Despite coming into effect on April 1st, the UK’s new minimum energy efficiency standards (MEES) for 2023 are no joke. Are the changes just par for the course, or do they signal a larger shift in governmental priorities? Many countries around the world enforce national standards for energy efficiency within buildings. In the UK, almost all buildings must have an EPC, or Energy Performance Certificate, which provides buildings with a rating between A and G.
As of April 1st, 2023, it became illegal for any UK property with an EPC rating below E to be let or rented unless it is registered as a valid exemption. This shift is predicted to impact around 10% of London’s existing office space, and over the coming years, the rating requirement is expected to increase to B. This would mean over 70% of existing offices would become unleasable, indicating a clear focus on the government’s environmental priorities. Landlords must now implement the right changes or risk stranded assets, especially in older commercial buildings that weren’t designed with energy efficiency in mind.
Given this context, commercial real estate (CRE) owners and facilities management (FM) teams face significant challenges in improving energy efficiency while managing costs. This article explores advanced strategies and technologies that can help CRE stakeholders navigate these challenges effectively.
Understanding the Scope: The Impact of Energy Efficiency Regulations
The New UK Standards and Their Implications
The introduction of stricter MEES in the UK marks a significant shift towards enhanced sustainability in commercial real estate. With fines of up to £150,000 for non-compliance, landlords face not only financial penalties but also the potential loss of revenue from buildings that can no longer be leased. Additionally, the future escalation to a required EPC rating of B further complicates matters, particularly for older properties.
Global Energy Efficiency Trends
While the UK’s standards are among the strictest, similar regulations are being implemented worldwide. For example, Local Law 97 in New York, BERDO in Boston, and BEPS in Washington all focus on reducing energy consumption in buildings. Although the specific criteria and methods differ, the overarching goal is universal: ensuring that buildings are as energy-efficient as possible to meet global sustainability targets.
Step 1: Data Collection – The Foundation of Energy Optimisation
Smart Metering and Building Management Systems (BMS)
The first step towards optimising energy consumption in any commercial building is to gather accurate data. Smart meters, when integrated into a comprehensive Building Management System (BMS), provide real-time insights into a building’s energy use. This technology allows for precise monitoring of electricity, water, gas, and heating usage, giving landlords and FM teams the data they need to identify inefficiencies.
IoT-Enabled Devices for Granular Data Collection
The Internet of Things (IoT) has revolutionised how data is collected in commercial real estate. IoT-enabled devices can be deployed throughout a building to measure temperature, humidity, occupancy, and energy usage at a granular level. This data feeds into the BMS, offering a detailed picture of how and where energy is being used – and wasted.
Step 2: Data Analysis – Turning Information into Actionable Insights
Energy Management Software (EMS) for Data Processing
Collecting data is only the first step; the real value comes from analysing this data to uncover actionable insights. Energy Management Software (EMS) platforms are designed to process vast amounts of data from various sources within a building. These platforms use advanced algorithms to identify patterns, predict energy demand, and highlight areas where consumption can be reduced.
Artificial Intelligence and Machine Learning
Artificial Intelligence (AI) and Machine Learning (ML) technologies take data analysis to the next level. These systems can learn from historical data, predict future energy needs, and automatically adjust building systems to optimise energy usage. For example, an AI-driven system might predict when occupancy levels will peak in a building and pre-adjust heating, ventilation, and air conditioning (HVAC) systems accordingly, ensuring comfort while minimising energy waste.
Step 3: Implementing Energy Optimisation Technologies
Building Automation Systems (BAS)
Building Automation Systems (BAS) are at the heart of modern energy optimisation strategies. A BAS integrates various building systems, such as HVAC, lighting, and security, allowing them to work together seamlessly. By automating the control of these systems based on real-time data, a BAS can significantly reduce energy consumption without compromising occupant comfort.
Energy Storage Solutions
One of the challenges of optimising energy use is managing the variability of energy demand. Energy storage systems, such as batteries, can store excess energy generated during off-peak times or through renewable sources like solar panels. This stored energy can then be used during peak demand times, reducing reliance on the grid and lowering energy costs.
