How to supercharge the world’s small and midsize buildings
This article is provided by BRC Associate Member, Schneider Electric.
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Older buildings tend to waste energy, and upgrades can seem daunting. But with the right technology, supermarkets, hotels and other companies can turn energy efficiency into a competitive advantage.
Some 90km southwest of Paris, in the cathedral city of Chartres, the Grand Monarque hotel stands as a symbol of the world’s energy dilemma. Built 400 years ago to lodge merchants travelling across France, it must now adapt to meet modern energy efficiency targets laid out in the EU’s Energy Efficiency Directive. With small and medium-sized buildings such as this making up 90% of the world’s commercial buildings, policymakers have marked them – and their energy efficiency failings – as critical in terms of meeting emissions targets.
Half these buildings will still be in use in 2050, the date by which many companies have pledged to reach net zero in accordance with the 2015 Paris Agreement on climate change. Taking action to retrofit energy systems is critical not only to meeting these targets, but also to maintaining the value of any building.
If a company had invested in energy-saving technology two years ago, it would now have paid off the initial investment
On average, if a company had invested in energy-saving technology two years ago, it would now have paid off the initial investment, says Manish Kumar, Executive Vice-President of Digital Energy at Schneider Electric. EcoStruxure Building Activate, a digital platform that analyses energy usage and optimises its use, helped reduce the Grand Monarque’s energy consumption by 15% – enough to pay off the initial investment within six months.
Digital insights offer ROI
“One of the biggest barriers to energy efficiency is not knowing how your building works in the first place,” says Becci Taylor, a director at Arup, one of the world’s leading design and engineering firms. “But now, given rising energy bills, it’s much more important to understand how the systems – not just the heating but also cooling – work and how they can be optimised.” For buildings such as the Grand Monarque, where heating, ventilation and air conditioning systems have been integrated over time, energy usage is even more complex.
“Our challenge was the lack of visibility into where and how energy was consumed in the building,” says owner Bertrand Jallerat. “This became crucial as our electricity costs rose from €80 to €650, €700 or even €750.” To give the hotel greater insight into its energy use, Schneider Electric integrated digital sensors into the hotel’s infrastructure and set its staff up on the EcoStruxure software.
“It became obvious that a significant portion of our power consumption could be attributed to two key areas: guest accommodation and food service operations,” says Jallerat. He highlights the simplicity of the monitoring: “This data insight provided clear direction on how to focus our energy optimisation efforts and take action to control when and where the hotel’s energy was consumed.” However, energy monitoring is the first step towards more decarbonised and energy-efficient buildings.
Scaling the savings
For enterprise chains that operate tens or hundreds of small and mid-size buildings around the world, scaling these solutions can drive even larger savings. Much of these savings come not just from monitoring single sites, but from centralising the automation of lighting and HVAC systems as well as refrigeration of cold rooms and freezers across the full portfolio of buildings.
Studies show that implementing energy monitoring and automation can save as much as 48% of energy
Schneider Electric studies have shown that with implementation of energy monitoring and automation, building owners and operators can save as much as 48% of energy while decreasing their carbon emissions by up to 60%. In industries with tight operating margins, this quickly becomes a competitive advantage. This is especially the case when the integration of sensors on critical assets can prompt breakdowns, avoiding costly maintenance support and improving indoor conditions. Two years after using EcoStruxure Building Activate, the CEO of one retail chain says it has led to a significant improvement in the comfort of occupants, improving retention of customers.
Wasted energy is not just a problem for large businesses. According to the Carbon Trust, the average SME generates around 15 tonnes of CO2 annually. In the US this amounts to half of the country’s emissions. To make sure the financial responsibility of updating infrastructure doesn’t fall entirely on small businesses, governments across the globe have launched financing schemes to help subsidise the energy transformation. The EU has launched a guarantee scheme for investors in smart energy systems, while Schneider Electric is developing flexible financing models to make efficiency more affordable.
These partnerships are becoming ever more important. Companies that don’t prioritise upgrades risk adding to operational risks, costs and regulatory pressures, while brands such as the Grand Monarque hotel are building their reputations as sustainable businesses.
