Energy Efficiency of Buildings - The Pressure Is On!

NORTHAMPTON, UK / ACCESSWIRE / December 27, 2022 / Ericsson

The value of properties is largely impacted by the energy efficiency of the buildings. With the help of IoT, energy optimization is becoming one of the most efficient ways to reduce energy use, and as a result, increase property value and cut CO2 emissions.

The world around us is getting smarter and smarter. We see vehicles driving autonomously, drones fostering apple trees, body sensors surveilling our health status and many other clever IoT applications. However, one of the industry segments with a rather slow adaptation of smart solutions is the buildings sector, and this despite the fact that particularly the energy efficiency of buildings is a hot topic - for all good reasons:

• Collectively, buildings in the EU are responsible for 40% of our energy consumption and 36% of greenhouse gas emissions [1], which is not sustainable at all
• 75% of Europe's buildings are not energy efficient today and it is forecasted that 95% of those buildings will still be in use 2050[1], which means particularly in times of energy crises, property owners are leaving a lot of money on the table
• To reach the overall EU objective of a 55% reduction in emissions by 2030, the building sector would need to reduce its own emissions by 60% [2], this couldn't be more demanding

Europe is undergoing an energy crisis and many utility companies are falling back to fossil-based energy production in order to meet the demand. The call to action couldn't be more vigorous, but capital, time and resources are limited. The million-dollar question is where to invest.

Where to invest - steel and concrete or IoT and AI?

The short answer is: Both!

The obvious way to address the above challenges is to improve building insulation, replace blowing windows, replace fossil-based heating systems with heat pumps and solar panels. Clearly, this is something that needs to be done, but let's face it - you don't do this overnight. The current energy renovation rate of building stocks in Europe is at 1%, and most of the global building stock that exists today will still exist in 2050. If the building sector shall reduce its carbon emissions by 60% until 2030, the energy renovation rate of Europe's building stock needs to double - quite a challenge given the souring costs for building materials and the scarcity of resources in this industry.