Determination and presentation of the improvement of energy-related performance according to ISO 50001:2018.
Improving energy-related performance is a central goal of ISO 50001:2018 energy management systems. The standard requires evidence of continuous improvement in energy-related performance. According to the standard, this can be achieved by means of energy performance indicators (EnPIs), in which the initial value (EnB) and the current EnPI value are determined at regular intervals for all EnPIs, normalized if necessary, compared and presented in summary form. The following are questions from business practice which have been put to the German Standards Committee with regard to the demonstration or presentation of improvement, and which have been answered by the Committee.
Reply
1. is a single key figure sufficient?
Excluding the borderline case of a company with only one energy source and a significant energy use (SEU), several energy-related indicators are necessary for the operation of an energy management system (EnMS) and for the presentation of the improvement of the energy-related performance.
2. what makes a ratio an EnPI (methodology, influencing factors, normalization)?
All metrics that show actual energy-related performance are EnPIs. If the actual performance is not identifiable, e.g. due to distorting, significant variables (weather, capacity utilization, etc.), we are not dealing with an EnPI.
Indicators that take into account the relevant variables and can thus be normalized are EnPIs also in the sense of ISO 50006. (Cf. DIN EN ISO 50001:2018-12, 3.4.4 and DIN EN ISO 50001:2018-12, 6.4)
3. is a global indicator necessary and does it need to improve?
In addition to EnPIs for the SEUs, metrics are required for the organization as a whole, because the addressee of all ISO 50001:2018 requirements is “the organization”, which is required to achieve and record improvement in its system and performance. The organisation-related (global) indicators should provide a general trend development, which should also be reflected in the specific indicators (of the SEUs and the measures).
4. do you need at least one EnPI for each SEU?
Yes, compare DIN EN ISO 50001:2018-12, 6.3 and 6.4
5. how are improvements outside the SEUs evaluated?
All improvements are included in the overall assessment of the organisation. Therefore, it is also essential to determine the energy-related performance of the organisation as a whole, in addition to the energy-related performance of the individual SEUs. This allows improvements or deteriorations in the areas that are not SEUs to be identified and taken into account.
6. does the methodology for measuring success need to be included in the action plans?
Yes. Compare DIN EN ISO 50001:2018-12, 6.2.3
7. at what level should improvement be demonstrated for multi-site procedures?
The (multi-site) organisation as a whole must demonstrate its performance improvement (see answers to questions 1.-3.) The contributions of the individual sites must be available. It is not essential for each site to demonstrate an improvement in energy performance on its own.
8. what and how must/can be measured? Measurement accuracy?
ISO 50001:2018 does not provide detailed guidance on what needs to be measured. However, data on the following aspects must be available (compare DIN EN ISO 50001:2018-12, 6.6):
“(a) the relevant variables relating to SEUs;
b) energy consumption in relation to SEUs and the organisation;
(c) operational criteria relating to SEUs;
(d) static factors, if applicable;
(e) data specified in action plans.”
It is also possible that the data are not based on measurements. If the organization chooses to measure, the accuracy and repeatability of the measurement shall be ensured.
“The organization must define and implement an energy data collection plan that is appropriate for its size, complexity, resources, and measurement and monitoring equipment.”
9. is one free to define the SEUs?
The definition of the SEU should enable the organization to establish a focus-oriented energy management. The criteria for the systematic determination of SEUs are set by the organization itself. (Compare DIN EN ISO 50001:2018-12, 3.5.6)
The organization is thus free to determine the SEU, but must set the appropriate criteria. In making this determination, it must take into account its context. Since organizations or even technical savings opportunities change over time, the SEUs must be reviewed at regular intervals and adjusted if necessary.
10. how to deal with adjustments to the energy baseline (EnB)?
The baselines must be appropriate comparators. For this purpose, of course, these may, indeed must, be modified and adapted according to ISO 50001:2018 under certain circumstances.
ISO 50001:2018 describes three cases where adaptation is mandatory. Cf. DIN EN ISO 50001:2018-12, 6.5:
“The EnB(s) must be modified if one or more of the following occurs:
(a) the EnPI(s) no longer reflect the organization’s energy-related performance;
(b) there have been major changes in static factors;
(c) in accordance with a predetermined procedure.”
11. how to deal with “falling baselines” (see examples in ISO 50003)?
