7 Energy Management Strategies Explained

Energy management strategies are; planning, conservation, analysis, negotiation, tracking and measurement, reporting, control and implementation.

Energy management is a systematic process of controlling energy production, distribution and consumption, in order to maximize the use of energy.

Parts of energy management are planning, monitoring and control.

This article discusses energy management meaning, parts, and strategies;

-Meaning of Energy Management

-Parts of Energy Management

-Strategies for Energy Management





Energy Management Meaning

Energy management is an organized approach whereby energy production and consumption are conducted in a structured and optimal manner.

The concept of energy management can be defined based on its relationship to other concepts, as follows;

Energy management is the coordination of energy-related processes through energy conservation, and energy efficiency, with an aim to achieve sustainability.

It is also possible to define energy management on the basis of the conservation of energy resources;

Energy management is a scheme involving measures and methods to reduce the wastage of energy resources.

energy management, energy resources
Global Energy Resource Potential as A Yardstick for Energy Management (Credit: Delphi234 2014 .CC0 1.0.)


Some of the objectives of energy management include economic stability and environmental sustainability [2]. This understanding can be used when defining the concept;

Energy management is a practice whereby energy production and consumption are optimized, so as to protect the environment from effects like climate change, and to sustain the economy.

The process of energy management is systematic and typically involves a number of steps.

Energy management is a systematic process that involves planning, monitoring and control of energy usage, to reduce wastage and optimize energy-related processes.

One vital tool for energy management is an energy management system [5]. This tool can be included in the definition of energy management.

Energy management is the use of an energy management system, policy or framework, to analyze, strategize and optimize the use of energy.

Finally, energy management is often a practical process in buildings;

Energy management is the practice of analyzing, monitoring and controlling energy usage and energy performance in a building [3].


Parts of Energy Management

The 3 parts of energy management are planning, monitoring and control.

Planning refers to the development of a scheme or outline for energy management.

This helps to organize the process into definite segments or steps, based on identified objectives and targets. Effective planning is necessary in order for energy management to be effective.

Monitoring is the consistent analysis of energy usage data, to ensure that targets are met and thresholds are not exceeded.

Through monitoring, energy users and managers are able to keep track of the trend of energy production and consumption, and this helps in identifying problems and making decisions to improve the level of optimization.

Control in energy management, is the implementation of decisions that have been made based on analysis and monitoring of energy use. It includes measures which are taken to regulate and optimize the rate of energy production and consumption.


Energy Management Strategies

1). Planning (as one of the Energy Management Strategies)

Planning is a key strategy in energy management.

This is because a concise plan is needed to effectively manage energy consumption [6].

Planning helps to organize the energy management scheme into practical steps, to meet the set targets. It also helps to divide the energy management scheme into specifics tasks that can be allocated and handled differently and effectively.

With planning, it is possible to achieve savings because the various aspects of energy consumption are outlined.

2). Conservation

Energy conservation is one of the primary goals of energy management.  

It involves efforts to reduce energy consumption by minimizing the amount of energy that is used.

Energy conservation is an important practical concept, that finds relevance in smart houses and other buildings. To conserve energy, energy efficient appliances like smart refrigerators, thermostats, LED lights, and solar chargers can be used [1].

Planning is needed to effectively conserve energy.

3). Energy Management and Analysis (as Energy Management Strategies)

Analysis of energy data is important in energy management, because it provides information regarding the trend of energy consumption [7].

In order to achieve this, an energy management system collects data, and evaluates this data, to identify patterns that can be used to classify the data.

Through analysis, some important parameters can be defined, such as peak level of energy use, minimum energy use, and energy consumption changes across various time intervals.

Energy data analysis is an integrated function performed by both hardware and software components of the energy management system.

4). Negotiation

Negotiation is a strategy for managing energy cost.

Through negotiation, marketers can be made to reduce the cost of energy [4]. Negotiation can also lead to improvement in the quality of energy services.

In order for negotiation to.be effective, it must be done with a knowledge of the energy use conditions and areas requiring improvement. This knowledge can be acquired through analysis.

5). Tracking and Measurement (as one of the Energy Management Strategies)

Tracking and measurement are necessary to monitor the use of energy, and observe the prevalent trends in the way energy is consumed.

