The financial case for energy efficiency

“The report, Building the Future, has piled pressure on Ministers to act to fix Britain’s badly insulated homes. The report shows that a much more ambitious energy efficiency investment programme would pay for itself and significantly boost the UK economy.

The programme would add £13.9 billion annually to the UK economy by 2030, with GDP boosted by £3.20 for every £1 invested by the Government. A national scheme to make homes super-energy efficient would result in £8.6 billion in energy savings per year by 2030, an average energy saving of £372 per household. After taking into account loan repayments this would result in £4.95 billion in financial savings per year for Britain’s households.”

Solar Energy Storage Added to Eight California Schools

Burton School District, in the heart of California’s sun-drenched San Joaquin Valley, will also house combined solar and energy storage systems[…]

Source: www.pvsolarreport.com

>”In the commercial sector, the cost of energy storage is now low enough that businesses are finding it a useful addition to solar. Generally, businesses’ peak energy consumption is when electricity is most expensive, which makes energy storage especially useful.

As the cost of energy storage continues to decline, large solar companies have been integrating it into their product offerings to complement a solar system. […]

The district will install solar and DemandLogic to generate and store its own clean, renewable electricity at eight schools. This will be the largest combined solar and energy storage installation SolarCity has undertaken to date. It will allow the district schools to reduce energy costs by using stored electricity to lower peak demand.

SolarCity will install the district’s solar systems and battery storage at eight elementary and middle schools, as well as additional solar generation at a district office. The solar installations will total more than 1.4 MW of capacity, with storage providing an additional 360 kW (720 kWh) of power to reduce peak demand. The new solar systems are expected to save the district more than $1 million over the life of the contracts, and the DemandLogic battery storage systems could save thousands more on demand charges each year.

[…]

The new SolarCity systems are expected to generate 2,300 MWh of solar energy annually, and enough over the life of the contract to power more than 4,000 homes for a year. The solar systems will also offset over 43 million pounds of carbon dioxide and save more than 203 million gallons of water, an especially important environmental benefit in the drought-stricken valley. The entire storage project is expected to be completed by May 2015.”<

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Net Zero Energy Buildings at Zero Cost

The Netherlands has found a way to refurbish existing buildings to net zero energy, within a week, with a 30-year builders’ guarantee and no subsidies.

Source: www.energypost.eu

>”Inside the house, the pounding rain stills to distant murmur. That’s thanks to the triple glazing, points out Ron van Erck, enthusiastic member of Platform31, an innovation programme funded by the Dutch government that brings together different actors for out-of-the-box thinking to crack intractable problems. One of its big successes to date is Energiesprong, an initiative that turns the building market on its head to deliver social housing with zero net energy consumption, i.e. no energy bill, at zero cost to the tenant and with no subsidies to the builder.

Starting off in 2010 with three staff, a €50 million budget and five years to come up with something to make buildings more sustainable, Energiesprong today boasts 45 staff and a deal with 27 housing associations and four big construction companies to refurbish 111,000 houses in the Netherlands. Total investment? €6 billion. The initial focus is social housing, but it’s already looking at the private market, care centres and commercial office buildings too.

How does the plan work? The basic trick is that tenants instead of paying their energy bills, pay a similar amount to the housing corporations that own the houses. With this money, the corporations pay building companies to retrofit the houses, which after renovation have net zero energy costs. The building companies have for this project developed ‘industrialised’ renovation procedures that are highly cost-effective. One important difference with existing renovation projects is that all elements that are needed for a successful move to zero-energy housing are brought together  in one plan.

Energy Post’s Sonja van Renssen met with manager Jasper van den Munckhof, to understand exactly what Energiesprong does, how it does it and why it will succeed – in the Netherlands and elsewhere.

Q: What was your starting point?

A: We started off with what we spend. The household energy bill in the Netherlands is about €13 billion. This money is available. If you spent it on a mortgage or payback on a loan of about 30 years [instead of energy], you have €225 billion to invest in the Dutch housing stock. This is substantial money: €30-40,000 per house to make it energy neutral.

“Retrofit wasn’t interesting – unless you were rich – but using the energy bill to fund it, no one had thought of that! A building and its energy system were developed as parallel, complementary but not integrated, entities.”

-Jan Kamphuis, BJW Wonen, a one-stop-shop for retrofits inspired by Energiesprong

The trick is, how to get this money flowing. We tried to imagine what owners would need to start investing. They buy kitchens and they don’t see this as an investment but good for their family. You need to get this focus on people and how they buy stuff, how they accept things. If you lose that focus and think it’s about financial arrangements, you won’t find a solution.

Q: So what will make people spend money on retrofits?

