Energy Management Terms
Clearly Explained

From EnPI to M-Bus to ISO 50001 – here energy managers, decision-makers and the curious will find concise, practical definitions without unnecessary jargon.

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A

Amortisation Period (Payback Period)

The time after which an investment – for example in energy management software or metering equipment – has been fully recovered through achieved savings. For EMS projects at mid-market companies, the payback period is often 12–36 months, particularly when BAFA (German federal) subsidies are taken into account.

→ What does an EMS really cost?

Active Energy Price (Unit Rate)

The consumption-based component of an electricity tariff, expressed in pence or cents per kilowatt-hour (p/kWh or ct/kWh). It is charged on the actual amount of energy drawn and forms, alongside the demand charge, the second main component of an electricity bill for commercial and industrial customers.

Connection Point (Supply Point)

The handover point at which electrical energy is delivered from the grid operator to the customer. Depending on the size of the business, supply is at low, medium or high voltage. The connection point forms the basis for billing and for the metering concept within the energy management system.

B

BAFA (Germany's Federal Office for Economic Affairs and Export Control)

The German federal authority responsible for administering and disbursing energy efficiency subsidy programmes. BAFA administers, among others, the BEW programme (Federal Subsidy for Energy and Resource Efficiency in Industry) and carries out spot-check audits to verify compliance with mandatory energy audit obligations.

→ BAFA funding in detail

BEW (Federal Subsidy for Energy and Resource Efficiency in Industry)

Germany's main state subsidy programme for energy efficiency investments in businesses. BEW is divided into four modules: Module 1 (cross-cutting technologies), Module 2 (renewable heat), Module 3 (EMS software and metering equipment) and Module 4 (process optimisation). Subsidy rates range from 25% (large enterprises) to 45% (small enterprises).

→ BEW Module 3 for EMS software

CHP Unit (Combined Heat and Power / Cogeneration)

A system for the simultaneous generation of electrical energy and heat (cogeneration) from a single fuel source. CHP units are operated on-site to minimise transmission losses. In the energy management system, both self-consumption and grid export from the CHP unit are recorded and balanced.

Reactive Power / Reactive Power Compensation

Reactive power is the portion of electrical energy that oscillates between generator and load without being converted into useful work. It arises primarily from inductive loads (motors, transformers). Grid operators charge for excessive reactive power via the power factor (cos φ). Capacitor banks can compensate for reactive power and thus reduce electricity bills.

C

CO₂-Equivalent / Carbon Footprint

A unit of measure for assessing the climate impact of different greenhouse gases (CO₂, methane, nitrous oxide, etc.) relative to CO₂. Within an energy management system, consumption data can be automatically converted into CO₂ emissions – essential for ESG reports, sustainability reports and ISO 50001 auditors.

D

DIN EN 16247 (Energy Audit Standard)

The European standard defining requirements for energy audits. Companies subject to mandatory energy auditing under German law (EDL-G) must undergo an audit to DIN EN 16247-1 every four years. The audit identifies savings potential and frequently forms the basis for a subsequent ISO 50001 certification.

→ DIN EN 16247 in detail

Demand Charge (Capacity Charge)

The power-based component of an electricity tariff for industrial and commercial customers, calculated in euros (or pounds) per kilowatt (€/kW) of the measured annual peak demand. The demand charge can account for 30–50% of total electricity costs for industrial customers. Peak demand management can permanently reduce this charge.

E

EDL-G (German Energy Services Act)

Germany's Act on Energy Services and Other Energy Efficiency Measures obliges non-SMEs to carry out regular energy audits to DIN EN 16247-1 (every four years). Companies with a certified energy management system (ISO 50001) or EMAS registration are exempt from this audit obligation.

→ Am I subject to mandatory auditing? (EDL-G check)

EEG (German Renewable Energy Sources Act)

Germany's key legislation for promoting renewable energy. It governs feed-in tariffs for PV and wind installations as well as the EEG levy on electricity consumers. For industrial sites with high self-consumption from renewable sources, the EEG contains exemption provisions (self-supply privilege).

EMAS (Eco-Management and Audit Scheme)

A voluntary EU environmental management system that goes beyond the requirements of ISO 14001. EMAS-registered companies are exempt from the mandatory energy audit obligation under EDL-G. Introducing an energy management system to ISO 50001 can be effectively combined with EMAS registration.

