The Results are In: Decision Drivers for EMS Purchases and Other Key FindingsJune 6, 2013
Presenter: Alison Liaboe, Director of Product Management Facility Optimization, Ecova
The Results are IN
Survey methodology
Decision drivers for EMS vendor selection
How EMS are used
Best practices for delivering value
67%
15%
4%6%
8%
Yes, these systems are currently control-ling both of the above
Yes, these systems are currently control-ling our HVAC setpoints and schedules
Yes, these systems are currently control-ling our lighting schedules
No, we have no systems, but we have considered for 2013 or beyond
No, and we have considered and are not interested
Do You Currently have EMS Installed?
85% of respondents have EMS installed at some or all of their sites, and those systems are controlling any number of systems, HVAC, Lighting, etc.
EMS Coverage in 50% or More of Sites
45%
13%10%
10%
8%5%
3% 3% 3% 3%
Breakdown of Companies that haveEMS Installed in > 50% of sites Retail
GroceryunknownReal EstateFinanceTheatrePublic AdministrationManufacturingHospitalityTelecom(blank)
Sustainability Trends
“The retail industry accounts for the largest energy bills and the second largest amount of greenhouse gas emissions in the entire commercial
sector of the U.S. economy.”
Jean Lupinacci Chief of U.S Environmental Protection Agency’s ENERGY STAR Commercial and Industrial program
THE JOURNEY TO SUSTAINABILITY BEGINS WITH UNDERSTANDING USAGE
Sustainability Trends
• Companies monitoring energy usage at least weekly using on-site measurement systems made 2x as many energy improvements than those that monitored monthly or less (Source: 2010 Energy Efficiency Indicator Survey – Institute for Building Efficiency)
• The financial value of benchmarking for Medium Box Retail:
• Savings of 2.4% has been realized for three consecutive years and is equivalent to the following1:
• For a Retailer with 500 stores this equates to: Cumulative energy savings of $2.5 million = sales increase of 0.89%
• Ecova’s Medium Box Retail clients have had 4 years of 3% savings per year
Benchmarking
(1) Energy Star: Benchmarking and Energy Savings – October 2012
Energy Profile Overview
• Significant variability in annual Energy Use Intensity (EUI) across climate zones• Nearly 70% of these sites fall between 13.8 and 31.5 kWh/Sqft• Median is 22.52
• This variability indicates opportunities for efficiency improvements• $90 million in potential energy inefficiency (nearly 10% of total spend across the segment)
Assessment of Peer Building Benchmarking
8K 9K 10K 11K 12K 13K 14K 15K 16K 17K 18K 19K 20K 21K 22K 23K 24K
Median Sqft
0
5
10
15
20
25
30
35
Median Annual kWh per Sqft
Median : 22.52
Median Annual kWh per Sqft by Client
What Brand of EMS are Installed?
Honeywell, Siemens, Johnson Controls and Trane are dominant in this market.
Honey
well
Siemen
s / S
ite C
ontro
ls
John
son
Contro
ls
Trane
Novar
Carrie
r
Emer
son
Cisco
Grid
Poin
t
TCS Bas
ys
Alerto
nFSG
Andov
er
Echelo
nYor
k0
5
10
15
20
25
30
44%
19%13%
12%
12%
What is the most important consideration whenmaking an EMS purchase decision?
Cost/Price
Ease of Use
Reliability
Capability
Integration
EMS Purchase Considerations
n = 79Price is the overwhelming consideration when making a purchase decision.
Where’s the Value?
Take care of Outliers in timely manner to keep costs down.
Better control over energy usage.
We have found on numerous occasions that equipment is malfunctioning and we can respond quickly before major breakdown.
EMS gauges your energy use, plus or minus savings, gives your company guidelines to adjust energy use for cost savings.
The only way to design and run more energy efficient stores.
Value in terms of preventive maintenanceand savings.
Excellent information about energy consumption - identify outliers, proactively troubleshoot mechanical systems, etc.
Nearly all respondents indicate there is value in EMS data.n = 75
92%
Do you see value in proac-tively collecting and analyz-
ing EMS data?
YESNO
Energy Usage Trends
Annual kWh usage trends for retail has consistently decreased from 2009 - 2012
Cost reduction efforts across all
expense lines
Energy recognized as a
controllable expense
Continued discussion of sustainability
overall
Significant spending by utilities on
energy efficiency programs
EMS monitoring can drive reduction of
energy use to >20% over a 3 year period
Are You Achieving Return on Your Investment?
Over 2/3 of respondents used an ROI analysis as part of the purchase decision, yet over ½ of respondents did not achieve expected ROI or are unsure if they did or not.n = 72
Were you provided an ROI analysis to assist in the selection of your EMS?
Are you achieving expected ROI?0
10
20
30
40
50
60
70
80
Yes
No
Unsure
80% of Respondents Have aMonitoring Solution
49%
31%
19%
Yes, in-house personnelYes, by outsourced vendorNo, we do not have a monitoring solution
n=78
Reasons why ROI not Achieved
System overrides
Standard configurations are not documented or enforced
Sensors are in less than optimal locations
Nuisance alarms
Equipment has not been re-commissioned
Best Practices
All these alarms are driving me crazy!
Monitor and ManageHuman Interaction
Standardize on ProperAlarm Management
Minimize Access to Systems
Document Standard Configurations and Sequences of Operation
Pinpoint Sensor Location for PowerfulTracking Results
Implement Variance/Change Management Program
Back-up Configurationand Program Files
Re-Commission Energy Management Systems
Apply a System Monitoring Program
Reduce occupant complaintsTrim operating costsIncreased energy efficiencyImproved EMS performance
PM vsRun-to-Failure
Summary of Key Findings
• 85% of respondents have EMS installed
• 80% of retail chains that responded have EMS in >50% of sites
• There is no clear market domination among EMS vendors
• Price is the major factor when making an EMS purchase decision
• Nearly all respondents indicate that there is value in EMS data
• Half of respondents collect and analyze 15-minute interval data
• ROI analysis used but not getting return
• 80% of respondents employ a monitoring solution
Upcoming Webinars
INSIDE ENERGY & SUSTAINABILITY Rebate Management Services Educational Webinar –
June 13th Q2 External Market Intelligence Webinar – June 20th
DIAL IN THE SAVINGS SERIES Telecom Budgets Survival Guide – June 19th
Questions, comments, suggestions? [email protected]
Q&A
Thank you!