What is Energy Management

What is energy management?

Energy management is the practice of monitoring, controlling, and optimising energy consumption in buildings by utilising technologies to enable practices designed to reduce energy waste, energy costs, and energy efficiency.

It’s also a powerful way to cut costs, enhance corporate social responsibility efforts, comply with regulatory standards, and enhance process efficiency. By implementing these strategies, businesses can significantly reduce their carbon footprint, enhance operational efficiency, and attract investors who value sustainable practices.

Why is energy management important?

Energy use and associated emissions have risen by 60% since 1992. According to the U.S. Department of Energy, energy accounts for nearly 35% of all energy consumed in the U.S. and generates 826 million metric tons of CO2 emissions. To meet our 2050 climate goals, energy management is critical in reducing emission targets and adhering to evolving environmental regulations.

Energy management is vital for industries where energy consumption is high and operational efficiency is crucial. In manufacturing, even across complex, global facility portfolios, an energy management system can reduce energy costs by up to 30%. By optimising energy use, companies can not only save money but also increase the lifespan of their equipment and reduce maintenance costs.

As the global energy landscape shifts toward renewable sources, effective energy management helps organisations transition smoothly, ensuring they remain competitive and sustainable in a rapidly changing market.

What’s in an energy management system for buildings

Real-time monitoring with sensors and metres

Sensors and metres are installed at key points to collect real-time data on electricity, water, gas, temperature, and humidity. These devices provide detailed information enabling an EMS to track patterns, detect inefficiencies, and identify opportunities for savings.

View our power and energy monitoring products

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Energy efficiency via automated controls

Automated controls adjust in real-time, based on data provided by connected devices, occupancy, temperature, or humidity readings. Automated lighting systems can dim or turn off when spaces are unoccupied, and industrial machines can operate at optimal levels based on demand.

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Insights from energy management software

Data collection and analysis tools aggregate data to provide actionable insights that can optimise energy consumption. These tools often integrate with platforms like building management systems (BMS) for additional data, allowing users to make informed decisions – adjusting energy usage during peak hours, identifying underperforming equipment, or planning for energy upgrades.

View our portfolio of energy management software

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Support with energy management services

Energy management services are often integrated into an EMS to provide additional support and expertise. This can include remote monitoring, alerts for unusual energy patterns, predictive maintenance suggestions, and regular updates on the latest technologies.

What are the benefits of energy management?

While every business or industry has unique requirements, organisations can expect some common benefits from implementing effective energy management practices.

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Cost savings

Minimise utility bills and maintenance expenses by optimising energy consumption and extending equipment life.

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Operational efficiency

Streamline operations by enhancing energy use, reducing waste, and maximising equipment lifespan and process productivity.

Accuracy and accountability

Utilise energy monitoring systems to ensure precise data, enabling informed decisions and more accurate billing.

Sustainability and environmental impact

Cut energy usage to reduce carbon footprint, contribute to sustainability, and meet environmental regulations.

Proactive maintenance

Anticipate and resolve equipment issues with continuous energy monitoring, boosting reliability and reducing downtime.

Compliance with industry standards

Stay ahead by meeting evolving IEC, UL, and CE standards to ensure reliability, precision, and regulatory compliance.

Risk management

Mitigate energy supply risks and ensure compliance with ongoing efficiency regulations to avoid penalties and maintain smooth operations.

Return on investment

Realise financial benefits from optimised energy use, leading to lower energy bills, extended equipment life, and better ROI.

What are the common challenges of energy management?

Energy management provides numerous benefits but can present challenges that should be addressed to successfully implement an effective energy management plan.

Upfront costs

Installing new or upgrading existing infrastructure to be more energy-efficient can involve retrofits or replacements, posing challenges for organisations with limited capital.

Lack of expertise

Minimal in-house expertise can hinder the successful implementation of complex energy management strategies.

Data overload

It can be challenging to manage, analyse, and interpret all the data needed to make informed decisions.

Resistance to change

Without a strong understanding of the benefits of energy management, stakeholders may be reluctant to support new initiatives or invest in energy-saving technologies.

Regulatory complexity

Organisations must stay updated and continuously adapt their energy management practices to remain compliant to evolving energy regulations and standards.

Sustainability vs. cost prioritisation

Energy management might not always be a top priority for organisations facing multiple competing business objectives, such as production targets or market expansion.

How do I get started with energy management?

The best way to develop an energy management strategy is before the hammer meets the nail – planning, assessing, and evaluating the most suitable approach to your needs. Every organisation has its own challenges and requirements. Whether a large industrial facility, a commercial building, or a smaller operation, the following steps will help you get started with energy management effectively.

Conduct an energy audit to get a clear picture of how energy is currently being used. Identify energy-intensive processes, pinpoint inefficiencies, and assess the overall energy performance of your operations. This will form the basis for your energy management strategy, highlighting areas where immediate improvements can be made.
- Take our energy audits instrumentation class
Set clear energy goals that align with overall business objectives. Include clear targets such as reducing energy consumption by a certain percentage, cutting down on energy costs, or achieving specific sustainability metrics. These goals give energy management efforts direction and purpose.
Develop an energy management plan that outlines the specific actions needed, for example, upgrading equipment, implementing energy-efficient technologies, or optimising operational processes. Include timelines, assign responsibilities, and set up a system for tracking progress and measuring success.
Implement the right tools and technologies by installing sensors, metres, and automated controls to monitor and manage energy use in real-time. An Energy Management System (EMS) can integrate these tools and provide a centralised platform for analysing data and optimising energy performance. Ensure that the technologies you choose are scalable and adaptable to future needs.
Build a culture of energy awareness by communicating the importance of energy management to stakeholders at all levels. Training and awareness programmes can help foster a culture of energy consciousness where everyone is motivated to contribute.
Monitor, measure, and optimise using tools implemented to track energy performance against goals, and regularly review energy data, analyse trends, and identify new opportunities for improvement. Adjust your energy management strategies as needed to ensure that you stay on track to meet your objectives.
Review and update the energy management plan as needed, periodically reviewing and updating it to reflect changes in operations, new technologies, or shifts in energy goals. Continuous improvement is key to maintaining an effective energy management programme.
If necessary, seek external support and expertise to help manage energy effectively. Many energy management service providers offer consulting, auditing, and implementation services that can help you navigate the complexities of energy management. Partnering with experts can accelerate your progress and ensure you apply best practices in your energy management efforts.