Energy Management – Why is it becoming increasingly important for manufacturing companies and what data is required for it?

Energy Management – Why is it becoming increasingly important for manufacturing companies and what data is required for it?

What is an Energy Management System?

An Energy Management System (EnMS) clearly illustrates how much energy a company consumes and the continuous, everyday opportunities it has to reduce this consumption. The introduction and maintenance of an EnMS is outlined in the international standard DIN EN ISO 50001.

Why is Energy Management becoming more crucial?

Due to societal and political changes in recent decades, such as the introduction of the EEG levy and CO2 pricing, alongside unforeseen influences and crises, the energy market has significantly transformed. Available energy and energy sources have become more expensive due to levies and scarcity. Furthermore, the expansion of solar and wind power has led to fluctuations in available electricity, resulting in variable energy prices. For instance, the electricity price on December 11, 2023, exhibited a substantial disparity between early morning rates (less than €30/MWh) and daytime rates (at least €90/MWh, peaking between 6 and 9 pm at up to €120/MWh).

Quelle: https://www.agora-energiewende.de/.../agorameter/11.12.2023/hourly

To identify levers for reducing overall energy consumption and smoothing costly consumption peaks, a systematic recording of the production's temporal load profile on an equipment basis is necessary. Derived from this information, measures can be implemented to decrease energy demand, thereby deriving economic potentials.

The Theory behind an Energy Management System?

The concept behind implementing an energy management system involves a holistic energy assessment of the company, analyzing collected data, and deducing valuable fields of action to reduce energy demand and related costs. These fields of action are subsequently developed into measures within a PDCA cycle (Plan – Do – Check – Act), regularly checked for effectiveness, and further refined by integrating additional opportunities identified.

Requirements for a Functional Energy Management System:

To introduce and effectively implement an energy management system, capturing detailed consumption patterns for heat and electricity is essential. Only by precisely monitoring (large-scale) facilities is it possible to understand their respective load profiles and work accordingly. Analyzing these load profiles and identifying significant consumers allows the recognition of optimization potentials. After implementing initial measures, efficient energy savings can be achieved, leading to greater independence from energy prices and their fluctuations.

Moreover, with knowledge of the load profiles, non-continuous production processes can be tactfully integrated into the production, optimizing the company's load and energy management or aligning it with the availability of renewable energies

Benefits of EMS in Manufacturing Companies

When the prerequisites are met – data availability and assessment – several advantages arise for manufacturing companies. A detailed understanding of energy consumption at the equipment level enables the implementation of short-term measures to reduce energy demand. Understanding the load profile facilitates the derivation of measures to reduce the peak load, known as "Peak Shaving," thereby reducing the payable tariff. Implementing an energy management system also allows continued performance monitoring of major facilities and machinery, moving towards "Predictive Maintenance." Deviations from the long-term average energy demand can indicate impending defects, such as increased friction due to insufficient lubrication in a dry-running bearing, leading to higher energy consumption.

How are laws evolving and what opportunities do they offer?

With the introduction of the Energy Efficiency Act in September 2023, companies consuming an average annual energy of more than 7.5 GWh were required to establish an energy or environmental management system (see §8 Abs1 EnEfG). Smaller companies consuming more than 2.5 GWh are also obliged to record efficiency measures. This law transposed the requirements of the EU Energy Efficiency Directive (EED) into German legislation. This legal obligation simultaneously offers the chance to identify energy-saving potentials, reducing dependence on energy prices and their fluctuations.

As companies can only sustainably operate when profitable, the topic of "energy management systems" completes the cycle of profitability and sustainability. Simultaneously, the acquired information can be quantified and presented in an (ESG) reporting system, either as a legal requirement or voluntary disclosure, internally or externally.

At Munich Consulting Group, our approach is to think holistically about factory planning, encompassing operational impacts and the associated energy needs of the production facility into the planning process.

We are ready to support you in the following areas:

  • Coordinating the planning and implementation of an energy management system
  • Analyzing your existing production and conducting technical feasibility assessments for energy consumption recording.

With extensive experience from over 250 acquired and completed projects, our commitment goes beyond the standards of digital factory planning. We are eager to demonstrate how you can design your new or existing production facility with an energy management system and the described economic benefits.

For inquiries or further information, please feel free to contact Mr. Horn (Senior Manager Industrial Engineering) using the contact form below.

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Thomas Horn

Thomas Horn
Industrial Engineering

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