Smart Buildings: A Deeper Dive into Market Segments Christopher Perry December 2017 Report A1703 © American Council for an Energy-Efficient Economy 529 14th Street NW, Suite 600, Washington, DC 20045 Phone: (202) 507-4000 • Twitter: @ACEEEDC Facebook.com/myACEEE • aceee.org SMART BUILDINGS © ACEEE Contents About the Author ............................................................................................................................... iv Acknowledgments .............................................................................................................................. iv Executive Summary ............................................................................................................................ v Introduction .......................................................................................................................................... 1 Methodology and Scope ..................................................................................................................... 2 Commercial Buildings Sector............................................................................................................. 3 Class B Offices ...................................................................................................................................... 7 Smart Technology Opportunities .......................................................................................... 9 HVAC ............................................................................................................................. 9 Lighting ........................................................................................................................ 11 Energy Management and Information Systems ..................................................... 13 Telecommuting ........................................................................................................... 15 Other ............................................................................................................................. 15 Smart Technology Barriers ................................................................................................... 16 Nonenergy Benefits ............................................................................................................... 18 Discussion ............................................................................................................................... 19 Retail Stores ........................................................................................................................................ 20 Smart Technology Opportunities ........................................................................................ 21 HVAC ........................................................................................................................... 21 Lighting ........................................................................................................................ 23 Energy Management and Information Systems ..................................................... 24 Other ............................................................................................................................. 25 Smart Technology Barriers ................................................................................................... 26 Nonenergy Benefits ............................................................................................................... 28 i SMART BUILDINGS © ACEEE Discussion ............................................................................................................................... 28 Hotels .................................................................................................................................................. 29 Smart Technology Opportunities ........................................................................................ 31 HVAC ........................................................................................................................... 31 Lighting ........................................................................................................................ 34 Combined HVAC and Lighting ................................................................................ 34 Energy Management and Information Systems ..................................................... 35 Other ............................................................................................................................. 36 Smart Technology Barriers ................................................................................................... 37 Nonenergy Benefits ............................................................................................................... 38 Discussion ............................................................................................................................... 39 Nonteaching Hospitals ..................................................................................................................... 39 Smart Technology Opportunities ........................................................................................ 40 HVAC ........................................................................................................................... 40 Lighting ........................................................................................................................ 42 Energy Management and Information Systems ..................................................... 44 Other ............................................................................................................................. 44 Smart Technology Barriers ................................................................................................... 45 Nonenergy Benefits ............................................................................................................... 46 Discussion ............................................................................................................................... 47 Conclusions ........................................................................................................................................ 48 Recommendations ............................................................................................................................. 50 Energy Efficiency Programs ................................................................................................. 50 Leveraging Data ..................................................................................................................... 52 Government and Industry Collaboration ........................................................................... 54 ii SMART BUILDINGS © ACEEE Last Word ........................................................................................................................................... 54 References ........................................................................................................................................... 56 Appendix A. High, Medium, and Low Cost and Savings Assumptions .................................. 67 Appendix B. EMIS Cost Methodology ........................................................................................... 68 Appendix C. Sector Energy Savings Assumptions ....................................................................... 69 Appendix D. Sample Hotel Room Notices .................................................................................... 71 iii SMART BUILDINGS © ACEEE About the Author Christopher Perry conducts research to support energy efficiency codes and standards for commercial and residential buildings and equipment. He also leads ACEEE’s work on smart commercial building trends and technologies. Chris earned a bachelor of science in industrial engineering from Pennsylvania State University and is working toward a master of science in engineering management from the George Washington University. Acknowledgments This report was made possible through the generous support of CenterPoint Energy, Eversource Energy, National Grid, and the US Department of Energy (DOE). The author would like to acknowledge the external reviewers, internal reviewers, colleagues, and sponsors who provided input on this report, including Chris Corcoran of the New York State Energy Research and Development Authority (NYSERDA); Teddy Kisch of Energy Solutions; Marta Schantz of Waypoint Energy; Richie Stever of the University of Maryland Medical Center; Wayne Stoppelmoor and Barry Coflan of Schneider Electric; Clay Nesler of Johnson Controls; Robert King of Target Corp., Michael Dean of Hilton Worldwide; Eric Feeny of BuildPulse; John Petze of SkyFoundry; Nick Mark, Ryan Setterholm, and Carter Dedolph of CenterPoint Energy; Erik Mellen and Amit Kulkarni of Eversource Energy; Amy Jiron, David Nemtzow, Jason Hartke, and Marina Sofos of DOE; Adam Hinge of Sustainable Energy Partnerships; and Jen King, Jennifer Amann, Hannah Bastian, Ethan Rogers, Seth Nowak, and Steve Nadel of ACEEE. Note that external review and support do not imply endorsement. The author would also like to thank Fred Grossberg for developmental editing and managing the editorial process; Elise Marton, Sean O’Brien, and Roxanna Usher for copy editing; Eric Schwass for graphics support; and Wendy Koch and Maxine Chikumbo for their help in launching this report. iv SMART BUILDINGS © ACEEE Executive Summary Smart