Yorkland lcc 2010-r1

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Presentation on Life cycle costs for Intelligent Buildings

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Yorkland lcc 2010-r1

  1. 1. Building Automation and Security Integration Yorkland Controls - Honeywell June 2, 2010, Richmond Hill Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand Response David Katz, MBA, BA Sustainable Resources Management Inc. Tel: 416 - 493 - 9232 Fax: 416 - 493- 5366 Email: dkatz@sustainable.on.ca Building Intelligence Quotient Consortium Email: dkatz@building-iq.com 6/4/2010 1
  2. 2. AGENDA • Introduce CABAand IIBC that developed the BiQ and the LCC programs for GREEN and Intelligent Buildings • Examples of applying LCC to Green Building options • Other life cycle environmental attributes covered under Life cycle analysis • Example of LCC for intelligent building choices • Funding for the Energy and Demand Response options • Associations and agencies that have programs to help pay for the investments especially if they provide life cycle benefits. • Questions now and after on Panel Discussion 6/4/2010 2
  3. 3. Intelligent Buildings Why do we build dumb buildings? 6/4/2010 3
  4. 4. CABA Vision “The knowledge-based forum for industry leaders who advance the use of technology and integrated systems in the global home and building industry.” 6/4/2010 4
  5. 5. Technological Evolution of BUILDING AUTOMATION SYSTEMS IT Standardizing Information Presentation Models Wireless Interfaces and Email Alarms re ctu ru Growing Convergence of BAS and IT r as t T Inf I ar d Internet/Intranet ta nd BACnet/Lon Revolution o nS Direct Digital Controls i ces S erv Personal Computers ing ild Bu Mini Computers e al l eg rat Electronic Controls y In t a Electric Controls a tm s th Pneumatic Transmission s tem Sy of tion Copyright Frost & Sullivan olu Ev 6/4/2010 5
  6. 6. What “Information” is in a Building? Building automation systems Energy management Security Digital signage Facility mgmt. and visitor mgmt. POS Consumables Parking Tenant technology Property mgmt. and back office …more 6/4/2010 Copyright ® 2007 The Fourth Utility, LLC All Rights Reserved. Intelligent Buildings Confidential 6 Copyright ® 2006 The Fourth Utility, LLC
  7. 7. TECHNOLOGY ROADMAP FOR INTELLIGENT BUILDINGS FREE www.caba.org/trm 6/4/2010 7
  8. 8. Why Buildings: Huge Opportunities Wash 5% Cooking 5% Buildings use 71% Computers of electricity Electronics 5% 1% Other 4% Industr y Refrigeration 9% 33% Buildings 21% 39% Coolin Heating Transportation g 10% 32% 28% Light s Water 18% 12% Heat 13% Cooking 2% Other Computers 3% 10% Residential Refrigeration 4% Lights 28% Ventilation 7% Heating Commercial Office Equip 7% Water Heat 7% Cooling 16% Source: 2004 Buildings Energy 13% Databook with SEDS distributed to all end-uses 6/4/2010 8
  9. 9. Reducing Building Cost Lighting Elevator Services and Technologies 24/7 Monitor HVAC Fire Video surveillance Access Energy Copyright ® 2007 The Fourth Utility, LLC All Rights Reserved. 6/4/2010 9
  10. 10. Better Tenant and High Speed Internet / Wireless Common Area Ambient Music / TV Experience Audio – Video Conf Services and Technologies Voice Communications Visitor management Interactive media Digital signage Facilities Management Copyright ® 2007 The Fourth Utility, LLC All Rights Reserved. 6/4/2010 10
  11. 11. Smarter Building / Property High Speed Internet / Wireless Lighting Ambient Music / TV Elevator Audio – Video Conf 24/7 Monitor IP Telephony HVAC Visitor management Fire Interactive media Video surveillance Digital signage Access Future Applications Energy Copyright ® 2007 The Fourth 6/4/2010 Utility, LLC All Rights Reserved. 11
