besf building renewal_021815
TRANSCRIPT
1 NORTHWEST ENERGY EFFICIENCY ALLIANCE
Building Renewal: Making the Business Case for Deep Energy Retrofits Building Energy Simulation Forum February 18, 2015
Building Renewal: Making the Business Case for Deep Energy Retrofits
Building Renewal Tool An easy to use, integrated design technical and financial analysis that improves energy performance by over 35% Target Market Primarily leased commercial office buildings over 20,000 SF
Target Audience Building owners and property managers
Building Renewal: Making the Business Case for Deep Energy Retrofits
Vision A value creation investment with compelling financial returns to gain competitive advantage
Building Renewal: Making the Business Case for Deep Energy Retrofits
Value Proposition Repositioning (Non-energy) benefits: Increased occupancy rate (tenant comfort & health – less churn) Increased rental rates (tenant comfort & health – productivity) Total asset value (from all benefits)
Energy benefits: CUP downsized Reduced operational costs
Building Renewal: Making the Business Case for Deep Energy Retrofits
Repositioning Obsolescence/Depreciation Curve-”avoided cost” Classification attributes § Location § Access (freeway, public transportation) § Parking § Nearby and/or on-site amenities § Ceiling heights § Floor load capacity
§ ------------------------------- § Value creation § (3 controllable parts)
1) Services § IT & backup power § Security and life safety § Elevator quantity and speed § HVAC capacity 2) Aesthetics Common Area Improvements
3) Tenant comfort & health
Building Renewal: Making the Business Case for Deep Energy Retrofits
§ Future proofing
“Core Investment Duration”/ 10 year implementation/ Classification duration Intervention points POS Refinance Management contract expiration Major tenant leaving Low occupancy rate Major systems failure Major capital investment 30 year CUP lifespan 20 year caulking lifespan
EBR Demonstration Buildings
§ Missoula 52,000 SF - 6 stories Energy savings = 67%
EBR Demonstration Buildings
§ Boise
31,321SF - 3 stories Energy savings = 39%
EBR Demonstration Buildings
§ Seattle
674,775 SF - 40 stories Energy savings = 42%
EBR Demonstration Buildings
Portland – Lloyd 700 building
245,115 SF -16 stories Energy savings = 41%
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Building Renewal: Making the Business Case for Deep Energy Retrofits
Modeling Challenges § Model Existing Building with Deficiencies
§ Capture “Integrated Design” Performance
§ Model Integrated Measure Packages
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Building Renewal: Making the Business Case for Deep Energy Retrofits
Existing Buildings: Deficiencies
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Building Renewal: Making the Business Case for Deep Energy Retrofits
Existing Buildings: Deficiencies
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Building Renewal: Making the Business Case for Deep Energy Retrofits
Existing Buildings: Actual Operation
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Building Renewal: Making the Business Case for Deep Energy Retrofits
Existing Buildings: Actual Operation
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Building Renewal: Making the Business Case for Deep Energy Retrofits
Existing Buildings: Interval Meter Data
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Building Renewal: Making the Business Case for Deep Energy Retrofits
Existing Buildings: Interval Meter Data
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Building Renewal: Making the Business Case for Deep Energy Retrofits
Existing Buildings: Model Calibration
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Building Renewal: Making the Business Case for Deep Energy Retrofits
Existing Buildings: Model Calibration
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Building Renewal: Making the Business Case for Deep Energy Retrofits
Existing Buildings: Model Calibration
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Building Renewal: Making the Business Case for Deep Energy Retrofits
Existing Buildings: Model Calibration
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Building Renewal: Making the Business Case for Deep Energy Retrofits
Existing Buildings: Model Calibration
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Building Renewal: Making the Business Case for Deep Energy Retrofits
Integrated Design: Modeling Loads
Integrated design synthesizes climate, use, loads and systems resul5ng in a more comfortable and produc5ve interior environment, and a building that is significantly more energy-‐efficient.
