< Previous MARKET FOCUS 30 February 2020www.fm-middleeast.com E nergy is one of the most important aspects of human lives. At present, most of the need is being met by either conventional energy sources like coal, natural gas and petroleum or by non-conventional energy sources like wind, tidal, solar, etc. With the increasing urbanisation and population along with the growing needs of people, electricity demands ENERGISED MARKET THE MIDDLE EAST AND AFRICAN MARKET FOR ENERGY MANAGEMENT SYSTEMS IS EXPECTED TO REACH $3.76BN have been peaking year after year. It becomes necessary to have efficient energy management systems in place for effective utilisation of energy as well as to reduce costs, improve profitability and the maintenance of environmental regulations. The Middle East and African market for energy management systems is expected to grow at a CAGR of 11.87% to reach $3.76bn by 2021 from the current estimates of $2.15bn. The need for effective utilisation of energy, reducing costs, improving profitability and maintenance of environmental regulations, has led to the increase in demand for installation of building energy management systems in the Middle East and Africa region. A building energy management system is a method to monitor and control the building’s energy needs. MARKET FOCUSMARKET FOCUS February 2020 31www.fm-middleeast.com The Surging construction market in the MEA region would result in surge in deployment of building energy management system in the residential and commercial sector. According to 6Wresearch, Middle East and Africa (MEA) Building Energy Management System Market size is projected to grow during 2019-2025. Saudi Arabia is the leading revenue generating country in the region on the back of growing construction projects in the country. The government of Saudi Arabia has introduced several development plans such as Saudi Vision 2030 and the National Transformation Plan 2020, to accelerate growth and diversification of the national economy. Such initiatives would help the non- oil sector to grow and promote the development of commercial buildings, offices, healthcare centers and hotels leading to an increase in demand for building energy management system. Sensors account for a considerable market share due to technological advancements and real-time data tracking with enhanced efficiency of sensors. The Commercial and Industrial sector are adopting Energy Management System as it is crucial in most sectors, to control and reduce carbon emissions, which is another reason for the increased demand for BEMS. Managing and reducing energy consumption not only saves money but also helps in mitigating climate change and enhancing corporate reputation. The primary objective of energy management is to achieve and maintain optimum energy procurement and utilisation, throughout the organisation which may help in minimising energy costs and mitigating environmental effects. Infact, energy management is widely acknowledged as the best solution for direct and immediate reduction of energy consumption. In recent years, energy consumption in the Middle East is rising exponentially due to rapid industrialisation and high population growth rate. In fact, the level of primary energy consumption in MENA region is one of the highest worldwide. However, the efficiency of energy production and consumption patterns in the region requires improvement. Though the per capita energy consumption in the GCC sub-region are among the world’s top list, more than 40% of the Arab population in rural and urban poor areas do not have adequate access to energy services. The Middle East is making a steady change towards energy efficiency and alternative sources of energy. Several declarations have been issued in recent years emphasising concerns and commitment of regional powers to achieve sustainable development. Energy Strategy 2030 introduced by Dubai aims to reduce energy demand and carbon dioxide emissions by 30% by the year 2030 through secure energy supply and efficient energy use while meeting environmental and sustainability objectives. Similarly Saudi Arabia is seriously pursuing the use of alternative energy in power generation. This is an attractive driver for businesses to adopt solutions that reduce overall energy consumption. Considering the rapid rise in power demand in the region, governments are now looking to diversify their energy mix from their primary energy source to a greater reliance on renewable energy. Middle East energy efficiency ranking is expected to get a major boost due to the development of large renewable energy projects in UAE, Saudi Arabia, Jordan etc. Balanced approaches are being employed to drive feasible clean energy projects while developing the regulatory