A: It needs to be very well done, like if they buy a car, they buy a decent one. It has to be fast – the problem with retrofitting (vs. buying new stuff) is that it’s usually a lot of trouble, dust and hassle. So we said one, the retrofits have to be done within a week. Two, it has to be affordable: ideally the cost to the tenant before and after should be equal. That means the energy bill converted to the mortgage or extra rent has to cover the full cost of the retrofit. Three, it has to be attractive. It needs to be something you see. […]”<

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Efficient HVAC Systems

Gallery

This gallery contains 15 photos.

Originally posted on Energy Systems & Sustainable Living:
Heating, Ventilation and Air Conditioning systems (HVAC) controls the indoor climate by adding or extracting heat and adding or removing mass (e.g. water vapour and dust). To combat summer heat and winter…

Multifamily Building Energy Efficiency: SLEEC Financing

This winter, ACEEE, in partnership with Energi Insurance Services, will host a second gathering of select members of the Small Lenders Energy Efficiency Community (SLEEC) in Washington, D.C. The initial SLEEC convening in October 2013 brought together small- to medium-size lenders to discuss strategies for expanding activity in the market for energy efficiency financing. Building off the success of that first meeting, the second SLEEC gathering will focus exclusively on financing in the multifamily sector […]

Source: aceee.org

>” […] The goal of the upcoming SLEEC meeting is to discuss how recent developments inform the lender perspective on the size, attractiveness, and viability of the finance market for multifamily efficiency. We chose to address multifamily this year because potential savings are phenomenal at an estimated $3.4 billion per annum, and multifamily has traditionally been characterized by the label “hard to reach” due to significant barriers to entry. Single-family residential, large commercial, and MUSH (municipal, universities, schools, and hospitals) markets pose fewer barriers and have therefore been easier to approach, while multifamily is a more complex market posing greater obstacles.

The first and most commonly cited obstacle is known as the split-incentive problem: Landlords and building owners don’t always have an incentive to pursue energy efficiency improvements since their tenants would be the ones benefitting from reductions in energy bills. The next most bemoaned roadblocks are a lack of information and lack of available capital. Landlords and owners are experts at running their buildings, but may be in the dark on energy efficiency. Utilities and many loan agencies, while knowledgeable about energy efficiency, lack experience interacting with tenants. The resulting information gap inhibits energy efficiency projects from getting off the ground. This problem is exacerbated by a lack of capital, especially in the affordable housing market, where many buildings owners hold 30-year mortgages on their property with only one refinancing opportunity after 15 years. Unless building owners and potential lenders can capitalize on this small window, many projects would not have another opportunity to finance efficiency improvements for another 15 years.

Despite these barriers, there are a number of successful initiatives that are poised for impact. Perhaps the most successful is Energy Savers, a Chicago-based partnership between Elevate Energy and the Community Investment Corporation (CIC) that has retrofitted 17,500 apartments since 2008.  […] Innovative programs such as these are paving the way for energy efficiency in the multifamily housing market.

A perceived lack of capital may be attributable to issues surrounding the valuation of energy efficiency from a building owner’s perspective that manifests as low demand. […] “<

 

See on Scoop.itGreen Building Design – Architecture & Engineering

Lighting Controls in Buildings, Demand Management and Microgrid Development

Lighting control systems can help microgrids shed load, improve demand response, use resources efficiently, and offer greater overall reliability.

Source: energyefficiencymarkets.com

>” […] Lighting Control Facilitates Load-shed Strategies

Load shed, or the ability to quickly reduce electricity use during peak periods, is critical to ensuring microgrid reliability. Because lighting uses a considerable proportion of building peak electrical loads (30% of peak electricity),1 and because reduced light levels deliver immediate reductions in electricity, lighting control is one of the simplest and most predictable demand response solutions.

The reduction of lighting load also provides a reduction in HVAC cooling load during the summer, which is the most common peak electrical period.  Furthermore, since dimming is typically unobtrusive when it is executed over a period of time (as little as 10 seconds), lighting control is a viable option for immediate emergency response.

Dimming as a load shed strategy is highly effective because the human visual system has the ability to accommodate a wide variety of light levels with minimal effect on the occupants2,3.  When a demand reduction is required a gradual dimming of electric lighting can reduce light levels by 35 percent before 20 percent of the occupants attempt to intervene.  Response time is essentially instantaneous, typically has little impact on occupant comfort, and demand savings from lighting are more predictable than those from HVAC response.

Light management systems have the capability to automatically trigger a demand response event from a utility signal or from time clock scheduling. Therefore, a predictable and effective demand response strategy can be automatically implemented while going virtually unnoticed to the building occupants.

