IDC Energy Insights Report Reveals Opportunities to Make Smart Building and Smart Grid Interconnection a Reality

FRAMINGHAM, MA, July 10, 2012 – IDC Energy Insights announced today the availability of a new report, Methods and Practices: Smart Buildings and the Smart Grid – Strategy for an Integrated Future, (Document #EI235547). The report highlights the significant market opportunity for building owners, utilities and vendors as they develop Smart Buildings that effectively communicate and interact with the Smart Grid. The report also outlines the “next practices” necessary to make the vision of interoperability a reality. By understanding how different technologies and frameworks can support more coordinated and collaborative development of Smart Buildings and the Smart Grid, IDC Energy Insights finds building owners, utilities and vendors can generate economic gains, achieve business goals and establish grid stability.

Additional key findings include:

Building management decision makers, technology vendors, and electric utilities all have a stake in developing interoperability between Smart Buildings and the Smart Grid, yet few have taken advantage of the market opportunity to accelerate and expand the deployment of interconnected Smart Buildings.

The industry can learn from early adopters of both Smart Building and Smart Grid technologies to develop a framework of "next practices" that can foster collaboration between stakeholders and promote integration. This future model is important because it represents significant economic benefits for building owners, market growth for vendors, and new stability and reliability resources for electric utilities.

Despite the significant market opportunity, in the near term (1–3 years), Smart Buildings and the Smart Grid will continue to develop independently. However, the two will yield to interdependence through the impact of technology infrastructure development and maturity, regulations, customer segmentation insights, and distributed energy resource availability.

The report also found that vendors and utilities must find common ground in the process of adopting technologies and business practices. Utilities in particular need to more effectively engage commercial customers for participation in Smart Grid initiatives. In turn, vendors need to better support customer needs and improve investment economics by identifying ways to coordinate with electric utilities. This evolution in both business practices and technology infrastructure is necessary to realize the benefits associated with Smart Buildings and the Smart Grid. As such, a transformation in customer engagement models as well as in technology utilization and deployment will be required.

In addition, IDC Energy Insights found that while long term integration will be measurable, broad coordination between Smart Buildings and the Smart Grid will remain elusive over the next five years. Technology infrastructure maturity and Smart Building market development will be a matter of individual utility and state and local regulatory efforts.

“There has been a lot of talk about the opportunity for connected, responsive Smart Buildings that are interoperable with the Smart Grid. The reality, however, is that the development of Smart Buildings and the Smart Grid is taking place almost entirely independently of each other,” said Marcus Torchia, Research Manager at IDC Energy Insights. “Vendors, building owners and utilities are missing a major market opportunity in both the short and long term if they don’t consider adopting business practices to accelerate and expand the deployment of interconnected Smart Buildings.”

For additional information about this study, or to arrange a one-on-one briefing with Marcus Torchia please contact Julie Crotty at 978-877-0053 or julie@attunecommunications.com. Reports are available to qualified members of the media. For information on purchasing reports, contact insights@idc.com; reporters should email julie@attunecommunications.com

About IDC Energy Insights

IDC Energy Insights assists energy businesses and IT leaders, as well as the suppliers who serve them, in making more effective technology decisions by providing accurate, timely, and insightful fact-based research and consulting services. Staffed by senior analysts with decades of industry experience, our global research analyzes and advises on business and technology issues facing the utility and oil and gas industries. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world’s leading technology, media, research, and events company. For more information, please visit www.idc-ei.com, email info@idc-ei.com, or call 508-935-4400. Visit the IDC Energy Insights Community at http://idc-insights-community.com/energy.