The Growing Demand for Electrification Globally

Demand for electricity is accelerating at a staggering rate, with electricity consumption expected to almost triple in some scenarios between now to 2050.

According to the World Economic Forum, the rise in demand is driven by economic activity, increasing use of air conditioning due to frequent and intense heatwaves, and a boost in the use of technologies such as electric vehicles and heat pumps. The surge in data centers being built is further contributing to the increase in demand as they are largely powered by electricity and have constant demand, straining local grids.

Electrification from clean energy sources is also necessary to meet global decarbonization targets. To meet the International Energy Agency’s (IEA) Net Zero Emissions by 2050 goals, electricity’s share in final energy consumption needs to be almost 30% by 2030. Considering the share of electricity in final energy consumption is estimated to have reached 20% in 2023 from 18% in 2015, the rate of electrification needs to accelerate much more quickly to meet this goal.

As the push toward electrification gets stronger, utility companies are facing unique challenges in meeting the increasing demand for power. In order to stay ahead, utilities must tackle the dual objectives of generating large amounts of new, clean energy while optimizing their existing systems for maximum efficiency.

Meeting Electrification Demands Through Energy Efficiency and Clean Energy Generation

Generating more power from fossil fuels is no longer a viable solution, both for the planet and for utilities. Clean, renewable energy sources such as solar, wind, and hydro, are a key part of the solution to meeting rising electricity demand while remaining on target to achieve net zero goals. However, to ensure that clean energy sources are being implemented effectively, existing energy waste needs to be reduced. Buildings contribute to a significant portion of existing energy waste, with the operations of buildings accounting for 30% of global final energy consumption. The building envelope, what separates the interior and exterior environments, is particularly important in reducing this energy waste, with the IEA stating that high performing building envelopes are the most effective way to reduce the thermal needs of a building. Therefore, understanding the energy performance of a building’s envelope and knowing what retrofits to complete to increase efficiency is necessary in ensuring a seamless transition to clean energy sources.

However, a key challenge for utilities today is identifying inefficiencies in how energy is consumed. Energy audits that leverage innovative prop tech can help solve this challenge for utilities, making the identification of energy inefficiencies across buildings that they power a seamless and scalable process. For example, drones can be used to take thousands of thermal images across entire cities, providing utilities with ample data needed to understand key areas and sources of energy loss in an efficient manner. Additionally, AI models can be trained using data such as thermal images to effectively identify common energy loss issues within buildings, such as thermal bridging, poorly performing windows, and lack of insulation. With this data, utilities and utility customers can make more informed decisions on the retrofits they implement, optimizing energy efficiency and return on investment.

Demand Management: Preventing Grid Overload

Increases in extreme weather events—such as heatwaves, cold snaps, and storms—are placing intense strains on power grids. This requires utilities to meet growing electricity demand in a way that ensures reliability and resilience. To do this, utilities are beginning to leverage advanced technologies such as AI algorithms and internet of things (IoT) devices to manage energy demand and mitigate against grid overload. For example, cloud-based Demand Response Management Systems (DRMS) enable utilities to analyze grid loads and adjust demand in real time, reducing grid strain, preventing outages, and lowering costs. Additionally, with 5G connectivity, utilities can process large volumes of data from smart grids and IoT devices, enabling more reliable communication between grid components, improved energy distribution, and quicker responses to anomalies. AI is also transforming grid management by enabling utilities to predict, optimize, and enhance energy distribution. Through machine learning and predictive analytics, utilities can forecast demand for energy, allocate resources proactively, and improve resilience by identifying and addressing grid vulnerabilities.

Energy audits can help utilities develop better demand management strategies by identifying peak demand periods and locations. This allows them to invest in the necessary infrastructure to avoid grid overload and better manage fluctuations in supply and demand. When it comes to buildings, utilities can adopt technology, such as drones and AI systems, to efficiently collect and analyze large volumes of data that help identify peak demand periods and locations. Using the data available through energy audits (e.g. quantified energy loss for different building elements, identification of energy loss issues) utilities can gain necessary insights on where to prioritize investments that will improve energy efficiency of the buildings they power. This ensures better distribution of energy across the grid, avoids spikes on the grid caused by building occupants overworking their heating and cooling systems, and prevents outages.

Leveraging Energy Audits to Connect with Customers

The benefits of energy audits for utilities go beyond improved energy management. The precise insights energy audits provide increases the value utilities can deliver to their customers. The detailed data and analysis provided by energy audits are often summarized in interactive portals and easy to read reports. This gives utility customers the ability to view data on the energy usage of their building as well as customized recommendations on how to optimize energy savings. Additionally, utilities can leverage the analysis energy audits provide to gain insight into energy consumption trends across the buildings they power, allowing them to develop customized programs that incentivize energy conservation.

Building an Energy Efficient Future for Utilities

As utilities grapple with growing demands for electricity, the challenges that come with climate change, and the need for cleaner power generation, energy audits and prop tech at scale have become an indispensable tool in maximizing energy use, identifying inefficiencies, and paving the way for sustainable solutions.

Contact QEA Tech for a free quote on our AI-powered building envelope energy audit to accelerate the energy savings process across your building portfolio.

2024 is on pace to be the hottest year on record globally, beating out records set in 2023. Toronto is no stranger to the ever-present effects of climate change, with increases in the frequency and intensity of heat waves across the city. Buildings are the largest contributor to greenhouse gas emissions in Toronto, accounting for a significant 56% of emissions. As the city pushes toward its ambitious goal of achieving net zero emissions by 2040—transforming how buildings are designed, constructed, and retrofitted is essential.

