Why should a business establish an energy management system?

What is an energy management system?

An energy management system (EnMS) is a management framework used by a business or organisation to manage energy use and improve energy efficiency.

In practical terms, it provides tools to monitor, manage and improve energy performance in a factory, including identifying excessive consumption and waste.

Why energy management matters

Inefficient energy use in a business or building points to opportunities to improve operating-cost control. Uncontrolled consumption is a significant source of waste. Energy management can therefore help an organisation improve its financial performance.

Energy efficiency also contributes to wider goals: lowering energy costs, reducing greenhouse gas emissions and environmental impacts, and supporting community well-being.

These considerations make it important to monitor and control energy use. An energy management system based on ISO 50001 provides a structured approach to improving energy management within a business.

Benefits of an energy management system

Optimising energy use and reducing costs

An EnMS helps a business manage significant energy uses, identify waste and implement improvements. Energy savings can reduce operating costs and support profitability, particularly when energy prices fluctuate.

Improving investment returns

Energy-saving projects can offer attractive returns when savings, investment costs and operating conditions are assessed realistically. Renewable-energy projects can also be considered alongside efficiency measures.

Using the Internet of Things (IoT)

Data from smart devices monitoring significant energy uses (SEUs) can provide a clearer picture of consumption. This information supports better control and a more timely response to weaknesses in energy management.

Strengthening reputation

Effective energy management and credible reporting of improvements can support a business's environmental reputation.

Supporting sustainability

Reducing energy-related carbon emissions contributes to lower greenhouse gas emissions and can combine environmental and economic benefits for industrial businesses.

Reducing disruption risks

Energy-consumption and fuel-stock monitoring can support contingency planning. Where appropriate meters, alerts and operating procedures are installed, the business can respond earlier to abnormal conditions. An EnMS alone does not predict every electrical fault or guarantee uninterrupted production.

Related articles

Establishing an energy management system

Online Energy Manager training course

Energy Manager training