AI and IoT: The Key to Reducing Your Energy Expenses

New regulations, especially ones that sound like they’ll cost you time and money, are always a bit of a mixed bag—necessary but not exactly the kind of thing you’re excited to deal with. I’m talking about the EU’s upcoming power consumption standards that will come into effect in May 2025. These rules demand that electronic devices in standby and off modes consume as little energy as possible, aiming to contribute towards Europe’s sustainability goals and energy independence.?

Let’s face it: the EU’s new power rules aren’t something you can ignore. With stricter monitoring and penalties, businesses need to take action—more frequent testing, certifications, and more energy-efficient designs should become the new norm. If you’re not ready for stricter monitoring and public-facing energy labels, you’re setting yourself up for trouble. But don’t panic ahead of time because AI and IoT can make energy efficiency compliance simpler than you’d expect while playing a major role in saving energy costs. And that’s the actual silver lining I want to discuss with you.?

Understanding the 2025 EU power consumption standards

By now, you may have heard about the EU’s updated standby power consumption standards for electronic devices, which will take effect just in a few months. If not, that’s a gap I’m about to fill.

Long story short, the 2025 EU rules introduce stricter requirements for devices in standby mode, cover more device types, and enforce more detailed testing and compliance reporting. That’s part of the EU's broader Ecodesign for Sustainable Products Regulation (ESPR) that mandates environmental performance standards, among other things, including standby power limits, for all electronic products from design to disposal.?

What’s changing in 2025?

The new energy efficiency standards set stricter limits on the power consumption of electronic devices when they’re in standby or networked standby modes. TVs, routers, printers, and smart home gadgets—basically anything that idles in the background waiting for a command is subject to these new regulations. For example:

• Devices in standby mode can only consume 0.5 watts (down from the previous 1 watt).
• Devices in networked standby mode—those connected to Wi-Fi or Ethernet—must stay below 2 watts, with even stricter limits for specific categories.

The coverage of devices was also expanded. In addition to computers, TV sets, and kitchen equipment that were previously regulated, new categories touch upon interactive speakers, gaming systems, electric furniture, and other smart office and home technologies.?

How will new rules impact manufacturers?

Meeting these stricter rules for device manufacturers will require the implementation of new approaches:

• Smarter Components: Manufacturers will need to integrate more energy-efficient technologies, processors, sensors, and power management systems. This might increase R&D costs initially but could lead to more sustainable products in the long run.
• Testing and Certification: Compliance now requires rigorous testing and certification through EU-recognized bodies.
• Consumer Transparency: With updated energy labels, manufacturers will need to display power consumption metrics clearly. Since consumers will favor products with better ratings, manufacturers are simply compelled to meet efficiency benchmarks.

What do users stand to gain?

The changes for manufacturers will inevitably affect users and offer:

• Lower Bills: The reduction in standby power usage translates to noticeable savings on energy bills, especially in households packed with connected devices.
• Awareness Shift: Clearer energy labels will nudge users to prioritize efficiency when shopping for electronics, making sustainability a key factor in purchasing decisions.
• Behavioral Changes: With energy monitoring becoming mainstream, users might rethink leaving devices idling for extended periods—or opt for models designed to consume less.

The role of AI-powered energy management solutions

Inefficiencies in homes, businesses, and industries drain energy at an alarming rate. In India alone, households, hotels, and businesses lose up to 25% of their electricity to outdated equipment, poorly managed systems, and appliances left running unattended, according to the IEA report. Add to this a noticeable increase in global electricity demand, which is expected to increase annually by 3.4% through 2026, and we have a growing crisis that calls for smarter solutions.

AI is one of the smart energy solutions that can help fix energy losses and support sustainability goals. For instance, it can power down unattended appliances, optimize heating and cooling systems, and even ensure that outdated equipment operates at peak efficiency.?

How AI optimizes energy usage

AI learns how and when devices consume energy, automatically adjusting settings to minimize waste. Take standby mode—AI can detect when a device isn’t being used and reduce its power draw without affecting functionality. In homes or offices filled with connected gadgets, AI can synchronize devices, learn usage patterns, and make real-time adjustments to ensure nothing is wasting energy unnecessarily.

