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An open and integrated approach to facilities management. Quintin McCutcheon Business Development Manager October 2010. Integrated Solutions. Why are we here?. Facility owners are at a crossroads. Compliance Demands. Energy. Environment. Reporting. Compliance Demands. What was a buzz
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An open and integrated approach to facilities management Quintin McCutcheon Business Development Manager October 2010
Integrated Solutions Why are we here?
Facility owners are at a crossroads Compliance Demands Energy Environment Reporting
Compliance Demands • What was a buzz • ‘Energy’ • ‘Environmental sustainability’ • Is now reality Source: European Commission, U.S. Green Building Council, Canadian Green Building Council
Glass half-full approach “Global energy consumption is expected to grow 45 percent from 2002 to 2025” Source: World Business Council for Sustainable Development • Enormous savings potential through: • Cost efficient energy (Punitive tariffs) • Sustainability (Tax benefits) • The EU has emerged at the forefront of green building legislation • Energy Performance of Buildings Directive (EPBD), since 2003 • Mandatory for all Member States
Objectives of EPBD • Establish a methodology for calculating energy performance of a building • Apply minimum standards to new buildings and major refurbishments • Building certification to make energy consumption visible for: • Owners, tenants and users • Inspection of boilers and air-conditioning to reduce • Energy Consumption • Greenhouse gas emissions
Energy management is the key to address the dilemma The energy dilemma is here to stay The facts The need vs CO2 emissions to avoid dramatic climate changes Energy demand by 2050 Electrical energy demand by 2030 Source: IEA 2008 Source: IPCC 2007, figure (vs. 1990 level)
Facility owners are at a crossroads Compliance Demands Tenant Demands Comfort Energy Health/Safety/Security Environment Flexibility Reporting Visibility & Control
Tenant Demands • Occupational health and safety • Sick building syndrome (SBS) since 1984 • Prevalent in 30% of new and remodelled office buildings • 10-30% of occupants affected • Relationship between • Indoor air quality or thermal comfort; and • Employee motivation and productivity • Knock-on affect to the employer’s operations • Residential and commercial tenants seeking a more proactive role in controlling their facilities • Visibility, functionality and flexibility
Facility owners are at a crossroads Tightening Margins through rising costs Compliance Demands Tenant Demands Comfort Energy Health/Safety/Security Environment Flexibility Reporting Visibility & Control
Tighter Margins • Total life cycle cost • 10% attributed to construction • 60-80% incurred from ongoing maintenance, energy, etc • Energy costs are typically 30% of ongoing operating costs Source: Frost & Sullivan
The Surging Price of Fuel • U.S. Natural Gas Electric Power Price Trend (2002-08) rose by 184% Source: EIA
The Surging Price of Fuel • U.S. Average Wholesale Electricity Price (2002 vs 2006) rose by 52% Source: EIA
R1.32/kWh on punitive tariff 25.8% incr. R0.52/kWh 31.3% incr. R0.33 / kwh 24.8% incr. R0.42 / kwh 25.9% incr. R0.65 /kWh 2011 2012 South Africa 1988 to 2012 27.5% incr. R0.25 / kwh 5.9% incr. R0.20/ kwh
Medium term Demand-Supply gap • Cost of construction • Uncertainty over climate change policy, i.e. carbon emissions • Slow uptake of renewable energy • Long lead time for new generation to come on-stream • Coal-fired and nuclear Electricity prices will remain high
What are the challenges Facility owners are at a crossroads Tightening Margins through rising costs Compliance Demands Tenant Demands Comfort Energy Health/Safety/Security Environment Flexibility Reporting Visibility & Control
If it ain’t broke, don’t fix it • Facilities viewed as sunk cost • Replace ageing equipment as and when a failure occurs • Minimizing immediate costs • Keeping within short-term maintenance and repair budget • This approach results in: • Parameter overrides to fix problems • Insufficient planning for change in occupancy patterns The Facility drifts out of control
Disparate Brands • Investment made at various points in time • HVAC • Lighting • Security • Access Control • Across various parts of a site or across multiple sites The Result • Disparate support / service arrangements • Locked into specific hardware platforms and service providers • Increased personnel training and service costs
RequirementsIntegrated Monitoring and Control • Centralised monitoring and control • Open communications • Flexible architecture • Connectivity to any vendor and product of choice
Why Integrate? • Reduce operating costs • Improve margins • Increase visibility, control and standardisation • Connect to open protocols • OPC • BACnet • LONWorks • EIB • Modbus • Single or multi-site integration • Retain original investments and future-proof the system
The Ideal Solution • Continues to operate, while online changes are made • Full redundancy • Centralised and localisable • Select a partner with the necessary expertise and support • Clearly define standards
Solution vision Multiple silo systems Integrated Solution
Truly open and integrated Building Management Software that is multi-vendor compatible. System Integration
Conclusion A unified view of operations increases transparency • Helps towards • energy efficiency • environmental sustainability • tenant comfort • Challenges • facility managers to improve performance • tenants to be more responsible in energy use