Without energy management systems, commercial buildings will likely suffer from unstable supply and excessive utility bills. Sophisticated technologies allow businesses to gain deeper insight into energy generation, consumption patterns, and potential demand. These systems also simplify the integration of renewable energy sources into the existing infrastructure, allowing you to combine traditional power with green energy.

However, efficient energy management for business is more than just implementing innovative tech. Advanced systems without a comprehensive strategy can result in underused investments and missed opportunities for savings.

This article describes the technologies, practices, and strategies for streamlining your energy management. To highlight its importance, let’s begin by outlining the potential cost-saving, efficiency, and sustainability benefits.

Benefits of Energy Management for Businesses

Energy management includes technologies and practices that allow companies to optimize energy production, allocation, and use. When correctly implemented, they provide a wealth of advantages.

  • Lower operational costs. Companies with advanced commercial energy management technologies can identify areas of excessive waste and implement measures to reduce consumption. AI technologies also help predict potential downtime or costly repairs caused by malfunction.
  • Reduced carbon emissions. Implementing green practices and renewable energy sources reduces greenhouse emissions and environmental impact.
  • Regulatory compliance. Efficient energy management allows businesses to monitor their energy usage and implement necessary changes to meet sustainability requirements.
  • Improved public perception. Companies that invest in sustainable energy management practices improve their environmental, social, and governance (ESG) ratings. Commitment to green initiatives will likely attract more eco-conscious investors, partners, and consumers.
  • Financial incentives. Businesses that invest in renewable energy systems and waste reduction initiatives can obtain grants from government agencies that promote sustainability practices.
  • Optimized energy utilization. Implementation of energy-efficient technologies can streamline processes and reduce downtime. For example, smart building systems can automate lighting, heating, and cooling based on vacancy rates and usage patterns.
  • Data-backed strategies. Real-time data monitoring and analytics on energy usage patterns are crucial for informed decisions. This information allows businesses to more accurately identify problems, optimize processes, and allocate energy.
  • Increased risk mitigation. Smart energy management systems enhance resilience against supply disruptions, price volatility, or potential equipment breaks.

Load balancing and billing get increasingly complex as your business grows. Learn how we developed an energy-balancing platform that laid the groundwork for a scalable management system.

To make their business more efficient, resilient, and environmentally friendly, companies should stay updated about the latest trends.

The recent years have brought many exciting developments in the energy management sector. Let’s explore the most prominent trends.

Digital transformation of the energy industry

The overall trend in the energy business is digital transformation. Digitalization involves implementing modern sensors, big data analytics, and AI technologies that enable real-time control and automation of energy systems. It also enables better integration of renewable energy sources into smart grids.

In October 2022, the European Commission adopted the Digitalizing the Energy System action plan. It aims to help businesses invest in digital energy infrastructure to support the development of a sustainable, transparent, and secure market for digital energy services.

Enhanced cybersecurity measures

The digitalization of energy systems creates risks of cybersecurity incidents that can affect the energy supply and consumer’s personally identifiable information. The average data breach cost has increased by 15% since 2020, reaching $4.45 million in 2023, according to IBM’s 2023 Cost of a Data Breach Report. The energy industry is among the top five most affected by security breaches.

To protect energy grids and sensitive information, regulators are pushing to adopt cybersecurity guidance strategies. Key strategies include encrypted communications, network segmentation, advanced monitoring, and regular data backups.

AI and ML adoption

AI has significantly transformed energy management in business. According to Allied Market Research, the global AI market in the energy industry will reach $19.8 billion by 2031—a significant increase from $4 billion in 2021.

AI systems and machine learning algorithms help companies balance energy generation, consumption, and allocation. These technologies also assist with reducing emissions and improving the management of intermittent sources.

Read more about the potential of AI for energy management .

Generative AI and LLMs implementation

Generative tools and large language models (LLMs) are specific subsets of AI that learn from existing energy data to produce energy optimization recommendations. These technologies are booming across industries, and many energy companies are following along.

