Archive for June, 2009

Building energy label prototype launched

June 25th, 2009 by Kevin Skurski

A prototype of ASHRAE’s building energy label, called Building EQ or Building Energy Quotient, was released at the annual ASHRAE conference in Louisville.  What do you think?

Prototype of BuildingEQ energy label

Prototype of BuildingEQ energy label

We agree that information is a necessary first step when it comes to making energy efficiency improvements in buildings, so the concept of a label is great.  I also like that there will be both an “asset rating” and and “operational rating.”  The asset rating is based on the design specifications and an energy model, while the operational rating is based on actual energy use after the building has been operational for at least a year.

One thing missing from the prototype, however, is information that relates the ratings to percentages of energy efficiency relative to peers, an average, or some other kind of baseline.  As it is with the colored bars, it sort of reminds me of the terrorist threat level ratings that people have a hard time understanding.  The top level in the Building EQ label actually does this by identifying an A+ as net zero energy.  So, maybe that’s the baseline – one level below that could be 85% efficienct, two levels below is 70% efficienct, and so on.  That might help users (building owners, managers, building service providers, potential building buyers) get a better idea of how much worse, say, a building rated “Fair” is than one rated “Very good.”

A lot of progress has been made though, and it is great to see it come to fruition with the release of the prototype.  The launch of the full program is scheduled for 2010.

What do you think of the label?  And another question for those of you who own, manage, or service commercial buildings…are you ready?

Productivity Helps to Sell Efficiency

June 22nd, 2009 by Kevin Skurski

Do you need help selling energy efficiency projects to building owners and managers?  First things first, if you’re not speaking the financial language of the CFO (as in “this will cost x, this will save you y”) you’re off to a bad start.   CFOs and other decision makers need to know how soon they will recoup enough in savings to surpass the amount of investment you’re recommending, return on investment, and other basic financial measures of a project.

But second, you might want to include other information that will make the ROI even stronger.  A post at Pike Research talks up the importance of estimating the productivity improvements that would come with a green retrofit.  They claim that “This market dwarfs the cost savings available from energy efficiency alone.”  And it might, and that’s not a bad thing – it adds fuel to the fire.  The difficulty, of course, is proving something so intangible.  The amount and cost of energy currently being used can be calculated, along with an accurate estimate of the savings that will come as a result of the projects you recommend.  The current lack of productivity and the improvement that would come with a green retrofit are much more difficult to prove.  But that doesn’t mean you shouldn’t include such arguments in your proposal.  Absolutely DO cite reports that show how productivity does improve and by how much if you can find them.  This will make your case even stronger.

Cap & Trade Bill to Create Billions in Revenue

June 10th, 2009 by Lucas Klesch

The Congressional Budget Office reported that the legislation on Cap & Trade once enacted would result in $24.4bn in profit from $845.6bn in revenue from 2010 to 2019.

The report estimates that the bulk of this money would come from the selling of offset emissions (greenhouse gas credits) at a price of $15 per tonne in 2011 rising to $26 in 2019.

Imagine if you could factor in that additional savings from doing an efficiency project to your building what the ROI would look like!  Even capitol projects will look extremely attractive.  This is going to work just like utility incentives do but with a much higher $/sqft impact on the ROI.

Global Study Touts Energy Use Reduction of 60% by 2050

June 8th, 2009 by Lucas Klesch

How do we get there?

MARKET TRANSFORMATION!

How do we do that?

  1. Strengthen building codes and energy labeling for increased transparency.
  2. Use subsidies and price signals to incentivize energy-efficient investments.
  3. Encourage integrated design approaches and innovations.
  4. Develop and use advanced technology to enable energy-saving behavior.
  5. Develop workforce capacity for energy saving.
  6. Mobilize for an energy-aware culture.

Why?

Worldwide buildings are the single greatest consumer of energy at 38% compared to Industry (33%) and Transportation (26%).  We cannot affect climate change until a coordinated worldwide effort to institute these six principles occurs.

What is your role?

Transforming the Market: Energy Efficiency in Buildings,” released April 27 by the World Business Council for Sustainable Development (WBCSD)

Building Operations & Efficiency – The Two Year Old Child

June 3rd, 2009 by Lucas Klesch

Sitting on the panel of BOMA’s “Best Practices in Energy Efficiency of Existing Buildings” it is quite clear the opportunities for improvement are vast.  The four common problems this panel of venerable experts tackled were:

  1. Outside Air Usage
  2. Scheduling
  3. Simultaneous Heating & Cooling
  4. Sensor Calibration

The framework of the discussion was centered around building operations, training, and practical experience in how to diagnosis, fix, and maintain the efficiency in the face of the 4 common issues.  Operating an efficient building is about knowing the design constraints of the buildings equipment, having highly trained staff who understand how the energy-using components and daily decisions play into the consumption and cost of operating the building, and visibility up and down the operation’s chain that tracks the four key metrics of a building (EUI, EnergyStar score, $/sqft & lbsCO2/sqft).

The operation and energy efficiency of existing buildings is like a 2-year-old childd – every thing is going well until you take your eye off them and then when you look back its a mess, stuff is broken and you are going to be spending way to much money to fix it!