Managing Energy Requirements while Keeping an Eye on Carbon Footprint with CMMS
The planet is getting warmer, extreme weather is not uncommon anymore, sea levels are rising, the air and water are polluted, and ecosystems are dying. We’re putting the planet’s health and ourselves at risk. And this is all because of the sheer amount of energy our industries need to run. While industries alone cannot be blamed, they are a major contributor.
The sad part is, despite this, a lot of energy just goes to waste. In fact, studies conducted in the United Kingdom showed that industries like manufacturing will waste around 30% of all their purchased energy, which translates to about £33.9 billion.
These numbers should start sending off major red flags in our heads immediately. The importance of industries using energy more efficiently cannot be understated. It’s not just to save costs but also to work towards sustainability goals and reduce their carbon footprint.
Thankfully, a tried-and-tested method of improving energy efficiency is making use of a CMMS, or Computerized Maintenance Management System. Let’s talk more about that.
What is Energy Management?
Energy management, on the face of it, is a very straightforward concept, as it’s simply a matter of figuring out how to use energy smartly, making sure none or minimal goes to waste. To do this, first, your company must find a way to keep an active eye on just how much energy your daily operations use. From there, it becomes a matter of finding areas where it is either being overutilized, over-supplied, or wasted and making the necessary changes from there.
In a factory, for example, if machines are running when they’re not being used, energy is being wasted, and money is being lost. Imagine leaving the lights on when no one is home. All it does is reduce the lifespan of the light and consume energy that is being put to practically no use. Now, just imagine that example on a much, much greater scale.
So, energy management, in a nutshell, is meant to monitor the energy consumption of each machine. It makes sure we preserve it when it isn’t being used or does not supply excess energy to a machine, saving the costs associated and, indirectly, increasing the life of the equipment in question.
Importance of Energy Management in Business
Energy management is important for businesses, no matter which sector they may operate in. Whether it’s reducing costs, fulfilling their responsibility toward the environment, or meeting sustainability goals, here is what makes it so important:
- Environmental Impact
Studies show that our energy consumption is only on the rise, projected to increase by 48% before 2040. [1] That is a massive jump, making the adoption of energy-efficient practices and renewable energy sources all the more valuable and important for the preservation of the environment.
- Cost Reduction
Energy prices are not going down, and our dependence on them means we have no option but to keep using them. Moreover, politics can play a role as well. For example, the war in Ukraine has driven energy prices through the roof. Now, more than ever, the implementation of effective energy management strategies is important.
- Regulatory Compliance
Energy management isn’t merely a beneficial practice for businesses to save costs but has also become an obligation for industries. To maintain a clean track record free of fines, penalties, or worse, energy regulations and compliance requirements must be met.
For example, in 2019, Singapore introduced a “carbon tax” of $5 for every ton of CO2 emissions, the first of its kind in Southeast Asia. In the European Union, the “Green Deal,” an initiative to reduce carbon emissions, has resulted in various new laws and regulations on energy consumption.
Laws are becoming more stringent by the day in response to climate change, affecting all businesses, no matter the size. Implementing energy management systems can make it easier for companies to comply with regulations.
In addition, solid energy management helps fulfill corporate social responsibility. By reducing energy consumption, businesses contribute to a healthier planet.
- Maintaining Energy Costs and Availability
Demand and supply will dictate that energy prices rise significantly if consumption is excessive, benefiting the energy industry. To keep this commodity affordable, it needs to be used properly. Though energy cannot be destroyed according to scientific principles, it isn’t always available in a useful form to us. Overconsumption could lead to rising prices and scarcity.
- Innovation and Growth
To make breakthroughs in the energy sector, it must first be managed effectively. The cost savings achieved through energy management can further fuel (no pun intended) innovation within the field.
Benefits of using CMMS for Energy Management
The implementation of a Computerized Maintenance Management System (CMMS) within daily operations for energy management has many benefits that directly impact efficiency, cost savings, and the ability to meet sustainability goals.
- Encourages Preventive & Predictive Maintenance
One of the major advantages is enhancing both preventive and predictive maintenance. With the former, companies can make sure their equipment is fixed routinely using an automated schedule to keep operations running smoothly, all the while reducing the energy wastage that comes with a machine that isn’t functioning as it should.
