The Future of Energy: 7 Trends Transforming 2025

Why 2025 Is A Turning Point For Energy Efficiency

In 2025, energy efficiency will quickly shift from an important advantage to an absolute necessity, given that businesses increasingly face a combination of rising costs, stricter regulations, and rapid technical improvements. The expansion of Building Performance Standards (BPS) means more companies must meet higher efficiency requirements while emerging innovations are transforming how energy is monitored, managed, and optimized. With sustainability goals and financial pressures converging, businesses that act now will not only stay compliant but also reduce long-term costs and gain a competitive edge in an evolving energy landscape.

Why This Matters

More intelligent energy strategies can enhance resilience, open doors to new financial opportunities, and position companies as industry leaders. In this article, we’ll explore the key energy trends shaping 2025 and what businesses can do to stay ahead.

1. Building Performance Standards (BPS): Compliance & Cost Savings

The Push For Stricter Energy Regulations

Building Performance Standards (BPS) are setting higher expectations for energy efficiency and emissions reduction, impacting both new and existing buildings. Businesses must adopt smarter energy management strategies to stay compliant and avoid costly penalties. While meeting these standards may seem like a challenge, compliance can lead to lower operating costs, improved building performance, increased property value, and reduced financial risk in the real estate market.

Who Needs To Pay Attention?

• Commercial Property Owners & Real Estate Developers – Ensure long-term property value and comply with evolving energy efficiency and emissions regulations. BPS compliance can affect leasing rates, tenant demand, and asset resale value.
• Facility & Operations Managers – Oversee building energy performance, HVAC systems, and maintenance strategies to meet BPS mandates while reducing energy costs and optimizing efficiency.
• Industrial & Manufacturing Facilities – Face increasing energy efficiency mandates and can benefit from on-site energy storage, load management, and demand response participation to meet BPS compliance while controlling costs.

Opportunities For Building Performance Standards

BPS helps drive energy efficiency, lowering utility costs and increasing property value. By aligning with climate action goals, businesses can improve their marketability while demonstrating a strong commitment to sustainability. Beyond compliance, meeting these standards enhances building performance and helps owners and managers reduce regulatory and financial risks.

Challenges of Meeting BPS Requirements

Upgrading older buildings to meet BPS requirements can be costly and technically challenging. Staying compliant requires continuous monitoring and adjustments as regulations evolve, which can be difficult for property managers without the right energy management tools or expertise. Navigating these changes successfully takes careful planning and access to advanced energy solutions.

What You Should Do Now To Meet Building Performance Standards

• Upgrade existing buildings to meet performance standards and improve energy efficiency.
• Implement an Energy Management System (EMS) like E360 to track building performance and optimize energy use.

2. Artificial Intelligence (AI): Smarter, More Efficient Energy Use

How AI Is Revolutionizing Energy Management

AI is making energy management more efficient by automating processes, analyzing usage patterns, and optimizing system performance. Industries like manufacturing, real estate, and healthcare already use AI to lower costs and operate more sustainably.

Industries Leading the Charge

• Manufacturing – Uses AI to optimize production schedules, reduce energy consumption in high-demand processes, and improve equipment efficiency with predictive maintenance.
• Healthcare – Enhances HVAC, lighting, and air quality systems to maintain patient comfort while reducing energy waste in non-critical areas.
• Commercial Real Estate & Property Management – Implements AI-powered building management systems to dynamically adjust HVAC, lighting, and energy loads based on occupancy and weather conditions.
• Higher Education & Campus Facilities – Uses AI to regulate energy use across multi-building campuses, optimizing heating, cooling, and lighting schedules for different usage patterns.

Yielding Benefits From Leveraging AI-Driven Energy Management

AI can help businesses cut energy waste, optimize usage, and reduce costs while working toward sustainability goals.

Challenges of AI Energy Management Technologies

Implementing AI in energy management requires a significant upfront investment and relies on high-quality data to be effective. AI may not deliver the expected results without proper integration and ongoing maintenance. 

How To Optimize Energy Use With AI

• Use AI-driven platforms to optimize energy use and improve efficiency.
• Apply predictive analytics to stay ahead of maintenance needs and prevent costly issues.
• Keep up with AI advancements through industry research to maximize its benefits.

3. Machine Learning (ML): Energy Efficiency Through Data Insights

Why Machine Learning Is Essential For Smart Energy Use

Machine learning (ML) algorithms are a subset of AI algorithms that apply statistical techniques to analyze data, identify patterns, and make decisions based on those patterns. In energy management, ML helps uncover opportunities for optimization by detecting trends in consumption and system performance. By providing actionable insights, it enables businesses to reduce energy waste and improve overall efficiency.

