In today’s world, energy efficiency is no longer a luxury, it’s a necessity. Whether you’re a homeowner, or business owner, managing your energy use means saving money.

Do you know the global energy management with IoT market was valued at approximately $17.4 billion in 2020 and is expected to reach $52.5 billion by 2027.

Fortune Business Insights

Imagine your house is like a team, and energy is like the team’s supplies. Sometimes, the team wastes supplies without realizing it. This is where cool gadgets called IoT devices come in. IoT stands for “Internet of Things.” These are devices that connect to the internet and can send information. In energy management, they act like smart assistants for your home’s energy use.

Imagine a sensor on your fridge that tells you when the door is left open. That way, you don’t waste energy keeping cold air in when it’s escaping!

What is IoT?

The Internet of Things (IoT) is a network of interconnected devices that exchange data with each other over the Internet. These devices range from everyday household items to industrial machinery. IoT devices can track, control, and improve energy use in real-time.

Facts : Siemens has integrated IoT into its manufacturing plants. This has resulted in a 20% increase in production efficiency. It also led to a 30% reduction in machine downtime.

Source : Siemens

How does IoT work?

Different Sensors are embedded in IoT devices. They collect data from their surroundings, like temperature and humidity. The collected data is transmitted to a cloud infrastructure or local server. There are various connectivity options, for example Wi-Fi, Bluetooth, cellular networks, or dedicated IoT protocols like Zigbee or LoRaWAN.

We extract meaningful information from this data. Based on the analysis, actions are taken either automatically by it or manually by the user. Users can interact with applications to make adjustments and get notifications.

Real-World Examples of IoT

What is IoT Energy Management?

IoT Energy Management is like having smart helpers for your home’s energy use. Imagine your home has lots of little helpers that watch how much energy everything is using. These helpers send information to a smart brain, that figures out how to save energy and money. So, it’s like having a super smart energy manager for your home!

Also Read: The Rise of Quantum Computing in 2025

What is the importance of Energy Management?

Energy management is crucial for several reasons, including

• energy management helps businesses and households reduce their energy consumption on utility bills.
• organizations can avoid waste of resources by monitoring energy use.
• Reducing energy consumption directly contributes to lowering greenhouse gas emissions.
• Energy management promotes the efficient use of renewable energy sources.
• businesses can enhance operational efficiency by optimizing energy use.
• Proper energy management includes maintaining equipment at optimal levels.
• Energy management aligns with national and international goals for energy conservation and sustainability.
• Companies that implement energy management practices can reduce their environmental impact.
• businesses and individuals can mitigate the impact of energy price volatility.
• Reducing energy consumption and emissions contributes to cleaner air and water.

Also Read: 5 IOT Sensors with examples

How IoT Enhances Energy Management?

IoT makes energy management smarter and more efficient. It uses devices like sensors and smart meters to track energy use in real time. This helps find where energy is being wasted. IoT systems can also automate tasks, like turning off lights or machines when not in use, saving even more energy.

Smart grids use IoT technology to work more efficiently. They can adjust quickly to changes in energy demand and supply. With IoT sensors and smart meters, smart grids collect real-time data. For example, Chattanooga, Tennessee, implemented a smart grid system. This smart grid reduced power outages by 40%. It also saved the city $50 million annually.

Smart meters are IoT devices that give detailed energy usage to both users and utility companies. They let you track energy use in real time. For Example, British Gas rolled out smart meters to its customers. They allow them to track their energy usage in real time.

IoT technology is being used to create energy-efficient buildings that automatically adjust heating, cooling, and lighting based on external conditions. These smart buildings use IoT sensors to improve energy consumption and reduce waste. For Example, the Edge building in Amsterdam is known as one of the greenest buildings in the world. They use IoT to manage energy consumption.

IoT plays a crucial role in integrating renewable energy sources like solar and wind into the energy grid. IoT devices can track and manage the production and storage of renewable energy. For Example, the island of El Hierro in Spain uses an IoT-enabled system to manage its renewable energy sources. This network integrates wind and hydroelectric power. This setup allows the island to generate 100% of its electricity from renewable sources.

IoT technology enables predictive maintenance of energy infrastructure by continuously monitoring the condition and performance of equipment. This helps in identifying potential issues before they become critical. They reduce downtime and maintenance costs. For Example, General Electric (GE) uses IoT sensors on its wind turbines to collect data on performance and environmental conditions.