The baselines must represent appropriate comparators that allow the actual state to be compared with the expected state (based on the reference period). (Compare DIN EN ISO 50001:2018-12, 3.4.7)
To ensure adequate comparability, effects of relevant variables can be taken into account by normalization in the EnBs. If a decrease in the performance of an aggregate is to be expected over time, this can be taken into account when determining the normalized baseline depending on the point in time under consideration, which ultimately leads to a baseline that “falls” over time.
12. how to deal with non-achievement of objectives? (e.g. if a measure does not achieve the desired effect, an SEU “gets out of hand”).
The question arises whether the “non-target achievement” is the result of a non-functioning/ineffective EnMS or is due to other causes. In any case, such deviations must be identified and appropriate corrective measures (possibly also an improvement of the planning process) must be initiated or implemented. In the event of a system failure (major non-conformity), corrective action must be taken before a certificate is issued.
13. how to deal with deteriorations in performance?
See answer to question 12.
Continued deterioration in performance indicates non-compliance with a requirement per se and also indicates that the EnMS is not functioning effectively. The non-fulfilment of a requirement (non-conformity) can – depending on the degree of severity – as a major non-conformity block a positive certificate decision until the problem has been resolved, or as a minor non-conformity result in at least one corrective measure, the effectiveness of which must be verified.
(14) How should the construction of combined heat and power plants be assessed in the evaluation of the improvement of energy-related performance?
The inclusion of a CHP plant may in some cases lead to increased energy use within the organisational boundaries, although the overall balance (primary energy consumption) is improved. The installation of a CHP plant may count as a new/changed static factor, with the consequence that a new baseline has to be established, resulting in a new, not worsened, but also not improved energy-related performance.
15. can EnBs for the different EnPIs be from different time periods? If so, how does one deal with the aggregation of savings relating to different reference periods in such a case?
To prove the improvement of the energy-related performance, a comparison between the reference situation (represented by the EnB) and the actual situation (represented by the current EnPI values) has to be carried out. In order to demonstrate the improvement in energy-related performance, it is crucial that a view is taken across the whole organisation.
In addition, the developments of the SEUs and individual projects are considered. In this context, the evaluation of the development can take place through an overall view without concrete aggregation across all projects, SEUs and others. Should an organisation wish to aggregate individual developments, different reference periods must be taken into account in this approach.
16. what is the relationship between the improvement in energy performance and the energy targets?
The improvement in energy-related performance shows the change compared to the situation in the reference period. The degree of target achievement is determined by comparing the current EnPI values with the target values. It is conceivable that there is an improvement in energy-related performance compared to the baseline, even though the target was not achieved. In this case, the organisation must determine how to deal with the “non-achievement” of the objectives and which corrective measures are to be implemented. In addition, it is conceivable that targets will be exceeded. Here, too, it would be necessary to analyse how the overachievement came about in order to generate a learning effect (e.g. for the target-setting process).
17. are (partial) deteriorations permitted if an improvement has been achieved in the overall view?
See answer to question 12.
18. what is the difference between improving energy-related performance and improving energy efficiency?
ISO 50001:2018 defines energy efficiency as a (possible) component of energy-related performance. Cf. DIN EN ISO 50001:2018-12, 3.4.6:
In principle, a reduction in energy consumption can also be an improvement in energy-related performance. In practice, because of the required normalisation, an improvement in energy-related performance is usually also an improvement in energy efficiency, because the output of an energy-consuming process is regularly the only or most significant relevant variable (with which normalisation then also takes place).
Note: If there are no significant factors influencing energy consumption (and therefore no normalisation is required), absolute energy consumption can also act as the EnPI.
19. is a certain level of improvement in energy performance required?
Above legal requirements, the organization itself determines what requirements it wants to meet and what level/goals it wants to set for itself. The standard does not specify a concrete level of improvement (see scope ISO 50001:2018).
20. can there be an improvement even if total energy consumption has increased?
Yes, as long as it can be demonstrated that efficiency has improved (see answer to question 18.). A comparison of the expected energy consumption based on the EnB and the actual energy consumption allows a presentation of the improvement of the energy-related performance.
Contact DIN and submit further questions:
If you have any further questions relating to the presentation of energy-related performance in accordance with DIN EN ISO 50001:2018 or related standards, we would be pleased if you could send them to the committee. Please send your questions to the coordinator of the committee Mrs. Hanna Schultz (hanna.schultz@din.de).
Contact GALLEHR+PARTNER®
The experts at GALLEHR+PARTNER® are available at all times to answer any questions you may have on the establishment and operation of certified energy management systems, integrated management systems and multi-site management systems.