Industries Seeing The Biggest Impact Of Machine Learning

• Manufacturing – Uses machine learning to analyze production data, detect inefficiencies, and automate energy-intensive processes, reducing unnecessary energy use across facilities.
• Healthcare – Optimizes HVAC, lighting, and medical equipment energy consumption based on occupancy and operational needs, ensuring efficiency without compromising patient comfort.
• Commercial Real Estate & Property Management – Enhances energy performance by dynamically adjusting heating, cooling, and lighting across multiple properties, reducing waste and improving tenant satisfaction.
• Higher Education & Campus Facilities – Monitors and manages energy use across large campuses by predicting demand, automating climate control, and optimizing peak load times for cost savings.

Benefits of Machine Learning Energy Optimization

ML’s ability to accurately forecast energy patterns allows organizations to plan ahead, minimize waste, and improve operational flexibility. ML also plays a key role in predictive maintenance, helping businesses catch potential issues early and avoid costly repairs.

Hurdles of Implementing ML Into Energy Management:

Like AI, ML is only as effective as the data it relies on, making high-quality, well-integrated data essential for success.

How To Achieve ML Energy Usage Insights

• Adopt ML-powered platforms to improve energy efficiency and reduce waste.
• Leverage ML for predictive maintenance to prevent issues before they arise.
• Continuously refine ML insights to enhance long-term performance and adaptability.

4. Rising Energy Costs: How To Combat It

What’s driving energy price increases?

Energy costs continue to rise due to increasing demand, growing cybersecurity risks, and the ongoing shift to renewable energy. While renewables offer long-term sustainability benefits, their variability can create challenges for grid stability and price consistency. As a result, businesses are seeing higher operational expenses and a greater need to focus on energy efficiency to manage costs and remain competitive.

Wide-spread Impact

Every industry relies on energy to keep operations running, making rising costs a challenge across the board. Price volatility can have an even more significant impact for energy-intensive sectors like manufacturing, data centers, healthcare, and commercial real estate. However, optimizing energy use is essential for every sector to maintain financial stability and support long-term sustainability.

The Benefits of Addressing Rising Energy Costs

Improving energy efficiency helps businesses reduce operational expenses, maintain financial stability, and minimize the risk of unexpected price increases. It also supports sustainability by lowering waste and emissions, enabling companies to meet environmental goals while keeping energy costs manageable.

Challenges of Controlling Energy Costs

The initial investment in energy-efficient upgrades and renewable energy can be a hurdle for many businesses. Market fluctuations, influenced by policy changes and supply chain disruptions, add another layer of uncertainty, making long-term price stability challenging to predict.

How to Reduce Energy Costs

• Assess energy use through audits to uncover inefficiencies and identify cost-saving opportunities.
• Leverage smart energy management systems to automate and optimize energy consumption.
• Explore renewable energy options such as solar, battery storage, or green power to reduce reliance on traditional energy sources.

5. Demand Response: Balancing Energy Supply and Demand

How Demand Response Helps Businesses Manage Energy Use

Demand response (DR) allows businesses to cut costs and support grid stability by reducing energy use during peak demand periods. Through incentive-based (IBP) or price-based (PBP) programs, facilities can adjust their energy consumption to ease grid strain and avoid high electricity costs.

Top Industries For Demand Response Participation

• Manufacturing – Reducing peak demand charges by scheduling high-energy processes (e.g., machining, kilns, and refrigeration) during off-peak hours or using on-site energy storage during demand events.
• Warehousing & Logistics – Lower operating costs by optimizing HVAC, refrigeration, and lighting loads, particularly in cold storage facilities where energy demand is high.
• Education (Universities & School Districts) – Shifts energy usage by pre-cooling classrooms, adjusting HVAC based on occupancy, and dimming non-essential lighting during demand response events.
• Healthcare (Hospitals & Medical Facilities) – Participates carefully by reducing non-essential loads such as administrative office HVAC, laundry services, and non-critical equipment while ensuring patient care remains unaffected.

Key Benefits of Demand Response Programs

Demand response programs help balance energy supply and demand, improving grid stability while reducing strain during peak usage. They offer businesses financial incentives to use energy more efficiently, reducing costs and supporting sustainability efforts.

Challenges of Implementing Demand Response

An Energy Management System (EMS) can facilitate businesses' participation in demand response programs, but it does come with higher upfront costs. Even with an EMS in place, integrating demand response into existing operations can be complex and require careful planning to avoid disruptions.