Deloitte’s 2024 power and utilities industry outlook reports that these technologies will play an increased role in pattern recognition, data analytics, and forecasting. They will also help further automate tasks and improve power distribution based on local factors like load balancing and weather patterns.

Electrification of the transportation industry

The demand for reliable energy management will increase with the adoption of electric vehicles (EVs). While the electric car segment was fairly small, EVs accounted for 9% of sold cars in the first three quarters of 2023. As more people start using EVs, companies will need to ensure the grids are effectively managed to handle increased load without outages.

Blockchain for energy transactions

Blockchain is an immutable ledger that ensures transparency and security in energy trading transactions. Smart contracts—self-executing programs—automate energy trades, payments, and agreements. This technology allows businesses and individuals to trade without banks and clearinghouses.

Additionally, blockchain improves the system’s protection against cyberattacks. Its decentralized nature means there is no single point of failure, which makes it harder for cyberattacks to compromise the system.

Focus on sustainable energy sources

A growing number of US companies have committed to reducing carbon emissions by 80% by 2023. They aim to do that by doubling the renewable energy generation with wind and solar energy. The end target seems to be net-zero emissions by 2050.

These trends are driven by technology. To embrace them, companies must integrate solutions that support price tracking, automation, and predictive capabilities.

Technologies in Commercial Energy Management

Modern software helps companies monitor and optimize their operations more accurately. The following technologies are the foundation of commercial energy management systems:

  • IoT (Internet of Things) refers to a network of interconnected devices, such as sensors, smart meters, and cameras. These devices monitor energy generation, flow, and consumption.
  • Advanced analytics. Business intelligence and data analytics software processes raw data from IoT devices to help you understand energy consumption patterns. This helps you adjust your operations based on peak demand times, identify bottlenecks, or produce energy-saving strategies.
  • AI-driven automation. AI and ML algorithms use generated insight to make real-time adjustments. Examples include automated energy load balancing, predictive maintenance, and energy saving.

You can learn more about the top AI software solutions for the energy sector .

  • Energy storage systems. Batteries and other energy storage systems help accumulate excess energy for later use. They allow companies to balance supply with demand, especially for intermittent sources, and provide backup power in case of outages.

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Businesses that want to sky-rocket their energy management should know about the practical use cases of these technologies in commercial-based and smart management systems.

Energy management systems for commercial buildings

An energy management system is a computer-aided system for monitoring, controlling, and optimizing energy use in businesses, public organizations, and homes.

EMS typically consists of several key components, including sensors, meters, controllers, and software platforms:

  • Monitoring equipment. Sensors should monitor various parameters such as temperature, humidity, and occupancy. High-precision sensors detect inefficiencies, enabling timely interventions to optimize energy use.
  • Controllers. They regulate building systems like HVAC, lighting, and ventilation. They use data from sensors to adjust settings and maintain optimal conditions.
  • Information and communication technologies (ICT). ICT allows the exchange of data between devices and utility systems. Business-grade technology ensures seamless communication between components while encrypting the data in transit.
  • Software platforms. Web-based, desktop, and mobile apps grant access to the most crucial aspects of energy management.

Commercial building energy systems should integrate with your existing software and hardware infrastructure, supporting coordination between different systems.

Smart building energy management systems

Smart building EMS takes traditional systems a step further. They integrate sophisticated IoT devices and AI software to control energy in real-time. The key technologies powering these systems include:

  • Real-time monitoring capabilities. Smart panels and consumption monitors connect to a network of sensors showing how much power every circuit consumes. The data is collected continuously, allowing facility managers to make immediate adjustments.
  • Demand response programs. You can automate energy controls to automatically adjust lighting, cooling, and heating based on pre-defined settings and real-time data. For example, the system can dim lights in unoccupied areas or switch the power source from the grid to an on-site battery to reduce the strain during peak demand.
  • Predictive fault detection. Smart building systems use IoT sensors and AI algorithms to predict when equipment will likely fail or require maintenance. Additionally, fault detection capabilities can quickly identify energy wastage caused by malfunctioning assets.