framework and adaptation of energy efficient technologies. Many businesses in the Middle East have set dynamic strategic direction to achieve immediate reduction in energy consumption. The trend towards energy efficiency will only continue to grow to sustain this demand. With increasing environmental awareness, there is significant room for growth and leadership within the Middle East for the adoption of energy optimisation, introduction of specialised energy-saving systems and implementation of sustainable energy technologies. REFERENCES https://www.mordorintelligence.com/ industry-reports/middle-east-and- africa-energy-management-systems- market-industry https://www.6wresearch.com/industry- report/middle-east-and-africa-mea- building-energy-management-system- market-2019-2025 https://www.ecomena.org/energy- middle-east/32 February 2020www.fm-middleeast.com INSIGHT Sougata Nandi, founder & CEO of 3e Advisory and 3e Apps, on how an energy management (EM) programme can help reduce FM costs, among other things Facility management (FM) and energy management (EM) are two sides of the same coin as the influence of one is directly proportional to the results of the other. However, each requires its own specialised skillset that is rare to be existent simultaneously, in the same technical personnel. Proper maintenance regimes reduce energy costs and a comprehensive energy management programme helps reduce FM costs and there exists sufficient objective evidence to support this. The divergence between facility management and energy management starts at the point where the former is INCORPORATING EM WITH FM dictated by “building operation for zero complaints” while the latter operates on the principle of “building operation for optimal energy cost”. Typical facility management contracts are governed by KPIs and SLAs designed to ensure that the customers (building occupants) have a smooth occupancy experience in a building. Thus the polarised focus on quick response times to complaints and PPMs to minimise breakdowns (and thus complaints). And rightly so, since a building owner’s financial model is far greater influenced by the lease revenues (or occupant productivity if the building is self-owned), than it is by the FM and EM costs. Thus, ensuring occupant comfort (qualified generally by “zero complaints”) takes precedence over high FM & EM costs. Transitioning the current practice from facility “management” to facility “operation” could actually ensure occupant comfort at a lower utility cost. Facility operation is 24x7 active control of each and every MEP equipment in the building that consumes electricity in order to maintain comfort conditions, as opposed to a one time programming of the BMS or Chiller Plant Manager. Fundamentally, this requires the building “operator” to only operate equipment that is necessary, when it is necessary February 2020 33www.fm-middleeast.com INSIGHT and at the optimal capacity needed, on a real time basis. Energy cost reductions of anywhere between 10 to 40% (case to case) can be routinely achieved through this approach alone, with minor retrofit. This is made possible by the fact that buildings are designed for peak capacity/ load conditions, with installed MEP equipment capacities determined by same criteria. Fact remains that a building functions at peak conditions only for a few hours in a year. Through the daily, weekly and seasonal cycles, a building’s occupancy and external ambient conditions fluctuate dynamically. By matching the MEP equipment capacity to the current capacity/ load in real time, a 24x7 active building operation can generate utility cost reductions, without compromising on comfort conditions. In fact, in some cases, comfort conditions could actually improve; especially in this region where commercial building occupants are used to manually tampering with the air supply vents in their offices. Operating MEP equipment on a “need-to-operate” basis has the extended benefit of reducing equipment run-hours, which not only extends equipment lifetime, but also reduces both planned as well as preventive maintenance requirements (“need-to- maintain”) and thus costs. A leading chilled water utility company has significantly reduced their maintenance costs through “need-to-maintain” approach. For relatively smaller equipment like FCUs this may not create a huge impact individually, but in buildings with hundreds of FCUs, the collective impact could be significant reductions in FM and EM costs. The cost reduction impacts are even greater for equipment like chillers, chilled water pumps, FAHUs etc. Thus, a 24x7 active building operation regime not only establishes reduction in ongoing operating expenditures, but also revenue assurance, thereby enhancing