Energy Audit

A systematic analysis of energy use and consumption within an organisation. The objective is to identify savings potential. The audit is conducted by accredited auditors, documents energy flows, compares consumption data and recommends prioritised measures. Under DIN EN 16247-1, mandatory every four years for non-SMEs.

→ Energy audit DIN EN 16247

Energy Efficiency

The ratio between the output achieved (products, services, comfort) and the amount of energy used to achieve it. The higher the energy efficiency, the less energy is consumed per unit of output. Energy efficiency is the core objective of ISO 50001, and Alligator Analytica measures it through Energy Performance Indicators (EnPIs).

Energy Management System (EMS)

A combination of organisational processes and technical software for the systematic collection, analysis and optimisation of operational energy consumption. A standard-compliant EMS under ISO 50001 encompasses a metering concept, energy policy, EnPIs, action plans and continual improvement. Alligator Analytica is a BAFA-listed EMS software solution.

→ Alligator EMS software

EnPI (Energy Performance Indicator)

A quantitative value describing the energy efficiency of an organisation, process or installation. Examples: kWh per tonne of product, kWh per square metre of floor area, kWh per vehicle kilometre. EnPIs are the central management and evaluation instrument in ISO 50001 and are continuously monitored within the EMS.

→ ISO 50006: EnPI methodology

G

BMS (Building Management System / GLT)

A central system for monitoring and controlling building services such as heating, ventilation, air-conditioning (HVAC), lighting and access control. In energy management, the BMS feeds consumption data to the EMS via standardised protocols (BACnet, Modbus). Alligator Analytica supports integration with common BMS platforms.

I

ISO 50001

The international standard for energy management systems (EMS). It defines a Plan-Do-Check-Act (PDCA) cycle for continual energy efficiency improvement. Certified companies are exempt from the mandatory energy audit obligation under EDL-G and are entitled to reduced energy and electricity taxes under German law. ISO 50001 certification is a prerequisite for BAFA BEW funding.

→ ISO 50001 in detail

ISO 50003

Standard for requirements applicable to bodies certifying energy management systems. It ensures that certification bodies operate competently, impartially and consistently. When selecting a certification body, organisations should ensure accreditation to ISO 50003 – only then is the certification recognised for BAFA purposes.

→ All relevant standards

ISO 50006

Guidance on measuring energy performance using energy baselines (EnB) and energy performance indicators (EnPI). ISO 50006 describes how reference values are correctly established, EnPIs are calculated and adjustments are made for changed operating conditions (production volumes, weather).

→ ISO 50006 in detail

ISO 50015

Standard for the measurement and verification of energy performance in organisations. It describes how achieved energy savings are correctly measured, documented and verified – important for substantiating BAFA grant applications and for reporting to auditors.

→ ISO 50015 in detail

K

KWK / CHP (Combined Heat and Power)

Technology for the simultaneous generation of electrical energy and usable heat from a single energy source (natural gas, biogas, hydrogen). CHP plants achieve overall efficiencies of 80–90%, compared with 35–45% for separate generation. An EMS precisely records and balances CHP generation and consumption data.

L

Peak Demand / Peak Demand Management

Peak demand is the short-term maximum value of electrical power drawn (measured as a 15-minute average). In standard industrial tariffs, the single highest peak demand of a year determines the demand charge – even if it occurred only once. Active load management (staggered motor start-ups, load reduction during peak periods) can substantially reduce peak demand.

→ Calculate peak demand costs → Peak demand management in logistics

M

M-Bus (Meter-Bus)

A European standard (EN 13757) for remote reading of utility meters – electricity, gas, heat, water. M-Bus enables wired readout of up to 250 meters over a two-wire connection at low power consumption. Widely used in building automation and energy management systems. Alligator Analytica supports M-Bus natively.

→ Alligator metering & hardware

Metering Concept

A structured plan defining which energy carriers are measured at which points in the organisation, with what accuracy, at what interval and via which protocols. A sound metering concept is the foundation of every ISO 50001-compliant EMS. Alligator Analytica develops metering concepts together with the customer and adapts them as required.

Data Logger

A device that automatically records measurements from sensors and meters at defined time intervals. Modern data loggers transmit data via GPRS, LTE or Ethernet to a central EMS. The Alligator gateway "Alligate" functions as an intelligent data logger with integrated data pre-processing.

