Energy Management System: The Benefits of Its Implementation
Also known by the acronyms “SMEn” or “SMÉ”, the energy management system is a strategic approach to control and reduce energy consumption and optimize resilience against price fluctuations. In some countries, this approach is mandatory to comply with market regulations (DDADUE law, energy audits, etc.).
“As with any approach similar to lean management, measuring and monitoring indicators against targets allows for initiating a continuous improvement phase. This approach can generate 5% savings from the outset. However, when all factory teams fully embrace the system and reach a high level of maturity, savings can reach up to 15%. These are savings achieved without investment.
When the factory integrates projects with investment, we see that savings increase significantly. We have clients who, thanks to these investments, achieve 30 to 40% energy savings. When working on the energy mix, we can achieve 85% decarbonization on Scope 1 and 2 of the factory”
Julian Aristizabal, CEO of Dametis
What is an energy management system?
This is a system in which an energy performance roadmap is defined. It contains the objectives and the action plan, incorporating a continuous improvement methodology. To achieve these objectives, the energy management system also describes the resources and tools deployed, the list of energy uses, the performance indicators to be monitored, and the working method.
The energy management system is generally based on a standard that frames the rules and operating procedures of the system. In Europe, manufacturers use the ISO 50001 standard, which has become essential, making it a true lever for improving energy efficiency.
What are the benefits of implementing an EnMS?
Implementing an energy management system brings numerous benefits, both economic and strategic.
International recognition and enhanced image.
Based on a reputable standard, this system offers a globally recognized structuring framework. Thus, it allows the industrial company that implements it to enhance its image and CSR commitment with various stakeholders: suppliers, customers, partners, investors, etc.
A new internal dynamic, more focused on energy issues.
Internally, the EnMS provides clear insight into energy challenges. When well-constructed, it strengthens the involvement of various teams around the energy project. Energy no longer relies solely on an energy manager but becomes a topic where employees from various departments (management, finance, maintenance, production, etc.) become proactive.
A reduction in energy bills.
By providing a structured approach, the energy management system ensures more effective management of energy consumption. This control leads to a reduction in bills and, by extension, a decrease in the carbon footprint!
A strength in the face of regulatory changes.
The EnMS allows for anticipating and responding more calmly to legislative constraints in the market (mandatory energy audit, tertiary decree, CSRD, etc.).
The energy management system, mandatory for the largest energy consumers.
The DDADUE law recently redefined industrial obligations.
Is your annual energy consumption greater than 23.6 GWh?
You are obligated to implement an ISO 50001 energy management system by October 11, 2027, at the latest.
As an indication, and although it depends on the energy mix, 23.6 GWh of consumption corresponds on average to a bill of 1.5 million euros per year.
Is your annual energy consumption between 2.7 and 23.6 GWh?
You are obligated to conduct an industrial energy audit before October 11, 2026, which must then be renewed every 4 years. On average, and depending on the chosen energy mix, 2.7 GWh of consumption represents an annual bill of approximately €200,000 per year.
Although you are not subject to the obligation, be aware that certification exempts you from conducting energy audits. Beyond this advantage, ISO 50001 promotes a virtuous approach, engaging your site in a continuous improvement process with energy savings as a key outcome.
Want to know more about obligations and exemptions? We invite you to read our content dedicated to the 50001 standard.
How to implement an energy management system?
Implementing an EnMS is a rigorous process, based on adherence to various key steps.
Appoint a referent
The role of this person is to effectively manage the system, so it is essential that they possess solid energy expertise. Energy referents or Energy Managers are often appointed.
Conduct an energy audit
To establish a robust system, all energy data must be identified, mapped, and calculated through an audit.
Define an energy policy and objectives
Developed within a group or industrial site, this policy, including objectives, must be adapted to the uses and consumption of the sites concerned by the implementation of the EnMS.
Develop and deploy the action plan
The development of the action plan is an essential step in improving energy performance. Based on feedback from the technical manager and energy audits conducted upstream, this plan brings together a set of actions (with a priority on some), respecting the scope of intervention, the allocated budget, and the objectives defined in the energy policy.
Improvement actions must then be validated by all stakeholders:
- Financial management and purchasing to validate budgets
- Production and quality teams to validate project feasibility
- Technical teams to structure, plan, and implement projects
This work can be complex as it involves numerous exchanges and adjustments between different departments. However, these can be facilitated when the factory has a tool that unifies and centralizes both information and exchanges.
Analyze implemented improvement actions
Each project must be subject to a performance validation protocol with a baseline situation validated upstream of the project’s realization. Expected savings must be validated by comparing actual consumption to the baseline and the project’s given objectives. In case of failure to meet objectives, corrective actions can be implemented again; if necessary, it is important to find ways to sustain energy performance over time.
To do this, the PDCA (Plan, Do, Check, Act) method is highly recommended.
Manufacturers implementing an EnMS tend to create numerous Excels to track KPIs and the action plan, leading to a very time-consuming and unsustainable internal monitoring routine. The energy management system is therefore quickly deprioritized by on-site personnel who are subject to daily contingencies and emergencies.
To overcome these problems, implementing an EMS software is a very virtuous approach that standardizes monitoring and automates many time-consuming tasks. This tool thus facilitates the lives of on-site personnel by harmonizing practices at the group level.
Dametis supports you at every step of your process: from conducting the energy audit to implementing EMS software, and deploying all the elements and working methodologies necessary for the certification of an on-site energy management system.