Energy codes, standards, and green building certifications such as ASHRAE (American Society of Heating, Refrigerating, and Air Conditioning Engineers) 90.1, IECC (International Energy Conservation Code), California Title 24, ASHRAE 189, IgCC (International Green Construction Code), or LEED (Leadership in Energy and Environmental Design) now include lighting controls as a part of a whole-building energy strategy.

There are subtle differences for each code/standard/certification, but some general requirements and/or credits include: required lighting control for most areas (manual or automatic), automatic lighting shut-off, some automatic receptacle shut-off, daylight controls for daylit spaces, automatic shut-off of exterior lighting during daytime hours, and various levels of occupancy/vacancy control. As a result of buildings updating their basic lighting control infrastructure to meet code, they are increasingly becoming capable of connecting to a microgrid, without the need for additional significant investments.

[…]”<

See on Scoop.itGreen Building Operations – Systems & Controls, Maintenance & Commissioning

BEMS for Smaller Buildings $6 Billion Growth from 2014 to 2022

The market for building energy management systems (BEMS) for small and medium-sized commercial buildings is expanding as building owners and managers demand more energy savings and easier ways to manage energy use in their facilities, notes Navigant Research.

Source: www.achrnews.com

>” […]“Lower expenditures on energy management in the small and medium-sized building market, along with the lower penetration of advanced controls and building management systems, has limited the penetration of BEMS in this sector,” said Noah Goldstein, research director with Navigant Research. “Given the increasing importance of energy savings, however, BEMS are poised to be a tool that enables savings in both cost and carbon emissions in small and medium buildings.”

The most rapid growth in the BEMS market for smaller buildings, according to the report, is expected to occur in Europe and Asia Pacific, where new construction and regulation are promoting the installation of BEMS equipment and in turn creating demand for associated services and software. In the North American market, BEMS sales are expected to be concentrated in software, driven by utility and regulatory initiatives that promote energy efficiency and building energy reporting. […]”<

 

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Electric Vehicle Market – Nissan Tests “Demand Response” Energy Management System

Nissan is assessing the potential of electric vehicles in energy management systems. […]  is participating in the “demand response” energy supply and demand system testing together with businesses and government authorities in Japan.

Source: green.autoblog.com

>”[…]  Demand response is a strategy to make power grids more efficient by modifying consumers’ power consumption in consideration of available energy supply. Since the Great East Japan Earthquake in March 2011 the supply and demand of electricity during peak use hours in Japan has drawn attention. Under the demand response scheme, power companies request aggregators* to use energy conservation measures, and they are compensated for the electricity that they save.

Usually when energy-saving is requested consumers may respond by moderating their use of air conditioning and lighting. However, by using the storage capacity of electric vehicles and Vehicle to Home (V2H) systems, consumers can reduce their use of power at peak times without turning off lights and appliances. This is particularly useful in commercial establishments where it is difficult to turn power off to save electricity.

The demand response scheme involves assessing the usefulness of energy-saving measures using V2H systems during peak-use periods and analyzing the impact of monetary incentives on business. For example, the testing involves a LEAF and LEAF to Home system which is connected to power a Nissan dealer’s lighting system during regular business hours using stored battery energy. This reduces electricity demand on the power grid. The aggregator is then compensated for the equivalent of the total amount of electricity that is saved. Two or three tests per month will be conducted on designated days for three hours’ each time sometime between 8:00 a.m. to 8:00 p.m. from October 2014 through January 2015.

Effective use of renewable energy and improvements in the efficiency of power generation facilities will enable better energy management in the future and help reduce environmental impact. Field tests using EVs’ high-capacity batteries that are being conducted globally are proving their effectiveness in energy management. Additionally, if similar compensation schemes for energy-saving activities were applied to EV owners it could accelerate the wider adoption of EVs and reduce society’s carbon footprint.

Nissan has sold more than 142,000 LEAFs globally since launch. The Nissan LEAF’s power storage capability in its onboard batteries, coupled with the LEAF to Home power supply system, is proving attractive to many customers. As the leader in Zero Emissions, Nissan is promoting the adoption of EVs to help build a zero-emission society in the future. Along with these energy management field tests, Nissan is actively creating new value through the use of EVs’ battery power storage capability and continuing to promote initiatives that will help realize a sustainable low-carbon society.

