What it is and how this type of battery storage works.
What are energy management systems in companies and how do they work?
What is an energy management system (EMS)?
Energy efficiency Photovoltaic self-consumption Energy storage
Energy management systems (EMS) help organisations understand their energy use and optimise it through policies and action plans with clear and measurable objectives over time. Applying this methodology saves energy, and money, but above all it brings companies closer to achieving their sustainability goals by making energy use more efficient.
Making the best use of available resources brings enormous benefits and savings for organisations of all types and sizes. From a family home to a large company with thousands of employees, if everyone follows a plan to turn off the lights when they’re not being used or unplug appliances when they’re not being used, they’re already contributing to a more responsible use of electricity. This is just a small part of what an energy management system could include.
EMSs are tools available to businesses (and individuals) to make energy consumption more efficient. Through systems such as the Deming cycle, also known as PDCA (Plan, Do, Check, Act), based on continuous improvement, action protocols can be established whose results are measured and analysed within a set period of time. They are evaluated based on their performance to launch new actions that improve them, committing to an action plan that seeks to set increasingly ambitious goals and strategies to achieve them.
Stages of the Deming cycle
1 Plan
To begin planning, clearly identify the problem or area for improvement that you want to work on and the goals you want to achieve. Then you can draw up an action plan to get there.
2 Do
The time to act. The plan must contain specific and measurable actions so that its effectiveness can be monitored. And the entire company needs to be committed to its execution.
3 Check
It’s time to review the results and compare them with both the starting point and the objectives to verify effectiveness.
4 Act
To improve the plan and continue the continuous improvement cycle, this is the time to make decisions based on the data obtained during verification.
SEE INFOGRAPHIC: Stages of the Deming cycle [PDF]
An EMS, then, is a set of strategies that use different technologies together with individual action to obtain results focused on optimising the company's energy resources.
Benefits of energy management systems for companies
For any company, having an energy management system should be just as important as any other plan for optimising its resources or assets. By doing so, not only will they be taking another step towards becoming a more sustainable organisation, but they will also achieve direct and tangible benefits.
Cost savings
Areas for improvement can be identified by focusing on energy management, which, once the plan has been implemented, result in savings on electricity and/or gas bills. This reduces energy expenditure and frees up budget for other departments or projects.
Greater sustainability
Using the company's energy resources more efficiently is synonymous with a more sustainable company. Through cost reduction policies or technologies that optimise energy consumption or energy storage systems, you can reduce direct consumption and with it CO2 emissions.
Improved company image
Working with sustainable companies that share your values carries significant weight in the business world. Implementing systems that help save energy and be more sustainable can have an impact on brand perception and your ability to generate new business.
More competitive companies
Saving on operating costs through energy efficiency strategies can have an impact on your bottom line by lowering your production costs, leaving more margins for the company.
Longer equipment life
Energy management systems usually include plans to care for and use all types of equipment more efficiently. Turning off equipment when not in use or having a regular maintenance plan can help extend the life of many of your appliances and machinery.
Access to grants and subsidies
Often governments offer grants to promote energy efficiency. Working towards more responsible energy consumption in a company can make that business eligible for these grants to continue its work.
Technological development
Understanding the energy challenges facing a company can stimulate innovation and the development of technology that enables them to consume energy more sustainably. This drives the entire business ecosystem dedicated to energy R&D&I.
Types of advanced technologies for use in an EMS
When working on an energy management system, you need to incorporate the right technologies to achieve the objectives you have set. With these technologies, any organisation will be able to obtain more accurate data on its consumption, automate or optimise the most problematic areas and make much more informed decisions to ensure its plan’s success.
Automation tools
Something as simple as a programmed thermostat is already a kind of automation. Opting for systems that adjust to pre-established needs can lead to major energy savings. A clear and easy-to-apply example is air conditioning.
Smart sensors and meters
These are used to capture real-time information, providing valuable insights into the energy needs of different spaces and systems. And that facilitates data-driven decision-making.
Internet of Things (IoT)
IoT devices, with the ability to connect to one or more systems, transmit data and be configured remotely, are a very useful tool in any energy management system.
Big data
Capturing, storing and processing large volumes of information can be daunting, but it is vitally important. Properly working with a company's big data makes smarter energy management possible.
Artificial intelligence (AI) and machine learning
Artificial intelligence allows large amounts of data to be processed quickly and efficiently. This makes it possible to extract highly useful information, such as pattern detection, which can be used to predict demand and automatically optimise energy consumption. Machine learning makes these adjustments increasingly accurate and tailored.
SCADA system
SCADA systems — an acronym for Supervisory Control and Data Acquisition — are a solution that combines hard and software to carry out real-time monitoring, control and data acquisition in industrial infrastructures. They are composed of: sensors and actuators; remote terminal units (RTUs) and programmable logic controllers (PLCs) that act as microprocessors; human–machine interfaces for displaying data and managing processes; and servers for storing all the information.
