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Cloud-Connected HVAC Systems Are at the Core of Smart Facilities

Cloud-Connected HVAC Systems Are at the Core of Smart Facilities

Published
18 October 2023

By Ian Dempster

You can’t have a smart facility without a connected HVAC system.

Facilities become intelligent only to the extent that their operators collect, analyze, and learn from the massive amounts of information flowing from building systems and equipment. HVAC data is fundamental, given that the system typically accounts for 44 percent of a commercial building’s energy consumption and is central to occupant comfort and, for many manufacturers, product quality. And that makes connecting the HVAC system to a cloud-based data center a crucial aspect of creating a smart facility.

Simply optimizing an HVAC system can yield substantial savings, reducing its energy usage and resulting costs by 20 to 50 percent (30 percent is typical). But without ongoing monitoring, those results will start to degrade after about a year or so. A two-way data flow between a facility’s HVAC equipment and building automation system (BAS) and an optimization provider’s network operations center enables real-time monitoring, analysis, maintenance, and fine-tuning of the HVAC system. It’s the only way to maintain the efficiencies gained through an HVAC system upgrade, and to gain ongoing insights into a facility’s performance.

Unconnected Systems Lose Their Edge

In the first year after optimization, results may remain constant without cloud connectivity. By the second year, typically, equipment begins to age and the facilities team probably has changed settings in the BAS, causing savings to fall off. By the third year without cloud connectivity, a site can lose as much as half of its original carbon and cost savings through natural system performance degradation and operational overrides. Without the external “brain” a cloud connection provides, the falloff can go unnoticed for quite a while, costing the facility thousands of dollars.

Establishing a two-way connection between an HVAC plant and an optimization provider can be a project, but it is getting easier: new chillers, pumps, variable frequency drives (VFDs), and even smart actuators are now designed to connect with control software and upload data to the cloud, enabling ongoing monitoring and system optimization. A facilities manager can collect and share BAS and environmental management system (EMS) data, which can reveal where the facility is consuming the most energy, whether the equipment is working correctly and efficiently, and if the automation sequence is controlling the HVAC system effectively.

At the same time, the optimization provider can watch for failing components, mechanical drift, changes in ambient conditions, and other fluctuations in the HVAC system. In response, they can access the installed optimization solution, use the data to troubleshoot the equipment, improve sequencing, and adapt set points to meet environmental parameters as they change. They can also remotely install software updates that can increase efficiencies or reliability.

Security and Product Quality Take Precedence

Connecting a BAS and EMS to an optimization provider’s data center raises network security concerns for any building or facility IT team. And for facilities with strict environmental requirements—hospitals, labs, pharmaceutical manufacturing plants—ensuring precise temperature and humidity controls is paramount. Both types of challenges require careful, collaborative information systems engineering.

The first step is to implement robust security separations between networks used for BAS sensors and monitoring, and those used for business transactions. This ensures that intellectual property, financial information, and other business-related data remain siloed from operational data.

A security-conscious optimization provider will then work with the facility’s IT team to establish a site-to-site virtual private network (VPN) tunnel between single points—a secure, private connection linking designated devices—that provides strong encryption with unique keys and access controls that give the optimization provider’s engineers access only to operational data for energy management and optimization services. In addition, the optimization software should be installed with intrusion detection, secure network connectivity, and limited user permissions. For next-level security, some vendors offer a security appliance that creates the secure VPN tunnel connection between the optimization software and the vendor’s cloud servers, using standard outbound secure ports only. That avoids the need to set up a link from the company’s network.

Where the building environment affects product quality or core operations, facility managers may worry about automated controls, believing that a hands-on approach is the only way to maintain the correct operational parameters. That’s a sure way to lose the benefits of optimization and building intelligence over time, though. The vendor should work with facility operators to fine-tune optimization settings with both efficiency and environmental needs in mind, and provide training on how the optimization system works.

