Iso 50006-2023

INTERNATIONAL ISO
STANDARD 50006
Second edition
2023-05
Energy management systems —

Evaluating energy performance using
energy performance indicators and
energy baselines
Systèmes de management de l’énergie — Évaluation de la
performance énergétique à l’aide d’indicateurs de performance
énergétique et de situations énergétiques de référence
Reference number
ISO 50006:2023(E)
© ISO 2023
ISO 50006:2023(E)
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© ISO 2023
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Published in Switzerland
ii © ISO 2023 – All rights reserved

ISO 50006:2023(E)
Contents Page
Foreword...........................................................................................................................................................................................................................................v
Introduction............................................................................................................................................................................................................................... vi
1 Scope.................................................................................................................................................................................................................................. 1
2 Normative references...................................................................................................................................................................................... 1
3 Terms, definitions and abbreviated terms............................................................................................................................... 1
3.1 Terms and definitions....................................................................................................................................................................... 1
3.2 Abbreviated terms............................................................................................................................................................................... 4
4 Overview of EnPIs, EnBs and energy performance.......................................................................................................... 4
5 Obtaining relevant energy performance information................................................................................................. 5
5.1 Initial-energy-performance-related information..................................................................................................... 5
5.2 Determining users of energy performance indicators........................................................................................ 6
5.3 Defining the energy performance indicator boundaries................................................................................... 6
5.4 Defining and quantifying energy flows............................................................................................................................. 7
5.5 Defining and quantifying variables related to energy performance...................................................... 8
5.6 Collecting data......................................................................................................................................................................................... 9
5.6.1 Data collection....................................................................................................................................................................... 9
5.6.2 Data quality.............................................................................................................................................................................. 9
5.6.3 Measurement....................................................................................................................................................................... 10
5.6.4 Data collection frequency......................................................................................................................................... 10
5.6.5 Identifying and analysing outliers................................................................................................................... 10
6 Determining energy performance indicators.................................................................................................................... 11
6.1 General......................................................................................................................................................................................................... 11
6.2 Expressing energy performance indicators............................................................................................................... 11
6.2.1 Statistical model............................................................................................................................................................... 11
6.2.2 Aggregated models......................................................................................................................................................... 13
6.2.3 Engineering model.......................................................................................................................................................... 13
7 Establishing energy baselines............................................................................................................................................................. 14
7.1 Concept of EnB...................................................................................................................................................................................... 14
7.2 Determining baseline period................................................................................................................................................... 14
8 Normalization....................................................................................................................................................................................................... 15
8.1 Concept of normalization............................................................................................................................................................ 15
8.2 Uncertainty of model...................................................................................................................................................................... 15
9 Maintaining energy performance indicators and energy baselines.......................................................... 15
9.1 General......................................................................................................................................................................................................... 15
9.2 Static factor changes....................................................................................................................................................................... 16
10 Monitoring and reporting of energy performance and demonstrating energy
performance improvement.................................................................................................................................................................... 17
10.1 General......................................................................................................................................................................................................... 17
10.2 Monitoring and reporting........................................................................................................................................................... 17
10.3 Demonstrating energy performance improvement............................................................................................ 17
Annex A (informative) EnPI and EnB planning process............................................................................................................... 19
Annex B (informative) Examples of EnPI boundaries.................................................................................................................... 21
Annex C (informative) Examples of energy performance indicators............................................................................ 22
Annex D (informative) Example of normalization stepwise process............................................................................ 25
Annex E (informative) Example of normalization............................................................................................................................. 27
Annex F (informative) Example of normalization — Multivariate–analysis........................................................ 31
Annex G (informative) Reporting aggregated information..................................................................................................... 35
© ISO 2023 – All rights reserved iii

ISO 50006:2023(E)
Bibliography.............................................................................................................................................................................................................................. 36
iv © ISO 2023 – All rights reserved

ISO 50006:2023(E)
Foreword
ISO (the International Organization for Standardization) is a worldwide federation of national standards
bodies (ISO member bodies). The work of preparing International Standards is normally carried out
through ISO technical committees. Each member body interested in a subject for which a technical
committee has been established has the right to be represented on that committee. International
organizations, governmental and non-governmental, in liaison with ISO, also take part in the work.
ISO collaborates closely with the International Electrotechnical Commission (IEC) on all matters of
electrotechnical standardization.
The procedures used to develop this document and those intended for its further maintenance are
described in the ISO/IEC Directives, Part 1. In particular, the different approval criteria needed for the
different types of ISO document should be noted. This document was drafted in accordance with the
editorial rules of the ISO/IEC Directives, Part 2 (see www.iso.org/directives).
ISO draws attention to the possibility that the implementation of this document may involve the use
of (a) patent(s). ISO takes no position concerning the evidence, validity or applicability of any claimed
patent rights in respect thereof. As of the date of publication of this document, ISO had not received
notice of (a) patent(s) which may be required to implement this document. However, implementers are
cautioned that this may not represent the latest information, which may be obtained from the patent
database available at www.iso.org/patents. ISO shall not be held responsible for identifying any or all
such patent rights.
Any trade name used in this document is information given for the convenience of users and does not
constitute an endorsement.
For an explanation of the voluntary nature of standards, the meaning of ISO specific terms and
expressions related to conformity assessment, as well as information about ISO’s adherence to
the World Trade Organization (WTO) principles in the Technical Barriers to Trade (TBT), see
www.iso.org/iso/foreword.html.
This document was prepared by Technical Committee ISO/TC 301, Energy management and energy
savings.
This second edition cancels and replaces the first edition (ISO 50006:2014), which has been technically
revised.
The main changes are as follows:
— concepts and technical aspects have been harmonized with the latest edition of ISO 50001:2018;
— definitions in Clause 3 have been updated in accordance with the latest edition of ISO 50001:2018
and considering a new approach for general harmonization under ISO/TC 301;
— upgrades have been made related to the normalization of energy performance indicators (EnPIs)
and corresponding energy baselines (EnBs);
— upgrades and new considerations have been made related to the new definition and requirement to
demonstrate energy performance improvement.
Any feedback or questions on this document should be directed to the user’s national standards body. A
complete listing of these bodies can be found at www.iso.org/members.html.
© ISO 2023 – All rights reserved v

ISO 50006:2023(E)
Introduction
0.1 Background
Energy performance evaluation is a tool which applies to all types of organizations and can be used
to evaluate the results of its efforts in energy management. Relevant variables affect the energy
consumption and energy efficiency of organizations. To effectively evaluate energy performance under
equivalent conditions, the effects of relevant variables should be taken into account by using the process
of normalization.
Measuring and monitoring of energy performance and demonstration of energy performance
improvement can be challenging because of the complexity of determining energy performance
indicators (EnPIs) and corresponding energy baselines (EnBs) which are appropriate for an organization
to better understand the energy consumed within the facilities, equipment, systems or energy-using
processes.
Improving energy performance helps organizations to become more competitive by reducing their
energy costs. In addition, improving energy performance can help organizations to reduce their energy-
related greenhouse gas emissions. Climate change and the need for decarbonization are major global
concerns. Reducing greenhouse gas emissions associated with energy consumption is a significant
tool in tackling climate change. Methods for monitoring and measuring energy performance to ensure
appropriate results are key aspects of this activity.
In those activities or processes in which no energy performance improvement has been planned,
benefits can also be obtained by using EnPIs and EnBs to manage operational control, identify
maintenance needs or identify significant deviations in energy performance.
Communicating the energy performance of the organization and its processes to appropriate person(s)
in the organization is a key element for success. It is also a key to building ongoing commitment and
engagement of top management to allocate resources for energy management including the effective
establishment of EnPIs and EnBs.
The technical information in this document enables an organization to meet the requirements of
ISO 50001 including using normalization in measuring, monitoring, analysing and evaluating its
energy performance and energy performance improvement. In this way, it can demonstrate continual
improvement in energy performance using EnPIs and corresponding EnBs.
0.2 Overview of contents
This document provides an organization with practical guidance related to managing energy
performance, including its evaluation, control and continual improvement through the establishment,
use and maintenance of EnPIs and the corresponding EnBs.
This document gives guidance on the selection of appropriate EnPIs according to the objectives of the
organizations which can achieve significant benefits by implementing them.
This document is intended to guide an organization in establishing, using and maintaining EnPIs and
EnBs in accordance with the requirements in ISO 50001.
The process described in this document can provide benefits to any organization, including those that
do not have an EnMS. Nevertheless, additional benefits can be obtained if this process is embedded
within an EnMS in accordance with ISO 50001.
vi © ISO 2023 – All rights reserved

