Will Energy Management Systems (EMS) become the iPads of the energy industry?

Special Report

Part 1 of a Series on Energy Management Systems

By Lee Kane

EMS is the "iPad" of the energy sector according to one expert. Another likened Energy Management Systems (EMS) to Toyota's Prius as "a game changer." We ask the question, why the hype? Is it justified. Our five-part series explores the available research, the current technologies and the market for Energy Management Systems.

EMS monitoring is not as complicated as the monitoring equipment at this nuclear power plant, but it promises businesses and home owners control over their power usage, with potential savings on energy bills of up to 30%.According to an IBM research report, 1 in 5 homes will likely install home energy management systems (called EMS) by 2015, and 4 out of 5 by 2020. Google, Microsoft, Cisco and others are racing to fulfill the anticipated $6 billion market (ON World, 2012 estimate). Why is EMS the latest trending technology? 

Home energy monitoring and smart control for the home is much easier to navigate than the monitoring shown above at the power plant, but gives a homeowner sophisticated control and metrics. By visualizing energy use by the moment, day, week, circuit, load time, homeowners can set parameters and control usage or receive warnings. Similar systems for businesses may have more reporting functions, but are equally easy to navigate. All of the functions are typically also available as an internet application or an app for mobile devices, offering monitoring and control from anywhere. The big promise of these systems is energy savings, significant for business, industry and home owners. Some manufacturers, such as Cisco, deploy EMS to large communities, ensuring new home owners have a low cost of entry.Energy conservation, the “fifth energy source” and how to make it manageable

“Energy conservation is widely thought of as the fifth power,” said Carsten Steenberg of Powerwise The other four energy “powers” are nuclear, carbon fuels (coal, oil, gas), hydro and renewable energies (solar and wind.) “If we conserved just 5% of energy use through energy management, we could eliminate oil as a power source. At 13% we could eliminate nuclear.”

The issues of a growing world population, rapidly rising energy prices, and a need to preserve the environment have moved energy management to the forefront of worldwide initiatives, ahead of the push to renewable energies. 

Energy Management Systems are fitted to homes or business to measure and report on circuit-by-circuit energy usage. Most report via internet login, many send alerts of “unusual usage” and several can be integrated with “smart home” or security systems.

The average savings to a homeowner with EMS is 13%

A 2010 poll conducted of installed user base by eMonitor Power Dynamics, to their users of EMS, revealed most users saved over 20% on their energy bills.Worldwide, nuclear represents 13% of energy production, easily replaced with—or supplemented by—a modest universal energy conservation program. According to a recent poll of installed users of home energy  management systems, 98% reported energy savings, most saving between 10 and 20 percent. (eMonitor poll of users Nov 2010). A recent story on Gizmodo.com indicated 25% of EMS-installed homeowners can actually save 25% on their utility bill (Jason Chan, Gizmodo.com). EMS, or Energy Management Systems, which install between $300 and $1000, average a 13% energy savings, according to a WorldOn Report.

In other words, if the entire world saved 13% in energy use, through EMS or other conservation practices, we would no longer need Nuclear. Or Oil. At the moment, nothing seems ready to replace coal, which produces 41% of world power, but, considering the pollution created by coal-burning power, a reduction in power usage would certainly help.

The “Prius Effect” and the Government

“Governments are really engaged by EMS, and I think subsidies for energy monitoring are coming,” Carsten Steenberg of Powerwise said. Carston also likened the energy-saving benefits of EMS to Toyota’s industry-changing Prius hybrid car. “When you’re driving along, facing an array of graphics that tell you moment-by-moment how much fuel you’re saving, you suddenly find yourself driving more economically. It’s the same with home energy management. 98% of installed users report savings.”

The “iPad of “Energy”: EMS

Rick Hubert, VP of Smart and Communities at Cisco likened the effect more to the Macintosh iPad, another industry changer: “I don’t want to compare energy-managed homes to iPads, but that’s kind of what’s happening. It’s the latest ‘must have’ and it’s more than just a gadget. We have built large communities in Korea, Barcelona and Portungal. In the Asia, we’ve built million-person communities with energy management and smart home technology.”

In Asia, energy management systems—also known as EMS—are viewed as necessary, rather than optional, particularly for businesses and residential complexes such as condominiums. =

Tridel and Cisco are leaders in energy management for homes

In Canada, Tridel has long been an innovator in “built green”, leading with new standards in passive and active home energy conservation, which includes home energy management. Tridel’s showcase Ecosuite recently launched to much publicity and public attention, showing off the latest in home energy management systems, home automation, renewable energy and the latest LEED (Leadership in Energy and Environmental Design) standards.

Cisco is also working with Ellis Don on major non-residential commercial EMS and smart control systems. 

EMS is voluntary—“demand response” is not

Energy conservation is increasingly mandated, as utility companies use programs such as  “demand response” and variable time-of-day rates. With demand response (DR) and dynamic demand (DD), the utility company automatically cuts back on a homeowner’s power during peak high-demand periods, or “forces” the conservation. During a heatwave, this might mean no air conditioning, for example.

With EMS, homeowners assume control, instead of the utility company. By revealing where power is used, how much, when, and even how much it is costing minute-by-minute, homeowners are empowered to change. According to various studies, homeowners who have installed EMS, do change their habits and do conserve an average of 13%. With EMS systems that use alerts—normally an email or instant message letting you know there is power usage outside of your norm—savings increase to as much as 25% or more (eMonitor Poll, 2010.)

Homeowner savings can be realized in a number of ways with EMS systems:

• homeowners reduce unnecessary expenses. For example, an EMS can warn of a computer left on, or a fridge door left open
• allows homeowners to maximize savings under “rate programs” from many utility companies, sending you an alert indicating how much power you are using during a higher rate period
• EMS can be tied to many smart home functions, since most are IP based, allowing remote control of thermostats, security systems, and even the ability to “shut off” circuits.

Read more in our next feature in the series— Part 2: Changing old habits: Saving energy with EMS

*IBM Research “Smart energy consumers” p2008. Size of market estimated in the “ON world report on smart home systems”.