EMS: The Everything Management Software?!

Energy Management Software: A Primer

In today's corporate landscape, energy efficiency, cost reduction, and sustainability are not just buzzwords but critical objectives at the core of strategic planning.

The concerted efforts and organized processes aimed at achieving these goals fall within the realm of “Energy Management”. The digital arsenal for supporting these initiatives? Energy Management Software (EMS).

Wikipedia defines Energy Management Software (EMS) as:

a general term and category referring to a variety of energy-related software applications which may provide utility bill tracking, real-time metering, building HVAC and lighting control systems, building simulation and modeling, carbon and sustainability reporting, IT equipment management, demand response, and/or energy audits. Managing energy can require a system of systems approach.

This definition can surely be overwhelming at first glance. We have observed a growing sense of bewilderment among energy professionals faced with the scala of EMS solutions available.

To address this, we crafted a structure that, while not claiming to be the definitive viewpoint, aims to offer clarity and peace of mind to those navigating this complex technology landscape. Think of it as a birds-eye architecture that you can map (individual) solutions on in order to assemble an EMS suite that works for you.

This blog post outlines our structured perspective on EMS and invites your input to refine and expand upon it. Your feedback will help us:

• Enhance this framework
• Delve deeper into the most impactful elements

Stay connected for future insights!

Input - The cornerstones

Understanding and accurately characterizing your energy context is fundamental to any Energy Management Software initiative.

Internal sources

These inputs are unique to your organization:

• Operational: The layout of your sites and processes, including metering infrastructure.
• Financial: Your energy contracts, including Power Purchase Agreements (PPAs), and hedging instruments.
• Explainers: Additional internal data for enhanced predictions, such as production schedules.

External sources

These inputs are derived from the markets and specific locations your company operates within:

• Price Indices: Market pricing information for refining cost models.
• Emissions: The carbon footprint of the electricity grid mix, essential for accurate sustainability metrics.
• Explainers: External data like weather forecasts for predictive insights.
  

💡 Gathering all necessary data typically requires robust data management strategies, you will need to interface with different systems and sources!

Monitoring & optimization - The core

Effective EMS revolves around monitoring and dynamic optimization, balancing different energy objectives on operational, financial and sustainability level.

Asset-specific communication and control

We often refer to this as the "firmware". This component optimizes each equipment's performance based on its unique operational characteristics. Examples include smart management of heat pumps, EV fleets, and battery storage, with a focus on maximizing efficiency, lifespan, and responsiveness.

General asset communication and control

At a higher level, this aspect establishes a standardized framework for asset interaction, facilitating cohesive operations often through existing SCADA systems, PLCs, and OPC-based protocols. This layer is crucial for integrating energy considerations into broader operational steering, securely and efficiently.

Continuous optimization

This represents the shift towards real-time, pro-active optimization using advanced data analytics to balance operational efficiency, cost efficiency, financial risk, and sustainability based on your uniquely evolving conditions and objectives.

Discrete optimization

These less frequent, strategic optimizations focus on long-term planning and financial decision-making (e.g. questions like: Do we need a BESS? What is our ideal contract mix?). These decisions are now increasingly supported by sophisticated software solutions, moving beyond traditional consultancy-based approaches.

💡 Each of these tasks has their own technical and analytical complexity. We don't see decent feasibility for large energy consumers aiming to create a monolith "all-in-one-box" solution. You will probably need a best-of-breed of different tools.

Output - The benefits

An Energy Management Software (EMS) landscape is more than just about data collection and analysis. While the analytics provided by an EMS can be insightful, the real testament to the EMS value lies in the tangible benefits it delivers.

At the heart of any EMS initiative should be a clear focus on its intended use cases and the specific outputs that drive operational, financial, and environmental improvements.

Action

Actions driven by EMS can range from behavioral changes to automated asset adjustments. Regardless of whether we’re talking about human or asset actions, the importance of clear communication (in words or via automated 1’s and 0’s) cannot be overstated.

Value chain integration

EMS can facilitate collaboration with other energy market actors, unlocking new opportunities for efficiency and financial gains, such as demand-response initiatives (typically with BSPs or Balance Service Providers) and improved forecasting accuracy driving better portfolio and grid balancing (typically with BRPs: Balance Responsible Parties or grid operators).

Reporting

Reporting mechanisms, whether through dashboards, data exports, or API integrations, can significantly reduce the administrative burden of energy management (we all know this can be tedious!), providing insights into operational efficiency (e.g. utilization), financial performance (e.g. market price exposure), and environmental impact (e.g. Scope II).

💡 For the outputs and results, make sure you can express them in 'cash'. These kind of optimizations allow you to save while becoming more sustainable. Don't miss the opportunity of bringing this point across in the broader organization.

Conclusion

The path to effective energy management is complex. It requires a blend of technological, operational, and strategic integration. For businesses seeking to meet their energy objectives, selecting the appropriate suite of EMS tools is crucial for unlocking potential benefits. Beyond just technology, the human element—empowering teams and individuals to leverage these tools for informed decision-making—is fundamental in fostering a culture of proactive energy management. At companion.energy, we specialize in harnessing the power of continuous optimization, offering companies the data infrastructure needed to exploit implicit flexibility opportunities.

PS: We also have a series of short 101 videos on key energy management concepts. Watch them via the link below!