Getting Connectivity Right Brings Rewards

The benefits of cloud connectivity make it well worth the effort to establish the appropriate security setup. First and foremost is the assurance of continual energy-use and cost reductions. For example, we’ve seen an 18-million-square-foot university campus improve the efficiency of its chiller plants by 23 percent. Every year, the facility is saving more than $1 million due to the cloud-connected optimization software. We’ve also seen a 110,000-square-foot research laboratory improve its efficiency more than 27 percent by optimizing and connecting the chiller plant. Hershey Medical Center in Pennsylvania is saving more than $300,000 a year using connected optimization software, which reduced facility energy use by 4 GWh annually and improved system efficiency by 21 percent.

Sharing operational data via the cloud also provides greater visibility into HVAC, BAS, and EMS systems, leading to better control over the equipment. A two-way data flow enables full access to the analytics software as well as the HVAC equipment from any location. The facility manager can check on the chiller, for example, from home first thing in the morning, and the optimization vendor can remotely troubleshoot the system right down to its individual components. Even mechanical problems can get fixed much faster, because repair people know in advance what isn’t working.

Additionally, cloud connectivity allows the transfer and storage of large amounts of operational data cheaply and securely off-site.

Even Smarter Systems Are on the Horizon

Machine learning and artificial intelligence are poised to enable even better control of HVAC systems. With data sequencing, archived data, and efficiency and building energy models, optimization and analytic software can learn how various pieces of equipment respond to different conditions and can tell the BAS how to most efficiently run the HVAC system in real time, or even predict the best equipment to use in future conditions.

Automatic optimization through machine learning could increase savings—we’re already starting to see companies gain an additional 5 to 7 percent efficiency improvement through machine learning programs added onto their optimization platforms. One example is dynamic sequencing, which determines the most efficient combinations of equipment to run, taking into account system load, weather, and occupancy. The program learns over time, and as equipment efficiency changes it determines new sequences to maintain or even improve system energy savings.

Two-way connectivity through the cloud is what enables that kind of machine learning—which is ultimately what will make a facility smart.

This originally appeared in ACHR News.

Optimum Energy® Q2 Announcements – New Sales Leadership and Hydraulic Model Offering

Optimum Energy® Q2 Announcements – New Sales Leadership and Hydraulic Model Offering

Published
16 May 2023

Seattle, WA – May 16, 2023 – Optimum Energy®, a global leader in HVAC optimization solutions, is pleased to announce the appointment of Anthony MacDonald as Vice President of Sales and Marketing. In his new role, MacDonald will oversee the company’s sales and marketing strategy, team development, and revenue growth, leveraging his extensive experience in the energy and facilities sectors. Anthony officially joined OE on April 17th, 2023.

Bringing over two decades of expertise to Optimum Energy®, MacDonald most recently served as Vice President of Enterprise Sales at GridPoint®. Prior to that, he held prominent energy and sales leadership positions at EnerNOC (now Enel) and Target. His proven track record in building efficiency solutions and leading high-performing sales teams positions him as a valuable addition to the Optimum Energy team.

“Optimum Energy is fortunate to attract talented individuals like Anthony,” stated CEO Larry Stapelton. “His experience in building efficiency solutions leading high-performing sales teams will help OE expand our global footprint.”

MacDonald earned a bachelor’s degree in business management from Bethel University and holds certification as an Energy Manager in the Association of Energy Engineers.

Furthermore, Optimum Energy is proud to introduce their new Hydraulic Model offering, which enables a software-based approach to fluid system modeling and calculation. This innovative service provides clients with in-depth analysis of system capabilities, limitations, power cost assessments, and lifecycle system analysis. Overseeing this service is Dan Schaible, appointed as Director of Hydraulic Modeling. Schaible brings over 23 years of mechanical engineering and design experience in various sectors, including pharmaceutical, mission critical, institutional, and commercial markets, with a specialization in central utility plants over the past 15 years.

