Jerry Yudelson: The Business Case for Net Zero Energy Buildings

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Presented at the annual convention of the Sheet Metal and Air Conditioning National Association (www.smacna.org) in Maui, Hawaii, in October 2013. In this presentation, Jerry Yudelson discusses the …

Presented at the annual convention of the Sheet Metal and Air Conditioning National Association (www.smacna.org) in Maui, Hawaii, in October 2013. In this presentation, Jerry Yudelson discusses the business case for net zero energy buildings and demonstrates why they are going to be a big part of the green building future.

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  • Design Features 16,533-sq.ft. (one story, former retail store)79kVA of PV on adjacent parking structure Natural lighting on east and north facades, with horizontal shadingTarget EUI 25 kBtu/sq.ft./year Solatubes for interior light LEDs for exterior lighting 4 Evaporative cooling, “shower towers” made from 48” dia. Corrugated polyethylene storm pipe, each 28’ tall 87-foot-long, zinc-clad “solar chimney” Operable windows and roll-up doors 12 @ 8’-dia. Big Ass fans Vampire shut-off switch7PV has 140,000 kWh/year AC output Building dashboard system to engage occupants
  • Design Features Thermal chimney, 85’ long, black zinc16,533-sq.ft. (one story, former retail store) Natural lighting on east and north facades, with horizontal shading Solatubes for interior light LEDs for exterior lighting 4 Evaporative cooling, “shower towers” with 87-foot-long, zinc-clad “solar chimney Operable windows and roll-up doors 12 @ 8’-dia. Big Ass fans Vampire shut-off switch79 kW of PV, 140,000 kWh/year AC output Building dashboard system to engage occupants
  • Design Features Net zero was Mayor’s goal, introduced after budget was already set in stone175,500-sq.ft., $125 million (335,000-sq.ft. with structured parking) Built on a conventional budget (for this building type) – bond issue amount (balance 3 items: budget, quality, program all together with ‘net zero’) “Energy thermometer” presented at every project meeting when new issues came up; low lighting power density (LED task lights) LEED Platinum rating expected Radiant slab heating/cooling with chilled beam cooling (relatively few; dispatch center); improved comfort for stationary workers Downsized vents Space conditioning – find the right solution for each issue and to make them interactive 30-kW solar on building (30,000-sq.ft.); more at SLC Airport to meet Net Zero goal Four-story glass curtain wall with triple-pane glass
  • Design Features Net zero was Mayor’s goal, introduced after budget was already set in stone175,500-sq.ft., $125 million (335,000-sq.ft. with structured parking) Built on a conventional budget (for this building type) – bond issue amount (balance 3 items: budget, quality, program all together with ‘net zero’) “Energy thermometer” presented at every project meeting when new issues came up; low lighting power density (LED task lights) LEED Platinum rating expected Radiant slab heating/cooling with chilled beam cooling (relatively few; dispatch center); improved comfort for stationary workers Downsized vents Space conditioning – find the right solution for each issue and to make them interactive 30-kW solar on building (30,000-sq.ft.); more at SLC Airport to meet Net Zero goal Four-story glass curtain wall with triple-pane glass
  • 50,000 SF16kBtu/SF/year goal6 stories30 kW PV systemOperable windowsLiving Building Challenge goals: Net Zero Energy/Net Zero Water
  • “What gets measured, gets managed”Without reports, we are flying blind/can’t fixWhy should governments put their faith in green building without performance reports?
  • Every building should be beautifulEvery building LEED PlatinumEvery building should aim at “BSAGs”Achieve measured 35 to 45 kBtu/sq.ft. (EUI) performanceDon’t settle for less!BE WILLING to SAY: If it doesn’t perform, it’s not a green building!
  • 60 buildings total in the study, EUI up to 36, 20% were above 50,000 sq.ft.
