Improving DSM project implementation and sustainability through ISO standards

Abstract

South African industries are challenged with above inflation electricity tariffs which may affect their competitiveness within their relative markets. In order to successfully manage these rising electricity costs and ensuing top market competition, a well organised demand side management (DSM) strategy must be implemented. Energy service companies (ESCos) have been assisting Eskom, South Africa’s leading electricity utility, in managing energy projects around the country. These DSM projects have introduced remarkable electricity and cost savings. However, the need for a sustainable energy management system (EnMS) within these projects does exist. This dissertation illustrates and discusses an EnMS designed to achieve maximum possible energy savings performances. The ISO 9 001 (quality management), ISO 14 001 (environmental management) and ISO 50 001 (energy management) standards were integrated for the development and implementation of this system. It provides a framework for project engineers and industrial clients to apply before, during and after project implementation. The use of the Plan-Do-Check-Act (PDCA) cycle will be applied throughout the dissertation. The PDCA cycle follows basic steps recommended by the relevant ISO standards. This cycle emphasises the concept of continual improvement. The developed EnMS was successfully implemented on various DSM projects. This selection includes previously maintained and new implemented projects. An analysis between the implementation and post- implementation performances supports the achieved results. The results of the case studies are presented in this dissertation. This dissertation illustrates that the continual improvement of an ISO based EnMS will result in a sustainable increase in electricity savings. An overall increase in project quality can be defined and measured according to the electricity consumptions and electricity cost savings. These electricity cost savings from the selected projects resulted to nearly R18 million during project implementation. A total amount of R52 million was already saved during the maintenance phase of 2014. This cost savings only reflect the results of the eight selected projects for the first eight months in 2014. The EnMS explained in this dissertation indicates that a continually controlled framework can improve the quality of DSM project implementation and sustainability. With the flexibility of changing the system according to impulsive constraints and client demands, the system can be used with various DSM projects.