Energy Management & Its Importance

Our world is already fraught with rising energy demands. As per the data available, the total energy consumption of the world is expected to increase by 48% before 2040, says a report published by US Energy Information Administration(EIA).

But favorably, employing an energy management system(EMS) in a building – that aims to make use of the energy sources efficiently – may save up to 29% on energy consumption costs. So, efficient energy usage is the solution for this world’s ever-rising energy hunger.

Now, the term – energy management – might be bringing to you an image of just switching off some unused lights and appliances. But here’s the fact – energy management covers more than just switching on & off lights & fans. The process also has a role to play in many areas like Logistics, Industrial Production, Machine Maintenance, the Energy Procurement Process itself, and even your Personal Life.

So in this article, we are going to give you more details on the process of energy management covering all the aspects that we just mentioned above, will give to essential reasons for energy management and will also describe what an energy management system does. So, this will be an in-all-one article for you on energy management. And finally, we’ll also introduce to you our Energy Monitoring System and what else we do.

What is Energy Management?

As per Verein Deutscher Ingenieure (VDI), which is an organization with 150,000+ engineers and scientists, energy management is defined as follows-

Energy management is the proactive, organized, and systematic coordination of procurement, conversion, distribution, and use of energy to meet the requirements, taking into account environmental and economic objectives.

To make things simple, we can define Energy management as a process that involves optimization of energy use for the best possible outcomes and taking steps for its conservation. It also includes planning related to the production of energy and its storage for future usage. So, the ultimate aim of this process is not only to save the cost but also to achieve complete environmental sustainability.

Recognize that contrary to the ongoing belief, the energy management process applies not only to large buildings and industrial facilities but even to our small living units, like our kitchens or dining room. So, you can start applying the process right away from your home by switching off the electrical appliances when not in use to save your electricity bills.

Various aspects of Energy Management

Now, let’s look at various aspects of energy management i.e. how the process of energy management helps in areas like Building Facilities, Logistics, Industrial Production, Machine Maintenance, Energy Procurement Process, and your Personal Life. 

1. Facility Management

Energy Management is a part of facility management. 

Energy management in commercial spaces involves steps to reduce electrical energy consumption costs, but without compromising the quality of work. 

As we just told you above, you can save up to 29% of the total energy costs through the implementation of energy management systems.

2. Energy Management in Logistics Operations & Transportation

Energy management in Logistics implies choosing the right means of transportation, routes, performing load optimizations, using fuel-efficient vehicles, and opting for clean fuels. 

Around 15% of CO2 emissions worldwide are caused by road transportation operations. So, implementing energy management here will not only save transportation costs but also combat environmental damage and global warming.

3. Energy Management in Manufacturing Industries

A lot of energy improvement scope also lies in industries. Ensuring best energy practices in industries will save substantial costs, improve work efficiency, and will provide a safe working environment. Following measures, if undertaken can save energy inside the manufacturing plants.

  • Replacing old manufacturing machines with modern energy-efficient ones,
  • Proper planning of production and maintenance activities,
  • Using innovative ways of energy storage devices e.g. lithium-based electromechanical devices,
  • Spatial plannings.
  • Using energy-efficient technologies – One of the examples of energy-efficient technology is using Infrared Radiation(IR) for heat treatment or cooking purposes. IR treatment in a food processing company may save up to 78% of its electricity costs. Also, it also doesn’t require any oil, unlike traditional cooking, and that oil also has to be replaced regularly. So, using IR can provide more savings.

4. Energy Management in Energy Procurement Process

The energy procurement process involves selling/purchasing energy units.

The poor approach and transactional decisions here may result in increased energy bills of an organization. So implying energy management here involves taking proactive and smart buying decisions to save energy costs.

5. Personal Energy Management

Personal energy management is about managing your physical activities, mental efforts, as well as your emotional state throughout the day for a happier and healthy life.

What are the steps involved in Building Energy Management?

Out of the various aspects of energy management that we described above, we’ll be primarily focusing on Energy Management inside commercial/residential buildings i.e. Building Energy Management, which is part of facility management.

Now, we’ll bring the Energy Management System here. And so, the process of energy management in buildings will involve the following four steps – Collecting the data, then analyzing it to look for energy-saving opportunities, acting upon the opportunities, and REPEAT.

1. Collection of energy data


As a rule of thumb: the more data you can get, and the more detailed it is, the better it is.

The modern approach to energy-data collection is to measure and record energy consumption at short & regular intervals, like for every (15-30) minute. Detailed interval energy consumption data makes it possible to see patterns of energy waste that would be impossible to see otherwise.

So, with our Energy Management System(EMS) we’ll be tracking all types of pieces of equipment like lifts, electric panels, diesel generators, etc.

2. Inspection or Analysis of energy data captured

The detailed data you have collected will be invaluable if it’s not analyzed to quantify energy-saving opportunities.

The easiest and most cost-effective energy-saving opportunities typically require little or no capital investment.

