What is Energy Management? And why you should study it?


How to ‘Save Energy’ has been the topic of discussion for decades now but the imperative change and result to it is quite slow-paced.

Energy is simply a system’s ability to do work and the sources are classified as Renewable and Non-renewable i.e. Solar, Wind, Thermal and Oil, Natural Gas, and Nuclear.

Managing these resources adequately to sustain them longer is the ultimate goal, considering the rising concerns of Global Climate Change.


The process by which an organization or sector manages how much energy they produce, and how to control and conserve that energy can be termed Energy Management. The industrial sector today is turning to managing energy as an effective method to save costs.

The utilization, practices, and requirements might differ depending on the type of sector involved, but the fundamental principles remain the same which involve;

Collection of energy data, Recognizing opportunities to save energy, Taking actual actions & Tracking progress.


To conserve energy, managing it first is a vital step forward. Whether you relate to energy management with cost savings, awareness surrounding the concept, or by making better alternative use of it, it doesn’t matter.[1]  Conserving energy is no option as energy consumption has massively increased with the increasing population.

As per the data by BP Statistical Review of World Energy, In the year 2000, India consumed 441 Mtoe (million metric tonnes of oil equivalent) which in 2020 has risen up to 1,018 Mtoe and is expected to reach 1,440 Mtoe by the year 2030.

We must save energy in general to reduce the dependency on fossil fuels that are ever depleting and save our only planet.

Managing energy helps an organization in;

  • Being more cost-efficient
  • Controlling the existing damage by reducing carbon emission
  • Reduce dependency on non-renewable resources


Some misconceptions about energy management are that it involves intricate analysis, big capital investment, and expensive equipment & tools, but on the contrary, it takes efforts on a much smaller scale, to begin with.

To set up a successful Energy Management strategy, the following are the steps involved;

Collecting Data

The energy data of an organization comes from its monthly utility bills and manual checks. Setting up a smart digital meter to record monthly data consumed is one of the ways to analyze the collected data later.

Recognising Opportunities

When you start looking into your data and analysing it, you will find information that might help you. Whether it’s those new printers you added last month or the usage of electricity after office hours, recognizing these things and finding solutions to curb the usage of energy will help you to contribute to saving the consumption of energy and also cut down your energy bills.

Action Plan

Collecting data, recognising problems and finding solutions to them is not enough. Taking appropriate action on them is what we need. Identify the ways to reduce energy consumption, create awareness among the team, switch to alternative energy sources such as solar, reward the team for inculcating sustainable green habits in the office, and make small changes in the way systems are run. For example, encourage team and teammates to switch off their laptops or desktops when leaving the office or lock their screens while they are away for lunch or tea break. These small steps will help reduce the carbon footprint and reduce the adverse effect on the environment.

Tracking Progress

Monitoring & keeping track of your progress is the final important step to staying consistent with your Energy Management Plan. Share the reports with your team for their motivation.


When it comes to practically implementing Energy Management methods in industry and organization, leading institutes like MIT School of Distance Education have a Post Graduate Diploma program specialization in Energy Management that brilliantly brings together the understanding of energy generation, management and sustainability.