“Clean Energy Revolution” puts building and product standards back on the Federal agenda

by Krystyna Dawson

The inauguration of the new President-elect, Joe Biden, marks the start of a period that could bring a substantial shift in US building-related markets. Air conditioning, heating, ventilation and controls are likely to face requirements from policy and market demand that will change dynamics in several segments.

Net Zero Emissions

With the President-elect’s Clean Energy Revolution announced during the campaign, the federal green agenda is set to make a strong comeback. President Biden signalled his intention to re-join the Paris Agreement, notably on the first day of his presidency, and outlined a national goal of net-zero emissions across the economy by 2050. Although less ambitious than the progressive Green New Deal target (net-zero emissions by 2030), with Congress now on his side he can venture putting his intention into law.

The President has promised a nearly USD 2 trillion investment plan, much of which is due to support green initiatives. He also promised to work towards achieving decarbonised electricity by 2035. Although during the campaign he was careful not to promote the ban of gas and oil fracking, his Clean Energy Revolution includes plans to improve energy efficiency in buildings and houses, and promises high investment in R&D related to zero carbon technologies to produce cutting-edge equipment for internal markets and export.

Even if not all of it might come to fruition, there is certainly a significant change of direction ahead in all industry sectors, including energy and HVAC in buildings.

HVAC Industry

During the Trump presidency, the federal government kept progress in energy efficiency standards for appliances and equipment at a low level. This has been countered by initiatives in several states, like California, Vermont, Washington, Colorado Texas and Hawaii, which have been setting their own efficiency standards for a variety of products. Federal standards nevertheless cover a wide range of HVAC products. Hence, the re-activation of ambitious federal efficiency programs will be important for industry and consumers.

California will likely increase its influence on federal decision making, not only as Kamala Harris’ home state, but because of its leading set of environmental regulations and standards. Its Title 24 Building Standards Code that sets requirements for “energy conservation, green design, construction and maintenance, fire and life safety, and accessibility” that apply to the “structural, mechanical, electrical, and plumbing systems” in buildings might provide a template for wider adoption. The experience the state is gathering on the application of a variety of solar and heat pump combinations can support the uptake of these technologies on a larger scale.

Green Agenda

With the push towards energy efficiency in buildings, technologies that support their smart operation are likely to see dynamic uptake. Currently, smart buildings represent a niche market across the US, with just some cities in the North-East, Texas or California seeing their increased emergence. They usually belong to corporations who are keen to emphasise their green credentials, aspiring to achieve high sustainability certificates through building sustainability assessments like LEED or WELL.

The impact of the federal policy change on the building HVAC and controls market will not be instant, but waiting for it to become obvious might have serious consequences for market players.  The unfolding of the green agenda by the federal government will strengthen ongoing efforts of market stakeholders and demand from consumers as environmental awareness creates favourable conditions for the shift towards efficient, environmentally friendly products.

Lighting: the low hanging fruit of energy efficiency

Peter Hunt, COO, the Lighting Industry Association

Peter Hunt, COO, the Lighting Industry Association

Rising efficiency standards in LED technology and falling purchase prices mean that businesses can now expect a shorter pay-back on their investment according to Peter Hunt, chief operating officer at the Lighting Industry Association.  We caught up with him ahead of the launch of the lighting hub at edie Live 2016 which will showcase the latest developments in energy-efficient technology.

Energy-efficient lighting products are particularly well suited to retrofitting applications, explained Hunt, due to the minimal disruption they cause to building fabric, and recent improvements in LED technology. “LEDs have undergone a rapid technological evolution over the past few years and have become a much more fitting replacement for earlier light sources,” he said. “Older LEDs produced a very blue light, but modern LEDs have advanced to the point where you would be hard-pushed to tell the difference.”

“Efficiency has also continued to improve. If you’re comparing the output of LEDs with traditional commercial technologies such as halogen lamps, then the energy savings are now about 80%. At the same time prices have been tumbling. They’ve fallen 20% for three consecutive years. Lighting products that were quite expensive are now much more affordable.”

