Navigant Research Blog

Managing Small Buildings’ Energy Use

— September 4, 2014

Engaging the small and medium commercial building (SMCB) market in energy management tools and solutions has been a challenge.  One reason is that the energy costs take up a relatively small proportion of energy costs for SMCB owners, compared to the massive energy bills in large commercial buildings.  Another reason is the lower penetration rates of digital controls and building management systems.  This is forcing major players to rethink how to pursue this market.  Most traditional building energy management system (BEMS) vendors essentially scale down their BEMS offerings for SMCB customers looking for better performance out of lighting and heating, ventilation, and air conditioning (HVAC) systems.

A new crop of firms is engaging the SMCB market with a more lightweight offering, not focusing on the details of equipment performance.  In early July, the electric utility Southern California Edison announced a partnership with FirstFuel Software to deliver rapid analysis for improved energy performance for medium-sized commercial buildings.  Using meter data analysis and building characteristics, FirstFuel will identify efficiency opportunities for the more than 10,000 medium-sized commercial buildings in the utility’s service area.  The FirstFuel system uses meter data in concert with general building characteristics to identify general building performance norms.  Following this analysis, FirstFuel develops an ordered list of energy conservation measures.  The direct partnership with the utility means that the best efficiency options will be available in real-time.

Breaking and Entering

The many pathways to engaging with the SMCB market will be interesting to watch.  While there are certainly more SMCBs than large buildings, the level of interaction and number truck rolls will hamper success unless solutions providers can focus on easily deployable tools.  Speaking of easily deployable tools, smart thermostat maker Nest (mentioned in a previous Navigant Research blog) is now getting into the SMCB market with an interesting strategy.  Partnering with Direct Energy, Nest offers a smart thermostat that can be purchased and installed by SMCBs and used to ensure customers’ energy use is optimized so that they can receive the fixed power rates they signed up for.  While this might seem like a gimmick to increase Direct Energy’s market share, it could help validate the value of efficiency management in a tough market.

And that market has potential.  In Navigant Research’s Energy Management for Small and Medium Buildings report, it is forecast that the global SMCB BEMS market is expected to grow from $231.3 million in 2013 to $1.3 billion in 2022.  Corporate commitments to reduce carbon and energy and a drive to reduce energy expenditures make the SMCB market ripe for BEMS vendors.  Other drivers, like regional policies, the increased prevalence of green building certification, and the associated relevance of BEMSs, are growing as well.  For owners and managers of SMCBs interested in energy management, the approaches will depend on their goals.  Some will want fast, low-touch solutions, like FirstFuel’s technology, while others will want the full suite of BEMS services, like that of large energy management systems for commercial buildings.  The dynamic BEMS market will be as diverse as its buildings, regardless of shape, or more importantly, size.

For a more detailed examination of this promising sector, join us for our free webinar, Energy Management Systems for Small Buildings, on Tuesday, September 16.  Click here to register.

 

The Race to Control the Smart Home Heats Up

— September 3, 2014

The race to control the smart home is heating up.  Four tech giants have made strategic moves that portend a lengthy fight – one in which consumers should come out ahead, eventually, and more energy efficient homes should result.

The four big players – Microsoft, Samsung, Apple, and Google – are each taking different approaches and are at different stages of development.  Their recent tactical moves include:

  • Microsoft is acting as an incubator.  The software giant (along with partner American Family Insurance) has set up an accelerator program to encourage tech startups to create smarter homes.  In the current round, 10 companies have been chosen, two with a clear focus on energy efficiency.  Chai Energy aims to give consumers real-time energy consumption data for the whole house and for individual appliances.  Heatworks offers what it calls “the first digital tankless water heater” to conserve energy and reduce water consumption.
  • Samsung is making acquisitions.  In August, the gadget and appliance maker announced its purchase of SmartThings, a startup offering a hardware-software solution that connects many in-home devices, such as light switches, outlets, locks, and thermostats.  Also in August, Samsung bought Quietside, a U.S.-based distributor of heating, ventilation, and air conditioning (HVAC) products, and the South Korean conglomerate says it will release an enhanced lineup of HVAC products that better addresses North American customers’ needs.
  • Apple is featuring HomeKit as part of iOS 8.  The mobile operating system will include HomeKit, a new software framework, when it is released this fall; the new software will enable users to connect iOS and third-party devices in the home in order to control lights, door locks, and thermostats, among other devices, from mobile devices.
  • Google’s Nest Labs is opening its platform. The company’s software is now available to outside developers that can write applications that connect devices to Nest thermostats and smoke detectors.  The company also acquired Dropcam, a startup that offers video monitoring equipment for the home.

No Quarter

This competition for smart home supremacy will continue for a number of years.  Why?  Because home energy management remains a fragmented world, with no single standard or platform.  No clear leader has emerged, and interoperability will be an issue.  Furthermore, none of these companies want to concede ground to the other if they don’t have to.  From an energy-savings standpoint, Google’s Nest Labs has momentum.  But don’t count out the others in terms of volume and the ability to drive adoption, particularly Apple and Samsung; both can leverage large installed bases of mobile device users, and Samsung has the advantage of already selling connected appliances.  The race has just gotten started.

 

Automakers Add Gears for Better Fuel Efficiency

— September 3, 2014

Automakers are pursuing many options to improve the fuel efficiency of their cars and trucks.  Most recently, the emphasis has been on reducing weight by changing to less dense materials even though they’re more expensive.   There is also ongoing development work with electrification to recover and reuse kinetic energy.  The latest change to help manufacturers comply with tightening fuel economy targets worldwide is revamping the automatic transmission.

