Three ways South African companies can improve energy management
Combating spiralling costs with a data-driven approach to electricity usage
Johannesburg, South Africa – 29 September 2022 – TechSoft International, the exclusive partner for TIBCO Software, says the recent 9.61% electricity tariff increase sees South Africa joining other international markets in having to manage skyrocketing energy costs.
“Local companies need to find ways to reduce energy consumption and adjust to annual price increases amidst ongoing uncertainty around the reliability of the power grid infrastructure. Optimising energy consumption means something different to everyone. But what all organisations share in common is that with increasing prices and sustainability imperatives, energy costs have become one of the most important operating considerations,” says Pedro Tembe, senior account executive at TechSoft International.
Energy management is the process of tracking and optimising energy consumption and its use which has become critical in how organisations conduct business. Decision-makers must now focus on energy-saving methods to promote more sustainable costs for a business and more sustainable practices for the planet. This will also assist the company in aligning its ESG (environmental, social, and corporate governance) imperatives as part of its reporting requirements.
Getting started with this process requires the business to identify its energy sources. This is made possible by getting a wide view of data. Using analytics, the company can then identify ways to optimise energy management.
“Energy management helps companies control costs and meet their environmental goals. This requires the development of strategies based on reducing, timing, and forecasting energy consumption. Regardless of industry sector, every company’s energy journey falls on a spectrum that benefits from real-time data, discovery, action, and continuous improvement,” adds Tembe.
Reducing energy usage
One significant way a company can reduce its energy usage is through process optimisation. By eliminating unnecessary or wasteful processes or procedures, businesses can reduce energy use and speed up production. They can also shut off equipment that is not in use. Alternatively, using recent eco-friendly technology can help companies lower their energy bills.
Timing energy usage
Of course, organisations need to time their energy usage to understand when they are using power and at what cost. For example, as South Africa approaches summer, heat waves can cause demand to surge, straining generation capacity and putting additional pressure on the grid. The rising use of HVAC (heating, ventilation, and air conditioning) systems will likely result in the return of load shedding during peak times, as has happened in previous years.
Another concern is high peak time tariffs. Eskom’s proposed Homeflex for residential customers will, if approved, see the introduction of a time-of-use tariff. According to power suppliers, existing tariff structures are outdated and must be modernised to reflect today’s changing energy environment.
“With pricing already varying during peak hours, corporates must use advanced analytics to time their usage to optimal pricing. Alternative energy sources that store energy (for instance, solar panels feeding batteries) can be used to provide cheaper power during these peak windows,” according to Tembe.
Forecasting energy usage
Companies that predict and forecast energy use can plan and make more informed energy choices. Analysing the energy market can help companies decide how to save more—whether through a full energy audit or saving money to replace insulation.
This is especially relevant in South Africa, with the December 2022 deadline quickly approaching for the mandatory display of Energy Performance Certificates (EPC) on buildings. Failure to comply with the regulation can result in significant financial penalties, jail time for property owners, or both.
“TIBCO’s tools integrate to support a flexible strategy for reduced and stable costs company wide. With energy management, businesses can be empowered to make better decisions across all forms of energy usage. Wherever they want to save, and whatever their strategy is, TIBCO solutions can help by leveraging our extensive local experience across many successful partnerships,” says Tembe.