The Impact of Digital Technologies on Building Efficiency and Sustainability: Why an Integrated Approach is Critical

Digital technologies are revolutionizing how we interact with the world around us. They also profoundly impact the built environment from designing and constructing buildings to operating and maintaining them. They play a critical role in creating more efficient, sustainable building space. Though the possibilities are endless, these technologies reduce maintenance costs while improving building performance and efficiency.

In recent years, digital technologies have begun to radically change the way buildings are designed, constructed, operated and maintained. The rise of Building Management Systems (BMS) using the Internet of Things (IoT) and Big Data analytics capabilities are transforming how buildings are managed and operated, aiming to increase energy efficiency, reduce operations costs and improve sustainability. However, there is a concern that the potential of digital technologies is not fully realized because buildings are not operated in a “smart & integrated” way by considering all the subsystems and energy consumption patterns. A holistic and integrated approach is required to maximize the benefits of digital technologies by considering the specific needs of each subsystem in the building and its occupants.

How do Digital Technologies make our Built Environment Energy Efficient?

Buildings are responsible for a significant amount of energy consumption and greenhouse gas emissions. The use of digital technologies assists us in making our buildings energy efficient and reducing their environmental impact. Digital technologies are constantly evolving and becoming more sophisticated, impacting how we design, build and operate our buildings.

Today, The Internet of Things (IoT) is connecting devices and systems in our buildings by equipping them with sensors that monitor everything from temperature and humidity to the presence of hazardous materials, enabling operators to maintain optimal conditions and enabling us to collect and analyze data to improve efficiency, reduce costs and increase sustainability.

IoT and Big Data technologies are helping buildings become energy efficient in numerous ways. Firstly, by providing real-time data on energy use that can be used to make informed decisions about improving energy efficiency. For example, data on energy usage is being used to identify opportunities for improving the insulation of a building or upgrading to more efficient heating and cooling systems. Secondly, these technologies are helping improve building energy efficiency by automating energy-saving measures. For example, sensors are used to detect when a room is unoccupied and automatically adjust the temperature accordingly. This helps reduce energy waste and lower utility bills. Some examples of systems developed using digital technologies are being used in buildings include:

Building management system (BMS): It enables the monitoring and control of a building’s systems including heating, ventilation, air conditioning and lighting.

Energy management system (EMS): It optimizes a building’s energy usage by automatically adjusting heating, cooling and lighting based on occupancy levels, weather conditions and daylight availability.

These technologies are a great example of how we can use data to optimize our buildings for energy efficiency and it also shows how adaptive technology is a step in the right direction for creating sustainable buildings that will remain efficient for years.

Why do we need More Sustainable and Energy Efficient Buildings?

There are many reasons why we need deep energy-efficient buildings. For one, the buildings sector significantly contributes to greenhouse gas emissions, accounting for approximately 30% of global energy-related emissions. In the United States, buildings account for nearly 40% of total energy consumption and more than 70% of electricity consumption (www.energy.gov). So, by making them more energy efficient we can help to reduce emissions and slow down climate change.

Energy-efficient buildings also use less energy, saving money for both the building owner and occupants. Not to mention, using less energy also helps to reduce our dependence on fossil fuels. Another reason we need deep energy-efficient buildings is because they are better for our health. Buildings that are not well-insulated or have poor ventilation can lead to various health problems, such as respiratory illnesses, headaches, and fatigue. By making buildings more energy-efficient, we can help to improve indoor air quality and reduce the risk of these health problems.

Finally, energy-efficient buildings are better for the environment and consume less energy, which means less pollution from power plants. They also often incorporate sustainable design features, such as green roofs and solar panels, which further reduce their environmental impact.

In short, there are many reasons why we need deep energy-efficient buildings. Climate change, cost savings, improved health and a reduced environmental impact are just a few benefits of deep energy-efficient buildings. Energy efficiency is often a good investment as well because it can improve the value of a building and make it economical to operate.

The limitations of current Building & Energy Management Systems delivering Energy Efficiency and a need for an integrated approach:

Current Building Management Systems (BMS) and Energy Management Systems (EMS) have many limitations in delivering energy efficiency. They are often siloed, with little integration between different systems, and lack the flexibility to respond quickly to changes in building conditions. This can result in significant energy waste and high operating costs. In addition, BMS tend to be complex and difficult to use, making it challenging for building occupants and managers to understand and control their energy use. They also often lack transparency, making it difficult to identify opportunities for improvement. Finally, most BMS & EMS systems are not designed to optimize whole-building performance but instead focus on the individual components of a building (such as heating, ventilation and air conditioning HVAC systems). This means they cannot consider the interactions between different systems, which can lead to sub-optimal overall performance.

New approaches like integrating different systems, simplifying user interfaces, and optimizing whole-building performance by leveraging Machine Learning (ML)-based predictive analytics capabilities to energy management are needed to overcome these limitations. The systems should provide a holistic view of a building’s energy use and allow managers to control multiple systems from a single platform. This can result in significant improvements in energy efficiency and operating costs. In addition, the advanced data-driven decision-making tools can help identify opportunities for further improvement.

While the integrated end-to-end energy management systems promise many benefits over traditional BMS & EMS approaches, the concept is still relatively new and there is limited experience with them in the built environment. As such, it is essential to consider whether the system is right for an organization. It is also important to work with an experienced service provider with both digital and energy domain expertise to ensure that the system is appropriately designed and integrated into the customer’s existing infrastructure.

A case for an innovative ‘Energy-as-a-Service’ model for Integrated Energy Management:

The benefits of energy efficiency are now widely recognized and digital technologies play an increasingly important role in unlocking those benefits. But the traditional business model for energy efficiency – in which customers invest upfront in energy efficiency improvements to realize savings over time – often fails to deliver the desired results.

One way to overcome this challenge is with an innovative “Energy-as-a-Service” (EaaS) business model, in which a company provides a guarantee of energy savings for a customer and then shares in the savings if they are achieved. This type of arrangement aligns the interests of both parties and creates a powerful incentive for the company to improve the energy efficiency of the building continuously.

In addition, an EaaS business model can be used to finance energy efficiency improvements through third-party financing arrangements. This type of financing can make it possible for customers to invest in energy efficiency without any upfront costs, further reducing the barriers to adoption. If an organization is looking for ways to improve its building’s energy efficiency and sustainability, the EaaS business model is definitely worth considering.

Conclusion:

The business case for peak energy efficiency is compelling. The benefits are wide-reaching and significant, from reducing emissions and improving performance to delivering cost savings. Today’s buildings are complex systems, but we can achieve peak efficiency and sustainability by adopting an end-to-end Energy-as-a-Service business model, which takes an integrated approach and uses advanced digital technologies to continuously monitor, control and forecast building energy consumption. This can help businesses reach their sustainability goals while also delivering cost savings.