  12. 12. Technology Usage/Purchase Plans Technology Currently Use Might Purchase • Smart Telephony 30% 64% • Telepresence 15% 64% • Active RFID 9% 64% • Smart Landscaping 9% 55% • Intelligent Bathrooms 9% 52% • Audio/Video Support 39% 48% • Combined Heat and Power/ 39% 45% Alternative Energy • Automated Parking 12% 45% • Green Buildings and LEED 48% 42% Certification • Digital Signage 21% 39% 6/4/2010 12
  13. 13. Your Information Source for Home & Building Automation 1173 Cyrville Road, Suite 210 Ottawa, ON K1J 7S6 613.686.1814 888.798.CABA (2222) 613.744.7833 caba@caba.org www.caba.org www.caba.org/samples 6/4/2010 13
  14. 14. Intelligent and Green Building Investments Typical problems that LCC can resolve: Having lower life cycle costs provides the incentive to overcome the lower first cost or budgetary restrictions. Building valuations that look at the revenues and the operating costs are improved by having the lower operating costs of better facilities. Making repairs to existing equipment versus advancing the purchase of new better performing equipment 6/4/2010 14
  15. 15. Application to design and construction process LCC analysis has many applications in the capital asset, buildings and infrastructure projects that use the design and construction process. Choosing the appropriate materials and costing out the operating and maintenance cost of different alternatives provides the design and construction professional the ability to include the owner’s financial criteria as part of the process. 6/4/2010 15
  16. 16. EVALUATING AND PRESENTING THE RESULTS Evaluation approaches Total present value Net present value Simple payback True payback Equivalent uniform annual cost Rate of return KWH savings/investment dollar 1. Savings/benefit to investment ratio 2. Graphic analysis 6/4/2010 16
  17. 17. How do Intelligent and GREEN buildings compliment each other? Using same Life Cycle Cost principles for Insulating Glass Alternatives Energy Modeling – LEED and Green Globes H V A C Equipment and Building Automation Impacts Energy Price Inflation and Demand Response Programs 6/4/2010 17
  18. 18. Green Building Perspective • Energy – Efficiency - Metering - Onsite Emergency & Renewable generation – GridWise capable - Demand Response ready – Net Zero • Water – Efficiency – Metering – Treatment – Cleaning- Landscaping • Environmental Management – Storage Tanks - Mold – Maintenance – Operations – Emergency Response - Training • Indoor Environment – Daylighting – CO2 and CO monitoring – IAQ Controls – Filters • Emissions, Effluent and Other Impacts on the Environment Noise – NOX – SO2 – Chemicals – Transportation – Heat Island Roofs 6/4/2010 18
  19. 19. 6/4/2010 19
  20. 20. 6/4/2010 20
  21. 21. Electricity and Peak Demand Charges –Time of Use Rates ????¢ 8¢ ? 12¢ ? 4.7¢ / 5.5¢ 6/4/2010 21
  22. 22. Conventional Cost Analysis Average Payback Period (PP) and Return on Investment (ROI) on single technology products. (Source: Energy Cost Savings Council)
  23. 23. Softcoat LowE Meets the Code and provides lowest first cost. 6/4/2010 23
  24. 24. Triple Glazing & Heat Mirror Alternatives cost more – but save more energy 6/4/2010 24
  25. 25. Window Energy Film Applications Existing Glass can be improved to lower HVAC costs 6/4/2010 25
  26. 26. Window Energy Film Terminology 6/4/2010 26
