Modern Building Services

FEATURE SMART BUILDINGS 16 MODERN BUILDING SERVICES APRIL 2023 transformation of buildings, we can interpret accurate building data and introduce digital solutions to make them more energy and resource efficient. With an ecosystem of open technology and Internet of Things (IoT) solutions, this will enable office buildings to tackle energy inefficiencies and contribute to reducing carbon emissions. Smart offices A smart office features integration with IoT sensors that can ensure transparency on space utilisation and manage density, from a building level down to a room and desk level. For example; a simple workplace app can enable desk and space booking and allow building managers to see which rooms and floors are in use and which aren’t, and thus manage power and heating effectively. Many elements of the smart building are also the foundation for reduced energy consumption. For instance, energy-efficient insulation and door controls, smart heating, ventilation, and air conditioning (HVAC), and sensor-driven LED lighting. Smart building controls that activate usage only when needed also clearly play a crucial part. Heat pumps Heat pumps are one of the most instrumental technologies in driving down emissions from heating in the building sector and are estimated to be at least three times more efficient than traditional fossil fuel boilers. Integration with a building’s digital ecosystem and the use of smart thermostats and active controls, can help unleash their full potential and drastically reduce energy wasted on unnecessary heating in the office. Yet, while there is wide consensus around the need to refurbish buildings andmake them smarter, the real estate sector needs a way of making this conversion financially sustainable. In Europe alone, the estimated cost of decarbonising its building stock is over $7bn, and the Global Alliance for Building and Construction has noted that “The pace of renovation in all the countries concerned is insufficient, staying well behind potential. Indeed, annual renovation needs to rise in industrialized countries to an average of 2%of existing stock per year by 2025, and to 3%by 2040.” Gaps in investment A recent study from Siemens Financial Services estimates the gap between the existing rate of investment in energy- efficient smart offices and the accelerated rate which experts are saying needs to be reached to achieve sustainability and climate change targets, as over $5bn in Europe alone. To bridge the investment gap, building owners and managers are having to look at changing how their buildings operate, their business models and how they are going to finance the required upgrades. Luckily, specialist financiers can offer smart financing arrangements to help manage cash flow and capital costs and facilitate investment in new technology. Smart finance offers three major advantages over generalist finance: Technology expertise which understands real business outcomes; a breadth of financing solutions which can meet the organisation’s exact needs; and smooth, sophisticated processes which makes the use of smart finance seamless and easy. Smart financing techniques can be implemented in a variety of ways, from the technology component level to larger installations or systems. Using the ‘as-a-service’ model, these arrangements can be tailored to align costs with the rate of benefit expected from the energy-efficient technology. Typical building energy efficiency savings are usually at least 20% (often far higher), representing a significant amount of capital that can be used to significantly subsidize, or in some cases, pay for the entirety of the cost of renovation. Conclusion The market for office real estate is changing. There is currently a greater public awareness of and concern for climate issues and this is echoed by increasingly stringent environmental regulations, the growing popularity of office-as a-service models, and the new normal of remote work leading to an overcapacity in office space. In short, building owners need to adapt their offering to the twin pressures of altered occupancy and decarbonisation. Smart, connected buildings technology can help them to tackle both while creating productive and attractive workplaces, and given the associated costs of investing in digital transformation, forward- thinking owners are increasingly looking to specialist finance to enable investment and offset costs.