Energy management is the process of optimizing the use of energy resources within an organization with the goal of reducing costs, improving efficiency, and minimizing environmental impact. To achieve these objectives, energy managers need to measure and monitor the performance of their energy systems and processes and identify areas with potential for improvement. Key Performance Indicators (KPIs) come into play here – quantifiable measures that help track progress and evaluate outcomes. But what are the most effective KPIs for tracking energy management objectives?
In this article, we will explore some of the most common and best practices for selecting and using energy KPIs and how they can help you optimize your energy performance.
Energy Intensity
One of the most common and widely used energy KPIs is energy intensity, which measures the amount of energy consumed per unit of production or activity. Energy intensity can be scaled at different levels of analysis, such as buildings, processes, products, or services. For example, you can measure the energy intensity of an office building by dividing the total energy consumption by the floor area, or the energy intensity of a manufacturing process by dividing the total energy consumption by the number of units produced. Energy intensity can help you compare the energy efficiency of different facilities, processes, or products and identify improvement opportunities. By reducing energy intensity, you can lower costs and emissions, and increase productivity and competitiveness.
Energy Savings through Energy Management
Another common and important energy KPI is related to energy savings, which measures the amount of energy saved because of implementing energy efficiency measures or projects. Energy savings can be calculated by comparing the actual or estimated energy consumption after implementation with the reference energy consumption before implementation, considering any changes in production or activity levels. Energy savings can help you quantify the benefits and impact of energy efficiency actions and justify your investments and resources.
Cost Savings with Energy
Similarly important is an energy KPI that measures cost savings related to energy, which quantifies the amount of money saved because of implementing energy efficiency measures or projects. Cost savings with energy can be calculated by multiplying energy savings by the unit price of energy or by comparing actual or estimated energy bills after implementation with reference energy bills before implementation. Cost savings with energy can help you assess the financial viability and profitability of energy efficiency actions and allocate your budget and resources accordingly. By tracking energy savings, you can optimize energy expenditures and improve profitability.
Energy Performance Index
A more advanced and comprehensive energy KPI is the Energy Performance Index (EPI), which measures the ratio between actual energy consumption and estimated or target energy consumption for a specific period. EPI can be applied at various levels of analysis, such as buildings, processes, products, or services. For example, you can calculate the EPI of an office building by dividing the actual energy consumption by the estimated or target energy consumption based on historical data, benchmarks, or standards. EPI can help you assess the effectiveness and efficiency of the energy management system and identify gaps and deviations from the plan. By improving your EPI, you can align energy performance with energy management objectives and adjust your actions and strategies accordingly.
Energy Return on Investment
A strategic energy KPI is the Energy Return on Investment (EROI), which measures the ratio between energy savings and the energy investment for a specific energy efficiency measure or project. EROI can be calculated by dividing the annual or cumulative energy savings by the initial or total energy investment, including capital, operation, and maintenance costs. EROI can help you prioritize and select the most beneficial and feasible energy efficiency actions and optimize your energy portfolio and mix. By increasing EROI, you can maximize energy value and impact and achieve energy management objectives faster and more efficiently.
To effectively measure these KPIs, you will need to:
- Collect precise data using energy meters, sub-meters, and monitoring systems.
- Establish objectives and benchmarks for improvement.
- Regularly analyze and review data to identify trends and improvement areas.
- Implement energy-saving initiatives and monitor their impact.
- Communicate progress to stakeholders and employees to maintain engagement.
The IoT platform for energy management QLEAP ENEF has been developed to track energy management objectives – connect all energy-consuming devices in your company or institution, collect consumption-related data, and calculate KPIs in real-time to optimize energy performance.