Benefits of AI for energy efficiency

Managing energy effectively by hand—spotting waste, fixing issues, keeping up with regulations, etc.—is quite a challenge. AI in energy management offers the necessary automation of most of those tasks, giving you more control over energy allocation and usage and making the management process more intelligent.?

• Live monitoring. AI gives you a comprehensive look at how you use energy, inefficiencies in your equipment, and unsustainable utilization of resources, and shows you exactly where you can cut back.?
• Enable predictive maintenance. AI spots patterns and predicts when a device might go rogue—whether it’s consuming too much power or about to break down—so you can fix it before it costs you.
• Automated compliance. AI takes care of compliance with energy regulations, tweaking your systems automatically to make sure everything’s running smoothly and within the rules.
• Cost savings. By cutting down on wasted energy and optimizing how your devices run, AI lowers your bills and helps you do your part for the environment.

IoT remote monitoring as a compliance solution

IoT is another highly promising technology solution that can advance your energy efficiency goals and help comply with the EU’s updated power consumption standards. IoT, which is a network of interconnected devices that can communicate with each other to collect and act on data, allows businesses to implement smarter strategies.?

How IoT in energy management works?

IoT energy monitoring systems use multiple smart sensors and cameras to gather data about energy consumption, check if the usage patterns are optimal, and flag wasteful practices before they turn into big problems. The system keeps an eye on your energy use 24/7 and detects when something goes wrong immediately.?

For instance, IoT energy solutions can detect when a device starts to consume more energy than usual and send an alert—or better yet, adjust settings to minimize waste without you having to lift a finger.

Key features of effective IoT monitoring

When you plan to build or implement IoT in energy management, you should pay attention to certain factors:?

• Data-Driven Decision-Making. Thanks to continuous monitoring provided by the IoT system, you gain more detailed information on energy-hungry equipment or inefficient processes, so you can make better decisions to reduce waste.?
• Seamless Integration. Modern IoT systems are designed to integrate with your existing setup easily, so you don’t need a total overhaul.?
• Real-Time Alerts. A good system provides instant alerts when irregularities occur, allowing you to take immediate corrective action and prevent energy loss.
• Predictive Analytics. Advanced IoT systems have predictive analytics to forecast equipment performance and discover potential failures before they happen.?
• Scalability. IoT energy solutions should be able to expand as your energy management needs grow.

IoT in action: Solving real-world problems

To show you that all the above said isn’t just a theory, I want to share a few cases where we helped leading companies overcome complex challenges with IoT-powered solutions.?

IoT monitoring system for a social robot

A Canadian R&D company needed a reliable centralized Remote Monitoring System to manage their robots and devices efficiently, so we built a secure platform with features like real-time health monitoring, automated updates, and remote troubleshooting. We also implemented predictive maintenance, device registration, and cloud-based content management features that simplified remote device management for users and accelerated operations.

IoT-based sensor management platform

Our client, Sensor Innovation, needed a more user-friendly platform to manage its sensors that detect issues like water leaks for industrial and residential sites. So, our team redesigned their dashboard to simplify sensor monitoring, added a virtual building map that visualizes sensor locations, and introduced the capability to generate more detailed reports for improved data analysis. Now, the company benefits from a faster and easier-to-use platform with fewer false alarms.

Smarter air quality monitoring with a custom IoT solution

Airthings, a Norwegian tech company specializing in indoor air quality monitoring, needed a solution to collect, process, and display real-time data from their IoT devices worldwide. We developed a custom dashboard that connects all devices, allowing users to monitor air quality in real-time while Airthings managers can track device performance globally. Also, we enhanced the interactive map for faster transitions, reduced lag, and added clustering for better system performance.

Energy savings made easy with AI and IoT

Companies that implemented AI and IoT for more agile and efficient processes are now actively employing them to optimize energy use and drive sustainable goals. Some companies report significant reductions in energy waste and operational costs thanks to AI-powered monitoring across their facilities.?

Given the rapidly increasing demand for power and its consumption, which hit all-time records each year and is projected to rise to 4,165 billion kWh in 2025 in the US alone, the EU’s new power standard looks more like a necessary step forward rather than a regulatory burden. At the same time, the adoption of energy-saving technologies (e.g., IoT and AI) offers a path towards achieving the goals of these new standards and saving on your energy bills.?