Renewable Energy Integration
Integrating renewable energy sources, such as solar panels or wind turbines, into a building’s energy mix is another effective strategy. Not only do these technologies reduce a building’s carbon footprint, but they also provide a hedge against rising energy costs. When combined with energy storage systems, renewables can make a building largely self-sufficient, further reducing operational expenses.
Optimising HVAC Systems: The Key to Significant Energy Savings
Advanced HVAC Controls
Heating, Ventilation, and Air Conditioning (HVAC) systems are often the largest consumers of energy in commercial buildings. Advanced HVAC controls, including variable air volume (VAV) systems, can adjust airflow based on occupancy and temperature needs in different parts of a building. This targeted approach reduces energy waste compared to traditional, constant-volume systems.
Demand-Controlled Ventilation (DCV)
Demand-controlled ventilation (DCV) is another technology that optimises HVAC performance by adjusting ventilation rates based on occupancy. Using CO2 sensors, DCV systems can determine the number of occupants in a space and adjust ventilation accordingly. This not only improves indoor air quality but also significantly reduces the energy required for ventilation.
Lighting Controls: Beyond LED Bulbs
Smart Lighting Systems
While switching to LED bulbs is a well-known strategy for reducing energy consumption, smart lighting systems offer even greater savings. These systems use occupancy sensors, daylight harvesting, and automated dimming to ensure that lights are only used when needed. Additionally, smart lighting can be integrated into a building’s BMS for more comprehensive energy management.
Tunable Lighting
Tunable lighting allows for the adjustment of light colour and intensity based on the time of day or specific tasks. This not only enhances occupant comfort and productivity but also reduces energy use by providing the right amount of light at the right time. In a commercial setting, where lighting needs can vary throughout the day, tunable lighting systems can contribute to significant energy savings.
Energy Efficiency in Retrofitting: Enhancing Older Buildings
Envelope Improvements
For older buildings, improving the building envelope – the physical barrier between the interior and exterior – is crucial for energy optimisation. This includes upgrading insulation, windows, and roofing materials to reduce heat loss in winter and heat gain in summer. These improvements can drastically reduce the energy required for heating and cooling, making them a vital component of any retrofit strategy.
High-Efficiency Boilers and Chillers
Older buildings often rely on outdated boilers and chillers that consume excessive energy. Replacing these with high-efficiency models can lead to substantial energy savings. Modern boilers and chillers are designed to operate more efficiently, especially when combined with advanced controls and regular maintenance.
Monitoring and Maintaining Optimised Performance
Continuous Commissioning
Even after implementing energy-saving technologies, continuous commissioning is essential to ensure that systems operate at peak efficiency. This process involves regular testing, calibration, and adjustment of building systems to account for changes in occupancy, weather, and building use. Continuous commissioning helps prevent performance drift, ensuring that energy savings are maintained over time.
Energy Performance Contracts (EPCs)
Energy Performance Contracts (EPCs) are agreements where a third party, such as an energy service company (ESCO), guarantees energy savings in a building. Under an EPC, the ESCO covers the cost of energy-saving upgrades and is paid through the resulting savings. This model allows building owners to implement costly energy-saving measures without upfront capital expenditure, making it an attractive option for many CRE stakeholders.
Conclusion
The push for energy optimisation in commercial real estate is an opportunity to enhance sustainability and reduce operational costs. With the UK’s stringent MEES now in effect, and similar regulations emerging globally, CRE owners and FM teams must look for partners to improve energy efficiency.
Tyrrell Systems has been a staple partner for multiple CRE clients to optimise their energy use and consumption for over 25 years. Book a call and talk about your CRE energy needs with the team.
FAQs
1. What is the MEES regulation, and how does it impact commercial real estate in the UK?
The Minimum Energy Efficiency Standards (MEES) require all rental properties in the UK to have an EPC rating of E or above. This impacts commercial real estate by forcing landlords to upgrade their buildings or face fines and the risk of stranded assets.
2. How can smart technology help in reducing energy consumption in commercial buildings?
Smart technology, including IoT devices and Building Management Systems, allows for real-time monitoring and control of energy use, helping to identify inefficiencies and optimise energy consumption automatically.