“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.

What makes a good PICV?

by Andrew Pender, National Sales Manager at FloControl Ltd.

Over the last 5 years, PICVs have been widely accepted as the best method of terminal control in variable flow systems due to their energy saving potential.  The surge in popularity has led to an influx of products with varying designs, features and functionality.  This article reviews some of the mechanical PICV design elements and how they can impact on the PICV’s performance in an applicational context.

Where do we start?

To help specifiers and project engineers assess which PICV is best suited for an application, the BSRIA BTS1/2019 standard has been developed to provide a consistent test method for PICV manufacturer’s products to be benchmarked against.

Manufacturers should be able to provide test results in line with this technical standard which covers:

  • measured flow vs nominal flow
  • pressure independency or flow limitation
  • control characteristics, both linear and equal percentage
  • seat leakage test

Repeatability & Accuracy are central to the tests and they are key to good temperature control and realising the full energy saving potential of a PICV installation.

An accurate PICV means the measured results will be equal or very close to the manufacturer’s published nominal flow rate each time it is measured, known as low hysteresis.

Accuracy has a positive impact on a building’s energy consumption.  “Measured over time, a 1% increase in the accuracy of a PICV can result in a reduction of around 0.5% in the building’s overall hydronic energy consumption” (FlowCon International).

Valve accuracy is driven by the design, manufacturing process and material used for the internals of the valve.

  • The design of the PICV should allow for Full Stroke Modulating Control at all flow settings without any stroke limitation.  The flow setting and temperature control components should operate independently.  Some PICV designs use the stroke of the actuator stem to set the flow rate resulting in limited stroke and control.  This can cause issues at low flow rates whereby the PICV effectively becomes on/off irrespective of actuator selection.  
  • The manufacturing process and the component materials also contribute to accuracy. For example, injection-moulded, glass-reinforced composite materials cope better with water conditions that valves can be exposed to.  They also have less material shrinkage than other materials, delivering higher accuracy than valves that use alloy components.

What else should be considered?

The importance of accuracy and repeatability are paramount when selecting a PICV however there are other factors that should be considered:

  • Wide flow rate range – including low flow rates for heating applications, ideally covered by a small number of valves.
  • Setting the flow rate – setting the PICV can influence the accuracy. There are various scales used including set points related to flow rates and percentages. PICVs with very detailed scales with small increments between set points are more difficult to set accurately, leading to higher tolerances than the BSRIA standard recommended + 10%.
  • Wide ΔP Range – low start up pressure. To operate satisfactorily, the PICV requires a minimum pressure differential to overcome the initial spring resistance within the PICV, enabling the spring to move and take control. Care should be taken to ensure the minimum pressure differential is as low as possible to maximise the energy saving potential of the system.  The maximum DP should also be considered to ensure the PICV operates effectively under part load conditions.
  • Dirt tolerance – the Valve Control Opening Area [A] on all PICVs, irrespective of the manufacturer, is identical for each flow rate. The shape of the Control Area can be different depending on the valve design. A Rectangular flow aperture is more tolerant than an Annular flow aperture. Debris will pass through the rectangular aperture more easily.
  • Removable inserts – deliver the greatest flexibility and serviceability.  Products can be easily serviced in line without disruption. This is especially of value when water quality is poor or when flow requirements change due to changes in space usage.  Inserts can also be removed during flushing.  Valve bodies can be installed with blank caps eliminating the risk of damaging or contaminating the PICV element, whilst having a full-bore flushing capacity.
  • Installation – PICVs in general have no installation restrictions however in line with BSRIA BG29/20, it is recommended that PICVs should be installed in the return branch as small bore PICVs will have a high resistance which will hinder the flushing velocity during the forward flushing of terminal units.

Making the right choice

There are many aspects for specifiers and project engineers to consider when selecting the right PICV for an application.  The BTS1/2019 standard provides an excellent benchmark, but the individual designs also need to be carefully considered.  A correctly selected PICV will ultimately lead to a more comfortable indoor climate with better control of the space heating and cooling as well as potentially reducing the pump energy consumption in a building by up to 35%.

