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Guidance to Energy Management Ministry of Energy and Mineral Resources No.14 year 2012

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Business Partner Evaluation

Guidance to Energy Management

Ministry of Energy and Mineral Resources No.14 year 2012

Business Partner Evaluation

We are pleased to present the guidance to Energy Management based upon the Ministry of Energy and

Mineral Resources No.14 year 2012.

This guidance provides a detailed steps to implement the Energy Management to help you reduce the energy

costs and mitigate greenhouse gas emissions when consuming energy . In addition, international standard for

implementing the Energy management is also introduced in the guidance, particularly the ISO 50001. We

believe that the successful energy management implementation usually occur when the commitment of the top

management is implemented through a continuous improvement management system without seeing whether

it is a mandatory by the government or your voluntary actions.

We also welcome the change to discuss this guidance and its implementation for your business in the year

ahead.

Lufaldy Ernanda

Head of Climate Change and Sustainability

[email protected]

Foreword

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Business Partner Evaluation The Statistics

Energy use refers to use of primary energy before transformation to other

end-use fuels, which is equal to indigenous production plus imports and

stock changes, minus exports and fuels supplied to ships and aircraft

engaged in international transport.

International Energy Agency (IEA Statistics © OECD/IEA,

http://www.iea.org/stats/index.asp).

Catalog Sources World Development Indicators

Electric power consumption measures the production of power plants and

combined heat and power plants less transmission, distribution, and

transformation losses and own use by heat and power plants.

International Energy Agency (IEA Statistics © OECD/IEA,

http://www.iea.org/stats/index.asp), Energy Statistics and Balances of Non-

OECD Countries and Energy Statistics of OECD Countries.

Catalog Sources World Development Indicators

World’s Energy Use and Electricity Use per capita

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Business Partner Evaluation

The background of the MEMR No.14 year 2012

(hereafter referred to the regulation) is law No.30 year

2007 regarding the Energy and Government Regulation

No. 70 year 2009 regarding the Energy Conservation.

The key issues introduced in the regulation are;

1. Energy Management is mandatory for energy user

above than 6000 ton oil equivalent (clause 3).

2. The Energy Management covers (clause 5):

a) Appointing Energy Manager

b) Establishing Energy Conservation program

c) Conducting Energy Audit periodically

d) Implementing Energy Audit recommendations

e) Reporting to Government

The Energy Management

Guidance to the MEMR No.14 year 2012

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Business Partner Evaluation

The disincentives are:

1. Warning by the government (Formal letter)

2. Public announcement

3. Fine (5% from total energy costs per year)

4. Energy Supply reductions (5% from energy

consumption per month)

The detailed information is provided and clearly stated in

the clause 16, point 1 to 13.

The Disincentives

Clause 16, point (2):

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Business Partner Evaluation General Guidance

Steps to comply the regulation:

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Conducting Energy

Audit

Implementing Audit

Recommendations

Appointing Energy

Manager

1. The Energy Audit must

be conducted at least

once in three (3) years.

2. The Energy Audit can

be done by internal

auditor or using

external accredited

body.

3. The Energy Auditor

must have personal

certification from BNSP.

Note: You can check the

schedule of personal

certification for your

Energy Auditor in the

ESDM website.

1. Appointing Energy

Management Team

2. The Energy

Management Team lead

by Energy manager

3. The Energy Manager

must have personal

certification from BNSP.

Note: You can check the

schedule of personal

certification for your Energy

Manager in the ESDM

website.

1. In the case of

recommendation does

not require

investment, you

should implement the

recommendation less

than 1 year after the

audit.

2. For low cost

implementation,

should be

implemented within 2

years.

3. High cost

implementation is

within 5 years.

Reporting to

Government

1. Yearly report must be

submitted to the

Ministry of ESDM (i.e.

Directorate General

EBTKE), governor

and regional

government.

2. The Energy

Management report

must be submitted

within period of

January to 31st March

every year.

3. The first report must

be submitted in

January 2013.

Business Partner Evaluation Energy Conversion

You need to calculate your energy consumption per year

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• Power, Gasoline, HSD, MFO, IDO, PPO, Natural gas, Coal, LPG, PGN, CNG, etc.

1. List your energy sources

• kWh/year, liter/year, MMBTu/year, gallon/year, etc.

2. Record your energy consumption for every energy source

• TJ (Terajoule) or GJ (Gigajoule) 3. Convert your energy consumption to energy unit

• NCV (MFO oil) = 41.02 TJ/Gg

• Density (MFO oil) = 990 kg/m3

• 6000 ton oil (MFO oil) = 246.10 TJ

4. Compare to energy per unit oil (we use MFO for conservativeness)

• If your consumption more than 246.10 TJ, you have obligation to establish Energy Management.