  • Integrated Design Process Critical to SuccessStarted with the Procurement ProcessSet BSAGs – Big, Scary, Audacious Goals
  • Mission CriticalAttain Safe Work Performance Record/Safe Design PracticesLEED® Platinum CertificationENERGY STAR First “Plus”Highly Desirable Goals (first page)Up to 800 Staff Capacity25,000 BTU/sq.ft./year energy use (79 kWh/sq.m./annum)Architectural IntegrityHonor “Future Staff” NeedsMeasurable 50% Reduction In Energy Use From ASHRAE 90.1-2007Support Culture And Amenities
  • Highly Desirable (Continued)Expandable Building (To Add Another Wing)Ergonomic DesignFlexible WorkspaceSupport Future TechnologiesDocumentation to Produce a “How To” ManualPR Campaign Implemented in Real TimeAllow Secure Collaboration with OutsidersUse BIM (Building Information Modeling)Substantial Completion in 27 months
  • If Possible (Stretch Goals, 8 total))Net-Zero-Energy Design ApproachMost Energy-Efficient Building in the WorldLEED Platinum “Plus”Measurable >50% Reduction in Energy Use from ASHRAE 90.1-2007Visual Displays of Current Energy EfficiencySupport Public ToursAchieve National and Global Recognition/AwardsSupport retention of personnel
  • Every building should be beautifulEvery building LEED PlatinumEvery building should aim at “BSAGs”Achieve measured 35 to 45 kBtu/sq.ft. (EUI) performanceDon’t settle for less!BE WILLING to SAY: If it doesn’t perform, it’s not a green building!
  • If you want to score, run to where the ball is headed, not to where it is.Ask yourself and your clients: how green will the built environment be in 2015 to 2020?Non-performing green buildings will pay a penalty in that market!2010 FIFA World CupIf you want to score, run to where the ball is headed, not to where it is.Ask yourself and your clients: how green will the built environment be in 2015 to 2020?What will be the competing buildings over the next 5-10 years?Non-performing green buildings will pay a penalty in that market!
  • ARE YOU WILLING to SAY: If it doesn’t perform, it’s not a green building?

Transcript

  • 1. MAKING THE BUSINESS CASE: NET-ZERO-ENERGY BUILDINGS SMACNA National Convention October 21, 2013 — Maui, Hawaii Jerry Yudelson, PE, LEED Fellow Yudelson Associates Tucson, Arizona
  • 2. LEARNING OBJECTIVES: NET-ZERO-ENERGY BUILDINGS ©2013 Yudelson Associates 1. 2. 3. 4. Understand the concept of net-zero-energy buildings Learn from examples what systems are being used in low-energy buildings Become conversant with the business case for Net Zero buildings Gather ideas for positioning your business to take advantage of this trend
  • 3. LOOKING BACK WHAT HAS CHANGED IN 5 YEARS? ©2013 Yudelson Associates 1. 2. 3. 4. 5. 6. New HVAC technologies Market demand for green buildings Cost of green buildings Financing for solar Cost of solar New goals – Net Zero
  • 4. ©2013 Yudelson Associates DPR Const. Office Phoenix
  • 5. ©2013 Yudelson Associates DPR Const. Office Phoenix
  • 6. Public Service Bldg. ©2013 Yudelson Associates Salt Lake City
  • 7. Public Service Bldg. ©2013 Yudelson Associates Salt Lake City
  • 8. BULLITT CENTER SEATTLE
  • 9. BULLITT CENTER SEATTLE
  • 10. ©2013 Yudelson Associates ENERGY USE INTENSITY
  • 11. ©2013 Yudelson Associates MULTIPLES
  • 12. LOOKING FORWARD ©2013 Yudelson Associates WHAT WILL CHANGE IN 5 YEARS? 1. 2. 3. 4. 5. 6. 7. New HVAC technologies ASHRAE design standards Cost of solar (-) Cost of energy (+) Regulatory environment Market demand New technologies
  • 13. ©2013 Yudelson Associates EUI GOALS
  • 14. ©2013 Yudelson Associates PATH_TO_NET_ZERO
  • 15. LOOKING AHEAD ©2013 Yudelson Associates DRIVING FORCES FOR NET ZERO 1. 2. 3. 4. 5. 6. 7. Policy directives from Gov’t/NGO/Universities, etc. LEED Living Building Challenge/certification Demonstration projects multiplying Rapid cost reductions – solar PV Financing for commercial rooftop solar Increasing energy costs/concerns
  • 16. LOOKING AHEAD ©2013 Yudelson Associates INHIBITING FORCES 1. 2. 3. 4. 5. 6. 7. Large buildings – not enough roof area Higher initial costs Technical difficulty of low EUI’s Lack of integrated design process Climate determines solar output Market demand Energy costs/ROI
  • 17. DEFINING ©2013 Yudelson Associates ZERO ENERGY BUILDING (ZEB) Generally, building energy use from all operating demands will be equal (or less) on an annual basis than energy generated by on-site renewable sources. HVAC Electrical Lighting Water Heating Plug and Process Loads Buying power from green sources doesn’t count (much)! Seasonally: in winter, buildings demand more power than they produce and in summer, they generate more than they use.