“We are excited to announce Optimum Energy’s newest capabilities using PIPE-FLO,” said CTO and Founder, Ben Erpelding. “Combined with our engineering expertise, Optimum can now provide customers with a digital twin of their distribution piping. By creating a digital representation of your chilled water, hot water, condenser water, or steam distribution system, OE can establish hydraulic limitations, improve optimization and decision-making, and provide root-cause analysis of problem areas. This is a natural extension of our engineering capabilities, our quest for the highest customer reliability and resiliency, and our suite of optimization products for chilled water, steam, hot water, and net zero operation: OptimumLOOP and OptimumHEAT.”

 

About Optimum Energy®

Since 2005, Optimum Energy’s patented software and engineering expertise has helped customers reduce energy use in heating and cooling systems, the largest consumer of energy in buildings, by up to 50%. Our solutions combine technologically advanced HVAC optimization software with powerful cloud-based data analytics and world-class engineering support. It’s a proven, measurable approach that verifiably reduces energy and water usage, while also resulting in significantly improved operations. From dramatic energy reductions to improved business continuity, from better asset management capabilities to powerful tools and engineering support that augment your existing facilities staff capabilities, Optimum Energy has the complete solution for maximizing your HVAC system’s operational efficiency.

Optimum Energy Awarded EcoVadis Bronze Medal for 2023 Sustainability

Optimum Energy Awarded EcoVadis Bronze Medal for 2023 Sustainability

Published
01 May 2023

Optimum Energy’s Sustainability Efforts Recognized

SEATTLE, 5/1/2023– Optimum Energy, a leading provider of energy optimization solutions, has been awarded a Bronze Medal by EcoVadis for its sustainability performance. EcoVadis is a global platform that provides sustainability ratings and assessments for companies, enabling them to manage their sustainability risks and improve their overall sustainability performance.

EcoVadis assessed Optimum Energy’s sustainability performance in four key areas: environment, labor and human rights, ethics, and sustainable procurement. Based on the assessment, Optimum Energy was awarded a Bronze Medal, which places the company in the top 50% of all companies assessed this year. This recognition not only confirms that Optimum Energy is taking significant steps towards achieving its sustainability goals, but also highlights the company’s willingness to improve its environmental and social impact continually.

About Optimum Energy
Since 2005, Optimum Energy’s patented software and engineering expertise has helped customers reduce energy use in heating and cooling systems, the largest consumer of energy in buildings, by up to 50%. Our solutions combine technologically advanced HVAC optimization software with powerful cloud-based data analytics and world-class engineering support. It’s a proven, measurable approach that verifiably reduces energy and water usage, while also resulting in significantly improved operations. From dramatic energy reductions to improved business continuity, from better asset management capabilities to powerful tools and engineering support that augment your existing facilities staff capabilities, Optimum Energy has the complete solution for maximizing your HVAC system’s operational efficiency.

Join Us at IDEA Campus Energy 2023 in Grapevine, TX

Join Us at IDEA Campus Energy 2023 in Grapevine, TX

Published
23 February 2023

Optimum Energy is excited to be live in person next week at the upcoming 2023 IDEA Campus Energy Conference in Grapevine, TX on February 28 to March 2, 2022. If you are attending the conference in person, will have the honor of co-presenting with the University of Texas Medical Branch (UTMB) Galveston.

Ben Erpelding (Optimum Energy) and Colin Hartwell (UT Medical Branch Galveston) will tell the story of how our partnership improved efficiency and enhanced reliability at UTMB.

So, join us on

Wednesday, March 1, at 8:30 AM EST.

Session: 4E: System Optimization

Title: Increasing Reliability And Resiliency Through Chilled Water Plant Optimization Presenters: Ben Erpelding (Optimum Energy) and Colin Hartwell (UT Medical Branch Galveston)

While you’re at the conference, please come by our booth (#135) to discuss how Optimum Energy optimizes HVAC systems to deliver energy savings of up to 50%, reduce carbon output, and reduce water consumption, while improving an organization’s business continuity and overall operational efficiency. You can either drop by during the dedicated “Exhibit Hall” time or set up an appointment to speak with us at another time of your choosing.

