Energy Management in the Food Industry in 2026

Measurement Is the Foundation. But It Is No Longer Enough.

At the Automation in the Food Industry Conference, we presented a simple observation: most manufacturing companies already measure energy consumption in some form. Yet for many facilities, energy savings have never materialized. Electricity bills remain high, demand peaks continue, and production operates exactly as before. The problem is no longer the lack of data. The challenge is the lack of context that turns data into informed decisions. This article summarizes where food manufacturing facilities stand today, where the greatest opportunities lie, and why energy management can no longer be postponed.

Where the Biggest Energy Savings Are Hidden

Based on our experience across numerous industrial projects, six areas consistently reveal the greatest opportunities.

Refrigeration and Freezing

Cooling systems often account for 30–50% of a food plant's total energy consumption.

Common issues include:

  • oversized equipment
  • poor insulation
  • inefficient temperature control during nights and weekends

Recovering waste heat from refrigeration systems can return 15–35% of energy back into the production process.

Compressed Air

Perhaps the most obvious opportunity—and paradoxically one of the most overlooked. Air leaks alone can account for 20–40% of compressor energy consumption, making leak detection one of the fastest-return investments.

Thermal Processes

Cooking, sterilization, pasteurization, and drying all consume significant amounts of energy. Waste heat recovery and optimized process control typically offer 15–35% savings potential.

Production Equipment

Motors, pumps, and drives are another major opportunity. Variable Frequency Drives (VFDs) can reduce energy consumption by 10–50%, but only where operating profiles justify their installation.

Lighting

Usually the easiest and fastest win. Replacing conventional lighting with LED systems combined with occupancy and daylight sensors can reduce lighting energy consumption by 50–70%. Many factories have already modernized production areas while warehouses, cold storage rooms, and service spaces often remain untouched.

Operator Behavior

One of the most underestimated sources of energy waste. Machines left running outside production shifts, cold room doors left open, or ventilation manually overridden can all create substantial losses. Without measurement, these issues remain invisible. With proper monitoring, they can be addressed through operator training or automation.

The Journey from Data to Savings Has Four Steps

Across dozens of FLOWBOX implementations, successful projects always follow the same structure.

1. Measure

Monitor energy where it is actually consumed. That means collecting validated real-time data across buildings, production areas, production lines, and individual technologies—not relying solely on monthly utility bills.

2. Understand

Transform data into actionable insights.

This includes:

  • anomaly detection
  • baseline comparison
  • peak demand analysis
  • identifying root causes

Without this step, monitoring remains nothing more than an expensive dashboard.

3. Act

Prioritize improvement measures based on return on investment. Which compressed air leaks should be fixed first? Where does a VFD actually make economic sense? Without prioritization, good ideas rarely become implemented projects.

4. Optimize

Allow the facility to continuously move toward its energy optimum. Automation based on predefined rules, predictive analytics, and economic optimization enables the system to make smarter operational decisions automatically.

Four Levels of Energy Management Maturity

Industrial facilities generally fall into four maturity levels.

Level 1 – Manual Response

"Energy consumption is high—we react." Operations are entirely reactive. Operators notice problems and solve them manually. Most Czech manufacturing facilities are still at this level.

Level 2 – Rule-Based Control

Automation follows predefined scenarios.

Examples include:

  • compressors shutting down during idle periods
  • lighting responding to schedules
  • ventilation adapting to occupancy

A solid first step—but still fundamentally reactive.

Level 3 – Predictive Control

The system starts working with future conditions.

It considers:

  • production schedules
  • weather forecasts
  • electricity prices

Demand peaks are controlled before they occur.

This is where substantial financial savings begin.

Level 4 – Autonomous Optimization

The facility continuously adjusts itself to minimize total energy costs.

This includes:

  • photovoltaic generation (PV)
  • Battery Energy Storage Systems (BESS)
  • thermal storage
  • demand flexibility
  • dynamic energy optimization

This level delivers the greatest long-term value, but it requires building the previous stages first. Today, most food manufacturers operate at Level 1 or Level 2. The journey toward autonomous optimization begins with the same first step for everyone: reliable measurement and understanding what the data actually says.

Three Reasons Not to Delay

Energy management is rapidly becoming a business necessity rather than a voluntary initiative. Three major developments are driving this shift.

1. New Electricity Tariff Structure (Effective January 1, 2027)

For companies connected to high-voltage and extra-high-voltage grids (approximately 25,000 businesses in the Czech Republic), electricity charges will increasingly depend on the highest 15-minute demand peak recorded during the month. A single quarter-hour when refrigeration, compressors, and production lines operate simultaneously may determine the electricity charge for the entire month. Without active peak management, costs increase.

With intelligent control, companies can:

  • stagger high-load equipment
  • use energy storage
  • optimize production schedules

2. ISO 50001 Is Becoming Mandatory

Amendments to the Czech Energy Management Act require:

  • ISO 50001 certification within two years for companies consuming more than 23,611 MWh annually
  • mandatory energy audits every four years for companies consuming 2,778–23,611 MWh annually

Non-compliance may result in penalties of up to CZK 5 million.

Importantly, fuel consumption of company vehicle fleets is also included in total energy consumption.

3. Energy Costs Continue to Pressure Margins

Energy typically represents 5–20% of production costs in food manufacturing—and even more in sectors such as dairy and meat processing. Because margins remain tight, every percentage of energy savings directly improves profitability. Companies already managing energy intelligently gain pricing flexibility and stronger competitiveness.

Where to Start

Successful energy management does not begin with purchasing technology. It starts with honestly assessing your current level of maturity. Without that understanding, companies often invest in the wrong improvements. To help manufacturers evaluate their readiness, we developed an Energy Maturity Calculator.

In approximately 15 minutes, you receive:

  • an assessment across four key areas (measurement, analytics, optimization, and automation)
  • an estimate of your annual savings potential based on your current energy costs

The calculator is free and requires no commitment.

Try the Energy Maturity Calculator

What's Next?

Energy management is no longer optional for food manufacturers. It has become a competitive necessity—and regulatory deadlines are approaching quickly. The good news is that the path forward is clear, and the first steps can be taken immediately. If you would like us to review your Energy Maturity Calculator results, assess your production facility, or identify your biggest opportunities for savings, contact us at info@flowbox.com.

We'll arrange a meeting, demonstrate how FLOWBOX works in facilities similar to yours, and leave you with a practical roadmap for improving your energy performance.