Smart Energy Management System: A Complete Guide

With this era of digitalization, energy use has increased, and it has been one of the major concerns. Resources are scarce, and electricity cost is rising, which has alarmed businesses and homeowners. It is high time for people to be aware of how to use energy efficiently. One of the best ways it can be done is to adopt a smart energy management system driven by IoT. It can help the users by offering the best techniques and tools that can be implemented to conserve energy.

Home and various business owners are adopting the idea of installing a smart energy management system. The market stats also prove the same: the global market size of these management systems is anticipated to reach $47.64 billion by 2029 at a CAGR of 15%.

The market is observed to be driven by the rising end-use of energy consumption across various industries. The increased awareness about carbon footprint management is also one of the driving factors of this market growth. (SOURCE)

  • The smart energy management market is anticipated to reach $47.64 billion by 2029 at a CAGR of 15%.

What Is Smart Energy Management System?

The IoT-driven management system is a smart process that includes planning and managing energy consumption patterns for various industries. Different businesses have different levels of consuming energy, so they need to hire IoT developers and get a customized version of the system that can be helpful in managing their energy consumption smartly.

The Internet of Things is capable of designing energy management for monitoring and optimizing energy compliances. It enhances the capacity to utilize energy by boosting productivity, making energy assets reliable, and reducing manpower. There are different types of smart energy. IoT based smart energy management system can be used for:

1. Home

With the advancing technologies, homes are also converting into smart homes. The owners are taking IoT’s help to lower their electricity bills and conserve energy resources. Several home appliances are being installed within the household, and all these are made to ensure that they save energy. From air conditioners to dishwashers, they have a system of saving energy by reducing overuse.

2. Business

Commercial buildings with fancy offices are also facing the challenges of saving energy. They are adopting the HVAC system, which is energy efficient. The IoT energy management system is being installed, and the buildings are also remodeled to have thicker windows along with proper insulation.

Benefits of Using IoT Based Energy Management System

The Internet of Things is driving multiple automation processes to enhance the operational efficiency of various industries. Businesses, governments, and consumers welcome its application in the energy sector. It is because there is rising demand for a smart energy management system in order to save resources.

You would be aware of that saying: “killing two birds with the same stone.” This smart system gives this phrase an example as the energy can be conserved, and it offers enhanced working abilities for different sectors consuming energy. Let us find out some major benefits that can be bagged by adopting this system:

1. Carbon Emission is Minimized

Carbon footprint is the major challenge that we are facing in this era. The increasing amount of greenhouse gases is not good for balancing out our mother nature. The increased demand for resources is also a rising concern. Therefore, the energy sector has to change and keep up with regulations aiming to reduce harmful emissions.

It is the reason why the smart energy management market is expanding. Companies are adopting IoT-driven technologies to install within their appliances. It enhances performance and also helps in reducing carbon emissions.

2. Reduction in Energy Spending

Another major perk offered by the energy management system driven by IoT is that it provides an economically beneficial solution. It is why governments and companies are exploring IoT-based ideas for energy efficiency. Real-time power usage can be monitored, and smart metering can be installed. These offer a data-driven approach that helps make wise decisions and control the investment and waste reduction for the energy panel.

3. Automates the Process

One of the significant reasons to hire IoT development services for designing a tailored version of the energy management system is that it helps in automating the process. With the IoT in the energy sector, the entire operational process can be re-designed in an automated way and optimizes labor costs. The Internet of Things offers a monitoring system; for instance, the producers can improve their maintenance operation and automate on-site asset management, saving costs.

4. Identifying and Preventing the Malfunctions

When using IoT, it offers a predictive algorithm that is beneficial for identifying the issues which may occur within operations. Even before the problem occurred, the monitoring staff had an idea about it, which saved time, and preventive actions could be taken. It protects the system from facing real damage by preventing it from happening.

5. Consumption can be Predicted

One of the major advantages offered by IoT energy management systems is that they can predict future energy consumption. If an energy management system is paired with machine learning algorithms and IoT data. In that case, a tool is developed that can predict the energy that will be consumed in the future.

It is a vital insight to have with this data, and companies can always come up with a strategy for their energy production. It can help the utilities to enhance their pricing models depending on the demands.

Also Read: Top IoT Solutions for Energy and Utilities

Reasons for Transforming the Energy Sector with IoT

Monitoring and benchmarking energy are vital for managing it, as it also helps identify the areas that need improvement. The decision-makers can always track the effects of their decisions taken for energy use. On the other hand, IoT represents the new reality and is also covering the energy sector.

Its real-time application can innovate the system by adding sensing and gateway connectivity devices. In simple words, we can say that IoT based energy management systems will drive the growth of the energy market efficiently in the future. But what makes IoT solutions the best pair for the energy sector? Let us explore the major concepts:

1. Offer Sustainability

IoT used within the energy sector offers assurance for smartly reducing environmental issues. The assets used within the energy management system are connected through IoT. It can also facilitate the automated process for maintenance, reporting, and measuring carbon consumption, help in generating renewable energy, and optimize the smart grids in real time.