  27. 27. IG Insulating Properties 14.30 16.00 14.00 12.00 9.09 8.00 10.00 8.00 3.45 4.00 6.00 2.22 4.00 2.00 - ) ) ) 1" 1" 1" r r r (A (A (A -E -E le w w b ou Lo Lo D d t of ar S H Data obtained using L.B.L. (Lawrence Berkeley Laboratories) Window 5.2 analysis program (nfrc/ashae) 6/4/2010 27
  28. 28. IG Solar Heat Gain Coefficient 0.70 0.67 0.70 0.60 0.50 0.38 0.32 0.30 0.40 0.30 0.20 0.10 - -E -E e -E le bl ow w ip w ou Lo Lo Tr tL D e d le f it ar So ip nl H Tr Su 6/4/2010 28
  29. 29. Reduce Energy Bills (Operating Costs) 6/4/2010 29
  30. 30. Reduce HVAC Requirements (Capital Costs) 6/4/2010 30
  31. 31. Reduced Lighting Requirements (Capital & Operating Costs) 6/4/2010 31
  32. 32. Risk and sensitivity to above analysis. Fuel Escalation could less than 4% causing Breakeven to be longer R value energy saving assumptions may not be proportional as assumed. Solar Gain may have greater energy saving and peak shaving impacts. Difference in initial HVAC capital costs should also be considered. Other positive attributes like quiet and no mold may be more valued than energy savings. 6/4/2010 32
  33. 33. Is this Tinted Glass Building Green and Intelligent ? What are the tradeoffs in HVAC, Daylighting & Productivity 6/4/2010 33
  34. 34. Comfort “The best sustainable designs are not just environmentally responsible. They also produce buildings where employees can thrive and productivity can soar” Christine Ervin President and CEO U.S. Green Building Council “Using green building strategies can result in increases in occupant performance measures by 6 to 26 percent.” William D. Browning Founder of Green Development Services and Senior Associate of Rocky Mountain Institute 6/4/2010 34
  35. 35. Sustainability Matrix The David Lucile Packard Foundation Los Altos Project Net Present LEED™ LEED™ LEED™ LEED™ Living Market Values Certified Silver Gold Platinum Building 30 Years $22.7 $19.6 $19.7 $18.5 $18.3 $18.7 60 Years $62.9 $45.3 $36.7 $27.8 $23.7 $19.6 100 Years $348.9 $218.4 $166.9 $95.8 $62.2 $20.8 Total Savings over Market $ - $3.1 $3.0 $4.2 $4.4 $4.0 after 30 years http://www.packard.org/pdf/2002Matrix.pdf 6/4/2010 35
  36. 36. Financial Benefits of Green Buildings 6/4/2010 36
  37. 37. LCC calculation of Greg Kats –former DOE and IMPVP Executive 6/4/2010 37
  38. 38. Green and Intelligent Building Convergence Review Energy management for HVAC, Lighting & Demand Response – CBIP – Energy Star Green Buildings – Environment - LEED & Green Globe Access and Security for safety of occupants and visitors Cabling and Wireless to increase revenue and lower costs Communications to increase value and productivity Digital Signage for instant information and advertising Interconnectivity to other buildings and the community Smart Grid and Demand Response Ready 6/4/2010 38
  39. 39. Who is working on bringing these issues all together to evaluate alternatives and make sound economic choices? CABA INTELLIGENT & INTEGRATED BUILDINGS COUNCIL Developed the BIQ Rating System for IB with Appraisal Institute and EPA Energy Star support www.caba.org/biq Life-Cycle Cost Analysis Tool with Reed Construction Data/RSMeans www.caba.org/lifecycle Developed a New Intelligent Building Roadmap www.caba.org/ibrm 6/4/2010 39
  40. 40. Analyzing the Life Cycle Cost of Integrated Building Systems Produced by: Thomas J. Lohner, P.E. Vice President, TENG Solutions 6/4/2010 40
  41. 41. Systems Integration - Comparative Life Cycle Cost You Can Not Afford Not to do it Right 6/4/2010 41
  42. 42. Facility Integration Life Cycle Costs First Cost Changes, Additions & Upgrades Operating & Maintenance Utility Costs 6/4/2010 42
