ISO 50001 and different energy certifications


ISO 50001 is based on the management system model of constant development also used for other well-known standards such as ISO 9001 or ISO 14001 which is easy for organizations to participate in energy management efforts to improve value and ecological administration.

ISO 50001 provides a framework of requirements for organizations to:


  • Develop a policy for more efficient use of energy
  • Fix targets and objectives to meet the policy
  • Use data to better understand and make decisions about energy use
  • Measure the results
  • Review how well the policy works, and
  • Continually improve energy management.

The standard is used by many organizations all around the world to handle and decrease energy usees and costs, this tool is best to help implement an energy management system (EnMS).

Benefits of Certification

Certifying the company with ISO 50001 standards may benefit in many ways. A certified management system confirms that the company is working in a structured and strategic way to reduce the organization’s environmental footprint, and the company is committed to further improvement of environmental management.

Certification to the standard can contribute to:


  • Improvement of energy performance, including energy efficiency, use, and energy consumption.
  • Reducing environmental impact, including greenhouse gas emissions without affecting operations and simultaneously increasing profitability.
  • Constant enhancement of management structures.
  • To ensure proper measuring, certification, and coverage of energy consumption.
  • Credible market communication about energy performance efforts.

Key Requirements of ISO 50001

ISO 50001 requires organizations to establish a system for managing energy with the objectives of improving overall energy performance, reducing greenhouse gases, and developing an energy culture within the organization. To effectively comply with this standard, organizations must set energy objectives and targets, designate staff roles and responsibilities for implementing energy management systems as well as monitor progress toward their goals. Organizations are also expected to perform regular reviews of the effectiveness of their systems to maintain compliance with the standards outlined in ISO 50001.

The implementation of ISO 50001 includes documentation requirements that organizations must follow to create an efficient energy management system, such as Identification and categorization of energy aspects, Environmental Impact Assessment (EIA) methods, monitoring of energy consumption, and establishment of targets and objectives. Organizations must also develop a means to ensure compliance with legal and other obligations relating to energy efficiency and incorporate best practices related to energy use through process improvement. Lastly, the standard requires a continual improvement approach so that organizations are regularly striving to reduce their impact on the environment.

By meeting the requirements of the ISO 50001 standard, organizations can reduce their energy consumption and greenhouse gas emissions as well as increase efficiency. The requirements help organizations develop an understanding of how their energy is used in different processes, identify areas for improvement, and to establish objectives for reducing their energy use over time. Additionally, the standard ensures that organizations are continually improving their approaches to energy management to maximize efficiency and reduce environmental impact.

Since its introduction in 2011, the ISO 50001 standard has become one of the most widely adopted international energy management standards. ISO 50001 establishes requirements related to measuring and monitoring energy use, setting energy objectives and targets, planning energy performance improvement activities, assessing conformance with applicable legal regulations, and regularly reviewing the implementation of an energy management system. It also encourages organizations to involve stakeholders including employees and customers in their efforts to improve energy usage. By meeting its requirements, organizations can reduce the impact of their operations on the environment while also improving operational efficiency.


Steps for Achieving Certification to the Standard

To become certified to the ISO 50001 standard, organizations must demonstrate that they have met all of the requirements outlined in the specific ISO 50001 document. The first step is to perform an energy review, examining energy inputs and usage, as well as the organization’s processes and activities that use energy resources. Afterward, organizations must create a baseline for energy performance and create energy objectives that are achievable within a certain timeframe. Organizations should then develop policies addressing energy measures and their impact on the environment. Finally, plans for implementing the determined objectives must be developed to attain certification for compliance with the standards outlined in ISO 50001.

After implementing objectives, organizations must document their energy performance and consumption. The documents should include data on the actual quantities of energy used, along with methods being used to achieve the set targets. Organizations should also identify any opportunities for reducing physical resources and saving energy. The final step to becoming certified is external verification through a third-party certification – an approved certifier who can verify that a company has met all of the requirements outlined in ISO 50001 standards. This certification will demonstrate to customers, partners, and other stakeholders that an organization is committed to sustainable practices, assuring that it takes its environmental responsibilities seriously.

