KPIOperations & Supply Chain

Energy Intensity

Energy consumed per unit of production output

What is Energy Intensity?

Energy intensity is the amount of energy used to produce each unit of output. It shows how efficiently a plant uses energy.

Energy is a major cost and a source of emissions in manufacturing, so lowering intensity saves money and reduces environmental impact.

How this KPI is measured

Function
Operations & Supply Chain
Sub-function
Energy & Sustainability
Industry
Manufacturing
Type
Lagging
Impact
Operational
Unit
kWh
Measurement frequency
Monthly
Formula
Total energy consumed / Total units produced

How to calculate it

Divide total energy consumed by total units produced.

For example, if a plant used 500,000 kWh to produce 250,000 units, energy intensity is 2 kWh per unit.

Measure over consistent periods, and adjust for product mix, since some products need far more energy than others.

Where it is used

  • Cutting energy cost

    Find savings.

  • Reducing emissions

    Support sustainability goals.

  • Comparing sites and lines

    Benchmark.

How to improve it

Tips and common mistakes

  • Adjust for product mix and volume.
  • Low volume raises intensity because of fixed loads.
  • Track by energy type.

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