  43. 43. Typical Building Approach to Automation No Integration ! 5 User Interface Workstations! Emergency Generator Main Service Switchgear Computer Room A/C UPS Door Access Control & HVAC Control System Lighting Control System Intrusion Detection Fire Management System
  44. 44. Non-Integrated Building Engineering Left up to Contractors Sole Sourcing Required to Provide Integration - $$$$ Stand Alone Systems - Single Purpose Nobody Responsible for Technology Integration 6/4/2010 44
  45. 45. Partial Integration Concept Proprietary Control Sub-systems Modbus Database Client FMS Workstation Server Main Service Switchgear Web Server Facility IP Network Security Console Emergency Generator SNMP over IP Computer Web Server Room A/C Web Server Web Server Web Server UPS Door Access Control & Lighting Control System HVAC Control System Fire Management System Intrusion Detection
  46. 46. Partial Integration Issues Software Integration on IP networks Use Web Enabled - FMS Application Program Methodology Employed for Existing Buildings Hardware Intensive - Many I/O Servers 6/4/2010 46
  47. 47. BENEFITS Partial Integration Single User Interface for all Systems Web based GUI - Defacto Standard Permits Migration to Open Control Networks - Competitive Bids ! Permits Development of Campus Wide Relational Database Database Permits - Maintenance Management , Energy Management , Asset Management, etc. 6/4/2010 47
  48. 48. Full Integration Concept Open Standards Based Control Sub-systems Modbus Database Client FMS Workstation Server Main Service Switchgear Web Server Facility IP Network Security Console Emergency Generator SNMP over IP Web Server LONTALK - EIA 709.1 & Computer Web Room A/C BACNET – ANSI/ASHRAE Server 135A UPS Door Access Control, Intrusion Detection, Lighting & HVAC Control System Fire Management System
  49. 49. Full Integration Issues Open Standards Applied Where Possible I/O Servers Minimized Number of Devices Reduced - Shared Information 6/4/2010 49
  50. 50. BENEFITS Full Integration Same as Partial Integration Approach PLUS Competitive Bids in each Building Integrated Building Sub-systems Lighting, HVAC, Power Management and Security Lowest Life Cycle Cost Approach 6/4/2010 50
  51. 51. Life Cycle Cost Analysis Assumptions 150,000 SF Building Major M & E Equipment Cost - $6.00/SF ($18.00/SF TOTAL) Proprietary Systems Life Cycle - 7 years (FAR) Replacement Cost = 125% of the Initial System Cost 50% of the Proprietary Systems are Replaced (Next Generation) 20% of the Open Systems are Replaced (Age & Obsolescence) Average Cost per Control Device - $400 Open and Proprietary Control Devices Base Bid Costs are the Same Training Costs - $3000/ GUI; $1500/ Protocol; 50% of 1st year cost for years 2 and up 6/4/2010 51
  52. 52. Life Cycle Cost Analysis Assumptions Base Year Base Year Annual Dynamic Initial Service Changes & Control Sub- Cost Contract Modificatons systems ($/SF) ($) (% of 1st Cost) HVAC Controls $1.5/SF 15,000 2% Lighting Controls $1.0/SF 10,000 3% Power Monitoring $0.5/SF 5,000 1% Intrusion Detection $0.3/SF 3,000 2% Total $3.3/SF $ 33,000 $39,000
  53. 53. Comparative First Costs Non- Integrated Partial Full System Component Building Integration Integration Graphical User Interface - Hardware & Software 5 @ $15K 1 @ $20k 1 @ $20k Equipment Networking Uprades 0 4 @ $2k 4 @ $2k Web Servers 0 5 @ $10k 3 @ $10k Control Device Reduction (5%) 0 0 -24750 TOTAL $75,000 $78,000 $33,000 Full Integration Savings $42,000 $45,000 No Account For Division 17000 Savings - 20 to 30%!!!
