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How Cogninest AI Built a Smart Energy System to Cut Power Costs for Enterprises

Client and Challenge

Large enterprises often face challenges in managing electricity consumption efficiently due to fluctuating market prices and lack of predictive planning. The traditional approach to energy procurement is static and reactive, resulting in missed opportunities to save on energy costs. Key challenges include:

• Unpredictable Energy Consumption: Without accurate forecasting, companies either overpay or underutilize energy resources.
• Price Volatility: Electricity prices from sources like IEX (Indian Energy Exchange) and DISCOMs vary drastically throughout the day.
• Manual Procurement Decisions: Energy buying decisions are often made without data-backed insights, leading to increased costs.

To address these issues, Cogninest AI built a robust and intelligent Energy Management System (EMS) aimed at reducing energy costs by predicting consumption and optimizing procurement strategies.

Solution

Cogninest AI developed a predictive EMS platform powered by machine learning and real-time pricing analytics. The system automatically forecasts energy consumption and electricity prices for the upcoming day, then determines the most cost-effective procurement strategy by comparing IEX and DISCOM prices. It makes automated bidding decisions to ensure energy is purchased at the lowest possible cost while maintaining operational efficiency.

Key Features

Energy Consumption Forecasting

• ML models predict electricity consumption for the next 96 half-hour slots.
• Takes into account historical data, weather, and usage patterns.

IEX Price Prediction

• Forecasts electricity prices on the Indian Energy Exchange.
• Compares predicted prices with DISCOM offerings to find the most cost-effective option.

Automated Bid Logic

• Chooses whether to buy from IEX or DISCOM based on price forecasts.
• Automatically places bids for cheaper electricity.

Real-Time Cost Savings

• Calculates and displays savings achieved compared to traditional procurement.
• Tracks historical savings and predicts future opportunities.

User Dashboard

• Displays real-time data on consumption, price trends, and savings.
• Easy-to-understand visualization of 24-hour savings predictions.

Alerts & Reporting

• Sends notifications on price spikes, consumption anomalies, or savings opportunities.
• Generates daily, weekly, and monthly reports.

Scalability & Integration

• Compatible with various electricity providers.
• Can scale to different regions and integrate weather or IOT data for smarter predictions.

Workflow

Data Ingestion

• Historical data from smart meters, IEX, and DISCOM is collected daily.

Model Prediction

• ML models forecast next-day consumption and price variations for each half-hour slot.

Decision Engine

• The system evaluates predicted IEX vs DISCOM prices and determines the optimal procurement strategy.

Bidding & Execution

• Automated system places bids with IEX when cost-effective or defaults to DISCOM.

Monitoring & Reporting

• Dashboard displays real-time consumption and savings.
• Generates alerts and downloadable reports for procurement teams.

Results

• Significant Cost Reduction: Enterprises using the EMS have reported up to 15-20% reduction in electricity procurement costs.
• Better Planning: Predictive insights enabled data-driven decision-making, replacing guesswork with precision.
• Automated Procurement: Reduced the need for manual intervention and improved bidding accuracy.
• Real-Time Visibility: Enhanced transparency in energy consumption and cost optimization efforts.

Conclusion

Cogninest AI’s Energy Management System empowers large enterprises to take control of their electricity usage through predictive analytics and smart procurement strategies. By forecasting both consumption and market prices, the system ensures cost-effective, efficient, and automated energy management. As energy prices become increasingly volatile, such data-driven solutions are critical for companies aiming to optimize costs and stay sustainable.

At Cogninest AI, we specialize in helping companies build cutting edge AI solutions. To explore how we can assist your business, feel free to reach out to us at team@cogninest.ai