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AT&T 10x Case Study:AT&T and Redaptive® help overcome obstacles to energy efficiency in buildings
Page 2©2018 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property
December 2018
AT&T 10x Case Study: AT&T and Redaptive help overcome obstacles to energy efficiency in buildings
AT&T 10x Case Study:AT&T and Redaptive® help overcome obstacles to energy efficiency in buildings
SummaryRedaptive®, a leading provider of Efficiency-as-a-Service (EaaS), is helping companies overcome the capital cost and other barriers that can prevent adoption of efficient building infrastructure such as lighting and heating/cooling equipment. By integrating its platform with AT&T Internet of Things connectivity, Redaptive is able to implement energy-efficient building equipment that can reduce energy costs and greenhouse gas (GHG) emissions for its customers with no upfront capital investment and immediate financial returns, while also helping those customers meet their sustainability goals.
Redaptive utilizes AT&T IoT connectivity to provide EaaS to more than 600 buildings in the US, where as demonstrated by this case study, it has reduced annual electricity use by almost 160 million kilowatt hours, equivalent avoiding the GHG emissions from consuming almost 10.7 million gallons of gasoline. For this case study, the electricity savings primarily results from upgrades to LED lighting, but the service could be used for other building equipment such as heating and cooling, and Redaptive is bringing these solutions to market.2
1 U.S. Environmental Protection Agency, Greenhouse Gas Equivalency Calculator. (Note, the average eGRID electricity factors have been used rather than the marginal AVERT electricity factors, this being a more conservative estimate of the savings).
AT&T believes technology plays a critical role in reducing carbon emissions. So, we’re using the power of our network to create a better, more environmentally sustainable world. We’ve set a goal to enable carbon savings 10x the footprint of our operations by the end of 2025.
To meet this, we’re working to make our operations more efficient across the company. We’re also working with our customers and technology partners to implement and scale carbon-saving solutions. This case study discusses and quantifies the carbon benefits of using AT&T technology to boost efficiency. This is one study in a series we’re sharing as we progress toward our 10x goal.
Learn about our goals, our progress, and more case studies like this at att.com/10x.
Estimated Annual Impact of AllRedaptive Projects in 2018
Over 600
160M kWh
10.7M gallons of gas¹
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December 2018
AT&T 10x Case Study: AT&T and Redaptive help overcome obstacles to energy efficiency in buildings
The Challenge: Lack of building data hinders the business case for efficiency
Companies are increasingly focused on energy efficiency for a variety of good reasons: reduced costs, enhanced working environments for employees, decreased emissions and the associated reduction in climate change impact. Commercial buildings represent a big opportunity to achieve higher energy efficiency: The American Council for an Energy-Efficient Economy reports that they account for 19% of energy consumption in the United States and heating and lighting comprise more than half of that consumption.2
While some building infrastructure technologies like LED lighting have grown cheaper and are widely available, many energy efficiency opportunities are not realized due to a variety of roadblocks:
- Unavailability of capital to fund the upgrades
- Lack of expertise and resources to vet technology
-Limitedinternalresourcestoimplementretrofitsinanefficientandtimelymanner
-Difficultytrackingperformanceandconnectingenergyefficiencyprojectstobottom-linesavings
Although energy consumption information is shown on standard utility bills, these statements do not typically specify energy use by equipment type or category (e.g. lighting, heating, etc.). Without detailed data, it is difficult to identify opportunities for upgrades and energy savings. Furthermore, energy managers find it difficult to accurately verify benefits after new equipment is installed.
In a survey of Fortune 500 executives, this data gap and the availability of capital and resources were identified as the top barriers to implementing energy efficiency projects.3 New EaaS solutions and power meter technology are emerging to address these challenges. Energy usage data strengthens funding models that eliminate up-front capital payments and instead use cost savings over time to fund the initial investment. But new meter technology has been prohibitively expensive to install. Additionally, these power meters require connectivity to transmit data from thousands—potentially millions—of endpoints over a secure network to a centralized system where it can be stored and analyzed. Customers are often reluctant to add external devices onto their existing Wi-Fi networks in order to transmit this data, and developing a hardwired or dedicated Wi-Fi network at each site adds additional expense.
2 American Council for an Energy Efficient Economy.
3 Johnson Controls, 2016 Energy Efficiency Indicator Survey.
• Commercial buildings account for 19% of energy consumption in the U.S.
• More than 50% of that consumption goes to lighting and HVAC.
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December 2018
AT&T 10x Case Study: AT&T and Redaptive help overcome obstacles to energy efficiency in buildings
The Solution: AT&T IoT gathers and analyzes building data in near real-time.
Redaptive’s vision is simple: use information and data to create a solution that boosts the adoption of energy-efficient technologies. Redaptive helps companies overcome the barriers that have prevented them from deploying equipment to reduce energy costs and GHG emissions, while lowering the operational costs at their buildings. Recognizing the need to do more with less, Redaptive offers broad expertise in finance, construction, development, engineering, and data science. Redaptive develops solutions to help companies reduce their energy and carbon footprint without major spending or the hassles of having to manage facility equipment upgrades. The result? A solution that provides off-balance sheet, turnkey building equipment upgrades that include materials, installation, and maintenance. These energy efficiency projects can deliver significant operational savings for Redaptive customers but require no upfront capital to execute.
