A better energy label also starts with better IT

Anyone looking to make a building more energy efficient traditionally thinks of insulation, better glazing, a heat pump, solar panels and more efficient installations. That remains the foundation. But the next step in sustainability is no longer just about which installation is present. Increasingly, the question is how intelligently that installation is used.

An energy efficient installation that runs unnecessarily still consumes energy. Lighting left on in empty rooms wastes energy. A climate system heating an empty floor does the same. Sustainability is thus shifting from the installation alone to the combination of installation, data, software and control. And that is precisely where IT enters the building.

This article explains that connection, with one important nuance up front. A better IT-Label does not automatically mean a better energy label. The calculation methodologies differ. But the technology behind both worlds is growing steadily closer together.

From insulation to intelligent control

Traditional sustainability was mainly a matter of physical measures. Insulation, HR++ or triple glazing, LED lighting and more efficient installations are all essential and remain so. Yet the installation alone no longer tells the whole story.

Solar panels generate energy, but data increasingly determines how production, storage and consumption are optimally aligned. A charging area that is not smartly controlled can cause unnecessary peak load. Performance therefore lies not only in the equipment, but also in the intelligence that controls it.

This changes the task at hand. Where the question used to be which installation is present, it is now also how intelligently that installation is used. That has become a digital question.

The sustainable building is becoming a digital building

A modern building increasingly optimizes its energy performance with digital technology. Think of sensors, smart meters, IoT, building management systems, energy management, occupancy measurement, smart lighting, battery systems, smart charging points and predictive maintenance.

All of that technology produces, receives or processes data. That leads to a simple observation: the more energy-intelligent a building becomes, the more digital it automatically becomes. A building that wants to understand energy needs a digital layer to do so.

That digital layer requires a foundation. Without reliable connectivity and data processing, smart systems can measure, but cannot work together. The installations are there, but they do not talk to each other.

The IT-Label therefore measures more than internet

It is tempting to read the IT-Label as an answer to the question of how fast the internet is. That is only one component. An audit looks more broadly at the digital infrastructure and digital functionality of real estate, and in doing so can also inventory SMART Building systems.

That inventory covers a range of components:

• Building management: is there a building management system and which functions are digitally controlled?
• Climate: can heating, cooling and ventilation be controlled intelligently?
• Occupancy: is presence measured and can installations respond to it?
• Lighting: can lighting be switched or dimmed automatically?
• Solar panels and charging points: is production, performance and charging behavior digitally monitored and balanced?
• Energy monitoring and continuity: can consumption be analyzed and what happens in the event of an outage?

The IT-Label thus looks not only at the digital workplace, but also at the digital intelligence of the building itself. Those wanting to know what falls under that scope can find more explanation on smart assets and building-related IT facilities.

Energy and IT were once two separate worlds. In the SMART Building, they are growing steadily closer together.

A SMART Building is one large digital ecosystem

A traditional building consisted of separate installations: heating, lighting, electricity, access, elevators, solar panels and charging points, each with a life of its own. In a SMART Building, these systems become connected to one another.

A sensor detects presence, the building management system receives that information, the climate control adjusts, lighting turns off, energy consumption drops and the energy management system registers the saving. That entire process is not just installation technology. It is primarily data, and data requires digital infrastructure.

No SMART Energy without IT

The formula can be summarized briefly: smart energy is the sum of installation, data, connectivity and control. A heat pump can be energy efficient, but software determines when it runs optimally. Solar panels generate electricity, but an energy management system determines where that energy is best directed.

Charging points charge cars, but smart charging takes the building's consumption and the available grid capacity into account. In this way, IT is increasingly becoming an enabler of energy efficiency rather than a separate cost item.

Two labels looking from different directions

It is important to remain clear that the two labels do not measure the same thing. The energy label answers the question of how energy efficient the building is according to the applicable methodology. The IT-Label shows what the building can digitally facilitate and what digital delivery level is present.