How To Get Started With Demand Response

• Work with utilities to take advantage of financial incentives like bill credits and rate discounts.
• Implement an Energy Management System (EMS) to automate energy adjustments and simplify demand response participation.

6. The Rise of Renewables: Integrating Solar, Wind, & Energy Storage

Why Businesses Are Moving to Clean Energy

More businesses are turning to solar, wind, and other renewable energy sources to lower costs and decrease dependence on fossil fuels. As renewables continue to make up a larger share of U.S. electricity generation, integrating them into the grid remains a challenge due to their variability.

Industries Making The Shift To Renewables

• Commercial Real Estate – Office buildings, retail centers, and mixed-use developments are increasingly installing solar panels, battery storage, and intelligent energy systems to reduce long-term utility costs and improve sustainability credentials.
• Manufacturing & Industrial Facilities – Large-scale manufacturers are integrating on-site solar, wind, and cogeneration systems to stabilize energy costs, reduce reliance on fossil fuels, and enhance operational resilience.
• Higher Education & School Districts – Universities and K-12 schools are adopting solar arrays, geothermal heating, and microgrids to cut energy expenses, support sustainability goals, and provide real-world learning opportunities for students.
• Data Centers & Tech Infrastructure – Cloud service providers and data centers are rapidly shifting to renewable energy sources like wind and solar to power high-energy workloads while meeting corporate sustainability commitments.

Renewable Energy Integration Benefits

By adopting renewable energy sources, businesses gain greater energy independence while significantly reducing emissions. Renewable adoption also supports sustainability goals, enhancing brand reputation and market competitiveness.

Challenges of Renewable Energy Reliance

Because solar and wind energy generation can fluctuate, businesses may need storage solutions or hybrid systems to maintain a reliable power supply. While installation costs can be high, incentives and subsidies can help offset expenses.

How To Adopt Renewables Into Your Energy Portfolio

• Implement hybrid energy systems to balance renewable and traditional power sources.
• Invest in energy storage solutions to maintain a steady power supply when renewable generation fluctuates.
• Take advantage of renewable energy programs and incentives.

7. Digital Twins: The Future of Building Insights & Energy Optimization

How Digital Twin Technology is Transforming Energy Efficiency

Digital twins—virtual models of real-world systems—give businesses the power to predict, monitor, and optimize energy use in real-time. By simulating different scenarios, they help companies fine-tune energy performance before making expensive changes, ensuring smarter and more cost-effective decisions.

Possible Industry Applications For Digital Twins In Energy Optimization

• Commercial Real Estate & Property Management – Simulates building energy performance, optimizing HVAC, lighting, and occupancy-based energy use to improve efficiency and reduce operational costs.
• Manufacturing & Industrial Facilities – Creates digital models of production processes to identify inefficiencies, predict equipment failures, and optimize energy consumption in high-energy operations.
• Architecture, Engineering & Construction (AEC) – Enables data-driven design for energy-efficient buildings by simulating energy performance and ensuring optimal operational efficiency after construction.
• Utilities & Smart Grids – Creates real-time digital models of energy grids and distribution systems, improving load balancing, forecasting demand, and enhancing renewable energy integration.

Real-Time Benefits of Digital Twins:

Digital twins help businesses operate more efficiently and make informed decisions. By simulating different scenarios, they highlight opportunities to reduce waste and downtime and plan smarter upgrades. With predictive insights, companies can avoid maintenance issues and work toward more sustainable operations.

Challenges of Digital Twin Implementation:

Creating and maintaining digital twins involves substantial investment in hardware, software, and expertise. Integrating high-quality, real-time data from various sources can be technically challenging, especially for older facilities. Organizations need to carefully assess the costs and benefits of implementing digital twins to ensure a positive return on investment (ROI).

Optimizing Energy with Digital Twins

• Use digital twins to model energy performance and make more informed decisions.
• Apply predictive insights to improve system efficiency and avoid wasted energy.
• Connect digital twins with energy management systems for data integration.

How To Stay Ahead of Energy Trends In 2025

The energy landscape is evolving rapidly, and businesses that adapt to this shift will gain a strategic advantage. Stricter regulations, rising costs, and the increasing importance of technologies like AI, machine learning, digital twins, and renewable energy are shaping the future of energy management. Companies that invest in innovative, data-driven energy strategies today will not only reduce costs but also improve sustainability, resilience, and long-term growth. As we continue to move into 2025, staying ahead will require leveraging intelligent solutions, adapting to emerging challenges, and transforming insights into actionable strategies.