Once all processes have been established, the organization should develop a management system for documenting performance over time. The system should establish goals/targets for energy usage and make provisions for monitoring, measuring, analyzing, and evaluating its energy performance. It should also include plans to create corrective action or improvement activities to continually meet or surpass targets. Finally, it should contain records authorizing the release of documents used in association with the ISO 50001 standard.

The management system must detail all requirements to ensure it is consistent with the ISO 50001 standard. Once this system has been developed, organizations should determine the resources needed for the implementation of the plan and take steps to adjust existing procedures if necessary. After changes have been implemented and reviewed by an external validation body, organizations can now apply for formal assessment and obtain their certificate showing they are compliant with this international standard of energy management.

The ISO 50001 certification process can provide organizations with a clear path to optimize energy performance and increase efficiency. Energy management and conservation will improve, contributing to greater cost savings, improved environmental sustainability, and secure regulatory compliance. Because it is an internationally recognized standard that is applied worldwide in many different energy-consuming industries, companies that become certified will have a competitive edge over those that are not ISO compliant.


As technology advances and targets for energy efficiency become increasingly ambitious, forward-thinking organizations should adopt an attitude of continual improvement. The standard is fitted to meet the needs of innovative enterprises. It shares a common structure with the ISO 14001 Environmental Management System standard, which enabled the adoption of a coherent approach to managing environmental impacts.


Energy management is considered key to addressing climate change and creating more sustainable businesses. With ISO 50001 Energy Management System, the company can place optimizing energy consumption at the heart of its sustainability strategy. This can benefit businesses – in the form of savings and improved brand image and the planet.

Perform Achieve and Trade (PAT) Scheme

PAT is a monitoring tool to reduce Specific Energy Consumption (SEC) in energy-concentrated industries, with a linked market-based system to enhance the cost-effectiveness through certification of surplus energy savings that can be traded. It is a tool designed to achieve the required energy efficiency in energy-concentrated regions. Energy consumption norms and standards are set by the BEE for intensive industry sectors. Selected industries from energy-intensive sectors based on specified threshold levels are identified as Designated Consumers (DCs) within certain key sectors and are required to comply with the notified norms, rules, and regulations framed under Energy Conservation (EC) Act, 2001.

Renewable Purchase Obligation (RPO) how do you do this?

Renewable purchase obligation (RPO), as defined by Section 86(1) (e) of the Electricity Act 2003 (“EA 2003”) and the National Tariff Policy 2006, is a mechanism by which obligated entities are required to purchase a certain percentage of electricity from renewable energy sources as a percentage of total electricity consumption. Solar and non-solar RPOs are the two types of RPOs. The Ministry of Power (MoP) has announced the target RPO trajectory up to 2022, to achieve 175 GW of renewable energy by 2022, including 100 GW of solar energy capacity. The Obligated Entities of all States and Union Territories must adhere to and meet the RPO objectives for solar and non-solar electricity in a uniform manner.

Objectives of RPOs


  • Establish a centralized monitoring method for RPO compliance for all states and union territories via a web-based portal.
  • To compile a list of obliged entities and evaluate their RPO compliance.
  • To make the process of monitoring obligated entities’ RE transactions easier.
  • To create a database that will be used by SERCs to audit RPO compliance.
  • To make the RPO compliance process more transparent.
  • Create user interfaces for entities that are required to submit information on RE purchases.
  • Create user interfaces that allow monitoring agencies to cross-check data given by required entities.
  • Create a database for systems, as well as an analytical module, to examine the efficacy of RPO rules in different states.

The Electricity Act and the National Action Plan on Climate Change (NAPCC) lay out a strategy for boosting renewable energy’s share of overall generation. The Renewable Purchase Obligation (RPO) is a requirement imposed by the Central/State Regulatory Commission that applies to:


  • Distribution Licensee: Power Distribution Companies (DISCOMs);
  • Open Access Consumer: Those that buy power via power exchanges (IEX/PXIL), merchants, treaty obligations, and other sources.
  • Captive consumer: people who generate and consume electricity from coal/natural gas power stations that are not open to the public (primarily industrial users in cement, steel, chemical, etc. sectors.).