profits. While this approach appears to be logical and simple, it is far from easy to implement, continually hampered by classic “business as usual” approach. First, every building owner is perpetually concerned about occupant complaints, especially if the customer is a key tenant or a high profile multinational company. Sometimes, the first and last showstopper is from the building owner, who simply declares that “I do not want to receive complaint calls from so-and- so”, putting a complete halt to any energy management program. It is much easier to let the MEP equipment run full blast than to entertain an irate high profile customer. Second, impediment is the structure of FM contracts itself, which holds the FM provider accountable for customer complaints and locks them into rapid response times through stringent KPIs and SLAs, violation of which could lead to imposition of penalties. While from a professional service delivery POV this type of contractual obligations are warranted, they also tend to make the FM provider shy away from optimising MEP equipment operations for fear of customer complaints. Again, it becomes far easier to let the MEP equipment run full blast than to be susceptible to penalties and poor ratings from customers. Third, blockade is the way FM businesses are forced to operate. In a cannibalised industry environment and a highly competitive market where each FM customer is highly prized, but the contracts not lucrative, service providers are compelled to leverage opportunities that require more maintenance works as additional scopes. FM contracts are generally “input” based, meaning any additional works like breakdowns in spite of PPM, lead to additional revenues and profits, thus making it incompatible with reduced run hours of MEP equipment. Fourth, obstruction is the absence of financial incentives for reducing energy costs in general FM contracts. While some building owners have started including a clause on energy cost reduction as part of FM, the fact is energy management is a specialised skillset that requires to be compensated for separately. Some owners have taken the bold step of deploying a separate energy management contract with the same FM provider that has its own independent commercial terms and conditions based on performance. In conclusion, while FM and EM are symbiotically intertwined, building owners need a deep level of education on the key facets of each and how both can be efficiently administered for triple bottom line benefits without compromising on comfort conditions. Caveat – if a building has an inherent design problem, then it is best to focus on resolving these problems, which often comes at the cost of higher FM, and EM costs. Sougata Nandi, founder & CEO of 3e Advisory and 3e Apps. WHILE FM AND EM ARE SYMBIOTICALLY INTERTWINED, BUILDING OWNERS NEED A DEEP LEVEL OF EDUCATION ON THE KEY FACETS OF EACH AND HOW BOTH CAN BE EFFICIENTLY ADMINISTERED FOR TRIPLE BOTTOM LINE BENEFITS WITHOUT COMPROMISING ON COMFORT CONDITIONS.” 34 February 2020www.fm-middleeast.com ENERGY NEWS One of the industry’s greenest alloys launched at ‘World of Technal’ conference by Hydro Building Systems Hydro Building Systems Middle East (the provider and producer of Technal systems) hosted a conference in Riyadh where industry leaders from the building and construction sector highlighted the need to lower carbon footprint in line with Saudi Vision 2030. Speakers from Zaha Hadid Architects, Kuraray Europe, Hydro Building Systems Asia, KEO International, Priedemann Facade Experts, AGC Obeikan Glass and Jotun Powder Coatings discussed that SAUDI CONSTRUCTION SECTOR URGED TO LOWER CARBON FOOTPRINT Sam Robinson, managing director, Middle East and India, Hydro Building Systems Middle East. energy efficiency and conservation is essential for economic growth and how sustainable building designs and construction materials will boost the kingdom’s Vision 2030, which aims to generate 30% of the total energy required through renewable resources. The conference addressed the transition of cities into ‘sustainable cities’ of tomorrow. Sam Robinson, managing director, Middle East and India, Hydro Building Systems Middle East, said: “We are pleased to open discussions about building solutions in compliance with Saudi Building Code that will help position Saudi Arabia as a leader in green buildings. With the mega trillion-dollar construction activities expected in the region in the coming years, sustainable construction practices and materials will be the driver for a safe carbon free future. Our goal is to construct sustainable building envelopes, in compressed urban spaces, where more people will live per square kilometer.” One of the highlights of the conference was the launch of Hydro