  54. 54. Non-Integrated HVAC, Lighting & Intrusion Detection Echelon World Headquarters Dimmable Lighting Control VAV Boxes No Occupancy Control Blinds & 24v Wiring
  55. 55. Integrated HVAC, Lighting, Intrusion Detection & Blind Control Echelon World Headquarters User Scene Control Switch Lighting, HVAC & Occupancy Sensor Control Trunk Sensor and 120v Wiring
  56. 56. Changes, Additions and Upgrades Issues Cost Premium Paid for Additions & Changes to Proprietary Controls Limit Scope of Future Improvements and Modifications Cost Premium for Non Competitive Service Contracts 6/4/2010 56
  57. 57. Changes, Additions and Upgrades (Annual Costs- 2nd Year & On ) Non Competitive Non- Cost Integrated Partial Full O & M Cost Issues Premium Building Integration Integration Service Contracts 25% $ 41,250 $ 41,250 $ 33,000 Future Additons & Remodeling 25% $ 49,500 $ 49,500 $ 39,600 Future Software Upgrades 5 @ $1k 1 @ $2k 1 @ $2k Year 7 Replacement Cost Reserve ( 9% APR) $ 33,629 $ 33,629 $ 13,452 Total $ 129,379 $ 126,379 $ 88,052 Full Integration Savings $ 41,327 $ 38,327
  58. 58. Operating and Maintenance (Annual Costs- 2nd Year & On ) Non- Integrated Partial Full System Component Building Integration Integration Training $ 11,250 $ 5,250 $ 3,750 Improved O & M Staff Efficiency 0 SOFT SOFT IT Support 5 @ $2k 1 @ $3k 1 @ $3k Management Reporting 0 (3 @ $1k) (3 @ $1k) Total 21,250 $ 5,250 $ 3,750 Full Integration Savings $17,500 $ 1,500 Computerized Maintenace Management $ 25,000 First Cost (Extend Major M & E Equipment Life; 25yrs vs 20yrs) Future Worth ($ @ Yr 20) $ 180,000 Present Worth (P/F @ 9%) $ 32,112
  59. 59. Typical Energy Use Profile Other (Elevators, etc.) 5% Ave Annual Energy Power Use 25% Ave Annual Energy $0.07 / SF / YR Use $10,000 / YR $0.33 / SF / YR Lighting $50,000 / YR TOTAL HVAC $1.33 / SF / YR Power $200,000 / YR Other HVAC Lighting 30% Ave Annual Energy 40% Ave Annual Energy Use Use $0.4 / SF / YR $0.53 / SF / YR $60,000 / YR $80000 / YR
  60. 60. Energy Costs (Potential Annual Cost Savings) Non- Savings Energy Integrated Partial Full System Component Factor Cost ($) Building Integration Integration Integrated Lighting & HVAC Control 5% $60,000 0 0 $3,000 Improved Load Factor ( .5 to .55) 5% $200,000 0 $10,000 $10,000 Better Maintained Equipment 1% $60,000 0 $600 $600 Coordinated Supply/Demand EMS Strategies 5% $200,000 0 $10,000 $10,000 Integrated Building Control System Savings $0 $20,600 $23,600
  61. 61. System Integration Life Cycle Cost Summary Non- Integrated Partial Full Life Cycle Cost Component Building Integration Integration Comparitive First Cost $75,000 $78,000 $33,000 Changes , Upgrades & Additions $129,379 $126,379 $88,052 Operating & Maintenance $21,250 $5,250 $3,750 Ut ility Cost $200,000 $179,400 $179,400 Net Present Value $2,325,232 $2,074,091 $1,773,493 Discount Rate 9% Life Cycle Period (yrs) 10 Savings $551,739 $300,598
  62. 62. Conclusion: Full Integration will Result in the Lowest Net Present Value The Value of the Integrated Approach will Increase w/ IT Advances Information will be your Competitive Advantage 6/4/2010 62
  63. 63. What are the opportunities to get funding for upgrades and retrofit alternatives that provide lower life cycle costs? Federal Government Programs Ontario Energy Board funding for Enbridge and Union Gas Demand Side Management Ontario Power Authority Conservation Programs Local Distribution Companies – Powerwise Energy Service Companies (ESCO) Financial Institutions for Leasing or Borrowing Private energy companies for onsite generation Demand Response and Smart Grid options 6/4/2010 63
  64. 64. Federal Programs Available Natural Resources Canada's Office of Energy Efficiency now offers the ecoENERGY Retrofit Incentive for Buildings, the commercial/institutional component of the ecoENERGY Retrofit financial incentives for existing homes, buildings and industrial processes. If you have not yet started a new energy efficiency project, you could receive the lesser of $10 per gigajoule of estimated energy savings or 25 percent of eligible project costs. The program ends in March 31st 2011 or when funds run out. When applying, you will need to provide a pre-project energy audit of your buildings. As well, you cannot incur any costs related to the project until you receive a signed Contribution Agreement. Website: http://oee.nrcan.gc.ca/commercial/financial- assistance/existing/retrofits/index.cfm?attr=0 6/4/2010 64
