Energy management system ISO 50001 is an effective tool contributing to energy management towards sustainability. The Energy management standard is the basis for setting requirements for participating organizations and enterprises to commit improving the efficiency of energy on a regular and continuous basis. The ISO 50001 standard is applicable regardless of the size of the organization, whether it is a key energy user (KEU) or a small and medium-sized enterprise (SME). In addition to an overview of the ISO 50001 Energy management system standard, the article summarizes the current status, advantages and disadvantages as well as gives some recommendations to promote the implementation of the ISO 50001 Energy management system both for State management agencies and for enterprises.

1. ISO 50001 Energy Management System Standard [1, 2]

Figure 1. Variation of energy costs with sustainable energy management

In an enterprise equipped with an energy management system - or in other words with sustainable energy management, the energy cost rate will be reduced continuously. In this system, energy saving operation is performed regularly and continuously. Energy saving goals are established and achieved with a strategy, then the goals are enhanced and the program continues. Senior managers of the enterprise must recognize the importance and form a team of experts to ensure proper use of energy and ensure energy efficiency. The following figure 1 visually depicts the benefits of a sustainable energy management system.

In the world, there are many standards on energy management systems that have been issued very early, such as: ANSI/MSE 2000:2000 of the United States, DS 2403:2001 of Denmark, Chinese standard as GB/T 23331:2009, European standard as EN 16001:2009…

In June 2011, the international organization for standardization (ISO) issued ISO 50001:2011, Energy management systems – Requirements and guidelines for use. This standard provides a model of an energy management system and guidelines for its use to help an organization systematically plan and manage energy use. It is designed to focus on improving energy efficiency, contributing to increased energy efficiency, while helping to use energy in a controlled manner.

In 2018, the ISO 50001:2011 standard was reviewed to be amend and supplemented to the ISO 50001:2018 version. With the updated version, ISO 50001 adopts a high-level management system structure (HLS - High Level Structure), which is designed to be able to integrate many different management systems (such as quality management, environmental management etc.).

The ISO 50001 can be applied to any organization, regardless of its size. In the context of Vietnam in 2021, that means more than 3000 key energy uers or all other small and medium enterprises can also apply this standard.

The ISO 50001 standard can be applied separately or integrately with other management standards. The Energy management standard does not describe specific performance criteria, it sets out requirements for participating organizations to commit to improving energy efficiency on a regular basis.

The certification of conformity to an energy management system according to ISO 50001 by an independent certification agency is not a mandatory requirement of this standard.

Besides ISO 50001 standard, other standards related to energy management are also developed and promulgated by ISO. Some typical standards are as follows:

- ISO 50002: Energy audits – Requirements with instructions for use.

- ISO 50003: Energy management systems – Requirements for organizations providing energy management system audit and certification services.

- ISO 50004: Guidelines for the implementation, maintenance and improvement of energy management systems.

- ISO 50006: Evaluation of energy performance using an energy baseline (EnB) and energy performance index (EnPI) – General principles and guidance.

The ISO 50001:2018 standard is based on the Plan-Do-Check-Act (PDCA) continuous improvement framework to continuously improve energy performance and incorporate energy management into daily practice of organizations. The following figure 2 depicts the Plan - Do - Check - Act cycle of an ISO 50001:2018  Energy management system.

Figure 2: Plan - Do - Check - Act cycle

• Plan: understanding the context of the organization, establishing the energy policy and energy management team, considering actions to address risks and opportunities, conducting energy reviews, identifying significant energy usages (SEUs) and establishing energy performance indicators (EnPIs), energy baselines (EnBs), energy targets and targets, action plans needed to deliver results that help improve energy efficiency implementation in alignment with the organization's energy policy

- Do: implementing action plans, operational and maintenance controls, communication, capacity assurance and reviewing energy performance in design and procurement.

- Check: monitoring, measuring, analyzing, evaluating, auditing and conducting management assessment on energy performance results and energy management system.

- Act: taking actions to resolve nonconformities and continuously improving energy performance results and the energy management system.

Benefits of ISO 50001 Standard:

The application of ISO 50001 standard helps businesses achieve the following benefits:

- Complying with the provisions of the Law on economical and efficient use of energy.