Toronto’s Net-Zero Building Strategies

The City of Toronto has introduced policies to encourage the decarbonization of its building stock through its Existing Buildings: Net Zero Strategy and the Toronto Green Standard. The Existing Buildings: Net Zero Strategy focuses on making retrofits more accessible to building owners through expansion of retrofit financing and streamlining of the retrofit approval process. Aggressive and pragmatic retrofit measures are needed considering an estimated 476,000 homes and buildings in Toronto must be retrofitted to meet net zero by 2040. This requires a staggering pace of 27,400 residential retrofits and thousands of commercial, industrial, and institutional upgrades annually through 2040. The Toronto Green Standard targets new builds, setting out sustainable design and performance requirements for new developments.

Challenges on the Road to Net Zero

Many stakeholders in the buildings industry have concerns that increased regulations related to net zero goals will delay construction, translating to fewer buildings being built, in turn exacerbating issues such as housing affordability. Meanwhile, many building owners are still hesitant to retrofit their buildings as it is viewed as too expensive with uncertain return on investment.

Leveraging Innovative Technology as a Solution

The buildings industry is booming with cutting-edge technologies that support the adoption of green building practices. For example, QEA Tech uses sophisticated AI models to quantify energy loss for every square inch of the building envelope and pinpoint specific causes of energy loss within the envelope. This level of detail enables our technology to recommend retrofit solutions that are customized to the energy loss issues of a specific building, ensuring that building owners can maximize both energy savings and return on investment. This makes retrofit planning and implementation a much more affordable process for building owners, allowing them to prioritize retrofits based on areas of energy loss. Furthermore, QEA Tech creates a measurable 3D digital twin of the building that enables detailed visual inspections of the building envelope. In addition to evaluating issues and risks on existing buildings, the measurable digital twin enables builders to monitor the progress of their construction projects in real time, increasing efficiency and mitigating against project delays.

Financial Benefits of Green Building Practices

Sustainable building practices can yield long-term financial and environmental returns. For example, a 29-story condominium in Etobicoke was built with energy efficiency prioritized. The building benefits from a 41% reduction in energy use compared to its conventionally built sister building and saves a notable $125,000 a year in energy costs. Additionally, QEA Tech recently analyzed a Toronto-based Hospital which had undergone building envelope retrofits. Annual energy costs for retrofitted windows were 29% lower compared to old windows and 82% lower for retrofitted walls compared to old walls.

Building a Greener Future

Toronto’s path to net-zero hinges on a collective commitment to green construction and retrofitting existing buildings. While challenges persist, adoption of innovative technology can bridge gaps, ensuring progress without compromising affordability and efficiency.

Visit QEA Tech’s booth (#653) at The Buildings Show, occurring December 4-6 at the Metro Toronto Convention Centre, to learn more about how our AI-driven building envelope energy audits can make planning and developing green buildings a seamless process.

The building envelope refers to the outer shell or skin of a building, separating the interior and exterior environments. It serves as a barrier against heat, cold, moisture, noise, and air infiltration. The components of the building envelope, such as insulation materials, windows, and doors, determine the energy efficiency and overall performance of the structure.

Several studies identified saving potentials from the building envelope in European countries in the range between 75% and 80% (Hummel et al, 2021). Of the annual air conditioning heating energy consumption of public buildings, there was about 50% consumed by the heat transfer of the building envelope (Feng et al, 2016). Studies have also shown thermal insulation can reduce buildings’ energy consumption up to forty percent (Abdelhafiz et al, 2022). Below are some critical aspects of the building envelope.

Thermal Insulation: Preserving Comfort, Reducing Energy Demand

Insulation materials, like fiberglass, cellulose, or foam, act as barriers to heat transfer, preventing unwanted heat gain in summers and heat loss during winters. By minimizing the need for heating and cooling, effective insulation significantly reduces energy consumption, leading to substantial cost savings for building owners and occupants.

Air Sealing: Guarding Against Energy Loss

Air leakage through cracks, gaps, and poorly sealed joints can lead to significant energy loss. Airtightness is a crucial aspect of the building envelope, as it prevents uncontrolled air movement, enhancing the effectiveness of insulation and reducing the load on HVAC systems. By minimizing air infiltration, buildings can maintain more stable indoor temperatures, reduce the workload on mechanical systems, and save energy.

Windows and Glazing: Harnessing Natural Light and Passive Heating

Windows, an integral part of the building envelope, provide natural light, ventilation, and a connection to the outside world. However, they can also be a significant source of heat gain or loss. Energy-efficient windows with low-emissivity coatings, multiple panes, and insulating gas can greatly reduce heat transfer, enhancing both comfort and energy savings.

Solar Reflectance and Thermal Mass: Controlling Heat Gain

The building envelope’s design can incorporate materials with high solar reflectance to minimize the absorption of solar radiation, reducing the cooling load on the building. Additionally, thermal mass materials, like concrete or stone, absorb and store heat during the day and release it slowly at night, aiding in maintaining stable indoor temperatures and reducing the reliance on mechanical cooling systems.

Moisture Control: Mitigating Energy Loss and Building Damage

Moisture infiltration can degrade insulation, promote mold growth, and compromise the structural integrity of the envelope. Effective moisture management through vapor barriers, weather-resistant coatings, and proper drainage systems ensures that the building envelope remains dry, reducing the risk of energy loss and potential long-term damage.

Overall, the building envelope is a critical line of defense against energy loss and environmental elements, making it an essential aspect of any sustainable building design. By focusing on the design, materials, and construction techniques of the building envelope, we can unlock significant energy savings, reduce carbon emissions, and enhance occupant comfort. Investing in energy-efficient insulation, high-performance windows, air sealing, solar reflectance, and moisture control measures can lead to substantial long-term benefits for both the environment and building.