1. 1 Thesis Committee: Prof. S. Kumar (Chairperson) Thesis Committee: Prof. S. Kumar (Chairperson) Dr. B. Mohanty (Co-chairperson) Dr. B. Mohanty (Co-chairperson) Prof. Ram M. Shrestha (Committee member) Prof. Ram M. Shrestha (Committee member) Presented by: Manjula Siriwardhana (ST105968) Energy Field of study, Energy Field of study, Asian Institute of Technology (AIT), Asian Institute of Technology (AIT), Thailand. Thailand. 18 th May 2009

2. Outline 1. Energy Efficiency and Climate Change 2. Why Energy Management? 3. Energy Management Standard Current Status 4. What does EMS do? 5. Energy Management Global context 6. Common Features of EMS 7. ISO 50001: UNIDO’s work 8. Objectives 9. Uniqueness and Importance of the Research Study 10. Approach 11. Assessment of current EM situation in Sri Lanka 12. Hurdles for implementation of EMS 13. Development of EMS to Sri Lanka 14. What role can national authorities play?

3. Energy Efficiency and Climate Change The increased concentration of carbon dioxide is the main cause of Climate Change Energy-related emissions account for over two thirds of the anthropogenic greenhouse gas (GHG) emissions and contribute over 80% of emissions of CO2 “We are not constrained by insufficient fossil fuels. We are constrained by the carbon tolerance of our atmosphere” - G8

4. Energy Efficiency and Climate Change Source: International Energy Agency, World Energy Outlook. 2006 Alternative Policy Scenario Increased nuclear (10%) Increased renewable (12%) Power sector efficiency & fuel (13%) Electricity end-use efficiency (29%) Fossil fuel end-use efficiency (36%) Improved end-use efficiency accounts for two-thirds of avoided emissions in 2030 And hence The major path for Limiting Carbon Emissions Least Marginal Cost of CO2 reduction

5. Why Energy Management ? Energy use in industry is much more related to operational practices than in commercial and residential sectors Organizations invest less in energy efficiency than would seem economic because of, lack of information and awareness, lack of technical personnel, lack of investment funds, uncertainty about energy prices and equipment performance. discouraged by equipment supply infrastructure problems, EMS Address these issues For continuous improvement

6. Energy Management Standards Current Status  Several countries already have national EMS (Denmark, Ireland, Sweden, US, Thailand, Korea)  EU has developed regional EMS  EMS are under development in China, Spain and Brazil  ISO has initiated work on international EMS (2008-2011), with preparatory assistance from the (UNIDO)  The working draft of the new standard is ready by 2009 and ISO 50001 will be ready for publication by the end of 2010  The structure and the content of the proposed Standard will be very similar to the existing standards

7. Management Best Practices Technical Best Practices What does EMS do? EMS provides structured and comprehensive guidance using the well-known “plan-do-check-act” approach Integrate energy efficiency projects into existing management structures for continuous improvement Incorporates technical best practices with management best practices

8. Common feature of Plan-Do-Check-Act approach Source: Danish Energy Management-Specifications

9. Denmark, Ireland, Sweden, US, china, Thailand Energy Management Guidelines Train Employees Top Management Commitment Cross Divisional Energy Team Targets& Performance indicators Energy Use Baseline Energy Management Plan Energy Coordinator Continuous Improvement Document Energy Saving What Is Common In all Standards

10. Continuous improvement with EMS The energy consumption pattern with ad-hoc EE measures The energy consumption pattern Over the time with EMS

11. ISO 50001: UNIDO’s work Expert working group meetings Regional feasibility studies Industry survey - to assess current understanding and practices of EMS in order to inform the work of PC 242 - to identify future implementation issues that industry of developing economies will be faced once the standard is developed

12. Uniqueness and Importance of the Research Study UNIDO urges, - developing countries need to participate to development process of ISO EMS - the standard shall have relevancy for all sizes of enterprises, ISO PC 242 currently includes 21 member countries, BUT NOT SRI LANKA Research was targeted to fill the gap; make sure Sri Lanka participates the ongoing process Factory owners, Policy makers can be informed and prepared early Weaknesses and Barriers can be addresses earlier and be ready for ISO 50001

13. Objectives Assess the prevailing energy management practices Develop Energy Management Specifications (EMS) for industries in Sri Lanka Specific Objectives Introduce EMS in one industry sector (tea) in coordination with relevant organizations, identify barriers, constrains, needs Adopt existing standards suit Sri Lankan industries and develop EMS specifications and guidelines.

14. Approach 1. Review existing EMS 2. Identify key stakeholders and influential authorities and coordinate with them 3. Study energy consumption figures and potential improvement by energy audit report 4. Sample selection and walkthrough survey and data collection &analysis 5. Interview factory executives and assess the prevailing energy management practices 6. Identify the weaknesses by the organizational profile 7. Introduce EMS to factory executives 8. Identify existing and perceived needs and barriers for increased efficiency & energy Management Standard Implementation through a feedback survey 9. Review of existing International Standards to see if there are any areas where they should be further promoted, strengthened or re-oriented 10. Develop EMS for Tea Industry

15. Tea Production

16. Participants in the Survey and Awareness Programs 39 participants from 27 factories in 4 major tea growing districts Key Stakeholders Participated Sri Lanka Sustainable Energy Authority: Under Ministry of Power& Energy Sri Lanka Tea research Institute

17. The Organizational Profile Executives interviewed based using Energy Management Assessment Questionnaire (Prepared prior) Energy Management Matrix used to rank the factories under six major categories; Energy policy Organization Motivation Information System Marketing and awareness Investment Criteria

18. LevelPolicy And Systems OrganizationMotivationInformation Systems Training And Awareness Investment 4 3 2 1 0 The Best, Most Common & Worst Organizational Profiles From the results of the Energy Management Assessment Questionnaire and Assessment matrix

19. And, Causes could be so many.... !!! How to overcome them? The major hurdles for the adoption and implementation Barriers/ constrains No recognition/ certification for EMS yet Lack of organizational support Lack of proper market for technology and service Lack of technical knowledge within the factories Energy is a secondary responsibility Needs Training and demonstration programs on energy technology Assistance from other organizations Training programs on energy management standards Technical assistance from government authorities

20. Development of EMS to Sri Lanka The EMS was based on; Typical Features of an EMS (from existing ones) Example from other countries The existing well-worked management practices Results from data analysis Overcome weaknesses of existing practices Overcome barriers and constrains

21. Action Plan Define Technical Steps and Targets Determine Roles and Resources Raising Awareness and capacity building Motivation Create a Communication Plan and documentation Implement Action Plan Appoint an Energy Director/Manager Assignment of Energy Management Officer Establish an Energy Team Institute an Energy Policy Commitment to Continuous Improvement Review of energy aspects Estimate Potential for Improvement Establish Baselines and Goals Set Objectives and Targets Track and Monitor Analyze Data Recognize Achievements Internal Recognition External Recognition Assess Performance Management review Corrective and preventive action Review Action Plan

22. Energy Management System What Role Can National Authorities Play?

23. Environment ISO 14001 Quality ISO 9001/ Food Safety ISO 22000 Energy Management Recommendations

24. Thank You