INTERNATIONAL STANDARD ISO 50006:2023(E)
Energy management systems — Evaluating energy

performance using energy performance indicators and
energy baselines
1 Scope
This document gives guidance on how to establish, use and maintain energy performance indicators
(EnPIs) and energy baselines (EnBs) to evaluate energy performance in any organization including those
using ISO 50001. Additional guidance is given on how to measure and monitor energy performance and
This document is applicable to any organization, regardless of its type, size, complexity, geographical
location, organizational culture, the products and services it provides or its level of maturity in the field
of energy management.
2 Normative references
There are no normative references in this document.
3 Terms, definitions and abbreviated terms
3.1 Terms and definitions

For the purposes of this document, the following terms and definitions apply.
ISO and IEC maintain terminology databases for use in standardization at the following addresses:
— ISO Online browsing platform: available at https://w ww.iso.org/obp
— IEC Electropedia: available at https://w ww.electropedia.org/
3.1.1
baseline period
period of time used for comparison with reporting period (3.1.16)
Note 1 to entry: The purpose of the comparison can be monitoring of performance, evaluation of performance
improvement or determination of energy savings.
3.1.2
boundary
physical, virtual and/or organizational limits as defined by the entity for a stated purpose
Note 1 to entry: The entity may be an organization (3.1.14), group of organizations, region(s), subset of an
organization or other depending on the application.
Note 2 to entry: Physical can be equipment, systems, a building, a process, a group of processes, a site, or multiple
sites, under the control of an organization.
3.1.3
energy
electricity, fuels, steam, heat, compressed air and other similar media
Note 1 to entry: For the purposes of this document, energy refers to the various types of energy, including
renewable, which can be purchased, stored, treated, used in equipment or in a process, or recovered.
© ISO 2023 – All rights reserved 1

ISO 50006:2023(E)
[SOURCE: ISO 50001:2018, 3.5.1]

3.1.4
energy baseline
EnB
value providing a basis for comparison of energy performance (3.1.9)
Note 1 to entry: The data and method used to determine the EnB shall be retained as documented information.
Note 2 to entry: If the process for determination of the EnB uses relevant variables (3.1.15) for normalization
(3.1.13) or if the EnB is adjusted for changes in static factors (3.1.18), the information shall be retained as
documented information.
3.1.5
energy consumption
quantity of energy (3.1.3) applied
Note 1 to entry: Energy consumption can be represented in volume (e.g. litres of fuel), mass, weight units or
energy units (e.g. GJ, kWh).
[SOURCE: ISO 50001:2018, 3.5.2, modified — Note 1 to entry added.]

3.1.6
energy efficiency
ratio or other quantitative relationship between an output of process and an input of energy (3.1.3)
EXAMPLE Conversion efficiency, energy required/energy used, output/input, theoretical energy used to
operate/energy used to operate.
Note 1 to entry: The output of a process can be products, services, or energy.
Note 2 to entry: Both input and output should be clearly specified in terms of quantity and quality, and should be
measurable.
3.1.7
energy use
energy end-use
application of energy (3.1.3)
EXAMPLE Ventilation, lighting, heating, cooling, transportation, processes, data storage.
Note 1 to entry: Energy use is based on “what the energy is used for” as compared to energy consumption (3.1.5)
which is based on “how much energy is used”.
Note 2 to entry: This application can be from any energy type including renewables.
3.1.8
energy model
mathematical representation based on a data set describing the relationship between relevant variables
(3.1.15) and energy consumption (3.1.5) or energy efficiency (3.1.6) over a specified period of time
Note 1 to entry: The specified period of time can represent different perspectives of time such as baseline period
(3.1.1), reporting period (3.1.16), or period that reflects standard conditions.
3.1.9
energy performance
measurable result(s) related to energy efficiency (3.1.6), energy use (3.1.7) and energy consumption
(3.1.5)
2 © ISO 2023 – All rights reserved

ISO 50006:2023(E)
3.1.10
energy performance indicator
EnPI
measure used to quantify energy performance (3.1.9)
Note 1 to entry: If the EnPI is used for the demonstration of energy performance improvement (3.1.11) it refers to
energy efficiency (3.1.6) or energy consumption (3.1.5).
Note 2 to entry: The EnPI is defined by the organization (3.1.14).
Note 3 to entry: EnPI(s) can be calculated by using an energy model (3.1.8).
3.1.11
energy performance improvement
improvement in measurable results of energy efficiency (3.1.6) or energy consumption (3.1.5) related to
energy use (3.1.7), compared to the energy baseline (3.1.4)
3.1.12
energy target
quantifiable objective of energy performance improvement (3.1.11)
Note 1 to entry: An energy target can be included within an objective.
[SOURCE: ISO 50001:2018, 3.4.15]

3.1.13
normalization
process to enable analysis under equivalent or standard conditions
Note 1 to entry: Normalization can be used for the purpose of comparison of energy performance (3.1.9) or energy
performance improvement (3.1.11), which accounts for the changes in relevant variables (3.1.15).
3.1.14
organization
person or group of people that has its own functions with responsibilities, authorities and relationships
to achieve its objectives
Note 1 to entry: The concept of organization includes, but is not limited to, sole-trader, company, corporation, firm,
enterprise, authority, partnership, charity or institution, or part or combination thereof, whether incorporated
or not, public or private.
3.1.15
relevant variable
quantifiable factor that significantly impacts energy performance (3.1.9) and routinely changes
Note 1 to entry: Significance criteria are determined by the organization (3.1.14).
Note 2 to entry: In a statistical approach, relevant variables are identified from independent variables by using
significance criteria.
EXAMPLE Weather conditions, operating conditions (indoor temperature, light level), working hours,
production output.
3.1.16
reporting period
defined period of time selected for evaluating energy performance (3.1.9) and energy performance
improvement (3.1.11)
Note 1 to entry: In this document, the concept of reporting period includes the concept of monitoring period.

ISO 50006:2023(E)
3.1.17
significant energy use
SEU
energy use (3.1.7) accounting for substantial energy consumption (3.1.5) and/or offering considerable
potential for energy performance improvement (3.1.11)
Note 1 to entry: Significance criteria are determined by the organization (3.1.14).
Note 2 to entry: SEUs can be related to facilities, systems, processes or equipment.
[SOURCE: ISO 50001:2018, 3.5.6]

3.1.18
static factor
identified factor that significantly impacts energy performance (3.1.9) and does not routinely change
Note 1 to entry: Significance criteria are determined by the organization.
EXAMPLE Facility size, design of installed equipment, number of weekly shifts, range of products.
[SOURCE: ISO 50001:2018, 3.4.8]
3.2 Abbreviated terms
CDD cooling degree day
CUSUM cumulative sum
EnB energy baseline
EnMS energy management system
EnPI energy performance indicator
HDD heating degree day
SEC specific energy consumption
SEU significant energy use
4 Overview of EnPIs, EnBs and energy performance

An organization establishes EnPIs and EnBs to measure and monitor energy performance and
EnPIs provide relevant energy performance information to interested parties (e.g. internal users,
supply chain), to understand energy performance and take actions to control and improve energy
performance.
EnPI values quantify the energy performance of the entire organization or its various parts (e.g.
facilities, equipment, systems or energy using processes). Potential EnPIs need to be analysed to decide
if they are appropriate before being selected. EnPIs can be expressed by using an energy model and can
be reported in units of energy consumption (e.g. GJ, kWh) or energy efficiency (e.g. km/l).
Energy consumption of an organization can be significantly affected by relevant variables such
as weather, production, etc. If the organization has data which indicates that relevant variables
significantly affect energy performance, normalization should be carried out to enable comparison
of energy performance. Normalization is used to account for the changes in the relevant variables
to monitor and evaluate energy performance, and evaluate and demonstrate energy performance
improvement.

