In order to fully understand anything it is important to study, analyze and quantize that entity. Energy is no exception. In order to understand the flow of energy it is important to question where the energy for all the marvelous technology around us comes from, how much of it is required, how much of it is wasted, where it is wasted and how it is managed. A vital key to answering these questions is through accurate measurement. A measurement conducted for energy within the same frame of reference under identical external conditions will help envisage the scenario of how energy flows and behaves.
In order to fully understand the energy scenario and optimize energy usage the energy monitoring system will be of vital significance. With the proper collection of data and its study, it is possible to utilize available energy at maximum efficiency, make plans and decisions for new measures and initiatives concerning energy and understand the impact one is able to make in a larger scale. The scope and significance of the energy monitoring system can be summarized in the following points: