public sector life cycle costing for asset management
DESCRIPTION
Life Cycle Costing for Public Sector BuildingsTRANSCRIPT
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March 27 & 28, 2014March 27 & 28, 2014Toronto, OntarioToronto, Ontario
LIFE CYCLE COSTING FOR THE PLANNING, DESIGN, CONSTRUCTION LIFE CYCLE COSTING FOR THE PLANNING, DESIGN, CONSTRUCTION AND OPERATION OF INTELLIGENT AND GREEN BUILDINGSAND OPERATION OF INTELLIGENT AND GREEN BUILDINGS
David Katz, MBADavid Katz, MBAPresident President
Sustainable Resources Management Inc. Sustainable Resources Management Inc. Tel: 416 - 493 - 9232Tel: 416 - 493 - 9232
Email: [email protected]: [email protected]
6 th Public Sector Life Cycle Costing for Asset Management
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Review the LCC issues for GREEN and Intelligent BuildingsReview the LCC issues for GREEN and Intelligent BuildingsExamples of applying LCC to Green Building optionsExamples of applying LCC to Green Building optionsOther life cycle environmental attributes covered under Life Other life cycle environmental attributes covered under Life cycle analysis and new reporting under Provincial programscycle analysis and new reporting under Provincial programsExamples of LCC for intelligent building choicesExamples of LCC for intelligent building choicesFunding for the energy savings and Smart Grid Funding for the energy savings and Smart Grid interoperabilityinteroperabilityAssociations and agencies that have programs to help pay Associations and agencies that have programs to help pay for the investments especially if they provide life cycle for the investments especially if they provide life cycle benefits.benefits.Review your interests and share info on any projects and Review your interests and share info on any projects and challenges of applying life cycle costs under budgetary challenges of applying life cycle costs under budgetary restraintrestraint
AGENDAAGENDA
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Intelligent and Green Building InvestmentsIntelligent and Green Building Investments
Typical problems that LCC can resolve:Typical problems that LCC can resolve: Having lower life cycle costs provides the incentive to Having lower life cycle costs provides the incentive to
overcome the lower first cost or budgetary restrictions.overcome the lower first cost or budgetary restrictions. Building valuations that look at the revenues and the Building valuations that look at the revenues and the
operating costs are improved by having the lower operating costs are improved by having the lower operating costs of better facilities. operating costs of better facilities.
Making repairs to existing equipment versus advancing Making repairs to existing equipment versus advancing the purchase of new better performing equipment that the purchase of new better performing equipment that saves energy and may qualify for different utility saves energy and may qualify for different utility incentives incentives
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Application to design and construction processApplication to design and construction process
LCC analysis has many applications in the capital asset, LCC analysis has many applications in the capital asset, buildings and infrastructure projects that use the design buildings and infrastructure projects that use the design and construction process.and construction process.
Choosing the appropriate materials and costing out the Choosing the appropriate materials and costing out the operating and maintenance cost of different alternatives operating and maintenance cost of different alternatives provides the design and construction professional the provides the design and construction professional the ability to include the owner’s financial criteria as part of ability to include the owner’s financial criteria as part of the process.the process.
LEED, BOMA BESt and other certification programs LEED, BOMA BESt and other certification programs now require using LCC. These programs also look at life now require using LCC. These programs also look at life cycle assessments for environmental impacts.cycle assessments for environmental impacts.
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Evaluating the alternativesEvaluating the alternatives
Evaluation approachesEvaluation approachesTotal present valueTotal present valueNet present valueNet present valueSimple paybackSimple paybackTrue paybackTrue paybackEquivalent uniform annual costEquivalent uniform annual costRate of returnRate of returnKWH savings/investment dollarKWH savings/investment dollarSavings/benefit to investment ratioSavings/benefit to investment ratio
Presenting the ResultsPresenting the Results
1.1.Graphic analysis – Cross over pointGraphic analysis – Cross over point
2.2.Bar and Pie Charts Bar and Pie Charts
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How do Intelligent and GREEN buildings compliment each other?
Integrated Design approach using Life Cycle Cost Integrated Design approach using Life Cycle Cost principlesprinciples
Building type, Envelope Design and OrientationBuilding type, Envelope Design and Orientation Energy Modeling – LEED and Green GlobesEnergy Modeling – LEED and Green Globes H V A C Equipment and Building Automation ImpactsH V A C Equipment and Building Automation Impacts Operations and Maintenance –Continuous Operations and Maintenance –Continuous
CommissioningCommissioning Energy Price InflationEnergy Price Inflation Smart Grid - Distributed Energy, Storage & Demand Smart Grid - Distributed Energy, Storage & Demand
Response Programs – Intelligent Load Management Response Programs – Intelligent Load Management
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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
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Oil and Gasoline Prices – NEB Site
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Natural Gas Price (NEB) Prediction
Wholesale Electricity Prices in Alberta (AESO) and Ontario (IESO)
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Ontario and CanadaPart of North America Smart GridElectricity and Peak Demand ChargesTime of Use RatesGlobal Adjustment more than Commodity now!