Redaptive’s EaaS data platform addresses these challenges by using a granular, continuous stream of building energy performance statistics to create a financial model for customers that can reduce electricity costs immediately. By working with Redaptive, companies can reap cost savings and energy efficiency benefits without directing resources away from their core business. Redaptive assumes all project costs, project execution/performance risk and return on investment (ROI) risk of the project, and customers can benefit from immediate dollar savings over their contract term with Redaptive. Figure 1 is an example of the savings and reports that Redaptive can produce for its customers.
And as depicted in Figure 2, at the end of the contract term, the customer takes ownership of the assets, with zero buyout and enjoys 100% of the efficiency savings going forward.
Electricity Bill
ElectricitySavings
ElectricityUsage
ElectricityBill
ElectricityUsage
ElectricityBill
Net Savings
EaaS Bill
ElectricitySavings Net Savings
Before EaaSUpgrade During EaaS Upgrade After EaaS Upgrade
Energy & Cost Energy Cost Energy Cost
Figure 1:
Figure 2:
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December 2018
AT&T 10x Case Study: AT&T and Redaptive help overcome obstacles to energy efficiency in buildings
The Redaptive service requires a robust and cost-efficient connectivity solution that can transmit this ongoing stream of data. By teaming with AT&T, Redaptive addresses the complex data backhaul problem that typically requires either hardwired connections from each circuit or the deployment and maintenance of a dedicated Wi-Fi network – both of which can be cost-prohibitive solutions. In addition to using traditional LTE technology, AT&T has collaborated with Redaptive to embed an Internet of Things (IoT) connection directly into power measurement equipment. This enables Redaptive to transmit data straight to the cloud via AT&T’s LTE-M low-power wide-area network. This network enables longer battery life (up to 10 years) and provides wireless coverage in difficult-to-reach areas, such as deep inside buildings and in below-ground storage.
Customer Spotlight: Eastern Connecticut Health Network
Among commercial buildings, hospitals are one of the most intensive users of energy.4 With healthcare costs in the United States escalating, hospitals and healthcare facilities are prioritizing energy reduction projects that generate both cost savings as well as carbon emission reductions. Health systems across the US are making great strides in environmental sustainability starting with simple measures like retrocommissioning - an audit to review performance of building energy systems - often showing considerable energy and cash savings. 2
However, even with projects where cost savings are a big incentive, finding support for projects that need capital funding can be a challenge. Sixty-one percent of respondents in a recent Health Facilities Management (HFM) Sustainable Operations survey named competing investments and spending priorities as the top barrier to realizing environmentally sustainable measures.53 EaaS solutions like the Redaptive service can go a long way in overcoming the funding barriers for these energy projects within hospitals.
4 Healthcare Design, July 2012, Top 5 Things That Save Energy in Hospitals.
5 Hoppszallern, Suzanna; Burmahl, Beth & Morgan, Jamie, Health Facilities Management, October 2015, 2015 Sustainable Operations Survey.
“As we were developing our service, a dependable and sure connection was absolutely critical. We also needed a collaborator that could work closely with us during the development of the service. AT&T was a great fit, bringing IoT expertise and their
world-class network.”
-Arvin Vohra, Co-CEO, Redaptive
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December 2018
AT&T 10x Case Study: AT&T and Redaptive help overcome obstacles to energy efficiency in buildings
Eastern Connecticut Health Network (ECHN) turned to Redaptive’s EaaS platform to lower their electricity use and reduce their carbon footprint without up-front capital. Two hospitals were retrofitted with LED lighting and insulation and the Redaptive energy dashboard provides visibility to a stream of real-time consumption data. The hospital will save an estimated $600,0006 over the term of the contract. At the end of their term, the hospital will reap the full energy savings and financial benefits of the efficient lighting.
Sustainability Impact: Redaptive and AT&T have potential to drive carbon reduction at scale
Redaptive and AT&T believe strongly in the power of this service to enable large scale efficiency for commercial buildings and are working together to introduce this service to customers, not only for lighting, but also for other building equipment such as heating and cooling. Because so many businesses rely on their buildings for their business operations, this offering can benefit a wide range of companies, from retail and industrial to healthcare and education.2
The potential impact is meaningful for businesses and their communities. If just 5,000 facilities with lighting upgrade opportunities similar to the 600 buildings in this case study (e.g. 50 buildings in the largest 100 U.S. cities) used Redaptive EaaS with AT&T IoT connectivity to lower electricity usage and costs, the associated annual GHG emissions would be reduced by about 770,000 metric tons of CO2e a year. This is equivalent to:3
6 Calculated using energy consumption data collected using the Redaptive/AT&T EaaS solution.
7 U.S. Environmental Protection Agency, Greenhouse Gas Equivalency Calculator. (Note, the average eGRID electricity factors have been used rather than the marginal AVERT electricity factors, this being a more conservative estimate of the savings).
