ADVANCED ENERGY MANAGEMENT SYSTEMS EXECUTIVE SUMMARY Sustainability Roundtable, Inc.

Transcription

1 ADVANCED ENERGY MANAGEMENT SYSTEMS EXECUTIVE SUMMARY

2 ADVANCED ENERGY MANAGEMENT SYSTEMS EXECUTIVE SUMMARY This report on Advanced Energy Management Systems (AEMS) is intended to provide a basic knowledge foundation regarding the use of energy information systems to Directors of Corporate Real Estate (CRE) and Portfolio Managers, who invest in and are responsible for the management of real estate. To achieve leadership, CRE executives focus on sustainable value creation. Leaders in more sustainable real estate seek to overcome the standard focus on cost reduction and develop a process that enables them to demonstrate improved financial performance from sustainable facility features, systems, materials, and green certifications of properties in their portfolios. They then seek to communicate that enhanced performance to the market, whether that audience is tenants, buyers, and/or investors. This report consists of four chapters as described in the following pages. Each chapter is available to Members via the digital library. Members are welcome to contact their Advisor with any questions. Key Takeaways Energy management is at the heart of optimizing portfolio performance as it impacts a range of value drivers, from energy efficiency, through employee and occupant engagement, to vendor performance management. Advanced energy management systems (AEMS) provide data and analytics that can be used by trained personnel to monitor and control energy performance, influence behavior, and identify and document savings. Real estate executives should evaluate opportunities to pilot technologies and management strategies, obtain proof of concept, and then deploy successful solutions portfolio-wide.

3 Chapter One: Enabling Advanced Energy Management Systems provides the groundwork for understanding recent drivers of technological, service, and regulatory change shaping the business case for the adoption of AEMS, a concept used to describe the integration of building management systems and advanced software and technology solutions to achieve greater operational efficiencies in buildings. SR Inc provides a Framework for understanding the components of AEMS. This Framework, complemented by tools under development by SR Inc, can empower real estate executives to assess the current AEMS of their buildings and analyze cost-effective upgrades that will improve building performance and deliver operational savings. A detailed description of a set of AEMS functionalities and technologies that enable these functionalities is provided. Chapter Two: AEMS Assessment Framework & Sector Case Studies surveys industry case examples that demonstrate a clear progression of AEMS deployment that has resulted in significant benefits. SR Inc has captured these findings in an AEMS Assessment Framework, which is built to serve as an assessment tool for evaluating the existing and potential synergies between advanced energy management technologies and portfolio management practice. The Framework helps identify the interaction between portfolio management approaches and technology deployment. It provides a snapshot of current capabilities and supports strategic decisions regarding how to improve operations and energy efficiency portfolio-wide. The framework can also be used to benchmark companies in relation to each other. Progressive Approach Data-Driven Capability of AEMS technology Continuous Monitoring Performance Dashboards System Controls System Optimization System Integrator Adaptive Control Description Reports real-time energy use at the meter, submeter, or system level. Web-enabled real-time monitoring of energy and water use. Plug-and-play wireless control upgrades for Lighting/HVAC/Pl ug systems. Allows for system-level control Identifies potential operational savings and provides actionable steps. Integrates horizontal control of energy-use in lighting and HVAC (some include plug loads). Identifies and makes automated adjustments to lights, temperature, and other energy loads. Vendors MACH Energy Lucid Design Group NorthWrite Lucid Design Group Building Logix MACH Energy Autani Federspiel Controls Adura Cypress Envirosystems Energy AI Building IQ Scientific Conservation Integrated Building Solutions Siemens Johnson Controls Honeywell BuildingIQ Integrated Building Solutions Data Access INTELLIGENCE Automated

4 Adobe first utilized AEMS in their headquarters in San Jose, California (above), and then across a number of properties within their portfolio. Adobe s management team, along with their property manager and energy services provider, worked with Intelligent Building Systems (IBS) to develop what is now a commercially available AEMS solution, called Intelligent Building Interface System (IBIS ).

