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An Integrative Technical and Business Approach to District EnergyMatt Jungclaus | October 14, 2016 | Getting to Zero National Forum

Transforming global energy use to create a clean, prosperous, and secure low-carbon future.

Thinking Big in the Steel City

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How does a district scale help us achieve ZNE?

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Expand the boundaries to drive integrated solutions

Business as Usual District Lite Integrated District Solution

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Expand the boundaries to drive integrated solutions

Site ZNE Possible

Site ZNE Possible

Site ZNE NOT Possible

Each Building Cannot Achieve ZNE On Its Own

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Expand the boundaries to drive integrated solutions

Buildings Work Together to Collectively Achieve ZNE

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Expand the boundaries to drive integrated solutions

Buildings Work Together to Collectively Achieve ZNE

District scale and deep efficiency drives Zero Net Carbon

• Location: Pittsburgh, PA• 180 acre former steel mill site• 6MM gross ft2 of building floor area• 60% residential, 30% office, 10%

other• ZNE goal

Almono Zero Energy Community (design ongoing)

• Best-in-class efficiency standards• Central geothermal heat/cooling• Rooftop solar PV• Integrated financing solution

Whole-system design and business approach results in financially attractiveproposition for developers, tenants, and an Integrated Energy Services Provider

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Define clear goals, Involve all stakeholdersCommitting to a ZNE goal will lead to a suite of possible technical solutionsBring the team along to explore the balance:

Supply Demand

Produces more energy than it needs

Uses more energy than it produces

Produces more

District scale provides greater opportunity to share energy across the site

Adjacent community also

benefits from clean energy

Exchange Heat Across District,

River

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Aggregate and centralize key services

Integrated Energy

Services Provider (IESP)

Building Efficiency Financing

Renewable Energy Supply

Thermal Energy Supply

Operations & Maint

Energy Goal Mgmt

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Integrated Energy

Services Provider (IESP)

Building Efficiency Financing

Renewable Energy Supply

Thermal Energy Supply

Operations & Maint

Energy Goal Mgmt

The integrated technical and business plan manages site energy services to ensure that net-zero energy is profitable for an integrated energy services provider (IESP) andattractive to vertical developers and tenants

Capital Investments

Long-term Mgmt

Steady, Long-term

Returns

$150

$155

$160

$165

$170

$175

$180

$185

MarketBAU

Proposed Case

Con

stru

ctio

n C

osts

($/g

ross

sf)

Parcel Construction Costs

Incremental Cost ofEnergy Efficiency(On-Bill Financed)

Capital constructioncosts

Financing benefits IESP, developers, tenants

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

$2.00

Proposed Case BAU

Annu

aliz

ed C

osts

($/g

ross

sf/y

r)Annualized Tenant Energy

Costs

BAU AnnualizedEnergy CostsOn-bill financing

Thermal Energy

Electricity

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Keys to achieving ZNE at the District Scale

• Define clear goals, involve all stakeholders

• Leverage technical synergies

• Aggregate and centralize key services

• Build the value proposition for services providers

• Build a financially attractive suite of services

An Integrative Model for Net Zero Energy DistrictsRead more about our integrative business and energy model for net-zero energy districts at:

rmi.org/pdf_NZE_Districts_Brief

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THANK YOU

Matt Jungclaus | October 14, 2016 | Getting to Zero National Forummjungclaus@rmi.org

Transforming global energy use to create a clean, prosperous, and secure low-carbon future.