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