Energy management involves taking a proactive and systematic approach to monitor, control and optimise an organisation’s energy consumption.
Here, we take a deeper look at what energy management is and the four key steps involved – from tracking your consumption, to building an energy management plan.
What is energy management?
In a nutshell, energy management is about finding ways to measure and then reduce your organisation’s energy. Why? Because by learning how to manage your energy consumption effectively, you can unlock a range of commercial benefits. These include:
- Achieving cost-savings by conserving your consumption
- Keeping your business resilient against fluctuating energy prices
- Enhancing your brand reputation through sustainable practices
- Effective energy management is a no-brainer for organisations today. When it comes to managing your energy, here are four crucial steps to optimise your performance and increase your operational savings:
- 1. Measure and track energy consumption
- 2. Conduct an energy audit
- 3. Develop an energy management plan
Implement cost-saving practices
1. Measure and track energy consumption
You can’t manage what you don’t measure. Measuring and monitoring your energy consumption throughout your organisation’s operations will help identify areas of improvement.
The easiest way to measure energy usage is through an electric or gas meter. You can then use the data collected from meters to make a comparative analysis of energy use over a specific period. Monitoring energy consumption enables your business to identify peaks and drops that can highlight potential opportunities for energy efficiency.
For example, sudden peaks in energy usage could indicate potential faults in appliances or equipment. Also, it can help you measure the effectiveness of any energy changes, such as installing solar panels, improving insulation or switching suppliers.
You might also enjoy: How to Measure the Carbon Impact of Working from Home
2. Conduct an energy audit
The next stage of a robust energy management strategy is to conduct an energy audit. A comprehensive energy audit will provide a detailed picture of your current energy consumption and identify opportunities for savings.
Large organisations are required to undertake mandatory energy audits through the Energy Saving Opportunity Scheme, a UK scheme to help organisations identify cost-effective energy efficiency measures.
Energy audits enable organisations to achieve cost savings by improving their energy performance and efficiency. An energy audit involves auditors identifying opportunities for better efficiency and energy reduction.
Auditors calculate your organisation’s total energy consumption, identify areas of significant energy use and evaluate areas for improvement; this is then reported back to your organisation.
Not sure whether you need to comply with ESOS? We’ve created a range of resources to help you understand these reporting standards further:
- Everything you need to know about ESOS compliance
- Complying with ESOS Phase 3
Planet Mark’s experienced team of ESOS auditors helps organisations phase out operational inefficiencies and feed audit outcomes into credible net zero actions through their comprehensive audits. Visit our ESOS page to find out more about our auditors.
3. Develop an energy management plan
Once you have conducted an energy audit, your organisation can take the findings to build an energy management plan. An energy management plan provides a clear roadmap of how your organisation will improve efficiency across all of the buildings in your portfolio, including offices, warehouses and other types of premises.
An effective energy management plan will incorporate a strategy that addresses how to reduce energy consumption over time. This might include a process for improving or phasing out energy inefficiencies and an approach to managing energy usage and costs moving forward.
4. Implement cost-saving practices
Once you have finalised your energy management plan, a collaboration between your internal departments should ensure that all teams across your organisation play their part in implementing energy-saving measures.
Sustainability champions or a green team are integral to ensuring teams are supporting your organisation’s energy management plan. For example, sustainability champions can communicate best practices for energy usage in the office, such as switching off lights when leaving a meeting room, and setting departmental targets for energy reduction.
In addition, you may consider switching to renewable energy to further long-term cost savings – this could enable you to generate onsite electricity. Alongside cost savings, renewable energy can provide several benefits to your organisation.
Read more here: The Business Case for Renewable Energy
Get started with our energy management toolkit
Effective energy management opens the door to improved energy performance and cost savings. Getting your energy management strategy right can help your business improve operational inefficiencies and efficiently steer energy performance.
To help you get started, we’ve developed a free Energy Measurement and Reduction Toolkit. Download your toolkit today to start implementing practical tips for reducing your energy use and managing your climate impact.