  65. 65. Provincial Programs Available Ontario Power Authority – New Construction Program will build on CBIP concept of energy modeling and payment or Low rate interest to facilitate better energy performance. Demand Response 3 – contractual agreement for 100 or 200 hours – incentives paid to schedule by term and amounts. ERIP – Local distribution company programs 6/4/2010 65
  66. 66. Other Programs Available Renewable and Clean Standard Offers Toronto Better Building Partnership Toronto Atmospheric Fund – Financing BOMA Toronto – CDM OPA for Continuous Commissioning and Next Gen Building Automation Tax credits and Class 43 Accelerated Depreciation on qualified equipment 6/4/2010 66
  67. 67. Financing Options Self – Finance – Your cost of money Toronto Atmospheric Fund – Financing Lease or Rent – morEnergy Options Low interest loans – Banks and Credit Unions Energy Service Companies using Performance contracts Carbon Credits and other Trading Schemes 6/4/2010 67
  68. 68. Demand Response Marketplace and DR programs in Ontario Demand-Response-Shop.com Collaboration Project with Sheridan College-Building Intelligence Quotient- RFQ Strategies partially funded by Ontario Centres of Excellence David Katz BiQ Program Manager Principal - Sustainable Environmental Solutions Connectivity Week - May 24, 2010 Information on Ontario Power Authority Programs are generalizations and subject to change 6/4/2010 68
  69. 69. Demand Response and BAS Improvements Ontario Power Authority Integrated Power System Plan Conservation - LEED – Green Globe –BOMA BESt Conservation Measures - Technology Distributed Generation Opportunities Standard Offers – Renewable – Clean Energy Demand Response Programs DR Technologies – Building Sector Demand Response Shop website Smart Grid –Building2Grid optimization Questions 6/4/2010 69
  70. 70. Conservation Objectives Develop a Culture of Conservation Provide the CDM programs to reduce MW: New programs in all sectors – Public – Private MASH, Residential, Commercial, Industrial New technologies – Savings must be measurable Summer Peak – Demand Response Programs Electrical energy savings and fuel switching HVAC, Lighting, Power Quality, Power Factor Incentives pay up to $800/kW or $0.10/kWh 6/4/2010 70
  71. 71. Old and New Technologies Previous technologies now economic New technologies save and measure it Building Automation more Intelligent Occupancy, Demand HVAC, Daylighting LEED and Green Globe Credits Life cycle costs and low cost of funds Peak and Energy reduction targets now mandated to each of 80+ Ontario LDC’s 6/4/2010 71
  72. 72. Distributed Generation Energy costs only going up even with CDM programs. NERC/FERC Reliability rules in harmony with Canadian Feed-In-Tarff and Standard Offers FIT 20 year fixed Range - PV/$0.802/kWh Rooftop <10kW going down to $0.433/kWh for < 10 MW on ground Wind, Hydro &Biomass – Range from $0.10-$020/kWh with some peak premiums and some escalation to CPI CESOP–On Hold $0.081/kWh Peak and $0.0432 Off peak with some fuel price adjustments Not on HEAT portion Only for certain hours and 8 months Demand Response Programs took precedent in IPSP 6/4/2010 72
  73. 73. Demand Response Technologies Lighting – Dimming – Occupancy -Daylighting Raise Cooling Temperature – Casual Day Clothes Chiller Optimization – Hartman LOOP Chillers - Gas Driven – Absorption Thermal Storage – ICE - Water VSD – Pumps – Fans - Reprogram On site Generation – Economics? Windows - Shades -Tinting 6/4/2010 73