- Saving energy costs, thereby reducing production costs, increasing competitiveness.

- Effective using the available resources in the business.

- Continuous reducting energy consumption per product unit.

- Reducing emissions without affecting the operation process.

- Active controling energy costs, reducing the impact of rising energy prices.

- Having records of saving levels for internal use of enterprises and submitting them to state management agencies as prescribed by law.

- Creating the image of a green and clean manufacturing enterprise to the public, business partners, customers and importers.

2. Actual situation of implementing energy management system according to ISO 50001 standard in Vietnamese industrial enterprises

2.1 Some achievements

            - Legal policies, standards:

            The Law on economical and efficient use of energy issued in 2010 and Decree No. 21/2011/ND-CP dated March 19, 2011 stipulate that key energy users must apply the Energy management model. The main contents of the Energy management model are described in Article 8 of Decree No. 21/2011/ND-CP. The legal documents do not specify that enterprises must comply with ISO 50001 standard, but the structure of the Energy management model described in the legal documents is also compatible with the ISO 50001 Energy management system standard. This is a premise to promote key energy users apply ISO 50001 standard. The Ministry of Industry and Trade in recent years has also issued Circulars stipulating energy consumption norms for energy consuming industries such as: paper manufacturing industry, steel manufacturing industry, beer and beverage industry etc. In the Circulars, specific energy consumption rates for the period up to 2020 and the period 2021-2025 have been specified. At the same time, they also guide businesses on how to determine energy consumption rates, energy saving solutions, apply energy consumption monitoring measurement systems and recommend applying an energy management system according to ISO 50001 .

In Vietnam, a set of standards on the energy management system corresponding to ISO 50001 has also been developed and promulgated. The TCVN ISO 50001:2012 Standard was issued in 2012 and in 2019 the ISO 50001:2019 Standard was issued. The latest set of standards (ie. ISO 50001:2019) is completely equivalent to ISO 50001:2018.

- Support programs to apply ISO 50001 Standard: The Ministry of Industry and Trade, the Northern Electricity Corporation, the Departments of Industry and Trade in some provinces and cities etc. have implemented many financial and technical support programs to help enterprises applying ISO 50001 Standard. Some international organizations also organize cooperation programs to improve the capacity of consulting and support teams for enterprises to apply ISO 50001. United Industrial Development Organization of United Nations (UNIDO) has implemented the project “Promoting energy efficiency in industry through system optimization and energy management standards in Vietnam”, which includes a component on capacity building for industrial enterprises to apply ISO 50001 standard, implemented in the period 2011-2015.

Many Vietnamese enterprises have built and applied the energy management system according to ISO 50001 standard. Some of them have simultaneously organized the assessment and received ISO 50001 certificate. According to ISO's statistics, up to September  2021, Vietnam has 74 businesses granted ISO 50001 certificates. Some of these units can be mentioned as: Song Cong Diesel Company, Vinamilk Company, Vicem Tam Diep Cement Company, CP Food Production Company (animal feed), Colusa-MILIKET Food Joint Stock Company, Prime Group’s companies etc.

2.2 Some advantages

- Businesses’  awareness has been improved: after more than 10 years of implementing  the Law on economical and efficient use of energy as well as applying ISO 50001 standard, businesses' awareness of energy saving in general and application of the energy management system in particular has been greatly improved, especially at key energy users. This is due to the propaganda, awareness improvement and inspection by state management agencies. Almost every key energy user has appointed at least 1 full-time staff with the title of Energy Manager. Enterprises have also formed their Energy Management Boards with the participation and responsibility of senior leaders.

- Realistic requirements for businesses to reduce energy costs: high energy prices, high energy costs require businesses to constantly control and find ways to apply energy saving measures.

- The number of enterprises applying ISO 50001 standard is increasing and diversified in sectors. This creates a trend as well as good examples for other businesses to learn and follow.

- Actual requirements from the market: for enterprises processing for brands (such as in textile, leather and footwear industry etc.) or enterprises that export goods to markets with high requirements for environmental protection and sustainable development, building an energy management system according to ISO 50001 or equivalent standards is a high advantage, sometimes compulsory.

