July 2015 |
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Energy
Management in an “Internet of Things”
World It is not enough to simply benchmark
historical data (energy, operations, fault diagnostics or other),
rather it is necessary to utilize that history as a baseline to begin
to truly measure and manage facilities.
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Since
day one in Energy Management, technology has played a role in nearly
every aspect of the discipline. Energy conservation measure (ECM)
opportunities have involved lighting, HVAC equipment, variable
frequency drives, automation and a host of other systems and
applications. Certainly software from spreadsheets to Building
Information Modeling have been influencer's on the discipline as
well. However, the mainstream building and energy user community
still thinks of most building activities (construction, remodel,
retrofit, etc.) as “single events”. Jim Rodger’s, former CEO of
Duke Energy, introduced a term into the energy lexicon about a decade
ago; “cathedral thinking”. As a Certified Energy Manager (CEM),
consultant and solution provider, I always appreciated this simple
idea. In case the reader missed that dialog, please indulge a
brief explanation. Cathedral thinking in this case, likens the
work of energy management to that of building cathedrals in Europe
during the Middle Ages. Those cathedral builders had to approach
that work with enthusiasm, planning and a focus on continuity, which
recognized that those who started the work would never live to see that
Cathedral completed. Cathedral thinking in energy management is
critical, and the connection to the technology and Internet of Things
become clear when we realize that new technology, particularly
Analytics, offers both a framework and a vehicle for “energy
continuity”. This is true for all types of buildings, consider a
global pharmaceutical company that designed an environmentally friendly
350,000 square foot, LEED Platinum corporate headquarters. It
would have been easy for this owner to assume the single event of
building construction was completed, but the owner secured Analytics
technology and business process service and was able to generate
$405,000 per year in energy savings, cutting its bills by 26%.
Such examples are why this article views energy management through the
lens of Analytics, because ultimately this software presents the most
significant potential for advanced energy management of any technology
ever developed. That is a big assertion, and so the goal here is
to offer enough validation for the idea that managers will seriously
consider how this technology could benefit their facilities.
For
these authors, the words Energy and Analytics belong in the same
breath. That is why the title of McGowan's new book is;
Energy and Analytics, Big Data and Building Technology Integration, The
Fairmont Press 2015. Energy Management in the 21st Century is
being influenced by wide ranging policy, business and technology
trends; none more significant than Analytics, Big Data and the Internet
of Things (IoT). CEM’s can easily be deterred by the complexity
of these topics, but it is critical to develop an understanding of
these topics and how they can take energy management to a new
level. Another important point, perhaps not immediately evident,
is that Analytics technology cannot produce optimum results, unless
there is a robust underlying fabric of building / energy technology
that is fully operational and ideally based upon proven
standards. Integrating that underlying technology, as well as
IoT, with Analytics creates access to the full spectrum of data from
the building and the energy system to truly benchmark a building or
campus. Equally important Analytics is as much about building and
business intelligence, as it is about technology. Highly skilled
building experts, often called Analysts, are critical to deploying the
interface to the building, to identifying that data that is needed, to
understanding meaning in the data coming from the building and to
tailoring Analytics to specific applications in ways that optimize the
business process. It is not enough to simply benchmark historical
data (energy, operations, fault diagnostics or other), rather it is
necessary to utilize that history as a baseline to begin to truly
measure and manage facilities. And that measurement process must
be done in the context of the business process to ensure that the goal
is not just about improvement but continuous improvement. Equally
important is to understand that energy is essential, but also to
recognize that electricity is both the highest quality form of energy,
because it offers the cleanest and most diverse use, but the form of
energy that presents the greatest risk when it is interrupted.
Electricity is essential to business, education and entertainment, and
the buildings in which all of these industries operate. Yet the
system is fraying at the edges, and that means CEM’s must consider not
only energy management but energy resilience. Leveraging the
Internet of Things presents a whole set of new opportunities for both
management and resilience, consider the use of “Bluetooth” for
occupancy strategies in some large urban office buildings.
Accessing Bluetooth Low Energy (BLE), which is built into most of the
latest smartphones, Beacons can be used to determine building
occupancy, particularly on summer afternoons when peak demand is
high. Occupancy changes can allow lighting and HVAC to be
modulated to lower consumption profiles, without creating a negative
impact on occupant. At the same time the occupancy data with such
a strategy also tells the system where people are, opening up further
potential for savings. Accomplishing such strategies requires
that Building Automation and other systems are operating properly and
that tools like fault detection and diagnostics have ensured optimal
HVAC performance. With the advent of LED’s, this same level of
granular control for illumination is possible as well.
