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Normalization methodologies in Scaler

Understand how Scaler normalizes energy data to enable fair comparisons across assets, years, and portfolios, and how different normalization approaches are applied in analytics and reporting.

Purpose of this article

This article explains the normalization methodologies used in Scaler, including what each normalization adjusts for, when normalization is applied, and how normalized values should be interpreted in analytics and reporting.


What is normalization in Scaler?

Normalization in Scaler adjusts reported (energy) consumption to a common basis so that performance can be compared fairly across assets and time periods.

Normalization:

  • Does not create new consumption data
  • Scales existing, reported values
  • Accounts for structural differences such as time coverage, occupancy, and weather

Normalization is primarily used in:

  • Portfolio and year-over-year analysis
  • Benchmarking and scoring
  • GRESB-aligned analytics
⚠️

Normalization adjusts reported data. It does not estimate missing consumption.


Types of normalization in Scaler

Scaler uses two categories of normalization:

  1. Temporal alignment (calendarized data) - Adjusts consumption to match standard time periods
    1. All resources: Energy, water, waste
  1. Structural normalization - Adjusts for operational differences (occupancy, weather)
    1. Currently only energy

Temporal alignment

Purpose: Converts consumption from non-standard time periods into standard calendar periods (months, quarters, years).

How it works:

When meter readings don't align with calendar boundaries (e.g., billing periods from January 15 to February 15), Scaler:

  1. Calculates average daily consumption over the interval
  1. Allocates this to each month proportionally based on number of days

Example:

A meter reading covers December 15, 2024 to January 15, 2025 (32 days total).

DAILY_AVERAGE = REPORTED_CONSUMPTION / 32 DECEMBER_CONSUMPTION = DAILY_AVERAGE × 17 (days in December) JANUARY_CONSUMPTION = DAILY_AVERAGE × 15 (days in January)

Where temporal alignment is applied:

  • Analytics Portal graphs (when viewing monthly data or annual reporting years)
  • Generated reports (GRESB, GRI, etc.)
  • Data exports (Monthly Meter Consumption export)

Structural normalizations

Structural normalizations adjust consumption to account for operational differences between assets or time periods.


Time-based normalization

Purpose: Extrapolates consumption to represent a full calendar year.

Where used: Portfolio-level Energy Use Intensity and Total Consumption graphs.

Method:

  • For EUI:
    • Normalized EUI = Reported Consumption / % of Year with Data / Active Area
  • For Total Consumption:
    • Normalized Value = Reported Consumption / % of Year with Data

Alignment: GRESB outlier methodology (resource-level coverage).


Occupancy-based normalization

Purpose: Adjusts consumption to reflect 100% occupancy.

Where used: Portfolio-level Energy Use Intensity and Total Consumption graphs.

Method:

  • For EUI:
    • Normalized EUI = Reported Consumption / Average Occupancy Rate / Active Area
  • For Total Consumption:
    • Normalized Value = Reported Consumption / Average Occupancy Rate

Alignment: GRESB outlier methodology.


Time + occupancy-based normalization

Purpose: Adjusts for both time and occupancy.

Where used: Portfolio-level energy graphs.

Method:

  • For EUI:
    • Reported Consumption / % of Year with Data / Average Occupancy Rate / Active Area
  • For Total Consumption:
    • Reported Consumption / % of Year with Data / Average Occupancy Rate

Alignment: GRESB outlier methodology.


Weather-based normalization

Purpose: Adjusts energy use to account for weather anomalies, so consumption can be compared across years and across assets in different climates.

Where used:

  • Portfolio-level energy graphs (View > Weather-based normalization)
  • When Weather Normalization is enabled in Portfolio Settings

[Screenshot: Analytics Portal energy graph with the View dropdown open, showing the Weather-based normalization option highlighted — crop to the dropdown plus the graph title for context.]

Method: Scales reported consumption by the ratio of long-term average degree days to the current year's degree days, combining heating and cooling into a single ratio.

Formula:

Normalized Consumption = Reported Consumption × (Average HDD + Average CDD) / (Year HDD + Year CDD)

The same ratio is applied uniformly to every asset assigned to a given weather station, regardless of asset type or HVAC configuration.

ℹ️

The settings table asks for four values per weather station per year because the formula needs both sides of a ratio: Heat and Cooling degree days for that year (the asset's actual weather experience) and Average Heat and Average Cooling degree days (the long-term climate baseline to compare against). Without all four, no ratio can be calculated. All inputs must be in degree-days at the same temperature base (typically 15.5°C or 18°C).

[Screenshot: Portfolio Settings → Normalization tab showing one weather station with all four input rows (Average HDD, Average CDD, Heat degree days, Cooling degree days) populated across multiple years — crop tightly to the table.]