12¢ ?8¢ ?
????¢
4.7¢ / 5.5¢
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Excerpt Ontario Government Booklet - 2011
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Excerpt Ontario Government Booklet - 2011
Life Cycle Costing: Retrofit Applications
0 10 20 30 40 50 60 70 80
Site Structures
Garage
Balconies
Building Framing
Exterior Walls
Windows
Exterior Doors
Roofs
Heating and Cooling
Ventilation
Domestic Water Systems
Drainage
Plumbing
Power Supply & Distribution
Lighting
Emergency Power
Pre-Repair Service Life (yrs)
Total Design Life toReplacement (yrs)
Based on High-Rise Apartment Repair Needs Assessment CMHC 1998
Age of the building
Multi-Residential Building Service LifeApproximate design and pre-repair service life of the building elements
Conclusions:
First costs and rent revenues are only part of the Life Cycle Cost Story.
When all the repair items are totaled they may be as much as the cost of the original building.
Typical Building Maintenance CostsAnnual building renewal investment (as % of original building cost)
(Source: Energy Cost Savings Council)
Conventional Cost Analysis
Average Payback Period (PP) and Return on Investment (ROI) on single technology products.
Life Cycle Costing: New Building Design
Applications
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New Building DesignLCC and Sustainable Design TechnologyAn LCC assessment
can be used to assess options concerning site design, and material and equipment selection to improve overall building energy efficiency.
Typical Sustainable Technology Applications:
Green Roofs
Greywater recycling
Photovoltaics
Ground source heat pumps
Natural ventilation
Natural corridor and Riparian Zone
ECD Energy and Environment Canada Ltd.
Native plant species – Bullrushes, Canadian Goldenrod, and Switchgrass
Brownfield at mouth of the Keating Channel, Toronto, ON
Sustainable EcosystemsAppropriate Site SelectionLand that is already municipally serviced or has previously been built upon should be favoured for development over previously undeveloped areas to enhance local ecology and preserved ecologically sensitive areas.
Natural CorridorsWhen linked to natural areas, community green spaces can provide valuable wildlife habitat and migration pathways. Site design should encourage interconnected natural areas and wildlife corridors.
Light Pollution ReductionMinimizing outdoor lighting, without compromising safety, can significantly reduce environmental threats to nocturnal wildlife species.
Native Species PlantingUsing plants that are native to a site reduces irrigation, lowers pesticide and fertilizer use, and cuts maintenance costs. Site design should ensure 75% of plantings are native.
Roadway NaturalizationRoadway edges and easements can support plantings that provide habitat for natural corridors and can be designed to reflect topographical and environmental conditions.
Microclimatic DesignBuilding design that maximizes solar access in winter for passive solar heat gain and shades windows in summer; controls wind and snow exposure; insulates against energy loss with green roofs of earth shelters, and promotes green roofs reduces energy consumption,
Passive Solar HeatingBuildings with sufficient southern exposure can capture sunlight in winter and release it as heat, reducing energy costs. In the summer, trees, window overhangs and sunshades block sunlight, keeping the building cool.
Natural or Hybrid VentilationBuildings may be ventilated and cooled passively if designed to take advantage of temperature/pressure differentials inside and outside the building, thereby creating cross-ventilation. Natural ventilation can be combined with traditional systems in a hybrid design.
Solar-Powered Street FurnitureSigns, bus shelters, street lights, and parking meters can easily function off-grid with a small solar array.
Community-Based Energy GenerationRenewable energy comes from non-fossil fuel based sources, like the sun, wind, water or earth. Governments, utilities and individuals should consider these sources both for their environmental sustainability and their stable, long-term costs.ECD Energy and Environment Canada Ltd.
Wind turbine at the Canadian National Exhibition, Toronto, ON
Photovoltaic curtain wall spandrels
Photovoltaic bus shelter
Photovoltaic light
Vegetated "green" roof, Mountain Equipment Co-op, Toronto, ON
South-facing housing, Milton Keynes, UK
Sustainable Energy Sources
Eco-Industrial SynergiesOne company’s waste may be another company’s resource. Encouraging regional economic exchange of by-products and energy leads to increased energy efficiency, reduces pollution, decreases waste volumes, and creates new market opportunities.
Adaptive Re-Use of Existing BuildingsNew buildings consume approximately 50% of all materials produced. Re-using existing structures, or salvaging their materials (such as brick, steel, timber, doors, fixtures, etc) conserves large quantities of resources and helps to preserve existing urban/cultural infrastructure.
Recycled Material UseTires, concrete, asphalt, fly-ash, carpet, ceiling tiles, and metal products can all be recycled for use in urban infrastructure such as roads. Materials in open spaces, such as playground equipment and surfaces, benches, tables, bike racks and signs can be recycled, recyclable or re-usable.