“We’ve changed out all of our lights…to LED lighting and it saved us an estimated $600,000 over the course of the contract.”
- Marc Brunetti, Chief Operating Officer at Eastern Connecticut Health Network (ECHN)
Taking almost 165 thousand cars off the road or Not burning almost 87 million gallons of gasoline7
REDAPTIVE EAAS AND AT&T CONNECTIVITY HAVE THE POTENTIAL TO HELP COMPANIES:
1.Realizetheelectricityandcarbon-savingbenefitsofmoreefficientequipmentwithoutup-front investment.
2.Reducerecurringelectricityexpenseduringthecontracttermandretaintheuseofthehigh-efficiencyequipmentandtheassociatedsavingsafterthetermoftheprogram.
3.Improvelightingandcoolingwithnewtechnologytoenhancetheworkenvironment.
4.Communicatebottom-linesavingsfromefficiencyupgrades.
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December 2018
AT&T 10x Case Study: AT&T and Redaptive help overcome obstacles to energy efficiency in buildings
Applying the 10x Carbon Impact Methodology
Carbon Trust and BSR collaborated with AT&T in the development of a methodology to measure the carbon benefits of AT&T’s technology. The details of the methodology can be found on the AT&T 10x website. The table below summarizes how the 10x methodology was applied to estimate the environmental impacts described in this case study:
Description of the Enabling Technology
AT&T connectivity enables the EaaS business solution to track saved power and cost savings resulting from an upgrade in energy-efficient equipment. This AT&T Redaptive case study covers LED lighting installed at 615 sites. AT&T’s connectivity plays a fundamental role in enabling the EaaS model. Without the connectivity, Redaptive customers would not be able to track energy cost savings at the equipment level and validate the results of the program.
Impact Category This case study focuses on carbon impacts.
Materiality
In facilities where renewable energy is unavailable, electricity use produces greenhouse gas emissions that contribute to climate change. AT&T is developing solutions to reduce electricity use and its resulting emissions and climate change impacts.
Attribution of Impacts
The carbon savings described in this case study are a result of the Redaptive EaaS business model that enables installation of energy-efficient lighting equipment, combined with the use of AT&T’s IoT technology. Both AT&T and Redaptive play a fundamental role in enabling the environmental benefits of the EaaS program.
Primary Effects New energy-efficient equipment allows Redaptive customers to save energy and reduce their carbon emissions.
Secondary EffectsUsing LEDs rather than fluorescent bulbs lowers cooling (HVAC) requirements. LEDs also have higher life expectancy, reducing the number of maintenance trips required to change lightbulbs.
Rebound Effects None
Trade-Offs or Negative Effects This technology does not appear to create other outsized or irreparable environmental or social impacts.
Carbon Burden from the Enabling Technology The embodied carbon emissions associated with the new lighting equipment.
Scope Total annual estimated carbon savings at the 615 customer sites using the Redaptive program as of August 2018.
Timeframe
Calculations in this case study were performed using the latest published eGrid emission factors (for 2016) and energy data from September 2017 to August 2018. This data was used to estimate savings for the calendar year of 2018.
Functional Unit The carbon abatement factor calculates the annual carbon savings (in metric tons CO2e) per site of newly installed lighting equipment.
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December 2018
AT&T 10x Case Study: AT&T and Redaptive help overcome obstacles to energy efficiency in buildings
Methodology
Energy savings are calculated using metered energy consumption and baseline audited energy consumption. The kWh reductions are then converted into carbon savings using regional 2016 eGrid emission factors. Savings from decreased cooling requirements are assumed to be 30% of the lighting energy savings.
Key Assumptions
• The 30% HVAC energy saving figure is based on the ASHRAE guidelines8 that 30 to 35 watts of cooling is required to offset the heat output for every 100 watts used to light a space. This is also equivalent to a SEER9 rating of 13, (the DoE minimum SEER standard10 for new residential installations is 13 or 14 dependent on region).2
• It has been assumed that monthly savings remain constant throughout the year.3
Exclusions
• Embodied carbon emissions associated with equipment (e.g. metering equipment, AT&T-approved LTE-M modules, LED lighting, etc.)4
• Carbon emissions associated with truck rolls for installation.
• Carbon savings associated with reduced maintenance trips to site (due to longer lifetime of LED lights).
Data Sources• Metered savings from Redaptive customer sites
• eGrid emission factors 2016
Carbon Abatement Factor 154 metric tons of CO2e per site
Lessons LearnedRedaptive’s service creates a rich data set of electricity usage information. This is a critical element to its business model, and it also makes estimating the energy and carbon savings easier and more accurate.
8 American Society of Heating, Refrigerating and Air-Conditioning Engineers
9 A SEER (Seasonal Energy Efficiency Ratio) of 13 is equivalent to a COP (Coefficient of Performance) of 3.28, which means 100 Wh of electrical input energy is required to provide 328 Wh of cooling, and that’s the same as 100 Wh of cooling requiring 100/3.28 = 30 Wh of electrical input energy.
10 American Council for an Energy-Efficient Economy, Fact Sheet on Air Conditioner, Furnace and Heat Pump Efficiency Standards Agreement.
