commercial building opportunities in the midwest
DESCRIPTION
As commercial energy efficiency programs mature and savings goals increase, utilities must go beyond easy-to-identify measures like lighting and attract hard-to-reach customer segments. How can utilities and program administrators realize deeper energy savings at scale within the Midwest, given these challenges? Based on actual energy analysis of tens of thousands of real buildings, Retroficiency presented insights about efficiency opportunities that exist across utility portfolios in the commercial sector, and provided specific best-practice strategies utilities and program administrators are employing to address these opportunities.TRANSCRIPT
COMMERCIAL BUILDING
OPPORTUNITIES IN THE MIDWEST
July 30, 2014
MEEA is a non-profit
organization bridging the gap
between energy efficiency
policy, development, and
program implementation
Midwest Energy Efficiency Alliance
MEEA’s Role in the Midwest • Nonprofit serving 13 Midwest states
• 10+ years promoting energy efficiency
• Over 140 members from state & local governments, utilities, advocates, manufacturers & retailers, ESCOs, consultants, academic & research organizations.
• Staff of 30 based in Chicago
• Activities include: – Designing & Administering EE Programs
– Evaluating & Promoting Emerging Technologies
– Regional Voice for DOE/EPA & ENERGY STAR
– Coordinating Utility Program Efforts
– Delivering Training & Workshops
– Advancing EE Policy
– Promoting Best Practices
MEEA Members
Diverse stakeholders in energy efficiency
• Academic/Research Organizations
• Manufacturers/Retailers
• State and Local Governments
• Utilities (Investor-Owned, Municipal, and Cooperative Utilities)
• Energy Service Firms/Consultants
• Leading Nonprofits and Advocacy Organizations
• General Interest/Professionals
THE BUILDING EFFICIENCY INTELLIGENCE COMPANY
• Deeper savings at scale • Lower cost to acquire customers • Reduced time to savings
IMPACT
• Buildings spend billions on energy use • 30%–50% of usage is routinely wasted, but
many efficiency upgrades are left undone
CHALLENGE
• Rapid energy models for targeting, engagement, conversion and tracking
• Fast, comprehensive, and consistent
SOLUTION
Evaluated more than 2 billion square feet of space since March 2011
Retroficiency Overview
Today’s Discussion
Opportunities in the Midwest
Deliver advanced efficiency segmentation and marketing
Unlock the forgotten segment
Harness operational building savings
Areas of Focus
Dimension: Size the opportunity
Distill: Discuss best practices
Deploy : Review real-world examples (not in your own backyard)
Information About Data Presented
4 Midwestern utility programs
8,000+
137M+
24.7M+
Energy model-based assessments and audits
MMBtu of energy consumption
MMBtu of cost-effective savings potential
Unit Conversion 1 MMBtu = 29.32972 KWh 1 MMBtu = 10 therms
0 500,000 1,000,000 1,500,000 2,000,000 2,500,000
Annual Electric Savings Potential (kWh)
Buildings 34-64 Buildings 1-33
Buildings 65-105
70% of the total efficiency opportunity is found in 30% of the buildings
Notes: - Based on analysis of 105 buildings in a utility portfolio - Each bar represents one building - Buildings shown from greatest to smallest efficiency savings potential
Focus on the Buildings that Matter
Contribution of High Potential Buildings to Total Energy Savings Potential
Marry Building Potential with Transitional Segmentation
Building Efficiency and Consumption by Building Type
0
50
100
0 100000 200000 300000 400000 500000
Effi
cie
ncy
Rat
ing
(1=
Hig
h p
ote
nti
al;
10
0=L
ow
Po
ten
tial
)
Annual Gas Consumption (in Therms)
Education Grocery Store Office Production/Process Restaurant Warehouse Retail
Less e
fficien
t bu
ildin
gs and
/or h
igher co
nsu
mp
tion
More efficient buildings and /or lower consumption
Benchmarking versus Prioritizing
0%
10%
20%
30%
40%
50%
60%
70%
0 20 40 60 80 100
Av
era
ge E
nerg
y S
av
ing
s (
%)
ENERGY STAR Score
Energy Savings Potential vs. ENERGY STAR Score(Mid-Term Package)
Education
Hospital
Hotel
Office
Retail
Warehouse
Con Edison: Geo-Targeting Peak Demand
Challenge: Accelerate long-standing DSM efforts
to alleviate constrained areas of the grid
Approach: Identify buildings and customers
with high potential during peak periods
Assessed ~900 buildings
Results
Average customer: 6% of peak load
High potential: 11% of peak load
Identify of load reduction during system peak
23 MW
Sizing the SMB Opportunity in the Midwest
1.8M MWh
68M Therms
0.4M MWh
8.8M Therms
1.9M MWh
63M Therms 3.1M MWh
118M Therms
3.7M MWh
120M Therms
0.4M MWh
7.6M Therms
0.7M MWh
22M Therms
1.2M MWh
21M Therms
2.4M MWh
44M Therms
1.9M MWh
54M Therms
1.0M MWh
35M Therms 4.1M MWh
152M Therms
1.5M MWh
25M Therms
Take a Comprehensive Approach
• SMBs embody the scale of residential and the diversity of large commercial •Must go beyond
lights to achieve more project conversions and deeper savings
Deep Insights for One-to-One Messaging
Efficiency Maine: Motivating w/ Insights
Program Overview: Drive awareness and penetration amongst geographically dispersed SMBs
Education: SMBs can and want to be educated about opportunities
Savings: Whole building savings exist and should be exploited
Relationships: Relationships and trust are critical
LESSONS LEARNED
Information is King
“We don’t look at our buildings [for energy
efficiency] because we don’t have time. This is definitely
an eye opener.”
