ACHR News
search
Ask ACHR NEWS AI
cart
facebook twitter instagram linkedin youtube
  • Sign In
  • Subscribe
  • Sign Out
  • My Account
ACHR News
  • NEWS
    • Breaking News
    • New HVAC Products
    • Featured Products
    • Manufacturer Reports
    • HVAC Data
    • Legislation
    • ACHR NEWS Centennial
  • RESIDENTIAL
    • Air Conditioners
    • Furnaces
    • Residential Heat Pumps
    • Ductless
    • Residential IAQ
    • Testing, Monitoring, Tools
    • Components & Accessories
  • COMMERCIAL
    • Air Handlers
    • Rooftop Units
    • Chillers and Cooling Towers
    • Commercial Heat Pumps
    • Boilers and Hydronics
    • VRF/Ductless
    • Commercial IAQ
  • REFRIGERATION
    • Refrigerants
    • Refrigerant Regulations
    • Leak Management
  • CONTRACTOR PRO
    • Geothermal
    • Homeowner Study
    • VRF and VRV Ductless
    • Unitary Trends
  • EDUCATION
    • Training and Education
    • Business Management
    • Service and Maintenance
    • Continuing Education
    • Market Research >
      • HVAC Brand Awareness Report
      • VRV, VRF, VRVZ Report
      • Unitary Trends Report
      • Water Heat Professionals Report
    • Webinars
    • Sponsor Insights
    • eProducts Info
    • White Papers
  • EVENTS
    • HVAC Contractor Forum
    • Industry Events and Webinars
  • MEDIA
    • Videos
    • AHR Expo 2025 Videos
    • Podcasts >
      • ACHR News Podcast
      • HARDI Podcasts
      • AHR Expo Podcasts
      • ACCA Podcasts
    • Interactive Spotlights
    • Quizzes
    • eBooks
    • HVAC Talkback
  • HVAC GROUP
    • ACHR NEWS >
      • Current Issue
      • Digital Edition
      • Subscribe
    • Distribution Trends
    • SNIPS NEWS >
      • Join SNIPS NEWS
    • Engineered Systems News >
      • Join ES News
    • HVACR Directory
    • Contests
    • Newsletters
    • Contact
    • Advertise
    • My Account
HVAC Commercial MarketChillers and Towers

Energy-Efficient Equipment Is Not Enough to Truly Optimize an HVAC System

Following three key guidelines ensures significant savings

By Ian Dempster
Trends
November 5, 2018

HVAC systems are a ripe target for energy savings across a range of facility types: They typically account for 30 to 40 percent of energy use in health care facilities and college campuses and 65 percent of the energy used in pharmaceutical manufacturing facilities.

Chilled water systems also consume substantial amounts of water. Commercial buildings often draw more water for cooling and heating than for any other use — including the 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.

We recently calculated that an energy-intensive manufacturer could achieve about 80 percent of its targeted energy savings just through HVAC optimization. To achieve results like that, though, facility managers must ensure the equipment operates efficiently at all times and in all situations. Energy-efficient equipment on its own is not enough: Maximizing performance requires optimization software that orchestrates the whole system to utilize the equipment’s designed efficiency. Over time, equipment performance will drift, and the system will need to be adjusted in real time.

 

THREE RULES FOR RELIABLE RESULTS

Optimization goes well beyond tuning up or replacing equipment.

Typical optimization projects involve some combination of matching the system to actual use requirements; installing instrumentation (such as flow meters, power meters, and temperature and relative humidity sensors) to enable real-time control decisions and analysis; installing variable-frequency drives on fans, chillers, and pumps; installing modern equipment controls; and eliminating bottlenecks. With those measures in place, real-time optimization software can then operate the system for both cost efficiency and energy efficiency.

 

The most successful optimization efforts follow these three rules:

  1. You cannot optimize what you do not measure — Without an accurate measure of energy use by each piece of equipment in the system, it is impossible to accurately predict and report the impact of varying conditions on the system.
  2. Optimize systems, not just individual components — If an optimization plan focuses only on installing the most efficient pieces of equipment without considering how to maximize performance of the whole system, it won’t capture the total available system efficiency. Holistic automated optimization of HVAC systems typically increases energy efficiency by an additional 10 to 25 percent over just installing new equipment.
  3. Optimization must be automatic, dynamic, and continuous for maximum efficiency — Optimization should be a real-time dynamic process, not a static set-and-forget process. If a plant’s operational control is not based on real-time inputs, it cannot be fully optimized.