ISO 50006:2023(E)
Energy targets are set by the organization and may be based on identified and planned energy
performance improvement opportunities.
Figure 1 illustrates an example of the relationship between energy performance improvement, EnPIs,
EnBs, EnPI values and energy targets. Figure 1 also illustrates how energy performance improvement
is achieved when an EnPI value improves compared with the EnB, whether or not energy targets are
met.
The process to develop, use and update EnPIs and EnBs is described in detail in Clauses 5 to 10. This
process helps the organization to monitor and evaluate energy performance and demonstrate energy
performance improvement. The processes within the EnPI and EnB planning are presented in Annex A.
Key
X time
Y energy consumption
NOTE The trend of changing energy consumption indicates that there is (are) relevant variable(s) and
normalization is required.
Figure 1 — Example of conceptual relationship between energy performance, EnPIs, EnBs, EnPI
values and energy targets
5 Obtaining relevant energy performance information
5.1 Initial-energy-performance-related information

Organizations should identify current types of energy uses and evaluate current and past energy
consumption and energy efficiency based on measurement and other data. Significant energy uses
(SEUs) are identified by analysing this information together with factors that affect energy performance.
This process helps to identify the SEUs and prioritize opportunities for energy performance
improvement.
NOTE This process is defined in ISO 50001:2018, 6.3 as “energy review”.

ISO 50006:2023(E)
5.2 Determining users of energy performance indicators

EnPIs should be developed to meet the needs and expectations of different users and should be easily
understandable.
Multiple EnPIs can be required to meet user needs. Aligning the EnPI boundaries with functional
roles can ensure that the EnPIs meet user needs and that responsibility for managing the EnPI can be
effectively assigned.
EnPIs can be developed for internal or external users. Internal users can use EnPIs for a wide variety
of purposes such as, but not limited to, maintenance, operation and energy performance evaluation.
External users typically use EnPIs to meet information requirements derived from legal requirements
and other requirements (e.g. sustainability reports).
NOTE EnPIs and EnBs required for external purposes, such as those for government reporting, are not
always sufficient for managing energy performance improvement under ISO 50001 or for organizations wishing
to understand their actual energy performance improvement.
Table 1 describes some common EnPI users.
Table 1 — EnPI users

Types of EnPI users Typical needs
Top management Top management needs information from EnPIs to understand the energy
performance of the organization and to support energy performance
improvement actions.
Energy management Group who supports the organization, including top management in: a) setting up
team an EnPI, b) maintaining an EnPI, c) monitoring EnBs, current EnPI values, values of
all relevant variables in predetermined intervals, d) setting energy targets and
calculating extent of achievement of energy target, e) conducting normalization
and comparison of current EnPI values with EnBs and energy target, f) reporting
of EnPI values and deviations, and g) interpreting the results.
Plant or facility Typically controls resources within the plant or facility and is responsible for
management results. The plant or facility manager should understand both planned energy
performance and investigate and respond to significant deviations in energy
performance and in financial terms. Plant or facility managers may use all of the
EnPIs in their plant or facility including the EnPIs regarding their SEUs, and
comparable EnPIs from other sites for benchmarking purposes.
Operation and Responsible for using EnPIs to control and ensure efficient operation by taking
maintenance actions for significant deviations in energy performance, eliminating energy
personnel waste and undertaking preventive maintenance. Operation and maintenance
personnel may use the EnPIs relevant to the process or equipment for which
they have responsibility.
Engineers Plan, execute and evaluate an energy performance improvement action using
suitable EnPIs including the method(s) used to evaluate energy
performance improvement.
External users External users such as regulatory bodies, professional and sector associations,
EnMS auditors, customers or other organizations can need information from
EnPIs to feed into their relevant processes.
EnPI owner Person who is responsible for monitoring, analysing and reporting an EnPI and its
values.
5.3 Defining the energy performance indicator boundaries

To measure energy performance, suitable measurement boundaries for each EnPI should be specified.
When specifying an EnPI boundary the organization should consider the user needs (see 5.2) and also:
— organizational responsibilities in relation to energy management, including the level of control and/
or influence which the organization has over its energy performance;

ISO 50006:2023(E)
— the SEUs;
— facilities, equipment, systems or energy-using processes that the organization wishes to isolate and
manage;
— the ease of isolating the EnPI boundary by measuring energy consumption and relevant variables;
— the EnMS boundary;
— available data for energy consumption and relevant variables.
The three primary EnPI boundary levels are individual, system and organizational as described in
Table 2.
Additional information on EnPI boundaries can be found in Annex B.
Table 2 — The three EnPI boundary levels

EnPI boundary levels Description and examples
Individual (facility/equipment/ The EnPI boundary can be defined around the physical perimeter of a
energy-using process) facility, equipment or energy-using process which the organization wishes
to isolate and manage.
EXAMPLE 1 The energy use of steam production equipment separate from
other energy uses.
System The EnPI boundary can be defined around the physical perimeter of a group
of facilities/equipment/energy-using processes interacting with each other
that the organization wants to control and improve.
EXAMPLE 2 The steam production and the steam using equipment, such as
a dryer.
Organizational The EnPI boundary can be defined around the organization also taking into
account the responsibility in energy management of individuals, teams,
groups or business units as designated by the organization.
EXAMPLE 3 Steam purchased for a factory(ies), or a department of the
organization.
5.4 Defining and quantifying energy flows

The organization should identify energy flows across the boundary. The organization can use a diagram
(e.g. see Figure 2) to determine the energy information required to establish EnPIs. The diagram shows
energy flows within and across the EnPI boundaries. They can also include additional information, such
as metering points and product flows which are important for energy analysis and establishment of
EnPIs.
The organization should measure energy flows across each EnPI boundary. This includes delivered and
on-site generated energy. Consideration should be given to energy which crosses the EnPI boundary
and is stored.

ISO 50006:2023(E)
Key
M measurement
Figure 2 — Energy, raw material and product flow diagram
5.5 Defining and quantifying variables related to energy performance

Organizations should determine relevant variables for each EnPI boundary. For example:
a) using more electricity to produce some products compared to another, the organization should
consider using product mix as a relevant variable;
b) using more natural gas in the winter, the organization should consider using heating degree days
as a relevant variable.
The factor that affects the amount of energy consumption required should be considered for relevant
variables.
Table 3 presents considerations that are used to identify variables.
Table 3 — Considerations used to identify variables

Aspects Description
Inputs Input-related variables are based on the quality and/or quantity of inputs
which enter the boundary (e.g. milk entering a pasteurization process).
Process Process-related variables relate to the activities within the boundary. An
example can be the different process temperatures and residence times
required to complete process steps. In a building, a process related variable
can be occupancy.
Outputs Output-related variables are outputs which exit the boundary. In a
manufacturing process, an output related variable can be the quantity
of product produced.
Environment Environment-related variables are based on the external environment
(e.g. heating degree days, cooling degree days, relative humidity).
The variables may be directly measured or derived from measurements (e.g. production is directly
measured whereas heating degree days is derived from measurements of outside environment
temperature and base temperature).

ISO 50006:2023(E)
Analysis of data collected by the organization can indicate relevant variables. A methodology to
determine which variables are relevant is described in Annex D.
If the determination of relevant variables within a selected boundary is difficult, the boundary can be
adjusted (e.g. subdivided).
5.6 Collecting data
5.6.1 Data collection
The organization should specify and collect the data related to energy consumption and relevant
variables for each EnPI. It should plan the access to the collected data, the timing of collection, the
process of collection and storage, and any pre-analysis cleaning or manipulation of the data.
It is possible that an organization will find that some of the EnPIs which were previously identified
are not measurable due to data limitations or other barriers. In such cases, the organization should
assess and consequently revise the EnPIs or introduce additional meters, measurement, or modelling
methods.
If the expenditure towards installation of new meters, sub-meters and/or sensors to collect data on the
required variables is justified by the improvement in its energy performance, the organization should
specify such metering in its data collection plans.
In cases where more detailed energy consumption data are not available, energy bills can be used.
Consideration should be given to variation in the billing period between bills.
Table 4 describes examples of challenges in gathering data.
Table 4 — Energy data collection challenges

Scenarios Description and examples
Lack of detailed measured data When an organization does not have detailed measured data from energy
from energy suppliers suppliers, they may consider additional options for measurements provided
by themselves or through their energy supplier.
Lack of data on relevant variables When an organization does not have data for certain facilities, equipment,
systems or energy using processes, they may add measuring instruments
to acquire these data, or use external sources such as official weather data.
A proxy variable can be used for relevant variables for which data are not
directly available (e.g. electricity consumption representing elevator usage
as a proxy for building occupancy).
5.6.2 Data quality
The quality, precision and accuracy of the data collected to calculate EnPIs needs to be considered if
the calculated results are to be meaningful. Prior to calculating EnPIs and their corresponding EnBs,
the organization should review the set of measured energy consumption and relevant variables to
determine the data quality.
Ensuring that data used are of appropriate quality and completeness can help increase the robustness
of the determined EnPI value and ensure that they meet the needs of the organization. Factors to
consider in determining the appropriate quality of data may include the following:
— the method of collection, i.e. manual or automatic;
— the source of data, e.g. third-party weather station data;
— the frequency of data collection, i.e. covering all shifts, hourly, daily, monthly, working hours and
seasons;

