Commercial Electricity Saving Guide: 3 Key Advantages of Energy Management Systems for Sustainable Restaurants

Intelli-EMS
Jan 19
4 min read

In the food service industry, energy costs are inherently high, and relying solely on revenue growth is no longer enough to absorb these expenses. The smarter approach is to focus on efficiency—cutting waste and controlling costs first—to protect and stabilize profit margins.

Driven by rising global fuel prices and the need to reflect costs, stabilize prices, and meet carbon-reduction goals, Taiwan’s Ministry of Economic Affairs announced an 11% electricity rate increase in the first half of 2024. This has placed significant pressure on the food service industry, where power is heavily consumed by refrigeration, kitchen operations, and air conditioning.

For many operators, the increase is hard to absorb. As a result, adopting energy-saving strategies for commercial electricity use is no longer optional—it has become a practical way to reduce operating costs and a key direction for the industry’s future development.

For restaurant operators, electricity costs are one of the most persistent pain points, as a wide range of equipment depends on power. The main drivers of high energy consumption in the food service industry include:

Refrigeration and freezing systems – Cold storage runs 24/7 to keep ingredients fresh.
Kitchen equipment – Large ovens, exhaust hoods, and other appliances operate continuously, especially during peak hours.
Air conditioning – Dining areas must remain comfortable for customers; energy use rises sharply in summer.

Taiwan Power Company offers different pricing structures based on usage type, broadly divided into residential (low-voltage) and industrial (high-voltage) electricity. Industrial power is typically used by factories that require large-scale production. Most restaurants fall under residential power, which is further divided into non-commercial and commercial usage.

Non-Commercial Electricity

Non-commercial users are charged on a progressive rate. For example, usage below 120 kWh is billed at NT$1.68 per kWh. This rate applies to private homes and non-commercial facilities such as schools and government offices.

Commercial Electricity

According to Taipower’s regulations, any premise engaged in business activities—regardless of licensing or organizational form—must be billed under commercial electricity rates. Restaurants therefore fall into this category. Commercial electricity is charged either by consumption tiers or time-based pricing, typically ranging from about NT$4.00 to NT$10.00 per kWh.

With electricity prices rising sharply, retail and food service businesses are among the hardest hit. Monthly power bills can range from tens of thousands to hundreds of thousands of NT dollars. As a result, reducing energy use and carbon emissions while lowering operating costs has become an urgent priority.

An Energy Management System (EMS) enables restaurants to achieve intelligent power savings. By connecting electrical equipment through a network, it collects, transmits, and analyzes data to enable automated and efficient operation. High-consumption devices can be monitored in real time and adjusted into energy-saving modes. When abnormal usage occurs, the system can detect it immediately and prompt timely action—preventing significant waste and helping operators maintain control over their energy costs.

Electricity Price Increases (2022–2024): Commercial Power Rates Up 25% in Three Years

Metric	2021	2024	3-Year Change
Monthly Usage	20,000 kWh	20,000 kWh	→
Average Price	NT$ 4.4 / kWh	NT$ 5.5 / kWh	+25 %
Monthly Bill	NT$ 88,000	NT$ 110,000	+NT$ 22,000
Annual Cost	NT$ 1,056,000	NT$ 1,320,000	+NT$ 264,000

For a bubble tea shop operating at an 8% net profit margin, the increase in electricity costs alone erodes roughly 1.5% of gross profit.

In practical terms, this means the store must sell an additional 5,280 cups of drinks per year—assuming a gross profit of NT$50 per cup—just to offset the higher power bill.

In other words, the business now has to work significantly harder, not to grow, but simply to stay in the same place.

Rising Energy Costs in Food Service: How Smart Energy Management Protects Store Margins

As electricity prices continue to climb, the food service industry is under growing pressure. High power usage, food waste, and operational inefficiencies are driving costs upward. While price increases can partially offset the impact, there is a clear limit to what customers will accept. As a result, the future of the industry lies in using digital technology to control costs and expand profit margins.

Today, “How much does one kilowatt-hour really cost?” has become a critical question for operators. By introducing an Energy Management System (EMS), restaurants can integrate daily operations with data collection and analysis, enabling optimal resource allocation, better performance, and a path toward long-term sustainability.

Below are the three key advantages of adopting an Energy Management System in food service operations.

1. Centralized Energy Control and Power Savings

An EMS enables centralized management of major power consumers such as refrigeration units, air conditioning, and cooking equipment. Through remote monitoring and automation, operators can:

Turn off unused equipment during non-business hours (e.g., air conditioning, lighting).
Adjust refrigeration systems to maintain required temperatures with the lowest possible energy use.

Use Case:A three-story hotpot restaurant uses an EMS to remotely shut down air conditioning and induction cookers on unused floors during off-peak hours, significantly reducing electricity expenses.

2. Inventory and Supply Chain Optimization

An EMS continuously monitors cold storage temperatures, reducing food spoilage caused by equipment failure or human error. Combined with data analytics, it enables better inventory forecasting—lowering the risk of expired ingredients and improving overall efficiency.

3. Real-Time Analytics for Smarter Operations

AI-powered analytics are a core strength of modern EMS platforms. They help operators:

Track energy usage patterns and costs to identify saving opportunities.
Integrate POS sales data to optimize menu design and inventory levels.
Provide data-driven insights for future store expansion.

Use Case:A restaurant chain leverages AI analytics to refine operating strategies, optimize power usage, and improve profitability at each location.