Energy flexibility in commercial buildings: why a good contract starts with usage-level data

Energy flexibility in commercial buildings refers to the ability to adjust electricity consumption, generation or storage to better match usage patterns with moments when electricity is more available, cheaper, or less carbon-intensive. In practice, this mainly means temporarily shifting certain controllable electrical loads, without compromising comfort or day-to-day operations.

 

For commercial property owners, the appeal is concrete: this load-shifting capacity can become a new source of revenue.

 

This is precisely where Tilt Energy comes in, a flexibility operator that helps commercial buildings identify, control and monetise their shiftable electricity loads. Tilt Energy focuses primarily on controllable electric HVAC equipment (heating, ventilation and air conditioning), such as electric heating, rooftop units, air handling units (AHUs) and associated equipment, provided these can be remotely activated via a BMS or an HVAC control solution.

 

But the benefit isn’t limited to revenue. By shifting certain loads to periods when electricity is less carbon-intensive, energy flexibility in commercial buildings can also help reduce a building’s carbon footprint. On a collective scale, it contributes to a more affordable and decarbonised electricity system, by reducing reliance on the most expensive or most polluting generation sources during periods of stress on the grid.

 

Before signing a contract, one question remains central: how much of a building’s consumption can actually be shifted, controlled and monetised?

 

We spoke to Guillaume Louat, Co-founder of Tilt Energy, about how to make this assessment more reliable, and the role played by data by end-use from Smart Impulse.

 

Energy flexibility: what exactly are we talking about?

Guillaume Louat: Energy flexibility is the ability to adapt energy consumption or generation to a given need. In the case of electricity, this means adjusting the power drawn by a building or piece of equipment.

Demand response is one specific form of flexibility, a downward flexibility, where consumption is reduced or shifted for a given period.

For a commercial building owner, the practical takeaway is simple: if certain equipment can be controlled without affecting comfort or operations, that capacity can be financially monetised through a flexibility contract.

Today, the industry talks more about “flexibility” than “demand response”, because the topic has broadened. It’s no longer just about reducing consumption at a given moment, it can also mean shifting it to more favourable times, for example when electricity is more abundant or less carbon-intensive.

In commercial buildings, this mainly involves equipment with a degree of thermal inertia or control flexibility, particularly electric HVAC systems. The goal always remains the same: preserving the comfort and smooth operation of the building.

 

Why is energy flexibility becoming a topic for commercial real estate?

G.L.: Because more and more commercial buildings now have control systems in place: BMS, energy monitoring, or connected HVAC solutions.

These systems make it possible to remotely act on certain equipment, particularly electric heating, rooftop units or AHUs. These are loads that can represent significant power within a building, while sometimes offering genuine operational flexibility.

The potential depends on several factors: the share of electric heating, the presence of controllable HVAC equipment, the state of the BMS, the ability to send a control signal, and comfort constraints.

 

How does an energy flexibility assessment start?

G.L.: We typically start by analysing the site’s overall load curve, the building’s aggregated electricity consumption.

From this curve, we try to isolate the portion linked to electric heating. To do this, we can cross-reference consumption with outside temperature. When it gets colder and consumption rises, this gives an indication of the power likely linked to heating.

This initial analysis allows us to estimate a potential. We can tell the owner: “We believe there is a certain amount of electric heating capacity on this site; if it’s controllable, it can be monetised through a flexibility contract.”

 

But at this stage, caution is needed. This is still an initial estimate, based on an aggregate curve. It’s enough to open the discussion, but not enough to commit to a volume. Before structuring the contract, we need to verify which equipment is actually present on site, which of it is controllable, and how much of the consumption can genuinely be shifted.

 

What role does Smart Impulse’s usage-level data play?

G.L.: An aggregate load curve doesn’t tell you precisely which equipment is consuming, or which of it is controllable.

A building may show a consumption pattern that looks like electric heating, but that doesn’t mean all of that load can be monetised. For example, a site might have several rooftop units, but only one connected to the control system. In other cases, we might identify resistive electric heaters in offices: they do consume electricity and appear as heating, but if they’re not controlled, they can’t be included in the flexibility contract.

This is where the risk of overestimation appears. We might identify a theoretical capacity, but part of that capacity won’t actually be activatable. For an owner, this can create expectations of revenue that are too high. For the operator, it can create risk at the point of activation.

Smart Impulse’s data by end-use makes this assessment far more reliable. Instead of just looking at the building’s total consumption, we can break it down into major categories: heating, HVAC, ventilation, lighting, IT, and other specific loads.

For us, this information is extremely useful because it lets us more precisely isolate the share linked to electric HVAC equipment, and then verify what’s actually controllable.

 

How does usage-level data make the contract more secure?

G.L.: A flexibility contract is built around an estimated shiftable capacity. If that capacity is poorly assessed, the contract can end up poorly sized.

For the owner, this can create expectations of revenue that are too high. For the operator, it creates risk during activations, since the capacity actually available may be lower than what was planned for.

Usage-level data therefore helps secure the commitment: it confirms which loads are consuming, which equipment can be controlled, and how much capacity can genuinely be shifted.

 

What role does the BMS play in energy flexibility?

G.L.: In most cases, you need a connected and functioning control system, either a BMS, or a solution that complements it.

The goal is simple: when a flexibility signal is sent, it needs to be translated into a concrete action on the equipment.

The EPBD is pushing commercial buildings to adopt automation and control systems. But it’s not enough to have a BMS on paper, it needs to be usable, connected, maintained, and capable of controlling the right equipment.

 

Across the commercial building stock, the situation remains highly uneven: some buildings aren’t controlled at all, others have an outdated or hard-to-operate BMS, and buildings with a genuinely functional BMS are not yet the majority.

This shows that flexibility rests on several building blocks: first, data by end use to identify the potential; then, control systems to activate the equipment; and finally, the operator to monetise the shiftable consumption.

 

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FAQ, Energy flexibility and commercial real estate

 

What is energy flexibility?

Energy flexibility is the ability to adjust electricity consumption, generation or storage. In a commercial building, it mainly involves shifting certain controllable electrical loads, particularly HVAC equipment.

 

What’s the difference between energy flexibility and demand response?

Demand response is a form of downward flexibility: the building temporarily reduces its consumption. Energy flexibility is broader: it can include reducing, shifting, or temporarily increasing certain loads depending on needs and opportunities.

 

Why does data by end-use matter?

Smart Impulse’s NILM technology shows exactly how much of the consumption comes from heating, HVAC, ventilation, lighting, or other loads. Without this breakdown, flexibility potential can be poorly calibrated.

 

Is a BMS necessary to do energy flexibility?

In most cases, yes. A BMS, or a complementary HVAC control solution, is needed to translate a flexibility signal into a concrete action on the equipment.

 

How is an owner paid?

An owner is paid for their building’s ability to shift controllable electricity consumption. The more reliably and accurately this capacity is measured, the more secure the contract can be.

 

 

To go further:

Building Energy Efficiency: A Shared Strategy Between Owners, Occupiers and Operators

How can AI improve a building’s energy efficiency? The Smart Impulse x Foobot complementarity