IoT in Energy Management

Making energy management more efficient is one of the foundations of Industry 4.0. With rising costs and resource scarcity, it is essential to find solutions to cut consumption and eliminate waste. The IoT promotes operational efficiency and process automation in various sectors, and the energy sector is among those that can benefit most from it. In fact, according to a report by Transforma Insights and 6GWorld, the adoption of IoT solutions in energy management systems can reduce electricity consumption by more than 1.6 petawatt hours (PWH) by 2030.

In this article, we analyze some of the main advantages of IoT in energy management.

Benefits of IoT in energy management

Improves monitoring of energy consumption

The Internet of Things allows to monitor key system parameters remotely and in real time. It monitors and tracks the performance of machines and electrical panels to have a constant view of consumption and identify any anomalies before failures occur.

Reduces energy consumption

The application of IoT systems in energy management entails a significant economic advantage. To reduce energy expenses, more and more companies are investing in IoT, with a global market expected to grow from $70.58 billion in 2023 to $222.56 billion by 2030. Energy saving is possible through intelligent metering, the monitoring of energy consumption, and the real-time availability of consumption data.

It promotes the automation of energy management

An energy-saving IoT solution puts companies in a position to automate numerous processes. Thanks to the analysis of energy consumption data collected by IoT devices, it is possible to develop more efficient and successful energy management strategies. All automatically and without having to resort to carrying out many manual activities.

Increase sustainability

Smart energy management systems can increase the sustainability of companies and the production process. In fact, compared to conventional technologies, IoT solutions are 50% more efficient energy-wise (source ACEEE). In this way, according to the report by Transforma Insights and 6GWorld, by 2030 IoT systems will save more than eight times the energy they consume, equal to a net saving of 230 billion cubic meters of water and eliminating one gigatonne of emissions of CO2.

In addition to the obvious benefits for the environment, sustainability represents a business and image opportunity for companies.

Prevents malfunctions and interruptions

IoT is a fundamental element for predictive maintenance. Precisely from here emerges a further advantage of the use of IoT systems in energy management. Through predictive algorithms, companies can identify possible problems in their operations before they occur. This way they can take preventative action instead of having to deal with real damage such as malfunctions, overloads, and outages.

It allows you to predict future energy consumption

The integration of IoT technologies and machine learning algorithms with an energy management system allows you to predict your future energy consumption. In doing so, businesses gain a huge advantage in planning their business costs and pricing models. While energy companies can create a more solid strategy for producing energy.