Harnessing IoT for Smarter Energy Management: Reducing Costs, Waste, and Operational Inefficiencies

Taking a look at the growth of IoT in energy management is quite the eye-opener. This is an industry that was valued at 71bn USD just a few years ago, but is projected to hit over 311bn USD by 2032.

For anyone doing the math in their head, that’s an increase of 240bn USD in just eleven years.

It’s a set of figures that can easily make your head spin, but behind the huge numbers there’s a story; that the use of IoT energy optimization is absolutely taking off, and that’s down to the difference it can make to businesses.

The fact is that, by jumping onto the IoT energy management bandwagon, you can reduce costs and waste dramatically while also tackling operational inefficiencies head-on.

Harnessing IoT operational efficiency and smart energy management is fast becoming a no-brainer, especially when it gives you the real-time data you need to see where those inefficiencies are lurking.

All of which means that reducing waste with IoT has never been easier or more important.

With that in mind, let’s take a look at how to make it happen, with a little help from Pelion's IoT solutions.

The Energy Efficiency Opportunity

IoT energy optimization presents businesses with a real opportunity to observe and overcome some of the most common inefficiencies, including:

• Peak overconsumption
  The use of large amounts of energy during peak hours, when there’s a greater demand for power. Usually, this is at the beginning and end of a working day, most often falling between 7am and 9am, and 4pm-7pm.
  By using IoT for smart energy management, you can see exactly how much energy is being used at these times, and where it's going.
  

• Idling
  Vehicle idling is a huge inefficiency across every industry that has vehicles. It may seem like a small action to keep vehicles running between jobs, but it soon adds up.
  A single heavy-duty truck can waste up to 2 litres an hour, so it’s not hard to see how a fleet can quickly become hugely inefficient.
  Pelion IoT solutions give users data from across the fleet for an overall view of idling waste. You can also look at idling by individual vehicle or driver, for when it’s less of a fleet-wide issue and more of an individual concern.
  

• Poor load management
  Poor load management is another one of those issues that has a cumulative effect on how efficiently a site functions.
  A badly managed load can lead to employees overexerting or injuring themselves, while vehicles suffer more wear and tear, failing quicker than expected. As the vehicles become more worn, the risk of accidents grows.
  It’s a domino effect, all started by poor load management.
  IoT operational efficiency boosts come in many forms. For instance, the impact of poor load management can be mitigated by analytics that monitor each device, allowing for predictive maintenance before a potentially harmful issue arises.
  That way, you keep efficiency levels on track, while also ensuring staff safety and equipment longevity.

Best Practices

For anyone looking at energy cost reduction, IoT comes with an armful of different tools, methods, and opportunities to make it happen.

These aren’t all complex systems either, but rather different ways of doing things, powered by IoT, that encourage smart energy management.

Real-Time Monitoring & Analytics

The power of real-time data and analytics should never be underestimated. By having up-to-the-second information flowing in, it becomes easier to take a macro view of operations at any given time.

With that, it’s easier to find inefficiencies and put processes in place that will see businesses reducing energy waste with IoT in no time.

As well as the holistic view, IoT gives you access to data on individual units, spaces, vehicles, employee actions, and more. With all that data it becomes possible to extract valuable insights, or train predictive AI models, for more energy-efficient operations

Automated Control Systems (HVAC, lighting, machinery)

Speaking of automated systems and IoT energy optimization, there are a ton of places where automation and IoT operational efficiency come together.

For example, environmental controls can easily be automated with the use of IoT sensors.

Connecting IoT enabled HVAC systems to automated control systems allows for an optimum temperature at all times, while lighting can be set to switch off automatically at certain times (if there’s enough light coming through the windows, or if there’s been no movement in the room, maybe).

The same goes for machinery that is not in use, or hasn’t been used for a set amount of time.

Predictive Maintenance

We’ve touched on this already, but predictive maintenance is can be a life saver, sometimes literally.

By using IoT to monitor the condition of vehicles and equipment, organizations are able to intervene and organize repairs before they fail.

Often that means equipment that works better for longer, as issues never reach a catastrophic tipping point, as well as a human workplace that is consistently safer.

Everything runs more efficiently, and energy is saved in the process.

Integration Across Systems

Why have multiple legacy systems operating independently, when reducing energy waste with IoT works best by feeding data into a single platform?

By integrating systems, the flow of data to actionable insights becomes smoother. Instead of pulling from multiple programs and sources, it’s all there, in one place.

Easy to see, quick to digest, and ready to use instantly.

Data-Driven Decision Making

All of that lovely data can be put to immediate good use. With such an all-encompassing view of energy usage across the business, the guesswork is taken out of decision-making.

There’s less need for trial and error, of trying different approaches and seeing what sticks.

Instead, IoT-led operational efficiency gives you a better shot at getting it right first time. Using forecasting based on previous data, as well as real-time visibility, decision-making becomes much more decisive.

Emerging IoT Technologies

IoT is still relatively new, so while certain processes and devices have already embedded themselves in everyday use, there are still exciting new technologies that are only just starting to fulfil their potential.

Take AI and machine learning.

Businesses are starting to realize just how powerful a tool machine learning is for predictive optimization, uploading pre-existing data to forecast and recommend action ahead of time. Because it's based on historical trends and events, the data and insight are compelling in their accuracy.

Edge Computing, meanwhile, allows for data to be processed quicker by being closer to its inception point, rather than at a single centralized hub (cloud storage, or a data centre for example).

Then there’s the energy saving possibilities of smart grids and connected infrastructure, which allow for a more closely monitored and better-managed flow of energy.

Lastly, managed IoT connectivity management platforms bring all of this functionality and more together in one place.

That puts a lot of power in one place, making it scaling and streamlining operations a far more attainable goal for millions of businesses.

Smart energy management, with IoT energy optimization

When you look at all the ways that IoT can be used to improve energy efficiency, it’s no surprise that the industry is growing at an exponential rate.

But when the rise in IoT energy optimization means a fall in the amount of waste energy, it’s hard not to be impressed.

Any business not already using IoT for integrated and managed systems, predictive maintenance, analytics, insights and more is missing out on efficiencies and savings that have a real impact on energy use.

To find out how IoT can help your organization waste less energy, talk to Pelion today.