How to Conduct an Energy Review for ISO 50001

How to Conduct an Energy Review for ISO 50001

Reading Time: ~12 minutes

Key Takeaway: Knowing How to Conduct an Energy Review for ISO 50001 helps you find where your energy goes, what drives consumption, and where to save the most — forming the backbone of a strong Energy Management System (EnMS).

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Introduction (PAS Framework)

Problem: Many companies struggle with rising energy costs but don’t know where the waste comes from. Without data or analysis, their energy-saving efforts become guesswork.

Agitation: This leads to frustration — management expects results, but the team can’t show clear proof or progress. Energy-saving projects may fail to deliver real impact or ROI.

Solution: That’s where How to Conduct an Energy Review for ISO 50001 comes in. It’s a systematic process to identify significant energy uses, understand influencing factors, and set measurable targets. In this guide, we’ll break down every step in simple terms so you can perform a successful review confidently.

Summary Box:
✅ What an energy review is and why it matters
✅ Step-by-step process under ISO 50001
✅ Tools and techniques you can use
✅ Common mistakes to avoid

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How to Conduct an Energy Review for ISO 50001

To meet ISO 50001 requirements, every organization must carry out an energy review. This review forms the foundation for your Energy Management System (EnMS) and determines how you manage, monitor, and improve energy performance over time.

Let’s go through How to Conduct an Energy Review for ISO 50001 step-by-step — in plain, practical language.

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1. Understand What an Energy Review Really Means

An energy review is not just an audit. It’s a detailed analysis that helps you:

• Understand where and how energy is used

• Identify your Significant Energy Uses (SEUs)

• Determine performance indicators and baselines

• Spot opportunities for improvement

In short, it’s your energy roadmap.

When done properly, the energy review links your data, processes, and goals — turning energy management into a continuous improvement cycle.

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2. Define the Scope and Boundaries

Before diving in, clearly define what’s in and what’s out of your review.

Scope refers to what activities, facilities, or processes you’ll include.
Boundary refers to where they are physically located or organizationally controlled.

For example:

• A company may include its main factory and warehouse in the scope.

• It may exclude its leased retail outlets if it doesn’t control their energy bills.

Defining these early avoids confusion later and ensures consistency across data collection and reporting.

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3. Gather Energy Data

You can’t manage what you don’t measure. Data is the backbone of your review.

Types of data to collect:

• Energy consumption: Electricity, fuel oil, natural gas, LPG, solar, etc.

• Operational data: Production output, working hours, weather, occupancy.

• Equipment data: Ratings, usage hours, efficiency levels.

• Historical data: At least 12 months (preferably 24) to spot patterns.

Sources of data:

• Utility bills

• Submeters and smart meters

• SCADA systems or building management systems

• Manual logs

Pro tip: Organize data in spreadsheets or energy management software for easier trend analysis.

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4. Identify Significant Energy Uses (SEUs)

This is one of the most critical parts of How to Conduct an Energy Review for ISO 50001.

An SEU is an area, system, or equipment that consumes a large portion of total energy or offers potential for big savings.

How to find SEUs:

• Rank systems by energy use (e.g., HVAC, compressors, motors, lighting).

• Consider both consumption and improvement potential.

• Use Pareto analysis (80/20 rule): 20% of systems often account for 80% of usage.

Examples of SEUs:

• Air compressors

• Chiller systems

• Ovens or furnaces

• Pumps and motors

• Building lighting systems

Once identified, these SEUs become your focus for monitoring and improvement.

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5. Analyze Energy Performance

Now that you know your SEUs, analyze how and why they consume energy.

Key steps:

• Plot consumption trends (monthly or daily).

• Compare energy use against influencing variables like production output or temperature.

• Calculate Energy Performance Indicators (EnPIs).

Examples of EnPIs:

• kWh per unit produced

• MJ per m² cooled area

• Litre of diesel per tonne delivered

These indicators help you quantify performance and monitor progress later.

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6. Establish Energy Baselines

An energy baseline (EnB) is a reference point — it shows your normal or past performance level.

To set it:

• Use historical data that represents typical operating conditions.

• Exclude anomalies like breakdowns or special events.

• Link the baseline to your chosen EnPIs.

For example:
If your average electricity use per tonne of product was 120 kWh in 2023, that becomes your baseline.

Any improvement beyond that shows measurable savings.

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7. Identify Energy-Saving Opportunities

This is where the real value of the review shines.

Analyze your SEUs and brainstorm where energy losses or inefficiencies occur.