- Increasing requirements of state management agencies: State agencies have tightened energy audits, reportes on energy use situation, on annual and 5-year energy use plans. This have urged enterprises to seriously compliance with law. In addition, the Circulars stipulating energy consumption norms for many industries/fields have also been issued to promote the application of energy saving and energy management more and more substantively.

2.3 Some difficulties and limitations

- Significant investment costs: the necessary costs to build and apply an energy management system according to ISO 50001 include consulting costs, costs for measuring devices, human resource training costs, cost of implementing energy-saving solutions etc Those costs are significant for businesses, while in the short term, the direct benefits are not clear.

- Limited human resources: in key energy users there are officials and specialists in charge of technical or energy-related matters. However due to the limited number of employees, in many enterprises the technical staff have to concurrently hold many tasks. Therefore, it is difficult to appoint a “real” energy officer or set up an energy team/group. In addition, the knowledge and skills on energy saving and energy management of the majority of management personnel in the enterprise are also limited.

- The difficulties such as consulting teams (for applying ISO 50001 standard) are lacking and weak or the underdeveloped market of ESCO energy-saving services etc. are also factors that hinder the effective application of energy management systems in enterprises.

3. Some recommendations to promote the implementation of energy management systems according to ISO 50001 in industry

3.1 Recommendations to State management agencies

- Sufficiently develop and issue Vietnamese standard documents on energy management in accordance with international energy management standards in order to facilitate enterprises and related organizations in deploying the energy management system, for example ISO 50002, ISO 50003, ISO 50004 standards etc.

- Organize the development and compilation of detailed guidance documents to apply ISO 50001 standard for different industries/fields.

- Develop preferential policies: enterprises that have applied this standard are given priority to access preferential capital sources for energy efficiency, priority to participate in capacity improvement programs etc.

- Strengthen the conducting programs and projects to improve the capacity and develop consulting teams (for applying the energy management system according to ISO 50001), improve the capacity of the energy management staff at enterprises.

- Strengthen the inspection of the state management agencies for the compliance with the enterprises’ obligations on energy efficiency, including the obligation to apply the energy management system.

3.2 Recommendations for businesses

- Currently, applying the energy management system according to ISO 50001 is becoming a trend in enterprises in Vietnam, especially in key energy users. The quick and early application of this standard means that businesses will have more competitive advantages.

- The strong support and participation of senior managers/leaders is a prerequisite and a key to success for the application of energy efficiency projects as well as of the energy management system according to ISO 50001.

- For enterprises that have applied the quality management system according to ISO 9001 or environmental management according to ISO 14001, the continued application of the energy management system according to ISO 50001 is very convenient. The reason is the availability of human resources knowledgeable and familiar with ISO management systems as well as the inherition of many other available resources of quality and environmental management systems ( ie. documents, measuring devices, etc.)

- The application of the energy management system, besides maintaining sustainable energy saving at the company, also brings a good image to the business with the community and business partners about social responsibility. This proves the commitment and participation of enterprises in sustainable production, protection of natural resources and environment.

MSc. Bui Thanh Hung, HUST

& Vietnam Energy Conservation and Energy Efficiency Association

References:

[1] ISO 50001:2018 Standard.

[2] Document on ISO 50001 of the UNIDO’s project "Promoting energy efficiency in industry through system optimization and energy management standards", 2011-2015.

[3] Marvin T. Howell. “Effective Implementation of an ISO 50001 Energy Management System”, ASQ Quality Press, 2014.

[4] https://quacert.gov.vn/en/iso-50001-va-tiet-kiem-nang-luong.nd150/thuc-day-hieu-suat-nang-luong-trong-cong-nghiep-thong-qua-toi-uu-hoa-he-thong-va-cac-tieu-chuan-quan-ly-nang-luong-tai-viet-nam.i402.html

[5] https://tietkiemnangluong.evn.com.vn/d6/news/Quan-ly-nang-luong-theo-ISO-50001-Doanh-nghiep-da-chu-dong-hon-115-109 -6839.aspx