Energy costs represent about 19 percent of total expenditures for the typical office building according to National Grid. While Average energy prices have been relatively stable, commercial floor space grew by 58% between 1980 and 2009 while primary energy consumption grew by 69 for the same period. Notwithstanding stricter building codes and other legislation, the Energy Information Agency predicts that between the years 2012 and 2040, commercial electricity consumption will increase by 27%. This clearly makes energy a significant operational cost deserving attention.
Regulation and Market Forces
Regulation is starting to address energy usage. Buildings with a larger footprint are increasingly subject to regulatory requirements for certification, especially recommissioning such as New York’s Local Law 84 and 87. The laws are designed to encourage buyers and tenants to consider how much it costs to operate a building and make decisions on which space to buy or lease based, in part, on how energy efficient it is.
Increasingly, your tenants are making commitments to sustainability. These green initiatives have become very visible with regard to the type, quality and environmental aspects of the buildings they have chosen to occupy. It is a simple and effective way to demonstrate that they are actively engaged in good environmental practices. Thus, being a LEED certified building becomes a desirable creating a competitive advantage in the market, especially for tenants where energy costs are a consideration.
The 2015 Green Building Adoption Index, a joint project of CBRE and Maastricht, found that 62.1 percent of office buildings in the U.S. greater than 500,000 square feet are considered “green” (holding either an EPA ENERGY STAR label, U.S. Green Building Council (USGBC) full-building LEED certification or both).
Green is Good Business
Studies show that green buildings tend to have higher asset values than their conventional counterparts. This differential in asset value is evidenced by higher sale prices, higher rental rates, higher occupancy rates and lower operating expenses.
Commissioning is a best practice central to address regulations and sustainability initiatives. Reduced operating expenses are perhaps the most important benefit associated with commissioning. Building owners report that their building efficiency improved 5%–20% through retrocommissioning work, but recommissioning or retrocommissioning are done at most every three to five years. Thus, wasted energy compounds and potential savings are deferred for years.
Thus, the incentive to leverage commissioning is growing. One of the reasons that retrocommissioning projects are done so infrequently is that they are expensive and time consuming. The good news is this is not the only option available. Continuous commissioning introduced the idea that commissioning and energy management work should be ongoing to drive greater savings. However, the volume of information, the complexity of equipment and ongoing operational demands make this difficult to do.
Continuous Commissioning™ introduced the idea that commissioning and energy management work should be ongoing to drive greater savings. However, the volume of information, the complexity of equipment and ongoing operational demands make this difficult to do. Monitoring based Commissioning (MBCx) builds off the concept of continuous commissioning, but uses automation to deal with the complexity. As a result, MBCx allows you to realize savings in months rather than years since work is ongoing.
FacilityConneX is an Enterprise-level intelligent monitoring and knowledge action system designed to bring smart asset monitoring, advanced predictive intelligence, continuous management and energy savings; all available in a secure hosted Cloud environment with online and mobile visibility. This allows facility managers to:
- Monitor your equipment and thousands of fault detection scenarios.
- View the entire portfolio of buildings online and on mobile to ensure that people have the right information at the right time.
- Use our advanced analytics to prioritize the work needed to minimize energy consumption and meet occupant needs.