What does Energy Consumption mean?

You might have read our energy productivity glossary of terms article where you can find a dictionary of basic concepts that will appeal to even the most advanced energy managers. But even if you are a non-energy professional interested in energy saving and energy management, they will surely be useful!

In this article, we take a closer look at the definition of the term “energy consumption“.

What does Energy Consumption mean?

Energy consumption refers to ALL the energy used to perform an action, manufacture something or simply inhabit a building.

Here are a few examples:

• In a factory, total energy consumption can be measured by looking at how much energy a production process consumes, for example, by making car parts. This will include water, electricity, gas… any energy source needed to transform the raw material into the final product
• In a household, energy consumption includes electricity, gas, water, and any other energy used to live comfortably.
• The energy consumption of transportation includes how much diesel or gasoline vehicles consume to run.

It is essential to understand that energy consumption does not necessarily come from a single energy source. Indeed, it is a common misconception to think that to save energy you have to save electricity whereas it could be a totally different energy source that has the greatest impact on a certain process.

Looking closely at the definition of energy consumption, it means that the entire production process must be evaluated. If you are part of a value-added process such as industrial metallurgy (like TACSA, for instance) the process does not end when the final product is manufactured. Indeed, if your shipping fleet brings them to the customer, the fuel for this delivery fleet is also part of your energy consumption.

How much does My Energy Consumption Cost?

Given the above information, figuring out the answer to this question is easy. In economic terms, your energy consumption is the sum total of your energy bills. Unless you have a fix fee with your provider, that cost will vary due to a series of factors. These include the prices of energy, the price that your providing is offering, the time of the day when you consume, the power you have contracted with your provider, and more.

Calculating energy consumption is the first step before moving on to energy savings and energy efficiency. It helps to come up with two very interesting figures if you plan to save energy.

How much to invest in an energy management system

Knowing how much you would have to invest in an energy management system that would help you achieve continuously, verified savings.

You can use our free-to-download Excel template to create your own energy efficiency budget: formulas are built-in to help you automatically calculate the estimated investment and ROI for your energy efficiency project.

Understanding the energy savings potential of your buildings

Understanding the savings potential of your facilities is almost as important so you can identify where to begin saving. By knowing this, you can focus your efforts in an area that will show better return. It will help you plan your initiatives better.

If you find yourself at this stage, we invite you to contact us directly. Our online EMS platform can show your energy savings potential and gives you recommendations on where to start saving energy. You can also access the free demo to have a first overview before arranging a call with our team.