Why building automation matters for the next phase of electrification

Introduction

The building sector accounts for around 40% of the EU’s final energy consumption and 36% of its energy-related greenhouse gas emissions, making it the single largest energy consumer in the EU (European Commission, 2024; EPBD recast). A building’s overall lifecycle GHG emissions footprint can be reduced by a combination of numerous decarbonization levers, ranging from the choice of building material (substituting concrete with engineered timber) and the design of the building envelope (improved insulation to mitigate heat losses) to co-located electricity production (solar-thermal and rooftop PV systems with battery storage) and the choice of climate solutions for building-related end uses, such as HVAC (heat pumps) and lighting (efficient LEDs).

But besides consuming less energy overall, another promising value-creation pathway (in particular for commercial and industrial building owners) refers to the use of energy at the right time. An often overlooked but important enabler and amplifier for both pathways of GHG emission avoidance are Building Automation and Control Systems (BACS). By integrating measurement, control, and real-time optimization across heating, cooling, and lighting, BACS can eliminate a substantial share of unnecessary electricity and heat consumption.

An ambitious EU-wide rollout of the EPBD’s BACS provisions could cut roughly 14% of building energy consumption, avoiding around 64 Mt of CO₂ and €36 billion in energy bills each year according to modelling commissioned by eu.bac, the European Building Automation and Controls Association (eu.bac / Politecnico di Milano, 2024). The three main levers are demand-controlled HVAC, peak load shaving, and sector coupling.

Demand-controlled HVAC

One of the most common sources of wasted electricity in non-residential real estate is a poorly controlled, continuously running HVAC system, which is commonly estimated to account for 40% to 50% of a commercial building’s total energy use. Intelligent system controls, empowered by BACS and IoT sensors, dynamically match a facility’s HVAC loads with actual demand over time. Instead of relying on rigid timers or manual switches, these systems draw on occupancy and CO₂ sensors. Precision temperature control with intelligent zoning eliminates hot or cold spots while keeping cooling and heating consistent.  The efficiency potential is significant. Under EN ISO 52120-1, higher-performance building automation and control functions (assigned Class A/B versus baseline Class C) can materially reduce thermal and electrical energy demand compared with standard control systems, particularly in offices, commercial buildings, and mixed-use assets. The key success factor is not only installation, but commissioning, tuning, and ongoing optimization. Whereas poorly configured automation can underperform, well-managed automation can become a recurring operational value lever.