Energy Management

What is an Energy Management System and How to Choose the Best One for You?

An energy management system is a wise investment that can reap huge dividends in the near future. Here is how you should go about choosing one.

An energy management system (EMS) is a comprehensive tool used to monitor, control, and optimize the energy consumption of buildings or systems. It collects data on energy usage, identifies inefficiencies, and implements strategies to reduce costs, carbon emissions, and improve overall energy performance.

5 reasons you need an energy management system now

Sustainability is now a top priority for C-suite executives as governments have started outlining aggressive environmental targets. For instance, the UK’s Sixth Carbon Budget requires a 78% reduction in carbon emissions by 2035 compared to 1990 levels. 

Large-scale energy users like commercial enterprises and property chains with a focus on operational efficiency and energy cost optimization can significantly benefit from an energy management system. 

Five reasons why you need an energy management system today are:

1. Improves occupant comfort 

EMS gathers sensor data from IoT devices and identifies threshold deviations in areas with frequent occupancy. Proactively resolving such deviations improves occupant comfort. 

Strategies like occupancy-based smart HVAC optimization can save significant energy costs while keeping occupants healthy, productive, and safe. 

2. Extends equipment lifespan 

EMS not only collates energy records but is also a reference point for all historical information about equipment. It can provide information about past repair/retrofitting and aid in identifying fault patterns that require attention. Eventually, it helps extend the equipment's lifespan.

3. Ensures compliance with local energy regulations 

In the United States and worldwide, energy regulations have complex reporting requirements. Manually managing these reports is prone to errors and can lead to non-compliance. 

Energy management systems automate compliance tasks and streamline report creation, making the process more efficient and reliable.

4. Improves operational efficiency

Energy management systems solve metering and measurement of energy consumption at a grassroots level. They consolidate energy data across multiple sites and regions in a single dashboard, giving a unified view of energy consumption. 

The data so collated is used to set internal and external benchmarks, which helps in the optimization of equipment working below benchmark levels. 

5. Reduces the carbon footprint

A significant benefit is a tangible reduction in carbon footprint. By adopting a proactive approach, energy management systems promote environmental sustainability and help organizations achieve their building sustainability goals.

Common misconceptions about energy management systems

Despite all these benefits, organizations are still wary about investing in an energy management system. Several misconceptions stop them from considering its implementation.

Like any capital-intensive investment, an energy management system also requires significant upfront capital. However, considering the energy savings, decarbonization effect, and sustainability impact, it is a worthwhile investment. 

Also, modern cloud-based energy management systems can be easily upgraded without requiring sunsetting on-premise systems with siloed systems. 

A cogent vision of your buildings data - systems, actions, environment Purpose-built efficiency, on loop
Facilio's Unified Platform

Modern energy management solutions can be deployed quickly, often in 2-12 weeks, depending on your needs. This is because they follow a platform approach, which ensures that all necessary systems for different functions are integrated and made usable simultaneously.

Facilio is a cloud-based energy management system designed to deliver faster time-to-value and reduce deployment time by threefold. It can roll out a fully usable energy management system for your portfolio in two weeks or less. 

Progress begins with project review, followed by a pivot launch, building data onboarding, progress check-in, and final roll-out. The deployment process follows a structure that reduces disruption and aids in quickly realizing efficiency gains. 

Building blocks of an energy management system

An energy management system is not a single software tool but a combination of hardware and software designed to function together.

They comprise:

  • Meters for recording
  • Data analytics suite
  • Automation
  • Advanced control systems

At the bottom level are meters across each site location that record energy consumption and aid in calculating an estimated cost. 

Traditionally, these have been manually operated, with technicians noting meter readings and entering them manually in spreadsheets or other tracking software. 

In recent years, automation has enabled meter readings to be pulled automatically and imported into energy management systems. These systems help in centralized monitoring, visualization, and benchmarking of energy consumption data.

However, with AI, a large scope of these activities can now be automated. Energy management systems can automate repetitive routine tasks and integrate third-party systems that may already be in use.

Finally, an energy management system also acts as an advanced supervisory control tool that facility managers can use for portfolio-wide energy management.

How to choose the right energy management system for your buildings?
Read Now

The two approaches to choosing an energy management system

Setting up an energy management system for your facility can be approached in two ways. 

The first one, where you continue using existing systems comprising multiple solutions from diverse third parties. This results in a fragmented ecosystem where some systems become redundant or incapable of integrating with new systems. 

It necessitates extensive manual effort that leads to inconsistencies. Also, it becomes a burden for portfolio management instead of facilitating it.

The alternative approach would be to choose a platform that seamlessly integrates and unifies all systems. It builds upon your existing framework and acts as a hub that consolidates all data while setting the stage for easier data analysis. 