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The following information fits this report:
Determination and presentation of the improvement of energy-related performance according to ISO 50001:2018
The improvement of energy-related performance is the central goal of energy management systems according to ISO 50001:2018. The standard requires proof of the continuous improvement of energy-related performance. According to the standard, this can be provided by means of energy performance indicators (EnPIs), in which the initial value (EnB, en: energy baseline) and the current EnPI value are determined at regular intervals for all EnPIs, normalized if necessary, compared and summarized. The following are questions from company practice which were submitted to and answered by the German Standards Committee with regard to the proof or presentation of the improvement.
Answers
1. is a single index enough?
Excluding the borderline case of a company with only one energy source and significant energy use (SEU, en: significant energy use), several energy-related key figures are necessary for the operation of an energy management system (EnMS) and for the presentation of the improvement of the energy-related performance.
2. What makes an indicator an EnPI (methodology, influencing factors, normalization) ?
All indicators that show the actual energy-related performance are EnPIs. If the actual performance is not visible, e.g. due to distorting, significant influencing factors (weather, capacity utilization, etc.), we are not dealing with an EnPI.
Key figures that take into account the relevant variables and can thus be normalized are EnPIs also in the sense of ISO 50006. (See DIN EN ISO 50001:2018-12, 3.4.4 and DIN EN ISO 50001:2018-12, 6.4)
3. Is a global indicator necessary, and must it improve?
In addition to EnPIs for the SEUs, key figures are required for the organization as a whole, because the addressee of all requirements of ISO 50001:2018 is “the organization”, which has to achieve and record improvements in its system and performance. The organisation-related (global) indicators should provide a general trend development, which should also be reflected in the specific indicators (of the SEUs and the measures).
4. Do you need at least one EnPI?
for each SEU?
Yes, compare DIN EN ISO 50001:2018-12, 6.3 and 6.4
5. How are improvements outside the SEUs evaluated?
All improvements are incorporated into the overall view of the organisation. It is therefore essential to determine not only the energy-related performance of the individual SEUs but also the energy-related performance of the organisation as a whole. In this way, improvements or deteriorations in areas that are not SEUs can be identified and taken into account.
6. does the methodology for measuring performance need to be included in the action plans?
Yes. compare DIN EN ISO 50001:2018-12, 6.2.3
7. at what level is the improvement to be demonstrated in multi-site procedures?
The (multi-site) organisation as a whole must demonstrate its performance improvement (see answers to questions 1.-3.) The contributions of the individual sites must be available. It is not generally necessary for each site to demonstrate an improvement in energy-related performance on its own.
8 What and how must/can be measured? Measurement accuracy ?
ISO 50001:2018 does not give a detailed specification of what needs to be measured. However, data must be available on the following aspects (comparisons DIN EN ISO 50001:2018-12, 6.6):
“a) the relevant variables regarding SEUs;
b) the energy consumption in relation to SEUs and organisation;
c) operational criteria related to SEUs;
(d) static factors, if applicable;
(e) data specified in action plans.”
It is also possible that the data is not based on measurements. Should the organisation decide to use measurement, the accuracy and repeatability of the measurement shall be ensured.
“The organisation shall define and implement an energy data collection plan appropriate to its size, complexity, resources and measurement and monitoring equipment.”.
Are you free to define the SEUs?
The definition of the SEU should enable the organisation to establish a focus-oriented energy management. The criteria for the systematic definition of the SEUs are determined by the organisation itself. (compare DIN EN ISO 50001:2018-12, 3.5.6)
The organisation is therefore free to define the SEU, but must establish the relevant criteria. When defining the SEU, it must take into account its context. Since organizations or technical savings opportunities change over time, the SEUs must be reviewed at regular intervals and adapted if necessary.
10. how to deal with adjustments of the energy baseline (EnB, en: energy baseline) by ?
.
The baselines must represent suitable comparative figures. For this purpose, they may of course be changed and adapted according to ISO 50001:2018 under certain circumstances.
ISO 50001:2018 describes three cases in which an adaptation is mandatory. See DIN EN ISO 50001:2018-12, 6.5:
“The EnB(s) must be modified if one or more of the following cases occur:
a) the EnPI(s) no longer reflect the energy-related performance of the organisation
b) there were major changes in the static factors;
(c) in accordance with a predetermined procedure.”
11. how to deal with “falling baselines” (see examples in ISO 50003)?
The baselines must represent suitable comparison parameters that allow the actual state to be compared with the expected state (based on the reference period). (Compare DIN EN ISO 50001:2018-12, 3.4.7)
In order to ensure adequate comparability, effects of relevant variables can be taken into account by normalisation in the EnBs. If a decline in the performance of an aggregate is expected over time, this can be taken into account in the determination of the normalised baseline depending on the time of observation, which ultimately leads to a baseline “falling” over time.
