Dong Myung, Kwon

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1. Energy Management System Introduction

2. Current international status

3. Effect of Energy Management System

4. Energy Management System Introduction Plan

5. Future Direction

Table of ContentsTable of Contents

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1. Energy Management System Introduction

2. Current international status

3. Effect of Energy Management System

4. Energy Management System Introduction Plan

5. Future Direction

Table of ContentsTable of Contents

3

1. Introduction 1. Introduction

Definition & PurposeDefinition & Purpose

“Effectuating, organizational, technical and behavioral

measures in a structural and economically-sound manner in

order to minimize the consumption of energy, including energy

production, and to minimize the consumption of basic and

added materials”

Energy Management System?Energy Management System?

For company, create the profit by energy conservation

For nation, reduce whole energy consumption and GHG

emission

　 By introducing energy management system that all member of

organization participate

Purpose of Energy Management SystemPurpose of Energy Management System

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Environmental management

(ISO 14001)

Quality management

(ISO 9001)Energy management

Existing energy conservation

actionItem/System

Environment improvement

Customer satisfactionEstablish measurable energy

conservation goal

Establish measurable

energy conservation goal

4. Objective

•Expansive energy conservation for new product development, new process, existing process, etc.

• Purchase/production/energy department etc..

• Project team/new product development team and whole department related energy

Energy conservation

Customer satisfaction

Customer

Quality improvement

Environment improvement &

regulation compliance

Energy conservation of existing process

3. Purpose

Many stakeholders

(NGO, government, residents)

Production & energy

department2. Interested

Environment improvement

Energy conservation

1. Target

Comparison of energy management system & Existing management system(1/2)1

-- Case studyCase study

1. Introduction 1. Introduction

5Monitoring

Support tool

Management target

Approach method

Representative

Organization

• LCA

• Eco Design

• EPE

Statistical tools(SPC, SQC)

• Diagnosis checklist

• Energy inventory

• Statistical tools

Diagnosis facility

Equal to energy management

Equal to energy management

Periodical monitoringPeriodical monitoring

Environment improvement

Quality improvement

• New product

• New facility & process

• Existing facility & process

Existing facility & process

Environmental aspect analysis

Investigate the customer

dissatisfaction

• Facility diagnosis

• Energy aspect analysis

(energy profile)

• Statistical analysis of data

• Energy project

Facility diagnosis

Environmental management

representative

(non exclusive)

Quality management representative

(non exclusive)

Energy management representative

(exclusive)

Energy management

(non exclusive)

Equal to energy management

Equal to energy management

Participation of all of organization (purchasing, development, producing,

energy..)

Composition of TFT related

energy

5. Implementation method

Energy management

Quality management

(ISO 9001)

Environmental management

(ISO 14001)

Existing energy conservation action

Item/System

-- Case studyCase study

1. Introduction 1. Introduction

1Comparison of energy management system

& existing management system(2/2)

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1. Standardization and offering the case study for energy aspect analysis, energy management project, etc.

- offer the energy aspect analysis manual

2. Energy aspect analysis and energy management project control by using computerization system

2. ISO9001/ISO14001does not have specific criterion for project implementation

- Reducing efficiency

Solution & DifferentiationProblem of existing

management systemItem

• Take measures for minimizing documentation

• Development of standardized computation system

1. Add requirements related energy conservation and management to standard

2. Attach the annex related management standard and method for industry, facility and process

• Plenty of documentation

is requiredDocumentation

1. ISO standards have too expansive contents and no specific criterion

Standard

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-- Case studyCase study

Key findings and solution (1/2)2

1. Introduction 1. Introduction

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• Develop the criterion and checklist for periodic

audit/control

• introducing the standardization computation control

system

• insufficient specific criterion about

periodic audit/controlPeriodic audit

• Audit focused on performance

• Develop the control measure on nonconformity

(inadequacy to implementation)

• Audit focused on system

• inadequacy control measure against

nonconformity

Audit implementation

Solution & DifferentiationProblem of existing management systemItem

• Auditor training focused on technique and system

• Auditor accreditation considering field experience

• Auditor training focused on system

• Inadequacy on field experienceAuditor

• Strengthening the accreditation criterion for

certification body

• Periodic check of validity and effectiveness for

certification

• Ensure the priority on public interest from

accreditation body, certification body

• improve the multilevel earning structure

• Flooded certification body (31

certification body for ISO14001)

• Many competition between

certification body (formal certification)