CIRCAL, which is a revolutionary aluminium alloy with more than 75% end of life recycled February 2020 35www.fm-middleeast.com ENERGY NEWS aluminium. Using Hydro CIRCAL aluminium alloy for building facades helps to reduce carbon footprint by 50% and this supports sustainability demands of Saudi Vision 2030. Dr Werner Jager, director of Marketing and Technology, Hydro Building Systems, said: “Use of recycled aluminium for the windows, doors and curtain walls will reduce the carbon footprint of buildings. Today, the building skin just reduces the impact of the exterior climate on the interior climate conditions, by acting mainly as a separation layer. In the future, the building skin can, also minimise the environmental impacts of the urban ambient areas, by active and passive design measures and products. Today's building envelopes should also be designed to face threats such as fire, blast and ballistic attacks. Security for end users is of prime importance in today's buildings. The building envelope of tomorrow will become a “connecting layer” providing a connection to the interior with exterior whenever possible and truly enriching the ‘user living experience’ in buildings.” Fabian Hecker, senior associate, Zaha Hadid Architects talked about the importance of sustainability in architecture. Sandro Casaccio, Kuraray Europe, opened a discussion about climate change, harsh weather and improving safety. AGC Obeikan Glass’s managing director, talked about immediate challenges facing the industry. KEO International’s senior sustainability manager, Francis Porter highlighted latest technology developments in façade; Micha Pawelka, managing director, Priedemann Facade Experts, spoke on the challenges of implementing sustainable façade solutions; Nikolay Kolomiychenko, managing director, AGC Obeikan Glass highlighted the importance of energy efficiency; and Essam Aridi, country sales manager, Jotun Powder Coatings spoke on powder coating technology. The conference was sponsored by Jotun, AGC Obeikan Glass, Siderise UK, Trosifol, and supported by AIA Middle East (American Institute of Architects) and RIBA Gulf (Royal Institute of British Architects), the association for global architects and designers in the Middle East. OUR GOAL IS TO CONSTRUCT SUSTAINABLE BUILDING ENVELOPES, IN COMPRESSED URBAN SPACES, WHERE MORE PEOPLE WILL LIVE PER SQUARE KILOMETER. SAM ROBINSON, MANAGING DIRECTOR, MIDDLE EAST AND INDIA, HYDRO BUILDING SYSTEMS MIDDLE EAST SAUDI FM EXPO 36 February 2020www.fm-middleeast.com F M EXPO Saudi and Saudi Clean Expo, the Kingdom’s only facilities management and cleaning event, will return for a 4th edition at Riyadh International Convention & Exhibition Center from 11 – 13 February 2020. The announcement comes as demand for facilities management FACILITIES MANAGEMENT MIDDLE EAST WILL BE PARTICIPATING IN THE 4TH EDITION OF FM EXPO SAUDI AND SAUDI CLEAN EXPO services is increasing on the back of thriving construction activity in the country. With over $1.1bn worth of projects planned over the next decade, Saudi Arabia boasts the largest pipeline in the GCC region, according to a recent report by dmg events and MEED Projects. Saudi Arabia is the largest market for facilities management services in the Gulf Cooperation Council (GCC) region. In addition, the facilities management market in Saudi Arabia is highly cost sensitive, as people/organisation consider facilities management as a preventive maintenance process Citing Saudi Vision 2030 as a major driver for the Kingdom’s construction plans, event manager at dmg events, Saudi Arabia is the largest market for facilities management services in the GCC region. SAUDI’S BUOYANT FM SECTORSAUDI FM EXPO February 2020 37www.fm-middleeast.com huge role, and for this reason it needs to be preserved in its state of majestic modernity.” Designed to enrich the sector, FM EXPO Saudi and Saudi Clean Expo will also feature a free-to-attend workshop series made up of 20 sessions. Visiting professionals will be able to benefit from CPD (continuing professional development) certification points through these workshops, whilst getting to know the latest facilities management trends and techniques. Organised by dmg events LLC, FM EXPO Saudi is sponsored by Al-Hajry Overseas (Titanium Sponsor), Infor (Lanyard Sponsor), Enova by Veolia (Headline Workshop Sponsor) and Tamimi Group (Registration Sponsor), and is proudly supported by Vision 2030, and Riyadh Chamber. The event is co-located with HVAC R Expo Saudi and Stone & Surface Saudi. The events are held from 11 – 13 February 2020 at the Riyadh International Convention & Exhibition Center. FM EXPO Saudi and Saudi Clean Expo will present an unmissable opportunity for building stakeholders. IN LINE WITH THE