Energy-related investments in the context of ISO 50001

What role do energy-related investments play in ISO 50001?

Energy-related investments are not treated as a separate topic in the internationally recognized energy management standard ISO 50001, but they are closely linked to its requirements. Continuous improvement of energy performance—a core requirement of the standard—is, in practice, often only achievable through investments in more efficient technologies and equipment.

However, the standard does not provide specific requirements for evaluating or prioritizing such investments. Instead, it focuses on structured processes and objectives, while the design of individual investment decisions remains the responsibility of the organization. ISO 50001 only includes a general statement in Annex A.10 “Improvement,” according to which the frequency, scope, and timing of measures are determined based on economic factors and other circumstances.

In practice, companies therefore assess the economic viability of their energy investments differently, depending on their specific energy efficiency requirements. In certain cases, however, organizations are required to apply a standardized approach.

This is particularly relevant when using public funding schemes or when exceeding legally defined energy consumption thresholds. In such cases, companies must demonstrate the economic evaluation of their energy-related investments using a dedicated standard: DIN EN 17463 (VALERI).

The acronym VALERI stands for "Valuation of Energy Related Investments".

When is a profitability calculation in accordance with DIN EN 17463 mandatory?

Companies must demonstrate the profitability of their energy-related investments by means of an audit in accordance with DIN EN 17463 if they

• have a final energy consumption of more than 7.5 gigawatt hours (GWh) per year, then they are obliged to do so under the "Energieeffizienzgesetz" (Energy Efficiency Act, EnEfG). However, the legislator is currently discussing an amendment and the associated increase in the threshold value to 23.6 GWh/a.

However, companies must also provide evidence of an energy efficiency calculation if they wish to submit applications within the scope of the so-called "provision of environmental offsets" for

• "Strompreiskompensation" (Electrcity price compensation, SPK)
• partial reimbursement of the CO₂ tax, "BECV Carbon Leakage Verordnung" (BEHG Carbon Leakage Ordinance)
• equalization scheme (BesAR EnFG) to reduce the KWKG and offshore levy in accordance with the "Energiefinanzierungsgesetz" (Energy Financing Act, EnFG)

What errors occur in the evaluation of energy-related investments?

In their foreword, the authors of the European standard with national status, DIN EN 17463:2021, emphasize the central role of energy-related investments (ERI) in achieving the European Union's energy and climate policy goals on time. They emphasize that a possible lack of such expenditure can be attributed to unreliable methods for calculating the financial benefits.

Some examples from the standard:

• Incorrect results due to non-consideration of relevant parameters and cash flows
• Unclear, incorrect or incomplete calculation models
• Use of costs instead of cash flows (payment flows)
• Disregard of the time value of money
• Careless use of the discount rate
• Inappropriate risk assessment
• No or incorrect sensitivity and scenario analyses
• No traceability
• No evaluation of results
• Failure to take price fluctuation rates into account

Missing or unsuitable assessment methods can therefore lead to necessary investments not being made. This is precisely where DIN EN 17463 comes in. Regardless of whether its application is mandatory or voluntary, it offers a structured and comprehensible approach to evaluating the economic benefits of such measures.

A closer look at the methodological weaknesses addressed in the standard allows initial conclusions to be drawn about the main focus of the content: If you mentally turn these shortcomings into positives, you get a good picture of which aspects the standard particularly addresses.

Time frame for the verification of your energy-related investments

The time frame for verification in accordance with EN 17463 is defined by law. If companies are obliged to implement the "Energieeffizienzgesetz" (Energy Efficiency Act, EnEfG), proof must be provided by July 18, 2025 at the latest (20 months after the law comes into force on November 18, 2023). Companies whose average energy consumption over the last three years was less than 7.5 gigawatt hours per year are exempt from this obligation.

As soon as a company has completed the validation of its energy-related investments with a report, it can commission an external audit by an accredited body, such as DQS, to verify the implementation of the standard requirements.

Audits in accordance with DIN EN 17463 may only be carried out by auditors approved for ISO 50001, EMAS assessors or energy auditors in accordance with the "Energiedienstleistungsgesetz" (Energy Services Act, EDL-G).

Energy-related investments—conclusion

Internal and external audits—particularly in accordance with ISO 50001—show that many companies need to invest in modern, energy-efficient machinery and equipment. Both economic and normative requirements for energy efficiency must be taken into account.

Challenges arise in particular when assessing cost-effectiveness: if unsuitable methods are used, investments may erroneously appear not to be worthwhile. As a result, identified measures are not implemented and the achievement of key sustainability goals is delayed.

The DIN EN 17463 standard published in December 2021 offers companies a commercially sound, practice-oriented method for validating their energy-related investments. Especially if companies are affected by Section 8 of the EnEfG or want to submit applications as part of the "provision of ecological counter-performance".

To provide proof of validation in accordance with DIN EN 17463, a company must undergo a corresponding inspection by an authorized inspection body, such as DQS. This also applies if the company already has ISO 50001 certification, EMAS registration or has undergone an energy audit in accordance with EN 16247-1.

DQS—your reliable partner 

for energy management

Today, economic success and environmental protection are equally important corporate goals that are closely intertwined. In order to achieve this connection smoothly, it is advisable to proceed step by step. A professional energy management system in accordance with ISO 50001 helps you to continuously improve your energy-related performance.

With more than 40 years of experience and the expertise of over 3,000 auditors worldwide, we are a trusted partner at your side when it comes to audits and certifications of management systems. Our industry-experienced auditors will guide you professionally and competently through the entire certification process. 
 

Expertise and trust

Please note: Our articles, white papers and other content are written exclusively by in-house experts in management systems and long-standing auditors. If you have any questions for our authors about the content, please contact us. We look forward to talking to you.

Note: For reasons of better readability, we use the generic masculine. However, the directive includes persons of all gender identities where necessary for the statement.