  • 18. ZEB ©2013 Yudelson Associates DEFINITIONS Net zero site energy building Net zero source energy building Net zero energy cost building Net zero energy emissions building
  • 19. HIERARCHY ZONE DEFINITIONS • ©2013 Yudelson Associates • • Building energy use from all operating demands will be equal (or less) on an annual basis than energy generated by on-site renewable sources that are connected to the building’s energy systems – Within building footprint (the best!) – On the site but not all within building footprint (e.g., parking structures, ground-mounted, etc.) Generated from combustion of renewable sources (e.g., biomass) and some on-site solar thermal/electric energy Generated from off-site renewable sources (e.g., buy offsets) Source: S. Pless and P. Torcellini, NREL/TP-550-44586, June 2010
  • 20. ZEB DEFINITIONS SUMMARY Minuses Site ZEB • Easy to implement. • Verifiable through on-site measurements. • Conservative approach to achieving ZEB. • No externalities affect performance, can track success over time. • Easy for the building community to understand and communicate. • Encourages energy-efficient building designs. • Requires more PV export to offset natural gas use. • Does not consider all utility costs (can have a low load factor). • Not able to equate fuel types. • Does not account for non-energy differences between fuel types (supply availability, pollution). Source ZEB • Able to equate energy value of fuel types used at the site. • Better model for impact on national energy system. • Easier ZEB to reach. • Does not account for non-energy differences between fuel types (supply availability, pollution). • Source calculations too broad (do not account for regional or daily variations in electricity generation heat rates). • Source energy use accounting and fuel switching can have a larger impact than efficiency technologies. • Does not consider all energy costs (can have a low load factor). • Need to develop site-tosource conversion factors, which require significant amount of information to define. Cost ZEB ©2013 Yudelson Associates Definition Pluses • Easy to implement and measure. • Market forces result in a good balance between fuel types. • Allows for demand-responsive control. • Verifiable from utility bills. • May not reflect impact to national grid for demand, as extra PV generation can be more valuable for reducing demand with on-site storage than exporting to the grid. • Requires net-metering agreements such that exported electricity can offset energy and non-energy charges. • Highly volatile energy rates make for difficult tracking over time. • Offsetting monthly service and infrastructure charges require going beyond ZEB. • Net metering is not everywhere well established, often with capacity limits and at buy-back rates that may be lower than retail rates. Emissions ZEB • Better model for green power. • Accounts for non-energy differences between fuel types (pollution, greenhouse gases). • Easier ZEB to reach. • Need appropriate emission factors. Other Issues
  • 21. IS IT EVEN POSSIBLE? ©2013 Yudelson Associates OF COURSE! BUT . . . Solar AC generation ranges 1200-1800 kWh/KW (peak) annually in U.S. If a 110,000 sq.ft. building uses 1.5 million kWh/year, you need a ≈1000-kWp system to get net zero Actually, need solar thermal also, for hot water needs Cost $5 million +/-, or ~$45/sq.ft., net of incentives Still an expensive proposition for a typical office Living Building Challenge requires this result Most LEED buildings get to ZEB only by buying green power from outside sources
