Energy Management: Unlocking Cost Reduction and Environmental Impact Mitigation in Asset Management. Explore the Six Key Benefits of Effective Energy Management.
To ensure economic savings related to energy consumption while also addressing the environmental impact of our assets, efficient energy management planning is crucial today.
The complexity of this phase in facility management is undoubtedly linked to the complexity of the project itself. But fortunately, there are specific energy management software solutions available to handle energy consumption. And to centralize all the data in a single solution for predictive activities.
Let’s now explore the six main advantages of energy management for an asset.
6 main advantages of energy management for assets
We know that energy management for an asset, also known as facility energy management, refers to a systematic and proactive approach to energy efficiency guided by energy data analysis and monitoring. Energy management is the key to reducing energy consumption, costs, and improving the energy efficiency of the asset.
It is easy to imagine that the benefits of such an approach to energy management are significant. Here are the six main benefits resulting from the implementation of an efficient energy management plan:
- Reduce operating costs: The most evident of all advantages is the reduction of costs by monitoring and optimizing energy used for lighting, heating, cooling, ventilation, etc. Data collection and analysis enable energy managers to predict and reduce energy consumption and budget more effectively.
- Enhance overall well-being and productivity: The importance of living, working, or simply using a space that is well-lit, well-ventilated, and climate-controlled is often underestimated. Efficient energy management combines all these aspects with energy efficiency and cost reduction.
- Optimize expenses: An efficient energy management system allows for waste reduction and, in turn, reduces operational energy costs. This frees up more funds to allocate in other areas.
- Build a positive brand image: Nowadays, one of the corporate environmental goals is to reduce carbon footprint. By optimizing energy consumption and minimizing waste, companies have a better chance of achieving this goal. It improves the company’s image and relationships with customers, partners, and potential investors.
- Increase property value: High energy efficiency of the asset undoubtedly increases its value and potential for profit in case of sale. This applies to both residential and commercial properties. A good energy management plan also reduces repair and energy management costs.
- Maximize ROI (Return on Investment): When purchasing an asset, appliance, or system, one expects its efficiency to guarantee a return on investment (ROI). However, factors such as wear and tear, lack of maintenance, or energy loss can have a negative effect on ROI. With proper energy management, it is possible to regulate power transmission, identify energy losses, reduce power during peak hours, and implement other measures that extend the lifespan of equipment and increase ROI.
The consequences of poor energy management of an asset
When the energy management of an asset is not well-planned and lacks the right tools and facility management software support, problems and inconveniences arise, such as:
- Decentralized and difficult-to-collect energy data;
- Excessive time and energy spent on manual reading of consumption;
- Lack of visibility into the relationship between energy consumption and costs;
- Excessive energy consumption due to unidentified inefficiencies in equipment and devices;
- Lack of an adequate notification system to alert staff for timely intervention;
- Lack of performance monitoring system;
- Unavailability of high-frequency data, analytical tools, and historical data to understand and resolve inefficiency issues.
In general, there is a lack of connection between the data that can be collected. Which affects energy efficiency, operational efficiency, performance of individual equipment, and manual energy balance.
How to enhance facility energy management.
Now that we have established the importance of implementing efficient energy management of an asset. It is worth considering how to enhance energy management and the tools to use. Let’s try to answer this question by listing a series of elements to take into consideration:
- Create a planned preventive maintenance strategy: Preventive maintenance on devices such as HVAC units, air handling units, and windows can help identify any energy leaks. Regular checks can determine the frequency of maintenance activities or replacements;
- Increase visibility with CMMS reporting: A computerized maintenance management system (CMMS) solution can monitor equipment maintenance, contracts, scheduled preventive maintenance, etc. This allows facility energy managers to use the collected data to understand where energy improvements can be made;
- Incorporate remote monitoring into the energy management plan: Integration with remote control and remote reading systems allows for complete and fast control over energy consumption and inefficiencies.
It is clear that in order to quickly achieve environmental goals and achieve economic savings in relation to energy consumption, implementing the energy management phase in a smart manner. Hence using the appropriate software for asset energy management. One that allows for the rapid quantification of energy waste and identification of the best solutions. Therefore, I recommend implementing it into your workflow and starting off by requesting a free presentation!