• Multilevel earning structure of

accreditation body ↔ certification body

↔ training body

Auditing organization

4Key findings and solution (2/2)2

1. Introduction 1. Introduction

-- Case studyCase study

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1. Energy Management System Introduction

2. Current international status

3. Effect of Energy Management System

4. Energy Management System Introduction Plan

5. Future Direction

Table of ContentsTable of Contents

9

Energy management system in other country Energy management system in other country

- Management System for Energy (MSE 2000)

- Integrated management system of managerial and technical aspectUSA

- Energy Efficiency Accreditation Scheme

- Developed Energy Efficiency Planning and Management Guide)UK

- Obligation for participating in Programme for improving energy efficiency

- Grant tax relief on electricity cost to join

- Came into force on 1 January 2005

Sweden

- Obligation for participating in Energy Agreement Programme

- Sustainable Energy Initiative composed by energy management approach

- Irish Standard I.S. 393, E-MAP (Energy Management Action Program)

Ireland

- Obligation for participating in Long Term Agreement

- Energy management system constructed based on PDCA cycleNetherlands

- Introduce Energy Management Standard(DS-2403) for offering guideline for energy

management system

- Company must implement EMS in order to enter a VA industry on the energy efficiency

- Including energy supplying, changing, use, technology

(developed basis ISO 14000, ISO 9000)

Denmark

Status Status Country Country

2. Current international status2. Current international status

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Energy Inventory

Statistical Analysis

Problems Analysis

List of measures to Improve

Purchasing, Development, Project

Produce, Use, Packaging

Product, Marketing,Distribution, Disposal

2. Current international status2. Current international status

USA Management System for Energy : MSE 2000

Managerial

Policy

Goals

Targets

Technical

Monitor&Measure

Energy Profile

Energy Assessment

PROJECTPROJECTPROJECT

Measurement & VerificationMeasurement & VerificationMeasurement & Verification

Energy management system in other country Energy management system in other country

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Introduced the energy management system specification(DS2403) on 2001

BackgroundBackground

Offering the guideline for energy management system for company and organization

PurposePurpose

Public and private organizations include service and manufacturing company

Target Target

• Having close relation to ISO 14001

• DS 2403 guideline

• Company must implement EMS in order to enter a VA industry on the energy efficiency

Characteristic Characteristic

4. Energy management system requirements

4.1 General requirements

4.2 Energy policy

4.3 Planning

4.4 Implementation and operation

4.5 Checking and corrective action

4.6 Management review

Construction Construction of of

Specification Specification

<DS 2403 Model>

Denmark - DS 2403

Energy management system in other country Energy management system in other country

2. Current international status2. Current international status

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1. Energy Management System Introduction

2. Current international status

3. Effect of Energy Management System

4. Energy Management System Introduction Plan

5. Future Direction

Table of ContentsTable of Contents

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- Reduced 10% NG consumption in 2 years

- Reduced $69,700 energy cost and extend

lifetime for facility by facility waste heat

reduction

Commercial carpet manufacturer,

annual energy cost is more than $2

million(’04)

C&A Floor coverings

- Reduce consumption of water 21%, fuel

11%, electricity 12% compared to ’99 (’02)

- Excess achievement and IRR 30%(’04)

Snack manufacturer, annual energy

cost is more than $100 million.(2%

out of budget)

Frito-Lay

- Reduce energy unit cost 27% (’00~’02)

- 20% excess achievement by 2005, use for

marketing strategy

Global manufacturing company

includes industrial products,

medical, safety, electronics,

automobile, construction, etc.

- Worldwide 139 sites

3M

- GHG emission reduction 68% since 1990

- Productivity increased 35% without energy

consumption increasing

Global manufacturing company

includes agriculture, household,

construction, transportation,

apparel, etc.

DuPont

Effect of energy management systemCompany summary Company

3. Effect of Energy management system3. Effect of Energy management system

Effect of Energy management systemEffect of Energy management system

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1. Energy Management System Introduction

2. Current international status

3. Effect of Energy Management System

4. Energy Management System

Introduction Plan

5. Future Direction

Table of ContentsTable of Contents

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Keep the global environment & Cope with climate change agreementKeep the global environment & Cope with climate change agreement

PurposePurpose

TargetTarget

Fix the epochFix the epoch--making energy conservation systemmaking energy conservation system

Establish energy tracking and improvement systemEstablish energy tracking and improvement system

