Buildings that think: the rise of smart energy management

This piece was originally published in Energy Manager Magazine, September 2025

Author: Victoria Clarke, senior energy and carbon analyst, Salix

As the UK accelerates towards net zero goals, the built environment, responsible for approximately 25% of the UK’s total carbon footprint, is undergoing a transformation.

Traditional buildings are evolving into intelligent systems that are no longer passive energy consumers and instead are becoming data driven systems that are capable of real time optimisation. At the core of this transition is smart energy management which can deliver substantial savings, improve performance and lower emissions, all essential to a decarbonised built environment.

For decades, buildings have consumed energy without actively managing or optimising its use. Heating, cooling and lighting all ran on fixed schedules or manual controls, often regardless of actual occupancy or demand. This led to widespread inefficiencies, such as an empty office building being fully lit. 

Today, several powerful forces are driving the rapid rise of smart buildings. 

Through my work at Salix, I am able to see a range of innovative solutions using the very latest smart technology in our buildings.

As organisations commit to net zero targets, improving building efficiency has become a fast and high impact lever for reducing emissions. Additionally, fluctuating energy prices and rising peak demand make efficient energy use an economic necessity for building owners and operators. Traditional energy management models are no longer sustainable, and the pressure to enhance performance, cut costs and future proof assets continues to mount. Meanwhile, advances in AI and sensor technologies have made smart technologies more affordable and scalable which has accelerated adoption. These innovations enable data driven decisions, allowing AI and machine learning algorithms to accurately forecast energy demand, detect faults early as well as optimise consumption.

A smart building integrates automation systems, sensors, meters and AI driven analytics to monitor and manage energy use across a system, such as lighting, HVAC and ventilation and renewables and storge assets on site. They are typically controlled by a Building Management System (BMS) or Building Energy Management System (BEMS) which gather and analyse thousands of real-time data points. In effect, the building becomes capable of “thinking”, observing its environment, learning from patterns and making autonomous decisions. Such thinking can enable a building to adapt to occupant behaviour, environmental conditions and energy pricing automatically. These systems don’t just gather information; they act on it. For example, being able to adjust lighting based on natural sunlight, or even shifting energy usage to off-peak hours to save on cost. This automation has eliminated the need for manual intervention, which drives not only energy savings, but also system resilience and occupant comfort.

While the advantages are clear, challenges do persist. One of the primary concerns is interoperability, as these systems often involve a complex mix of sensors, hardware and software platforms, which must communicate seamlessly. Many legacy systems were never designed for integration, making it difficult to connect older infrastructure with newer technologies. Cybersecurity is another critical issue, as greater connectivity can increase the risk of digital threats if systems are not properly secured. There is also the matter of cost. Smart technologies often require high initial investment, along with the need for ongoing maintenance and skilled personnel to operate and interpret advanced automation and analytics tools effectively. 

Still, these barriers seem to be shrinking as technological advancements and supportive policy frameworks reshape the landscape. Modular, scalable solutions now allow owners to retrofit older buildings incrementally, meaning they can upgrade one component at a time, rather than requiring a full overhaul. Cloud based platforms have reduced the need for expensive onsite hardware, making deployment more accessible and flexible. 

Additionally, in the UK, regulatory drivers and government incentives are helping to accelerate adoption. Initiatives like the Public Sector Decarbonisation Scheme which we deliver at Salix, has offered funding for upgrades to low-carbon and smart energy systems. Meanwhile, as the industry increasingly adopts open standards and interoperable technologies, integrating systems such as lighting, HVAC, energy management and security is becoming more streamlined, improving operational efficiency and making buildings more adaptable for the future. 

The impact of smart buildings extends far beyond individual properties. By enabling more dynamic and responsive energy use, automation allows buildings to actively support wider grid management strategies, such as demand response, peak load reduction and integration with on-site renewable energy sources. For example, during times of high demand, a smart building could automatically reduce non-essential loads or temporarily shift to battery storage or on-site solar. In effect, the building functions not just as an energy user, but as an energy asset which contributes to grid stability. The shift aligns towards the move to more decentralised, low carbon energy systems. As the line between energy producers and consumer continues to blur, smart buildings are uniquely positioned to support a cleaner and more resilient energy future.

The rise of intelligent, automated energy management therefore represents a fundamental transformation in the way we design, operate and interact with the built environment. What was once considered a futuristic idea is now a practical, scalable solution addressing some of the most pressing challenges of our time: climate change; volatile energy markets; and the need for infrastructure that can withstand environmental and economic disruptions. 

Smart buildings go beyond merely conserving energy. By combining real-time data, automation and AI, they can “think” to optimise performance. In doing so, they fundamentally redefine how energy is sourced, distributed and consumed. In the race towards net zero, smart buildings are not just part of the solution-they are helping to lead the way.