5. Final result

Energy sources identification

Energy consumption measurement

Conversion

Check the quality of information and data

Cross check with your energy monitoring system

Final cross check

Final calculation and decision

The Activities:

To find whether you have obligation to implement

Energy Management or not.

To help you defining your cost saving from

energy management

The concept are: Measurable, Agreed, Realistic

Commitment of Implementation

The Goals:

Business Partner Evaluation Energy Policy in Indonesia

Regulation Framework Personal Competency Framework

Law and Regulation to Energy

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PP No.70 year 2009

(Energy Conservation)

MESDM 12 year 2012

(Fuel Energy - Oil Consumption and Control)

UU No.30 year 2007

(The National Energy)

Permen Nakertrans No.321 and

No.323/MEN/XII/2011

(SKKNI Energy Manager)

Permen Nakertrans No. 614 ,

September 2012

(SKKNI Energy Auditor)

MESDM 13 year 2012

(Power/Electricity Saving)

MESDM 14 year 2012

(Energy Management)

Business Partner Evaluation Global Energy Management Standards

Various countries have issued energy management

standards since 2000. The followings are applied

extensively:

Europe: DIN EN 16001:2009

China: GB/T 23331-2009

International: ISO 50001:2011

The ISO 50001:2001 standard will supplement the

ISO9001 quality management system and ISO14001

environmental protection system standards and is

highly compatible with other national quality and

environmental systems. The standard will affect 60%

of energy consumers worldwide, and provide related

management strategies to public and private

organizations alike, thereby improving energy

efficiency, reducing costs and enhancing energy

efficiency performance.

Introducing ISO 50001

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Business Partner Evaluation

Establishing a sustainable, effective

and improved energy management

system can directly help enterprises to

achieve the goal of reducing

operations management costs with

comparatively less investment.

Energy shortages have become a

major challenge facing most

populations today. With the

development of global economy,

competition amongst companies

has become increasingly intense.

Firms often think about how to reduce

operations management costs

effectively and enhance corporate

competitive capability sustainably

PDCA Cycle of ISO 50001

Continuous Improvement

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Energy Policy

Energy Planning

Implementation

and Operation

Checking

Management

Review

Monitoring

and Analysis

Nonconformities,

correction, corrective

and preventive action

EnMS

Internal Audit

of the EnMS

Business Partner Evaluation Your next steps

1. Measure your energy consumption per year;

2. If you consume more than 246.10 TJ per year,

you must implement an energy audit by accredited

body or internal certified auditor;

3. Implement audit recommendation;

4. Report your Energy Management plan to MEMR

and regional government.

5. If you want to consider continuously Energy

Management system, implement ISO 50001.

Actions to take

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1. Comply to regulation;

2. Cost savings from energy saving;

3. Greenhouse Gas emissions reduction by

reducing your energy consumption.

Benefits

Business Partner Evaluation

Jakarta Head Office : Laboratory & Office :

Menara Karya 10th Floor Infinia Park Blok B 92-93

Jl. H.R. Rasuna Said Block X -5 Jl. DR. Saharjo No. 45

Kav. 1-2, Jakarta 12950 Jakarta 12850 - Indonesia

Phone +62 21 579 44 579 Phone +62 21 837 95 571

Fax +62 21 579 44 575 Fax +62 21 837 95 572

Email [email protected] Email [email protected]

www.tuv.com/id [email protected]

Surabaya Branch Office : Medan Branch Office : Bandung Branch Office :

Graha Pena 17th Floor, Site R 1701 URo Building Wisma CIMB Niaga

Jl. A. Yani No. 88 6th Floor, Zone 1 A 9th Floor, Suite 904

Surabaya 60234-Indonesia Jl. Imam Bonjol No. 23 Jl, Jend. Gatot Subroto No 2r

Phone +62 31 827 1142 Medan 20151-Indonesia Bandung 40262 - Indonesia

+62 31 827 1143 Phone +62 61 414 9467 Phone +62 22 731 3313

Fax +62 31 827 9634 Fax +62 61 416 0152 Fax +62 21 730 5258

Email [email protected] Email [email protected] Email [email protected]

Yogyakarta Branch Office : Batam Branch Office : Bali Branch Office :

Wisma Hartono 3rd Floor, Graha Pena 5th Floor, Suite R 501 IKAT PLAZA Buildind D, No 02-04

Jl. Jend. Sudirman No. 59 Jl. Raya Batam Center Jl. By Pass Ngurah Rai 505

Yogyakarta 55225-Indonesia Batam 29461-Indonesia Kuta, Bali 80361-Indonesia

Phone +62 274 551 970 Phone +62 778 460 750 Phone +62 361 722 929

Fax +62 274 551 980 Fax +62 778 460 760 Fax +62 361 722 929

Email [email protected] Email [email protected] Email [email protected]

TUV Rheinland Indonesia

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All rights reserved.

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