Continual energy management activityContinual energy management activity

MethodMethod Technical Technical Systematic Systematic Develop the system focused on Develop the system focused on

improvementimprovement

ToolsToolsEnergy management Energy management system specificationsystem specification

Energy diagnosis/Energy diagnosis/audit Check listaudit Check list Manual/GuidanceManual/Guidance

InfraInfra All of organizationAll of organizationparticipatingparticipating

Apply existing Apply existing energy policyenergy policy

Linking to ISO 14000/Linking to ISO 14000/ISO 9000ISO 9000

Energy diagnosis/Energy diagnosis/assessment toolassessment tool

Insure the efficiency, effectiveness, Insure the efficiency, effectiveness, continuance of energy managementcontinuance of energy management

BasicBasicInformationInformation

4. Energy management system introduction plan4. Energy management system introduction plan

Energy management system introduction plan in Korea Energy management system introduction plan in Korea

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Other system research & analysis

Energy management certification system

investigation and analysis

Similar case investigation and analysis

Periodical management case study

• Operation, site

application, incentive

• Problem and solution study

Development Energy Management Certification system

Energy management certification system

development

Energy management certification system

manual

Energy management certification system audit

criterion and process

• Audit criterion and process

• Audit checklist and their criterion

• Certification process and methodology

Development Manual/handbook/guideline

Guideline for certification application

• Application form and project design document

Linking to ISO system and their use

• Guideline and manual for applicants

• Linking list to ISO

• Handbook for linking

Development of periodical management for energy management system

Study on periodical management method

Self-checklist development for

participants

• Monitoring methodology

• Monitoring assessment criterion and checklist

• Current condition checklist

• Self checklist application method

1 System development process

Energy management system introduction plan in Korea Energy management system introduction plan in Korea

4. Energy management system introduction plan4. Energy management system introduction plan

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1. Improvement action by management

- Energy management committee (chairman: top management)

- Compose the energy management team (core person: exclusive)

- Setup the energy policy/conservation objective by management

- Periodic energy management condition assessment supervised by management

- Host the energy performance presentation (2 times/year)

2. Set up the conservation goal with all energy use

- Energy aspects analysis and reduction goal (efficiency improvement) set up

- Include energy, purchasing, logistics, development, environment department

- Establishment of continuous control system for goal

Energy management system standardEnergy management system standard--details details ((eg.eg.))

Improvement activity to get every efficiency

3. Energy management performance assessment and presentation

- Establishment for real time energy management implementation control system

- Internal energy management performance presentation (2 times/year)

- Reflect energy management performance result to department, individual

achievement assessment

4. Energy management system introduction plan4. Energy management system introduction plan

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1. Energy inventory set up for activity, products, service process

- Establishment inventory for energy consumption and GHG emission from facility,

equipment, process and building

- Initial and periodical energy aspect analysis based on inventory

- Development and diffusion of supporting program for energy inventory system

Energy friendly activity of all-life cycle on theNew product development – Energy Purchase – Use and Management

2. Energy friendly purchasing activity

- Establishment of criterion for energy friendly product purchasing

- Establishment of criterion for energy friendly facility and equipment

- Establishment of criterion for energy friendly activity on implementing project

3. Implementing energy management project

- Project development and implementation for energy management

- Resource management for energy management project implementation

- Performance assessment system for energy management project

4. Energy management system introduction plan4. Energy management system introduction plan

Energy management system standardEnergy management system standard--details details ((eg.eg.))

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1. Systematic Aspects

- System related part – ISO14000

- Development of Plan for Documentation & Record

· Computerize Program Development for Documentation & Record

· Minimization for Document and Record

- Integrated Computerized Program Development & Management for System

2. Technical Aspects

- Tools & Supporting System Development for Energy aspect Analysis

(Initial & Periodical Analysis System Development & Diffusion)

- Establish Management Guideline & System for Energy Facility & Equipment

· Development of Facility & Equipment Management Program

- Establish Energy Tracking System

Management System with Systematic & Technical Aspects

4. Energy management system introduction plan4. Energy management system introduction plan

Energy management system standardEnergy management system standard--details details ((eg.eg.))

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Overcoming Barriers of Existing Energy Improvement

4. Encourage Top Manager

- Competition between Businesses with Ranking System

- Establishing and Suggesting Plan for Energy Management Improvement Target

on all of organization

- Different Supporting System by Ranking

Energy management system standardEnergy management system standard--details details ((eg.eg.))

