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Sumof Its Parts GREATER THAN THE SUM OF ITS PARTS THE CASE FOR A SYSTEMS APPROACH TO ENERGY EFFICIENCY Systems Efficiency Initiative Year 1 Report / May 2016 Acknowledgements Thank you to all of the members of the Systems Efficiency Initiative (SEI) Technical Committees, Steering Committee, and other colleagues who contributed to this report. Without their tremendous support and dedication, the Systems Efficiency Initiative would not be possible. Lighting Systems Technical Committee Mechanical Systems Technical Committee Kelly Seeger (Co-Chair), Philips Lighting Drake Erbe (Co-Chair), Airxchange Robert Horner (Co-Chair), Illuminating Engineering Society Richard Lord (Co-Chair), Carrier/United Technologies Corp. Jennifer Amann, American Council for an Energy-Efficient Economy Ron Cosby, Ingersoll Rand/Trane Gabe Arnold, Northeast Energy Efficiency Partnerships Laura Petrillo-Groh, Air-Conditioning, Heating, & Refrigeration Alex Boesenberg, National Electrical Manufacturers Association Institute Jeff Duncan, Duncan Government Strategies, LLC David Posner, Alliance to Save Energy Cheryl English, Acuity Lighting Harvey Sachs, American Council for an Energy-Efficient Economy Pekka Hakkarainen, Lutron Wade Smith, Air Movement and Control Association International Christina Halfpenny, Northeast Energy Efficiency Partnerships Multi Systems Integration Technical Committee Tanya Hernandez, Acuity Lighting Noah Horowitz, Natural Resources Defense Council Peter Horton (Co-Chair), Legrand/Wattstopper Simon Lee, California Energy Commission Itzhak Maor (Co-Chair), Johnson Controls Inc. John Martin, International Association of Lighting Designers Bruce Beihoff, Midwest Energy Research Consortium John Montaño, Bridgers & Paxton Consulting Engineers Joe Borowiec, New York State Energy Research and Development Michael Poplawski, Pacific Northwest National Laboratory Authority Becky Rainer, Eaton/Cooper Lighting Martha Brook, California Energy Commission Helen Sanders, SAGE Electrochromics Richard Brown, Lawrence Berkeley National Laboratory Jay Zhao, Lutron Derek Cowburn, Lumencache Technologies Abigail Daken, U.S. Environmental Protection Agency Market Barriers and Solutions Technical Committee Pierre Delforge, Natural Resources Defense Council Maureen Guttman (Co-Chair), Building Codes Assistance Project Paul Ehrlich, Building Intelligence Group Steve Rosenstock (Co-Chair), Edison Electric Institute Ryan Franks, National Electrical Manufacturers Association Martha Brook, California Energy Commission David Geary, DC Fusion Ryan Colker, National Institute of Building Sciences Jeffrey Harris, Consultant Andrew DeLaski, Appliance Standards Awareness Project Laurie Ten Hope, California Energy Commission Jeff Duncan, Duncan Government Strategies, LLC Dave Hungerford, California Energy Commission Laurie Ten Hope, California Energy Commission Steve Pantano, Collaborative Labeling and Appliance Standards Steve Nadel, American Council for an Energy-Efficient Economy Program Elizabeth Noll, Natural Resources Defense Council Brian Patterson, Emerge Alliance Susan Rochford, Legrand Cindy Regnier, Lawrence Berkeley National Laboratory Patrick Saxton, California Energy Commission Paul Savage, Nextek Power Systems Inc. Rodney Sobin, National Association of State Energy Officials Patrick Saxton, California Energy Commission John Wilson, Energy Foundation Gerald Robinson, Lawrence Berkeley National Laboratory Rodney Sobin, National Association of State Energy Officials Vagelis Vossos, Lawrence Berkeley National Laboratory ii SEI Steering Committee Members Kathryn Clay (Co-Chair), American Gas Association Rich Murphy, American Gas Association Kelly Speakes-Backman (Co-Chair), Alliance to Save Energy Steve Nadel, American Council for an Energy-Efficient Economy Jen Amann, American Council for an Energy-Efficient Economy Elizabeth Noll, Natural Resources Defense Council Karim Amrane, Air-Conditioning, Heating, & Refrigeration Institute Laura Petrillo-Groh, Air-Conditioning, Heating, & Refrigeration Kateri Callahan, Alliance to Save Energy Institute Rahul Chopra, Lawrence Berkeley National Laboratory Thomas Phoenix, American Society of Heating, Refrigeration, and Cade Clark, Air-Conditioning, Heating, & Refrigeration Institute Air-Conditioning Engineers Ron Cosby, Ingersoll Rand/Trane Kyle Pitsor, National Electrical Manufacturers Association Abigail Daken, U.S. Environmental Protection Agency John Pouland, Philips Lighting Andrew DeLaski, Appliance Standards Awareness Project Roland Risser, U.S. Department of Energy Maureen Guttman, Building Codes Assistance Project Susan Rochford, Legrand Ralph DiNola, New Buildings Institute Steve Rosenstock, Edison Electric Institute Richard Dye, Pacific Gas and Electric Company Kelly Seeger, Philips Lighting Drake Erbe, Airxchange Steve Selkowitz, Lawrence Berkeley National Laboratory Mark Frankel, New Buildings Institute