4 Reasons Why You Need an Energy Management System
by Coleman Harrison
Every organization, regardless of industry or size, uses energy in one form or another. For decades, utility invoices were another bill to be paid and forgotten about, but as markets shift and evolve, energy consumption is becoming a vital metric to understand and track.
Below, we outline 4 reasons your organization should consider adopting an Energy Management System (EMS). Before we discuss that, though, what is an EMS?
what is an energy management system?
There are a few different definitions for an Energy Management System. In the world of corporate sustainably and for the purposes of this article, an EMS is a system to track, understand, and analyze energy consumption across an organization. Note that an EMS system can go by a few different names or is sometimes integrated into existing Building Automation Systems (BAS) or other building control systems. An EMS system is also sometimes called an Energy Portfolio Manager, Energy Dashboard, or a similar term. Regardless of what they are called or what existing systems they are bundled with, all EMSs share common functionality and goals.
Often web-based, an EMS centralizes and unifies energy information (usage, demand, cost, utility provider, currency, type, account numbers, service addresses, etc.) across the facilities your organization occupies. Whether a few local sites or dozens scattered across the world, a robust EMS system collects and displays this information in a way that is easy to understand while also making data accessible and exportable so internal teams can run their own analysis in the program of their choice. A true EMS is more than a complicated spreadsheet; it is a foolproof, unbreakable tool that can be catered to your organization’s individual needs.
Energy markets are complex and can be difficult to understand for a single facility, let alone multiple. A robust EMS program extracts and normalizes key information so every facility is reporting the same information the same way, so facilities can be better benchmarked and compared to one another.
4 Reasons Why You Need an Energy Management System
1. simplify data collection
Tired of chasing down utility invoices, complex spreadsheets, juggling utility portal logins, and hours of manual data entry? You are not alone. A robust EMS system will do this work on your behalf. In many cases, it silently collects this information in the background, eliminating errors and giving you time to focus on making decisions around your energy.
If the EMS you are considering does not offer the ability to automate data collection, consider the additional time and training needed to get this system up and running, as well as ongoing maintenance. An EMS system should be an asset, not a liability, so it should be saving you time in the long run, not adding an additional task for your team members to stay on top of.
2. Improved visibility, Understanding, and transparency across the organization
Energy information should no longer belong to an individual facility manager at a single facility – it is information that should be available across the organization. When empowered with a high-level view of your organization’s energy use, you are equipped to negotiate better energy rates, identify abnormalities, optimize your energy use, and make better informed decisions.
3. smarter, data-driven decision making
Which facility uses the most energy? Which facility spends the most on energy? Is it because it is the largest or has the most energy-intense operations? Is it in the least-ideal climate? Or are there glaring functional inefficiencies? Which facilities spend more per unit of energy used? Which facility spends more per unit of product produced? What sort of energy do they use (electricity, natural gas, etc.)?
An EMS can help you answer important questions like these with verifiable, data-backed reasoning, as well as normalize for things like production numbers, square footage, and weather -- all things that, if unaccounted for, could skew data insights.
Considering energy efficiency projects? It can be important to know which facilities would benefit the most from a reduction in energy use. For example, say an energy efficiency project is estimated to reduce energy consumption by x units; which facility would reap the greatest return from this reduction? If a facility pays a high cost per unit of energy, the return can be realized quicker than if it paid a lower cost per unit of energy.
Consider your company’s operations; if the systems used to manufacture or sell your products use intense amounts of energy, do you account for this expenditure when calculating your profit margins? It may only be a few pennies worth per unit produced, but if you work in a market where profit margins are tight, a few pennies can make a significant difference at scale. Failure to account for energy costs linked to your manufacturing operations can be a massive oversight and can cost your company significantly in the long run.
4. ease corporate reporting
Does your organization report its carbon emissions? If not, it’s likely you will be required to in the near future. A major component in an organization’s overall sustainability is energy usage, namely, electric consumption, as it is a significant source of carbon emissions that can be linked to an organization’s operations. Thus, here also lies the greatest opportunity for impact.
A robust EMS has the information you need at your fingertips 24/7/365, so when it comes time to report your energy consumption, you’re only a few clicks away. A solid system also allows you to track and verify energy conservation projects, providing meaningful data to back your organization’s achievements.
A strategic aspect to consider is future-proofing your organization’s sustainability metrics. Energy consumption is a vital component to track and understand, but as markets continue to evolve, can your EMS evolve as well? Are you able to make changes to how data is collected and reported? Are you able to generate a report that addresses the specific reporting needs of a governing body, customer, or supplier? Can your EMS system be expanded to include things like water, waste, refrigerants, or other important metrics? Also, consider the team behind your EMS – is there someone you can seek advice from if you have a question about the system or energy in general?
how much does it cost?
EMS systems, like many business-centric software systems, vary widely in price. For Foresight EMS, at a minimum, utility bill collection and reporting can cost as little as $10.00 per utility bill per month. The number of accounts, bills, and facilities impacts the cost, as well as bill accessibility (if there is an online utility portal or not). Similar software varies widely in price, so we recommend reviewing multiple systems to compare features and benefits and weigh cost differences.
Foresight EMS
Called simply, Foresight, Foresight Management offers a robust, industry-leading EMS system. We developed this program from the ground up, and it is currently being used to collect and analyze data for dozens of clients in thousands of facilities worldwide. Data entered into Foresight also automatically integrates with the Department of Energy’s benchmarking platform, Portfolio Manager.
Beyond offering the important features highlighted in this article, we work daily to improve our systems to deliver the highest value for our clients. Considering implementing an EMS system? We are always open to chat, so drop us a line!
Conclusion
Understanding energy for your organization’s facilities can be difficult, but it doesn’t have to be. Modern EMS systems are empowering organizations big and small, across industries and around the world, to be smarter about their energy and sustainability. When we know more, we can be smarter about our choices to drive a more beautiful and sustainable world.