5 Chapter Three: Management Best Practice Case Studies examines in detail two best practice case studies of SCRER Members to provide insights about the deployment of specific AEMS solutions and to highlight the impact of these in enabling enhanced portfolio management performance. Adobe Systems and US GSA serve as best practice examples for the utilization of AEMS to substantially improve their companies ability to manage energy across their portfolio and consequently, achieve continuous on-going energy savings. In addition to these two primary case examples, the report also highlights a dashboard-based, three fuels arbitrage capacity employed by SCRER Member Brookfield Properties to take cost-effective advantage of fuel rate differentials. Chapter Four: Sustainable Value Creation Strategy offers an executive-level recommendation to implement AEMS for the purposes of sustainable value creation. This recommendation is founded upon the insights gained in the three prior chapters of SR Inc s examination of AEMS. The chapter summarizes the business case rationale for the deployement of strategy as well as provides executive best practice advice on how to structure the recommended strategy and implementation approach. The development of AEMS is a strategic decision for Director of Corporate Real Estate and Portfolio Managers. SR Inc is committed to continuous harvesting of additional best practices with actionable data. SR Inc looks forward to working with other Members on developing, implementing, and improving their AEMS strategy.

6 Enterprise Value Project Financial Returns Regulations Emission targets Enterprise Building Sub-meter Corporate Carbon- Footprint RISK Scalable across Portfolio ASSET VALUE AEMS CAPEX Integration with other systems OPEX Employee Sustainability Engagement BMS Security Performance Predictability Partner/Vendor Management Correct Energy Supply Inefficiencies Reduce Energy Consumption Uncover Extended Opportunities Performance Contracting Utility Billing Property Management KPI s Capacity downsizing Overheating/cooling Demand Response Continuous Monitoring Automated alerts Data Centers Window Shades/Films

7 ACKNOWLEDGEMENTS Principal Authors Steven M. Byler, LEED AP VP, Research & Operations Steven has a decade of cross-discipline experience focused on greater sustainability and holds a sustainability-focused MBA. He has advised senior real estate executives for several years on how to most effectively drive sustainability throughout a large real estate portfolio. Prior to joining SR Inc, Steven consulted on sustainability issues for organizations including Ceres and SAI Global and conducted research at Harvard for several years. L. Walker Kellogg II, CSDP, LEED AP VP, Research & Technology Walker has over ten years experience as an engineer working with leading companies to advance energy efficiency. Walker has served PG&E, Google, Stanford, SAP, Hitachi and others. Now, for SR Inc Members, he is applying his technical knowledge on best practices that span facilities engineering, energy analysis, efficiency, renewable energy, resource conservation, rebates and incentives, behavior modification, strategic planning, and project management. Davis S. Osborn Chief Operating Officer David is an accomplished career consultant and business leader bringing to SR Inc over 25 years experience in building professional services and technology-driven businesses serving a broad range of client industries. David is applying his diverse consultative background to assist SR Inc Members as they lead the industry toward a more sustainable built environment. Contributing Authors James F. Boyle, JD President & Chief Executive Officer Jim Boyle, the founder of Sustainability Roundtable Inc., has been advising on commercial real estate for leading corporations, private equity firms, and fast growth technology based firms as an attorney and commercial real estate broker for more than a dozen years. At SR Inc, Jim leads a seasoned, multi-disciplined, team with expertise in management, strategy, design, engineering, finance and research to serve companies leading the move towards more sustainable business. Toma Barylak VP, Advisory Services Toma is an accomplished consultant and advisor with 10 years of experience in Corporate Real Estate and the attendant renewable energy and energy efficiency sectors. Toma has provided best-in-class advisory services to global CRE clients while at The Staubach Company (now Jones Lang LaSalle) before advising on renewable energy and energy efficiency applications across CRE portfolios. More recently, he served as the VP of Busi ness Development of an award-winning cleantech company.