ISO 50006:2023(E)
— the accuracy of meters and measuring equipment;

— precision (measurement uncertainty regarding bias, linearity, resolution, etc.);
— repeatability of data from the data source;
— validation of the data.
5.6.3 Measurement
Measurements can be taken continuously (e.g. using data from a supervisory control and data
acquisition system or a data acquisition and handling system), on a temporary basis (e.g. using data
loggers) or on a spot basis (e.g. using mobile/portable meters). If continuous measurement is not
possible, the organization should ensure that spot or temporary measurements are made during
periods that are representative of typical operating conditions (see 5.6.2).
Energy consumption may be measured by using permanent or temporary, meters or sub-meters, or
may be estimated by other means such as engineering calculations or modelling. Wherever possible,
permanent meters should be installed for measurement. Temporary meters may be used during energy
audit or where continuous measurements are not required. The organization should be aware of the
accuracy and repeatability of the measuring equipment and should consider the relative importance of
the decisions being made as a result of the data collected from these measurement instruments.
In many cases, the quantity of energy consumed can only be measured indirectly. This can require
measuring a flow, volume or mass of fuel supplied, and can vary with factors such as composition,
outdoor temperature, pressure and other factors. Multipliers or factors are commonly applied to the
actual measured flow of gas or liquid fuel to calculate the quantity of energy contained in the fuel.
These should be based on verifiable sources.
5.6.4 Data collection frequency
The data collection period and frequency should be sufficient to capture a range of operating
conditions and provide an adequate number of data points for analysis. The organization should select
an appropriate data collection frequency (e.g. hourly, daily, weekly) for the energy consumption and
relevant variables included in each EnPI and the corresponding EnB.
NOTE Data collection frequency is typically based on available data (e.g. monthly energy bills).
The data collection frequency may be much higher than the frequency of reporting in order to measure
and understand the impact of relevant variables on energy performance. For example, hourly, daily or
weekly data collection can be needed at the operational level to address significant deviations. Such
energy consumption and relevant variables should be aggregated for periodic review (e.g. monthly
reviews at the organizational level).
For statistical analysis, it is necessary that energy consumption and associated relevant variable data
have the same time intervals.
Even if the data collection period is the same (e.g. monthly), the data periods for energy and the relevant
variables can be different. In such cases, the data periods should be adjusted so that the data period for
energy and relevant variable data are aligned.
EXAMPLE Energy consumption is metered on the 20th day of each month and provided as an energy bill.
The relevant variable (production) is measured at the end of each month. The organization decides to unify the
timing of metering to the 20th day of every month and to estimate the data of production.
5.6.5 Identifying and analysing outliers
Faulty metering, faulty data capture or unusual operating conditions can produce significant outliers.
Before excluding an outlier, investigations should be carried out to determine if there is a legitimate

ISO 50006:2023(E)
reason for the outlier. If some outliers are excluded, care should be taken to ensure that this does not
introduce bias into the EnPI value or its corresponding EnB.
EXAMPLE An annual plant shutdown can result in a significant variation in energy consumption.
Outliers may be identified by appropriate methods (e.g. scatter diagram, trend line). Data points more
than a pre-determined number of standard deviations from the expected value of the trend line or
function may be outliers.
6 Determining energy performance indicators
6.1 General
While selecting appropriate EnPIs, the effects of relevant variables and the needs of users of the
information are key factors to be considered.
If appropriate, organizations should determine EnPIs including at least one EnPI for each SEU.
There are many other types of indicators that are used to monitor other parts of the EnMS as defined
by the organization (e.g. control of SEUs, increase employee awareness of energy, benchmarking
equipment or processes). Care should be taken in using these indicators as EnPIs as they do not always
appropriately monitor energy performance or appropriately represent measures of energy performance
improvement.
While choosing EnPIs, the organization should consider its existing measurement and monitoring
capabilities, related to energy consumption and relevant variables.
Annex C provides additional information on the selection of EnPIs.
When the organization’s objectives include reduction of greenhouse gas emissions, it should consider
using additional indicators with CO2 emission factors. See Annex G for additional information.
EnPIs can be used for a variety of purposes such as:
— understanding the energy performance of facilities, equipment, systems or energy-using processes;
— communicating information and engaging the organization in issues related to energy performance;
— tracking progress towards energy targets;
— managing and controlling SEUs;
— monitoring and measurement of energy performance;
— evaluating and demonstrating continual energy performance improvement.
EnPI values may be available from measurements or calculations.
6.2 Expressing energy performance indicators
6.2.1 Statistical model
6.2.1.1 General
The organization should normalize (see Clause 8) its energy consumption or energy efficiency using an
appropriate energy model. An energy model can be used to calculate the expected energy consumption
or the expected energy efficiency.

ISO 50006:2023(E)
6.2.1.2 One relevant variable
6.2.1.2.1 General
In cases where there is only one relevant variable, a simple linear regression or a nonlinear regression
energy model for energy consumption or energy efficiency can be used.
A simple linear regression energy model for energy consumption can be expressed by Formula (1):
Y = mx + C (1)
where
Y is the energy consumption;
m is the energy consumption per unit of the relevant variable;
x is the value of the relevant variable;
C is the base load energy consumption, not related to the relevant variable.
Special cases of the linear regression energy model are described in 6.2.1.2.2 and 6.2.1.2.3.
6.2.1.2.2 Simple metric
In the specific case where m = 0, the energy model can be expressed by Formula (2):
Y = cE (2)
where
cE is the constant energy consumption.

A simple metric can be used as an EnPI where there are no relevant variables affecting energy
consumption. Whether a simple metric is appropriate or not can be established by observing a trend
of energy consumption over time. This means that the daily, weekly or monthly energy consumption
varies within an acceptable range as established by the organization. If Y is not constant, or within
an acceptable range established by the organization, then this indicates that there can be relevant
variables and normalization is required.
6.2.1.2.3 Ratio
In the specific case where c = 0, the energy model can be expressed by Formula (3):
Y = mx (3)
where
m is the energy consumption per unit of the relevant variable;
x is the value of the relevant variable.

ISO 50006:2023(E)
In this specific case where the base load is zero, ratio of energy consumption per unit of the relevant
variable (m) gives an appropriate energy model. This is usually known as specific energy consumption
(SEC).
A ratio can be used as an EnPI when there is one relevant variable affecting energy consumption and
there is no base load energy consumption.
6.2.1.3 Multiple relevant variables
In cases where there is more than one relevant variable, a multiple linear regression or a multivariable
regression energy model can be used. A multiple linear regression energy model for energy consumption
can be expressed by Formula (4):
Y = m1x1 + m2x2 + … + mn xn + c (4)
where
m1, m2, … mn are the energy consumption per unit of relevant variables;
x 1, x 2 , … x n are the relevant variables;
c is the constant value.

In practice, an energy model with multiple relevant variables is most common.
6.2.2 Aggregated models
An aggregated energy model can be calculated by combining different energy models.

Condition-based models are also aggregated models. In this case, different energy models are applied
on either side of a threshold value (N) of a relevant variable. A condition-based model can be expressed
by Formulae (5) and (6):
Y = f (x1, x2, … xn) –– if xi > N (5)
Y = g(x1, x2, … xn) –– if xi <= N (6)
where
f is the energy model considering the relevant variables, when the relevant variable
xi is above the threshold value (N);
g is the energy model considering the relevant variables, when the relevant variable
xi is below or at the threshold value (N);
x 1, x 2 , … x n are the relevant variables.

EXAMPLE The state of a plant includes not only “in operation” but also “part-load” and “standby”. A
condition-based model can be used if it cannot be treated as an outlier.
6.2.3 Engineering model
Engineering models are often described by physical or empirical laws (e.g. equation relating fluid
resistance and flow velocity to pump power consumption).