This post was authored by Andrew Pender, National Sales Manager at FloControl Ltd. All views expressed are those of the author. If you belong to a BSRIA Member company and wish to contribute to the BSRIA Blog, please contact marketing@bsria.co.uk

COVID-19 pandemic’s impact on US businesses and real estate

Zoltan Karpathy
Operations Manager, BSRIA Worldwide Market Intelligence

Nobody can predict with a high degree of certainty how long the current COVID-19 pandemic will last and what will be the full impact on the economy. We are witnessing US states, including Florida, opening up and having to tighten measures again as the virus flares up.

To contain the pandemic regulations started to push businesses towards investments to increase health safety and prevent spreading the COVID-19 virus. While necessary to fight the pandemic and speed up the recovery, businesses sometimes suffer temporary loss of productivity when the measures are implemented.

Another hike of investment as the direct consequence of the economic shock triggered by the pandemic is often related to the need of diversifying suppliers; and purchases from a variety of suppliers are often done with less favourable prices. Increasing inventory levels of critical raw materials/components/products are also becoming an issue.

Verticals served by the HVAC&R sector have been hit at various levels of degree by the COVID-19 pandemic. Venues, such as live entertainment, sports, restaurants and travel-related establishments are likely to struggle due to concerns over contracting the virus, even when they become fully open. It is expected that consumer will shift away from these types of spending to alternatives such as durable goods, which in turn can have a positive effect on housing in the future.

Nevertheless, on the residential side, housing starts plummeted by 43% in the three months from February to April, even though several US states allowed construction sites to operate. Sales of existing homes also declined, with April’s transaction level at three-quarters of the February level. Residential construction is expected to slow down in the medium term, as consumers are unable or unwilling to purchase new houses, even though mortgage rates are very low.

Economists are drawing up various scenarios and assess likelihoods of these potential outcomes. According to Deloitte the most probable scenario is that the US economic recovery will not take place at least until the middle of 2021; growth can return to the pre-COVID level by the end of 2023, but the economy will not be able to achieve full employment again until 2025.

In the context of such uncertainty, manufacturers active in the HVAC&R and Building Controls sector are facing a wide range of unknown factors:

  • customers building up stock for an eventual second COVID-19 wave;
  • concerns over debt payments;
  • increasing payment periods;
  • increasing raw material prices;
  • pressure to maintain the price of their final products/solutions.

In terms of the product mix, HVAC companies started to receive more enquires for certain types of filters, more emphasis on increasing volume of fresh air and generally an increasing focus on Indoor Air Quality.

This goes hand in hand with the fact that the current situation is also encouraging building owners and businesses to offer a safe working environment, in which employees trust and feel comfortable. Therefore, increasing investment levels can be expected to make commercial buildings ‘smarter’ and more efficient to use, with the uptake of solutions such as contactless access control, occupancy analytics, employee tracking services, proximity sensing and analytics (using indoor location mapping solutions) and Indoor Air Quality (IAQ) sensing and monitoring, alongside air purification and disinfection solutions.

The COVID-19 pandemic has a significant impact on the real estate market, challenging the building owners and operators at unprecedented levels. According to JLL, the effects in the short term, will be the accelerated large-scale uptake of home working, leading to problems for traditional offices, but also co-working centres and flexible offices, putting a strain on the sustainability of certain flexible space business models. Social distancing considerably increase the space allocated for individuals which means that many flexible offices will record very low space utilisation rates and could even remain nearly empty.

The COVID-19 pandemic has challenged the role of the traditional office and it reinforced the need for the office to act as a communal space which encourages innovation and collaboration, while nurturing company culture. A future solution seems to be an increased focus on technology enabled workplaces which can be used for collaborative meetings and hosting clients.

To assess the full impact of COVID-19 on the US HVAC&R sector, BSRIA will publish an update of its market studies at the end of September 2020.

