With rising energy costs and the need to reduce their carbon footprint, more businesses than ever are implementing energy management programs to understand their energy needs better.
With multiple energy options now available to businesses, the market is creating more energy jobs for professionals knowledgeable in the traditional oil and gas sector and more eco-friendly renewable sources. These jobs are for energy managers, consultants, analysts, and engineers.
Energy management programs allow businesses to become more efficient, cut energy costs, and reduce harmful emissions while employing energy professionals.
What Is Energy Management?
Energy management is about controlling and optimizing the use of energy resources to maximize efficiency, minimize environmental impact, and reduce costs.
Every business works with energy in some capacity, so understanding its use and directing it to where it’s most needed is an important and interesting career.
Energy management involves managing a business’s energy use, such as investing in energy management software and implementing energy management systems (EMS).
How Does Energy Management Work?
After examining all the assets and resources that produce, store, and consume energy, an energy management system is implemented to help plan the most efficient distribution and storage methods.
Energy management programs involve four key steps:
- Development: An energy manager analyzes the whole energy system, creates objectives, and develops a plan to to improve efficiency in key business areas.
- Action: Employees are trained in new methods and software. Data and feedback are collected throughout the process so efficiency can be analyzed. Energy management specialists work to install smart appliances and build automation systems.
- Verify: The results are analyzed and compared to objectives. This analysis may uncover new problematic areas that require attention.
- Adjust: Since implementing a plan quickly can have long-term benefits, the energy management plan may need adjustments before striking a good balance.
Many businesses use energy management software to collect, store, and analyze data, which creates reports, workflows, and ultimately improves energy management.
Components of Energy Management Systems
An energy management system comprises many working parts, tools, and processes to help an energy management team monitor, contain, and analyze energy resources.
- Energy monitoring: The real-time tracking and collection of energy and consumption data across systems by energy analysts. The data is used to see patterns and help to identify inefficiencies.
Energy engineers can then use the insights this creates for decision-making or as proof that new technologies are working.
- An energy policy: A formal document outlining what the business intends to accomplish. It will contain the organization’s goals and the steps it will accomplish to reach them.
The targets set in this document meet at least the minimum government regulations.
- An improvement plan: A plan that will guide the business to reach its goals set in the energy policy. It should also include the actions that should be taken if there are any obstacles to overcome or upgrades to be made.
- A smart panel: an advanced electrical board that distributes power using integrated sensors and communication technology.
It also has real-time data to be collected and immediate control over electrical circuits, even remotely. It’s often operated through an app or integrated program.
- Smart circuits: Working with a smart panel, innovative circuits can be controlled individually, allowing precise control of energy distribution. This high level of control can also be automated to aid in energy-saving processes.
- Consumption monitors: Used to monitor energy consumption and help identify which equipment or systems are overconsuming power.
Consumption monitors are the key to seeing how energy moves through the business. They aid energy audits and work with smart devices to change usage details.
Why Energy Programs Are Important
Energy management programs are becoming increasingly commonplace in today’s business world because they help businesses save money, decrease their environmental impact and are necessary in some areas to comply with legislation.
Energy programs show that a business cares. Consumers want to do business with companies that share their concern with the environment, and those they know are actively contributing to a better, greener future.
Also, as new environmental benefits are discovered, more governmental bodies are increasing their regulations, which experts believe will continue in the future.
Implementing smarter energy management now can allow businesses to benefit from incentives governments give to businesses to encourage them to demonstrate effective green practices.
How Your Business Benefits From Energy Management Programs
Although setting up the system has costs, implementing an energy management program could have several business benefits that outweigh the costs.
Reduced Energy Costs
More efficient energy use helps to reduce monthly expenses and can show where further savings might be available.
If the program also indicates that switching from a traditional system to a renewable energy program might be viable, the business could save even more money thanks to the ability to store energy.
Reduced operational costs may also result. Energy management programs examine all aspects of a business and can identify areas for inefficiencies in staffing or maintenance.
Regulation Compliance
As the Department of Energy (DOE) continually establishes new mandatory efficiency requirements, businesses must also update their practices to comply with carbon footprint and emissions policies.
The business must follow local, national, or international energy regulations, or it risks fines or penalties.
No matter what stage a business is at, the Federal Energy Management Program (FEMP) offers guidance, information, and resources to help it comply with federal energy management laws.
Increase in Operational Efficiency
Just as energy management programs can identify extra operational costs, the energy audits accompanying them can help refine systems and processes.
Energy management can be a key aspect of a plan to improve efficiency and streamline workflows.
Sets the Business Apart From its Competitors
Labeling a business as green and energy-conscious benefits it and provides a competitive advantage.
It shows that a business is considering the future and working towards lower energy costs despite market fluctuations.
Loans and Incentives
Many regions of the U.S. offer incentives and rebates to businesses that strive to be more eco-conscious and provide services with a smaller carbon footprint.
These can be government incentives such as a lower rate or refunds on products that help a business develop its energy management program.
Funding may also be available for businesses looking to upgrade to smart technology or train staff in more advanced energy technologies.
Challenges of Energy Management
Energy management has many benefits but also some challenges.
Every business faces challenges in implementing energy management programs, especially those with older buildings and untrained, resistant staff.
Collecting energy data
Collecting and analyzing large volumes of information creates an energy management system that works with the business.
The process can take time, and improper training may lead to gathering incorrect information. Storing the information for further analysis can also pose a security issue.
High initial investment
Implementing an energy management program is costly. Businesses must upgrade systems and monitoring equipment, fill new jobs, and smaller businesses may struggle with the upfront cost.
However, many government programs offer rebates or grants to help offset the costs of upgrading businesses.
Age of infrastructure:
Older buildings are often less energy-efficient, and upgrading them will cost significantly more.
Additionally, they may require entirely new extensions to house smart appliances and monitors. Instead of a complete retrofit, companies in older buildings could gradually upgrade and install energy management systems.
Conclusion
Energy efficiency is becoming increasingly important to businesses. Energy management is one-way businesses can address energy concerns and receive several benefits.
While challenges exist, governments and local organizations offer programs to simplify the changes and reduce costs.
As an energy manager or engineer, you can help businesses improve efficiency, cut costs, and reduce their carbon footprint.
Are you interested? Take the plunge and learn more about breaking into energy management as a career today.
