maturity model will be introduced as a proactive element of
the program but it may in the future become something we may add in future
agreements as a requirement.
So I am going to introduce you to the model. It might get a little bit technical for a
minute but I am going to keep that as short as possible. Considering the facilities we
are in I had to put something in my slides, which was a little bit stately, which fitted
the presentation occasion. So basically we have four domains, which is plan, do,
check, act. Everybody is familiar with that. With underneath that is 16 pillars and
those 16 pillars for those of you that are familiar with energy management systems
are essentially the clauses and sub-clauses that make up the standard. Underneath
the pillars is a foundation stone which we refer to as sub-pillars, maybe we should
have called it foundation, which are the requirements and some of the best practice
that are required by the requirements of the standard and those clauses of the
standard and there are 63 of those that we have identified and underneath that
what we have developed are attribute statements. And these attribute statements,
we are not providing people with solutions, we are not providing people with a
direction to take, we are just providing statements in the form of attributes so
companies can then decide what is the intent of those attributes and what do we
need to do as an organization to satisfy that intent, what does that intent mean, and
are we there yet? So it’s quite extensive, it took quite a lot of work. We have
probably been two years working on it on and off. We actually announced this at our
first international conference that we were doing this so it’s great to be in a position
to be presenting it here today.
So we have defined, it’s no different than any maturity model that anybody is
familiar with. We have defined 5 levels of maturity from emerging through to
innovating so we’ve got emerging, defining, integrating, optimizing and innovating.
And at the defining stage if you read the text there that that pretty much means
compliance, you are compliant with the energy standard. So then we’ve tried to
come up with attributes of an energy management system that we’ve described as
integrating, optimizing and innovating. It’s difficult to read that so I have a graphic,
which may help. At the centre of this graphic is level 1 and what that is, I know it’s a
bad picture, but what that is really meant to imply is the boiler room, that concept
and the old traditional view of energy management is start in the boiler room. So
that is very much the emerging concept. At level 2 we have started to introduce
significant energy uses and also the scope and boundary of the energy managment
system. So the idea here is that it is representing those who are compliant with an
energy management system. Now you are going to see some terms that we have
already kind of touched on earlier in the first session. We are introducing the
concept first of all of value stream; it brings in the operations element of a business.
A value stream for those of you who are not familiar is about where value is being
added with the products or the output that you are developing for your business,
which is making you money. So it is to try to make the connection between energy
performance and how value is being added. The green graphic and that’s the end of
the show, a factory. So what you are doing now is you are integrating with the full
factory, you are integrating across functions, across activities, to try to get that
engagement so that you can investigate deeper opportunities. At level 4 we start to
introduce the idea of supply chain where you are optimizing. There are really 2
ideas here. You can obviously look up and down the supply chain as far as value is
concerned. But also where the supply chain may also not be that evident within
certain organizations you can look at other sister sites or you could look at the
corporate view as well to see are you developing the standard in a way that is
engaging outside of your own particular business. And then level 5 is really the kind
of blue-sky idea, all about sustainability and the broader aspects of what energy
management is trying to get to.
So these are the pillars. As I said they are pretty much the clauses, with some slight
deviation, but more or less the clauses of the energy management system. What we
have done is we have identified what we call sub-pillars and these sub-pillars are
what would be included as a requirement or as good practice or what is typically
called out within the standard in this case under the requirements of an energy
review. For the user then who is assessing we then have a descriptor, which
provides just an overall description of what we are talking about. So in this example
of energy performance patterns means the knowledge of energy performance
patterns in the organization. And energy variable means a level of understanding of
energy variables for example. Those of you who are looking at the standards will
know exactly what I am talking about. We then have defined what we call maturity
key words and this is a tool that we use during the energy assessments. So we go
back to the energy review and we think well what are the energy key words that we
consider during an assessment. So for the energy review we consider the keywords
of quality, value, diagnostic, discovery, competence and sources. And the idea is then
that we have through this scale form emerging to innovating we have a statement
that what could represent the attribute for that particular case. And a company
would try to understand where they fit. And any company that already has an
energy management system should be at the defining stage and that attribute
should exactly define the state of that organization at that time. And then with
integrating, I’ll just use this as one example; there is sufficient detail of energy
performance of the significant energy uses and value stream. So it’s kind of bringing
in that value stream idea so you are trying to connect with the business.