And this how you can do this-

a.) Use your interval data to calculate how much energy (in kWh) is used each weekend.

b.) Estimate the proportion of energy that is getting wasted on a daily basis.

Using the figures from (a) and (b), calculate an estimate of the total kWh that is wasted each weekend.

3. Act accordingly to improve the energy consumption

Only by finding the opportunities won’t help you to save energy. One has to take action on the basis of the data collected and findings done.

4. Keep tracking the complete process for continuous future optimizations


Once you’ve taken actions to save energy, it’s also important to find out how effective your actions have been.

Energy savings that come from behavioral changes need ongoing attention to ensure they remain effective and achieve their maximum potential.

If you’ve invested money into new equipment, you’ll probably want to prove you’ve achieved the energy savings you predicted.

If you’ve corrected faulty timers or control equipment settings, you’ll need to keep checking back to ensure everything is still working as it should be.

If you’ve been given energy-saving targets from above, you’ll need to provide evidence that you’re meeting them, or at least making progress towards that goal.

Why is Energy Management important?

Energy management is today’s need of the hour. We have already talked about how it aims to conserve energy turning into cost savings. But there are plenty of more reasons attached to the scene.

1. Energy Management saves costs

Now we already know this, using an EMS in a building may bring up to 29% savings on total energy consumption costs.

Secondly, even a small measure undertaken, like replacing old CFL bulbs with more energy-efficient LED lights, can reduce the lighting energy consumption by more than 50% over a long period of time.

2. Reduces the risk of energy scarcity

Though energy is just converted from one form to another, it’s still susceptible to its scarcity.

As per a study conducted by the US Energy Information Administration(EIA), the world’s energy consumption is expected to grow by 48% by 2040. If not taken adequate steps, a sudden surge in energy demand may cause energy scarcity in the future.

3. To reduce greenhouse gas emissions


38% of the world’s total electricity is produced via coal power plants. The burning of coal and other fossil fuels release Greenhouse gases like CO2, CH4, CO, CfCl, etc that poses the threat of global warming and its induced climate change.

4. Renewables have overhead costs too

Even the energy obtained from renewable sources has substantial overhead costs and capital costs attached to them. So we need to consider this factor also.

As per EIA’s Annual Energy Outlook 2021 report, the capital costs in terms of per kW for renewable energy sources like Nuclear Power is approx $7000, Bio-mass is approx $4000, and Hydropower is approx $2700.

For the sake of comparison, it varies from $(3800-6000) for coal power plants depending upon their type.

5. To maintain energy price

A balance between demand vs supply is essential to manage the cost of any commodity. And this goes with energy too. The fluctuations in energy prices will also affect the prices of electrical appliances.

So, proper energy management will ensure the affordability of energy and its appliances in present times and for the future.

6. To meet statutory compliance

It’s also becoming obligatory for industries to abide by energy compliances issued by regulatory bodies.

In 2019, Singapore implemented a “carbon tax” set at $5 per ton of CO2 emissions. It’s the first country in Southeast Asia to implement such a scheme. They did this to encourage industries to reduce their carbon footprint. Talking of today, the SG authorities are planning to increase this tax to $(10 – 14) per ton of CO2 emissions to further curb the CO2 emissions inside their country.

7. Managing energy also saves water

The hydroelectric power plants, though they are free from fossil fuel consumption, may degrade the quality of water resources in a variety of ways. Oxygen stratification, eutrophication, thermal pollution, and mercury pollution are the major challenges posed by hydroelectric facilities where they are constructed.

What is an Energy Management System(EMS)?

An energy management(or monitoring) system(EMS) is an automation-based system that consists of energy data capturing tools and display devices to efficiently analyze the energy consumption for desired benefits. It solves the problem of lack of proper insights and unplanned saving initiatives that results in unaccounted energy bills.


Analysis tells that energy managers across the globe are now changing their way of working towards energy analysis. As per known figures, 67% of the managers pronounced that the data has affected their thought and decision-making process.

The impact was phenomenal where they were able to see savings graphs shooting up to a huge 17% in just 12 months. And the entire project cost recovery was achieved in 14 to 17 months!.

But managing energy consumption doesn’t have to be a full-time job. As you’ll achieve much better results if it’s made a part of the regular routine.

What is LogicLadder’s The Sustainability Cloud?

We at LogicLadder offer the Energy Monitoring & Management Solution – The Sustainability Platform.

Our Sustainability platform allows you to monitor your equipment in real-time. With the help of data, you can visualize the consumption in-sights and then act accordingly to save energy costs. Know the full features and advantages of our Energy Monitoring System.

But our platform is not just another energy management tool in the market. It aims to achieve complete environmental sustainability. So, apart from monitoring and managing energy usages, you can also get insights into effluents, groundwater, and emission insights, all inside a single dashboard. This makes it a true Sustainability platform aiming at NetZero.

Read more on all the features and advantages of our Effluent Quality Monitoring System, Continuous Emission Monitoring System, and Groundwater Monitoring System.

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