SUSTAINABILITY PILLAR OF SAUDI VISION 2030, COMPLETED AND UPCOMING PROPERTIES ARE ALSO EXPECTED TO WITHSTAND THE TEST OF TIME, STAY COST EFFECTIVE, AND RUN WITH MINIMAL IMPACT TO THE ENVIRONMENT, MAKING IT EVEN MORE IMPORTANT FOR ASSET OWNERS TO CAREFULLY CONSIDER WHICH OPERATIONAL AND MAINTENANCE SOLUTIONS TO INVEST IN. Paddy O’Neil has commented: “The Saudi government’s vision has prompted development of mega- projects across multiple commercial spaces be it in the retail, tourism or residential sector, all of which will soon require expansive facilities management services. He added: “In line with the sustainability pillar of Saudi Vision 2030, completed and upcoming properties are also expected to withstand the test of time, stay cost effective, and run with minimal impact to the environment, making it even more important for asset owners to carefully consider which operational and maintenance solutions to invest in.” Bringing the best of the facilities management and cleaning industry together under one roof, FM EXPO Saudi and Saudi Clean Expo will present an unmissable opportunity for building stakeholders to find all they need to maintain their properties to the highest standard, and with the newest processes. Products on display at the event are expected to be the latest and most cutting-edge in the field, displayed by over 30 of the markets leading brands. Heavyweights signed up to exhibit at the event include the likes of Chbib, Al Majal, Nilfisk, Essity, and Reza Hygiene to name but a few. Mohannad Zughayer, Area Sales Manager at exhibiting company Rothoblaas SRL has commented: “Saudi Arabia is developing very fast towards the facility management industry to assure functionality, comfort, and safety of the built environment. The pedigree of the Kingdom within the region also plays a Paddy O’Neil, event manager at dmg events.38 February 2020 www.fm-middleeast.com NOMINATIONS ARE OPEN! Nominations for the 13th edition of the Facilities Management Middle East Awards are now open. The fmME Awards have come to be seen as the benchmark of success for FM companies in the region and the trophy pieces sit proudly on the mantel pieces of the leading FM con- sultants and contractors working in the Middle East, long after the night itself. The awards celebrate their 13th year in June and promises to bring the FM industry out in force. Nominations must be done through the event website which involves a quick, simple registration, followed by a written nomination of up to 500 words to summarise the entry and the key points for the judges’ consider- ation. It is recommended to prepare the nomination in advance to avoid the system timing out. Once the nom- ination has been submitted through the site, a single pdf with support- ing documents that will help judges to better evaluate your nomination should also be submitted online with your nomination before the nomina- tion deadline. You should read the descriptions of the awards categories which explains what the judges will be looking for before you submit your entries. This will help you to answer the key questions and structure your entry in a way that the judges can eas- ily assess the entry. This year too there will be 15 categories, namely Young Facilities Manager of the Year, Unsung Hero of the Year, Facilities Manager of the Year, FM Executive of the Year, Cleaning Company of the Year, FM Consultancy of the Year, Sanitation & Waste Management Company of the Year, Security Company of the Year, Sustainability Initiative of the Year, Education & Development Initiative of the Year, Technology Implementa- tion of the Year, Health And Safety Initiative of the Year, Overall FM Company of the Year, Property Man- agement Company of the Year and Engineering Service of the Year. The awards will be held on 10 June 2020 in Dubai (venue to be confirmed soon). So far, Ejadah, has snagged the Platinum Sponsor; AG Facilities Solu- tions and Tafawuq Facilities Manage- ment, a subsidiary of Eltizam Asset Management Group, are the Silver Sponsors; and Engie Cofely has come over as a Category Sponsor. If you are part of the FM com- munity in the Middle East, then this awards event is the one and only successful event in the Middle East region that you need to be involved in. For table bookings, please contact: Teri Dunstan, event manager, at +971 4 444 3227 or teri.dunstan@itp.com THE FACILITIES MANAGEMENT MIDDLE EAST AWARDS IS THE ONE AND ONLY, OLDEST AND SUCCESSFUL EVENT IN THE MIDDLE EAST REGIONPLATINUMSILVER FACILITIES & CONTRACTING CATEGORY February 2020 39 www.fm-middleeast.com FMME Awards 2020 Venue: Dubai (TBA) Nomination info: https://www.fm-middleeast.com/awards Date: 10 June 2020 Time: 7 pm onwards Nominations close: 1 April 2020 Categories: 15Next >