TECO: A deep dive into optimization data yields unexpected savings

TECO: A deep dive into optimization data yields unexpected savings

Published
16 May 2022
Photo courtesy of Thermal Energy Corporation (TECO)

 

Layered efficiencies drive down costs while maintaining reliability

This article originally appeared in Districted Energy Magazine

Michael P. Manoucheri, P.E. is TECO’s president and CEO; and Ben Erpelding, PE, Chief Technology Officer, Optimum Energy

A three-phase initiative to explore and implement cost savings across the largest district cooling system in North America has paid off handsomely and quickly bringing significant system improvements even in the midst of the COVID-19 pandemic. Efficiency gains have been seen in condenser management, chiller operations, and thermal energy storage.

The project’s genesis can be traced to IDEA’s annual conference in June 2019, when representatives from Thermal Energy Corporation (TECO) and Optimum Energy struck up a conversation about the pitfalls of drawing electricity from the grid in the sweltering heat of a Texas summer.

The TECO team wondered if the company could decrease electrical consumption from its main site before June 2020, the start of the next peak demand season. Customer chilled water demand was growing rapidly enough to soon exceed on-site generation resources.

TECO needed a solution that would maintain reliability, keep costs down and conserve resources. That initial conversation, in 2019, turned into a multiphase, plant-wide optimization journey that now saves TECO $550,000 and 16.1 million kWh of energy annually – even as customer demand for chilled water continues to rise.

TECO, named IDEA’s System of the Year in 2019, provides chilled water and steam to Texas Medical Center in Houston, which – as the world’s largest medical campus – requires reliable, economical heating and cooling and has growing needs.

Peak chilled water demand has increased by 9,000 tons over the past four years and is expected to grow by an additional 9,000 tons over the next three years. TECO has found that the most cost-effective way to manage district growth while maintaining its historical reliability of 100%, with no unplanned outages since 1992, is to layer on new efficiency measures.

Partnering with Optimum Energy, TECO’s engineering team developed a three-phase plan. First, for the condenser water system to conserve more energy and reduce costs; second, to have the chiller staging procedures better handle changing loads; and third, to take advantage of real-time electricity pricing for the thermal energy storage (TES) tank dispatch.

Two years down the road, TECO has improved control over the energy balance of its CHP system and its TES tank, reducing the chiller plant’s electrical demand. In the first seven months of optimization – from June to December 2020 – TECO lowered peak demand by 2 MW, saving nearly 10.5 million kWh, and reducing the plant’s energy consumption by 6%. Now, TECO can avoid spot-purchasing power from the sometimes unreliable public grid and more easily keep up with customer demand. By reducing peak demand, TECO also bought time to develop a new master plan, including how and when to add power production capacity.

Read the full article here

We are excited to welcome Jason Whittier, our new Senior Director of Product Development

We are excited to welcome Jason Whittier, our new Senior Director of Product Development

Published
23 November 2021

We are excited to announce that Jason Whittier has joined the Optimum Energy team as our new Senior Director of Product Development. Jason received his BS degree in Computer Science and then attended Arizona State University earning an MS degree in Information Management. For the last twenty-five years, Jason has been in the software development and intelligent building space, working to make buildings smarter, better integrated, and more energy-efficient. Prior to coming to OE, Jason lead engineering teams at Buildings IoT in the development of a cutting-edge building systems platform. Prior to that, Jason spent fifteen years at Tridium in various positions, building a strong foundation for his follow-on leadership roles in smart building technologies.

When he’s not working on industry-leading software projects, Jason enjoys some serious road and off-road cycling, supporting his daughter at chess tournaments and swim meets, or perfecting his chef skills with his backyard smoker.

We are thrilled to have Jason on the Optimum Energy leadership team!

