What Is an Energy Management System (EMS) and Why Do You Need One?

As businesses look to reduce operating costs, limit their environmental impact, and improve their energy efficiency, many facility managers are turning to clean onsite energy solutions like solar, battery energy storage, and electric vehicle charging. But there’s a key piece of technology that should be installed in conjunction with these types of assets to maximize financial returns: an energy management system (EMS). Here’s a primer on what an EMS does, why it’s important, and what to look for when considering one for your facility.

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What Does an Energy Management System Do?

An intelligent energy management system is a collection of computer-aided tools that monitor, control, and optimize the performance of Distributed Energy Resources (DERs), which are technologies that generate, store, and/or dispatch energy where it is consumed. Common DERs include solar photovoltaic (PV) arrays, battery energy storage systems (BESS), and electric vehicle (EV) charging stations.

Energy management systems have both hardware and software components. At the heart of an EMS is the energy management system controller. Physically installed on site, the EMS controller is a device that maintains communication with the DERs and collects real-time data on their operation. Data is fed into cloud-based software, which processes information in real time and continually optimizes the DERs based on how much energy is being generated and consumed at the facility. Historical data is also stored in the cloud and made available for reporting purposes.  

Key Functionality of an EMS

An EMS controls and optimizes DERs to maximize renewable energy production, utilization, and savings. For example, energy management software coordinates the storage of surplus solar energy during the day to power building loads in the early evening hours, when utilities tend to charge the most for electricity due to increased customer demand on the grid. By using stored energy in this way — a cost-saving strategy called time-of-use arbitrage — a business is able to shave its monthly energy bills while also easing its reliance on harmful fossil fuels, reducing its carbon footprint, and improving energy efficiency.

Why You Need an EMS

In addition to curbing a company’s carbon emissions, clean energy assets like solar and energy storage systems can reduce operating costs. By strategically using electricity that’s generated and stored on site, facilities can limit utility energy consumption and monthly charges. However, these financial benefits can only be fully realized if all onsite assets are working together as efficiently as possible. This is where an effective energy management system comes in.

What to Look for in an EMS: Adaptive Intelligence

One of the most important things to keep in mind when considering an energy management system for your property is how your energy needs are likely to evolve over time. You may only have a few rooftop solar arrays now, but what happens when you want to install a storage system or EV charging stations in the future, or layer on microgrid infrastructure to increase your resiliency against utility disruptions? That’s why choosing an intelligent EMS that is built for scalability and can adapt to changes is critical for the optimization of all your onsite energy assets and facility consumption.  Transparency is also key — robust system data is only as useful as it is accessible.

At PowerFlex, we take a holistic approach to energy management with PowerFlex X™ — our adaptive energy management platform that provides real-time insights and intelligent control of all your Distributed Energy Resources.

(Learn More: What Is Intelligent Energy Management?)

The Advantages of Adaptive Intelligent Energy Management

What differentiates PowerFlex X from typical energy management systems is how it adds another layer to the decision-making process. By utilizing patented algorithms, the intelligent EMS can comb through large datasets of information to find unique insights. 

Essentially, it will notice certain patterns in data, and use that information to make smarter, data-backed decisions to improve overall operational efficiency. The added bonus is that PowerFlex X is constantly learning and adapting, making as-needed adjustments as more data is added and analyzed. PowerFlex X can also work autonomously, saving you time in the long run. And without the need for manual adjustments, it can reduce the risk of human error.

(Related: How Your Team Can Get Started With (and Benefit From) Intelligent Energy Management)

Customer Application of EMS 

An EMS optimizes energy usage and generation at a site. Customers of all kinds can leverage an EMS to enhance operational efficiency, lower electricity costs, reduce emissions, and more.

For example, an EMS allows a distribution warehouse  to monitor power loads throughout the building — including lighting, HVAC systems, and appliances — to identify energy usage patterns, inefficiencies, and the most expensive electricity draws. The EMS then uses this data to modify the energy usage in real time. For instance, when there are fewer people in the warehouse, it might dim the lighting or utilize other cost-saving measures such as motion sensors. It may also optimize the HVAC system, reducing the heat or air conditioning after business hours.

An EMS will also coordinate and optimize the operation of solar arrays, electric vehicle chargers, energy storage, and other clean energy assets that may be installed on site — maximizing the use of renewable energy to power loads and enabling additional energy cost saving strategies.

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