Let's talk about electrification, digitalisation and decarbonisation

The target for net zero emissions by 2050 has put energy efficiency in the spotlight. However, this topic often revolves around terms like digitalisation, electrification and decarbonisation. Although these terms are usually discussed individually, the concepts they convey are closely linked, especially in relation to commercial buildings.

In this article, energy management experts from Exergio, an AI-driven energy optimisation company, break down what these terms mean in practice and how AI tools can act as a binding force for all of these energy efficiency processes.

“The real challenge is in how to apply these concepts effectively. Electrification doesn’t always result in decarbonisation, and digitalisation is often overlooked as a means to optimise energy use. The goal is not just to implement these processes but to do that intelligently,” said Donatas Karčiauskas, CEO of Exergio.

What is decarbonisation?

Decarbonisation means reducing carbon emissions. It usually involves using less energy, which makes buildings more efficient. This task is accomplished by optimising energy use, improving energy efficiency and using renewable sources.

The International Energy Agency (IEA) reported that buildings are responsible for approximately 30% of global final energy consumption and 26% of global energy-related CO₂ emissions. Companies employ strategies like retrofitting, electrification and AI-driven energy management to deal with the issue.

IEA also noted that the building sector needs to triple its energy efficiency improvement rate to stay on track with net zero targets.

Recent projects, such as the Empire State Building’s retrofit, have shown that deep energy retrofits can reduce emissions by up to 40%.

At 45 Broadway, Manhattan, the integration of AI-powered systems, which is a form of digital retrofit, into the HVAC system reduced energy consumption by 15.8%. It resulted in savings of over US$42,000 and a decrease of 37 tonnes of CO₂ emissions. It could be compared to taking about eight cars off the road for an entire year or preventing the burning of over 15,100 litres of petrol.

“If we compare these two ways of decarbonisation side by side, we might think that deep retrofits are better. However, how much did they cost? What if these solutions were combined? Similar questions have to be asked by asset owners,” Karčiauskas said.

“However, explaining decarbonisation becomes difficult without terms such as digitalisation and electrification. We have to dive deeper into understanding each of them.”

Digitalisation and how it contributes to decarbonisation

Digitalisation is also a very important factor that can make buildings more energy-efficient, but according to Karčiauskas, it has to be supplemented by AI and data analytics.

“Simply put, digitalisation means integrating smart technologies, such as sensors, IoT devices and AI-based analytics, to monitor and control energy use in real time. For example, in a system with thousands of sensors, some may fail or operate inefficiently, but manual monitoring wouldn’t catch these issues quickly. AI-powered tools, however, can track every sensor 24/7, and instantly detect faults and optimise performance,” Karčiauskas continued.

For example, Exergio recently tested an AI-based energy management system in a commercial building, optimising its heating, ventilation and air-conditioning operations. As a result, the building cut energy waste by 29%.

“In commercial buildings, the sheer volume of sensors and data points requires a higher level of digitalisation,” Karčiauskas noted. “AI is the tool that helps to interpret this data and make real-time adjustments that humans might miss. For example, in a large office building, thousands of temperature, occupancy and air-quality sensors constantly collect data. AI can analyse this information in real time, adjusting HVAC systems to optimise comfort and energy efficiency. If a section of the building is unoccupied, AI can automatically lower heating or cooling, preventing unnecessary energy waste.”

Electrification allows switching from fossil fuels to clean electricity

Electrification means switching from machines and systems that run on fossil fuels such as petrol or diesel to ones that use electricity instead. Think of it like replacing an old gas stove with an electric one or swapping a petrol car for an electric vehicle.

“However, even though electrification is an important step to reduce dependency on fossil fuels, it does not automatically lead to decarbonisation,” Karčiauskas added.

A recent study found that the electrification of commercial buildings has had mixed effects on carbon intensity. From 2001 to 2021, electrification helped to save 2456 MtCO₂ globally; this would translate to the yearly emissions of 530 million petrol-powered cars. However, space heating, in particular, had a significant negative impact on decarbonisation due to high electricity consumption (7.95 kgCO₂/m²/year). Over time, this impact has weakened, because the usage of appliances and cooling systems consumed less electricity and decarbonised more effectively.

“Electricity, like any other resource, can be wasted if not optimised properly,” Karčiauskas explained. “That’s why AI-based tools help in the process. They ensure that electrification saves energy and lowers emissions.”

AI technology can help unlock the full potential of digitalisation, electrification and decarbonisation. By integrating real-time data, AI can detect inefficiencies and optimise energy use.

From HVAC systems to lighting and renewable energy sources, AI-driven tools improve building performance and reduce carbon emissions simultaneously.

“AI connects all the dots. It ensures that every kilowatt-hour of energy is used as efficiently as possible, incorporating renewables, adjusting HVAC operations based on external conditions, and identifying unnoticed inefficiencies. It can make a measurable difference in how much energy is saved as the whole energy system is optimised to work efficiently,” Karčiauskas concluded.

Image credit: iStock.com/Kanizphoto