18 January 2011

Business Case for ICT in buildings and why ICT matters

DAN WEISSER, PRTM

Management Consultants

Where Innovation Operates

Agenda
Phases of Green Real Estate Development Green ICT is Driven By Lifecycle Costs Integrated Systems are critical Developing an integrated Partner Ecosystem also critical

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Phases of Green Real Estate Development

Business case for Green ICT must be developed at the earliest stages of the project and continued throughout the process
Feasibility Study Design Delivery Operations

Market and trends assessment Business case development Financial and legal assessment Technology roadmap development Partner eco-system opportunity Stakeholder alignment

Master plan

Concept design
Detailed design Cost calculation Operating model Technology procurement

General contractor selection Materials procurement Tender evaluation Technology implementation Implementation cadence and prioritization

Commissioning Asset management Customer care Repair, maintenance, and support

Post-occupancy assessment and improvement

Sustainability KPI development

How do you justify the increased ICT cost of green buildings?

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Green ICT is Driven By Lifecycle Costs

Steps Required
Cost of Occupation for Eco City vs. Traditional City

Step 1: Benchmark existing competition vs. the cost of new green development Step 2: Calculate the lifecycle cost (i.e. Total capital costs + total operating costs over useful life) for each potential building element Step 3: Make investments in ICT elements that lower the overall lifecycle cost of the building

Utility Consumption
Eco City vs. Traditional City
53
-28%

Cost of Occupation

69

232

2.5
-26%

-34% 1.85 -71% 46 Water Heating Treated Sewage Effluent 66.2

Cost of utilities (e.g., $/kWh-e)

39

Cost of Occupation ($/m2)

Level of consumption (e.g., kWh-e/m2)

Electricity (kWh/m2/year) Water (m3/capita/year) Traditional City Cooling kWh-t/m2/year) Eco City Waste (kg/person/day)

| 2010 PRTM Proprietary

CONFIDENTIAL

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25-year operating cost of energy for elevators is three times more than the price of the metal box

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Integrated Systems are critical

Steps Required

Dynamic energy management Real time monitoring

Energy Demand is controlled locally via the Building Management Systems which control the Smart Appliances, Thermostats via the bi-directional Smart Meters Energy Management System aggregates data, balances supply and demand projections, and relays suggested reductions dynamically to consumers The future Smart Building architecture provides dynamic twoway communications between producing and consuming entities in the building

Energy Management System

Dashboard/ Control Panel

Data Aggregators / Network Cloud

Building Management System

Building Management System

Controls energy demand

Smart Meter Unit

Office Office Control Unit Smart Meter Control Unit Office

Provides opportunity for peak shaving and demand reduction at a more granular level than currently available

Home

Controls

Appliances

Thermostat

Allow controllable elements to lower consumption

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Legend: Existing technology Existing but customization required

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Developing an integrated Partner Ecosystem also critical

Green real estate development requires a joint collaboration to be successful

Cisco and Johnson Controls can provide the technical solutions PRTM can establish the program management, customer engagement, and operating frameworks Jointly develop the partnership network
PROGRAM MANAGEMENT VOICE OF CUSTOMER OPERATING FRAMEWORK

ENERGY

WATER

WASTE

BUILDINGS

PARTNER DEVELOPMENT

Potential Partners

ENERGY WATER

Distributed Generation, consumption, meters

WASTE BUILDINGS

Collection, sorting/recycling Building management systems, controls

Water, wastewater, TSE, water conservation

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PRTM Contacts

Dan Weisser
Principal

T F M M

+971 44 34 59 77 +971 44 37 04 30 +971 50 948 3502 (UAE) +1 512 997 8366 (USA)

Suite 4004, Tower A Business Central Towers P.O. Box 503016 Dubai, UAE www.prtm.com

dweisser@prtm.com

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