“The timing of this is great. We have planned renovation work coming up and this is a great opportunity for energy
efficiency.”
“This is absolutely valuable to me. I found it to be very
worthwhile. It would be nice to do this for all of my
buildings.”
42/100 54/100
How Many Buildings Have this Operational Issue?
Cooling occurs at very low temperatures
Active longer than necessary
Simultaneous heating & cooling
58/100
Align the Opportunity with Program Goals
31% of savings potential
% Midwestern Program Savings Targets
Utility A: 19%
Utility B: 2%
Utility C: <1%
Identify the Issue, Drill to Solution (quickly)
Issue and Key Questions
Building is active longer then necessary
Is there an operational reason to keep systems running?
No
Yes
Does the building have an EMS?
Yes
Is there a preferred vendor for maintenance?
Is the building management staff capable of reconfiguring?
Can current systems be adequately optimized?
Is the building a candidate for a new system?
Potential Solutions
Operational Capital Behaviors
No
Are behavioral treatments viable?
Re-configuring BMS settings
Upgrade control settings
Influence tenants to better
actions
Automate the M&V Process
Operational/RCx Program Best Practices
HVAC Operational Best Practices
• Target for high potential and screen inbound candidates
• Reduce study time and cost
• Ensure persistence
• Automate the M&V process
THANK YOU
One of America’s Most Promising Social Entrepreneurs
Utility Technology Challenge – Pilot Program Winner
“Analogous to giving a miner a GPS and the
coordinates of a gold vein”
“Represents an innovative new entrant in the energy
efficiency space” MassTLC Innovative Energy
Product of the Year
Best Green Invention
Utility Technology Challenge Winner
SUSTANIA 100 Winner
American Technology Awards - Clean Tech / Green Tech Product of
the Year
Smart Grid Startup to Watch
Retroficiency’s Rich Huntley named as one of the 50 Smart
Grid Pioneers
America’s Most Promising Companies
Mike Kaplan VP of Marketing (845) 304-2346
Building Energy Benchmarking
General Definition:
The process of tracking the
energy consumed, over time,
of an existing building and
comparing the results to
similar buildings or an
applicable standard. Image Courtesy of Portland State University
Key Terms: Existing Building, Energy Use,
Measurement, Comparison, Commercial
Benefits of Measuring Energy Use P
re-D
esi
gn
1 - Compare Energy Consumption with Peer Buildings.
2 - Use for Basis of Design to Set Sustainability Goals.
Po
st-C
on
stru
ctio
n
1 - Verify Savings from Completed Project.
2 – Earn Recognition in Certification Programs (Energy Star, Green Globes, LEED).
Op
era
tio
ns 1- Create
Annual Energy Budgets.
2 - Influence Behavior Change of Tenants.
3 - Use in Real Estate Transactions.
Minneapolis MN: • Passed 2/2013
• Municipal,
commercial
• Public disclosure
National Trends of Benchmarking &
Transparency Policies
Washington
DC: • 7/2008
• Municipal,
commercial,
multi-family
• Public
disclosure
Philadelphia, PA: • 6/2012
• Commercial
• Public & Transactional
disclosure
Seattle WA: • 1/2010
• Municipal,
commercial,
multifamily
• Tenant &
transactional
disclosure only
San
Francisco, CA: • 2/2011
• Municipal,
commercial
• Public &
transactional
disclosure
• Mandatory audits
Austin, TX: • 11/2008
• Municipal,
commercial, multi-family
• Transactional disclosure
• Mandatory audits for multifamily
New York, NY: • 12/2009
• Municipal,
commercial, multi-
family
• Public Disclosure
• Mandatory Audits,
Retro-commissioning,
Lighting upgrades
Boston, MA: • 5/2013
• Municipal, commercial,
multi-family
• Public Disclosure
• Mandatory Audits
Chicago, IL: • 9/2013
• Municipal,
commercial,
multi-family
• Data verification
• Public disclosure
Midwest Benchmarking Legislation
Status
RToS
RToS
State Pilot Underway
State Owned/Operated
Building Benchmarking
State Pilot Complete
State Owned Considering
State Owned Enacted
Challenge Program
Underway in Municipality
Legislation In Progress
by Municipality
Municipal + Private Owned
Benchmarking Ordinance
RToS Voluntary Residential
Time of Sale
Disclosure Updated July 2014
Adopted by Municipality
Retroficiency:
Mike Kaplan
MEEA Benchmarking Policy:
Steve Kismohr, AIA, LEED AP BD+C