Look for opportunities such as:

• Low-cost / no-cost improvements:

  • Fix leaks in compressed air systems

  • Adjust temperature setpoints

  • Improve maintenance schedules

• Medium-cost improvements:

  • Upgrade to LED lighting

  • Install variable speed drives (VSDs)

  • Improve insulation

• High-cost / strategic projects:

  • Replace chillers with high-efficiency units

  • Install solar PV systems

  • Recover waste heat for reuse

Tip: Use a simple priority matrix — rate each opportunity by potential savings vs. investment cost.

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8. Document Findings

ISO 50001 requires that all energy review results be documented and maintained.

A typical Energy Review Report includes:

• Scope and boundaries

• Energy data sources and summaries

• Identified SEUs

• Baselines and EnPIs

• Identified improvement opportunities

This documentation serves as your reference for audits and management review.

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9. Develop an Action Plan

Once you’ve identified opportunities, turn them into actionable steps.

Each action plan should include:

• Objective: What you want to achieve (e.g., reduce HVAC energy by 10%).

• Actions: What you’ll do (e.g., upgrade controls, service compressors).

• Responsibilities: Who’s in charge.

• Timeline: When actions will be completed.

• Resources: Budget, tools, and manpower required.

• Expected results: Energy or cost savings estimated.

These action plans will be integrated into your EnMS for continuous monitoring and improvement.

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10. Monitor and Review Regularly

Energy reviews are not one-time exercises. ISO 50001 promotes the Plan-Do-Check-Act (PDCA) cycle — meaning you must revisit and refine your review periodically.

Monitor regularly:

• Track EnPIs monthly or quarterly.

• Update baselines if significant changes occur (new equipment, new products, or expansions).

• Conduct internal audits to verify performance.

Review annually:

• Check if objectives and targets were achieved.

• Revise action plans where necessary.

• Present findings to top management for strategic decision-making.

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11. Tools and Techniques to Support Your Review

Use technology and analysis tools to make your energy review more accurate and efficient.

Common tools:

• Energy monitoring software: For real-time tracking and analysis.

• Thermal imaging: To detect heat loss or equipment inefficiency.

• Data loggers: To record consumption over time.

• Regression analysis: To study correlations (e.g., energy use vs. production).

• Benchmarking: Compare with industry peers or internal plants.

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12. Common Mistakes to Avoid

Even experienced teams make errors when learning How to Conduct an Energy Review for ISO 50001. Avoid these pitfalls:

❌ Collecting incomplete or inconsistent data
❌ Ignoring influencing variables (like production volume)
❌ Failing to involve all relevant departments
❌ Not updating baselines after operational changes
❌ Treating the review as a one-time project instead of an ongoing process

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13. Example of an Energy Review in Practice

Let’s take a quick case example from a Malaysian manufacturing plant:

Scenario:
A food packaging company wants to implement ISO 50001.

Steps they took:

1. Defined scope — main factory only.

2. Collected 24 months of electricity and natural gas data.

3. Identified SEUs — chillers (40%), compressors (25%), and ovens (20%).

4. Set EnPIs — kWh per 1,000 packaging units.

5. Established baseline — 120 kWh/1,000 units.

6. Found opportunities — replacing old chillers, fixing compressed air leaks, optimizing oven scheduling.

7. Implemented changes and monitored monthly.

Results:
Within 12 months, the plant achieved a 15% reduction in energy intensity and saved RM 240,000 annually.

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14. The Role of Cross-Functional Teams

Conducting an energy review is not just the energy manager’s job. Collaboration across departments ensures success.

Key roles:

• Maintenance team: Understands equipment performance and issues.

• Production team: Can suggest process adjustments.

• Finance: Evaluates payback and budget.

• Management: Provides support and approval for initiatives.

When everyone is involved, the review becomes more accurate — and the action plans more practical.

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15. Linking the Review to Continuous Improvement

ISO 50001 revolves around improvement. Your review results should directly feed into the PDCA cycle:

• Plan: Use review findings to set objectives and targets.

• Do: Implement energy-saving actions.

• Check: Measure performance against EnPIs.

• Act: Adjust processes, update baselines, and plan next steps.

Each review builds upon the last — helping your organization reach higher efficiency and lower costs over time.

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Summary & Call to Action

Mastering How to Conduct an Energy Review for ISO 50001 isn’t just about compliance — it’s about making energy management a strategic advantage. With a structured review, you’ll gain full control of your energy performance, identify real savings, and strengthen your ISO 50001 system for long-term results.

If you’re ready to start your energy review or need expert guidance tailored to your facility, WhatsApp or call 0133006284 today. Let’s make your ISO 50001 implementation smarter, stronger, and more effective.