Nevertheless, a reduction in energy costs is not the only motivation for installing an energy efficient lighting system, he continued. “What many businesses overlook is the extended lifespan of new lighting technologies. Many modern LEDs can last up to 50,000 hours, compared with 2000 hours for halogen lamps. That’s 25 lamp replacements, plus the expense of calling out a maintenance engineer, which can often cost more than the lamp itself. For large commercial applications the savings can be immense.”Improved return on investment means there is now a strong business case to switch to new technology according to Hunt: “A three-year break-even period a few years back, could now be as short as a year or less. Lighting really is the low-hanging fruit of energy-efficiency.”

Surprisingly however, the largest savings that energy-efficient lighting can offer may in fact come from HR budgets. “There’s been quite a lot of research into the link between lighting and wellbeing,” observed Hunt. “Working under light that is too bright, too dim or the wrong colour has been shown to negatively affect health.”

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Energy-efficient lighting systems can help to maintain a consistent, high-quality level of illumination, explained Hunt. “The latest systems can dim down lights closest to windows when the sun is shining, for example. They also have the capacity to adjust the colour temperature of light throughout the day to match natural human biorhythms, promoting a more restful night’s sleep.”

This is a point Sara Kassam, head of sustainability at the Chartered Institute of Building Service Engineers, agreed with during an interview with edie Live: “With businesses typically spending 1% of their budgets on energy and 90% on staffing costs, many are realising that the big incentive for installing energy-efficiency technology may not actually be the cost of energy, but the potential it has to make staff more comfortable and productive in the workplace”.

Equally, many business leaders are recognising the potential risks from inaction on energy consumption, she explained. “Shareholders want to see a business being run efficiently. Operating outdated and wasteful technology is not good when you’re looking for wider investment.”

“Energy-efficiency is also important in terms of your business’ energy security,” Kassam cautioned. “Wider political issues are creating uncertainty about what will happen to energy prices in three to five years’ time.”

“Becoming as efficient as possible now cushions your business against that risk,” she advised. “After all, the cheapest unit of electricity is always the one you don’t spend.”

BSRIA is pleased to support edie LIVE.

edie LIVE, formerly Sustainability Live, is the UK’s leading energy, sustainability and resource efficiency exhibition for business end-users.  It connects public and private sector energy and sustainability professionals with the information, suppliers and ideas that can make their business more sustainable.

To explore the latest developments in energy-efficient lighting technology, join edie Live at the NEC Birmingham, 17 -18 May 2016.

A forward thinking attitude to energy management

Chris Monson, Strategic Marketing Manager of Trend

Chris Monson, Strategic Marketing Manager of Trend

Given that in parts of the world like Europe and North America some 40% of all energy used is consumed by buildings, both companies and wider society are increasingly focussing on the energy performance of their buildings, and how to improve it.

Building Energy Management Systems (or BEMS) are computer-based systems that help to manage, control and monitor building technical services (HVAC, lighting etc.) and the energy consumption of devices used by the building. They provide the information and the tools that building managers need both to understand the energy usage of their buildings and to control and improve their buildings’ energy performance. 

I’m Chris Monson, strategic marketing manager at Trend Control Systems, and I’d like to welcome you to the latest in a series of blogs where I, along with my colleagues, examine the issues affecting the building controls industry and the use of Building Energy Management Systems (BEMS).

It strikes me as somewhat bizarre that in an age where owners, managers and occupiers of commercial premises are under tremendous pressure to operate as energy efficiently as possible, so few developers recognise the long-term value of installing a fully featured BEMS at the construction stage. Such is the value and relevance of this technology, that to my mind it should be considered as important as other elements of the building services infrastructure that are designed in as a matter of course.

BEMS facilitate greater energy efficiency and the cost savings and the environmental benefits that can be experienced as a result of investment in this technology are considerable. A fully integrated solution can have up to 84 per cent of a building’s energy consuming devices directly under its control, offering greater visibility of energy use by monitoring services such as heating, ventilation, air conditioning (HVAC) and lighting.

