The Results are In: Decision Drivers for EMS Purchases and Other Key Findings

June 6, 2013 Presenter: Alison Liaboe, Director of Product Management Facility Optimization, Ecova

The Results are IN

Survey methodology Decision drivers for EMS vendor selection How EMS are used Best practices for delivering value

Do You Currently have EMS Installed?

Yes, these systems are currently controlling both of the above

4%

6%

8%
Yes, these systems are currently controlling our HVAC setpoints and schedules Yes, these systems are currently controlling our lighting schedules

15% 67%

No, we have no systems, but we have considered for 2013 or beyond

No, and we have considered and are not interested

85% of respondents have EMS installed at some or all of their sites, and those systems are controlling any number of systems, HVAC, Lighting, etc.

EMS Coverage in 50% or More of Sites

Breakdown of Companies that have EMS Installed in > 50% of sites
2% 5% 7% 3% 3% 3% 0%

45%

10%

10% 12%

Retail Grocery unknown Real Estate Finance Theatre Public Administration Manufacturing Hospitality

Sustainability Trends

The retail industry accounts for the largest energy bills and the second largest amount of greenhouse gas emissions in the entire commercial sector of the U.S. economy.
Jean Lupinacci Chief of U.S Environmental Protection Agencys ENERGY STAR Commercial and Industrial program

THE JOURNEY TO SUSTAINABILITY BEGINS WITH UNDERSTANDING USAGE

Sustainability Trends
Benchmarking
Companies monitoring energy usage at least weekly using on-site measurement systems made 2x as many energy improvements than those that monitored monthly or less
(Source: 2010 Energy Efficiency Indicator Survey Institute for Building Efficiency)

The financial value of benchmarking for Medium Box Retail:

Savings of 2.4% has been realized for three consecutive years and is equivalent to the following1: For a Retailer with 500 stores this equates to: Cumulative energy savings of $2.5 million = sales increase of 0.89%

Ecovas Medium Box Retail clients have had 4 years of 3% savings per year

(1) Energy Star: Benchmarking and Energy Savings October 2012

Energy Profile Overview

Assessment of Peer Building Benchmarking
Significant variability in annual Energy Use Intensity (EUI) across climate zones
Nearly 70% of these sites fall between 13.8 and 31.5 kWh/Sqft Median is 22.52 $90 million in potential energy inefficiency (nearly 10% of total spend across the segment)

This variability indicates opportunities for efficiency improvements

What Brand of EMS are Installed?

30 25 20 15 10

5
0

Honeywell, Siemens, Johnson Controls and Trane are dominant in this market.

EMS Purchase Considerations

What is the most important consideration when making an EMS purchase decision?

12%

12% 44%

13% 19%

Cost/Price Ease of Use Reliability Capability Integration

n = 79 Price is the overwhelming consideration when making a purchase decision.

Wheres the Value?

Take care of Outliers in timely manner to keep costs down. Better control over energy usage. We have found on numerous occasions that equipment is malfunctioning and we can respond quickly before major breakdown. EMS gauges your energy use, plus or minus savings, gives your company guidelines to adjust energy use for cost savings. The only way to design and run more energy efficient stores.

Do you see value in proactively collecting and analyzing EMS data? YES NO
92%

Value in terms of preventive maintenance and savings.

Excellent information about energy consumption - identify outliers, proactively troubleshoot mechanical systems, etc.

Nearly all respondents indicate there is value in EMS data. n = 75

Energy Usage Trends

Annual kWh usage trends for retail has consistently decreased from 2009 2012

Cost reduction efforts across all expense lines

Energy recognized as a controllable expense

Continued discussion of sustainability overall

Significant spending by utilities on energy efficiency programs

EMS monitoring can drive reduction of energy use to >20% over a 3 year period

Are You Achieving Return on Your Investment?

80 70

60
50 40 30 20 10 0

Yes No Unsure

Were you provided an ROI analysis to assist in the selection of your EMS?

Are you achieving expected ROI?

Over 2/3 of respondents used an ROI analysis as part of the purchase decision, yet over of respondents did not achieve expected ROI or are unsure if they did or not. n = 72

80% of Respondents Have a Monitoring Solution

20% 49%

Yes, in-house personnel

Yes, by outsourced vendor No, we do not have a monitoring solution

31%

n=78

Reasons why ROI not Achieved

System overrides Standard configurations are not documented or enforced

Sensors are in less than optimal locations

Nuisance alarms Equipment has not been re-commissioned

Best Practices
Monitor and Manage Human Interaction Standardize on Proper Alarm Management Minimize Access to Systems Document Standard Configurations and Sequences of Operation Pinpoint Sensor Location for Powerful Tracking Results Implement Variance/Change Management Program Back-up Configuration and Program Files Re-Commission Energy Management Systems Apply a System Monitoring Program
All these alarms are driving me crazy!

PM vs Run-to-Failure
Reduce occupant complaints Trim operating costs Increased energy efficiency Improved EMS performance

Summary of Key Findings

85% of respondents have EMS installed 80% of retail chains that responded have EMS in >50% of sites

There is no clear market domination among EMS vendors

Price is the major factor when making an EMS purchase decision Nearly all respondents indicate that there is value in EMS data Half of respondents collect and analyze 15-minute interval data

ROI analysis used but not getting return

80% of respondents employ a monitoring solution

Upcoming Webinars
INSIDE ENERGY & SUSTAINABILITY

Rebate Management Services Educational Webinar June 13th Q2 External Market Intelligence Webinar June 20th

DIAL IN THE SAVINGS SERIES

Telecom Budgets Survival Guide June 19th

Questions, comments, suggestions? webinars@ecova.com

Q&A

Thank you!