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What is Energy Benchmarking? And How Does it Help?
Benchmarking is the process of gathering data to evaluate current performance against a standard or best practice. A benchmark represents the highest level of performance achieved, while benchmarking is the continuous effort to measure and improve against that standard. By analyzing this data, organizations can gain insights into new strategies, better practices, and areas for improvement. It enables companies to compare their operations with those of competitors, industry peers, or established benchmarks, helping them identify where changes are needed to enhance efficiency and overall performance.
Energy benchmarking follows a similar approach. It involves collecting data on energy and water usage and comparing it against internal records, other buildings, or recognized standards. This comparison helps organizations understand how well their facilities are performing in terms of resource use and sustainability.
Like any form of benchmarking, energy benchmarking relies on two main types of data: internal and external. Internal data includes historical energy and water consumption recorded through utility meters or submeters. While gathering this data may be straightforward, interpreting and using it effectively requires an efficient energy management information system (EMIS). External data comes from similar buildings or industry benchmarks, offering a reference point for comparison.
**The Benefits of Energy Benchmarking**
More cities are implementing mandatory energy benchmarking regulations to meet sustainability goals. However, you don’t have to wait for legal requirements—starting early can bring significant advantages. Energy benchmarking is not only environmentally responsible but also offers tangible business benefits:
1. **Improved Building Performance**
Benchmarking provides a clear framework for improving operational efficiency. It highlights inefficiencies and sets measurable targets, helping organizations move toward more sustainable and cost-effective building operations.
2. **Identify Problem Areas**
Comparing your building’s energy use with similar structures or its own past performance can reveal inefficient systems, outdated equipment, or high-energy-consuming occupants. This allows for targeted improvements and better resource allocation.
3. **Gain Valuable Insights**
Combining internal and external data helps establish performance references and uncover best practices. For example, identifying that a similar building has benefited from certain retrofits can guide your own upgrade decisions.
4. **Justify Investments**
Using historical data on past energy-saving measures or new technologies can help demonstrate return on investment (ROI) to stakeholders. This supports decision-making around upgrades like smart HVAC systems, submetering, or energy-efficient lighting.
By understanding how your buildings perform relative to top performers in your portfolio or industry averages, you take a crucial step toward becoming a leader in energy efficiency and sustainability. Start today and turn insights into action.