FEMPFederal First Energy Thursday Management Seminars Program Implementing Deep Retrofits: A Whole Building Approach Instructors: Jesse Dean, National Renewable Energy Laboratory Elaine Gallagher Adams, Rocky Mountain Institute FEMP Expert: Ab Ream, Federal Energy Management Program 1 | FEMP First Thursday Seminars femp.energy.gov/training FEMP First Thursday Seminars Core Competencies Energy/Sustainability Managers and Facility Managers – Building Technologies – High Performance Building Design Operating Engineers/Building Technicians Technical Technologies – Energy system design strategies Skills – Building Lighting Systems Core – Building HVAC Systems Competencies – Building Plug Loads – Building Control Systems Systems – Building Commissioning – Building O&M 2 | FEMP First Thursday Seminars femp.energy.gov/training FEMP First Thursday Seminars Results - Expectations 1. Select appropriate facilities for deep retrofits and set performance objectives 2. Employ an integrated design process and end use technology applications for deep retrofits 3. Determine how you will ensure optimal performance 4. Identify DOE and industry resources to support decision making processes 3 | FEMP First Thursday Seminars femp.energy.gov/training FEMP First Thursday Seminars Agenda • Understanding Deep Retrofits • Deep Retrofit Process • Optimization • Financing and Utility Markets • The Role of Energy Modeling in Integrated Design • End Use Technologies • Case Studies • Tools and Resources 4 | FEMP First Thursday Seminars femp.energy.gov/training FEMP First Thursday Seminars Understanding Deep Retrofits 5 | FEMP First Thursday Seminars femp.energy.gov/training FEMP First Thursday Seminars Advanced Energy Retrofit Guide (AERG) Approach Deep Energy Audit Energy Retrofit Energy Retrofit PROS: PROS: PROS: • >15% Energy Savings • >30% Energy Savings • >50% Energy Savings • Quick Payback • Portfolio Strategy • Right-Timed w/ Other Cap Improvements • ESCO Potential CONS: • Net-Zero Path • Exhaust “low hanging fruit” CONS: • Passive & Mechanical Solutions – • Limited Energy Savings • Mechanical Focus Integrative • Leaves savings “on the table” • Higher Costs • Compelling Business Case CONS: Requires coordinated planning Source: RMI 6 | FEMP First Thursday Seminars femp.energy.gov/training FEMP First Thursday Seminars Advanced Energy Retrofit Guides Purpose: Provide energy managers with guidance for planning and executing successful retrofit projects in commercial buildings, tailored to specific building types and climate regions Five AERGs in development by NREL and PNNL (three completed thus far) 7 | FEMP First Thursday Seminars femp.energy.gov/training FEMP First Thursday Seminars What is a Deep Energy Retrofit? Process Differentiators 1. Broader conversations with owners Larger savings and 2. Integrative design value improvements 3. Advanced auditing, modeling and LCCA 4. Ongoing energy tracking, proof of success Improved project 5. Tenant related strategies economics 6. Considers timing of other planned renovations 8 | FEMP First Thursday Seminars femp.energy.gov/training FEMP First Thursday Seminars Deep Retrofit Energy Savings Target • Set energy savings goal based on % reduction in energy use or energy use intensity reduction goal • ASHRAE Standard 100 – Energy Efficiency in Existing Buildings – Sets EUI target based on top performing facilities (25th percentile) – EUI targets for 48 building types in 16 climate zones 9 | FEMP First Thursday Seminars femp.energy.gov/training FEMP First Thursday Seminars Process 10 | FEMP First Thursday Seminars femp.energy.gov/training FEMP First Thursday Seminars Benchmark & Select Team & Set Goals (O) Baseline (SP) Launch Align Incentives (O) • Gather Data • Build Calibrated Energy Model • Document Business-as Usual Scenario Identify Opportunities (O) Analyze Options (SP) Design • Define Technical • Evaluate Individual ECMs & Create Bundles Potential • Create Pathway to Net Zero • Engage Stakeholders • Address Tenant Opportunities • Refine Goals Construct & Implement Commission (SP) Performance Accountability Verify & Improvement (O) Share Successes (O) •Measurement & Verification Source: RMI 11 | FEMP First Thursday Seminars femp.energy.gov/training FEMP First Thursday Seminars Top “Ripeness” Indicators – Timing is Key 1. Planned capital improvement 6. New use / occupancy type 2. Major system replacement 7.Large utility incentives/high energy costs 3. Major envelope project 8. Mitigating an “energy hog” 4. Code upgrades 9.Portfolio management 5. New owner / refinancing Source: RMI 12 | FEMP First Thursday Seminars femp.energy.gov/training FEMP First Thursday Seminars Factor1 Description Deep Lack of policy creates little to no motivation to make the Policy Retrofit investment of time and capital to perform deep retrofits Barriers Independent engineering and financial analysis tools exist Project but none that combine and allow for a streamlined analysis iterative process to identify the best tools mix of ECMs Uncertainty Uncertainty of technical and economic performance of technical energy efficiency retrofits creates perceived risk from and building owners, developers and financiers. Encourages economic taking low-hanging opportunities alone. performance Deep retrofit projects can require the coordinated use of Financing multiple project funding mechanisms. Can be complicated and time consuming to analyze/coordinate. 