ISO 50006:2023(E)
Engineering models can be used for calibrated simulation to assess the energy performance of simple
and complex facilities, equipment, systems or energy-using processes.
NOTE Calibrated simulation is a simulation that adjusts parameters of the energy model so that the actual
energy consumption and the simulation result (expected energy consumption) are equivalent.
The organization can use existing engineering models (e.g. for buildings). However, creating an
engineering model can require particular expertise.
7 Establishing energy baselines
7.1 Concept of EnB

The EnB is used for the comparison of energy performance. Comparison is made for monitoring energy
performance and demonstrating energy performance improvement.
The following steps should be taken to establish an EnB:
— determine the specific purpose for which the EnB will be used;
— determine a suitable data period;
— collect the data;
— analyse the data to develop a method of normalization (if applicable);
— determine and evaluate the EnB.
7.2 Determining baseline period

When establishing the EnBs the organization should determine a suitable period considering its energy
goals and targets along with the nature of its operations. The baseline period should be long enough to
ensure that the variability in operating patterns is accounted for by the EnPI and EnB (seasonality in
production, weather patterns, etc.).
The frequency with which an organization acquires data can be a consideration in determining a
suitable baseline period.
Table 5 presents typical baseline periods to be considered.
If an organization wishes to monitor EnPIs every day, even where a baseline period is one year, daily
data are required for the EnB. In this case, the EnB is set for one year of daily data.
Table 5 — Typical baseline periods to be considered

Typical periods Description and examples
One year The most common baseline period is one year. It can capture a full range of
weather conditions or business operating cycles.
Less than one year A shorter period may be used where energy consumption is seasonal (e.g. a
vegetable canning factory, ski resort).
Short EnB durations can also be necessary for situations in which there is an
insufficient quantity of reliable, appropriate or available historical data.
More than one year Seasonality and business trends can combine to make a multi-year EnB optimal
(e.g. a winery wants to track energy performance only during the crushing and
fermentation period of each year; however, over multiple years).

ISO 50006:2023(E)
8 Normalization
8.1 Concept of normalization

During the operation of any facility, equipment, system or energy-using process the relevant variables
routinely change. As a result, the energy performance, energy consumption and energy efficiency
appear to fluctuate. Normalization is used to calculate the EnB to account for changes in the relevant
variables.
The organization should establish an EnB for each EnPI using values of energy consumption and
relevant variables during the baseline period. The EnB should be normalized if the organization has
data indicating that certain variables significantly affect energy performance.
The organization should measure its actual energy consumption during the reporting period and
compare it versus the expected energy consumption. An example of how to monitor and measure
energy performance is shown in Figure 1.
Energy performance improvement is evaluated by the organization by comparing the EnPI value
against the corresponding EnB.
A stepwise procedure is presented in Annex D as a guidance to carry out normalization.
A numerical example of the application of this procedure is given in Annexes E and F.
8.2 Uncertainty of model

When developing EnPIs and EnBs organizations should consider the uncertainty of measurements and
of the energy model. Additional resources should be considered for higher accuracy.
Organizations should select an energy model that will result in EnPI values with the appropriate
uncertainty for each comparison purpose. In the operation of facilities, equipment, systems or energy-
using processes, EnPI value is compared with the operation criteria (e.g. upper and lower limits) and
the energy target.
9 Maintaining energy performance indicators and energy baselines
9.1 General
When changes to facilities, equipment, systems or energy-using processes occur, energy efficiency,
energy consumption and associated relevant variables can be impacted. The organization should ensure
that the current EnPIs, the corresponding boundaries and EnBs are still appropriate and effective in
measuring energy performance. If they are no longer appropriate, the organization should review or
develop new EnPIs and corresponding EnBs.
There are several tests for determining whether the EnPI and EnB are still appropriate or valid
including:
a) the relevant variables used to determine the expected energy consumption from the energy model
should fall within one of the following:
1) within the range of relevant variables used in the model;
2) not exceeding a pre-determined number of standard deviations from the mean of the relevant
variable data;
b) identifying major changes in static factors which can invalidate the determination of energy
performance under equivalent conditions.

ISO 50006:2023(E)
The baseline period can be revised (e.g. shifted to a different time period), or energy performance can
be calculated without changing the baseline period.
Table 6 illustrates circumstances that can require organizations to revise EnPIs and corresponding
EnBs.
Table 6 — Examples of circumstances that may require revision of EnBs and EnPIs
Common changes Description and examples
Static factors If a static factor (see 9.2) changes, the related EnB may be revised. In some cases,
it can be necessary to develop a new EnPI and EnB. Statistical tests may establish
whether an organization should develop a new EnB or EnPI. For example, these
can include major production processes added or stopped and or changes to the
number of production shifts or substantial modifications to the building structure
and building equipment.
Relevant variables When the relevant variable significantly changes and operates significantly outside
of the range upon which the baseline was established, a new EnB and associated
EnPI should be established.
Energy type When an organization changes the types of energy it is using, it may need to
modify what is tracked (EnPIs) and how those factors are weighted in its EnB.
Data availability Improvements to the facility’s metering and data collection system can result in
better quality data becoming available or new relevant variables coming to light. It
can be necessary to revise EnPIs and EnBs.
Data frequency If data are collected at more regular intervals or at a higher frequency, this can
enable more effective management with a new EnPI and EnB.
Baseline period Organizations may wish to update the baseline period to lock in accomplishments
to date and focus on improving against the current energy performance instead of
a past period. A strategic decision of such a nature can necessitate the updating of
the baseline period to a more recent period (such as the last year) to serve as the
new reference point.
According to a predeter- The organization can find it useful to identify conditions in advance that can
mined method require a revision of EnPIs and corresponding EnBs. For example, many
organizations update their EnBs annually.
9.2 Static factor changes

Static factors need to be considered if they change, and if that change affects the relationship between
energy consumption and relevant variables.
Table 7 describes examples when changes in static factors require revising the EnPIs or EnBs.
Table 7 — Static factor changes that require revision of EnPIs or EnBs

Scenarios Description and examples
Change in product type A plant produces a consistent set of products. The introduction of a new
product that changes the set of products should be considered as a static
factor.
Change in shifts per day A plant has a fixed number of production shifts per day. If the number of
shifts increases or decreases, then this should require maintenance.
Change in building occupancy A building has a relatively stable number of occupants. If the number of
occupants significantly increases or decreases due to new leases, then this
should require maintenance.
Change in floor area A building has a fixed floor area. If the organization significantly expands
the building, or sells or rents out part of it, then this should require
maintenance.

ISO 50006:2023(E)
10 Monitoring and reporting of energy performance and demonstrating energy

performance improvement
10.1 General
Energy performance can be monitored using EnBs and EnPIs for the following purposes:
— to ensure that operational control of processes is effective;
— to demonstrate energy performance improvement;
— to monitor progress towards achievement of energy targets.
Energy performance should be presented to users based on their needs and roles.
10.2 Monitoring and reporting

Energy performance can be monitored by comparing the actual energy consumption (EnPI value)
against the expected energy consumption (EnB) on an hourly, daily, weekly or monthly basis. Monthly
comparison can be adequate in the initial stages of developing these concepts.
Several tools and techniques are used to monitor and report energy performance, based on the energy
model, including:
— monitoring the difference between the actual and the expected energy consumption using a trend
chart of EnPIs (and relevant variables);
— monitoring the cumulative sum (CUSUM) of the difference between the actual and the expected
energy consumption using a trend diagram;
— comparing the difference between the actual and the expected energy consumption with an energy
target (energy target can be calculated as a targeted percentage reduction from the expected energy
consumption);
— monitoring the energy consumption and the production by using a scatter diagram.
In each case, the information can be represented graphically or in tables.
The process of monitoring energy performance using EnPIs is routine. If an unexpected result is
observed, the cause should be investigated by:
— investigating operational control of the equipment/systems to establish the cause of the deviation;
— if the deviation is causing excessive energy consumption, taking corrective action to prevent the
deviation from occurring again;
— if the deviation is a result on unexpectedly low consumption, establishing the cause and trying to
embed this action into normal operations;
— ensuring that the data are accurate;
— considering if a static factor has changed.
The results of EnPI monitoring can also be reported in summary or in detail.
10.3 Demonstrating energy performance improvement

Organizations can need to demonstrate energy performance improvement.
Improvement in energy performance should be evaluated by comparing EnPI values against the
corresponding EnB(s).

