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 ISO 50001 is, what benefits it offers companies, and what the certification process looks like. You will also find out how you can utilise funding opportunities to make the introduction of an energy management system more cost-effective.
What is a management system?
Before we delve deeper into the matter, we would like to address two points that are important before we move on to the energy management system.
The first question is one that we hear regularly, and it goes something like this: “We have a web interface here where we display our energy consumption. Is that already an energy management system?”
This can usually be denied quickly, although many providers of such systems talk about an energy management system: strictly speaking, these are energy monitoring systems, which are not management systems. However, an energy monitoring system can be indispensable for the smooth running 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 to deliver services and products of consistent quality, ISO 14001, an environmental management system that helps to reduce the environmental footprint. And ISO 50001, the energy management system discussed here.
What is an energy management system according to ISO 50001? Definition and advantages
ISO 50001 offers companies a wide range of benefits that encompass both economic and environmental aspects. One of the biggest advantages is the saving of energy costs. Systematic analysis and optimisation of energy consumption can often save 10-30% in energy costs, and in some cases even more. This is achieved by identifying inefficient processes, the conscious use of energy, and the implementation of specific measures to reduce consumption. This includes, for example, utilising existing energy flows that have previously been lost.
These measures are usually only made possible by the next benefit of the energy management system: increasing energy efficiency. The management system enables continuous monitoring and improvement of energy use, allowing 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.
Caution: There are 20 months from the date when the threshold is reached until the management system must be certified. At this point, such companies are exempt from the obligation to carry out an energy audit.
However, a company that is subject to an energy audit has the option of choosing one of two paths: either carrying out an energy audit in accordance with DIN 16247-1 or introducing an energy management system.
In general, an energy audit can be implemented more quickly, costs are lower, and there is no structural integration into the company. The overall effort is therefore lower, but there is also no continuous optimisation and monitoring of processes. Often, the repeat audit (carried out by us, for example), which takes place after four years, does not reveal any changes. 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 measuring and monitoring system to continuously monitor energy consumption.
- Training employees to raise awareness of energy-efficient behaviour.
- Development of measures to save energy and optimise processes.
- Internal review & management review
- Carrying out an internal audit to check the effectiveness of the management system.
- 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.