An energy management system (EMS) is a system of computer-aided tools used by operators of electric utility grids to monitor, control, and optimize the performance of the generation or transmission system. Also, it can be used in small scale systems like microgrids.[1][2]
The computer technology is also referred to as SCADA/EMS or EMS/SCADA. In these respects, the terminology EMS then excludes the monitoring and control functions, but more specifically refers to the collective suite of power network applications and to the generation control and scheduling applications.
Manufacturers of EMS also commonly supply a corresponding dispatcher training simulator (DTS). This related technology makes use of components of SCADA and EMS as a training tool for control center operators.
An energy management system (EMS) is a set of tools combining software and hardware that optimally distributes energy flows between connected distributed energy resources (DERs). Companies use energy management systems to optimize the generation, storage and/or consumption of electricity to lower both costs and emissions and stabilize the power grid.
An EMS collects, analyzes and visualizes data in real time and dynamically controls energy flows. An energy management system is the building block of future energy use cases as it intelligently monitors and controls a variety of energy assets within a household, building or larger site.
A rule-based energy management system focuses on designing and implementing the logic governing energy distribution among connected DERS. It relies on established rules and predefined guidelines to make real-time decisions about energy allocation. The rule-based approach ensures operational stability, making it suitable for scenarios where straightforward decision parameters can achieve effective energy management.
A forecast-based energy management system, on the other hand, specializes in crafting advanced optimization strategies for complex energy management scenarios that rule-based EMS cannot address. This system aims to enhance profitability, computational efficiency, and security in a changing energy landscape. By analyzing various forecasting strategies, considering factors like model types, data availability, and optimization frequency, this approach helps prosumers make informed decisions about energy usage and production.
The system factors in real-time data, such as rooftop PV production, battery status, and load consumption, along with external information like spot electricity prices or weather forecasts. This enables the EMS to make intelligent decisions on when to charge or discharge a battery, when to use locally-generated solar energy or draw power from the grid, and how to constantly optimize energy management strategies to accommodate the three D''s of the new energy era – digitization, decarbonization, and decentralization.
A cloud-based EMS is a cutting-edge energy management software solution that revolutionizes energy management for utility companies, energy consultants, and businesses across various industries.
In the e-mobility space, an EMS plays a pivotal role by enabling dynamic load management, efficient charging optimization, and smart bidirectional charging. The EMS actively manages the charging process of electric vehicles (EVs) by dynamically distributing power to minimize peak demand (peak shaving), while always avoiding grid overloads – this guarantees constant grid stability and cost-effectiveness.
Through advanced algorithms, the EMS optimizes charging schedules based on factors like capacity tariffs, travel requirements, and grid conditions, reducing operational costs and improving energy efficiency. In the case of bidirectional charging, the EMS intelligently controls when an EV charges and discharges – according to local supply and demand, electricity prices and other factors – to minimize costs, maximize self-sufficiency and stabilize the grid.
EMS solutions allow sites with rooftop solar panels to maximize self-sufficiency and lower costs. For example, the EMS uses historical consumption patterns, forecasts and setpoints to ensure that rather than being curtailed, surplus solar power is used to charge or power other devices, such as a battery or electric vehicle (EV). It also feeds electricity back to the grid when prices are high and draws from the grid when prices are low to keep costs to a minimum. An EMS can be configured to reach different goals, for example to minimize costs or to minimize emissions.
A heat pump, favored for its high efficiency and low CO₂ emissions in heating and cooling, can leverage an EMS to unleash its full potential. EMS technologies integrate heat pumps into holistic systems to intelligently respond to demand fluctuations. In a HEMS, a heat pump''s operation can be adapted based on real-time electricity prices, grid conditions, and user preferences. This enables load shifting, where heat pumps adjust their operating schedules to times of lower electricity demand and pricing, resulting in reduced energy costs.
The integration and coordination of various energy sectors – such as electricity, heat, and mobility – aims to optimize the overall energy efficiency and enhance the integration of renewable energy sources. This is often called sector coupling. Electrification, a key aspect of sector coupling, involves the replacement of fossil fuel-based with electric technologies to save money and reduce greenhouse gas emissions.
In this context, having an energy management system becomes crucial, as it enables the seamless coordination and control of distributed energy resources and their electricity flows across multiple sectors. An EMS maximizes the utilization of energy and minimizes waste to contribute to a more sustainable and integrated energy landscape.
An EMS provides real-time monitoring, data analysis, key performance indicator (KPI) measurement, and visualization of energy consumption and savings. This enables more informed and effective decision-making to enhance efficiency, increase sustainability and optimize performance across an entire site.
By optimizing the utilization of each asset, an EMS ensures that costs are constantly minimized: electricity is drawn from power grids during cheap periods, locally generated electricity is maximized, and consumption is aligned with optimal weather and off-peak demand. In addition, use cases like dynamic load management and peak shaving ensure that power is optimally used within existing grid infrastructure. This eradicates or minimizes the need for costly grid extensions and significantly lowers grid fees.
By employing an EMS, businesses gain a competitive edge in an evolving energy landscape characterized by digitization, decarbonization, and decentralization. An EMS enables efficient energy resource management, the alignment of consumption and sustainability goals, and lowered costs. It seamlessly integrates variable renewable energy (VRE) sources into energy systems, to enable faster scaling of clean energy projects and reduced reliance on fossil fuels.
Adaptable and extendible features are the key to accommodating constantly changing regulation and customer preferences. For example, rising and increasingly volatile electricity prices, combined with new regulation that pushes dynamic tariffs, has caused a significant push to time of use tariffs. Companies with an extendible EMS can more easily adopt new solutions as the market ripens for such complex use cases. In doing so, businesses can tailor their strategies to address customer needs, thereby enhancing agility and bolstering their market positions.
With over 70% of greenhouse gas emissions attributed to the energy sector, an EMS serves as a powerful tool in the fight against carbon emission. For one, an energy management system enables demand response, allowing businesses to curtail energy usage during peak hours, thereby decreasing reliance on fossil fuel-based power generation.
And there is also load optimization that ensures that an equipment operates at peak efficiency, preventing energy wastage and lowering overall consumption, leading to reduced emission. On top of that, an EMS facilitates the seamless integration of renewable energy sources, such as solar and wind, into the grid. By prioritizing the use of renewable energy when available, en EMS reduces the need for fossil fuels, which is the main culprit for carbon emissions.
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