→ Alligator hardware (Alligate gateway)

Modbus

A widely used industrial communication protocol for querying measurements from programmable logic controllers (PLCs), variable-frequency drives, energy meters and other field devices. Modbus RTU runs over RS-485; Modbus TCP/IP runs over Ethernet networks. Alligator Analytica supports both Modbus RTU and Modbus TCP/IP.

MQTT (Message Queuing Telemetry Transport)

A lightweight publish-subscribe protocol for IoT communication. MQTT is suited to low-bandwidth environments and is the de-facto standard for smart sensors, industrial IoT gateways and cloud connections in energy management. Alligator Analytica supports MQTT for the integration of modern IoT sensors.

N

Low / Medium / High Voltage

Classification of electrical networks by voltage level. Low voltage (up to 1 kV) for small businesses and households; medium voltage (1–110 kV) for mid-sized industrial sites with their own transformer; high voltage (from 110 kV) for large industry and transmission networks. The voltage level determines tariffs, metering requirements and grid charges.

O

OPC-UA (OPC Unified Architecture)

A platform-independent industrial communication protocol that makes machine, process and energy data from control systems (PLCs, SCADA) available in a standardised form. OPC-UA is considered the most important protocol for Industry 4.0 data integration. Alligator Analytica supports OPC-UA for seamless connection of production machinery.

→ Data pipelines & protocol integration

P

Photovoltaics (PV)

Technology for the direct conversion of sunlight into electrical energy. In corporate energy management, PV yield, self-consumption and grid export are recorded and balanced precisely. An EMS recognises when self-consumption can be maximised or when peak demand can be offset by PV surplus.

S

SCADA (Supervisory Control and Data Acquisition)

A system for monitoring and controlling industrial processes in real time. SCADA systems collect measurement data from distributed installations (sensors, PLCs) and visualise them centrally. In energy management, SCADA systems provide process data which are integrated into the EMS via OPC-UA or Modbus to enable production-related EnPI calculations.

Smart Meter / Intelligent Metering System

A modern electricity meter with digital communication capability (gateway and meter) that transmits consumption data in real time to grid operators and consumers. Smart meters are mandatory in Germany for connections above 6,000 kWh/year (Smart Meter Rollout). EMS software such as Alligator Analytica can process smart meter data directly.

PLC (Programmable Logic Controller)

An industrial control computer that controls machines and manufacturing processes in real time. PLCs supply valuable process and energy data to the energy management system via protocols such as Modbus, OPC-UA or Profibus – for example compressor run times or furnace temperatures.

Peak Shaving (Demand Management)

Active control of electricity consumers to prevent or reduce short-term power peaks. Typical measures include staggered start-up of large motors, temporary reduction of cooling systems and deferral of flexible loads. A good EMS displays peak demand in real time and enables automatic alerts when threshold values are exceeded.

Sub-Meter

Downstream meters that separately record the energy consumption of individual plant, machinery, building sections or departments. Sub-meters form the basis for cost allocation by consumption cause and for the granular derivation of EnPIs at process level. The more sub-meters available, the more precisely an EMS can localise savings potential.

T

TCP/IP (Transmission Control Protocol / Internet Protocol)

The fundamental communication protocol of the internet and modern corporate networks. In industrial energy management, TCP/IP enables the transmission of measurement data over Ethernet networks (e.g. Modbus TCP, OPC-UA, MQTT over TCP). The Alligator gateway communicates SSH-encrypted over TCP/IP with the central data centre.

V

VDI 3922 (Energy Monitoring)

The VDI guideline 3922 describes requirements for energy monitoring systems in industry – from data acquisition through visualisation to analysis. It serves as a planning basis for the introduction of EMS software and defines quality criteria for measurement data and reporting.

→ VDI 3922 in detail

W

Efficiency (Energy Conversion Efficiency)

The ratio of useful output energy to input energy supplied, expressed as a percentage. An electric motor with 95% efficiency converts 95% of the electrical energy supplied into mechanical work. In an EMS, efficiency is a central EnPI for machinery and plant – deterioration signals maintenance requirements.

Z

Main Meter / Meter Cabinet

The meter cabinet contains the main meter, which records all energy drawn from the grid, together with protective devices and distribution elements. The main meter is the first and most important measurement point in a corporate energy management system. It delivers total consumption figures, which are then broken down by consumption group via sub-meters.

Put Energy Efficiency into Practice

Alligator Analytica brings all these concepts together in one platform: metering concept, EnPI tracking, ISO 50001 documentation and BAFA-ready reporting – all in a single system.

Get started for free → Frequently asked questions (FAQ)