ENERGY TRANSITION
“WHEN BUILDING OWNERS INVEST IN RESILIENCE AND FLEXIBILITY, THEY ARE PROTECTING LONG- TERM ASSET VALUE”
Mike Mustapha President of Smart Buildings ABB
Buildings are no longer expected to serve a single purpose for decades at a time. They need to evolve alongside the people and organisations using them. The buildings that can do that successfully will deliver benefits not only in operational performance, but in the experience they create for occupants.
Q. HOW DO YOU CONSTRUCT THE FINANCIAL BUSINESS CASE FOR RESILIENCE AND FLEXIBILITY WHEN COMPETING AGAINST THE CLEANER, MORE PREDICTABLE CAPEX OF A NEW BUILD?
» I think we sometimes frame the decision incorrectly. The comparison should not simply be between the cost of retrofitting and the cost of building new. The real comparison is between a building that can evolve and one that gradually becomes obsolete.
When building owners invest in resilience and flexibility, they are protecting long-term asset value.
They are creating buildings that can respond to changing regulations, energy markets, technologies and tenant expectations.
Increasingly, we are also seeing evidence that efficient, future-ready buildings command stronger market performance – up to 20 % more – than less adaptable alternatives.
Q. HOW DO REGULATORY PRESSURES AND CORPORATE APPETITES FOR RETROFITTING DIFFER ACROSS REGIONS?
» The motivations vary, but the direction of travel is remarkably consistent. In Europe, regulation is often the primary driver. Building owners are preparing for increasingly ambitious energy performance requirements and decarbonization targets. In North America, business cases are frequently driven by operational performance, asset value, and tenant demand. In the Middle East, we are seeing a shift from building world-class assets to ensuring those assets continue performing at a world-class level. That is creating growing interest in retrofit projects, energy management, and building modernisation.
What is interesting is that regardless of geography, the conversation increasingly ends in the same place. Building owners want assets that perform better, cost less to operate, and remain relevant for longer. The route may differ, but the destination is becoming increasingly similar.
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