In East Asia, South Korean electrical manufacturer LSIS has launched an energy efficiency system for factory management, the latest in the company's range of smart grid products.
At the launch of its solution - GridSol Station - LSIS said that the factory energy management system (FEMS) should reduce energy consumption by 25% a year equivalent to savings of 100 million won (US$84,500) every year, reports The Korea Times.
GridSol Station works by visualising wasted energy and converges energy management systems including energy storage, and solar energy generation technology.
The FEMS monitors how much energy a factory has generated from renewable energy sources and how much energy it has saved by using an energy storage system.
Industrial energy use
LSIS's product launch comes as South Korea's industrial and commercial sector accounts for the majority of the country's energy consumption, according to the Korea Energy Economics Institute.
In 2013, the industrial sector used 62% of the country's total electricity output, followed by buildings at 21%.
South Korea's Ministry of Trade, Industry and Energy estimates the FEMS market will grow from 209.6 billion won (US$179 million) in 2013 to 1.1 trillion won (US$938 million) in 2020, an average annual growth rate of 28.4%.
To develop GridSol Station, LSIS spent 6.7 billion won (US$854,000) to build a FEMS facility in its Cheongju factory in South Korea's North Chungcheong Province.
Kwon Yong-jik, the company's marketing team manager, said the company expects to recover its investments in eight years.
Mr Kwon said: "We have spent more than half of the investment costs on setting up solar panels on roofs of our Cheongju factories.
"The solar power system is expected to generate some 700 million won (US$564,000) profit each year. We are selling all the electricity generated by the solar power system."
From FEMS to BEMS
LSIS said it also plans to expand the FEMS into building energy management systems (BEMS) and home energy management systems (HEMS) solutions, said Kwon.
The marketing manager said: "We are investing in BEMS and home energy management system (HEMS) to shift our focus from energy supply management systems to energy demand management processes."
As part of its efforts to achieve the goal, the company's key affiliates including LS Cable and LS-Nikko Copper, started using the GridSol system.
Kwon said: "We are also seeking partnerships with Chinese companies in Shenzhen to expand our FEMS business globally."