A Brief Introduction to ISO 50001

With industrialization, climate change, and energy shortages have become increasingly severe issues. Developing strategies to address these issues has become a significant topic for sustainable development in recent years. Since last year (2023), the European Union has been trialing the Carbon Border Adjustment Mechanism (CBAM), and Taiwan has also passed regulations for carbon fee collection this year (2024), which are expected to be implemented next year.

Implementing the “ISO 50001 Energy Management Standard” is an essential method for organizations to practice energy management to reduce energy consumption, stabilize energy supply, and reduce carbon emissions. This standard allows internal personnel to have a systematic energy management standard, like having a common communication language and management mechanism, making energy management more organized and standardized. This improves energy efficiency, and reduces energy consumption and carbon emissions, achieving a win-win situation for corporate energy saving and environmental sustainability. This article by ACE Energy will briefly share what the ISO 50001 Energy Management Standard is.

What is the ISO 50001 Energy Management Standard?

The ISO 50001 Energy Management Standard was developed by the International Organization for Standardization (ISO) and was first published in 2011. The latest version, ISO 50001: 2018, was announced in 2018. This standard ensures that organizations establish a procedural framework based on the PDCA (Plan-Do-Check-Act) cycle as its core management method, enabling organizations to fulfill their policy commitments, take actions to improve energy performance, and demonstrate compliance with regulations and customer requirements.

ISO 50001:2018 has been aligned with the structure of other ISO management system standards such as ISO 9001 Quality Management System and ISO 14001 Environmental Management System. The use of a common or High Level Structure (HLS) is to ease the integration of different systems. This version updates some terms and definitions and provides more explanations of some energy concepts. Additionally, ISO 50001: 2018 emphasizes the role of top management in driving energy management initiatives.

In practice, ISO 50001: 2018 provides organizations with the following framework as a guide for the step-by-step implementation of energy management:

• Develop a policy for more efficient use of energy.
• Set targets and objectives to meet the policy.
• Use data to better understand and make decisions about energy use.
• Measure the results.
• Review how well the policy works.
• Continually improve energy management.

Who is the ISO 50001 for?

The ISO 50001 Energy Management Standard is applicable to organizations of all types, such as manufacturing and service industries, regardless of size, whether large enterprises or small and medium-sized enterprises can implement it. It is suitable for organizations with different energy usage requirements, including performance monitoring and measurement, documenting key management processes and performance reporting, equipment design and procurement processes, and all personnel affecting energy performance. This allows organizations to fulfill their policy commitments, take necessary actions to improve energy performance, and demonstrate compliance with regulations and customer requirements.

Benefits of Implementing ISO 50001

Implementing the ISO 50001 Energy Management Standard has multiple benefits, including improved energy efficiency, reduced energy costs, environmental sustainability, reduced legal risks through compliance, and the creation of a positive corporate image.

More importantly, implementing the ISO 50001 Energy Management Standard establishes a common language for internal members and the outside world. Internally, it helps members develop energy-saving awareness, integrating energy efficiency considerations into every organizational decision, reducing resistance to achieving energy goals. Externally, it demonstrates the organization’s commitment to energy management and actions, proving energy performance and compliance to stakeholders.

PDCA (Plan-Do-Check-Act) Cycle as the Management Core

The ISO 50001 Energy Management Standard uses the PDCA cycle (Plan-Do-Check-Act) as the core of its management system. The specific application of this cycle in energy management is as follows:

1.Plan:

Define the energy policy: Understand the organization’s context and identify key areas for energy saving to develop the energy policy, showing commitment to improving energy performance.
Conduct an energy review: Identify current energy use, major energy users, and opportunities to improve energy performance.
Set objectives and baselines: Set energy performance indicators, energy baselines, an energy management team, and action plans based on the energy review results.

2.Do:

Implement the action plan: Execute the energy management action plan based on the set objectives and baselines.
Raise awareness and training: Ensure relevant personnel understand the energy management policy, objectives, and plans, and provide necessary training.
Operational control and maintenance: Implement necessary controls during operations and maintenance to achieve energy objectives.

3.Check:

Monitoring and measurement: Establish a system to continuously monitor and measure key energy use data and record the performance.
Energy management evaluation: Regularly evaluate the energy management system to ensure it meets expected goals.
Certification audit: Engage a certification body to verify that the energy management system complies with the ISO 50001 standard.

4.Act:

Based on the evaluation and audit results, take corrective actions and preventive measures to improve the energy management system. Top management should regularly review the energy management system to ensure its suitability and effectiveness and determine improvement directions. Through continuous PDCA cycles, ISO 50001 helps organizations continually improve energy performance, enhance energy efficiency, and reduce energy costs in a constantly changing environment.

AI and Energy Management Technology Complement Each Other for Optimal Energy Use Solutions

Energy management is a comprehensive organizational effort that must be monitored from multiple aspects, such as product design, production processes, plant energy selection, system facility matching, and energy-saving technology implementation. ACE Energy specializes in the planning and implementation of energy-saving and renewable energy technologies. Through energy-saving technologies such as air conditioning, compressed air, waste heat recovery, lighting, solar power, and electricity management, we initiate energy audits for clients and establish energy baselines, conduct energy consumption analysis, tailor energy-saving and green energy solutions, and monitor and measure the energy-saving improvements regularly after completion.

As of March 2024, ACE Energy has successfully saved customers over 500 million NT dollars in energy expenditures. Furthermore, ACE Energy has developed its PowerGlow energy management platform, which not only follows the ISO 50001 Energy Management System standards but also integrates AI technology to assist in optimizing energy efficiency. By combining historical energy usage data, smart meters, sensors, and automated control systems, the platform can automatically generate energy monitoring reports, actively predict, control, and optimize energy consumption and generation, dynamically manage energy efficiency, and reduce costs. The PowerGlow energy management platform can be applied in various fields, including medical institutions, factories, catering, and retail.

By complementing AI and energy management technologies, ACE Energy is dedicated to provide the best energy management solutions to help various industries achieve their energy saving and carbon reduction goals.