Energy Management System: what it is, benefits, and applications

The Energy Management System (EMS) is the software that acts as the “brain” of a battery energy storage system (BESS), intelligently managing how energy is used. While the BESS is the hardware that stores and delivers electrical energy, the EMS provides control, strategy, and efficiency. This combination protects operations from power outages, reduces the environmental footprint, and lowers energy costs by managing demand peaks.

Every day, operations leaders and plant managers in industrial companies experience pressures related to rising energy costs, increasingly frequent power outages (which result in millions of dollars in losses each year), and a real urgency to reduce their environmental footprint.

Given these factors, energy storage alone is not enough: a management system is required to convert available energy into a business strategy. This is where EMS comes into play, as the tool that transforms BESS operation from something reactive to a proactive and strategic solution.

What is an Energy Management System (EMS)?

An Energy Management System (EMS) is control software that, when integrated with a Battery Energy Storage System (BESS) and other electrical equipment, allows for the monitoring, analysis, and optimization of energy consumption in industrial and commercial environments.

Now then, the main objective of an EMS is to make the use of BESS and the electrical grid more efficient, reducing costs and decreasing the environmental impact of companies. All of this is done in accordance with international guidelines such as ISO 50001, which establishes standards for energy management.

The relevance of EMS in Mexico is framed by the national energy context, as the Energy Transition Law emphasizes the importance of energy efficiency and the use of renewable sources, encouraging companies to adopt technologies that allow for smarter management of their energy resources.

How does an Energy Management System work?

Unlike a simple measurement system, the EMS from Industronic operates through a complete network of sensors, meters, and control software that monitor the energy consumption of a factory, building, or critical industrial facility in real time. Its main functions are:

• Making smart decisions: an EMS acts as the “brain” that manages the energy of storage systems such as BESS. Without an EMS, a BESS system would be limited to passively storing and discharging energy.
• Real-time strategy: Based on real-time data and consumption forecasts using artificial intelligence, the EMS strategically controls the charging and discharging of BESS batteries. This allows actions such as peak shaving or integrating energy generated from renewable sources.
• Analysis and control: Industronic’s EMS processes data collected on power factor, voltage, and other parameters to identify patterns, forecast energy demand, and detect inefficiencies. Based on this, it makes automated decisions, such as adjusting equipment load, controlling lighting, or managing the flow of energy to or from battery energy storage systems (BESS).
• Savings report: The software analyzes the collected data to generate detailed reports on the CO² equivalent that is not emitted thanks to smart energy consumption, generating real-time sustainability reports.

Read also: BESS for factories in Mexico: How to optimize energy management and reduce costs?

Benefits of implementing an EMS in industry

The real advantage is not in choosing between an EMS or a BESS, but in integrating both, as together they provide the following benefits:

1. Greater operational reliability: the BESS stores energy, while the EMS manages its distribution efficiently and ensures continuity in critical operations.
2. Lower operating costs: EMS controls when to charge the BESS (during off-peak hours) and when to discharge it (during peak demand), reducing the electricity bill.
3. Contribution to sustainability and regulatory compliance: an EMS helps companies reduce their carbon footprint and comply with environmental objectives and regulations such as Mexico’s Energy Transition Law. In addition, its implementation facilitates the attainment of ISO 50001, an international standard that recognizes organizations’ commitment to continuous improvement in their energy performance.
4. Predictive intelligence and better decision-making: Beyond simple monitoring, artificial intelligence algorithms, and machine learning, EMS anticipates energy demand, identifies trends, and detects inefficiencies. Furthermore, this data is converted into useful and visually clear information through intuitive interfaces and reports, empowering decision-makers to make informed decisions in real time.

Applications of the Energy Management System

EMS in conjunction with BESS is applied in a wide range of industrial sectors, each with particular energy needs:

• Manufacturing: to monitor heavy machinery consumption, optimize production schedules, and manage energy loads to avoid peak demand penalties.
• Data centers: to ensure uninterrupted and efficient power supply, which is critical to the continuity of IT operations and services.
• Retail and corporate offices: to monitor consumption across multiple locations and control HVAC, lighting, and other systems, helping to reduce energy consumption and costs.
• Critical infrastructure: hospitals, airports, and other facilities that cannot afford interruptions in power supply.
• Microgrid management: to optimize energy flow in local power grids that combine conventional and renewable generation sources.

Frequently asked questions about Energy Management Systems

What is an EMS and what is it used for?

An EMS is software that monitors and manages the use of energy stored in a BESS, distributing it efficiently throughout a facility. It is used to proactively manage consumption, reduce costs, improve reliability, and contribute to sustainability.

What is the difference between an EMS and a UPS?

An uninterruptible power supply (UPS) is a device that provides immediate backup power in the event of a power outage, acting as a power bridge to prevent the interruption of critical equipment. An EMS, on the other hand, is intelligent control software that proactively manages and optimizes the use of energy stored in a BESS system, not only in emergencies, but on a day-to-day basis.

Which companies need an EMS?

Any company with high electricity consumption and critical production processes that seeks to optimize its energy consumption, reduce its operating costs, and improve its sustainability can benefit from a BESS + EMS solution. It is especially useful for facilities that cannot afford interruptions, such as hospitals, data centers, manufacturing plants, airports, or retail facilities.