Fact : Fortune Business Insights reports that the global IoT in manufacturing market was valued at USD 27.8 billion in 2018.

Source : Fortune Business

Benefits of IoT in Energy Management

• IoT-enabled energy management systems help reduce energy costs.
• They offer Real-time monitoring and control of energy systems.
• They offer Predictive maintenance and smart grids.
• IoT supports the integration of renewable energy sources.

What are the Standards Of Energy Management?

Energy management standards offer best practices for organizations. They manage energy use efficiently and improve energy performance. Here are some of the key standards related to energy management

ISO 50001:2018 – Energy Management Systems (EnMS)

ISO 50001 is the international standard for Energy Management Systems (EnMS). It provides a framework for organizations to develop policies for more efficient energy use.

Key Features

• A systematic approach to continuous improvement in energy performance.
• They are Applicable to all types of organizations, regardless of size or sector.
• They focus on improving energy efficiency.

ISO 14001:2015 – Environmental Management Systems

ISO 14001 is primarily focused on environmental management. it includes aspects of energy management, particularly in reducing energy consumption.

Key Features

• They encourage a life-cycle perspective on energy and resource use.

ANSI/MSE 2000:2008 – Energy Management Standard

The ANSI/MSE 2000 standard was developed in the United States. It guides establishing and maintaining an energy management system.

Key Features

• They emphasize the importance of setting energy objectives and targets.
• They focus on continuous improvement in energy performance.

BS EN 16001:2009 – Energy Management Systems

BS EN 16001 was a European standard for energy management systems that has now been superseded by ISO 50001. It provided a structured framework for managing energy use.

Key Features

• They are comparable to ISO 50001.
• They encourage organizations to set policies for efficient energy use.

Energy Star

Energy Star is a U.S. government-backed program that provides certification for energy-efficient products, homes, and buildings. It promotes energy management by adopting energy-efficient technologies and practices. It reduces energy costs and environmental impact.

Key Features

• They offer recognition for achieving energy efficiency benchmarks.
• They give tools and resources for energy management, particularly in buildings.

European Energy Efficiency Directive (2012/27/EU)

The European Union’s Energy Efficiency Directive measures to promote energy efficiency across member states. It includes requirements for energy management, particularly for large enterprises. It contributes to the EU’s overall energy efficiency and climate goals.

Key Features

• There are mandatory energy audits and energy management systems for large companies.
• They set energy efficiency targets and need member states to develop national plans.

ASHRAE Standard 90.1 – Energy Standard for Buildings

ASHRAE Standard 90.1 provides basic requirements for the energy-efficient design of buildings. It is widely used in the U.S. as a reference for building codes. It helps reduce energy consumption in the built environment.

Key Features

• They cover building envelope, HVAC, lighting, and power systems.
• They offer guidelines for energy modeling and performance-based design.

IEC 61970/61968 – Energy Management System Application Program Interface (EMS-API)

They were Developed by the International Electrotechnical Commission (IEC). They enhance the efficiency of energy management in the power sector. It encourages the use of common, standardized interfaces for energy management software

Key Features

• It helps different energy management systems work together smoothly.
• They support the exchange of information for real-time energy management.

CEN/CENELEC/ETSI – European Standards for Smart Grids

The European Committee for Standardization (CEN) has created standards. The European Committee for Electrotechnical Standardization (CENELEC) has created standards. The European Telecommunications Standards Institute (ETSI) has also developed standards. These standards support the growth of smart grids and aim to improve energy management in the power distribution sector.

Key Features

• They support the integration of renewable energy sources, like solar and wind, into the grid.
• They promote compatibility between smart grid components, like meters, sensors, and communication networks.
• They guarantee user privacy to protect against cyber threats.

ISO 17741:2016

This standard is a simple step in calculating energy savings in energy upgrade projects. It helps guarantee that energy-saving efforts work as planned.

Key Features

• They apply to various sectors, including buildings and industrial facilities.
• They set the technique for measuring and verifying energy savings.

Also Read: Top 5 Industrial Sensors

Conclusion

In conclusion, energy efficiency is no longer just an optional advantage—it’s essential for the sustainable growth of IoT. Standards and guidelines are key in shaping a future where IoT can expand without excessive energy consumption. As we unlock new possibilities for IoT, we must focus on energy efficiency. This will guarantee a smarter, greener future.

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