* Aggregators refers to businesses that coordinate two or more consumers (e.g. plants and offices) and trade with utility companies the total amount of the electricity they have succeeded in curbing.”<

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Energy Management Standard ISO 50001: Case Studies Document Energy And Cost Savings For N/A Industrial Plants

Three North American industrial plants that recently deployed energy management systems (EnMS) are highlighted in new case studies from the Global…

Source: www.plantautomation.com

>”Washington /PRNewswire / – Three North American industrial plants that recently deployed energy management systems (EnMS) are highlighted in new case studies from the Global Superior Energy Performance (GSEP) Energy Management Working Group (EMWG). These latest entries in the growing GSEP series explain how two Canadian plants, IBM and Lincoln Electric, and one U.S. plant, HARBEC, Inc., deployed ISO-compliant systems to manage their energy more efficiently while boosting competitiveness. GSEP, an initiative of the Clean Energy Ministerial, publishes the series in an effort to improve energy efficiency and mitigate carbon emissions around the globe.

U.S. Case Study HARBEC, Inc. improved the energy performance of its specialty plastics manufacturing plant in upstate New York by 16.5%, primarily by managing its combined heat and power unit more efficiently. The plant’s verified conformance with the international energy management standard ISO 50001 and its sustained improvements in energy performance earned HARBEC Platinum certification from the U.S. Superior Energy Performance (SEP) program, administered through the U.S. Department of Energy. […]

The USD$127,000 invested to implement SEP was paid back by the resulting operational energy cost savings within 2.4 years. The EnMS now saves the plant 6 billion Btu (6,300 gigajoules) annually and lowers energy costs by USD$52,000 each year at prevailing energy prices. HARBEC’s real-time automated system continuously monitors plant equipment to sustain and continuously improve energy performance. […]

Canadian Case Studies: (1)  IBM implemented an EnMS at its manufacturing facility in Bromont, Quebec, which helped it to reduce energy consumption by 9.2% and save CAD$550,000 in 2013. The savings came from 36 energy efficiency projects implemented as part of the EnMS. Tool modifications generated approximately 27% of the savings, while heating, ventilation, and air conditioning and exhaust reduction projects generated the other 73%. Equipment throughout the plant is now monitored using dashboards that show real-time energy use. View IBM case study.

With the support of Natural Resources Canada (NRCan), IBM Bromont was certified for conformance with CAN/CSA ISO 50001 in 2013. NRCan’s Canadian Industry Program for Energy Conservation provided plant staff with various energy conservation tools and services that assisted with EnMS development and certification.

(2)  Lincoln Electric became CAN/CSA ISO 50001 certified after implementing an EnMS at its facility in Toronto, Ontario, which manufactures steel welding wire and industrial diesel-driven DC generator welding machines. With the help of NRCan, Lincoln Electric developed an EnMS that reduced the facility’s energy consumption by 22% in 2013. […]

Plant management was initially interested in an EnMS as a means to maintain competitiveness and reduce risks associated with volatile energy prices. The company learned that its successful EnMS implementation owes much to its corporate culture that actively encourages the identification of energy improvements and conservation measures. The plant expects its EnMS to lead to continuous improvement in overall plant energy consumption. […]”<

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California Real Estate Assn’ Educates Members on Building Energy Performance & Benchmarking

In California, brokers are at the heart of every non-residential sale or lease. Can the AIR organization get them on board with benchmarking?

Source: www.greenbiz.com

>”Commercial buildings are some of California’s largest energy- and water-guzzlers. With 58 percent of the state locked in the highest category of drought, many commercial property owners are seeing increased utility bills, and with a new building energy benchmarking and disclosure law on the books, building owners seek energy efficiency solutions as a common-sense way to ease some of the pressure. One key trade association in California, the AIR Commercial Real Estate Association, is taking the lead by educating its members on the benefits of energy efficiency.

AIR, founded in 1960, is a regional commercial real estate brokers association with more than 1,700 members across southern California, and is one of the nation’s largest organizations of its kind. It’s recognized across the U.S. for its ever-expanding library of sample lease forms, which members use to stay updated on industry and lease language trends — several of which now include sustainability. When California’s energy benchmarking law, AB 1103, went into effect in January, AIR responded by creating sample energy disclosure lease and sale addenda (PDF) and began educating its members on these new tools.

Brokers are in the thick of it

The law states that any time a non-residential building owner finances, sells or leases a whole building, the property owner is required to use Energy Star portfolio manager to benchmark the building and provide the Energy Star rating and supporting consumption information to the lender, buyer or tenant in the transaction. As brokers are central to every aspect of a commercial transaction, their participation is essential for the law to have its intended effect. AIR’s lease and sale addenda effectively address these energy disclosure requirements in one document, providing real estate professionals, building owners, tenants and attorneys with a framework template for compliance with the regulation.

Brokers hold the key to increasing stakeholder awareness, potentially boosting compliance rates, benchmarking data quality and ultimately better building performance and energy management — and educating the community about new regulations and tools is essential to unlocking this potential.”<

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