Historically, automatic transmissions were inherently less efficient than manual gearboxes, and convenience was the tradeoff for the loss of a few percentage points in fuel economy and acceleration. Some of the latest automatic gearboxes, though, are actually more efficient than a manual gearbox with a clutch.  Today, the desire to retain complete manual control over gear selection means, in some cases, slightly higher fuel consumption and longer 0 to 60 mph times.  However, a stick-shift generally still saves money off the new sticker price and in North America is sometimes regarded as an anti-theft device.

On Up to 10

From the late 1960s, three speeds was the standard automatic configuration, and it wasn’t until the early 1980s that overdrive and lock-up top gears were added to help improve the efficiency, leading to more four- and five-speed automatic gearboxes.  In 2002, gearbox technology began to get a lot more attention when BMW put the first 6-speed automatic into production, followed by Mercedes with its 7-speed in 2003 and Toyota with an 8-speed in 2007.  Recently there have been a number of transmission announcements:

  • GM is crediting its new 8-speed automatic for making the 2015 Corvette Stingray faster and more efficient.  More gears allows for a lower first gear ratio for better acceleration, as well as a higher final drive ratio to reduce engine speed at highway cruising speed.  The 8L90 transmission will also feature in GM’s range of pickup trucks and SUVs.  Careful packaging and internal design features means that the new gearbox fits the same space as the 6-speed 6L80 – even though it can handle higher torque and power in addition to weighing less.
  • ZF introduced its revised 8-speed transmission in the 2014 BMW 5 Series.  This second-generation 8HP gearbox (the first was introduced in 2009) offers revised gear ratios to take advantage of the latest engine efficiency improvements that deliver more torque at lower rpms.  Advanced torsional vibration dampers improve smoothness, and a new shifting design has reduced internal energy losses.  Other users of the 8HP for rear-wheel-drive cars are Audi, Jaguar Land Rover, and Chrysler.
  • Chrysler is building a 9-speed transmission under license from ZF.  It went into production at the end of 2013 in the Jeep Cherokee.  ZF also supplies the 9HP for the Range Rover Evoque.  Chrysler is planning to implement a version in its minivans and smaller front-wheel-drive cars, as well.  Although the wider ratios provide better fuel economy and acceleration, concerns have been raised about erratic shifting.  These are being addressed via a software update.
  • In September 2013, Mercedes launched its 9G-TRONIC transmission on the E 350 BlueTEC diesel saloon car.  Despite two additional gears and a higher maximum torque, the new automatic transmission requires no more installation space than its predecessor and is also lighter.  The torque converter housing is made of lightweight aluminum, while the transmission housing with plastic oil pan is made of an even lighter magnesium alloy.

Ford and GM have already announced that they are planning to develop a 10-speed gearbox together.  It seems that manufacturers have figured out how to get more ratios in the same space and, at the same time, reduce internal energy losses so that efficiency is higher while maintaining or improving performance.  The key is integration with the latest engine characteristics to optimize the driving experience.  This topic will be covered in more detail in our upcoming report on automotive fuel efficiency.

 

A Conversation with Sharon Alton, Executive Director of USGBC Colorado

— September 3, 2014

On August 13, the U.S. Green Building Council’s (USGBC’s) Colorado chapter held a commercial real estate forum to highlight green building projects in the state, particularly Denver’s recently reopened Union Station, which is pursuing LEED Gold certification. 

Following the event, I sat down with USGBC Colorado’s executive director, Sharon Alton, to discuss the state of green building and LEED in Colorado.

Madeline Bergner: Are any particular commercial building types adopting LEED more than others?

Sharon Alton: Colorado actually mirrors the rest of the country.  Office is by far the highest building sector percentage of LEED-certified buildings, and I think the reason for that is that it’s the most common one.  LEED for homes, either single-family or multi-family, comes in second behind office, and LEED for schools is third.  We have a big conference every November, the Green Schools Summit, which highlights green building in schools.

MB: What are some of the drivers of energy efficiency in new construction and retrofits in Colorado?

SA: A lot of investors are demanding LEED certification for buildings in their portfolio, so that’s definitely a factor.  Technology is the other key one.  As technology is improving really quickly, it’s just going to make the whole green building process that much easier and more economical.  Ten or 12 years ago, certain aspects of green building technology were more expensive, and they’re not now because they are more efficient and new technologies have started to drive down the cost.

MB: On the other side, what are some barriers to green building and LEED certification?

SA: If decision makers don’t adopt LEED early in the planning process, costs can increase.  A green building doesn’t need to cost more than a non-green building.  However, many times, because people think about pursuing LEED too late in the process, then it does end up costing more, and that’s what gives green building a negative reputation.  As a result, part of what we need to do is educate people and explain to them that they need to adopt this early on in the process, and therefore costs won’t need to increase.

MB: Is green building activity in Colorado mainly concentrated in Denver? What other kinds of projects are going on around the state?

SA: Since Denver is the most dense, populated area of the state (as well as other areas along the Front Range), that’s where you’ll see the most green building.  However, there are great projects going on throughout the state.  We have a group in Aspen that promotes green building there, and there are some interesting projects in the area.  USGBC Colorado gives green building awards, and we received some great award applications from Grand Junction, Colorado Springs, and other parts of the state.  You’ll find green building all over, but along the Front Range is where most the green building is, purely because it’s where most of the buildings are.

MB: At the forum, one panelist said that the ultimate goal of USGBC and similar organizations was to no longer exist.  Is this how you see the future of green building?

SA: If we get to a point where everyone is doing sustainable things and utilizing green building, that’s going to become the status quo.  As we try to push the envelope and make things greener and greener, and get to net zero, LEED Platinum may end up someday just being the code that all buildings have to build to.  So then you wouldn’t call it a LEED building, it would just be a building.

 

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