High utility prices continuing to increase speed of ROI

Investment is being encouraged in energy-saving measures due to the increased levels of return on investment

When considering the subject of energy management and its increasingly important relevant to all areas of the FM industry, it is tempting to focus on definitive aspects such as the drive to achieve net zero carbon emissions.

High numbers of FMs and their service provider partners are reporting how net zero is driving, or is central to, their current and future business strategies. Although net zero is undeniably important, there are several more elements worthy of note and further discussion within the energy management topic and we will endeavour to include these in the following feature.

There has been considerable emphasis placed on both corporate social responsibility (CWR) and environmental and social governance (ESG), for example, and although these also include highly relevant link to net zero, energy management can be seen to provide more scope for exploration. As long as the outcome of energy management projects result in the deliverance of greater efficiencies, the resulting benefits can be aligned with all the most responsible aims of FMs and service providers and additionally with those of the wider UK society.

One of the most obvious advantages of improving efficiencies and reducing the levels of energy consumed by the facility or estate in question is that of cost savings.

More efficient operation is a major aspect of all new product development, which means that simply upgrading existing plant and equipment with the most recent versions will result in the energy demand to run them being reduced.

When these exercises are part of the established planned and preventive maintenance (PPM) schedule, they will frequently include outlines for return on investment (ROI) periods that will typically be based on energy and other price levels at the time of planning.

Following the rapid increase in the cost of electricity, gas and most other forms of energy production over the last two years, however, this should mean that ROI will be achieved much sooner than anticipated.

Depending on the capital expenditure attitude of the organisation in question, there is potential for additional investment in new plant and equipment to be included, with the aim of creating further efficiencies. Reports from the FM industry include the fact that enquiries for renewable energy installations have increased exponentially since the cost of energy has risen, which is highly likely to be driven by the example outlined above.

A new mindset

While these arguments in favour of investing in new plant and equipment are based on price and cost, another advantageous aspect worthy of consideration is that of value. There has been high levels of discussion over this point for many years and thought leaders within FM are increasingly stating that this has resulted in a change of attitude by many clients.

With the Building Regulations and other legislation now requiring clients, contractors and service providers to adopt a more responsible approach to the building and upgrading of facilities, it is no longer acceptable to choose the cheapest products or services. These principles should also be applied to all energy management exercises to ensure they are designed, installed, commissioned and operated in the best way possible to achieve the best outcomes.

Perhaps one of the most positive recent developments is that it is now much easier for everyone to understand whether the energy management project has achieved its aims, particularly through the correct application and use of modern technology. Building energy management systems (BEMS) combined with the application of strategically-placed sensors are allowing stakeholders to access and view all elements of the data relating to their plant and equipment.

It is no longer necessary for team members to be in the facility itself, as remote monitoring technology allows data to be accessed on any mobile device. Rather than having to wait for the quarterly energy bill to show whether energy management efforts have been successful, these can now be viewed instantly.

Not only are the results able to be seen, it is also possible for systems to be adjusted to deliver higher levels of efficiency, as well. These developments are having another advantageous outcome in that they are changing the former attitudes to energy and BEMS management, which was often regarded as something of a ‘black art’, by making them much more clear and easily understood.

When companies are able to prove the effectiveness of their energy management projects through the sharing of clear and concise data, it is far more likely that these successes will encourage more actions through the levels of increased confidence provided to investors.

While it is essential not to lose sight of the importance of managing budgets, everyone now has the opportunity to ensure that each investment achieves its aims through the gathering of data, with the additional option of improving outcomes further by making careful adjustments in the future. Yet another important consideration to include when examining the overall subject of energy management is the adoption and application of new technologies.

Whether companies are considering the updating of their ageing BEMS systems or investing in highly sophisticated and comprehensive CAFM systems, the best means of managing energy consumption should be a central consideration within all exercises to determine which product to choose.

The same can also be said when choosing the best options to include when updating existing or designing new plant rooms. Industry experts are increasingly supporting the view that each facility and project should be treated as a standalone operation to avoid the approach of “we’ve always done it that way,

The discussion points included above are not intended to oversimplify or refute the fact that the task of energy management remains a highly-skilled operation that, depending on the scale of the operation in question, can frequently provide full-time occupations for experienced and qualified personnel.

Rather than overlooking their efforts, the use of data can help to further emphasise the benefits their skills deliver and further illustrate the essential value they provide.

Long-term value

Although the task of energy management is becoming ever more important, the results being achieved are becoming easier to share, explain and understand through the effective analysis of targeted data. It this aspect that is also helping to make energy management achievements align with all other areas of CSR, ESG and social value activities adopted by each company.

One of the most important elements to appreciate within all the points outlined above is that of the delivery of long-term value and commitment to responsible business practices.

This has been alluded to in previous FM Director features and is likely to be explored in more detail in future, with the intention of further emphasising the many positive elements of best practice FM service delivery.

While the net zero carbon emissions topic remains highly important and becoming more prevalent within contractual agreements, the topic of energy management can be seen to be much wider. It is, of course, essential within the net zero discussion but has many more areas of consideration to understand and explore, as can be understood by considering the topics above and many others.

When all these beneficial aspects are appreciated, the true value of good energy management can be seen and even added to further, with the aim of increasing the benefits delivered and further raising the value of the FM industry.