When there is a target or benchmark for energy consumption, tracking helps the user to directly observe if this target is being met. Tracking also provides a means of comparison between past and present energy consumption patterns.

With regards to the goal of achieving sustainability, tracking and measurement provide data to show how well the guidelines for achieving this goal, are being met.

The performance of energy systems can be evaluated through tracking and measurement as well. This provides a basis for improvement.

6). Reporting

In energy management, reporting goes along with tracking and measurement.

The compilation of a report by an energy management system, helps to summarize and simplify the results of data analysis.

Some areas of importance of reporting, include assessment of progress in meeting energy targets, monitoring, and identification of failures and successes in the energy supply process.

Reporting helps the user to identify the impact of energy usage on the economy, society and environment.

By studying energy management reports, it is possible to derive information on the role being played by energy consumption in climate change, food insecurity, environmental degradation, and economic stability.

7). Control and Implementation (as Energy Management Strategies)

Through control and implementation, the information on energy usage which has been gathered, can be used effectively.

Control and implementation involve regulating the energy consumption of a facility or building. This can be done through the practice of energy efficiency, by using energy efficient technologies to optimize the productivity of energy usage.

Control and implementation can also be ensured using computerized systems to regulate the operation of energy-dependent equipment and facilities like lighting, water supply systems, and air conditioning systems.


Energy management is the process of optimizing the process of energy production, distribution and consumption, in order to achieve environmental, social and economic sustainability.

The three (3) parts of energy management are planning, monitoring and control. These represent stages in the management process, and help to achieve overall effectiveness.

Strategies of energy management are;

1). Planning

2). Conservation

3). Analysis

4). Negotiation

5). Tracking and Measurement

6). Reporting

7). Control and Implementation



1). Antunes, D.; Gaspar, R.; Lino, J.; (2012). “Energy efficient appliances and energy efficient behaviors: From consumer’s assessment to behavior intervention.” In book: Energy Efficiency: Methods, Limitations and Challenges, Nova Science Publishers. Available at: https://www.researchgate.net/publication/235352511_Energy_efficient_appliances_and_energy_efficient_behaviors_From_consumer’s_assessment_to_behavior_intervention. (Accessed 6 April 2022).

2). Awan, U.; Imran, N.; Muneer, G.; Zakariya, B. (2014). “Sustainable Development through Energy Management: Issues and Priorities in Energy Savings.” Research Journal of Applied Sciences, Engineering and Technology 7(2):424-429. Available at: https://doi.org/10.19026/rjaset.7.271. (Accessed 6 April 2022).

3). Fichera, A.; Volpe, R.; Cutore, E. (2020). “Energy performance measurement, monitoring and control for buildings of public organizations: Standardized practises compliant with the ISO 50001 and ISO 50006.” Developments in the Built Environment 4:100024. Available at: https://doi.org/10.1016/j.dibe.2020.100024. (Accessed 6 April 2022).

4). Hoai, N. B. K.; Jung, J. J.; Camacho, D. (2018). “Consensual Negotiation-Based Decision Making for Connected Appliances in Smart Home Management Systems.” Sensors 18(7):2206. Available at: https://doi.org/10.3390/s18072206. (Accessed 6 April 2022).

5). Julaihi, F.; Ibrahim, S. H.; Baharun, A.; Affendi, R.; and Nawi, M. N. M. (2017). “The effectiveness of energy management system on energy efficiency in the building.” AIP Conference Proceedings 1891, 020069 (2017). Available at: https://doi.org/10.1063/1.5005402. (Accessed 6 April 2022).

6). Păunescu, C.; Blid, L. (2016). “Effective energy planning for improving the enterprise’s energy performance.” Management & Marketing: Challenges for the Knowledge Society 11(3). Available at: https://doi.org/10.1515/mmcks-2016-0013. (Accessed 6 April 2022).

7). Strielkowski, W.; Firsova, I.; Lukashenko, I.; Raudeliuniene, J.; Tyaronaviciene, M. (2021). “Effective Management of Energy Consumption during the COVID-19 Pandemic: The Role of ICT Solutions.” Energies 14(893). Available at: https://doi.org/10.3390/en14040893. (Accessed 6 April 2022).

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