1 http://www.esbnyc.com/sustainability_energy_efficiency.asp, accessed 6/14/2012 13 | FEMP First Thursday Seminars femp.energy.gov/training FEMP First Thursday Seminars Optimization 14 | FEMP First Thursday Seminars femp.energy.gov/training FEMP First Thursday Seminars (1) Define Needs & Set Goals (2) Understand the Existing Building (3) Understand the Scope of Planned Renovations Most (4) Reduce Loads people start (5) Select Appropriate & Efficient Technology here! (6) Seek Synergies (7) Optimize Controls (8) Integrate Renewables Source: RMI (9) Realize the Intended Design 15 | FEMP First Thursday Seminars femp.energy.gov/training FEMP First Thursday Seminars Find the minimal energy use possible using today’s technology - then add constraints back in (grudgingly) Source: RMI 16 | FEMP First Thursday Seminars femp.energy.gov/training FEMP First Thursday Seminars Integrative Design, Find Synergies Optimize the WHOLE, not the parts Iterative Energy Early Goal Determine Pursue the Multiple Tunnel the Right Steps Modeling Benefits Intervention Setting through the Technical in the and from a Potential Right Order LCCA Single Cost Barrier Expenditure Source: RMI 17 | FEMP First Thursday Seminars femp.energy.gov/training FEMP First Thursday Seminars Financing and Utility Markets 18 | FEMP First Thursday Seminars femp.energy.gov/training FEMP First Thursday Seminars Factors for Economic Success Factor Description Facility Not all facilities are good candidates for deep retrofit projects. selection Select older facilities with pending/budgeted equipment replacements Energy Facilities with higher than average cost of energy provide higher ROI costs for investment in energy efficiency Facility owner and staff must be motivated to achieve larger than typical Motivation reductions in facility energy use: $ savings, environmental benefits, Federal mandates, agency/corporate goals etc. Financing Deep retrofit projects typically require the coordinated use of multiple strategy project funding mechanisms. ESPCs, Budgeted $ for schedule replacement/facility upgrades, sharing/reallocation of utility costs. 19 | FEMP First Thursday Seminars femp.energy.gov/training FEMP First Thursday Seminars Elements of Techno-economic Analysis Constraints: ROI, Energy/environmental goals, capital What’s the priority/motivation? EE Elements Economic Elements Operations Capital cost EE Technology Energy related cost savings Controls Incentives/Tax implications Awareness Escalation rates Discount rate Environmental value What’s the Tenant utility structure What’s the confidence best combination? level? NREL Source: 20 | FEMP First Thursday Seminars femp.energy.gov/training FEMP First Thursday Seminars Tunnel Through the Cost Barrier STOP COST-EFFECTIVENESS LIMIT MARGINAL COST OF MARGINAL EFFICIENCY IMPROVEMENT EFFICIENCY CUMULATIVE RESOURCE SAVINGS Source: RMI 21 | FEMP First Thursday Seminars femp.energy.gov/training FEMP First Thursday Seminars Eliminate Systems DETOUR AHEAD COST-EFFECTIVENESS LIMIT MARGINAL COST OF MARGINAL EFFICIENCY IMPROVEMENT EFFICIENCY TUNNEL THROUGH Source: RMI 22 | FEMP First Thursday Seminars femp.energy.gov/training FEMP First Thursday Seminars Deep Retrofit and Net Zero Energy Life Cycle Cost Deep efficiency renovation measures reduce EUI more cost-effectively than a PPA (for an analysis period equal to the duration of the PPA) Reducing scope of PPA reduces amortized cost of achieving net zero energy Source: NREL 23 | FEMP First Thursday Seminars femp.energy.gov/training FEMP First Thursday Seminars GSA Renovation Challenge Goal • Demonstration projects on how to achieve NZE Buildings using ESPC • 30 GSA/PBS buildings Source: GSA 24 | FEMP First Thursday Seminars femp.energy.gov/training FEMP First Thursday Seminars GSA Renovation Challenge Workshop (Attendees: GSA, RMI, 16 ESCOs) Topic Workshop Conclusions Analysis and Integrative design and whole building analysis not Integrative Design commonly included Project Economics May require blending of ESPC and appropriated funding, LCCA, long term contracting ESPC Delivery Needs to be streamlined and consistent Process Occupant Behavior Potential savings