In the current landscape of the construction industry, we have entered a phase characterized by existing stock, often referred to as the “stock era.” The focus has shifted to how commercial buildings can leverage smart upgrades and green transformations to revitalize existing assets and contribute to urban development. According to data released by the Ministry of Housing and Urban-Rural Development in July 2024, over 66,000 urban renewal projects have been implemented nationwide, with a cumulative investment of 2.6 trillion yuan.
As we face a wave of extensive equipment upgrades, the commercial building sector must prepare to embrace what can be termed the “golden era” of equipment renewal. In this edition of “Service Insights,” we will delve into the commercial real estate industry, utilizing Schneider Electric’s recently launched white paper, “The Trillion-Yuan Blue Ocean: Strategies and Practices for Equipment Renewal in China,” to explore how to harness the wave of equipment upgrades to empower the sustainable development of green buildings through digital intelligence.
Breaking Through Bottlenecks in Evolution
Buildings are continuously evolving into “intelligent organisms,” gradually transforming into an open ecosystem that deeply integrates people, machines, and materials. A large-scale equipment upgrade is essential for the ongoing evolution of commercial buildings as “living entities.” In light of the opportunities presented by this era, the construction industry is significantly increasing its R&D investments to accelerate the realization of digital intelligence and carbon reduction, aiming to enhance operational efficiency and competitive service capabilities. However, the path to evolution is fraught with challenges that need to be addressed:
- Inconsistent Brand Quality: The overall industry suffers from significant product and service homogeneity, with many small providers offering subpar quality, which not only hampers customer development but also obstructs the industry’s long-term growth.
- Lack of Scientific Energy Management Models: In the face of national carbon neutrality policies and urgent demands for upgrades, companies often lack mature solutions and scientific energy management models, leading to blind system expansions that yield low returns on investment and suboptimal energy-saving results.
- Data Silos Need Integration: Compatibility and collaboration between different manufacturers and types of equipment are often lacking, necessitating the breaking down of data silos between operational systems to achieve seamless integration among various business modules.
Empowering Evolution Throughout the Lifecycle
In response to the pressing need for transformation and upgrades in the construction industry, Schneider Electric has introduced a new service system. This system integrates EcoConsult consulting services, EcoFit™ adaptation and renovation services, and EcoCare operation and maintenance services, covering four major scenarios: electrical safety, power quality, agile manufacturing, and energy efficiency for carbon neutrality. These services aim to provide safety, efficiency, resilience, and sustainability, safeguarding the safe operation and green development of the construction industry.
EcoConsult offers comprehensive consulting services tailored for the renovation of commercial buildings, including equipment-level consulting (MPS), system-level consulting (PSS), and energy efficiency sustainability consulting (ESS). This service lays a solid foundation for implementation by conducting on-site inspections and assessments to identify electrical safety hazards, followed by software modeling for system reliability analysis, enhancing the continuity and reliability of smart buildings’ electricity usage. An all-encompassing upgrade plan will then be formulated, including optimization suggestions and prudent investment cost planning.
For outdated equipment updates and energy-saving renovations in commercial buildings, EcoFit™ provides comprehensive adaptation solutions for medium and low-voltage distribution systems, effectively extending equipment lifespan by approximately 25% and reducing resource waste by about 90%, thus supporting enterprises in achieving sustainable development. EcoCare’s lifecycle operation and maintenance services offer 24/7 protection and exclusive support, ensuring rapid response and problem resolution. To maximize the operational continuity and reliability of commercial buildings, EcoCare employs preventive maintenance strategies to predict potential issues proactively. Additionally, EcoCare provides customized online and on-site training courses to empower clients in fully realizing the superior performance of their equipment and systems.
Leading the Evolution Towards Green and Intelligent Commercial Real Estate
Through deep industry insights and leading service solutions, Schneider Electric has established partnerships with numerous clients in the commercial building sector to drive industry progress and realize the green transformation of commercial structures. For example, Swire Properties aims to become a global leader in sustainability performance by 2030. To achieve this, they have committed to a sustainability strategy and energy policies that enhance energy efficiency throughout the planning, construction, and operational phases.
Swire Properties seeks a unified energy management platform for multiple commercial buildings at the group level. By overseeing energy and operational data and employing real-time diagnostics combined with artificial intelligence, they aim to reduce energy costs and enhance operational efficiency. Schneider Electric has provided tailored solutions, including an integrated energy monitoring scheme, energy efficiency diagnostics and optimization software, companion software services, and AI-driven energy-saving algorithms for cooling stations, collaborating with Swire Properties to develop a cloud-based intelligent energy management platform. Following implementation, the energy efficiency levels of the group improved significantly, with one property reducing electricity usage by over 200,000 kilowatt-hours in just three months. This enhancement elevated the property’s status through ESG initiatives, attracting more high-end tenants and increasing rental prices, thereby boosting revenue.
Furthermore, innovative big data machine learning technology developed for this project received multiple accolades, including the 2023 ASHRAE Technology Award and the 2023 CISBE Best Digital Innovation Award, among others. Looking ahead, Schneider Electric will continue to integrate lifecycle service capabilities driven by innovative technologies, gaining insights into industry challenges and opportunities to empower the commercial building sector’s transition towards high-end, digital, and green development for sustainable growth.
To download the industry white paper, scan the QR code. In the next edition of “Service Insights,” Schneider Electric will focus on the petrochemical industry, continuing to provide insights on the path forward for equipment upgrades and transformations under current industry challenges.
