Is smart profitable for real estate? - Evaluating the viability of smart energy management system investments for real estate owners

Eerika Janhunen

Is smart profitable for real estate? - Evaluating the viability of smart energy management system investments for real estate owners

Julkaisun otsikon käännös: Kannattaako kiinteistöomistajan investoida älykkyyteen? Älykkäiden energianhallintajärjestelmäinvestointien toteuttamiskelpoisuuden arviointi kiinteistönomistajien näkökulmasta

Eerika Janhunen

Tutkimustuotos: Doctoral Thesis › Collection of Articles

Abstrakti

Kiinteistöt kuluttavat noin 40% energiasta ja tuottavat kolmasosan ilmastopäästöistä maailmanlaajuisesti. Kiinteistöjen älykkyyden ennustetaan edistävän keskeisesti niin energiatehokkuus- kuin hiilineutraaliustavoitteiden saavuttamista. Tulevaisuudessa, kiinteistöillä tulisi kuitenkin olla riittävät teknologiset valmiudet osallistuakseen kaksisuuntaiseen energian ohjaukseen ja uusiutuvien energiamuotojen hyödyntämiseen perustuville energiamarkkinoille. Euroopan Unioni (EU) on hiljattain ehdottanut rakennusten älyvalmiusindikaattorin (engl. smart readiness indicator) käyttöönottoa edistääkseen kiinteistöalan investointeja älyjärjestelmiin. Kiinteistöjen älykkyyteen kohdistettujen investointien taloudellinen ja toiminnallinen houkuttelevuus ovat kuitenkin vielä uusia ja osittain epäselviä asioita kiinteistönomistajille.Tämän väitöskirjan tavoitteena on arvioida älykkyyden taloudellista toteuttamiskelpoisuutta ja arvonmuodostuslogiikkaa kiinteistöissä. Väitöskirjassa sovelletaan monimenetelmäistä tutkimustapaa hyödyntäen sekä laadullisia että määrällisiä tutkimusaineistoja. Älykkyyden moniulotteisen määritelmän vuoksi tutkimuksessa testataan ja kehitetään EU:n ehdottaman älyvalmiusindikaattorin sovellettavuutta Suomeen ja laajemminkin pohjoismaisille kiinteistömarkkinoille. Tutkimus tarkastelee empiirisesti alalle tyypillisten kannattavuusmittareiden sekä tuottoperusteisen kiinteistönarvonmäärityksen soveltuvuutta älykkäiden energianhallintajärjestelmäinvestointien arvioimiseksi kiinteistö- ja kiinteistösalkkutasolla. Tämä väitöskirja on ensimmäinen tutkimus, joka pyrkii yhdistämään kiinteistöjen älykkyyden ja kiinteistöalan toimintalogiikan teoreettiset perusteet tarkastellakseen älykkyyden taloudellista ja strategista toteuttamiskelpoisuutta kiinteistöissä. Väitöskirjan tulosten perusteella empiirisesti testattu rakennusten älyvalmiusindikaattori tunnisti älykkään energianhallintajärjestelmän älykkyyden keskeiseksi kriteeriksi mahdollistaen kiinteistöjen osallistumisen energiamarkkinoille. Erityisesti älykkään energianhallintajärjestelmäinvestoinnin ja sähkövaraston markkinapotentiaalin mahdollistamien uusien rahavirtojen havaittiin tuottavan suurimman älykkyyteen liitetyn rahataloudellisen hyödyn kiinteistöomistajille. Yllättäen, taloudellinen kannattavuus ei kuitenkaan yksistään riittänyt perustelemaan tarvittavia investointeja kiinteistön älykkyyteen. Muut älykkyyden tuottamat strategiset arvot, kuten käyttäjälähtöisyys ja kiinteistön brändi (joiden suoran rahataloudellisen hyödyn arvioiminen on haastavampaa), saattavat vaikuttaa ratkaisevasti kiinteistöomistajien halukkuuteen investoida älykkyyteen tulevaisuudessa.

Julkaisun otsikon käännös	Kannattaako kiinteistöomistajan investoida älykkyyteen? Älykkäiden energianhallintajärjestelmäinvestointien toteuttamiskelpoisuuden arviointi kiinteistönomistajien näkökulmasta
Alkuperäiskieli	Englanti
Pätevyys	Tohtorintutkinto
Myöntävä instituutio	Aalto-yliopisto
Valvoja/neuvonantaja	Junnila, Seppo, Vastuuprofessori Junnila, Seppo, Ohjaaja
Kustantaja	Aalto University
Painoksen ISBN	978-952-64-1181-1
Sähköinen ISBN	978-952-64-1182-8
Tila	Julkaistu - 2023
OKM-julkaisutyyppi	G5 Artikkeliväitöskirja

Tutkimusalat

energiamarkkinat
älyvalmiusindikaattori
älykäs energianhallintajärjestelmä
kiinteistöt
kiinteistösijoitus
kiinteistön arvonmääritys
strategiset hyödyt

