The industrial sector accounts for a large share of energy demand and holds enormous potential for improving industrial energy efficiency and reducing emissions. In the United States alone, the industrial sector is responsible for about 35% of total end‑use energy consumption and 33% of total energy consumption, according to the Energy Information Administration.
Implementing comprehensive industrial energy management strategies, from real‑time monitoring to on‑site generation, energy storage and low‑carbon technologies—can deliver significant energy cost savings, operational efficiency and resilience. Studies of more than 300 energy management case studies across 40 countries showed average energy savings of 11%, according to Energy Monitor, and energy costs can represent up to 50% of total production costs. That means improvements in energy performance can have a big impact on profits. e2Companies supports industrial companies with strategic energy management, helping them manage energy consumption, reduce energy losses, and achieve energy independence.
Through our Virtual Utility® platform and R3Di® System, we provide on‑site generation, battery energy storage system solutions and advanced software to optimize energy use and ensure uninterrupted power for industrial operations.
Overview of Industrial Energy Management
Industrial energy management encompasses all the processes, technologies and practices used to monitor, control and reduce industrial energy consumption. It focuses on energy efficiency, energy performance and operational efficiency across manufacturing lines, HVAC systems, motors and other equipment. Because the industrial sector accounts for about one‑third of total U.S. energy use, there is enormous opportunity for improvements in both industrial energy efficiency and industrial sustainability.
An effective strategy begins with gathering accurate energy data on usage across equipment, processes and buildings. From there, companies can set performance baselines, benchmark against peers and implement energy efficiency strategies that achieve measurable improvements.
Managing energy consumption across all energy sources helps companies save money, improve their energy intensity, reduce carbon emissions, and support sustainability goals.
Energy Management Systems and Data Analytics
At the heart of any industrial energy management program is an energy management system (EMS). These systems collect energy data from meters, sensors and production equipment; analyze usage patterns; and provide actionable insights for reducing consumption and improving industrial energy efficiency. An EMS can also automate load control—such as shifting non‑critical processes to off‑peak hours when electricity prices are lower—to lower energy costs and reduce the facility’s energy intensity.
Advanced EMS platforms allow users to set alarms, track performance indicators, and integrate energy efficient products like variable‑frequency drives and efficient motors into a comprehensive strategic energy management program.
EMS technology helps industrial facilities identify energy losses, optimize resource usage, and maintain reliable energy supply. By continuously monitoring power flows, EMS platforms can verify the impact of energy efficiency strategies and guide further energy saving initiatives.
e2Companies integrates EMS functionality directly into its Virtual Utility®.
The platform uses AI-powered software to monitor and control the on‑site R3Di® System, battery storage and renewable energy assets while gathering data on facility loads.
It can identify patterns such as peak demand periods and asset utilization while also monitoring weather, market prices and grid conditions.
This helps companies participate in demand response programs to reduce high fees for using power during peak times and earn incentives for curtailing their consumption.
For instance, one Florida stadium is expected to save approximately $400,000 per year by reducing demand charges while earning more than $3 million annually in financial incentives from its utility company.
Integrating Renewable Energy and Battery Storage
Energy management today is inseparable from renewable energy and energy storage systems.
Solar panels and wind turbines provide emissions‑free power, but their intermittency and variability can disrupt industrial operations. Pairing renewable energy sources with battery storage enables facilities to store excess energy and dispatch it later, smoothing output, supporting self‑consumption and reducing dependence on the grid.
These hybrid systems help companies transition to clean energy while maintaining reliability and ensuring that excess energy is not wasted.
e2Companies’ R3Di® System can carry a facility’s full load for up to 20 minutes while the generator starts. This battery energy storage system is built with lithium iron phosphate batteries that deliver high energy density, deep cycling capability and a life expectancy of up to 20 years, exceeding typical lithium‑ion batteries.
When coupled with an on‑site solar array or wind turbine, the system can absorb midday PV generation and discharge it during evening peaks, avoiding high demand charges and providing stored energy for later use. The R3Di® also features a double‑conversion inverter and a redundant operating system with no single point of failure, ensuring maximum reliability and supporting sustainability goals.
Because the R3Di® pairs a prime‑rated natural‑gas generator with battery energy storage, it acts as both a backup system and a primary power source during periods of grid stress. The generator provides instantaneous full‑load pickup and sustained power during long‑duration outages, ensuring continuity in industrial operations and avoiding unplanned downtime. At the same time, the battery smooths voltage sags and spikes, protecting sensitive industrial equipment and enhancing operational efficiency. The system also supports DC fast EV charging and integrates seamlessly with on‑site renewable energy sources, enabling industrial facilities to more easily transition to clean energy and reduce reliance on the grid.
Continuous Improvement and Operational Efficiency
Energy management is an ongoing process.
After installing an EMS and on-site power generation and battery energy storage, companies should regularly revisit energy data to find new opportunities for savings. The Energy Monitor study noted that companies continue to achieve efficiency gains even after 12 years of their initial implementation of energy management systems.
This is true for Virtual Utility®, too.
By implementing the R3Di® System along with monitoring software, known as Grove365®, the Florida stadium is expected to continue saving more than $400,000 in peak demand charges each year while earning more than $4.7 million in incentives through the Florida Power and Light program over 15 years.
Beyond direct energy cost savings, companies should consider the following metrics to measure success:
- Increases in uptime and its production value, compared with estimates of previous downtime they experienced each year
- Reductions in the cost of maintaining and fueling diesel generators
- The value of additional usable real estate from no longer needing numerous generators and infrastructure, which can be significant for data centers and other mission-critical organizations
- Reductions in carbon emissions
Monitoring these metrics and reporting on them periodically can help you determine your best opportunities to continue to optimize energy consumption and costs.
e2Companies includes ongoing monitoring and reporting with its Virtual Utility®. To analyze your facility's energy needs, develop the right energy management strategy and forecast your costs and savings, schedule a discovery call.