  • 22. BUSINESS CASE: GREEN BUILDING REPUTATIONAL Energy/water savings Higher rents/occupancy +Net operating income Higher resale value Tax benefits Recruit/retain talent Increase stock value Marketing Public relations Investors/donors Value retention ENVIRONMENTAL ©2013 Yudelson Associates FINANCIAL SOCIAL Sustainability Storm water management Renewable energy Risk mitigation Health gains Employee morale Improved productivity
  • 23. TWO TYPES OF OWNER TWO UNIQUE ROI GOALS INVESTOR-OWNER Long-term Ownership Occupancy of Entire Building Same Entity Owns/Occupies Appeal to Employees/Visitors Interested in Lowering Op. Costs ©2013 Yudelson Associates OWNER-OCCUPIER Shorter-term Ownership Many Tenants Appeal to Tenants’ “Green” Req’s Interested in Rental Income Increase Asset Value for Resale
  • 24. OWNER/OCCUPIER ROI MOTIVATION OWNER-OCCUPIER ROI MOTIVATION ©2013 Yudelson Associates MEETING SUSTAINABILITY OBJECTIVES EMPLOYEES’ VIEW OF COMPANY — Ranking against peers — Ability to attract and retain engaged employees — GHG reporting; Energy Disclosures — Corporate sustainability reporting MAINTAINING PRODUCTIVE WORK ENVIRONMENT
  • 25. INVESTOR-OWNER ROI MOTIVATION INCREASING REVENUE/ASSET VALUE — Valuation driven by rental income (e.g., NOI Metrics) — Comparison to other investment opportunities — Always maintain market flexibility (e.g., Sell property) STAKEHOLDER PERCEPTION OF FIRM — New reporting requirements in energy efficiency and GHG emissions ©2013 Yudelson Associates SMART BUILDINGS ADVANCE SUSTAINABILITY GOALS — For both institutional investors and tenants
  • 26. PERFORMANCE DISCLOSURE ©2013 Yudelson Associates LIVING BUILDING CHALLENGE Bullitt Center, Seattle, WA
  • 27. NET ZERO DEPENDS ©2013 Yudelson Associates ON HEIGHT
  • 28. ©2013 Yudelson Associates USING PV TO GET NET ZERO
  • 29. HIGH PERFORMANCE ©2013 Yudelson Associates DESIGN APPROACH
  • 30. INTEGRATED DESIGN ©2013 Yudelson Associates COST TRANSFER SAME TOTAL BUT: Engineering costs less Invest in architecture Active to passive Fragile to robust Longer life Less cost vs. life-cycle Simpler design better
  • 31. NEW BUILDINGS INSTITUTE ©2013 Yudelson Associates 2012 ZEB/ZEC STUDY
  • 32. ZEB AND ZERO ENERGY: ©2013 Yudelson Associates CAPABILITY COUNTS
  • 33. ©2013 Yudelson Associates ZEBs AND ZECs BY TYPE
  • 34. ZEB AND ZEC BUILDINGS: TECHNOLOGY PENETRATION Daylighting High-Efficiency Lighting High-Efficiency Envelope High R-Value Glazing Natural Ventilation High-Efficiency HVAC Heat Recovery Cool Roof Radiant Ground-Source Heat Pump ©2013 Yudelson Associates UFAD/Displacement
  • 35. ©2013 Yudelson Associates COST PREMIUMS Fig.7
  • 36. ISSUES ©2013 Yudelson Associates FIRST COST CONCERNS DEMONSTRATE FINANCIAL COST-EFFECTIVENESS – Return on Investment (ROI) – Increase in building value – Risk mitigation – Intangibles (i.e., value of green label) ACTUAL BUILDING PERFORMANCE – Projects need continuous commissioning – Renewables have to work as planned – Behavioral issues & plug loads must be proactively managed
