BUILDING EMISSIONS IS BIG BIZ

Energy Management Systems for Commercial Buildings; Energy Efficiency, Commercial Demand Response, and Advanced Building Management Systems
Alan Webber and Clint Wheelock, 4Q 2009 (Pike Research)

"…Commercial buildings – the places where we work, live, sleep, and play – are some of largest (if not the largest) single consumers of energy in the United States. We live in a 24/7 environment…[B]uildings and their related equipment are running non-stop… heating up the office…lights in offices, parking lots, hallways, and other locations… datacenters where racks and racks of servers run constantly…[A]ccording to the U.S. Department of Energy (DOE), commercial buildings are responsible for 18% of the energy used annually in the UnitedStates.

"…57% of the energy consumed in a commercial building is used for heating, cooling, ventilation, and lighting… 25% [of that] is for lighting. Cooling uses approximately 13%, heating 12%, and ventilation 7%. Other large energy uses in a commercial building include electronics (7%) and computers (4%)…"

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"[T]here have been three significant changes…[1] a shift in thinking…from energy as an expense of the production of goods and services to energy as an asset to be managed…[2] IT systems and software…to building and energy management is becoming more prevalent…to: [a] Embed intelligence at the controller…[b] Connect a multitude of devices…[c] Monitor, track, and manage equipment and energy…[d] Monitor and control equipment and systems remotely…[3] [S]hifts in government policies…[to]mandate the adoption of…energy efficiency for buildings and equipment…[and] government investment in the research and development of technologies.

"…[A] “new” energy management systems market…[and] the growth and influence of IT systems and technologies against a social and economic push for a more sustainable business model…[allow] businesses and commercial building owners and managers to better understand and manage the energy usage of a building…The result has been a burgeoning market for advanced building management systems, improved energy efficiency technologies, and a growing demand response market segment. With an increasing number of buildings 20 years old and older that need to become more energy efficient, this is a market that will continue to grow…"

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"…[T]he largest growth over the next 10 years exists in the institutional building usage category – those buildings used for healthcare, public service, education, and public safety. That category should grow by over $2 billion dollars between 2010 and 2020…Pike Research expects the total potential market to grow by $7.92 billion between 2010 and 2020…Government and private sector initiatives…are pushing to make new commercial buildings more energy efficient…[and] stricter building codes…will result in fewer buildings requiring upgrades…Eventually we will reach the point where all buildings will be net-zero energy buildings when they are built.

"A second area that will see a continued pattern of growth is the commercial demand
response market segment. Demand response essentially allows a utility to better manage energy usage on the grid during times of peak usage while providing the end user an incentive to participate in the program…[T]he total potential demand response market in the U.S. will grow to between 57.5 GWh and almost 81 GWh by 2020…"