Join Us at the SRAPPA (Southeastern Region of APPA) Conference in Mobile, AL

Join Us at the SRAPPA (Southeastern Region of APPA) Conference in Mobile, AL

Published
06 October 2021

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Optimum Energy is delighted to be returning in person to the SRAPPA Annual Conference in Mobile, AL from October 9 to 13. At this conference of leaders in educational facility stewardship, we will be sharing our stories of successful HVAC optimization implemented at prominent campuses like Georgia Tech, UT Austin, and Baylor University. If you’re going to be at the show, stop by booth #9 to learn first-hand how our chiller plant optimization software solutions can significantly reduce your campus energy costs and increase your facility’s operational efficiency. leading

For more information on the conference, visit the SPAPPA website

We are excited to welcome Chris Sidwell, our new Project Manager III

We are excited to welcome Chris Sidwell, our new Project Manager III

Published
27 July 2021

 

We are excited to welcome Chris Sidwell, our new Project Manager III. In 2002, Chris received his PMI certification as a Project Management Professional and has worked as PM for well over 20 years in multiple disciplines. Prior to Optimum Energy, Chris worked for several major control’s companies including Danfoss, Novar, Alerton, Teletrol, and Daintree. Chris’ experience spans many technical positions, from fieldwork, to programing, to program/project management. Chris has a strong background in HVAC/R, spending many years performing mechanical work and working on controls systems.

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When Chris is not immersed in HVAC technology, he is enjoying the outdoors camping with his family and friends. Chris is also busy taking advantage of his time with his son, who is about to start his 1st semester of college. Somehow, Chris also finds time to build street rods and explore his creativity through his laser engraver.

Saving Water by Reducing Energy Consumption in Your HVAC System

Saving Water by Reducing Energy Consumption in Your HVAC System

Published
06 July 2021

his article originally appeared on FacilityManagement.com

By Ian Dempster

Saving Water by Reducing Energy Consumption in Your HVAC System

Most facility managers have no idea how much water they’re wasting through their HVAC systems. Fortunately, cutting this waste is a happy byproduct of optimizing HVAC systems to reduce energy consumption and costs. Improving the efficiency of a central plant’s HVAC system, including automating components for real-time optimal performance, can cut chiller water use by thousands of gallons.

Commercial buildings often draw more water for cooling and heating than for any other use—including the far more obvious ones. Water consumption varies by climate and building type, but studies show the HVAC system may account for up to 48 percent of a building’s water consumption, with restrooms and kitchens using 31 to 37 percent, and landscaping accounting for only 18 to 22 percent.

An HVAC optimization solution should reduce the system’s energy usage and costs, decrease water usage in chiller plants, and track savings. It should also calculate the most efficient operation of the whole system – whether that’s one building or an entire campus – in real time, automatically and continuously optimizing the performance of the chiller plant.

Energy and water savings go hand in hand. If a facility’s cooling tower is using more than 3 gallons of water per ton-hour of cooling, the HVAC system is running inefficiently. Optimization can cut that usage to 2.5 to 2 gallons per ton-hour of cooling while reducing energy use and costs.

Read full article here

Optimum Energy maintains a strong security focus by, yet again, passing the AICPA SOC 2 Audit in the Trusted Services Criteria

Optimum Energy maintains a strong security focus by, yet again, passing the AICPA SOC 2 Audit in the Trusted Services Criteria

Published
29 June 2021

We are extremely pleased to announce that Optimum Energy has yet again passed AICPA SOC 2, Type 1 audit of our systems and organization controls relevant to security and availability.  This effort included months of reviewing and providing evidence that not only do we have established policies and procedures, but those are closely followed.  The auditor’s review touched every department in the organization, all hosting environments including Digital Fortress, GCP and AWS, all vendors that are in contact with customer or employee data, software development, HR, and a deep-dive through security policies and procedures. The SOC 2, Type 1 audit is a very powerful example of our commitment to our customers, their data, and the availability of OptiCx.

For more information about our cybersecurity click here.