4Q 2019


Industry Transformation for Flexible, Integrated, Value-Generating Resources

Rapid demographic shifts like population growth, urbanization, and the rise of the middle class (140 million people annually) compound the interdependence of technology, regional economies, and government. Buildings offer enormous opportunity for value creation in this new era of globalization. According to Guidehouse Insights’ Global Building Stock Database, worldwide, an estimated 24 billion ft of new commercial buildings is constructed annually. These new buildings amplify opportunities within the existing commercial stock, which is expected to represent almost 500 billion ft in 2025. And although the climate crisis has magnified the challenges of globalization, it has also showcased the benefits of future-ready digital buildings.

The relationship between building energy supply and demand is evolving. Intelligent buildings use data analytics to direct automation and controls to optimize energy consumption, comfort, and experience. Building-to-Grid (B2G) is one of seven emerging energy platforms identified in Guidehouse’s Energy Cloud 4.0 vision of a more sustainable, highly digitized, and dynamic energy system. B2G offers a huge opportunity for new revenue generation for innovative technology and service providers, enhanced customer-centric experience for building owners, and decarbonization and flexibility benefits for tackling the climate crisis. Market leaders are those that can rapidly iterate solutions around disruptive technologies and reach the broadest potential market as possible, as quickly as possible.

This white paper details the foundation of B2G and the role of this new platform in the Energy Cloud, explores the core market dynamics defining barriers and opportunities for customer engagement and B2G market development, and offers a roadmap to navigate the journey to tomorrow’s B2G future. In addition, the paper summarizes specific actions B2G stakeholders can take to maximize their opportunity in the B2G transformation.

Pages 21
Tables | Charts | Figures 8
  • What are B2G enabling technologies?
  • What is driving the B2G opportunity?
  • Who will realize new revenue by engaging in B2G?
  • What investments do service providers, manufacturers, and utilities need to make to enable B2G?
  • What is the cost of inaction?
  • Electric Utilities
  • Building Technology Manufacturers
  • Corporate Real Estate
  • Enterprise Software Developers
  • IoT Vendors
  • Investor Community

1. Introduction: The Role of Buildings in a Low Carbon Future

2. Transforming Buildings into Flexible, Value-Generating Resources

2.1   Setting the Stage for B2G

2.1.1   Unlocking B2G: Transforming Supply and Demand

2.1.2   Driving B2G Value: Partnerships and Stakeholder Engagement

2.2   Initiating Market Transformation in the Built Environment

2.3   The State of Technology-Enabled Building Optimization and Grid Integration

2.4   B2G-Enabling Products and Services

2.4.1   B2G-Enabling Investments for Energy Providers

2.4.2   B2G-Enabling Investments for Customer

3. Positioning to Win Customers in the B2G Ecosystem

3.1   Setting the Stage for B2G Success: Near-Term Market Dynamics

3.2   Defining a Partnership Ecosystem

3.3   Opportunity Cost of Inaction

3.4   Illustrative Opportunities for B2G Services

4. Pathways to Success

4.1   From Intelligent Building to Energy Cloud Resource

4.2   Other Key Drivers for B2G Market Development

5. Conclusions and Recommendations

6. Acronyms and Abbreviations
  • Market Entry Pathways for Revenue-Generating and Cost-Containing Services
  • Mapping B2G Partner Opportunities
  • Revenue-Generating and Cost-Containing Services