Worked example

Brussels weather station, 2024 input values (degree-days, base 18°C):

  • Average HDD: 2,800
  • Average CDD: 50
  • Year HDD: 3,200 (colder winter than average)
  • Year CDD: 30 (cooler summer than average)

Ratio = (2,800 + 50) / (3,200 + 30) = 2,850 / 3,230 = 0.88

For an asset on the Brussels station with a reported EUI of 150 kWh/m²/yr:

Normalized EUI = 150 × 0.88 = 132 kWh/m²/yr

The cold winter pushed actual consumption up. The normalized value reflects what the asset would have used in a typical year, isolating underlying performance from weather effects. The same 0.88 multiplier applies to every asset on the Brussels weather station in 2024.

Application: Applied at the asset level when Allocated weather station is set under Asset Details.

[Screenshot: Asset Details template (spreadsheet view) with the Allocated weather station column highlighted and populated for several assets — crop to the column header plus 5–6 rows.]

Use case: Helps isolate the impact of operational efficiency measures by filtering out weather-driven variability.

Where to source HDD and CDD data: Long-term averages and yearly values are not typically held in client property records. Common sources:

  • degreedays.net - free tier for limited use, paid plans for portfolio-wide access. Station-level data with configurable temperature base.
  • Open-Meteo Historical Weather API - free, no license required. Daily mean temperatures back to 1940 for any latitude and longitude. Year values and long-term averages can both be computed from the same dataset.
  • Eurostat - country-level annual HDD and CDD for EU countries.
  • NOAA NCEI - station-level data for US locations, free.

All four inputs must use the same temperature base. Country-level sources are not suitable for asset-level normalization in countries with multiple climate zones.

Limitations of this approach: The ratio applies a single multiplier to total reported consumption, which implies two simplifications worth understanding:

  1. All energy is treated as weather-sensitive. Much of an asset's consumption is baseload (lighting, plug load, ventilation, lifts, server rooms) that does not vary with outdoor temperature. The ratio scales this baseload portion as well, which overstates the weather effect for assets with high non-HVAC load such as data centres, cold storage, or mixed-use buildings.
  1. Heating and cooling are combined into a single ratio. A year with unusually low HDD and unusually high CDD can produce a ratio close to 1 and mask real weather-driven changes. Separate ratios for heating-sensitive and cooling-sensitive consumption are more accurate but require splitting consumption into temperature-dependent components first.

Normalized values are best read as directional indicators of underlying performance rather than precise weather-adjusted consumption, especially for asset types where HVAC is not the dominant load.


Enabling weather-based normalization

  1. Go to Data Collection Portal → Portfolio → Settings → Normalization.
  1. Toggle to Enable weather normalization
  1. Create necessary Weather stations
  1. Populate the four required values per year for each station: Year HDD, Year CDD, Average HDD, and Average CDD. All four must use the same temperature base.
  1. Assign an Allocated weather station to each asset in Asset Details.

Where normalization is applied

Context
Temporal alignment
Occupancy
Time
Weather
Analytics Portal - Default view
Yes*
No
No
No
Analytics Portal - Normalized views
Yes*
Analytics Portal - Estimated view
Yes*
No
No
No
Reports (GRESB, GRI, etc.)
Yes
Depends on report
Depends on report
No
Data exports
Yes
No
No
No

*Analytics Portal applies temporal alignment when viewing monthly graphs or when meter reading periods don't align with the selected reporting year.

⚠️

Default/Normalized/Estimated views = dropdown in Analytics Portal graphs only. Structural normalizations (occupancy/time/weather) are only available through the Analytics Portal View dropdown, not in exports or raw data downloads.


Normalization in reports and exports

Normalization is also applied in generated reports and downloadable exports to ensure alignment with the timeframe of the report or reporting framework.

Monthly Meter Consumption export

File: Found in Data Collection Portal → Portfolio → Meter List → Download

Column: actual_monthly_consumption

Method:

When consumption spans multiple months (e.g., quarterly or annual meter readings), Scaler:

  • Calculates average daily consumption over the interval.
  • Allocates this to each month proportionally based on number of days.

Report generation normalization

Scenario: You've entered annual consumption but generate a quarterly report.

Scaler's Approach:

Scaler uses the daily average from the interval and applies it proportionally to each sub-period in the report (e.g., quarters, months).


Ownership-adjusted normalization

Use case: An asset's data overlaps with the reporting year but is only owned for part of it.

Scaler's Approach:

  • Consumption values are prorated to reflect only the days during the ownership window.
  • This ensures only in-scope data is included for frameworks like GRESB.
  • For like-for-like comparisons, clients may override ownership settings to retain values.

How normalization differs from estimation

Normalization
Estimation
Adjusts reported consumption
Fills missing or unreported consumption
Scales existing values
Creates modelled values where data is missing
Uses structural factors (time, occupancy, weather)
Uses historical consumption patterns
Focused on comparability
Focused on data continuity
Results in normalized values
Results in estimated values

See How Scaler estimates missing energy meter data for details on estimation logic and limitations.


Why normalization matters

Normalization enables apples-to-apples comparison across:

  • Assets with partial-year data
  • Assets with variable occupancy
  • Assets in different climates
  • Periods impacted by abnormal weather

By controlling for these variables, Scaler provides clearer insights into operational efficiency and performance trends.

Notion image

Additional resources

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