Scaling Deep Energy Retrofits Across Existing Building Portfolios
Victor Olgyay, AIAOctober 24th 2013
Opportunities:• Creates profit and jobs• Environmental stewardship• Strengthen national security• Climate and health
What we get
Design is how it works
A lot of cost effective energy efficiency is available
Deep EnergyRetrofits….
Achieve 50% or more reduction in energy use – Large energy savings
Capture all cost effective energy savings – improved project economics
Provide value beyond energy cost savings (VBECS)
Drive long-term improvement in the building stock to enable a modern, renewables-based electricity system
Trade Secrets for Cost Effective Deep Retrofits
1. Pursue the right steps in the right order2. Right-time the retrofit3. Define a business-as-usual baseline to account for avoided
capital costs4. Bundle measures5. Quantify the value beyond energy cost savings
Pursue the Right Steps in the Right Order
(1) Set Quantifiable Goals
(2) Define End-User Needs(3) Understand Existing
Conditions(4) Reduce Loads
(5) Select Appropriate & Efficient Technology
(6) Find Synergies
(7) Optimize Controls
(8) Incorporate Renewables(9) Realize the Intended
Design
Most people start here!
http://newbuildings.org/meta-report-search-deep-energy-savings
RESULTS FROM 50 DEEP RETROFITS
Byron Rogers
Predicted Post Retrofit Performance
• 28-38 kBtu/ft2-yr
• 60-70% reduction from 2009 use
• Efficiency alone, no renewables
Empire State
• Save 38% of energy use with a 3-year payback
• Remanufacturing 6,500 windows onsite into super windows
• Installing better lights and equipment
• Envelope improvements and reduced internal loads allowed for a smaller cooling system
Strategic Energy Analysis
Bundling Parallel Paths
“We can do some of the measures in all of the buildings, and we can do all of the measures in some of the buildings.” – Blake
Herrschaft, RMI Engineer
Crafting a Building Portfolio Efficiency Strategy
• Leave No Building Behind
• Vaccination • Deep Retrofits /
Disposition• Innovation • New Construction• Renewable Energy
• Policies• Energy Measures• Building Projects• Financing
• GET THE DATA!• Portfolio Types:
• Similar Buildings
• Unique Buildings
• Collocated buildings
PORTFOLIO ANALYSIS PROCESS
• Divide into subsets by type, size, etc. • Collect additional data, confirm general conditions, perform select
investigations, establish technical potential• Perform high-level portfolio assessment• Identify type and size of opportunity• Utilize low-cost workflow analysis tools; develop implementation options• Create plan to implement options to meet economic and energy targets• Carry out strategic plan; verify, modify, communicate success
GroupBenchmark
TriageInformScalePlan
Implement
A VARIETY OF APPROACHES FOR DIFFERENT CIRCUMSTANCES
• Leave No Building Behind
• Vaccination
• Deep Retrofits / Disposition
• Innovation
• New Construction
• Renewable Energy
What policies/processes help or hinder deep energy efficiency?
Which primary EMs can I implement for broad replication and deepest savings?
When should I schedule deep retrofits and how do portfolio transactions affect
that?
How will next generation technologies change my strategy over time?
What goals should we set for new construction?
Can we achieve net zero carbon through renewable energy? Why not do all
renewable and call it done?
All Bldgs
Building 1
Building 2
Building 3
Building 4
Building 5
“LNBB” – EMS + Continuous Cx & Ongoing Corporate/Institutional Policies
Vaccination – Broadcast Targeted Energy Measures and Upgrades Across Many Buildings
Deep Energy Retrofits – Go Deep at the Right Time (dashed red line is a virtual deep
energy retrofit)
Innovation – Pilot Projects
New Construction – Super-Efficient Construction Standards and IPD Approach
Clean Energy – On-Site Renewable Energy Installations
USE TIME WHEN MAPPING A BUILDING PORTFOLIO STRATEGY
C a l e n d a r Ye a r s
Bu
ild
ing
In
ve
nto
ry
An integrated approach to energy upgrades
Retrocommissioning
Typ
ical U
S O
ffice B
uild
ing
Base L
oad
5–15%Load Reductions
5–30% HVAC Upgrade
10-25%
70%
TIME TO ACT !
1. Planned capital improvement
2. Major system replacement
3. Major envelope project
4. Code upgrades
5. New owner / refinancing
6. New use / occupancy type
7. Building greening
8. Large utility incentives
9. Mitigating an “energy hog”
Align analysis with detail required
Tool Approach Data
Bench-mark
Opportun-ities
Measures
Costing
Calibration
Custom Simulation
M&V
EnergyStar Adjusted metric
Utility bills
FirstView Regression Utility bills, temp data
LEAN Regression Utility bills, temp data
Retro-ficiency
No/low-touch, in-house algorithms
Utility bills, basic site info
simuwatt Med-touch, EnergyPlus simulation model
Utility bills, site walk through, floor plans
Bundle Internal Policies
PORTFOLIOS WORK AS SYSTEMS
Bundle Measures
Bundle Buildings
Bundle FinancingIncentives, loans, and purchase agreements
Optimize, don’t itemize
Spread costs, reduce risk, plan ahead
Institutional Change: What motivates?