1 ACCURATE MEASUREMENTS

You cannot optimize what you do not measure

2 OPTIMIZE ENTIRE SYSTEMS

Focus on whole systems, not just individual components

3 CONTINUOUS PROCESS

Must be automatic, dynamic, and continuous for maximum efficiency

FOLLOW THE RULES: Along with energy-efficient equipment, these steps will help achieve true system optimization.

 

Calculating the current performance of the HVAC system is the first step in the optimization process. A detailed engineering analysis should show an hour-by-hour simulation of the system’s baseline performance against normalized weather data and load profiles for a full year. Next, a scope-of-work document should identify the electrical, mechanical, and control upgrades needed for a holistic optimization program. Based on those two evaluations, the engineering team can create a model that simulates the system’s post-upgrade performance and determines the project’s energy and cost savings.

To support the business case for the project, a life-cycle cost analysis should account for full implementation costs, including mechanical, electrical, controls, optimization, project management, qualification, sales taxes, affiliate staff fees, information technology costs, permits, commissioning, engineering, contingency, and so on; it must also factor in the cost of money, depreciation, utility incentives, and maintenance. A comprehensive analysis lets you calculate the project’s internal rate of return and net present value.

Looking for quick answers on air conditioning, heating and refrigeration topics? Try Ask ACHR NEWS, our new smart AI search tool. Ask ACHR NEWS →

Typical optimization projects involve a combination of the following energy conservation measures:

  • Matching the system to actual use requirements, ensuring proper temperature and relative humidity set points, air-change-per-hour requirements, and space pressurization;
  • Installing instrumentation (such as flow meters, power meters, and temperature and relative humidity sensors) to enable real-time control decisions, measurement and verification, and reports on key performance indicators;
  • Installing variable frequency drives on air-handling unit (AHU) fans, chillers, boiler combustion fans, chilled and hot water pumps, condenser water pumps, and cooling tower fans;
  • Installing modern AHU, chiller, and boiler controls; and
  • Eliminating mixing and bottlenecks (such as hot or rogue zones and undersized terminal units) by replacing three-way temperature control valves with two-way control valves and closing decouplers.

These measures allow optimization software to operate the system for maximum efficiency. For example, intelligently resetting the supply air temperature on an AHU will reduce simultaneous heating and cooling while allowing the system to reset chilled water and hot water temperatures back at the utility plant. An automated system can also control condenser water pumps, cooling towers, and chillers based on their relationship to one another.

 

REAL-WORLD VALUE

At the Penn State Health Milton S. Hershey Medical Center, results exceeded expectations. After the center optimized 12 chillers — eight in the central plant and two in each of the two satellite plants — its energy intensity dropped 4 percent. The project is yielding 4.16 GWh in annual savings, versus the 3.4 GWh facility leaders anticipated when they embarked on the project.

The University of Maryland’s Institute for Bioscience and Biotechnology Research (IBBR) shows how even newer plants with inflexible climate requirements can run more efficiently with the right strategy and technology.

James Johnson, the university’s director of facilities and lab services, converted the five-year-old IBBR plant to an all-variable flow plant and then added an optimization and control layer. From the variable-speed drives and sensors installed on chillers, pumps, valves, and tower fans, the software collects a tremendous amount of data about the plant equipment, including water flow, electrical power consumption, load conditions, and more. It compares the data to control algorithms, assesses plant conditions in real time, and then automatically changes pump and fan speeds using chilled water temperature, equipment staging, and other operational changes to maximize efficiency. The plant now runs 27 to 37 percent more efficiently.

Financial savings can be impressive as well. The corporate campus of a large health care provider in the Southeast is on track to save more than $200,000 each year with its chiller plant optimization. The University of Texas at Austin is saving $1.5 million annually by using the OptiCx platform to reduce electricity, steam, and water usage. And a major hospital chain in the South is saving $900,000 a year after having optimized only about one-third of its portfolio.

Projects like these show that building operators can wring savings out of even the most demanding environments, with new or existing equipment. The key is following the three rules of optimization.

Publication date: 11/5/2018

Want more HVAC industry news and information? Join The NEWS on Facebook, Twitter, and LinkedIn today!

KEYWORDS: energy efficiency HVAC optimization

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

 

Ian dempster

Ian Dempster is senior director of product innovation at Optimum Energy and a certified energy manager (CEM). He directs multiple simultaneous research and development projects, drawing on a 16-year engineering career that spans three continents. He can be reached at ian.dempster@optimumenergyco.com.