Even so, an ever larger area of overlap is emerging: SMART Building technology. That is where energy and IT come together. On one side are the installations: heating, cooling, ventilation and generation. On the other side are sensors, building management, monitoring, software and control. In the middle stands the building that needs both worlds.

The conclusion is nuanced but clear. The energy label and the IT-Label measure different things, but the technology behind them is becoming increasingly intertwined. Those wanting to understand the precise dividing line can read our article on the difference between the IT-Label and the energy label.

Performance on paper versus performance in use

A building may have energy efficient installations, but ultimately usage partly determines how much energy is actually consumed. How long does the lighting stay on? Are empty meeting rooms being heated? Does the ventilation run at full capacity while a floor is barely occupied?

Digital monitoring and intelligent control in particular can help to better understand that practice. The next major energy saving may not lie only in yet another new installation, but also in smarter use of what is already there.

From CAPEX to SMART CAPEX

An owner looking to improve energy performance often thinks first of physical investments. But before installations are replaced, it is worth examining whether existing installations can be controlled more intelligently, which data is available and which is missing, and where automation can be added.

That is the core of what we might call SMART CAPEX: investments through which existing physical installations are used more intelligently and efficiently by means of digitalization. How this relates to operating costs is explained in our article on CAPEX and OPEX in commercial real estate.

Grid congestion makes this even more relevant

In the case of grid congestion, the solution is not simply producing more electricity. The available capacity must also be used more intelligently. Buildings can play a role here through load balancing, smart charging, batteries, energy management, demand response and peak reduction.

Nearly all of these solutions share one foundation: data, connectivity and software. As a result, digital building infrastructure is also becoming part of the broader discussion on energy infrastructure, rather than a separate IT topic.

AI could be the next step

Looking ahead, artificial intelligence in buildings could be used to predict occupancy, optimize energy use, detect anomalies and plan maintenance. Some applications already exist today, others remain further off, and it is wise to be cautious about claims that AI automatically delivers major savings.

The relevant observation is conditional. AI can only control a building more intelligently when that building is able to collect, communicate and process sufficient data. Without digital infrastructure, the intelligence remains theoretical. More on this can be found in our overview of AI and real estate.

First measure, then understand, then improve

You cannot deliberately improve what you cannot see. The order is therefore logical: measure, gain insight, control and optimize. The IT-Label can help make visible which digital and SMART Building infrastructure is present.

This does not replace energy advice or an official energy label. It provides insight into the digital layer with which a building may be able to function more intelligently. Today, the energy advisor, the installer, the IT specialist, the SMART Building specialist and the asset manager often work alongside one another. In the building of tomorrow, these worlds come together.

The IT-Label aims to be a connecting layer in this: a translation between energy, installations, data, IT, real estate and the user. This creates one shared language across disciplines, as described in one language for digital building quality.

From energy efficient to digitally efficient

We are familiar with energy efficient buildings. Alongside that, a new concept may be emerging: digitally efficient buildings. Buildings in which digital technology helps to use space, energy, installations, workplaces, mobility and maintenance more efficiently.

The user benefits as well. A smarter building can offer more comfort, a better indoor climate, insight into usage, more efficient workplaces and potentially lower operating costs. This brings us back to the core of the IT-Label: technology only has value when the user benefits from it. What tenants can expect in this regard is set out in what to look for as a tenant.

Digitalization is therefore not the opposite of sustainability. It can actually reinforce it, provided the digital foundation is in place.

Concrete next step: map out your digital layer

If you want to know whether your building is ready not only to use energy, but also to measure, understand and control it, start by taking stock of the digital infrastructure. A higher IT-Label does not automatically produce a higher energy label, but a strong digital foundation does form the basis for SMART technology through which energy use can be better managed.

A good first step is gaining insight into the current digital delivery level via the IT-Label classification from PREMIUM to SHELL, so you know what SMART functionality is possible today and where there is room for improvement. From there, you can translate that insight into concrete choices. More on the approach can be found at how the IT-Label works. This shows that the energy label and the IT-Label are not opposing forces, but rather perspectives on different parts of the same future.