Building Projects
Spread costs,
reduce risk, plan
ahead with right
timing.
PROJECT COST SAVINGS SIMPLE PAYBACK
Building A $180,000 $30,000 6 yrs.
Building B $110,000 $9,2000 12 yrs.
Building C $95,000 $8,8000 11 yrs.
Building D $220,000 $11,000 20 yrs.
$209,000 $59,000 10 yrs.
BUNDLE BUILDINGS FOR BROAD SAVINGS
Lighting
Envelope
Plug Loads / Occupa
nt Behavio
r
HVAC
Controls
CAPITALIZE ON
SYNERGIES
• downsizing or eliminating mechanical and other systems - and therefore avoiding capital costs
• allowing for more cost-effective measures to “finance” measures that that provide value beyond energy cost savings (VBECS)
BUNDLE MEASURESFOR DEEPER SAVINGS WITH MORE BENEFITS
AT&T Administrative Buildings:• Currently use the same amount of energy as 10 Empire State
Buildings• Emit 0.15% of the total US office buildings carbon emissions. • Can save $6.2 million annually for a 16% IRR over 5 years.• Can achieve 38% energy cost savings from 2008 levels.• Portfolio wide these strategies would produce $25 million annual
ecs
DRIVING DEEP ENERGY SAVINGS ACROSS COMMERCIAL REAL ESTATE
U.S. AIR FORCE BASE RETAIL CENTERS
83 retail centers, 23 in subset (mixed-climate, 100,000+ ft2)• 83 triaged• 2 detailed assessments to inform
strategic plan for 23Example Area (sf)
Retail 83,000
Stock floor 25,000
Back of house 5,000
Food court 5,000
Dining area 6,500
Corridors 9,000
ARIZONA STATE UNIVERSITY CAN ROADMAP(CURRENT 2012 - 2025)ElectricityHow do we design a connected system that allows a community or campus to find balance?
Facility ManagementHow can facility managers radically reduce energy and water consumption for the long term within the bounds of a limited budget?
TransportationHow do we get people excited about not driving cars?
PedagogyWhat does an integrative curriculum look like across campus? How can a university foster innovation from within?
Institutional PolicyWhat stands in the way of achievement, and how can barriers be overcome to enable transformational progress?
ONE PATH TO CLIMATE NEUTRALITY
2012 2015 2020 2025 2030 20350
50000
100000
150000
200000
250000
300000
350000
400000
450000
Projected GHG emissions
GH
G e
mis
sio
ns
Baseline Savings
Energy Efficiency
Transportation Efficiency
Renewable Energy
PORTFOLIO APPROACH - SMALL RETAIL
BUILD THE INVESTMENT CASE BY INTEGRATING WITH CORE BUSINESS VALUES..
Values beyond energy cost savings - (VBECS)
VALUES BEYOND ENERGY COST SAVINGS
Graphic from “The Economics of Biophilia,” Terrapin Bright Green LLC, 2012
VBECS: HOW DEEP RETROFITS CREATE VALUE
1. Reduced energy operating costs and carbon emissions
2. New equipment with longer lifetimes & less maintenance
3. A more attractive and comfortable (thermally, visually, etc) working space with better indoor air quality and connection to the outdoors
4. Sustainability/green building ratings or certifications
5. Higher occupant awareness of building performance
Value This value is created through…
Reduction in Costs
Lower utility costs Lower costs to maintain & replace equip. Lower health cost (absenteeism, health care) Lower employee recruiting and churn costs
Revenue Growth
Higher occupancy rates Higher rents Increased employee productivity Improved marketing & sales
Improved Reputation and Leadership
Recruiting best employees or tenants Employee/tenant satisfaction and retention Public relations/brand management Retain “social license” to operate
Compliance with Internal & External Policies & Initiatives
Meeting the needs of Corporate Social Responsibility, Carbon Disclosure Project, etc
Meeting responsible investment fund requirements Meeting Securities & Exchange Commission needs
Reduced Risk to Future Earnings
Reduced risk to reputation Limit exposure to energy/water price volatility Overall reduced potential loss of value due to
functional obsolescence Reduced legal risks – sick building syndrome, mold
claims, etc
DEEP RETROFITS RESULT IN:
Building the Business Case
RMI Building Energy RetroFit Guides
Advanced Energy Retrofit Guideswww1.eere.energy.gov/buildings/commercial/aerg.html
http://info.aia.org/aia/deep-energy-retrofits.cfm