According to the Carbon Trust 25 per cent of a building’s energy is used in lighting, and it is estimated that around a third of the energy consumed in this way in non-domestic buildings could be saved by utilising technology that automatically turns off lights when space is unoccupied. In addition, air conditioning can increase a building’s energy consumption and associated carbon emissions by up to 100 per cent, making it imperative that its use is tightly controlled.

So why isn’t the design and installation of a BEMS happening in the initial stages of a construction project? I’m afraid that the answer comes down to a combination of cost and lack of foresight. However, to fully understand why these two factors are proving so prohibitive to BEMS implementation, we need to understand a little more about the mind-set of the developer.

Developers tend to fall into two broad groups – there are those that configure buildings for others to inhabit and others who design and build premises for their own use.

When it comes to the former, the main driver is to save costs at the construction phase and little thought is given to the building’s future occupants and how they use the building. As there are no regulations stating that a BEMS must be installed, there’s a strong possibility that it won’t be. However, this lack of forward thinking leads to future occupants having to cope with inadequate visibility and control of their energy usage and, therefore, higher overheads and a larger carbon footprint.

Regarding the second group, it often comes down to the failure of owners to specify the need for a BEMS at procurement stage and make sure that they have systems in place that will maximise the energy saving potential of the building. While this type of developer will also have one eye on the cost of the project, the increased capital costs of installing BEMS is easily countered by the return on investment (ROI), with an average payback of just three and a half years.

Whichever way you look at it, the fact is that on a ROI basis early stage BEMS implementation makes sound economic sense. It can form less than one per cent of the total construction expenditure and energy savings of 10-20 per cent can be achieved when compared to controlling each aspect of a building’s infrastructure separately. The benefits don’t stop there either, as if it is incorporated with smart metering, tariff changes can be used to offer a strategic approach to energy management and control, and the data produced gives clear signposts for potential improvements.

I firmly believe that in the current business climate to construct a new build property without a comprehensive BEMS borders on foolhardiness. Organisations are faced with growing pressure to demonstrate carbon reduction policies and do all they can to lower their energy use.

Despite the controversy surrounding the introduction of the CRC Energy Efficiency Scheme, it is here to stay and is likely to extend its scope to incorporate more businesses in the future. In addition, The Climate Change Levy (CCL), Display Energy Certificates (DECs) and Energy Performance Certificates (EPCs) also affect businesses, while compliance with certification standards such as ISO 50001 put the onus on companies to demonstrate continual improvement in this area.

It should also be remembered that building occupiers are demanding greater visibility and transparency of their energy consumption and need access to data. A failure to meet this demand could mean that prospective tenants decide to go elsewhere.

Standardisation is playing an ever more prominent role and the most significant is EN 15232, which describes methods for evaluating the influence of building automation and technical building management on the energy consumption of buildings. It enables building owners and energy users to assess the present degree of efficiency of a BEMS and provides a good overview of the benefits to be expected from a control system upgrade. The use of efficiency factors means that the expected profitability of an investment can be accurately calculated and I’m pleased that a growing number of organisations are reviewing this document and implementing some of the best practice guidance it offers.

There are those who feel that regulation is the only way to make sure that BEMS are installed at the point of initial construction, although others are reluctant to see the introduction of more onerous legislation on an already pressured construction sector. At this stage I think that regulation shouldn’t be necessary if a long-term approach to energy efficiency is factored in and the benefits of a BEMS are recognised by more developers in the initial stages of a project.

Trend_RGB SMALLFor further information please call Trend Marketing on 01403 211888 or email marketing@trendcontrols.com. Trend are the main sponsors of this year’s BSRIA Briefing – Smarter ways to better buildings.

You can read more BSRIA blogs about BEMS here.  BSRIA’s WMI team also produce a BEMS market report – Building Energy Management Systems (BEMS) in Europe and the USA – which is available to buy from the BSRIA website. 

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