To find out more about BSRIA HVACR & Controls market studies contact us at:

• America sales enquiries: BSRIA USA: sales@bsria.com ¦ +1 312 753 6803, http://www.bsria.com/us/
• China sales enquiries: BSRIA China: bsria@bsria.com.cn ¦ +86 10 6465 7707, http://www.bsria.com.cn
• All other sales enquiries: BSRIA UK: wmi@bsria.co.uk ¦ +44 (0) 1344 465 540, http://www.bsria.com/uk/

Thoughts on the COVID-19 impact on China’s HVAC industry

by Martin Li, BSRIA APAC

Some economic background data

After carrying out many conservative policies like Complete City Lock-down, China has started to recover from the COVID-19 related downturn. The economy has been opening since late March 2020 and is in wider re-opening stage by May 2020.

In the first two months of 2020, China’s total import and export value of goods trade reached 4.12 trillion RMB, a decrease of 9.6% comparing with the same period last year, with export, experiencing a particularly bad fall by 15.9%.

According to the latest statistics, both Manufacturing and non-Manufacturing PMIs slid down to the range far below 50% in February 2020, with 35.7% for manufacturing sector and 29.6% for non-manufacturing one. Manufacturing sector has been hit hard, and the central government is mobilizing companies returning to production to catch up with delays as soon as possible.

Construction industry represents a more mixed picture. According to Xinhua Finance, the total sales of residential housing by Top 100 developers dropped by 20.7% under the influence of the pandemic, but 24 among them, have achieved over 10 billion RMB sales, indicating that the competitive environment is going to become more concentrated in the coming months.. Another set of data from KERUIRC in its research on 27 Key Cities showed a decline of sales by 80%, and half of the cities in the sample pool supplied no new housing in February 2020.

2020 Prospects for China’s HVAC industry

Different impact in residential and commercial segment

Both global and domestic demand have fallen significantly in the first quarter of the year. Under severe lockdown rules, sales, installation, or integration work were not allowed and according to CICC, in January 2020, the entire domestic and overseas sales of AC fell by 34% and 28% respectively. The situation worsened in February and March, but the visible recovery has been noted in May.

Similar situation has been recorded in the domestic boiler market where during the first quarter 2020, sales remained heavily subdued with slow recovery noted from the April. Overall Chinese domestic heating sector shrank by 60% in the first quarter of the year.

HVAC products, like RAC-CAC or wall-hung boilers, belong to the “must have” category of products, hence market demand for those has mostly shifted and is expected to “make up”, in the coming months, for lost sales in the first quarter of the year. The whole year performance is expected to come close to the 2019’s sales levels, with the caveat, that there will be no second wave of the virus outbreak.

Commercial AC and Commercial/Industrial heating sectors have not been so severely affected by the pandemic, with many companies reporting successful achievement of their Q1 budget.

Strategic changes related to the offering and distribution business models

This pandemic seems to have forced transformation of conventional business activities. Owners of physical stores and off-line distributors have become acutely aware of the weakness of their business model. Many are now in the process of moving their operation to on-line platforms, which is likely to also accelerate their embrace of the global e-commerce.

From a product mix point of view, companies have become more aware of the importance of the variety of product offer and disadvantages of concentrating on sales of one product family type. An integrated shop/store, selling the idea of Comfort Home with a bunch of products delivering what is ultimately needed by the end user is expected to become a mainstream ideology. Integrating sales of Water, Air, Heating, Automation and Smart systems is where the industrial consensus is heading after the pandemic.

In summary, assuming the outbreak of COVID-19 can be contained and will not reappear in China, its impact on sales levels will possibly be limited in the overall year perspective. However, when debt, assets holding costs and opportunity costs will be considered, HVAC business owners will be looking for more options to mitigate unforeseeable risks in the future. In the short term some distribution and offering trends that have started to emerge before the pandemic will accelerate. In the longer-term higher market integration is likely.

Note to editors:

For more information about BSRIA’s research, please contact:

Always look on the bright side

This post is by Casey Wells, Trend’s UK Marketing Manager

I’m Casey Wells, UK Marketing at Trend, and in this blog talk about how integrating lighting along with heating, ventilation and air conditioning (HVAC) into a BEMS can bring together the largest consumers of electrical energy in a building and why such integration makes sense.

According to recent industry studies, lighting accounts for 19-23 per cent of the energy used in a building, with 40-52 per cent normally being used for HVAC. This means that companies have the potential to control up to 75 per cent of their energy usage through a BEMS.