  • 37. ISSUES DESIGN KNOW-HOW ©2013 Yudelson Associates WIDESPREAD LOW-ENERGY DESIGN KNOW-HOW – Cost premium for good design getting smaller MORE STRINGENT ENERGY CODES – Reduces first-cost premium for net-zero – Better products at conventional costs SOLAR POWER COST REDUCTIONS/EFFICIENCY GAINS + INCREASES IN CONVENTIONAL ENERGY COSTS – Shorter payback for savings CARBON REDUCTION GOALS MAY INCREASE PERCEIVED/ACTUAL VALUE OF GREEN OR NET-ZERO BUILDINGS
  • 38. CASE STUDY: ©2013 Yudelson Associates NREL — GOLDEN, COLORADO PHASE I: 220,000 SQ.FT. PHASE II: 138,000 SQ.FT. (OCCUPIED 18 MONTHS LATER)
  • 39. PROJECT PROCUREMENT DESIGN/BUILD 3 finalists from RFQ process Design to 10% level to confirm cost ©2013 Yudelson Associates $63 MILLION BUDGET (FIXED) GOVERNMENT PROJECT RULES OUTSIDE “PROCESS” CONSULTANT “FIXED-PRICE, VARIABLE-SCOPE” APPROACH
  • 40. NREL PROJECT ©2013 Yudelson Associates OBJECTIVES MISSION CRITICAL (3) HIGHLY DESIRABLE (15) STRETCH GOALS (8)
  • 41. NREL PROJECT ©2013 Yudelson Associates OBJECTIVES MISSION CRITICAL GOALS
  • 42. PROJECT OBJECTIVES MISSION CRITICAL (3) ©2013 Yudelson Associates Safety – Jobsite/At Work LEED Platinum ENERGY STAR Label
  • 43. NREL PROJECT OBJECTIVES ©2013 Yudelson Associates HIGHLY DESIRABLE GOALS
  • 44. NREL PROJECT OBJECTIVES HIGHLY DESIRABLE (15) ©2013 Yudelson Associates 800 staff capacity 25,000 BTU/sq.ft./year Architectural integrity Meet future staff needs Meet ASHRAE 90.1-2007 Support culture/amenities Expandable building Ergonomic work areas Flexible workspace Support future technologies “How to” occupant manual “Real-time PR” campaign Secure outsider collaboration Building information modeling Substantial completion by 2010 (24 months)
  • 45. ©2013 Yudelson Associates NREL PROJECT OBJECTIVES
  • 46. PROJECT OBJECTIVES IF POSSIBLE (8) ©2013 Yudelson Associates Net-zero design approach Most energy-efficient in the world LEED Platinum “Plus” ASHRAE 90.1-2007 + 50% Support public tours Visual displays: current energy efficiency National/global recognition and awards Support reduced personnel turnover
  • 47. ©2013 Yudelson Associates LOW-ENERGY STRATEGIES
  • 48. VENT FANS 7% DOMEST HOT WATER 0% PUMPS & AUX 1% DESIGN NREL RSF ENERGY CONSUMPTION EXT USAGE LIGHTS 0% 11% TASK LIGHTS 1% SPACE COOLING 8% SIMULATIONS LIGHTS TASK LIGHTS SERVER ELEC SERVER COOL SERVER RM FAN MISC SPACE HEATING 15% SPACE HEATING SERVER ELEC 32% SPACE COOLING PUMPS & AUX VENT FANS DOMEST HOT WATER MISC 24% EXT USAGE ©2013 Yudelson Associates SERVER COOL 0% SERVER RM FAN 1% Energy Demand Transpired Collectors Thermal Labyrinth Double-Skin Design Data Center: Heat Recovery/Cooling Natural Ventilation Daylighting
  • 49. ©2013 Yudelson Associates LEED PLATINUM
  • 50. ZONE RENEWABLE ENERGY ©2013 Yudelson Associates RSF ROOF 787 KW 3544 MBTU/YR RSF PARKING 540 KW 2432 MBTU/YR Meets site energy, source energy, energy emissions and energy-cost definitions of ZONE with only the roof and parking PV systems.
  • 51. ©2013 Yudelson Associates BEAUTY IN NUMBERS Zero
  • 52. ©2013 Yudelson Associates WHERE DO WE GO FROM HERE?
  • 53. THE FUTURE ©2013 Yudelson Associates IS GREEN BUT . . .
  • 54. ©2013 Yudelson Associates IF IT DOESN’T PERFORM . . .
  • 55. ©2013 Yudelson Associates IT CAN’T BE GREEN
  • 56. ©2013 Yudelson Associates THANK YOU!
  • 57. ©2013 Yudelson Associates STAY IN TOUCH!
  • 58. @jerryyudelson greenbuildconsult.com/blog jerry@greenbuildconsult.com ©2013 Yudelson Associates DOWNLOAD Slideshare.net/yudelson