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What is Energy Benchmarking? And How Does it Help?
Benchmarking is the process of collecting and analyzing data to assess current performance in comparison to others. A benchmark represents the best possible performance, while benchmarking refers to the continuous evaluation of one’s efforts against these standards. By observing and comparing, organizations can gain insights into better practices, uncover inefficiencies, and identify opportunities for improvement. This practice helps businesses understand their position relative to competitors, industry standards, or even their own past performance, enabling them to make informed decisions that enhance overall efficiency and effectiveness.
Energy benchmarking follows a similar approach. It involves gathering data on energy and water usage and comparing it with internal records, other buildings, or established industry benchmarks. This comparison provides valuable insights into how well a building is performing in terms of sustainability and operational efficiency.
Like any form of benchmarking, energy benchmarking relies on two main data sources: internal and external. Internal data includes historical energy and water consumption metrics collected through utility meters or submeters. While gathering this data may be straightforward, effectively organizing and interpreting it requires a robust energy management information system (EMIS). External data, on the other hand, comes from similar buildings or predefined energy efficiency standards, allowing for meaningful comparisons.
**The Benefits of Energy Benchmarking**
More cities are now mandating energy benchmarking for buildings to meet environmental and efficiency goals. However, you don’t have to wait for regulatory pressure to take action. Energy benchmarking is not only an environmentally responsible choice but also offers numerous advantages:
1. **Improved Building Performance**
Energy benchmarking provides a structured framework for identifying areas of improvement. It highlights gaps in energy use and sets clear targets for efficiency, helping property owners and managers optimize operations.
2. **Identify Problematic Areas**
Comparing your building's energy use with similar structures or its own historical data can reveal inefficient equipment, high-energy-consuming assets, or abnormal usage patterns. This allows you to prioritize improvements and develop targeted action plans.
3. **Gain Knowledge**
Combining internal and external data gives a clearer picture of where your building stands in relation to industry standards. It helps identify best practices and informs decisions about necessary upgrades or retrofits.
4. **Justify Investment**
With solid data on past energy-saving initiatives and new technologies, you can demonstrate return on investment to stakeholders. This makes it easier to secure funding for smart HVAC systems, submetering, lighting upgrades, and more—ultimately reducing costs and increasing profitability.
By understanding how your buildings perform compared to the best in your portfolio or industry averages, you’re taking the first step toward becoming a top performer. Start today and unlock the full potential of your real estate assets.
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