Recommended Content

JOIN TODAY
To unlock your recommendations.

Already have an account? Sign In

  • HVAC-enrollment

    The Trades Are Back: HVACR Programs See Nearly 30% Enrollment Spike

    A new wave of future technicians is entering the pipeline.  
    News
    By: Matt Jachman
  • 2025 Top 40 Under 40

    2025 Top 40 Under 40 HVACR Professionals List

    The 11th annual Top 40 Under 40 list highlights those...
    News
    By: Hannah Belloli-Oster
  • LG Ductless Mini-Split Systems

    The 9 Types of Heat Pumps

    As the U.S. moves toward electrification, heat pumps are...
    HVAC Commercial Market
    By: Joanna R. Turpin
Subscription Center
  • Create an Account
  • Start a Subscription
  • Manage My Account
  • Sign Up for Newsletters
  • Visit Customer Service
  • Update Preferences

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to The News audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of The News or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • Piggy Bank
    Sponsored byWatercress Financial

    Energy Prices, Inflation, and HVAC: What Today’s Homeowners Care About

  • Refrigerated Food
    Sponsored bySolstice Advanced Materials

    R-455A Refrigeration: A Cold Storage Solution for the Future

  • Airex Rooftop Units
    Sponsored byAirex Manufacturing Inc

    Consolidating Roof Penetrations: A Growing Trend in Multifamily HVAC Design

Popular Stories

HVAC-Price-Increase-graphic

HVAC Price Increase List: June 2026

Trump-Section-232.jpg

Trump Reduces Section 232 Tariffs on HVAC Equipment to 15%

R410A-Refrigerant-Cylinder.jpg

Refrigerant Recovery is a Revenue Opportunity

Heat-pump-cutaway.jpg

PFAS Rules and A2L Building Codes Continue to Evolve

Kroger.jpg

Kroger to Spend $100 Million to Reduce Refrigerant Leaks

View The ACHR NEWS
Centennial Anniversary Timeline

The ACHR News Timeline Chart
Submit a Letter
Submit a letter to our editors.

Events

November 6, 2025

Next-Gen Data Center Cooling: HVAC Innovation and Real-World Solutions

On Demand As AI workloads and high-density computing push traditional cooling methods to their limits, the data center industry is accelerating the adoption of next-generation HVAC technologies.

June 9, 2026

Before You Go All In on AI: Set Up Your Business to Actually Win

In this webinar, we'll walk you through exactly what to get in place before you add AI to your business. You'll leave with a clear picture of where you stand today and a practical action plan to set yourself up for real results.

View All Submit An Event

Poll

Summer Staff

Are you fully staffed for the summer season?
View Results Poll Archive

Products

BNI Mechanical/Electrical Square Foot Costbook, 2026 Edition

BNI Mechanical/Electrical Square Foot Costbook, 2026 Edition

See More Products
A2L Refrigerants - Free Webinar - May 21, 2026

Related Articles

  • Thermostat

    Smart Thermostats Are Not Enough to Bring Residential HVAC Into the 21st Century

    See More
  • Amount of Reclaimed Refrigerant Not Enough to Meet Demand: An HVAC Minute Video Update - December 11, 2023

    Amount of Reclaimed Refrigerant Not Enough to Meet Demand

    See More
  • Finding the Reasons an HVAC System Malfunctions Shows How to Improve Employee Job Performance

    See More

Related Products

See More Products
  • Manual LLH Cover_Final.jpg

    Manual LLH - 2019 (HVAC System Design for Low Load Homes)

  • new cover.jpg

    Profit is An Attitude: The Strategies You Need to Optimize Profits

  • HVAC/R Electrical Troubleshooting: Deciding where to begin DVD

See More Products

Related Directories

  • Alliance to Save Energy

    Coalition of business, government, environmental, consumer leaders promoting the efficient and clean use of energy worldwide to benefit consumers, the environment, the economy, national security.
×

Sign Up. Stay Informed.

The #1 trusted source for the HVACR industry since 1926

SUBSCRIBE
  • RESOURCES
    • Advertise
    • Contact Us
    • Advisory Board
    • Classifieds
    • Submit a Letter
    • Directories
    • Store
  • ACCOUNT CENTER
    • Create an Account
    • Start a Subscription
    • Manage My Account
    • Sign Up for Newsletters
    • Visit Customer Service
    • Update Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • Instagram
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2026. All Rights Reserved BNP Media, Inc. and BNP Media II, LLC.

Design, CMS, Hosting & Web Development :: ePublishing