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Market Characterization of Indoor Cannabis Cultivation

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Market Characterization of Indoor Cannabis Cultivation Emerging Technologies Market Characterization of Indoor Cannabis Cultivation ET20SCE8030 Prepared by: Emerging Products Customer Service Southern California Edison April 2021 Indoor Cannabis Market Characterization ET20SCE8030 Acknowledgements Southern California Edison’s Emerging Products (EP) group is responsible for this project. It was developed as part of Southern California Edison’s Emerging Technologies Program under internal project number ET20SCE8030. Energy Resource Integration, LLC (ERI) conducted this study with the overall guidance and management from Dave Rivers and Edwin Hornquist. For more information on this project, contact [email protected]. Disclaimer This report was prepared by Southern California Edison (SCE) and funded by California utility customers under the auspices of the California Public Utilities Commission. Reproduction or distribution of the whole or any part of the contents of this document without the express written permission of SCE is prohibited. This work was performed with reasonable care and in accordance with professional standards. However, neither SCE nor any entity performing the work pursuant to SCE’s authority make any warranty or representation, expressed or implied, with regard to this report, the merchantability or fitness for a particular purpose of the results of the work, or any analyses, or conclusions contained in this report. The results reflected in the work are generally representative of operating conditions; however, the results in any other situation may vary depending upon particular operating conditions. Southern California Edison Page ii Emerging Products April 2021 Indoor Cannabis Market Characterization ET20SCE8030 CONTENTS Contents ........................................................................................................................ iii Executive Summary ...................................................................................................... 2 Abbreviations and Acronyms ...................................................................................... 3 Introduction ................................................................................................................... 5 Background ................................................................................................................... 6 Indoor Agriculture ...................................................................................................... 6 Indoor Cannabis History ........................................................................................... 6 Stages of Cannabis Growth ..................................................................................... 8 Seedling Stage........................................................................................................ 8 Vegetative Stage ................................................................................................... 8 Flowering Stage ...................................................................................................... 8 Benefits of Growing Indoors ...................................................................................... 9 Primary Benefits ....................................................................................................... 9 Isolation from Common Contaminants ................................................................ 9 Increased Production and Reduced Water Use ................................................. 9 Reduced Transportation Carbon Footprint ....................................................... 10 Technologies and Farming Techniques ................................................................. 10 Farming Techniques ............................................................................................. 10 Growing Configuration ........................................................................................... 10 Single Layer or Flat Bed Configuration ............................................................... 11 Vertical Configuration ......................................................................................... 11 Building Types and Constructions .......................................................................... 11 Greenhouses ......................................................................................................... 11 Existing or New Construction Nonresidential Buildings ...................................... 12 Growing Setup Business Economic Factors ........................................................... 12 Purchase or Lease of Buildings ............................................................................ 12 Southern California Edison Page iii Emerging Products April 2021 Indoor Cannabis Market Characterization ET20SCE8030 Repurposed Shipping Containers ....................................................................... 12 Specialized Equipment in Different Growing Setups ........................................ 12 Market Characterization Study Objectives .............................................................. 15 TECHNOLOGY/PRODUCT EVALUATION .................................................................... 16 Indoor Agriculture Lighting Technology ................................................................ 16 Lighting Definitions and Metrics ............................................................................. 16 High Intensity Discharge ...................................................................................... 16 T5HO Linear Fluorescent ...................................................................................... 17 LED Lighting ........................................................................................................... 17 High Pressure Sodium ........................................................................................... 19 HVAC Technology ................................................................................................... 19 Cooling .................................................................................................................. 19 Heating .................................................................................................................. 20 Mechanical Ventilation ....................................................................................... 20 Dehumidification .................................................................................................. 20 CO2 Production .................................................................................................... 20 Advanced Controls .............................................................................................. 21 Codes, Standards, and Policy ................................................................................ 21 California ............................................................................................................... 21 Oregon .................................................................................................................. 22 Colorado ............................................................................................................... 23 Barriers to Compliance ........................................................................................... 23 Conflicts of Law .................................................................................................... 25 Market Characterization Approach ......................................................................... 26 Interviews .................................................................................................................. 26 Questionnaire Development ............................................................................... 26 Stakeholder Outreach ......................................................................................... 26 Market Characterization Results ................................................................................ 28 Interview Findings .................................................................................................... 28 Lighting .................................................................................................................. 28 HVAC ..................................................................................................................... 29 Southern California Edison Page iv Emerging Products April 2021 Indoor Cannabis Market Characterization ET20SCE8030 Decision Drivers and Barriers to Adoption .......................................................... 29 IOU Stakeholder Feedback and Associated Impacts ...................................... 31 Market Analysis Discussion ......................................................................................... 35 Potential Market Savings ......................................................................................... 35 Lighting .................................................................................................................. 35 Space Cooling ...................................................................................................... 36 Southern California Market Potential ..................................................................... 37 Commercial ICA Facility Carbon Footprint ....................................................... 38 ICA EE Savings Potential Estimates ..................................................................... 38 2022 California Title 24 Codes and Standards
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