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SERIES 22 / Module 10 Smart Buildings
communicate with the national grid to understand peak demands and tariff changes. Smart tariffs are able to ‘flex’ and offer different rates across the day, e.g. low rate overnight when demands are low (ideal for EV charging and clothes washing) and high rates at peak times, e.g. evenings (ideal for import avoidance and use of stored energy from batteries). These meters and contracts are not standard and careful understanding, selection and negotiation is needed to ensure that integration and costs savings can be achieved in practice.
The benefi ts of smart buildings 1. Sustainability Smart buildings contribute to sustainability goals by minimising energy waste, lowering carbon emissions, and utilising renewable energy sources. This aligns with global and national net zero targets.
2. Energy savings One of the primary drivers of smart building adoption is the potential for energy savings. Through intelligent systems that optimise lighting, heating, cooling, and ventilation, smart buildings can significantly reduce energy consumption. The potential to save energy is considerable between 20-40% on current standards.
3. Improved comfort Smart buildings can adjust the environment to suit the needs of occupants. Automated HVAC systems, smart lighting and air quality monitoring ensure that occupants remain comfortable, which can lead to increased productivity and well-being. It is notable that air source heat pumps are reported to provide comfortable heating as they operate most efficiently continually providing background heat. Home users of heat pumps report that spaces are consistently warmer, maintaining a comfortable 20°C throughout the day and 18°C at night.
Figure 3 – Example of an Octopus Energy ‘Smart’ tariff indicating the various import and export rate shifts across the day
4. Cost efficiency By reducing energy consumption, smart buildings help lower utility bills. The integration of renewable energy sources and energy storage systems can further reduce costs, making smart buildings a long-term investment for both commercial and residential properties. The cost range can vary from an import peak rate at 35p/kWh, average day rate of 25p/kWh, night rate at 15p/ kWh. Export rates varying at a peak rate of 27p/kWh, average day rate of 13p/kWh, night rate at 5p/kWh. It can be seen that it’s possible to purchase electricity overnight at 15p/kWh and to store it in batteries and sell it at 27p/kWh, making a 80% profit.
Table 3 – Risks associated with smart buildings as seen by the author Risks Associated with Smart Buildings
AI Energy consumption is high - The International Energy Agency reports that data centre electricity consumption could more than double to more than 1,000 terawatt hours in 2026 from 460 TWh in 2022, adding that this would account for 3% of the world’s electricity usage, up from 1.7%.
5. Asset value Smart buildings will have very good energy performance ratings (EPC) and as a consequence will be more valuable. A recent report in the domestic market suggested that there is a correlation between good EPC ratings and the value of a property per square metre. It was noted that properties with an EPC rating of A or B sold for at least 14% more than their counterparts.
Smart buildings are correctly set up and commissioned especially considering:
● Occupancy profiles and usage are fully understood and operating parameters are correctly set, such as controlled occupancy periods and heating and cooling set points.
● Lighting systems are checked and commissioned correctly to ensure that spaces are not over-illuminated, as this is often the case with new LED lighting installations.
● HVAC systems operate according to actual occupancy profiles as many offices now are only partially occupied on Mondays and Fridays owing to flexible working. Consumption data is audited and verified to ensure that over-consumption is not occurring as its baseline.
Consumption data is audited and verified to ensure that over- consumption is not occurring as its baseline.
The practice of regular maintenance to replace faulty sensors and continuous commissioning is needed to be carried out.
The Future of Smart Buildings The future of smart buildings looks promising, as technology continues to evolve and energy management becomes even more sophisticated. Some emerging trends in the smart building sector include: 5G connectivity: 5G networks
will enhance communication between smart devices in buildings, improving the responsiveness and efficiency of building systems. Smart cities integration: Smart
buildings will increasingly become part of smart city networks, sharing data with other buildings and infrastructure to optimise urban energy use.
AI and automation: The use of
AI to predict energy demand and automate building operations will become more widespread, further enhancing the efficiency of smart buildings.
Produced in Association with
EIBI | MAY 2025
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