Driving Down Energy Costs by $25B

Create: 08/09/2015 - 13:00

How much can smart buildings save in energy costs? As much as $25 billion annually, according to a recent Accenture report. Estimates predict that smarter buildings could save as much as $25 billion in annual energy costs. That’s a huge opportunity for solution providers and their vendor partners.

Some vendors are taking a critical look at just how to meet their customers’ needs using IoT technology. For example, Bridgelux, a developer and manufacturer of LED lighting technologies, earlier this month announced a plan to spin off its Smart-Lighting LED platform business under the name of Xenio Corporation in conjunction with the sale of Bridgelux to an investment group led by the China Electronics Co. Xenio will target the development of software-enabled LED modules and will take advantage of its partnerships and investments from Bridgelux, Toshiba, DCM Ventures, VantagePoint Capital Partners, among others.

Because lighting fixtures are a staple in every building, it makes sense they are central to the development of smart buildings. Intelligent lighting can also be designed to integrate with other building systems. In addition to efficiencies, smart buildings provide aggregated data that offers valuable insights into all areas of business operations for ongoing operational and business optimization. 

Xenio is looking to develop and deliver networked and software-driven solutions that bring intelligence to lighting fixtures. Xenio’s seamless integration of LED light source technology with advanced power, radio, sensor, application and cloud software into a low-cost, easy-to-install network will be critical to its success. Those types of technologies will provide environments requiring, for example, deep dimming and color tuning while deploying the sensor network to reduce energy consumption, and drive real-time engagement with buildings’ occupants. 

There are retail applications, too. In a store, the Xenio network can draw attention to a displayed product by brightening a spotlight as shoppers walk down an aisle. Or, lighting can dim in employee cubicles when they are away or adjust in response to changes in natural lighting. Lighting can also change color to create a more comfortable, productive or profitable environment.

Companies are jus starting to realize the benefits smart buildings can reap. Data-driven optimizations can reduce energy consumption, but companies can save reduce costs even more substantially by using data from sensors and controls more holistically to optimize their infrastructure, save money and significantly reduce environmental impact.

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Jennifer Bosavage

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