The other example that I have given is of operational control. Again there are pillars
and sub-pillars and a descriptor, there are maturity key words and then we’ve
defined these attributes for each of those. So you can probably get the idea that it is
quite an extensive process. We have done and completed a few beta tests in Ireland
and they are quite intensive but we were doing them over the course of 1 day but
obviously that was only for the beta test mode. We got very positive feedback from
the companies involved which I have some testimonials on. So the idea here is that
companies can see where they have identified where they are, they can see the
attribute of what is the next step, and whether this is something that fits the
organization or not. You don’t have to go to the next step; you decide where you
want to go. So if defining is where you want to be and you don’t want to get into this
area of optimizing as we have defined it then you don’t need to. And what you do is
you define where you want to be so you set a target. So you can see here, this is not
for any of those companies but for another company that identified a target for each
of those sub pillars and identified where they wanted to get to. So the organization
will make that decision as to what works best for them and if they feel they are there
already and the system is working then they just want to use the system to improve
naturally by the system that is fine as well. For us the important thing here is that
we got 160 companies in the LIEN, we have 80 companies in the energy agreements
program. We’ve had a lot of success but we do see a lot of variation in approach. We
see wide variation in performance as far as the management system is concerned so
we think about this as a very long term strategy program and the intent is to move
the entire program and to try for the full program and those that are part of the
program to think about how they can mature and improve their energy
management system. And this is our management too that we are giving them to
understand that. So we hope that we will bring the entire network with us over a
long period of time. The companies that had a beta test are Heinz, Google, Pfizer and
Nutelis, they are all very well known names, multi-nationals and some of the
comments that we got back from them was that “it was a realization into some
weakness but insight to how to target and plan development”, “it developed an
understanding of management roles and responsibilities” or it helped them
understand it more, and the connection between policies and activities it
highlighted for them in some cases that there was a disconnect between the policies
that was out in reception signed by the top management of the organization and the
actual activities that were happening on the ground which is obviously a major
weakness of the energy management system but it highlighted that for them. And
the other thing as well that is really important and it probably brings to a lot of the
comments that were made in the precious session is that the language that we try to
use is a type of language that they can use to try to bring back ideas to the
organization and that was a key comment that came out of these beta tests. That
they learned a lot from it, they can see how it can be used but more than that they
can now bring this exercise back to the organization and to their senior
management team to see how can they adopt it and is it useful within their business.
So where from here? It’s still in development but we have developed the model so
the next step is to integrate it into the Irish programs so for the time being it is going
to become a voluntary engagement with those who wish to engage with it as we
develop the next phase of it. We are obviously going to deploy a strategy in
development of it. One of the things that we probably will do because there is quite a
lot of information in it is that we will probably develop an App or something of that
nature that maybe work with a note pad or an iPad so that in an organization it is
easy to navigate it while you are moving. It is something that could be done by a
company that is self-assessing themselves or whether they are using an outside
contractor or consultant who is performing this assessment for them. We also feel
that this is a great opportunity should there be interest in it as a benchmarking
resource. If you kind of look ahead it would be really interesting if you kind of
compare some of the strengths of an energy management system across sectors or
across different countries for example but these are just ideas. The next step for us
is to share the model and to share the benchmarking data that we have. And that is
my last slide. I thank you very much for your attention and the last slide here is just
showing a word cloud just showing the key terms that are arising from energy
management if you put it into a word cloud this is what it generates. So obviously in
energy management energy is the biggest one, it is interesting that policy is ringing
very very large so policy is ringing right through all of the different attributes. This
diagram is in proportion for the amount of times that “policy” for example has been
used through out it and a little bit there for you to review. Thank you very much.