Changing EMS Channels to Add More Customer Value

Facilities and energy managers have been employing energy management systems (EMSs) to reduce costs and increase performance within commercial buildings, industrial facilities, and campuses. Commercial electrical contractors are the primary source for installing EMSs. As the energy marketplace has evolved, the capabilities within EMS solutions have expanded along with the types of organizations that offer energy management as an integral part of their solutions.

The More Recent Capabilities of EMS Solutions

Changes in the power industry have introduced more pricing options from multiple alternative energy sources, both local and remote. EMSs have performed internal cost allocations but additional requirements now exist for reporting on power sources and uses. There are opportunities for cost reductions with real-time consumption monitoring, actions based on energy data analytics, demand response programs, and demand side management programs that require using sophisticated tools to engage in advanced load planning.

Help from Outsourcing to ESCOs

These advanced capabilities can be managed by facilities management or outsourced to an energy service company (ESCO). The value proposition for an ESCO is that they have experience collaborating with building management to consolidate a holistic approach to energy and achieve substantial savings. The following diagram shows the nature of ESCOs’ efforts and the related evolution from EMSs.

Additional Options from New EMS Sales Channels

(Source: Guidehouse Insights)

One challenge for many facilities managers is that they have had experiences with vendors that made bold promises of power savings that never materialized. However, standard practice for ESCOs involves performance contracts where the ESCO only gets paid a share of the savings. This creates a strong incentive for the ESCO to use every tool at its disposal to achieve results.

An important component in this effort involves bringing in an advanced EMS application with which the ESCO is familiar. Using a more sophisticated EMS enables the ESCO to optimize other elements of the solution to achieve superior results. The customer’s choice of EMS is fundamental to their success, and that EMS must have a full suite of capabilities and ongoing support.

The Growth of EMS Integration with Master Systems Integrators

Although ESCOs are mainly an option for existing facilities, systems integrators (SIs) work with organizations that are building new or reconfigured industrial facilities. SIs use their skills to create purpose-built automated systems that meet customer goals. They do this by combining discrete automation systems into a whole solution.

Little value was associated with treating power as an input when the options for buying energy were limited. But with the increasing complexity associated with buying power, SIs are integrating EMSs into their offerings to optimize costs and meet environmental goals.

Picking the Right EMS Solution

It is important for a facilities manager to select the best EMS for their needs, especially when the EMS plays a central role in a performance contract or will be leveraged into larger data systems. In this scenario, the need to select the optimal EMS solution that will have ongoing enhancements and proper technical support is amplified. On December 15, Guidehouse Insights’ webinar The Growing Impact of EMS Solutions: Evolving Value-Added Sales Channels for EMS will detail the opportunities associated with EMS configuration through these new channels.