ISO 50006:2023(E)
This can be done at facility level, SEU level, process level, etc.
Table 8 illustrates some common approaches to monitor and report on energy performance
improvement.
Table 8 — Monitoring, reporting and demonstrating energy performance improvement

Method Description and examples Formula
Difference Difference between the reporting period EnPI value (R) and the R–B
EnB (B).
The cumulative sum of R – B is a useful technique for monitoring
and for demonstrating improvement.
Per cent change Difference between the reporting period EnPI value (R) and the [(R – B)/B] × 100
EnB (B), expressed as a percentage of the EnB.
Ratio Ratio of the reporting period EnPI value (R) and the EnB (B). (R/B)
Index Ratio of the reporting period EnPI value (R) and the EnB (B), (R/B) × 100
expressed as a percentage.
Key
B is the EnB.
R is the reporting period EnPI value.

ISO 50006:2023(E)
Annex A
(informative)
EnPI and EnB planning process

ISO 50006:2023(E)
Figure A.1 — EnPI and EnB planning process

ISO 50006:2023(E)
Annex B
(informative)
Examples of EnPI boundaries
During the process of measuring, monitoring, analysing and evaluating energy performance, and
demonstrating energy performance improvement, it is important to find the most inefficient part of
the production system. An EnPI boundary can be used effectively to focus on this part by narrowing
the boundary. As a first step, the EnPI boundary is the entire organization. In such cases, the target
boundary should be divided into several EnPI boundaries. As next steps, the EnPI boundaries should be
narrowed down to the SEU level for identifying areas in which energy performance can be improved.
Figure B.1 shows the EnPI boundary division process.
Figure B.1 — EnPI boundaries division process
When dividing the EnPI boundaries, organizations should consider that:

a) the number of divisions should be minimized;
b) it is recommended that the boundary is first divided into two parts such as SEU and other;
c) facilities that work in the same way should be categorized together;
d) the facility can be divided on the basis of process (e.g. process for product X, process for product Y
and utilities);
e) the EnBs can be established for each operational status of the EnPI boundary.
The operational status refers to production ramp-up, normal operation, production hold, production
stop, etc. As a minimum, it is recommended that organizations establish at least two EnB operational
status conditions: under production conditions, and under non-production conditions.

ISO 50006:2023(E)
Annex C
(informative)
Examples of energy performance indicators
Table C.1 provides descriptions about the expression of EnPIs, as well as examples of their applications.
It outlines the various EnPI calculation methods as well as when an organization should choose each
method. All methods should be regularly maintained to ensure valid results.

Table C.1 — Expression of EnPIs — Applications and examples
Categories Typical uses Examples of EnPIs and applications Observations
No relevant — Measuring reduction in absolute EnPIs: — Does not take into account the effects of
variable consumption of energy. relevant variables, giving misleading results
— energy consumption (kWh, GJ);
(simple metric, for most applications.
see 6.2.1.2.2) — Meeting regulatory requirements based on
— electricity consumption for lighting (kWh);
absolute savings. — Can be obtained from a utility meter/bill.
— fuel consumption for a boiler (GJ).
— Understanding of trends in energy
© ISO 2023 – All rights reserved

consumption.
— Monitoring and determining energy

performance improvement in cases where
there are no relevant variables which affect
consumption.
— Energy value as a basic EnPI to understand

real energy use and calculate other EnPIs.
One relevant — Expressing the energy efficiency of a piece EnPIs and applications: — Can be appropriate where there is one
variable of equipment or a system, particularly under relevant variable and no base load and is
— kWh/t of production;
(ratio, see 6.2.1.2.3) standard or equivalent conditions. misleading in other cases.

— GJ/quantity of product;
— Monitoring the energy efficiency of systems — Metrics of energy performance improvement
that have only one relevant variable and no — l/100 km. SEC type EnPI value calculations should
base load. be avoided unless otherwise required for
legal requirements or other requirements.
— Meeting regulatory requirements based on Where SECs are required, it is good practice
energy efficiency. to include the underlying assumptions when
reporting these values.
— Statistical tests can be required to confirm

that there is no base load and that other
relevant variables do not exist.
23
ISO 50006:2023(E)
Table C.1 (continued)
24
Categories Typical uses Examples of EnPIs and applications Observations
Statistical model — System with one or more relevant EnPIs: — Linear regression models with one or more
variables and significant base load energy relevant variables are commonly used and
— modelled energy-based unit.
consumption. held as a best practice by many practitioners
Applications: when monitoring energy performance
— At the system and organizational level. and determining energy performance
ISO 50006:2023(E)
— model of energy performance of a production

facility with one or more production types; improvement for a facility.
— Determining energy performance
improvement within the relevant variable — If the boundary is complex, the boundary
— model of energy performance of a hotel
ranges during the baseline period. should be divided according to the
with variable occupancy rate and outside
temperature; organization, activity type, etc, before
— Evaluation of potential energy performance applying the statistical model. This division
improvement opportunities, e.g. by reduces the number of relevant variables and
— model of the relationship between the energy
evaluating different modes of operation of thus makes it easier to check and maintain
consumption of a pump/fan and the flow rate.
equipment or processes. the appropriateness of the model.
— Verification of energy savings from
an implemented energy performance
improvement opportunity.
Engineering model — To supplement energy flow measurements, Applications: — Sometimes referred to as simulations,

and in some cases used to effectively infer engineering models can capture the energy
— Building modelling, including calibrated
or calculate energy flows from relevant performance of simple or complex systems
simulation, is another example of calculating
variables. and facilities.
an EnPI value from engineering models.
— At a design phase to conceptually optimize — Engineering models can encapsulate a large
— Model of a petroleum refinery.
energy performance or estimate energy number of relevant variables and provide
performance improvement for a specific — Engineering models can be used even if insights regarding process and/or system
energy performance improvement action relevant variables are not independent of transient operation when properly calibrated
(EPIA) before investments are made. each other (e.g. temperature and pressure). to measured performance.
— Model of an electric arc furnace: in addition to — If well calibrated, engineering models can
the measured electrical and gas flows, carbon provide a normalized basis by which to
powder is added to the batch to adjust the determine energy performance improvement.
chemistry of the steel. This carbon also adds
— Engineering-based modelling can also be
combustion energy to the batch, and although
used to directly calculate energy losses or
the number of bags is typically tracked, the
gains, e.g. additional waste heat recovery.
process model is often used to calculate the
energy contribution.
— Engineering modelling accounts for changes
in boundaries and static factors over time.
— Details of engineering modelling are outside

the scope of this document.
© ISO 2023 – All rights reserved

ISO 50006:2023(E)
Annex D
(informative)
Example of normalization stepwise process
D.1 Preparation for normalization

The organization should use spreadsheets or software with data analysis capabilities for statistical
calculations and the normalization process. Specialized statistical analysis packages can also be used
when available. Depending on the physical processes, the organization may choose a linear or nonlinear
model.
The following items apply to the evaluation of validity of the model:
— The adjusted coefficient of determination (R 2) can be used to choose between the different models.
Typically, it can be considered that a higher adjusted R 2 value represents a better model.
NOTE Standard error can also be used to determine the most suitable model. A lower standard error
represents a better model.
— An F-test is used to evaluate the overall statistical significance of a regression model. The regression
model is considered statistically significant when the F-test value is less than 0,1, indicating that at
least one of the potentially relevant variables used in the model has a “significant” effect on energy
consumption.
— The P-value criterion is typically used to determine if a variable significantly affects energy
consumption. A P-value less than, for example, 0,1 or 0,05 is often used as the significance criterion.
These figures indicate that there is a 90 % or 95 % chance that the variable has a systematic impact
and is thus significant.
D.2 Step 1 — Collection of data for the baseline period

The potentially relevant variables are selected based on brainstorming or by considering variables
related to inputs, outputs, process and environment (see 5.5).
Considering the EnPI boundary, the data are collected for energy consumption and the selected relevant
variables and tabulated for further analysis.
D.3 Step 2 — Correlation test

The purpose of step 2, which is optional, is to get a preliminary analysis of the relationships between
the energy data and the variables.
A correlation test on all energy types and all potentially relevant variables should be carried out in
order to obtain values for the coefficient of determination R 2 for each single relation.
NOTE The correlation test is used to evaluate the association between two or more variables.
D.4 Step 3 — Regression analysis

Regression analysis is carried out to quantify the effect of each potentially relevant variable on the
energy consumption. The results of the regression analysis are examined to establish which variables
are relevant.

