Ben Brading 6 min read

Energy Management Systems (EMS) for businesses

An Energy Management System (EMS) monitors, controls, and optimises energy consumption at a commercial property to reduce energy costs and carbon emissions.

This guide explains what an EMS is, how it works, and which businesses benefit most, helping you decide if it is a good investment for your company.

Here are the key parts of our guide to Energy Management Systems:

How an Energy Management System works
Key components of an Energy Management System
The benefits of commercial Energy Management Systems
Identifying if your business needs an Energy Management System
Implementing an Energy Management System
Types of Energy Management Systems

How an Energy Management System works

An Energy Management System optimises how businesses use power to reduce business electricity bills and cut carbon emissions.

This section explains the six ways in which an EMS improves energy efficiency.

Monitoring

All EMS systems include business energy monitoring software to measure power consumption at a property.

EMS software receives automatic meter reading data from all smart business energy meters, half-hourly meters, and sub-meters at a commercial property.

Live energy monitoring provides real-time analytics and visualisation of energy management performance, helping to identify inefficiencies and optimise business operations.

Time of use optimisation

An EMS can optimise the timing of energy consumption to take advantage of multi-rate business energy tariffs.

It strategically uses energy storage solutions, such as solar batteries, to draw energy from the grid during cheap off-peak periods for use during later peak periods.

An EMS analyses past consumption data to plan energy usage and schedule energy-intensive operations, such as data backups or the use of heavy machinery, at optimal times.

Optimisation of generated power

Commercial properties with renewable energy generation have an intermittent source of power, with output dependent on weather conditions.

An EMS employs a smart algorithm to determine how to use this power most effectively.

Commercial operations will use generated power directly during peak periods to avoid expensive peak business electricity prices. Whereas, during off-peak periods, generated power will be stored for future peak periods.

If an EMS detects that energy storage is fully utilised, the system exports excess generated electricity back to the grid under the Smart Export Guarantee scheme.

Maximum demand optimisation

Businesses with half-hourly meters pay excess demand charges when peak power demand exceeds the Maximum Import Capacity agreed with their local distribution network operator.

An Energy Management System helps your business avoid excess demand charges by shifting the timing of non-essential processes and utilising energy storage.

Find out more in our full guide to maximum demand charges.

Device controls

An Energy Management System can provide remote and automatic control of energy-intensive devices or systems. Typical examples include air conditioning, heating, lighting, and industrial equipment.

The EMS optimises the energy usage of these systems by using feedback from IoT sensors, such as motion, lighting, or temperature sensors.

Demand flexibility incentives

An Energy Management System is a valuable tool for taking advantage of the demand flexibility scheme.

The demand flexibility scheme provides financial rewards for reducing power demand when requested by the national grid.

An EMS allows businesses to control non-critical activities and utilise energy storage to minimise power consumption during demand flexibility events.

Key components of an Energy Management System

To understand how an Energy Management System works, here is a summary of the four key components of the system.

Sensors and meters

The decision engine of an EMS relies on collecting real-time data from the following sensors:

Smart meters: Measure the import and export of electricity from the mains and power generated from solar panels.
Submeters: Track energy usage for specific areas, processes, or equipment.
State of charge sensors: Monitor the remaining capacity of energy storage devices, such as solar batteries.
Environmental sensors: Monitor temperature, humidity, occupancy, and other factors influencing energy use.

Communication network

An EMS relies on a Local Area Network to facilitate the connection between sensors, meters, control devices, and the central EMS platform.

A mesh network of broadband routers is typically used to connect all devices on a single wireless network.

EMS software platform

An EMS typically uses a centralised software platform to process data, provide insights, and facilitate control.

Modern EMS software platforms are usually cloud-based, analysing data off-site via a broadband connection.

Control devices

Control devices enable an EMS to manage electricity usage and flow within a commercial property. The control provided by an EMS is achieved using:

Power Control Units: Direct power flow between renewables, energy storage, and a business electricity connection.
Smart Plugs and Switches: Control individual devices remotely.

The benefits of commercial Energy Management Systems

An Energy Management System significantly improves the energy efficiency of commercial properties that use energy-intensive equipment or have invested in renewable energy generation.

Improved energy efficiency provides two key benefits for businesses that choose to invest in an EMS.