Facility managers with sizable portfolios to manage to realize the benefit of this platform approach. Facilio is one such centralized operations management platform. 

It creates a common data structure by integrating all individual applications for:

  1. Energy management and optimization
  2. Operations management
  3. Equipment management
  4. Stakeholder engagement
Facilio | Centralized operations platform for energy management
Facilio creates a centralized operations platform by integrating all individual applications

Types of energy management systems

Three major types of energy management systems are:

  1. Rule-based energy management system: Uses predefined rules to manage energy consumption.
  2. Forecast-based energy management system: Utilizes predictive analytics to forecast energy usage and optimize accordingly.
  3. Cloud-based energy management system: Leverages cloud computing for data storage, analysis, and remote access.

Rule-based energy management system

Forecast-based energy management system

Cloud-based energy management system

What is it?

Uses predefined rules to manage energy consumption.

Utilizes predictive analytics to forecast energy usage and optimize accordingly.

Leverages cloud computing for data storage, analysis, and remote access.

Key features

  • Predefined rules and logic for energy management.

  • Automated energy adjustments based on dynamic conditions like time of day, occupancy, etc.

  • Predictive analytics for accurate forecasting of energy usage.

  • Can integrate external factors (e.g., weather, production schedules).

  • Energy monitoring

  • Analytics & BI

  • FDD & continuous commissioning

  • Portfolio-wide remote command and control

Example

Lighting systems dim or turn off when rooms are unoccupied.

Industrial facilities schedule energy-intensive processes during off-peak times.

Retail chains manage energy consumption and attain sustainability goals across multiple stores from a central dashboard.

Learn how British Land moved closer to net-zero operations with Facilio’s connected buildings.


Pros

  • Simple and reliable.

  • Easy to implement and manage.

  • Optimizes energy use based on predictions.

  • Reduced energy costs.

  • Automated utility reporting

  • Portfolio benchmarking

  • Granular-level insights of cost factors

  • Detailed reports for internal audit/compliance

Cons

  • Not always flexible

  • Does not adapt dynamically to changing energy needs and circumstances.

  • Requires accurate data and sophisticated data to work accurately.

  • Higher initial implementation cost.

Rollout happens in phases, which could limit capabilities and thereby affect operations.

How to choose the best energy management system 

Now that you've explored the different types of energy management systems and their advantages, you're well-equipped to make an informed decision. 

However, several key factors come into play when selecting the right energy management system for your organization.

Use this checklist to ensure that you are considering all vital aspects before making a buying decision.

Checklist: key factors to consider when selecting an energy management system

1. Compatibility with your existing systems

  • Is it built on the cloud, offering easier application integration and quick scalability?

  • Can the energy management system seamlessly integrate with your current BAS, FDD, CMMS, or CaFM software tech stack?

  • Is it compatible with existing IoT sensors, HVAC systems, and other energy equipment?

  • Is the system plug-and-play to allow for seamless integration?

2. Data collection and analysis

  • Does it have robust data collection capabilities to record data from site-level equipment and consolidate it at the portfolio level?

  • Can it create reports for compliance and monitoring KPIs using the centralized energy data?

  • Does it offer built-in analytical capabilities to convert consolidated data into insights in real-time?

3. User-friendliness

  • Is the system easy to use and understand, even for non-technical stakeholders?

  • Does it promote stakeholder engagement through the active sharing of dashboards and reports?

4. Technical support

  • Does the system vendor offer reliable customer support to resolve any unexpected technical issues?

5. Pricing

  • Is the system affordable, including initial setup, subscription fees, maintenance costs, and contingency costs?

Ready to optimize your energy costs with Facilio
Book a Demo

Powering Efficiency: Facilio's Smart Energy Management for Facility Operations

Facilio is a state-of-the-art energy management platform that can solve your energy management woes and turn them into an efficient operation. It can integrate seamlessly with your existing infrastructure, ensuring that you can scale your operations without any disruptions or creating data silos. 

Facilio uses IoT and cloud services to provide real-time data analytics and predictive maintenance alerts to optimize energy consumption and costs. It is also a tool that you can count on to achieve your sustainability goals and stay compliant with regulatory standards.

Here’s a deep dive into its top energy management features:

Optimize portfolio energy management with Facilio’s connected building solution
A quick overview of the energy management features of Facilio

A point about regulatory compliance

Keeping pace with a growing web of international and regional energy regulations can be a compliance nightmare. 

Facilio streamlines this process by ensuring you stay on top of evolving energy regulations and standards. It auto-generates reports required by authorities, complete with relevant data, saving you up to 65% of the time and effort typically spent on compliance tasks. 

Schedule a demo with Facilio to see how a software-led approach can help you achieve energy efficiency across your portfolio.