Big data is revolutionizing the world from providing greater government accountability to helping digital marketers reach customers like never before. Local governments and commercial enterprises are using big data to organize energy inputs from buildings across the country to create national benchmarks for more efficient energy consumption.
What is Energy Benchmarking?
Under new energy benchmarking laws, cities across the country are now requiring large sized commercial and public buildings to report their energy usage. This is then reported to a national database, the EPA’s Portfolio Manager, where energy benchmarks are created to help buildings track their energy usage among similar property types.
Buildings can input energy usage data (key performance indicators) into the EPA’s Portfolio Manager using an automated energy management system.
Benchmarking programs are designed to track everything from a commercial building’s water consumption to its comparative energy use intensity (EUI). Tracking EUI communicates a building’s overall performance among buildings of similar size and property type.
Some energy benchmarking ordinances require building managers to publically disclose performance indicators reported in the Portfolio Manager. While understanding comparative energy inputs across similar buildings types in their area, building managers will now have the incentive to institute energy efficient programs to remain more competitive.
Waste Reduction
Building managers can also cut down on energy waste and report progress to key stakeholders. This benefits ratepayers and tenants who will also receive cheaper utility bills, if they actively participate in the program.
With a greater understanding of energy processes and waste areas, building owners can develop an energy risk management framework that reduces operational risk across the entire organization.
From the public’s perspective, energy benchmarking aims to reduce emissions, as well as help coordinate energy efficiency outreach incentives.
As historical data becomes more accessible, businesses can create baselines for improved performance year-over-year. An EPA study cited from the Institute for Marketing Transformation (IMT) found that energy benchmarking reduced energy consumption from participating entities by 2.4% each year.
Effective Supply Chain Management
Data analytics can also improve building managers’ positions to negotiate contracts with energy suppliers. This further creates incentives for OEM manufacturers to create more energy efficient products based on increased commercial and consumer sentiment for energy smart products.
Increased Real Estate Value
Finally, increased consumer demand for green friendly businesses and lower utility costs can lead to increased real estate value for buildings with energy efficient practices. Building managers can use this to negotiate for low interest hard money loans.
Tenants and ratepayers are more likely to pay higher rent for apartments and houses that leverage energy efficient strategies. This fosters competition among commercial buildings, which further fuels the drive for energy efficient building management.
Conclusion
While complying with energy benchmarking laws and purchasing an energy management system may seem expensive, businesses will save so much more money in the long-run by reducing energy waste.
Consumer demand for businesses to go green also increases the value of your products and your real estate. With lower utility bills, you can negotiate for higher rents among tenants and greatly increase your building’s real sale value. Ultimately, greater transparency leads to greater competition as building managers attempt to match their building’s energy performance with national benchmarks and improved targets.
