The world is moving toward digital processes and energy-efficient behaviors, but the challenges of energy management in CRE spaces still exist. These challenges can lead to some CRE providers to forgo investment into new technology to enable effective energy management, and others may not prioritize maintenance needs, dramatically increasing the total cost of ownership of their buildings. Facility Managers need to understand the challenges of energy management in CRE spaces and how to overcome them.
Why Do Facility Managers Still Face Challenges of Energy Management in CRE?
While the majority of CRE providers have embraced energy management and new technology, as many as 40 percent of companies, known as “trailers” have not yet budgeted for technology and energy management, reports the Building Owners and Managers Association International. Larger companies with company-wide direction have been up to 20-percent more successful at implementing energy management in CRE spaces. The difference lies in the challenges of energy management and how companies can overcome them.
What Are the Top Challenges of CRE Energy Management?
According to McKinsey&Company, several barriers to effective energy management in CRE go back to the concerns over new technology, namely AI.
- Data integrity and security. The biggest challenges of energy management in CRE revolves around data integrity and security. The risk of a cyber-attack is omnipresent, and a single attack could put the information of a CRE provider, its tenants, and tenants’ customers at risk. Therefore, CRE providers may forgo energy management in favor of eliminating all potential cyber vulnerabilities.
- Rising energy costs. As explained by Cameron Steel via LinkedIn, energy costs are expected to continue growing, and the budgets for facility management and payment of utilities are shrinking. It is a difficult situation. CRE providers must decide between investing in new technology or paying the bills, but new technology may allow for both outcomes.
- Increasing government requirements for buildings. Another factor affecting investment decisions is uncertainty regarding government regulations.
- User behaviors. Regardless of what type of energy improvements are made for energy management in CRE spaces, the actions of building occupants will affect energy consumption costs.
- Vendor selection. There are multiple energy management vendors for the CRE space, and selecting the right vendor can mean the difference between success or lost investment. In addition, vendor selection may play a significant role in the time to ROI.
- Lack of corporate-wide direction. When a corporate-wide plan for energy management does not exist, Facility Managers are forced to make decisions based on property-specific needs. This can dramatically complicate the process of integrating systems and ensuring a positive ROI.
Tips for Overcoming These Challenges
The process for overcoming the challenges lies in taking specific actions, to improve energy management without increasing the risk associated with each challenge.
- Create an energy management program that uses advanced encryption protocols and does not give hackers an opportunity to attack.
- Implementing an energy management system combats increased energy costs by giving Facility Managers a way to lower energy use.
- Modern systems are designed with advanced reporting capabilities, and investing in a new system will help CRE providers stay in compliance with government requirements for buildings.
- Connected systems and automation can reduce the impact of user behaviors on energy consumption, as well as connect with tenants to provide direction for reducing energy use.
- Selecting the right energy management system vendor is an internal process, so it is essential to get all the departments involved and work together to vet and choose the proper vendor.
- Establish a companywide goal for implementing energy management in CRE spaces, and this goal should clearly define a standard process for selecting vendors and use the same vendors for all properties, if possible.
Know Where You Stand by Scheduling Your Energy Audit Now
The challenges of energy management in CRE can be overwhelming but armed with the right tips and information, CRE providers can tap into the value of energy management with less stress and better results. Get started now by visiting ENTOUCH online or calling 1-800-820-3511.