The future of energy management in high-rise communities

What is energy management?

Energy management is the process of monitoring, optimizing, and planning how a building uses energy to support operational efficiency, manage costs, and improve long-term performance. For high-rise communities, effective energy management goes beyond reducing consumption. It involves evaluating building systems, utility expenses, regulatory requirements, and future capital needs to help boards make informed decisions that align with their community's financial and operational goals.
 

Expert insights on energy management in high-rise buildings: An interview with Kelly Dougherty

Energy management is becoming increasingly complex for high-rise boards, as factors beyond the building play a larger role in shaping costs.

Technology innovations, environmental considerations, regulatory changes, fluctuating utility pricing, and shifting expectations are influencing how energy decisions are made and how financial plans are built. A clear understanding of these emerging energy trends supports more informed planning and greater long-term stability.

To better understand the trends influencing energy planning and what boards should be considering today, we spoke with Kelly Dougherty, president of FirstService Energy, the energy management arm of FirstService Residential. She shares insights on the forces reshaping energy management and how high-rise boards can position their communities for greater efficiency, resilience, and long-term value.
 

Q: What are some of the biggest shifts boards are seeing in how energy is managed?

"In the past, energy planning focused mostly on usage and utility rate negotiations. Today, boards also have to think about regulatory requirements, long-term building performance, and how today's decisions affect future costs. Energy is no longer just an operational expense. It has become a financial lever that directly shapes reserve planning, capital investments, and the long-term health of a high-rise."

Kelly Dougherty, president of FirstService Energy

Q: How are regulations and benchmarking shaping board decision-making?

"Benchmarking has become the gateway to broader building standards for boards. While noncompliance can lead to penalties, the real value is the data. Benchmarking helps boards understand how their building compares to others and where efficiency improvements can make the biggest impact. That shift from reactive decisions to informed planning is reshaping industry expectations."

Q: How are government policies and incentives influencing these decisions?

"Incentives can significantly change the financial equation. Programs at the federal, state, provincial, and local levels help offset the cost of efficiency upgrades, electrification, and renewable energy through rebates, tax credits, grants, and financing. Incentives and grants change from year to year and are often tied to policy goals. Boards that understand these programs can often advance projects sooner with less budget impact."

Q: What about electrification? What does it mean for high-rises?

"Electrification is about shifting systems like heating and hot water away from fossil fuels and toward electricity. For high-rises, that matters because of their overall emissions footprint. As electrical grids become cleaner, electrification can lower emissions and improve efficiency. Many boards are investigating long-term plans to fully or partially electrify their systems. Partial electrification may include offsetting domestic hot water generation and/or heating loads with an electric-based system.

Often, recommissioning existing systems is a smart first step because it lowers consumption and prepares the building for future upgrades without requiring an immediate full system replacement."

Q: Many boards are trying to balance immediate energy savings with long-term planning. Where should they start?

"One of the biggest misconceptions is that meaningful energy improvements always require major capital projects. In reality, some of the most impactful opportunities begin with understanding how existing systems are performing. Building assessments, energy audits, and recommissioning studies can often identify operational adjustments that reduce consumption, improve equipment performance, and extend asset life without requiring significant upfront investment.

Boards that take a phased approach are often in the strongest position. They can prioritize lower-cost efficiency measures today while developing a roadmap for larger projects in the future. That roadmap helps align energy goals with reserve planning, capital replacement schedules, and evolving regulatory requirements. Rather than reacting to individual issues as they arise, boards can make decisions within the context of a broader long-term strategy."

Q: Why is having an energy strategy becoming more important for high-rise boards?

"Energy decisions are becoming increasingly interconnected with financial planning, compliance, and building operations. A decision about equipment replacement today may affect future utility costs, capital expenditures, incentive eligibility, and even regulatory obligations. Boards that view energy as a strategic part of long-term planning often have greater flexibility when new opportunities or requirements emerge."

Q: How is EV adoption showing up in high-rise buildings? What tends to surprise boards about adding EV charging?

"Residents increasingly expect to charge where they live, even as public charging becomes more accessible. Fortunately, we're also seeing more market incentives for EV charging. As EV charging expands, boards must understand that there's more to consider than just installing equipment.

Boards must plan around electrical capacity, future demand, cost allocation, and billing practices. The good news is that today's technology allows boards to start with a small number of chargers and expand over time as demand grows. Having a well-defined plan in place as demand for EV charging increases is key for boards to stay ahead."

Q: How is renewable energy shaping the future of high-rise buildings?

"Renewable energy is becoming more accessible as costs continue to decline and incentives expand. Some high-rises are installing rooftop solar, while others participate in off-site or utility renewable programs. We're also seeing growing interest in energy storage, which helps balance renewable generation and improve reliability, especially as buildings electrify systems that were traditionally gas-based."

Q: What challenges do boards run into with renewable projects?

"Structural limitations, system integration, and upfront costs can limit on-site options. When that happens, alternatives like utility renewable programs or Renewable Energy Credits still allow boards to support clean energy goals without making physical changes to the building."

Q: How are building performance standards and decarbonization regulations influencing capital planning for existing buildings?

"As performance and emissions standards expand in cities like New York, Washington, D.C., Boston, Denver, Toronto and Vancouver, boards must align long-term capital plans with compliance — replacing aging systems with efficient, electric alternatives. Rebates, grants and utility incentives can offset upfront costs, improve project economics and accelerate building upgrades."

Q: Utility costs remain a concern for many boards. What trends are influencing water and energy pricing?

"Utilities are making major investments in infrastructure, data center development, grid modernization, and resilience, and those costs often show up as higher rates to buildings. Even when consumption declines, fixed and non-energy charges can continue to rise. That makes it even more important for boards to understand what's driving their utility bills so they can budget accurately and plan ahead."

Q: What is FirstService Energy 360º and how can boards leverage the program?

"FirstService Energy 360º is a holistic, expert-driven energy management solution that provides boards and management teams with the data, insights, and confidence they need to effectively manage their high-rises.

The program brings together energy savings opportunities, building energy reports, compliance guidance, utility budget consultation and auditing, energy procurement, and expert advisory support, all in one subscription. Boards can leverage clear data and expert insights to make confident decisions that can significantly impact long-term budgets and building performance."

"Renewable energy is becoming more accessible as costs continue to decline and incentives expand."

Kelly Dougherty, president of FirstService Energy

As energy management continues to evolve, having the right strategy and expertise can help boards make more informed decisions for their communities.

Contact FirstService Residential today to learn how FirstService Energy can help your high-rise optimize performance, manage costs, and plan confidently for the future.

This information is provided for general informational purposes only and is not intended to constitute, and should not be relied upon as, legal, regulatory, financial, or operational advice, or as a representation or guarantee of any specific services, capabilities, or outcomes. Property management needs, regulatory requirements, market conditions, and available services vary by jurisdiction, property type, and community. FirstService Residential provides services through locally based affiliates and associates, and services and results may vary by community, region, contractual terms, and applicable law.