ISO 50006:2023(E)
If more than one variable does not meet the P-value criterion, the one with the highest P-value is
eliminated and the regression analysis is repeated with the remaining variables. There needs to be a
technical understanding of why a variable is being eliminated. It can be due to inaccurate data or poor
operational control. This process continues until all variables have a P-value of less than 0,1. This is the
resultant energy model and the coefficients of each relevant variable, and the intercept are used as the
baseline model.
After checking the significance of the coefficients, collinearity, which can lead to distorted results of the
analysis, can be checked using various tests and indicators such as the variance inflation factor (VIF).

ISO 50006:2023(E)
Annex E
(informative)
Example of normalization
E.1 General
The following example is for a heating system of a building. It outlines the basic steps taken to develop
an energy model that can be used to determine and monitor energy performance and demonstrate
energy performance improvement.
NOTE Gas consumption is normally measured in m3 but also can be expressed in kWh. The conversion is
made using the formula: gas consumption (kWh) = gas consumption (m3) × calorific value × volume correction
factor / unit conversion factor.
E.2 Boundary and collection of energy data

An EnPI boundary was established for the whole building including all energy uses within. Monthly gas
consumption data for this EnPI boundary was collected from available sources for the baseline period.
The baseline period was established to be 1 January 2020 to 31 December 2020 as this time period fully
captures all operational conditions during different seasons. The data was entered into a spreadsheet
(see Table E.1).
Table E.1 — Monthly as consumption of the baseline period

Year Month Measured gas
consumption
kWh
2020 January 1 414
(baseline period) February 916
March 1 007
April 921
May 475
June 260
July 218
August 252
September 635
October 607
November 1 038
December 1 267
E.3 Preliminary analysis of the data

A graph of monthly energy consumption data versus corresponding dates of the baseline period was
generated (see Figure E.1), which indicates that the amount of natural gas consumed varies seasonally
over the year.

ISO 50006:2023(E)
Key
X month (January to December)
Y gas consumption, in kWh
measured gas consumption, in kWh
Figure E.1 — Gas consumption versus corresponding dates of the baseline period 2020
The consumption in the summer, where the heating unit is turned off, shows that there is a demand
for heating energy (here for hot water, for washing hands, etc.) that is not dependent on the season
(temperature) but can be seen as a base load throughout the year. These observations indicate
that a simple metric and ratio are not suitable to use when determining energy performance and
demonstrating energy performance improvement for the building. Accordingly, normalization is
required.
Given that the natural gas consumed within the EnPI boundary is used by a heating system, heating
degree days (HDD) data in kelvin days (Kd) were collected as a potentially relevant variable (see
Table E.2). If the HDD are statistically significant, then it is chosen as a relevant variable.
Table E.2 — Consumption data and heating degree days

Year Month Measured gas Heating degree
consumption days
kWh kelvin days (Kd)
2020 January 1 414 598
(baseline period) February 916 397
March 1 007 325
April 921 345
May 475 95
June 260 0
July 218 0
August 252 4
September 635 168
October 607 210
November 1 038 393
December 1 267 476

ISO 50006:2023(E)
The HDD data was entered into the spreadsheet and a scatter diagram of HDD data against natural gas
consumption data was developed. Visual analysis confirms a linear relationship between natural gas
consumption and HDD exists (see Figure E.2).
Key
X heating degree days, in Kd
Y gas consumption, in kWh
Figure E.2 — Scatter diagram of monthly gas consumption versus heating degree days in 2020
E.4 Regression analysis

The method of linear regression was selected to create an energy model. To create the linear regression
energy model, a trend line (line of best fit) was created with the energy consumption and HDD data (see
Figure E.2). The resulting energy model is expressed as discussed in Formula (1) (see 6.2.1.2).
The gas consumption is function of HDD, and the baseload is represented by the constant which is
typically expressed as gas consumption (kWh/month) = 1,980 5 (kWh/HDD per month × HDD per
month) + 253,88 (kWh/month).
The R 2 of 97 % indicates a reasonable correlation.
NOTE Models with lower R 2 values can still be used to generate meaningful results. A general threshold for
2
R cannot be given as it is highly dependent on the variance in the analysed data.
E.5 Monitoring and reporting of energy performance and demonstrating energy

performance improvement
This energy model enables calculation of expected energy consumption during a reporting period to
monitor energy performance and determine energy performance improvement. For this, HDD data
from January 2021 was obtained and inserted into the spreadsheet-based energy model to calculate the
expected consumption for January 2021. The expected energy consumption (i.e. EnB) for January 2021
(1 1466 kWh) was then compared with the actual energy consumption for January 2021 (1 343 kWh)
and the difference of −123 kWh indicates an energy performance improvement (see Table E.3).
Each individual month is monitored in the same way as with January 2021, by inserting the monthly
HDD data into the energy model to calculate an expected energy consumption (i.e. EnB). The expected
energy consumption is compared to the actual energy consumption and a difference is calculated. The
difference can be positive or negative depending on the actual energy performance in the month.

ISO 50006:2023(E)
A cumulative sum total of the difference between each month’s actual and expected energy consumption
is developed to create a cumulative sum of differences (CUSUM). A downward trend in the CUSUM
indicates sustained energy performance improvement (see Table E.3 and Figure E.3).
Table E.3 — Data including cumulative sum of differences (CUSUM)

Year Month Measured gas Heating EnB Energy CUSUM
consumption degree (expected performance change energy
days consumption (measured gas performance
calculated consumption – improvement
using the calculated gas
model) consumption)
kWh Kd kWh kWh kWh
2021 January 1 343 612 1 466 −123 −123
(reporting February 968 365 977 −9 −131
period)
March 957 345 937 19 −112
April 750 298 844 −94 −206
May 451 75 402 49 −157
June 247 0 254 −7 −164
Key
X month (December to June)
Y CUSUM energy performance improvement, in kWh
Figure E.3 — Demonstration of energy performance improvement using CUSUM
Over the six months of 2021, the reporting period, the CUSUM indicates an energy performance
improvement of 164 kWh.
Furthermore, a trend of the actual energy consumption (including the baseline period) with the
expected energy consumption based on the energy model highlights the model fit and can be used to
identify irregularities in the reporting period.

ISO 50006:2023(E)
Annex F
(informative)
Example of normalization — Multivariate–analysis
F.1 Process flow and background information

The following information is considered in the example of normalization:
a) the company is in the food sector with large cooling requirements;
b) there are three primary products designated as product 1, product 2 and product 3;
c) part of the quantity produced of each of the products 1 and 2 are further processed to produce as
product 3, i.e. some of the output of products 1 and 2 are raw materials for product 3.
F.2 Step 1 — Collection of data for the baseline period

The EnPI boundary is concerned with electricity consumption in the whole facility taking account of
four potentially relevant variables: the quantity of each of the three products (production in metric
tons) and the outside air temperature represented by cooling degree days with a base temperature of
5 °C (CDD5, in Kd).
Table F.1 shows the data for electricity consumption and potentially relevant variables. These data are
from the historical baseline period, typically the previous 12 months.
Table F.1 — Electricity consumption data

Month Outside Product 1 Product 2 Product 3 Actual
temperature electricity
(CDD5) consumption
Kd t t t kWh
01/11 26 329,17 2 963,26 1 388,18 3 062 456
02/11 49 361,77 3 052,9 1 389,96 2 900 987
03/11 83 425,11 3 248,11 1 514,3 3 121 863
04/11 209 339,17 2 850,36 1 385,05 2 933 486
05/11 290 419,35 3 370,76 1 599,93 3 385 952
06/11 346 471,32 3 062,72 1 561,18 3 385 400
07/11 396 429,44 3 132,3 1 587,08 3 342 738
08/11 486 481,97 3 058,92 1 501,05 3 641 060
09/11 402 420,67 2 892,72 1 528,71 3 492 160
10/11 229 304,43 2 925,89 1 429,84 3 068 278
11/11 122 413,14 3 134,95 1 523,18 3 065 000
12/11 23 360,37 2 328,19 1 277,08 2 861 263
F.3 Step 2 — Correlation test

Table F.2 shows the coefficients of determination (R 2) between the electricity consumption and the
potentially relevant variables. In this case, it shows that there is a correlation between all of the
potentially relevant variables and the electricity consumption. It is notable that the highest impact on

