6 Reasons to Have Energy Management System for Your Business

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Electricity bills are an enormous cost for business owners. the great news is that improving efficiency can help reduce the value of electricity bills and convey significant benefits to business people. consistent with IEA’s 2018 energy efficiency report, energy efficiency improvements since 2000 have prevented a 12% increase in energy use in 2017 IEA.

From installing LED lighting to upgrading heating and cooling systems, businesses can implement a variety of strategies to lower their energy footprint and at an equivalent time improve property value and reduce operating costs. Other solutions include but aren’t limited to putting together sealing and insulation, power factor correction, and improving the standard of supply. This doesn’t mean that you simply got to change a number of your expensive assets. However, before acting, you ought to understand your energy profile to understand which energy reduction strategies will best fit your business needs. this will be provided by energy management systems.

Here are some reasons why you ought to have an energy management system for your business.

1.) Know Your Energy Needs:

Here’s an energy management strategy that will help you understand your consumption patterns; i.e., when you’re using your energy most intensely and which kinds of processes or equipment are contributing to this.  You can pinpoint your energy waste with advanced data analytics.

Australia’s energy consumption rose by 1.1 per cent in 2016–17 to reach 6,146 peta-joules, according to Australian Energy Update 2018, Department of the Environment and Energy, Environment. Some actions need to be taken to increase competence and reduce consumption.

Hence, a reduction in your electricity consumption will transform costs to savings and better your consumption patterns. In addition, if your business has operations in different locations, energy management systems will provide benchmark across your offices/ branches/depots/ shops, etc.

2.) Improve Your Power Factor To Reduce Your Electricity Bill

An energy management system also will show your active and reactive power data which you’ll got to understand your power factor.

Power factor represents the connection between real and apparent power.

Real power is employed in your system, but apparent power may be a combination of real and reactive power. Reactive power may be a circulating component between the network and a few type loads (motors, converters, etc.), and it’s not converted on to a piece. However, if your tariff has charges either directly on reactive energy or on peak demand, you’ll still be paying for not only real power but also reactive power. the upper the reactive power the upper you buy apparent power and peak demand.

Power factor is between 0 and 1, and a better value means higher efficiency.

As a result, taking control of your power factor will reduce your electricity bill significantly. Power factor correction equipment, which supplies circulating reactive power rather than the network, are going to be an economical measurement. additionally, your equipment’s lifespan will increase because you’ll be regulating your voltage level, which is directly associated with the equipment lifespan.

There are several sorts of power factor correction equipment like capacitors, static compensators, etc. which are used mainly for reactive power compensation and voltage regulation. Capacitors are generally an honest slot in industries due to relatively cheaper installation costs compared to other measures. However, capacitors should be designed and sized properly to avoid the amplification of harmonics (resonance phenomena) generated by disturbing loads like arc furnaces, welding machines or rectifiers. To avoid this, either harmonic filters or static compensators are often used. the great news is that business can claim up to $41/kVAr by installing Power Factor Correction (PFC) Relay Meter.

Figure 1: Energy Management System Architecture.

3.) Track Your Energy KPIs To Reduce Your Operational Cost

Building energy performance also can be improved by effective energy management systems. Different business segments have different performance criteria; for instance, consumption/m2, kWh/occupant rate for hotels, etc.

It is obvious that suitable KPIs should be in situ to develop efficient energy-saving strategies, and therefore the importance of benchmarking KPIs across your operational units for monitoring the performance and driving improvement potentials with the KPI is additionally crucial for process improvements.

As a result, the successful application of a KPI depends on its continuous measurability and accurate data during a timely manner. Energy management system helps to trace these KPIs across your operational units with related metrics. Hence, you as a business owner can find effective solutions to trace energy saving opportunities.

The energy management system also enables to line a target value like targeted electricity consumption/month and targeted cost/month in order that deviations are going to be easily tracked and identified. additionally, an energy management system provides a comparison between the previous and therefore the current situation for energy efficiency assessments and helps to systematically develop KPIs.

4.) Reduce Your Electricity Demand Charge

A demand charge is a part of electricity bill where a daily charge is determined by the highest power demand (load) observed during a certain time frame during the day in a specified period. It is usually the maximum demand at a 15- or 30-min interval and calculated on kVA or kW. Your electricity bill will mostly be influenced by the highest demand for used energy at this particular point in time.

One of the main reasons kVA demand charges are being introduced is to encourage customers to improve their power factor. A poor power factor places higher demands on the electricity network. There are benefits for customers and our network when the power factor is improved according to Ergon.

Tips to save Electricity:

  • To pay less to demand charge, there are some strategies that could help, such as:
  • Be aware of your consumption and identify when your consumption is the highest
  • Then, change your high load periods accordingly
  • Identify the most electricity consuming equipment and take action
  • If you decided to buy new equipment, be careful about their energy ratings

To take these actions, accurate data and analytics are needed from EMS, which will show you which equipment consume more or will show your consumption trends.  In addition, EMS will also track your demand charge and will send a notification if you are close to out of limit.

6.) Your HVAC System Is Under Control

HVAC is one among the most important energy consuming equipment and needs to work efficiently.

Heating Ventilation and Air Conditioning (HVAC) is usually liable for a big proportion of total building energy consumption. A typical system accounts for about 40% of total building consumption and 70% of base building (i.e., landlord) consumption consistent with the Department of the Environment and Energy as are often seen in Figure 2. Energy.

  • Load disaggregation option of energy management system will provide more insight about your HVAC and other energy consumed equipment load details. Reduction in energy use of HVAC can be achieved, and some of the strategies are:
  • Change or clean your HVAC filters
  • Identify optimum set points
  • Identify energy waste times

If you decide to shop for a replacement one, it’s better to form sure about their efficiency rating. there’s really useful information on energy rating.

Overall, if you’re investigating energy savings, then you’ll replace your equipment or appliances, or believe other energy saving options. The energy management system will track your progress by analyzing data, will track your actions, and enable better energy control.

There is below Case study related to Energy Management,

How TRINITY help to monitor and reduce WINGSAUTOMOBILE’S Energy Consumption and costing them to pay the Extra amount in their Electricity Bills?


You will be ready to make an informed decision with accurate data. to realize your energy saving targets, Please Contact.

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