However, advanced technologies alone do not guarantee effective energy management. It requires certain transformations in your processes and people, too.

Best Practices in Commercial Property Energy Management

Even the seemingly automated systems would be ineffective without organizational changes. Your employees and senior managers should consistently follow best practices.

  • Conduct energy audits. Inspect energy-generating and consuming systems and processes within your grids. Regular assessments inform businesses about energy performance and detect security vulnerabilities and inefficient processes.
  • Monitor and continuously improve. Energy management software that integrates with other building systems and analytical software can provide a centralized platform for all your energy operations. Use AI-based analytics, interactive dashboards, and customizable reports to provide actionable insights that can be used to adjust your practices for savings and efficiency.
  • Upgrade to energy-efficient assets. Companies reduce their energy and utility bills by adopting energy-saving installations. There’s no need to be dramatic; start gradually. For example, you can upgrade to resource-optimized LED lighting, HVAC systems, and programmable thermostats with automatically adjusting settings.
  • Integrate renewable energy sources. Solar panels, wind turbines, and geothermal systems reduce reliance on non-renewable energy and lower greenhouse gas emissions.
  • Utilize benchmarking and certification programs. Energy benchmarking involves comparing a building’s energy performance to similar commercial properties or established standards. You can use certification standards from LEED or ENERGY STAR as measurable goals for success.
  • Engage stakeholders in energy management. Successful energy management requires the effort of all stakeholders, including C-level managers, employees, and consumers. Organize awareness campaigns or, better yet, incentive programs that reward energy-saving behavior or implement green computing practices.

In addition to these practices, companies should enforce high-level policies.

Efficient Corporate Energy Management Strategies

Businesses should adopt approaches and policies that integrate energy management into their governance.

  • Set corporate energy reduction goals. Establish measurable, quantifiable, and time-bound energy management goals. These targets should be based on your historical data and realistic benchmarks. For example, the goal could be a certain level of LEED energy certification or a reduction of carbon emissions by 10% in four years. Companies should align their energy goals with broader business objectives, such as utility bill reduction or efficiency enhancements.
  • Develop an energy policy. The policy should outline guiding principles for energy use, procurement, and continuous improvement. To ensure compliance, it must align with industry standards and regulatory requirements. It’s crucial to regularly review the policies to reflect new technologies, practices, and business priorities.
  • Incorporate demand-side management (DSM). Companies should ease the load on the energy grid and reduce energy costs based on demand. DSM strategies can include load shifting, where energy-intensive processes are scheduled during off-peak hours. Predictive analytics can help automatically adjust energy consumption based on grid conditions and pricing signals.
  • Diversify to ensure a stable electricity supply. The security of your electricity supply becomes critical as you move towards renewable systems. Consider investing in diverse energy systems to account for different seasons and fluctuating demand. For example, fossil fuels combined with carbon capture and storage technologies can reduce environmental impacts while providing energy.
  • Invest in employee training. Training should cover the use of management software, compliance with regulations and corporate energy policies, energy-saving techniques, or green computing principles. It would help to cover a variety of training methods, including workshops, hands-on sessions, and e-learning materials.
  • Engage in partnerships. Collaborate with other energy providers, consultants, and academic institutions to stay informed about innovative technologies and the latest research. Industry collaborations can lead to joint initiatives, pilot projects, and knowledge exchange that will help you improve your energy management.

Planning is critical when adapting these strategies, practices, and software. One of the best ways to transform successfully is to work with an expert.

Adopt the Latest Commercial Energy Management Solutions

Robust business energy management with renewable energy sources can lower utility bills, reduce carbon emissions, and guarantee a stable power supply. Smart systems allow you to understand energy usage down to the circuit level, helping you identify inefficiencies and optimize consumption.

Efficient management requires both organizational-level strategies and A technologies. As an experienced software development company, Techstack can help with the latter. We can develop an MVP for your energy management solution, integrate IoT and IIoT into your systems, and much more.

To learn more about our solutions, contact us via a form on our website.