Reducing energy costs

There are several ways the functionality of an EMS directly reduces charges on a business electricity bill:

Improves the efficiency of energy consumption.
Optimises the timing of consumption to take advantage of off-peak periods.
Eliminates excess demand charges.
Maximises the utility of generated renewable energy.

💡 At Business Energy Deals, we specialise in helping businesses reduce their energy costs. Compare business electricity prices today to see how much you can save.

Improved sustainability

Electricity generation on the national grid still relies on gas power stations, which create a significant carbon footprint for mains electricity.

A carefully configured EMS ensures your business operates at peak efficiency, eliminating unnecessary power consumption.

An EMS also helps your business shift energy consumption to off-peak periods, reducing the carbon-intensive balancing activities required by the grid.

Identifying if your business needs an Energy Management System

For small businesses in Britain, the cost and time required to install an EMS may not significantly improve energy efficiency. Instead, we recommend reading our list of business energy efficiency tips for cheaper and more immediate solutions.

This section presents key questions to help you determine whether your business could benefit from an EMS.

What is the size of your energy bill?

If energy costs represent a significant portion of your operating expenses, an EMS can likely help reduce them.

💡If energy costs are smaller, our business energy comparison service will provide a quicker solution for reducing your bills.

Do you operate energy-intensive equipment?

If your business uses energy-intensive equipment, such as air conditioning, refrigeration, machinery, or production lines, you are more likely to benefit from the control that an EMS offers.

Do you have multiple energy sources?

If you use renewable energy, energy storage, or backup generators, an EMS can help coordinate these sources effectively.

Do you have a half-hourly meter?

Businesses with half-hourly electricity meters pay complex, demand-based charges that can be optimised using an EMS.

Are you required to report on energy usage or emissions?

An EMS simplifies tracking and reporting for sustainability programmes or regulations, which is beneficial for businesses that need to comply with Streamlined Energy and Carbon Reporting (SECR) or the Energy Savings Opportunities Scheme (ESOS).

Implementing an Energy Management System

Implementing an EMS is a significant investment involving the purchase of hardware, labour, and software licences.

The time and cost required for implementation depend on the size and complexity of power consumption.

To help you understand what is involved, we have summarised the four key steps required for implementing an EMS.

Step 1: Energy audit

In the UK, there are several EMS platform providers to choose from, designed for different business types and sizes.

The best way to select an EMS platform is to understand the energy-intensive processes and equipment used by your organisation.

We recommend conducting an energy audit to gain this understanding. Visit our business energy audit page for a free checklist to guide you through the process.

Step 2: Hardware installation

Install control devices, sensors and meters around your site.

These hardware devices enable the EMS to monitor energy consumption and manage power usage across the site.

Step 3: Connect to EMS platform

Connect sensors, meters, and control devices to your local area network using wireless or Ethernet cables.

Most EMS solutions are cloud-based, so they connect to your devices using a fibre optic business broadband connection.

Step 4: EMS configuration

Configure the EMS to meet the requirements of your commercial property, including:

Automation Rules: Schedule equipment the EMS controls, such as lighting, heating, and air conditioning.
Import Capacity: Set the maximum import capacity for each power connection (MPANs).
Multi-Rate Tariff: Define peak and off-peak timings as agreed with your business energy suppliers.
Automated Alerts: Establish consumption thresholds for automatic alerts.

Types of Energy Management Systems

Above, we have described the general functions of energy management systems that apply to most business types.

EMS providers offer bespoke systems designed for individual industries. Here’s a summary of common examples:

EMS System Type	Acronym	Purpose
Building Energy Management System	BEMS	Optimises energy use in buildings by controlling HVAC, lighting, and other systems.
Industrial Energy Management System	IEMS	Manages and reduces energy consumption in industrial processes and manufacturing facilities.
Home Energy Management System	HEMS	Manages residential energy use, integrating smart devices and renewable energy sources.
Renewable Energy Management System	REMS	Optimises the generation, storage, and use of renewable energy sources like solar and wind.
Enterprise Energy Management System	EEMS	Centralises energy management across multiple facilities or sites in an organisation.
Agricultural Energy Management System	AEMS	Manages energy use in agriculture, such as irrigation, greenhouse climate control, and machinery.
Campus Energy Management System	CEMS	Manages energy use across university or corporate campuses, integrating renewables and smart tech.