A car consumes more fuel when it isn’t burning it well. On the other hand, with the help of predictive maintenance powered by ML, using IoT sensors and analytics, maintenance issues are predicted before they arise and the team is alerted accordingly. From there, they can take the necessary steps. Addressing these issues early minimizes downtime and saves costs in the long run, as minor issues are prevented from snowballing.
- Real-time Information
A great CMMS monitors data in real time and generates detailed reports on energy consumption patterns, which are analyzed by AI. Our CMMS+ solution, LLumin, does just that. Plus, it detects weaknesses in your energy efficiency and addresses them.
Combining this insight with better overall asset performance, both the fuel consumed and machinery fetch you the best possible ROI. Over time, this also extends the lifespan of assets, further adding to that ROI.
This entire process helps the complete chain of production run that much more smoothly. It organizes everything from work orders to inventory and maintenance schedules, preventing delays and reducing energy wastage. Moreover, these systems are instilled with up-to-date information about compliance regulations regarding energy. They track and document all activities, becoming a centralized system for information from which records can be extracted to show during audits to avoid fines.
- Improves Efficiency
CMMS improves efficiency across the board. It organizes work orders, maintenance schedules, and inventory, which prevents delays and reduces energy wasted during equipment breakdowns.
Besides, CMMS helps businesses maintain compliance with energy regulations by tracking and documenting maintenance activities, avoiding potential fines, and promoting safety in operations.
This data can be interpreted and presented in a comprehensible way to get a complete view of the energy usage of your company. Based on the results, changes can be made to improve or continue your energy-saving initiatives.
Implementation of a CMMS
Now that we know the implementation of a CMMS can lead to several benefits, it’s a no-brainer decision to use it for your business.
You can start by first making sure everyone is on board. You’re going to need a team of individuals representing the maintenance, IT, and operations departments. From there, you’ll need to select a CMMS solution that’s capable of meeting your goals and fits your requirements.
When selecting one, consider the features on offer like scalability, integration capabilities, user-friendliness, as well as vendor support and training.
Once your team is ready and the software is selected, it’s time to roll out the plan. You can decide between a phased implementation or a full-scale launch.
Phased implementation is usually the least disruptive and tends to be preferred, but that decision is up to every business owner’s discretion. Train your staff with practical, hands-on sessions so they understand the system and can actually use it effectively.
Before going live, launch a pilot program with a small group of trusted employees across or in a single department to identify and fix any issues before the full launch. Once the CMMS goes live, monitor its performance and gather user feedback to address any challenges presented.
Tools for Reducing Carbon Emissions and Energy Use
When the problem at hand is so large, small, incremental changes over time make a lot of difference. Here are some of the tools and strategies that can be used in your goal of reducing carbon emissions and energy consumption.
| Renewable Sources | Renewable energy sources like solar, wind, and hydroelectric power make the job of every business, which is reducing their carbon emissions, easier by making a substantial dent in our reliance on fossil fuels, which are both scarce and cause harm to the environment. |
| Carbon Management Tools | Making use of carbon calculators and management systems allows you to keep an active track of your carbon emissions. These tools also provide insights into how to better utilize your resources, identify areas of improvement and provide actual techniques that can be implemented to reduce the impact on the environment. |
| Advanced Technologies | The new kids on the block, artificial intelligence (AI) and machine learning (ML), have changed the way we do business forever, and their usefulness is yet to show their fullest extent. They are capable of optimizing our energy consumption rates and reducing emissions by, for example, enhancing industrial efficiency and asset utilization in businesses. |
| Transportation Strategies | Our reliance on cars and trucks that run on diesel or petroleum is a major cause of carbon emissions. It’s recommended we incorporate those into our fleets. Moreover, making use of public transit, biking, or walking can significantly reduce personal and organizational carbon footprints. |
| Regulatory Programs | Programs like the U.S. Environmental Protection Agency’s (EPA) ENERGY STAR offer tools like Portfolio Manager, which helps companies measure and track energy and water consumption, as well as greenhouse gas emissions. |
With the combined efforts of businesses and individuals, carbon emission levels can drastically decrease, and we can head towards a more sustainable future.