Interoperability can be extended to other building systems and
equipment through the BAS, but very likely to the business process
through an IoT interface as well. Interoperability and
interconnectedness of energy consuming equipment and devices in
buildings comes full circle by providing the information necessary to
truly understand and explain energy consumption profiles. At the
same time this technology enables near real time measurement and
verification of building performance and financial ROI of ECM
investments. The book outlines applications such as these, but it
also provides a treatise on the underlying technologies from BAS, to
data communications and middleware, as well as the Analytics tools
themselves, so that even a novice can understand how all these topics
hang together.
This Energy and Analytics topic may seem a bit futuristic to many
readers, and that is why the book closes with a series of case studies
to show what success looks like and show that this is happening
now. James M. Lee, CEO of Cimetrics, Inc. has been implementing
this technology for decades, even before IoT, and he wrote the
introduction to this series of chapters including one from his company
and one from Microsoft Corporation. These successes are not limited to
the high tech world though; cities, universities, hospitals and a wide
range of other building types are seeing great success with Energy and
Analytics as well. In fact the pharmaceutical headquarters
building mentioned above is a Cimetrics, Analytika implementation. It
was a collaboration with the building automation system provider, to
connect to and collect sensor and actuator data from almost 9,000
physical points. Data was collected continuously, 24 hours a day,
and 365 days a year, totaling over 850,000 data samples per day from
air handling units, chilled water and hot water pumps, chillers,
cooling towers, over 550 terminal units, solar panel arrays, and a
lighting control system. Over 1,000 Analytika software algorithms
continuously analyzed the data to identify opportunities to reduce
energy consumption, improve comfort, and reduce operations and
maintenance costs. Next engineers leveraged Analytika software to
identify opportunities, determine root cause, and calculate annual
savings impact and make actionable recommendations. The result
was an implementation that paid for itself in less than six months and
beyond energy savings also produced Sustainability through CO2
emissions reductions. Also of importance, this technology
provided information to evaluate and manage vendor performance on
service contracts, and allowed the owner to meet code and safety
requirements for this building.
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So energy management in an IoT world will be built on
the same principles as energy management in the past, and yet it will
afford an opportunity to conduct activities on a more continuous basis
than ever before. Analytics software can calculate energy
intensity on a near continuous basis, compare it to both baselines and
benchmarks, and even reach into building systems to access data that
can be used to perform analysis that explains why the profile looks as
it does. The software can then integrate a host of key
performance indicators and business factors to determine the
appropriate response to performance metrics. Cathedral thinking
has always been a corner stone of energy management, but the work is
labor intensive, and that has made it difficult to consistently
evaluate performance. The convergence of Analytics with IoT and
the underlying fabric of increasingly smarter building systems presents
significant opportunity for energy management.
About the Authors
Jim Lee – CEO, Founder – Cimetrics
Mr. Lee is the founder of Cimetrics and has acted as its CEO since its
formation. Mr. Lee has been a leader in the embedded control networking
and building automation community for over 20 years. As founder and
former President of the BACnet Manufacturers Association (now BACnet
International), the leading open systems networking consortium in the
building automation industry, Mr. Lee’s aggressive promotion of the
BACnet open protocol standard has helped make Cimetrics a high profile
player in the arena. Mr. Lee has an earned B.A. in Physics from Cornell
University.
Jack McGowan, Principal – McGowan Group
Jack is a consultant and a Senior Fellow with the Governing
Institute. He is also Principal with the McGowan Group.
Over four decades he has held wide ranging management positions
spanning the public and private sectors. He was President and CEO of
Energy Control Inc. (ECI), an Energy Service Company (ESCO) and led the
company through merger and acquisition by OpTerra Energy, currently the
largest privately held ESCO in the United States. He also held
management positions with Honeywell Inc. and Johnson Controls
Inc. He is Chairman Emeritus, U.S. DOE GridWise Architecture
Council, and a Fellow with the Association of Energy Engineers
(AEE). AEE admitted him to the “International Energy Managers
Hall of Fame” in 2003.
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