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Pääsy asiakirjaan

http://urn.fi/URN:ISBN:978-952-64-1182-8

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title = "Is smart profitable for real estate? - Evaluating the viability of smart energy management system investments for real estate owners",

abstract = "The real estate sector is responsible for approximately 40% of the global energy demand and one-third of the produced carbon emissions. Promoting smartness in real estate is expected to further the achievement of the set energy efficiency and climate mitigation targets. Thus, future buildings should have the technological capabilities for two-way energy flow control to participate in the renewable energy resources-based energy markets. To accelerate investments in smartness in real estate, the European Union has introduced the smart readiness indicator (SRI) rating scheme for buildings. However, the financial and operational viability of the investments aiming to improve the smartness of real estate has still remained unclear for the owners. This dissertation aimed to evaluate the profitability and viability of smartness for real estate owners. The study applied a mixed-method research design using both qualitative and quantitative data. Because of the complex nature of smartness, the study first tested and developed the selected concept (i.e., SRI) in Finland and further in the Nordic real estate market. Second, the study observed the viability of the real estate market-specific investment evaluation metrics and property valuation for evaluating the profitability of income-generating smart energy management systems in buildings at the property and building portfolio levels. This dissertation was the first study to combine the theoretical grounds of smartness in buildings and the operation logic of real estate business to evaluate the economic and strategic benefits of smartness for real estate. The study found that the advance smart energy management system was the core technology making a building {"}smart.{"} Furthermore, the study found that the economic benefits of smartness were gained through the energy markets enabled by a building's smart energy management system. Still, the new cash flows were strongly related to the on-site energy storage (i.e., battery). Surprisingly, the financial profitability was not solely enough to execute the investment of smartness in buildings. Other strategic benefits generated by smartness, such as user adaptation and real estate brand (generally difficult to evaluate in financial terms), are expected to affect the real estate owners' readiness to invest in smartness in the future.",

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author = "Eerika Janhunen",

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N2 - The real estate sector is responsible for approximately 40% of the global energy demand and one-third of the produced carbon emissions. Promoting smartness in real estate is expected to further the achievement of the set energy efficiency and climate mitigation targets. Thus, future buildings should have the technological capabilities for two-way energy flow control to participate in the renewable energy resources-based energy markets. To accelerate investments in smartness in real estate, the European Union has introduced the smart readiness indicator (SRI) rating scheme for buildings. However, the financial and operational viability of the investments aiming to improve the smartness of real estate has still remained unclear for the owners. This dissertation aimed to evaluate the profitability and viability of smartness for real estate owners. The study applied a mixed-method research design using both qualitative and quantitative data. Because of the complex nature of smartness, the study first tested and developed the selected concept (i.e., SRI) in Finland and further in the Nordic real estate market. Second, the study observed the viability of the real estate market-specific investment evaluation metrics and property valuation for evaluating the profitability of income-generating smart energy management systems in buildings at the property and building portfolio levels. This dissertation was the first study to combine the theoretical grounds of smartness in buildings and the operation logic of real estate business to evaluate the economic and strategic benefits of smartness for real estate. The study found that the advance smart energy management system was the core technology making a building "smart." Furthermore, the study found that the economic benefits of smartness were gained through the energy markets enabled by a building's smart energy management system. Still, the new cash flows were strongly related to the on-site energy storage (i.e., battery). Surprisingly, the financial profitability was not solely enough to execute the investment of smartness in buildings. Other strategic benefits generated by smartness, such as user adaptation and real estate brand (generally difficult to evaluate in financial terms), are expected to affect the real estate owners' readiness to invest in smartness in the future.

AB - The real estate sector is responsible for approximately 40% of the global energy demand and one-third of the produced carbon emissions. Promoting smartness in real estate is expected to further the achievement of the set energy efficiency and climate mitigation targets. Thus, future buildings should have the technological capabilities for two-way energy flow control to participate in the renewable energy resources-based energy markets. To accelerate investments in smartness in real estate, the European Union has introduced the smart readiness indicator (SRI) rating scheme for buildings. However, the financial and operational viability of the investments aiming to improve the smartness of real estate has still remained unclear for the owners. This dissertation aimed to evaluate the profitability and viability of smartness for real estate owners. The study applied a mixed-method research design using both qualitative and quantitative data. Because of the complex nature of smartness, the study first tested and developed the selected concept (i.e., SRI) in Finland and further in the Nordic real estate market. Second, the study observed the viability of the real estate market-specific investment evaluation metrics and property valuation for evaluating the profitability of income-generating smart energy management systems in buildings at the property and building portfolio levels. This dissertation was the first study to combine the theoretical grounds of smartness in buildings and the operation logic of real estate business to evaluate the economic and strategic benefits of smartness for real estate. The study found that the advance smart energy management system was the core technology making a building "smart." Furthermore, the study found that the economic benefits of smartness were gained through the energy markets enabled by a building's smart energy management system. Still, the new cash flows were strongly related to the on-site energy storage (i.e., battery). Surprisingly, the financial profitability was not solely enough to execute the investment of smartness in buildings. Other strategic benefits generated by smartness, such as user adaptation and real estate brand (generally difficult to evaluate in financial terms), are expected to affect the real estate owners' readiness to invest in smartness in the future.

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KW - smart readiness indicator

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KW - property valuation

KW - strategic benefits

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T3 - Aalto University publication series DOCTORAL THESES

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Is smart profitable for real estate? - Evaluating the viability of smart energy management system investments for real estate owners

Abstrakti

Tutkimusalat

YK:n kestävän kehityksen tavoitteet

Pääsy asiakirjaan

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