Strategies for Balancing Energy Needs with Sustainability
On one hand, companies want to contribute to protecting the environment, as it is their moral duty and the law. On the other hand, our current system is built in such a way that major compromises in energy requirements are often not feasible. Fortunately, there are strategies to strike a balance between your energy needs and sustainability goals.
The first thing your business should do is optimize its energy utilization. A CMMS solution like LLumin can greatly assist with this task. By simply avoiding energy waste and upgrading to more energy-efficient appliances, you can make significant progress. This includes adopting renewable energy sources such as solar, wind, and hydroelectric power. Doing so can save money in the long run by lowering energy consumption and reducing carbon emissions.
One of the biggest challenges companies face when transitioning to greener operations is the high cost. Fortunately, regulatory incentives can promote clean energy adoption, such as tax credits for renewable energy investments or penalties for high emissions.
Lastly, communities are increasingly raising awareness among the public, educating them about energy conservation practices and the benefits of renewable energy. This collective mindset extends to corporations, where it becomes part of their corporate social responsibility.
In summary, your company can utilize the following strategies to balance energy management with sustainability goals:
- Implementing advanced technologies like a CMMS solution, AI, and ML for better energy utilization.
- Using public awareness campaigns and seeking government support.
- Investing in diversified energy sources, such as solar, electric vehicles (EVs), hydro, and nuclear energy to reduce reliance on fossil fuels.
How LLumin Can Help Manage Business Energy Needs
The fastest way of lowering your carbon emissions is simply by effectively managing your energy consumption, which can be achieved by better managing your assets. That is exactly where our CMMS solution, LLumin comes in handy.
It assists your business in keeping track of your maintenance work, organizing and simplifying how you take care of equipment, keeping track of machines, and so much more. With LLumin’s mobile-ready CMMS+ solution, your business can:
- Automate scheduled maintenance tasks so your team don’t forget important repairs or checks
- Track equipment health in real time and send out alerts to the concerned team to fix problems before they cause bigger issues
- Store maintenance records to keep everything organized in one place. Being a centralized point for information makes data easy to access
- Help meet sustainability compliance and regulations
- With the help of ML and AI, reports are generated, and actionable insights are provided for improving workflows and efficiency
- Extend the lifespan of equipment by having them operate optimally, reducing the need for premature replacements
With LLumin backing up eco-friendly efforts, not only can your business get the best possible ROI out of your investments, but it also meets your sustainability goals. This helps your business perform its corporate duty and avoid heavy fines and loss of reputation that come with ignoring the green movement. Schedule a demo with us today to get started!
Conclusion
The direct impact of energy consumption has led to water and air pollution, along with global warming and rising sea levels. [2] By simply managing your energy needs better, companies can collectively reduce their carbon footprint as well as save money and time. Great for business and the environment, so it’s a win-win.
FAQs
What is the difference between energy efficiency and carbon reduction?
Energy efficiency and carbon reduction are related but distinct concepts. Energy efficiency is all about consuming less energy to achieve the same results, like how the usage of LEDs provides the same amount of light (if not more) when compared to a bulb that consumes much more energy and produces larger amounts of heat. The goal of it is minimizing energy waste without sacrificing performance.
Carbon reduction, on the other hand, aims at lowering the amount of CO2 gas that we release into the atmosphere. Companies aim for this to reduce their, you guessed it, carbon footprint. This can be achieved by making use of renewable energy sources, improving energy efficiency, or directly offsetting the emissions through activities like planting trees (though this is an extremely long-term solution and not always the fastest way to make an impact).
How can business track their energy usage effectively?
Companies can track their energy usage effectively by using energy meters, smart devices, and software that monitor energy consumption in real time. These tools can help businesses understand how much energy they use, where it’s being used, and when. By setting up regular reports, companies can identify areas to save energy and reduce costs. It’s also helpful to train employees to use energy efficiently and monitor trends so that any issues can be spotted early.
Are government incentives available for reducing carbon footprints?
There are indeed government incentives for reducing carbon footprints, such as tax credits, subsidies, and rebates for companies that use renewable energy systems. We’re all aware of the subsidies and tax benefits of using electric vehicles, for example. There are also low-interest loans and carbon trading programs to help reduce emissions. However, in full disclosure, these do vary greatly from one location to another.