  74. 74. Abitibi Consolidated Company of Canada Air Products Canada Limited Algoma Steel Inc. Atlantic Packaging Products Ltd. Bowater Canadian Forest Products, Inc. CPower Inc. CVRD Inco Limited Direct Energy Marketing Limited Energy Advantage Inc. Energy Curtailment Specialists Inc. EnerNOC Inc. Enershift Corporation Essroc Canada Inc. Lafarge Canada Inc. NRGen Inc. Praxair Canada Inc. Sobeys Capital Incorporated St. Marys Cement Inc. (Canada) St. Marys Paper Corp. Tembec Industries Inc. Wescast Industries Inc. 6/4/2010 74
  75. 75. Demand Response #1 Key Program Features: The DRP is a voluntary program that allows participants to receive compensation for curtailing the electricity demand of their Projects. Projects can be based on load interruption, load shifting or behind the meter generation (excluding diesel, coal, bi-fuel, and bio-diesel). No maximum on the number of hours of operation. Load curtailment is voluntary. Minimum of 0.5 MW load reduction, achievable for at least one hour in a relevant season. No financial penalties for under or over performance. Participants offer their own ‘strike price’ on a monthly basis, at which they are willing to curtail load. The Participant’s strike price must be higher than the minimum defined Floor Strike Price for the month. Project applications must include a Measurement and Verification (M&V) Plan, acceptable to the OPA and all curtailments must be verified by an M&V Consultant. Participants receive monthly payments for curtailment. 6/4/2010 75
  76. 76. Demand Response #2 Contractual response load shifting. Availability payment $/MWh for term of contract. Higher availability for higher reliability. Minimum contracted hours with penalties for non-conformance. Minimum differential price. Differential set by time period and by season. Published one month in advance of season. For each hour of active load reduction, the differential is the difference between the average HOEP for all hours in that time slot for the week, and the average of all offpeak hours in the week. Participant is paid the difference between the OPA Minimum Differential and the Actual Differential for all hours of the week where load was curtailed, if the difference between the OPA Minimum Differential and the Actual Differential is positive. Participant may also be eligible for peak premium incentive and location specific incentives 6/4/2010 76
  77. 77. Demand Response #3 Contractual Load Shedding with DR aggregator Schedule Term (1, 3, or 5 yrs) Contracted Dispatch Period Election of Option A (100 hrs) or Option B (200 hrs) Not Fully Available for Curtailment Election: (1) using the four hour period prior to Curtailment or (2) the four hour period prior to receiving an Activation Notice Different rates for Standard, Premium, Discount areas Some areas of province are X no participation allowed due to system conditions and contracts with others. 6/4/2010 77
  78. 78. 6/4/2010 78
  79. 79. List of Participating Aggregators Some withdrew 6/4/2010 79
  80. 80. 6/4/2010 80
  81. 81. (BUILDING INTELLIGENCE QUOTIENT CONSORTIUM) IN COLLABORATION WITH Sheridan College Institute of Technology and Advanced Learning LAUNCH DEMAND-RESPONSE-SHOP-CONSORTIUM (DRSC) AND DEMAND-RESPONSE-SHOP.COM AND .CA
  82. 82. - an online tool Rating and Certification (demonstrates the added value) + Upgrade Design and Implementation Guidance (demystifies implementation)
  83. 83. SCREEN Of BiQ For building info after log- in 6/4/2010 83
  84. 84. Building Intelligence Quotient Assessment Chart of BiQ rating for each section generated as part of the report Report for Middleton Hall Middleton Hall achieved an overall rating of 78% at the New system/Upgrade Stage Integrated design Education Selection of sub-systems Value factors for automation systems Business considerations Subsystem stand-alone custom features Subsystem stand-alone performance Interaction among subsystems BAS Equipment 0 20 40 60 80 100
  85. 85. Secure Procurement System for RFI, RFQ and RFP with on line submissions and processing reverse auction and other capabilities
  86. 86. Secure Procurement System for RFI, RFQ and RFP with on line submissions and processing reverse auction and other capabilities