Sustainability can be attained within the industrial world by following the smart techniques offered by IoT. The sensor devices are used within the process for a smart energy management system using IoT. Gateway connectivity for enhancing better communication within the system is also implemented using IoT. With the IoT within this system, energy conservation practices can be promoted, and businesses can expand simultaneously.

2. Resource Optimization and Process Monitoring

With the smart concepts of IoT technology, the excessive utilization of resources can be prevented, and the required consistency can also be maintained. Every detail of the plant process is converted in the form of data by using smart process monitoring via IoT.

These data can be used as relevant information by IoT processing and stored in the cloud platform. With the use of data, businesses can make the best decisions about improving the quality of the service and reducing waste. The sensor devices used within the power plants can add automation to the process and offer error-free enhanced services.

3. Data Management and Cost-Saving

Businesses hire IoT-based custom enterprise software development services to design the energy management system because it is cost-saving. IoT used within the energy sector offers enhancement in the process. These processes include energy management and planning consumption patterns. The business owners can take control over the data related to the energy and optimize the process as per their needs.

The IoT-powered solutions use the sensor-based approach for establishing automation within the functioning of this system. It helps handle real-time data and store it safely on the cloud platform. Thus, an effective data management system can be bagged through this technology. This smart solution can be customized according to the requirements and pocket-friendly budget.

4. Offers Advanced Analytics

IoT-driven sensor-based functionality within the energy sector is leading a revolutionary change. Advanced techniques are used to fulfill the requirements of businesses. Different industries are using advanced analytics techniques to enhance their product quality. The data analytics used within the energy sector can help optimize the generation and plan it accordingly. The data extracted from the assets can be used further to make better decisions.

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Features of Smart Energy Management System Using IoT

Every organization uses energy in different ways as per their requirement. It is the reason they need to hire IoT developers to bag a customized version of the energy management system suiting their business. The system can be integrated with different IoT tools for smooth functioning. But there have to be certain features present within the system, and the major ones are:

1. Verifying and Measuring Energy Consumption

It is very important that the energy management system designed for your business must have the capability of measuring energy consumption. This feature allows you to measure energy consumption and verify the same. Gathering information about the consumed energy against your saving goals is vital, and this feature will offer you the same.

2. Defined Energy Goals

Before beginning any process, it is always vital to define the goals it will be serving. Similarly, the smart energy management system that you implement should collaborate with the goals you have. The feature of defining energy goals will feed the data about the energy related to the process to the IoT-driven smart system. Thus, a customizable plan can be offered via the system that meets your objective.

3. Set the Energy KPIs

Setting targets to measure the progress as per the strategic objective is an essential requirement of every organization. The companies have different KPIs and also have multiple metrics to judge the targets. The IoT-driven-energy management system is entire data that is relevant to the energy-related KPIs. With this feature, you can easily set energy-related KPIs and, later on, measure and generate the report through an automated process.

4. Creating Detailed Reports Automatically

As we mentioned earlier, the evaluation of the KPIs is very significant for any business to grow. If your company has any energy-driven process, the KPIs reports need critical information such as financial data, consumption, emissions, verification of savings, etc. These data can be offered to you in a detailed way that too through the automated process using this feature with your IoT energy management system.

5. Setting Timelines and Objectives

Another vital feature helps you to set the timelines along with the objectives. The smart management system designed for handling the energy can evaluate the trends and offer a data-driven sight for your project. This data can be used to set your project timelines by aligning trends with your goals or objectives.

Applications of IoT based Smart Energy Management System

After reading about the benefits, features, and other vital aspects of an IoT-based smart energy management system, it is essential to learn about its application. Here we have jotted down a few major applications to show you the enhancement IoT is adding to the energy sector and the businesses connected to them.

1. Smart Homes

IoT-driven tools can be applied to convert your home into a smart home. It helps to save energy by tracking the rooms when they are being used. This data helps the system automatically set the temperature of the room being utilized. If you are, the appliances can shut the appliances using energy.

2. Smart Buildings

The building can be made smart by making them save energy and use it in a controlled way. The smart energy management system is integrated within the building and can help achieve energy efficiency. The tools such as renewable energy integration, smart sensors, and others are used to make the building smart. It leads to improved environmental conditions and reduces the wastage of energy.

3. Electric Vehicle Charging

The IoT is being used in different industries and is also integrated into the system of electric vehicles. One of the major reasons to introduce EVs is to save the environment from pollution-related issues. But charging the electronic vehicle takes lots of power. The grid can be strained if a large number of EVs are charged together. Adding IoT within the charging stations can monitor the power consumed. It can generate reports and help plan the charging timelines as per the power availability within the station.

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Conclusion

This blog would have given you a clear idea of how vital IoT is for business growth. The concept of energy management has become one of the growing components of business strategies. Companies are surveying their energy profiles and identifying opportunities for decarbonization, resilience, and cost reduction. It is the reason that is increasing the adoption of the smart energy management system. It is indeed wise if you want to implement this system within your business, as it can enhance your services. All you need to do is hire the best IoT developers for your project, and half of your work is done there.

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Apoorv Gehlot

Founder & Board Member at Matellio — Technology enthusiast with enterprise solution design & development expertise