How companies benefit from energy management
You have probably landed on this article for one of three reasons:
- Your company has an energy consumption of more than 7.5 GWh/a, and you are obliged to introduce an energy management system
- According to EDL-G §8, you are obliged to carry out an energy audit and have seen that you do not have to do this if you introduce an energy management system
- You want to know what an energy management system is
In short, a management system in accordance with ISO 50001 offers a structured method for improving energy efficiency and reducing energy costs at the same time. But what exactly is behind the standard, and how do companies benefit from ISO 50001 certification?
In this article, we explain what the ISO 50001 standard is, what advantages it offers companies and what the path to certification looks like. You will also learn how you can take advantage of funding opportunities to make the introduction of an energy management system (EnMS) more cost-effective.
What is a management system?
Before we delve deeper into the subject matter, we would like to address two points that are important before we turn our attention to energy management systems.
The first question is one we hear regularly, and it goes something like this: “We have a web interface here where we display our energy consumption. Does that already constitute an energy management system?”
In most cases, the answer is no, even though many providers of such systems refer to them as energy management systems. Strictly speaking, these are energy monitoring systems, which are something completely different. However, an energy monitoring system can be indispensable for the smooth operation of an energy management system.
The next question that arises directly from this is: what actually is a management system?
A management system is a structured collection of processes, guidelines, and procedures aimed at efficiently achieving specific goals within an organisation. It ensures that all resources (such as people, time, and materials) are optimally utilised to achieve the desired results.
A management system helps to ensure quality, efficiency, and consistency. It defines how certain tasks are organised and carried out and ensures that the results meet predefined standards, and it usually operates according to the following principle:
- Goals and strategies: Defines what is to be achieved and how this can be done.
- Roles and responsibilities: Defines who is responsible for which tasks.
- Processes and procedures: Describes how the various tasks and activities must be carried out.
- Controls and monitoring: Used to monitor progress and ensure that everything is going according to plan.
- Documentation: Everything to do with the management system is often documented in the form of guidelines and reports to ensure transparency and traceability.
Well-known management systems include ISO 9001, a quality management system that helps companies deliver services and products of consistent quality, and ISO 14001, an environmental management system that supports the reduction of ecological footprints. And ISO 50001, the energy management system discussed here.
What is an energy management system according to ISO 50001? Definition and advantages
DIN EN ISO 50001 offers companies a number of advantages, both economic and ecological. One of the biggest advantages is the saving of energy costs. Through systematic analysis and optimisation of energy-related services, energy costs can often be reduced by 10–30%, and in some cases even significantly more. This is achieved by identifying inefficient processes, using energy consciously and implementing specific measures to reduce consumption. This includes, for example, utilising existing energy flows that were previously lost.
These measures are usually only made possible by the next advantage of the energy management system: increased energy efficiency. The EnMS enables continuous monitoring and improvement of energy use, enabling companies to waste less energy and operate more efficiently in the long term.
Improving energy efficiency also goes hand in hand with a reduction in CO₂ emissions. Lower energy consumption means fewer greenhouse gases are emitted, which contributes to achieving sustainability goals and makes companies more environmentally friendly. This is particularly beneficial for companies operating in sectors where sustainability is playing an increasingly important role.
ISO 50001 vs. energy audit DIN 16247: Which is the better choice?
Since 18 November 2023, Section 8 EnEfG stipulates that all companies with an average energy consumption of more than 7.5 GWh/a (equivalent to 7,500 MWh/a or 7,500,000 kWh/a) over the last three years are obliged to introduce an energy management system.
Please note: From the date of exceeding the limit, there are 20 months until the management system must be certified. Such companies are exempt from the obligation to carry out an energy audit at this point in time.
However, companies that are subject to energy audits have the option of choosing one of two approaches: either conducting an audit in accordance with DIN 16247-1 or introducing an energy management system.
In general, an audit can be implemented more quickly, incurs lower costs and does not require structural integration into the company. The overall effort is therefore lower, but there is also no continuous optimisation or control and measurement of processes. Often, no changes are found during the repeat audit (e.g. by us), which takes place after four years. There is no obligation to implement or improve.
The energy management system, on the other hand, is much more comprehensive and is fully integrated into the company’s processes. On the one hand, this naturally results in a more sustainable improvement and incremental optimisation of all processes, but on the other hand, it means more effort, a longer implementation time, and higher costs. In addition, increased technical expertise must be available within the company or be brought in from outside. You are, of course, welcome to contact us at any time.
For a company with up to 50 GWh/a, it can be assumed that around half a job to one job per year must be spent on operation. For several sites, however, this can be significantly higher. Therefore, the introduction of ISO 50001 is usually only worthwhile for energy-intensive companies that are obliged to introduce it under the new legislation anyway.
The path to ISO 50001 certification
The introduction of an ISO 50001 energy management system can either be carried out by a trained employee of the company or by an external consultant. Regardless of who carries out the implementation, the process is largely similar:
- Planning & initial analysis
- Defining energy targets and an energy policy for the company.
- Recording of current energy consumption, creation of an energy assessment
- Identification of the largest energy consumers and potential savings.
- Implementation of the energy management system
- Establishment of an energy team responsible for implementation.
- Introduction of a measurement and monitoring system to continuously monitor energy flows.
- Training employees to raise awareness of energy-efficient behaviour.
- Development of measures to save energy and optimise processes.
- Internal review & management review
- Conducting an internal audit to check the effectiveness of the management system (PDCA cycle)
- Management review: Are the measures in line with the company’s objectives?
- External certification
- An independent certifier checks the energy management system.
- If all requirements are met, the company receives ISO 50001 certification.
- After certification, there is an annual review (surveillance audit) and re-certification every three years.
If you have any further questions about introducing an energy management system, you are welcome to contact us at any time. We will support you with the introduction, the definition of energy targets, and the explicit planning and implementation of measures.
ISO 50001: Costs and funding opportunities
We have now given you a rough overview of the introduction of an energy management system. The question remains as to what the costs of certification might be for you.
On average, the total costs for SMEs can be between €15,000 and €50,000, while sums of up to €200,000 are realistic for larger companies.
There are currently no wide-ranging subsidies available for the introduction of an energy management system. Information on this that can be found on the Internet or via GenAI is mostly based on outdated funding guidelines that are no longer valid. However, there may be individual regional or sector-specific funding pots. If necessary, you can look in the funding database or on comparable portals.
If you have any questions about ISO 50001 and all associated obligations, we are always at your disposal. Feel free to contact us today.
This blog article was created with the support of generative AI and then carefully supplemented and corrected by us. In addition, comparable tools were used to perform SEO optimisation (this ensures that search engines find and rank this article highly). For this reason, the following keywords were added to the text, which could not be included in the text without compromising readability: Energy management according to ISO 50001, ISO 50003, DIN ISO, ISO 50006, energy management system, guidelines, EMAS, DIN EN standard, ISO requirements, DIN EN 16247-1, improvement of energy-related performance, energy-related, continuous improvement, GWH, management systems, greenhouse gas emissions, Energy Efficiency Act, competitiveness, audits, energy use; In addition, the English version of the article was translated using comparable software but carefully revised by a non-native speaker. Please use the contact form in case of serious linguistic mishaps.