Energy management control system: For smarter buildings

At a time when commercial real estate (CRE) businesses need to be more energy-conscious to meet emissions targets and accelerate building decarbonization, energy management control systems (EMCS) technology performs a vital function. 

These systems help portfolio managers achieve greater operational efficiency, and leading technology can enhance a CRE business’s decision-making with data insight, utilizing the software’s ability to predict future energy needs and allocate resources accordingly.

EMCS should be at the heart of an organization’s energy management strategy, integrating with a comprehensive IoT sensor-driven network to allow facility managers to accurately place their finger on the pulse of their portfolio’s operational energy consumption. 

This article will explore everything your CRE business needs to know about optimizing energy management with the best EMCS systems and the benefits these advanced solutions can offer for your real estate portfolio.

What is an energy management control system?

An energy management control system (or EMCS) is a platform that combines hardware such as IoT sensors and energy-efficient HVAC systems with software that can quickly identify operational inefficiencies and predict energy consumption trends. They are called ‘building energy management systems’ (BEMS). These systems specialize in real-time monitoring of a building’s energy consumption, providing accurate, up-to-the-minute HVAC, lighting, and mains electricity usage analytics. 

Components and architecture: How does it work?

An effective EMCS will only deliver energy-saving results if the building infrastructure is optimized for software. It should not be seen as a ‘silver bullet’ solution; an EMCS won’t fix an aging, energy-intensive HVAC system. So any solution will need to leverage software and hardware to maximize operational efficiency effectively.

EMCS hardware includes an array of smart technological solutions that can monitor and provide analytics at an electricity grid level. Business smart meters are the most apparent application tenants will be most familiar with. These are typically combined with ‘smart grids,’ managed by digitally-controlled ‘smart panels.’ Unlike a conventional electrical panel box, a smart panel is the catalyst for energy management control, connecting to the software to provide accurate consumption data.

The hardware will synchronize with a state-of-the-art energy management software suite, harnessing cloud-based integrations and machine learning (ML) algorithms to analyze the wealth of energy data across a building or portfolio. 

These systems allow your facilities managers to analyze and compare historical trends across the system, benchmark against competitors, and provide accessible frameworks to compile consumption data for environmental benchmarks and ESG reporting. Market leaders in the EMCS software space include Johnson Controls, ABB, Schneider Electric, and Honeywell.

Integration with building management systems

Many CRE organizations will adopt an EMCS as part of a more comprehensive building management system (BMS), controlling all aspects of an asset’s performance in the round. EMCS software will either integrate with or act as one part of an all-in-one BMS suite. Both systems collect and share real-time data on all aspects of the building, including internal temperature, humidity, occupancy, and energy consumption. 

This solution can be especially effective with full IoT integration, sensor-driven technology collecting data on every aspect of building performance, from stairwell lighting to individual room temperatures, and actuators that physically control core systems based on parameters such as occupancy levels and time of day. These solutions provide a comprehensive view of building performance, enabling informed decision-making.

Benefits for your commercial real estate portfolio

Effective energy management isn’t required to streamline your real estate operations and hit those ESG targets. In Europe, the EU’s Corporate Sustainability Reporting Directive (CSRD) will impose stricter emissions on all businesses – not just those in real estate. EMCS implementations will make optimizing energy efficiency and meeting EU reporting standards easier for your CRE business.

Cut operational costs by up to 16%

The most apparent benefit of optimized energy solutions is a lighter gas and electricity bill at the end of the month. Studies show that implementing EMCS can reduce building energy consumption by up to 16%, and up to 40% for artificial lighting systems.

As global energy costs continue to rise throughout the early 2020s, energy-efficient buildings consistently perform better for CRE businesses than those that aren’t. In the fuel crisis of 2022, utility bills accounted for more than a fifth (22.5%) of office occupier service charges in the UK. If your CRE business had the power to optimize energy use and not waste a single watt – would you not be in a better position financially?

Meet sustainability goals and attract premium tenants

Research into more than 40,000 commercial offices in the US by ProptechOS found that CRE businesses can place a rental premium of up to 37% on spaces in LEED-certified properties. Energy benchmarking and data analysis are core components of LEED certification, adopted through ISO 50001 as an international standard. 

As the price gap between energy-efficient and energy-inefficient properties continues to widen, commercial tenants will become more selective around the spaces they lease, as reflects on their greenhouse gas emissions reporting. As a CRE organization with a portfolio of optimized buildings, you can assure tenants of your space’s operational efficiency and competitively lower emissions levels.

Real-time monitoring and insights at your fingertips

Another major benefit of EMCS is the up-to-the-minute data collection and insight into energy usage within your buildings and across your portfolio. This can quickly alert your management teams to anomalies, surges, or unusual spikes in consumption. 

CRE organizations are also harnessing this data through digital twin technology, using advanced software to create virtual duplicates of their operations and supply it with IoT data from the EMCS and other BMS data from building management systems.

This real-time monitoring brings much more clarity to commercial operations; it enhances decision-making, shortens maintenance time through predictive maintenance, and allows teams to make more environmentally conscious choices around building performance.

Common questions about energy management control systems

• How much does an energy management system cost?

Estimating the price to implement an EMCS in your building will depend heavily on the structure’s size and usage. Larger commercial offices and heavy industrial buildings will necessitate more expensive systems with comprehensive IoT networks. 

According to CIM, a building management system will cost between $2.50 and $7.50 per m2. If your building is larger than 50,000 sq ft, it is said that the energy efficiency savings will offset the cost of installing systems as a result of the optimized technology.

• How do I choose the right smart system for my buildings?

A variety of factors will determine whether a particular EMCS is best for your organization. A lot will depend on the size of your building, the occupancy levels, the building’s location, or whether your organization uses flexible energy or off-grid power solutions. 

Many EMCS and BMS manufacturers will work with your CRE organization to procure a bespoke solution that meets your portfolio’s needs, empowering your building management teams to utilize the new technology to its potential.

• What’s the ROI timeline for EMCS implementation?

Once your EMCS system is up and running, your organization can expect to see quick returns with optimal use – often within a year as a result of energy savings and increased rental markup. EMCS implementation can often accelerate the path to achieving net-zero building status.

It can also assist in passing certification for LEED or other benchmarks – further increasing ROI through additional rental income and wider commercial savings across your operations.

Streamline your energy management using ProptechOS

Investing in an energy management system is a long-term strategic move towards a more sustainable future, yet optimizing energy costs and implementing predictive maintenance of key energy infrastructure such as your HVAC system can deliver short-term, bottom-line gains. EMCS can be adopted on its own, or as part of a more comprehensive BMS solution that encompasses every aspect of building operations, from tenancy management to fire safety.

At ProptechOS, we understand the challenges of implementing optimal proptech solutions to enhance operational efficiency and deliver meaningful progress towards ESG and decarbonization targets. That’s why we have created our energy toolbox, designed to revolutionize energy savings across all stages of the energy efficiency journey. 

With the optimal configuration of your operations’ energy usage, ProptechOS solutions can offer portfolio-scale energy solutions with AI-driven technology. Leverage data-led insights to save up to 36% on cooling and heating costs.

With the strength of an energy-saving ecosystem, ProptechOS provides best-of-breed solutions for your long-term energy-saving journey.

Your CRE business can sign up for a free trial of ProptechOS today.