In this article, you will know about energy management, its importance, steps involved in it, and we’ll also introduce to you our Energy Management System – The Sustainability Cloud.

Table Of Contents

What is Energy?

Starting from the basics, if we talk about the term “energy”, then it’s defined as follows:

“Energy is the capacity of a body to do work”.

It’s present in various forms, like – Heat, chemical, light, motion, or gravitational.

Also read 10 Different Sources of Energy.

Energy can neither be created nor be destroyed, which is also the statement of the First Law of Thermodynamics. It’s just converted from one form to another.

Eg. – We use the chemical energy present in our food for our day to day activities like walking, cycling, talking, etc.

The chemical energy present in coal can be converted into electrical energy and ultimately into light energy.  

What is Energy Management?

Now, talking about Energy Management, it’s defined as the optimization of energy usage for its conservation and proper utilization.

The ultimate aim of the process is to save the cost due to excessive energy consumption and to achieve one of the goals pertaining to sustainable development.

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”.


You can start applying the process of energy management right away from your home, like switching off your electrical appliances when not in use to save your electricity bills. 

So contrary to the common myth, energy management applies not only to large buildings and industrial facilities but even to small living space units like kitchens or a dining room.

What are the steps involved in Energy Management?

The process of energy management comprises the following 4 steps-

1. Collection of energy data

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

The modern approach to energy-data collection is to fit energy monitoring systems that automatically measure and record energy consumption at short, regular intervals such as every 15-minutes or half-hour.

Detailed interval energy consumption data makes it possible to see patterns of energy waste that it would be impossible to see otherwise.

An Energy Management System can be used to track many types of equipment like lifts, temperature, diesel generators, and fuel, etc.

2. Inspection or Analysis of energy data captured

The detailed data that you are collecting will be invaluable for helping you to find and quantify energy-saving opportunities. The easiest and most cost-effective energy-saving opportunities typically require little or no capital investment.

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

Estimate the proportion of that energy that is being 

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 to save energy 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 action to save energy, it’s important that you find out how effective your actions have been:

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

If you’ve invested money into new equipment, you’ll probably want to prove that 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 that everything’s 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 the need of the hour in today’s era.

We have already talked that it aims to conserve and save excessive energy usage turning into cost savings.

But there are many more elements attached to it.

As per a study conducted by the US Energy Information Administration, the world’s total energy consumption is expected to grow by 48% by 2040.

If we talk about the electrical energy produced by non-renewable (perishable) sources of energy, then coal is accountable for 38% of the world’s total electricity produced.

The next major electricity generation is Natural gas, hydro, nuclear, wind, oil, solar, waste, and geothermal.

Even the energy obtained from renewable sources still has substantial overhead costs and capital costs attached to them. So they also need to manage efficiently.

The below graph shows the trend regarding the generation of electricity from the above-described sources between 1990 – 2018.

You can also notice a substantial increase over recent years in power generation from renewable sources like wind and solar PV, which contributes a further step towards the goals of sustainability.

So, with all the above statements and statistics, it makes sense to arrive at a common conclusion that energy management is one of the inseparable goals of sustainable development. As even the renewable sources of energy come at substantial costs, efforts to save them will not only have an economic impact but will also contribute towards a greener earth.

What is an Energy Management System(EMS)?

An energy management system(EMS) is an automation based system consisting of energy data capturing tools and a display system to efficiently analyze and optimize the energy consumption for economical benefits.

Analysis tells that the energy managers across the globe are now changing their way of working and moving towards the data analysis and implementing the data for saving more.

As per the analysis, 67% of the managers said that the data has affected their thought process and decision-making process.

The impact was phenomenal where they were able to see savings graphs shooting up-to a huge 17% in the next 12 months and the entire project cost recovery in 14 to 17 months only!

So, managing your energy consumption doesn’t have to be a full-time job, but you’ll achieve much better results if you make it part of your regular routine.

What is LogicLadder’s – The Sustainability Cloud?

Having all said on energy management and its importance, we at LogicLadder are proud to introduce our Energy Management Platform – The Sustainability Platform.

The Sustainability platform allows you to monitor your equipment in real-time to get consumption in-sights and then act accordingly to save your energy costs.

Our platform is not just another energy management tool, and there’s more inside the box, as its name also describes.

So, apart from energy management, you can also get your effluents and emission insights, making it a complete Sustainability platform aiming at NetZero.

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