Implementing energy saving measures

• Published in: Journal of corporate real estate 2015-05, Vol.17 (2), p.134-156
• Main Authors: Glumac, Brano, Oosterbaan, Marieke A, Schaefer, Wim F, Sulla, Kairi
• Format: Article
• Language: English
• Subjects: Carbon footprint; Case studies; Commercial real estate; Corporate image; Corporate real estate; Cost control; Decision making; Decision support systems; Energy consumption; Energy efficiency; Feedback; Monte Carlo simulation; Net present value; Payback periods; Population; Preventive maintenance; Property management; Property management & built environment; Public buildings; Real estate & property; Repair & maintenance; Valuation methods
• ISSN: 1463-001X; 1479-1048
• DOI: 10.1108/JCRE-11-2014-0026

Purpose – This paper aims to propose a decision support tool that would aid decision-makers to implement energy-saving measures efficiently in a corporate real estate. Design/methodology/approach – The tool consists of a system dynamic model that allows describing and quantifying the complex interaction between potential maintenance scenarios, external energy factors and case-specific conditions. In addition, to include the uncertainty of some of the input variables related to the external energy factors, Monte Carlo simulation has been applied. Findings – A case study of a city hall in The Netherlands showed the usability of the proposed tool. Over the selected period of 20 years, applying the chosen set of interventions, the simulation showed possible gains in the net present value and significant decrease of energy consumption and carbon emission. Municipal officials and consultants verified the tool for energy efficiency. Research limitations/implications – Although the tool has proved its functionality in one case study, to test its robustness, additional case studies would be preferable. Practical implications – The assessment tool can help organizations in assessing energy-efficient maintenance scenarios that include multiple technical energy efficiency interventions as a part of other maintenance activities. Originality/value – There are numerous ways to increase building’s energy efficiency, but a lack of knowledge is often hindering the enhancement of maximal benefits. A tool that would assess both financial and environmental benefits of potential technical intervention would provide useful insights into corporate’s real estate current and possible future energy performance. This would aid corporations in making better decisions regarding finances, and on the long run, it will bring an improved corporate image.