ISO 50006:2023(E)
the electricity consumption of this production process is CDD5 with a coefficient of determination of
0,79.
There is also a correlation between product 3 and products 1 and 2 of 0,51 and 0,65, respectively. This
is possibly because product 3 is a further processed version of products 1 and 2.
In cases where variables are strongly correlated with each other, there is a possibility of collinearity
which can distort the results of regression analysis although a variable can be relevant. If this occurs, it
will become apparent during the regression analysis steps.
NOTE If other energy data are available, such as gas consumption for the same period, they can also be
included in this test to show the correlation of the variables with gas consumption.
Table F.2 — Coefficients of determination

R2 CDD5 Product 1 Product 2 Product 3 Electricity
consumption
CDD5 1
Product 1 0,41 1
Product 2 0,09 0,19 1
Product 3 0,44 0,51 0,65 1
Consumption 0,79 0,61 0,20 0,57 1
F.4 Step 3 — Regression analysis

Regression analysis was carried out to establish the energy model to be used. The results of the
regression analysis indicate an adjusted R 2 of 0,813 and coefficients and P-values for each potentially
relevant variable.
Table F.3 shows the results of regression analysis using electricity consumption as the y-value and of
the four potentially relevant variables as the x-values. If a P-value is greater than 0,1, the variable will
be eliminated.
Table F.3 — Results of regression analysis

Coefficients P-value
Intercept 2 057 245,67 0,020 404 26
CDD5 1 025,488 25 0,016 560 71
Product 1 1 368,220 95 0,173 102 76
Product 2 113,976 063 0,679 101 14
Product 3 13,129 039 8 0,989 536 54
Product 3 has the highest P-value which is greater than 0,10, and this indicates that it is not a relevant
variable and should be eliminated from the regression analysis and a further regression analysis
carried out without product 3.
If a potentially relevant variable is to be eliminated from the regression analysis, there should be a
technical understanding of the reason for this elimination. In this case, the technical reason is indicated
by the correlation of product 3 to both products 1 and 2. The cause of this correlation is that product 3
is a downstream process whose raw material includes some of both product 1 and product 2. Thus,
product 3 is collinear with both products 1 and 2 which can lead to distortion of regression results. The
potentially relevant variable product 3 is eliminated and the share of electricity consumption related to
product 3 is included in products 1 and 2.
(Multi) collinearity can be checked by using various tests and indicators such as the variance inflation
factor (VIF) and should be based on technical knowledge.

ISO 50006:2023(E)
The results of completing the regression analysis a second time without product 3 is shown in Table F.4.

Regression statistics
Adjusted R 2 0,836 415 11
Intercept 206 471 8,81 0,000 721 99
CDD5 1 028,119 02 0,003 154 67
Product 1 1 373,749 14 0,105 592 49
Product 2 117,008 3 0,402 144 43
Based on this second test, product 2 has P-value greater than 0,1 and needs to be eliminated from the
regression analysis.
The cause of the high P-value has technical or operational considerations. After investigation, it was
found that operational control in the product 2 department was not adequate. Electricity was being
consumed even when no production was occurring. This is a very common cause of high P-value of low
R 2 in single variate analysis. The cause of this low P-value needs to be corrected.
The results of completing the regression analysis a third time without products 2 and 3 is shown in
Table F.5.

Regression statistics
Adjusted R 2 0,840 366 12
Intercept 2 326 964,59 6,242 8E-06
CDD5 1 034,570 76 0,002 168 14
Product 1 1 594,663 29 0,049 204 61
In this case, the P-values of both variables are below 0,1, indicating that there is more than a 90 %
chance that both variables are relevant to electricity consumption. R2 is the highest of the three tests.
This gives a high level of confidence in the baseline formula for the expected energy consumption.
The resulting energy model is expressed as discussed in Formula (1) (see 6.2.1.2).
The expected electricity consumption is a function of two relevant variables, namely the cooling degree
days and product 1.
Based on this, the baseline model in this case is the expected electricity consumption (kWh/month) =
1 595 (kWh/tonne of product 1) + 2 326 965 (kWh/month) + 1 035 (kWh/CDD5).
This formula is then used in the reporting period to compare expected electricity consumption with
actual electricity consumption each month.
The trends in Figure F.1 show a comparison of the actual and the expected electricity consumption
during the baseline period. This trend can give confidence about the accuracy of the baseline formula.

ISO 50006:2023(E)
Key
X month (January to December)
Y electricity consumption, in kWh
actual electricity consumption
expected electricity consumption
Figure F.1 — Actual versus expected electricity consumption in the baseline period 2020
NOTE 1 In the case illustrated above, operational control was improved in the product 2 department during
2021 and the baseline regression analysis was repeated in early 2022. The product 2 P-value had decreased, and
it became a relevant variable in the 2021 baseline model used as the baseline for monitoring performance each
month in 2022.
NOTE 2 The steps above can be used to develop a statistical model at the whole facility level as demonstrated
in this annex as well as at SEU, building or process levels. The regression analysis is the same.

ISO 50006:2023(E)
Annex G
(informative)
Reporting aggregated information
Using statistical or engineering models for calculating EnBs and corresponding energy targets in order
to compare those with the measured energy consumption has the advantage that all changes in energy
performance have the same units (e.g. kWh) and can therefore be summed up over different types of
processes and systems, resulting in a total change in energy performance over all SEUs.
In addition, changes in energy costs and CO2 emissions can be calculated and aggregated. An example is
given in Table G.1.
Regardless of the form of the mathematical function linking energy consumption to relevant variables,
the results need to be in energy consumption units such as kWh or GJ. These resultant energy
consumption figures can be added together to give overall results. For example, the energy performance
change of several SEUs in energy consumption terms can be added together to give the total change in
energy performance.
Table G.1 — Example of an aggregation of energy performance indicator values

Facility/ Energy Change in energy performance Change in costs Change in greenhouse
equipment/ type gas emissions
process/
Change in Primary Change in energy Energy Change CO2e Equivalent
system
energy per- energy performance unit in energy emission in CO2e
formance factors relate to primary costs by cost factors by
by type energy type type
MWh MWh $/MWh $ t/MWh t
Facility 1 Gas −730 1,1 −803 50 −36,500 0,18 −131,4
Electricity 10 2,5 25 140 1,400 0,61 6,1
Process 1 Electricity −468 2,5 −1 170 140 −65,520 0,61 −285,48
Non-SEUs Gas −12 1,1 −13 50 −600 0,18 −2,16
Electricity −21 2,5 −53 140 −2,940 0,61 −12,81
Whole site −1 221 −2 014 −104,160 −425,75
within
boundary
(aggregated)

ISO 50006:2023(E)
Bibliography
[1] ISO 50001:2018, Energy management systems — Requirements with guidance for use

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Energy management systems — Evaluating energy

3 Terms, definitions and abbreviated terms

3.1 Terms and definitions

© ISO 2023 – All rights reserved ﻿ 1

[SOURCE: ISO 50001:2018, 3.5.1]

[SOURCE: ISO 50001:2018, 3.5.2, modified — Note 1 to entry added.]

Note 1 to entry: The output of a process can be products, services, or energy.

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Note 2 to entry: The EnPI is defined by the organization (3.1.14).

Note 3 to entry: EnPI(s) can be calculated by using an energy model (3.1.8).

[SOURCE: ISO 50001:2018, 3.4.15]

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Note 2 to entry: SEUs can be related to facilities, systems, processes or equipment.

[SOURCE: ISO 50001:2018, 3.5.6]

[SOURCE: ISO 50001:2018, 3.4.8]

3.2 Abbreviated terms

CDD cooling degree day

CUSUM cumulative sum

EnB energy baseline

EnMS energy management system

EnPI energy performance indicator

HDD heating degree day

SEC specific energy consumption

SEU significant energy use

4 Overview of EnPIs, EnBs and energy performance

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5 Obtaining relevant energy performance information

5.1 Initial-energy-performance-related information

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5.2 Determining users of energy performance indicators

Table 1 describes some common EnPI users.

Table 1 — EnPI users

5.3 Defining the energy performance indicator boundaries

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Table 2 — The three EnPI boundary levels

5.4 Defining and quantifying energy flows

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Figure 2 — Energy, raw material and product flow diagram

5.5 Defining and quantifying variables related to energy performance

Table 3 — Considerations used to identify variables

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5.6 Collecting data

5.6.1 Data collection

Table 4 — Energy data collection challenges

5.6.2 Data quality

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— the accuracy of meters and measuring equipment;

5.6.4 Data collection frequency

5.6.5 Identifying and analysing outliers

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6 Determining energy performance indicators

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