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Although not unique definition is used for EMS, one definition is more common:

Computer systems used by operators of electric to monitor, control, and optimize the performance of the power grid (generation, transmission, distribution).

The functionality of any EMS is supported by a combination of two systems:

 SCADA system for monitoring and control.

 Advanced applications for optimization.

Energy management may be supported by distributed energy management technologies that include energy storage devices and various methods for reducing overall electrical load.

The technology references as SCADA/EMS or EMS/SCADA are common. In [Weiss 2010], EMS is described as a SCADA system with additional applications.

EMS may exclude the monitoring and control functions, more specifically referring to a suite of power applications. In other circumstances, EMS refers to a system of hardware and software components for an automated control and monitoring of the heating, ventilation, and lighting needs of a building or group of buildings such as university campuses, office buildings, or factories [Panke 2002]. Most of these EMS also provide facilities for the reading of electricity, gas, and water meters. The data obtained from these EMS systems can then be used to produce trend analysis and annual consumption forecasts.

The increasing number of SCADA/EMS systems operating in the electric industry, the growing number of market participants, and the development of complex market models relying more on IT technologies contribute to raising the interdependency between the operation of the power grid and the operation of the wholesale electric market.