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Building Renewal: Making the Business Case for Deep Energy Retrofits
Integrated Design: Modeling Loads
Annual and Peak Cooling Loads
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Building Renewal: Making the Business Case for Deep Energy Retrofits
Integrated Design: Modeling Loads
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Building Renewal: Making the Business Case for Deep Energy Retrofits
Integrated Design: Modeling Loads
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Building Renewal: Making the Business Case for Deep Energy Retrofits
Integrated Design: Modeling Loads
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Building Renewal: Making the Business Case for Deep Energy Retrofits
Integrated Design: Modeling Loads
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Building Renewal: Making the Business Case for Deep Energy Retrofits
Integrated Measure Packages
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Building Renewal: Making the Business Case for Deep Energy Retrofits
Integrated Measure Packages
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Building Renewal: Making the Business Case for Deep Energy Retrofits
Integrated Measure Packages
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Building Renewal: Making the Business Case for Deep Energy Retrofits
Integrated Measure Packages
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Building Renewal: Making the Business Case for Deep Energy Retrofits
Demonstration project teams, included: § NEEA staff § Mike Hatten, Solarc § Integrated Design Lab (UW & UI) staff § Molly McCabe, HaydenTanner
(commercial real estate consultant) to deliver comprehensive technical and business analysis to support investment in building renewal
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Building Renewal: Making the Business Case for Deep Energy Retrofits
Demonstration project teams delivered
§ detailed audits and analysis § project solutions, based upon in depth
understanding
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Building Renewal: Making the Business Case for Deep Energy Retrofits
§ Challenge - going beyond the demo projects
§ Take lessons learned from demonstration projects (and collective team experience)
§ Develop a unique, user-friendly project tool, able to quickly estimate the value created by a building renewal project
§ Provide enough credible information for building owners to take the next steps
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Building Renewal: Making the Business Case for Deep Energy Retrofits
§ Challenge - Tool Deliverables § A business case/investment roadmap
§ Deep retrofit project scope and estimates of § Project cost § Energy savings § Energy expense savings § O&M savings § Rent differential § Investment returns
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Building Renewal: Making the Business Case for Deep Energy Retrofits
§ Solution – Tool Concept § Limited set of efficiency measures with wide
applicability and the most significant energy savings § Integrated design orientation § Measure intent, performance criteria and design
considerations—support project team creativity § Prototype buildings to facilitate application of the
measures § Promote deep retrofit best practices: O&M practices,
commissioning, tenant purchasing, M&V protocols
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Building Renewal: Making the Business Case for Deep Energy Retrofits
§ Solution – User-Friendly Front End § QuickScreen process, to rapidly address the real
estate strategic fit of building renewal § Essential questions about the building, including
current energy use, building characteristics and retrofit preferences
§ Necessary questions to estimate building renewal value creation: vacancy, lease rollover, rents and potential rent differential, targeted investment returns
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QuickScreen Questions
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QuickScreen Report
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QuickScreen Report
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Building Renewal: Making the Business Case for Deep Energy Retrofits
§ Solution – Tool Analysis and Outputs § Comparative analysis
§ baseline building § the chosen package of energy efficiency measures, and § a package of measures to maximize deep retrofit savings
§ Provide estimates of EUI, percentage energy savings, energy expense savings and percentage, and project cost
§ Slider controls to adjust certain project parameters, such as rent differential and project soft costs
§ An 8 page report will be generated, downloadable and printable as a PDF, providing a summary description of the proposed project and its value creation potential
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Comparative Analysis
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Report Excerpt – The Opportunity
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Report Excerpt – Project Scope
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Report Excerpt – Key Indicators
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Building Renewal: Making the Business Case for Deep Energy Retrofits
§ Solution – Supporting Materials § The tool will generate a package of project-specific
measure descriptions, for use by a project team § Detailed descriptions of best practices essential to
achieve and maintain project performance § A building renewal web site to inform development of
a project specific building renewal strategy and support use of the building renewal tool
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Building Renewal: Making the Business Case for Deep Energy Retrofits
§ Thank you!
§ Attendees, BESF, ETO, AAT
§ NEEA Building Renewal Tool
§ Rob Curry (NEEA) – Vision, Value proposition, and EBR Pilot’s
§ Mike Hatten (Solarc) – Building energy computer simulations
§ Jeff Cole (Konstrukt) – BR Tool overview
§ Questions and answers