Unlocking Net Zero: The Role of Data in Energy Benchmarking

Hello, Champions of Net Zero!

In the quest for a sustainable future, the role of data in achieving net zero emissions cannot be overstated. Graham Paul, Service Delivery Director at TEAM Energy, sheds light on the intricate relationship between data, energy benchmarking, and the innovative technologies that can propel energy managers toward their net zero objectives.

The built environment is a significant contributor to the UK’s greenhouse gas (GHG) emissions, and it plays a crucial role in electricity consumption. When accounting for both direct and indirect emissions from the energy consumed, buildings are responsible for a staggering 23% of the UK’s total emissions. Moreover, they account for 59% of the nation’s electricity usage. With such figures, it’s clear that the path to net zero must address the energy consumption within our buildings.

At the level of national policy, frameworks are being established to curb these emissions and enhance energy efficiency across buildings. These initiatives include mandates to improve energy efficiency while transitioning processes to be powered by renewable sources. However, many organisations face significant challenges in adapting to these changes, whether they are voluntary or mandated by law. The complexity of the built environment, coupled with the need for immediate action, makes this transformation daunting.

The Importance of Data in the Net Zero Journey

Achieving net zero is not merely about balancing the emissions produced by an organisation with purchased carbon credits. It requires a profound understanding of the current state of a business, the steps to be taken, and the tools necessary to reach its goals. In this context, data becomes invaluable—providing insights and enabling cutting-edge tools that can lead to meaningful change.

For too long, energy management has relied on estimates, historical averages, and rudimentary spreadsheets. While these methods may have been well-intentioned, they are insufficient for guiding organisations toward net zero. To comply with the Science Based Targets initiative (SBTi) Net-Zero Standard, organisations must aim for a minimum of a 90% reduction in emissions across their entire value chain, only offsetting what remains. This ambitious goal is unattainable without the precise and granular data collected regularly.

Energy managers require comprehensive data to focus their efforts on what they can control and systematically address areas of concern. This begins with a thorough understanding of their building stock and its energy consumption patterns.

Energy Benchmarking: The Key to Effective Management

In order to assess their building stock’s energy consumption, energy managers must employ benchmarking techniques that provide meaningful comparisons. Benchmarking is essential for achieving net zero emissions, as it allows organisations to identify buildings that are consuming more energy than necessary and target these facilities for energy-saving measures. By implementing data-driven decision-making, organisations can initiate meaningful reductions in their emissions.

However, not all data will be immediately useful; much of it will need to be ‘normalised’ to extract meaningful insights. This is particularly challenging given the diverse nature of most organisations’ building portfolios. For instance, an expansive, ageing hospital complex with 24/7 operations has vastly different energy needs compared to a newly constructed community health centre or a university research facility. To draw effective comparisons that inform actionable decisions, energy managers must employ sophisticated methodologies that make their data useful. It is no wonder that many energy managers seek assistance from energy and net zero consultants to help process this critical data.

Harnessing New Technologies for Better Data Management

In the ever-evolving landscape of business and energy management, organisations must adapt continually to changes, often of their own making. As companies commit to ambitious net zero targets, they quickly find themselves inundated with data from their building stock. This new wealth of information necessitates a robust framework for normalisation and analysis to ensure effective benchmarking. With each ambitious target comes new challenges, but several emerging technologies are helping businesses navigate these complexities more effectively.

Smart meters, for example, are already prevalent in the UK, with a penetration rate of 57% among non-domestic users. With the impending market-wide half-hourly settlement (MHHS), the functionality of these meters is set to expand further. No longer limited to basic consumption readings, smart meters offer granular, real-time data that enhances understanding of energy demand, peak loads, and potential anomalies within an organisation’s building stock. Coupled with market incentives, time-of-use tariffs will soon become standard, encouraging smarter energy consumption and leading to reduced emissions.

However, the sheer volume of data generated by smart meters can be overwhelming. This is where Artificial Intelligence (AI) steps in, providing unparalleled analytical capabilities and the ability to automate processes. AI allows energy managers to discern patterns across their building stock that manual analysis might overlook while facilitating real-time asset management. For example, AI algorithms can automatically optimise HVAC systems based on actual and predicted weather patterns or flag potential peak demands that could incur excess capacity charges. The true power of AI lies in its capacity to identify and rectify energy efficiency issues more effectively than human analysis alone.

Moreover, energy managers can gain invaluable insights through the use of digital twins—dynamic, virtual replicas of real buildings that simulate their performance under various conditions. By integrating real-time data from building management systems (BMS) and Internet of Things (IoT) sensors, digital twins empower energy managers to identify inefficiencies and test potential energy-saving measures prior to implementation. Such technologies are likely to become essential tools for forward-thinking energy managers and organisations, enabling them to model their buildings’ performance under a range of future scenarios.

Looking Ahead: The Future of Energy Management

As organisations across the UK navigate their path to net zero, the demand for data within the built environment continues to grow. The business intelligence gleaned from energy benchmarking, despite the inherent complexities associated with diverse building types, is indispensable for attaining net zero goals.

However, as more data is collected—especially with the proliferation of smart meters—the intricacies of managing this information can become overwhelming for many energy managers. Fortunately, emerging technologies such as AI-powered analytics and digital twins are revolutionising energy reporting and management, offering new avenues for optimisation and methods to evaluate future scenarios for optimal energy and emissions savings.

It is imperative for organisations to leverage their energy performance data effectively and to build a robust strategy towards achieving net zero. With the right tools and insights, the journey towards sustainability can transform from a daunting challenge into a significant opportunity for innovation and growth. As we continue to embrace these advancements, we can pave the way for a greener, more sustainable future.

Join us at TEAM Energy as we embark on this crucial journey, making the most of our energy performance data and fostering a strategy that not only meets but exceeds net zero aspirations.

This revised article maintains a compelling narrative while providing readers with a comprehensive overview of the complexities surrounding net zero goals and the integral role of data and technology in this endeavour.