12 How to deal with non-achievement of objectives? (e.g. if a measure does not achieve the desired effect, a SEU “gets out of hand”)
The question arises whether the “non-achievement of objectives” is the consequence of a non-functional/non-effective EnMS or is due to other causes. In any case, such deviations must be identified and appropriate corrective measures (possibly also an improvement of the planning process) must be initiated or implemented. In the event of a system failure (significant non-conformity), corrective actions must be taken before a certificate is issued.
13. how do you deal with performance degradation around ?
See answer to question 12.
Continual performance degradation means the non-fulfilment of a requirement per se and also indicates that the EnMS is not working effectively. Depending on the severity of the non-compliance, a major non-conformity may be a major deviation that blocks a positive certificate decision until the problem is resolved, or a minor non-conformity that results in at least one corrective action, the effectiveness of which must be verified.
14 How should the design of combined heat and power plants be assessed when evaluating the improvement in energy-related performance ?
The inclusion of a CHP plant may in some cases result in increased energy use within the organisational boundaries, although the overall balance (primary energy consumption) improves. The installation of a cogeneration unit may count as a new/changed static factor, with the consequence that a new baseline has to be established, resulting in a new, not deteriorated but also improved energy-related performance.
15. Can EnBs for the different EnPIs come from different time periods? If so, how does one proceed in such a case with the aggregation of savings that relate to different reference periods?
In order to demonstrate the improvement in energy-related performance, a comparison between the reference situation (represented by the EnB) and the actual situation (represented by the current EnPI values) shall be carried out. For the presentation of the improvement of the energy-related performance it is crucial that a consideration of the whole organisation takes place.
In addition, the developments of the SEUs and individual projects are also considered. The evaluation of the development can be done by an overall view without concrete aggregation across all projects, SEUs and others. If an organisation wishes to aggregate the individual developments, different reference periods must be taken into account in this procedure.
16. what is the relationship between the improvement of energy-related performance and the energy targets?
The improvement in energy-related performance shows the change compared to the situation in the reference period. The degree to which the targets have been achieved is determined by comparing the current EnPI values with the target values. It is conceivable that an improvement in energy-related performance compared to the baseline is present, although the target has not been achieved. In this case, the organization must determine how to deal with the “non-achievement” of the targets and what corrective measures are to be taken. In addition, it is conceivable that targets may be exceeded. Here too, it would be necessary to analyse what caused the overachievement in order to generate a learning effect (for example for the goal-setting process).
17. are (partial) deteriorations permitted if an improvement has been achieved in the overall view?
See answer to question 12.
18: What is the difference between improving energy-related performance and improving energy efficiency?
ISO 50001:2018 defines energy efficiency as one (possible) component of energy-related performance. See DIN EN ISO 50001:2018-12, 3.4.6:
In principle, a reduction in energy consumption can also be an improvement in energy-related performance. In practice, because of the required normalization, an improvement in energy-related performance is usually always an improvement in energy efficiency, because the output of an energy-consuming process is regularly the only or most significant relevant variable (with which normalization then also takes place).
Note: If there are no significant factors influencing energy consumption (and therefore no normalisation is required), absolute energy consumption can also be used as an EnPI.
19. if a certain level of improvement of energy-related performance is required ?
Above and beyond legal requirements, the organisation itself determines which requirements it wishes to meet and what level/objectives it wishes to set itself. The standard does not provide a concrete specification of the level of improvement (see application area ISO 50001:2018).
20. Can there be an improvement even if the total energy consumption has increased?
Yes, as long as it can be demonstrated that efficiency has improved (see answer to question 18.). A comparison of the expected energy consumption based on the EnB and the actual energy consumption allows the improvement in energy-related performance to be shown.
Contact DIN and submit further questions:
If you have any further questions regarding the presentation of energy-related performance according to DIN EN ISO 50001:2018 or related standards, we would be pleased if you would forward them to the committee. Please send your questions to the coordinator of the committee Mrs. Hanna Schultz (hanna.schultz@din.de).
Contact GALLEHR+PARTNER®
The experts at GALLEHR+PARTNER® are available at all times to answer any questions you may have about the construction and operation of certified energy management systems, integrated management systems and multi-site management systems.
Secure your non-binding meeting date now
The following information fits this report:
Module 1: 360° PDCA management as a continuous service
Module 2: Gap analyses of management systems
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