Although controlling HVAC installations by BEMS is well known, many people are still unaware of the benefits of integrating lighting control. Devices like the Trend 963 Supervisor use dashboards that visualise lighting and HVAC points on a common head-end and detail the occupancy status of different zones, as well as the current luminaire status in each area.

The normal pattern of a working week can also be catered for automatically and lighting can, for example, be scheduled to turn on and off at certain times. Of course, life doesn’t always operate to a fixed schedule, so a BEMS can offer timed schedule over-rides to cater for changes such as a late networking event.

An additional benefit for integrating lighting with a BEMS is increased levels of safety and reliability. For example, emergency lighting can be continuously monitored by the BEMS. If an irregularity does occur, the BEMS will be configured to email the facilities manager or other designated person, and provide a complete report.

Building and facilities managers have much to gain from using a BEMS that integrates lighting control. With such a system, they can take advantage of real time energy monitoring and proactively save energy.

For further information please call Trend Marketing on 01403 211888 or email marketing@trendcontrols.com.

Building Controls: Throwing a BRIC in the Works

Henry BlogThe BRIC countries; Brazil, Russia, India and China feature prominently in the news on an almost daily basis, for all sorts of reasons. While there have been concerns over a slowdown in growth, China, India and Brazil have all continued to grow through the recession at substantially faster rates than most of the developed world, and whilst the somewhat reduced growth rates may cause alarm in China and India, they would be cause for wild celebration in, say, much of Europe.

China, Brazil, Russia  and India all now rank in the World’s top 10 economies, and China is already second only to the USA, and is poised  to overtake it sometime in the next few years.

This economic development has naturally been associated with a lot of building development, including demand for such systems as HVAC and Building Automation. Nonetheless, in the BRICS countries the Building Controls markets have tended to lag behind their economic development.

Hence, according to BSRIA research, China’s Building Automating market was the world’s 5th largest in 2012, while Russia ranked 11th, India 16th and Brazil 18th.

What is more, the same research shows that the Chinese, Indian and Brazilian markets were dominated by the “Big 4” global suppliers: Siemens, Johnson Controls, Honeywell and Schneider Electric, even though the individual company shares varied reflecting local market conditions.

One thing that the history of the past 150 years has taught us is that as technologies mature and economies develop, industries tend to migrate to areas which offer the combination of lower costs and growing markets which China, India and Brazil are all in a position to do. This has been seen with the massive movement of manufacturing industry to China and of IT related industries and services to India. This in turn has created some new locally owned corporations with major industrial and financial clout, in a position to compete and invest on a global basis.

The latest update to BSRIA’s global study Challenges and Opportunities in the BACS Market , looks at a number of key trends, including the potential for new challengers to emerge in China, India and Brazil.

Unsurprisingly, the process appears to be most advanced in China. Spurred on by the wave of new construction, suppliers such as Techcon, SUPCON, Beston and RUNPAQ have started to make a real impact covering most of the main vertical markets, and including some high profile projects.

In India, where the overall market is significantly smaller, only Larsen and Toubrou, a major Indian-owned global corporation, stands out. There are however a host of Indian companies providing implementation and integration services.

This blog was written by BSRIA's Henry Lawson

This blog was written by BSRIA’s Henry Lawson

In Brazil a major domestic supplier has yet to emerge, though as in India there are a range of local companies offering related services.

In Russia, local Champions such as Regin and Polar Bear have gained a significant national market share, but have yet to have much impact elsewhere.

Past experience in other industries suggest that these countries may well provide favourable conditions for local champions to emerge and that, as their national BACS markets grow and mature, so this could even provide a springboard to offer products and services on a regional or even a global basis. This is definitely an area that everyone with an interest in Building automation, be it as a supplier, customer or service provider, should continue to watch going forward.

Other subjects that we focus on in the latest update include Technical Infrastructure Support Providers, developments in cybersecurity for buildings, and new alliances and mergers.

To find out more about Challenges and Opportunities in the BACS Market please contact Steve Turner – Steve.Turner@bsria.co.uk

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