  87. 87. The Sheridan Institute of Technology and Advanced Learning is one of Canada's premier polytechnic institutes and is dedicated to exceptional applied learning and graduate success. They are a leader in providing skills- based educational programming that integrates theory with application, preparing students for careers in visual and performing arts, business, community services and technical fields. Sheridan serves close to 15,000 full-time students annually at its campuses in Oakville and Brampton, Ontario 6/4/2010 87
  88. 88. While a few large companies with heavy energy loads and significant peak demand charges already know about the various demand response (DR) programs, many smaller companies do not. The current energy demand issues are the responsibility of the facility or production personnel while the supply side issues are currently under the procurement and purchasing responsibilities. The need for an integrated approach to critically evaluate the opportunities for load curtailment, the resulting costs or inconvenience and the benefits from the various offers from the DR aggregators will be addressed by the Demand- Response-Shop.com and .ca websites and the on line Building Intelligence Quotient and DR procurement service it will provide. 6/4/2010 88
  89. 89. The key objective is to educate users on the various demand response programs. It will gather the vast experience in DR from global jurisdictions and provide the framework for comprehensive rational decision analysis for participating in the DR program. The site will provide a forum and blog to discuss and develop greater recognition of the many different loads that can be part of the demand response in a building and other facilities. The DR website and the Demand- Response-Shop-Consortium DR services will provide the user with cost effective time and effort to acquire and evaluate the DR alternatives that provide optimum value from the DR payments. The benefit of using the CABA BiQ program prior to pursuing DR payments allows the customer to evaluate all the energy management opportunities especially the building automation controls that will make the DR program respond as required when called upon with short notice or automated dispatch. 6/4/2010 89
  90. 90. The targeted user groups are the DR aggregators approved by the regulatory authorities and all the potential customers who want independent assessments of their offerings. While each aggregator may have their own DR assessment methodology and target only certain loads this website will meet the needs of the end users. For a small fee early adopters will be provided with a rating and the development of their unique site specific on line for DR investment and incentives. The competitive process and the financial evaluation of the alternatives will increase DR life cycle benefits. The website will include the publication of these pilot DR procurements on the site and in energy related journals to increase DR market penetration. Links will be provided to associations such as CABA, BOMA and IFMA to have their members benefit from this program. Work is underway with partial funding from the Ontario Centre for Excellence – Energy Division 6/4/2010 90
  91. 91. Summary GRID has massive investment needs Conservation finally getting recognition Renewable energy needs incentives but offer environmental and health benefits Distributed Clean generation can play a large role and can be profitable Demand Response can be part of solution Peak Shaping – Shedding – Shaving Education on DR and the Building 2 Smart Grid is essential – Demand-Response-Shop.com addressing the need and providing the facilitation for maximizing DR incentives and linking to energy efficiency 6/4/2010 91
  92. 92. Contact Info David Katz, MBA, BA Sustainable Resources Management Inc. 6 Morning Gloryway Toronto, Ontario Canada M2H 3M2 Tel: 416-493-9232 Fax: 416-493-5366 Email: dkatz@sustainable.on.ca Building Intelligence Quotient Consortium Email: dkatz@building-iq.com 6/4/2010 92

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