Energy Audits that Pay for Themselves: Find 10–15% Opex Savings Hidden in Operations

In Asia's rapidly evolving property markets, energy management is more important than ever. Energy costs can constitute a significant portion of operating expenses (opex), making them a target area for potential savings. Conducting a thorough energy audit can reveal surprising insights that lead to 10-15% savings in opex by correcting operational inefficiencies. This blog post will provide an in-depth look into how businesses can leverage energy audits that pay for themselves, ultimately enhancing compliance, tenant comfort, and asset value.

Why Energy Audits Matter Now

As markets in Asia grow more competitive, businesses are increasingly pressured to manage costs wisely. Energy expenses represent a controllable cost that can be optimized without sacrificing operational efficiency. Notably, many organizations overlook simple functional errors like rogue schedules or simultaneous heating and cooling. By focusing on these areas in an energy audit, companies can discover surprising savings, leading to more efficient use of resources.

An example of a building utilizing sustainable energy solutions.

Moreover, addressing energy inefficiencies doesn’t just save money; it also ensures compliance with regulations and improves tenant comfort. Companies that invest in high-yield audits often experience both direct savings and enhanced asset value, thereby driving overall profitability.

What a High-Yield Audit Actually Covers

Conducting an energy audit is not just about collecting data; it requires a comprehensive assessment of current operations. Here are the main components of a high-yield audit:

1. Load & Controls Baseline: An audit begins with gathering necessary data, including Building Management System (BMS) trend logs over the past 30-90 days, utility bill history for 12-24 months, and an asset register. This foundational analysis provides visibility into current energy consumption patterns.

   
   

2. Comfort Audit: This includes both spot readings of current temperature levels and occupant interviews to gauge comfort levels. Achieving substantial savings requires an understanding of what constitutes ‘false savings,’ such as addressing complaints about hot or cold spots.

   
   

3. Systematic/Operator Errors: Many of the quickest operational wins arise from identifying and correcting common errors. This includes fixing rogue schedules, managing simultaneous heating and cooling, and ensuring economizers are activated.

   
   

The typical corrections in this area can yield a remarkable 10-15% reduction in opex, making these audits a worthy investment.

Meters and devices measuring energy consumption for efficient management.

Evidence-First Measurement and Verification

Implementing an energy audit requires a robust framework for measuring and verifying results. By utilizing lightweight methodologies, businesses can establish clear comparisons before and after any changes are made.

1. Before/After Charts: Use visual data to highlight improvements in energy consumption after audit corrections have been implemented.

   
   

2. Runtime Deltas: Track changes in operational runtimes to give a clearer picture of how energy efficiencies have improved over time.

   
   

3. Degree-Day Normalization: Adjust energy consumption data based on outside temperature variations, providing a clearer understanding of savings and operational-efficiency improvements.

   
   

Establishing an evidence-first approach helps in gaining buy-in from stakeholders and anchors these savings in hard data.

Governance to Sustain Improvements

One of the primary pitfalls of energy audits is maintaining momentum once initial changes are made. Effective governance is crucial to ensuring that improvements are sustained over time.

1. Weekly Operations Huddles: Conduct short, focused meetings lasting no longer than 30 minutes to track ongoing energy performance and address any emerging issues.

   
   

2. Neutral Variance Narratives: It is essential to ensure that discussions around variances in performance do not devolve into blame. Instead, present findings and data in a neutral context to foster a collaborative atmosphere.

   
   

3. Escalation Matrices: Clearly define roles and responsibilities through an escalation matrix, assigning decision owners for timely resolutions of identified issues.

   
   

This approach fosters a culture of continuous improvement and helps to embed energy savings within an organization's operations.

A building showcasing energy-efficient architectural design.

The 4-Week Audit Sprint

Implementing a systematic, repeatable process for energy audits can enhance efficiency and outcomes. Here is a breakdown of a four-week audit sprint:

Week 1 – Discovery & Data

Start by pulling necessary data—utility bills, logs, and conducting a walkthrough of the facility. Map stakeholder roles and identify potential risks that may require permits.

Week 2 – Findings

Analyze the collected data and review control logic. Prioritize quick fixes that can be implemented immediately versus those that may require more significant capital expenditure.

Week 3 – Pilot Corrections

During this week, implement no-cost or low-cost changes identified in the previous week. Document training and data collection to capture before and after evidence.

Week 4 – Roadmap & Sign-Off

Compile a savings package that outlines observed results, potential retrofit options, and readiness notes for future changes. Share findings with stakeholders to gain sign-off for ongoing initiatives.

Our internal benchmarks provide insight into audit outcomes, indicating 10-15% savings from operational errors and a potential 30-50% return on investment (ROI) from targeted measures.

KPIs That Matter

To gauge the effectiveness of energy audits and track progress over time, focus on the following Key Performance Indicators (KPIs):

• kWh/m² vs. Baseline: Normalized energy consumption metrics to assess improvement.

• % of Schedules Corrected: Monitor how many operational schedules have been adjusted for efficiency.

• Trend of Complaint Tickets: Track issues relating to occupant comfort to assess the impact of interventions.

• First-Pass Acceptance of Evidence: Measure how readily stakeholders accept findings from the audit as credible evidence.

  
  

Monitoring these KPIs not only provides transparency but also drives a focus on continuous improvement.

Common Pitfalls and Their Fixes

Even the best-laid plans can encounter obstacles. Here are some common pitfalls to avoid during energy audits, along with practical solutions:

• Audit as Paperwork: It is easy for an audit to become a tedious documentation process. To mitigate this, create a one-page “savings evidence” report for each finding, complete with charts and photos. This allows for clear, digestible information for stakeholders.

  
  

• Comfort Trade-Offs: Some changes may inadvertently compromise occupant comfort. Ensure you measure Predicted Mean Vote (PMV) and degree of departure (PPD) before and after implementing changes to balance savings with occupant experience.

  
  

• Permit Surprises: Avoid last-minute surprises related to local regulations. Conduct sequencing checks early in the process and align with local authorities to avoid delays.

  
  

Unlock Hidden Savings in Your Operations

By conducting energy audits that genuinely pay for themselves, organizations can realize considerable savings while enhancing operational efficiencies. Implementing a structured audit process helps to uncover those hidden costs while ensuring compliance and improving tenant satisfaction.

If your portfolio is ready for an energy audit, consider tapping into the resources available through Asia Consulting for expert advice.

To explore more about our project and construction management services or to initiate an energy audit, feel free to contact us or book online. Start uncovering your potential energy savings today!