Bill Sisson, United Technologies Corporation Robert Horner, Illuminating Engineering Society Zolaikha Strong, Copper Development Association Peter Horton, Legrand/Wattstopper Rick Tempchin, Edison Electric Institute Katharine Kaplan, U.S. Environmental Protection Agency David Terry, National Association of State Energy Officials Paul Karrer, American Institute of Architects Scott Tew, Ingersoll Rand Kit Kennedy, Natural Resources Defense Council Matthew Thornblad, United Technologies Corporation Chuck Kutscher, National Renewable Energy Laboratory Melissa Laura Van Wie McGrory, Alliance to Save Energy Lavinson, Pacific Gas and Electric Company Craig Walker, United Technologies Research Center Mark Lessans, Ingersoll Rand Tim Wentz, American Society of Heating, Refrigeration, and Air- Richard Lord, Carrier Corp. / United Technologies Corp. Conditioning Engineers Jean Lupinacci, U.S. Environmental Protection Agency John Wilson, Energy Foundation Itzhak Maor, Johnson Controls Inc. John Martin, International Association of Lighting Designers Greg Merritt, Cree Inc. iii TABLE OF CONTENTS Acknowledgements ii Acronyms and Abbreviations 5 Introduction 8 1 1 Defining Systems Efficiency 9 1 2 Building Energy Use 10 1 3 Limitations of Traditional Efficiency Approaches 13 1.3.1 Limits of a Component Efficiency Focus . 13 1.3.2 Limits of a Whole-Building Efficiency Focus . 13 1 4 Benefits of a Systems Approach 15 1 5 Other Building Systems 16 1.5.1 Miscellaneous Electric Loads . 17 1.5.2 Direct Current Distribution . 17 1.5.3 Building-to-Grid Integration. .18 1 6 Multi-System Integration and Controls 18 1 7 Systems Efficiency in Existing Buildings 19 1 8 Metrics and Test Methods 20 Building Systems Efficiency 24 2 1 Mechanical Systems 24 2.1.1 Understanding Commercial Building Mechanical System Energy Use . .24 2.1.1.1 Commercial Building Mechanical System Load Profiles and Ambient Operating Conditions . 24 2.1.1.2 Historical Approach to Mechanical Systems Efficiency . 25 2.1.1.3 Technical Limits to Component Efficiency . 28 2.1.1.4 Cost-Effectiveness Limits to Component Efficiency . 29 2.1.1.5 Limitations of Current Metrics . 29 1 TABLE OF CONTENTS 2.1.2 Systems Efficiency Approach for Mechanical Systems . 31 2.1.2.1 Mechanical Systems Efficiency Framework . 31 2.1.2.2 Benefits of a Mechanical Systems Efficiency Approach. .33 2.1.2.3 Real-World Examples of a Mechanical Systems Efficiency Approach . 34 2.1.3 Barriers to Implementation . 36 2.1.3.1 Technical Barriers and Opportunities . .36 2.1.3.2 Policy and Market Barriers . 37 2.1.4 Achieving the Potential . 38 2.1.4.1 Potential New Metrics and Implementation . 40 2.1.4.2 Potential Changes to Standards and Regulations . .40 2.1.4.3 Role of Utilities and Utility Programs . 40 2.1.5 Next Steps and Recommendations . .41 2.1.5.1 Research, Technical Support, and Market-Based Needs. .41 2.1.5.2 Training and Certification . 41 2.1.5.3 Recommendations for SEI Year Two Efforts . 41 2 2 Lighting 42 2.2.1 Optimal Lighting Systems . .43 2.2.2 Lighting Controls . .45 2.2.3 Lighting System Boundaries and Integration with Other Building Systems . 48 2.2.4 Daylighting . .49 2.2.4.1 Non-Energy Benefits of Daylighting . .50 2.2.4.2 Metrics for Quantifying Daylighting Performance . .51 2.2.4.3 Design Considerations for Effective Daylighting . 51 2.2.5 Technical, Market, and Policy Barriers . .54 2.2.6 Lighting Systems Efficiency Efforts in the Industry . 55 2.2.7 Non-Lighting Benefits of a Systems Approach . 56 2.2.8 Conclusions and Next Steps - Research and Policy Recommendations. 56 2.2.8.1 Research Roadmap. .57 2.2.8.2 Policy and Technical Recommendations . 58 2 3 Other Building Systems 59 2.3.1 Miscellaneous Electric Loads. 60 2.3.1.1 Potential Benefits . 61 2.3.1.2 Current Status . 62 2.3.1.3 Technical, Market, and Policy Barriers . .63 2.3.1.4 Recommendations and Next Steps . 64 2 TABLE OF CONTENTS 2.3.2 Building-Level Direct Current Power . 65 2.3.2.1 Technical, Market, and Policy Barriers . 67 2.3.2.2 Current Status . .68 2.3.2.3 Next Steps . 69 2 4 Multi-Systems Integration in Existing Buildings 70 2.4.1 Technical, Market, and Policy Barriers . .72 2.4.2 Next Steps . .73 2 5 Building-to-Grid Integration 74 2.5.1 Potential Benefits . 74 2.5.1.1 Quantifying Benefits. .75 2.5.1.2 Demand Response . 76 2.5.1.3 Improving Grid Reliability . 76 2.5.2 Technical, Market, and Policy Barriers . .76 2.5.3 Vision and Recommendations . 77 Achieving the Potential 80 3 1 Market Barriers and Opportunities 81 3.1.1 Market Structure and Industry Practices . 81 3.1.1.1 Fragmentation and Process Disconnects in Procurement . 81 3.1.1.2 Fees, Timelines, and Risks . .82 3.1.1.3 Focus on Operations . .82 3.1.1.4 Public Sector Challenges and Opportunities. .83 3.1.1.5 Focus on Short-Term Investments. .83 3.1.1.6 Recommendations Related to Market Structure and Industry Practices. .84 3.1.2 Government as a Leader.
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