Energy Management System (EMS)
This is software that combines IoT devices, big data and AI to collect and process data and turn it into high-value information. In this way, the EMS creates a smart, connected system that seeks to optimise energy use.
Smart grids
A smart grid incorporates communication and information technologies into the electricity grid to measure and control the electricity supply. This translates into more efficient control of the energy supplied, leading to efficiency improvements and cost savings for the organisations that adopt them.
Microgrids
Microgrids function as small-scale, localised electricity supply networks. They allow companies to store and manage their own energy, operating autonomously or connected to the electricity grid. They provide greater energy resilience in the event of unforeseen circumstances, savings in energy costs thanks to the integration of renewable energies for self-consumption, and fewer emissions.
Applying ISO 50001 Certification in EMS
The ISO 50001 standard has become a benchmark for any organisation wishing to successfully implement an energy management system.
It is based on a series of structured recommendations centred on a continuous improvement methodology, which requires a constant and conscious effort on the part of companies who want to implement the standard. Among the benefits of its use are proactive care for the environment by applying sustainability policies and the resulting monetary savings through optimising energy consumption.
How can you certify an energy management system?
There’s no obligation to certify an energy management system, however, following the framework set out by a standard, such as ISO 50001, provides clear guidance on the steps to follow. With this model, the process is clearer and makes it easier to implement within the organisation.
The methodology on which ISO 50001 is based is the Deming cycle, which aims for constant analysis to enable the plan created to be continuously improved. To obtain certification, valid for three years, leadership at all levels of the company, from senior management to those in positions of lesser responsibility, and commitment are key.
Here are the steps to follow when applying for certification:
SEE INFOGRAPHIC: Steps outlined in ISO 50001 [PDF]
Once the plan has been drawn up, it is time to apply for certification. This has to be done through certifiers and auditors unrelated to ISO who will assess the suitability of the system implemented through a series of audits.
After that, the entity will declare whether there are any non-conformities in the plan and propose corrective actions that must be carried out to qualify for ISO 50001. Once the non-conformities have been resolved, the system will be certified and will be monitored periodically during the three years this official certification is valid.
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What is energy storage
Key aspects of current technologies and why they are so necessary.
Challenges and objectives for technological integration
The incorporation of new systems and technologies is always a challenge for any organisation. There is the learning curve for everyone involved and the degree of acceptance of the new processes and there are the costs associated with implementing complex technological solutions and integrating them into the work system.
Added to these challenges is the compatibility between the different technologies (SCADA, EMS, IoT, etc.) that must work in perfect harmony for the plan laid out to be successful. That means that the compatibility of the hardware and software to be used needs to be studied closely before implementing the proposed solutions.
When implementing any energy management system, it is also important to consider how it will integrate with other systems and operational plans within the company. For example, when a new technology stack is introduced into the company that will contain sensitive information about that company, it must be perfectly aligned with security and cybersecurity plans to prevent unauthorised access and data theft by third parties.
The choice of technology is closely linked to the objectives set and the starting point of each company. Some of the elements that a good energy management system should include are:
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Interoperability between different systems. Technological compatibility between the technologies currently in use and those to be added as part of the plan is essential to its success.
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Operational sustainability of changes. For this system to be successfully integrated into the company, it must maintain or improve current operations, looking for the proper development of the business in the medium and long term. It’s not about creating one-off solutions, it’s about createing solutions that are sustainable over time.
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Energy efficiency. Committing to renewable energies and a self-consumption system, reducing regular expenditure and using modern, low-consumption appliances as far as possible must be a priority in any EMS.
Energy management systems at Iberdrola: case studies
At Iberdrola, we choose SCADA systems for our operations to create effective energy management systems. They’re used to operate our four Renewable Energy Operation Centres (CORE) and hydroelectric power stations (we have the COHI in Spain). Through our subsidiary in the United Kingdom, ScottishPower Renewables, Iberdrola's Remote Control Centre (RCC) (Whitelee) monitors the operation of offshore and onshore wind farms in the area in real time, where they work to keep them operational 97% of the time thanks to the volume of information they work with.
Our operation centre in Vancouver, the National Control Centre, the Renewables Operation Centre in Spain located in Toledo and the Renewables Operation Centre in Brazil located in Rio de Janeiro also work using this system.
We have also implemented the INGECON HYDRO Manager in our mini-hydraulic power plants in Spain. This platform, developed by Ingeteam, is based on the Ingesys IT SCADA system and allows data from these hydroelectric platforms to be supervised, controlled and acquired, with the constant aim of improving their operability and efficiency.
But this is not the only technology we are committed to in our EMSs. Microgrids are a resource that provides access to renewable energy in areas where installing the usual infrastructure is a major challenge. That way, we guarantee constant access to sustainable energy in less developed areas. One example of this is the 'Electricity for All' project, thanks to which we will inaugurate Brazil's first fully sustainable microgrid in 2023, developed by our subsidiary in the country, Neoenergía. Through this project, we will ensure the efficient supply and storage of power to the community of Xique-Xique, located in the municipality of Remanso (in Bahia).