Eligible Renewable Energy Sources for RPO

All sorts of renewable energy sources that have been recognized or certified by the Ministry of New and Renewable Energy Sources (MNRE) are considered qualified renewable energy sources.

The following are examples of renewable energy sources that are eligible:-

(a) Non-fossil fuel (including Bagasse) based co-generation power

(b) Wind Power (including on-shore and off-shore)

(c) Biomass Power based on Rankine cycle technology

(d) Biomass Gasifier based power

(e) Biogas-based power

(f) Small Hydro, Mini Hydro, Micro Hydro Power

(g) Municipal Solid Waste and/or Refuse Derived Fuel (RDF) based power

(h) Solar PV and Solar Thermal power

(i) Hybrid Solar Thermal Power

(j) Geothermal Power

(k) Other hybrid technologies including renewable–renewable or renewable conventional sources, for which renewable technology is approved by MNRE

(l) Any other source as may be recognized or approved by MNRE.

Transaction of Renewable Energy Certificates (REC)

A REC is a market-based instrument that certifies a holder who owns one megawatt-hour (MWh) of electricity generated by a renewable resource. The generated RECs can be exchanged on CERC-approved power exchanges, Indian Energy Exchange (IEX), and Power Exchange India (PXIL) once the renewable energy generator consumes energy into the grid. RECs can also be sold to other individuals littering as a carbon credit to balance their emissions.

Categories of RECs

There are two categories of certificates:


  • Solar RECs are issued to eligible entities for the generation of electricity based on solar as a renewable energy source. Solar RECs include both PV and CSP technologies.
  • Non-solar RECs are issued to eligible entities for the generation of electricity based on renewable energy sources other than solar. Non-solar RECs include renewable energy technologies such as biomass, wind, biofuel, cogeneration & small hydro.

Eligibility of RECs

Eligible units are those renewable generators that meet the following criteria:


  1. The type of renewable source is approved by MNRE and the respective State Commission.
  2. Not have any Power Purchase Agreement (PPA) for the capacity related to such generation to sell electricity at a preferential tariff determined by the appropriate commission.
  3. Not having an agreement to sell electricity to a local distribution company at price not exceeding the pooled cost of power purchase of that distribution company
  4. Sells electricity to the distribution licensee of the area at a price not exceeding the pooled cost of power purchase of such distribution licensee, OR
  5. to any other licensee or an open access consumer at a mutually agreed price, or through power exchange at a market-determined price. Selling electricity to any entity other than a local distribution company at market-driven prices or otherwise.

How do RECs work?

As solar, wind, and other green energy flow into the electricity system, a Renewable Energy Certificate (REC) operates as an accountancy or monitoring tool. Because renewable energy sources create power that is identical to that generated by every other origin source, some type of tracking is essential. Because power is difficult and expensive to store in batteries, this accounting, and energy return to the grid is required. As a result, the majority of renewable-generated electricity that is not utilized by the generator is sent back into the power system to be used by other consumers. A REC will be issued to the renewable energy supplier, such as a homeowner with rooftop solar panels. Energy Certificates can be sold, however, most people use them to offset their personal power use.

Making of RECs

REC register India issues a renewable energy certificate (REC) when a renewable energy source generates one megawatt-hour (MWh) of power and transfers it to the grid. Five credits are available for a wind power station that generates 5 MWh of energy. It is not possible to acquire a REC that has previously been sold by the REC register in India. All renewable energy credits have a unique number and generally include information like the generating site, the type of renewable resource utilized, and a generation date stamp. REC transmission is tracked and monitored.

Requirements for RECs

Many states have passed legislation forcing utilities to purchase or generate renewable solar energy. These requirements are known as solar carve-outs. Furthermore, a Renewable Portfolio Standard (RPS) has been adopted in certain states, requiring power providers to generate a certain percentage of renewable energy each year. RPS mandates drive the Renewable Energy Certificate business in India. Renewable Energy Certificates (RECs) represent one megawatt-hour of electricity, regardless of where it was generated. The price, on the other hand, may vary depending on supply and demand. The use of intermediaries and brokers to assist REC arbitrage is common. However, by pushing for greater green energy production, the market permits renewable energy companies to save money on energy production while also lowering carbon emissions.


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