4. Energy management system introduction plan4. Energy management system introduction plan

1. Energy Management Activity in all of organization

- Analysis and Ranking for the Important on Energy Aspect through entire organization

- Energy Accomplishment Presentation Periodically with Top Manager

- Energy Management Results Reflects to the Accomplishment Evaluation

2. Long Term & Continuous Improvement- Establish Energy Management Target for Long/Short period

- Energy Reflected Project and Business Planning

- Renewal Target Annually for Mid-Long Term Energy Management Target

3. Establish Energy Management System for Overall Organization Activity

- Energy Management Activity through the Life Cycle;

Product Purchasing, Usage, Wrapping & Shipping, Disposal

- Consider Mid-Long Term Energy Aspect on Facility Import or Project Planning

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Acceptable level of energy management with room for improvement

B102-180

Systematic energy management has not yet been implemented or the system has important shortcoming

D0-50

The system for energy management does not yet satisfy the requirements for documentation and implementation as

indicated in the energy management system specification with guidance for use

C51-101

High level of energy managementA181-200

Result Result Points Points

Certification process (suggestionCertification process (suggestion--ranking)ranking)

1 Audit result – Netherlands

4. Energy management system introduction plan4. Energy management system introduction plan

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GovernmentCertification

Body

Application/Project Plan

Preliminary audit

Implementation/Monitoring

Document audit

Site audit

Certification assessment

Certification Issue & Registration

Periodic audit

Corrective action

Re-certification audit

Corrective action, Confirmation

Corrective action, Confirmation

System EstablishmentConsulting(if needed)

Corrective action

Ordinary audit

KATS - - KEMCO

2 Accreditation Process and Method for Korean EMS

Accreditation SystemAccreditation System

Accreditation ProcessAccreditation Process

4. Energy management system introduction plan4. Energy management system introduction plan

Certification process (suggestionCertification process (suggestion--ranking)ranking)

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Information Exchange for Energy Management System Introduction & Implementation

Build Consortium for Energy Conservation among Similar Industry (or Building) and Exchange the Saving Technologies or Information

Industry/Building ESPIndustry/Building ESP

(Energy Saving (Energy Saving through Partnership)through Partnership)

Induce the VA Enterprise to Integrated Energy Management System Registration

Agreement between Government and Energy Related Enterprise (Production, Supply, Consumption)

- Enterprise submit and implement of Target, Project Plan, Implementation plan for Energy Conservation and Green House Gas Emission Reduction

- Government Conduct Monitoring, Evaluation and Support Funding, Taxation

VAVA

(Voluntary (Voluntary Agreement)Agreement)

Application PlanApplication PlanContentsContentsExisting PolicyExisting Policy

System applicationSystem application

4. Energy management system introduction plan4. Energy management system introduction plan

-- Linking to existing national energy policy Linking to existing national energy policy (1/2)(1/2)

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Relief the energy auditEnergy audit obligation to energy-intensive company

Energy audit obligationEnergy audit obligation

(Energy(Energy--intensive company)intensive company)

Application PlanApplication PlanContentsContentsExisting PolicyExisting Policy

Obligation to ESCO Systematical training and supporting the ESCO

Cultivation the ESCOCultivation the ESCO

Receive the incentive and apply to evaluation system

-Energy conservation awardEnergy conservation award

Simplify on registrationGHG reduction measurement and registration (domestic)

GHG reduction project GHG reduction project registration and registration and

managementmanagement

4. Energy management system introduction plan4. Energy management system introduction plan

System applicationSystem application

-- Linking to existing national energy policy Linking to existing national energy policy ((22/2)/2)

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1. Energy Management System Introduction

2. Current international status

3. Effect of Energy Management System

4. Energy Management System Introduction Plan

5. Future Direction

Table of ContentsTable of Contents

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1. Diffusion for Evaluation and Certification System

2. Analysis and Case Study for Pilot Certification

1. Research on Certification Process & Plan

2. Research on Guideline & Standard for Operation Entity

3. Linking with Existing Policy

4. Committee Hearing for Implementing Standard

1. National Standard Development & Committee Hearing/ Specialist Consulting

2. Manual, Handbook, Promotion Material Development

3. Internal/External Checklist for Accreditation, etc.

System Application & Pilot CertificationStep 3.Step 3.

Research & Development for Accreditation SystemStep 2.Step 2.

Standard & Certification Guideline DevelopmentStep 1.Step 1.

4. Future direction4. Future direction

Future DirectionFuture Direction