Sustainable Material UseThe life cycles (or cradle-to-grave environmental effects) of materials should be considered in their selection. Variations in the ways concrete, steel, timber, carpet, etc. are produced, materially composed, used, and disposed of strongly affect their environmental impact.
On-site Composting and RecyclingNiagara Region has a waste diversion goal of 65% by 2012. For this goal to be realized, areas for the handling, storage and separation of recyclables should be commonplace, and composting should be a priority where food waste is being produced.
Gooderham and Worts Distillery District, Toronto, ON
ECD Energy and Environment Canada Ltd.
Mountain Equipment Co-op, Toronto, ON. Structure consists of salvaged timbers and fly-ash concrete.
Sustainable Resource Use
Improved Building AccessThe energy needed to transport goods and for commuting to building is often equal to the amount of energy needed to operate the building. To reduce energy consumption, access routes for goods should be optimized and walking distances to public transit should be shortened.
Pedestrian and Bicycle TrafficWalkable and bikeable communities expand transportation options, diversify neighbourhoods, and reduce reliance on automobiles. Foot and bike paths, denser urban fabric, reduced auto speeds, and sheltered bicycle parking should be a priority.
Alternative Parking Arrangements The minimum number of parking spaces required for a development is determined by the peak demand. This can be excessive in some circumstances and options such as parking in lieu and parking on alternative sites may be more desirable.
CarpoolingShared vehicle transportation reduces automobile usage and congestion. Convenient pick-ups areas and a voluntary database of occupants’ postal codes help to promote carpooling.
Alternative Fuel Re-Fueling StationsPublic interest in vehicles fuelled by alternative fuels (such as electricity, natural gas, ethanol and biodiesel) is increasing, but these vehicles need conveniently located re-fuelling stations to grow in number.
Hydrogen re-fuelling station, Canadian National Exhibition, Toronto, ON
ECD Energy and Environment Canada Ltd.
Bike lanes and bike storage facility
Designated carpool lot
Sustainable Transportation
Desirable and undesirable stormwater management practices
Water Table
Stream
Storm Sewer
Impermeable PavingPlanters
Permeable PavingBioswale
Riparian Zone
Stormwater ManagementSite design should focus on increasing ground infiltration of water and reducing quantity and off-site treatment of run-off. Practices include minimizing impermeable paved surfaces, storing water in catchment systems, increasing vegetation, and creating retention ponds and infiltration basins.
Bioswale DesignGrassed or vegetated drainage channels, an alternative to traditional curb and gutter stormwater management, retain water and break down road contaminants.
Snow Pile PlacementSnow piles should be placed away from drainage courses and storm drain inlets to diminish impact of salts and other toxins on stream courses.
Riparian Zone ProtectionVegetated transition areas between a body of water and upland area control erosion, filter run-off, and provide animal habitat.
Innovative Wastewater TreatmentGrey-water recycling, composting toilets, constructed wetlands and Living Machines can reduce overall water consumption and reduce BOD content in wastewater to levels lower than those produced through conventional treatment.
Bioswale, Water Pollution Control Lab, Portland, Oregon
Lving Machine wastewater facility, Nova Scotia
ECD Energy and Environment Canada Ltd.
Sustainable Water & Wastewater Services
Sample LCC Application to SustainabilityGreen RoofsDEARBORN, Michigan - Ford is installing an environmentally sound roof on its $2-billion redevelopment of its Rouge River manufacturing complex. Keith Schneider, program director of the Michigan Land Use Institute, praised the green roof plan as innovative, if not a little risky. The new Ford Rouge Center assembly plant construction is one of the largest industrial redevelopment projects in the US. The green approach is designed to save Ford $35
million, when compared with the cost of installing a conventional treatment system, Schneider says.
Greg Kats latest book is based on extensive financial and technical analysis of 150 green buildings across the U.S. and in 10 countries and provides the most detailed findings to date on the costs and financial benefits of building green.
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Among the study’s key findings: - Green buildings cost roughly 2% more to build than conventional non-green buildings and provide a wide range of financial, health and social benefits.1 - Green buildings reduce energy use by an average of 33%, resulting in significant cost savings. - Green buildings create roughly $1/square foot of value in increased employment by shifting spending from fossil fuel-based energy to more labour intensive domestic jobs in energy efficiency, renewable construction and new green industries.
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Softcoat LowE
Meets the Code and provides lowest first cost.
Life cycle cost considerations with simple example
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Triple Glazing & Heat Mirror
Alternatives cost more – but save more energy
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IG Insulating PropertiesIG Insulating Properties
Data obtained using L.B.L. (Lawrence Berkeley Laboratories) Window 5.2 analysis program (nfrc/ashae)
2.223.45 4.00
8.009.09
14.30
-
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
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IG Solar Heat Gain IG Solar Heat Gain CoefficientCoefficient
0.700.67
0.38
0.32 0.30
-
0.10
0.20
0.30
0.40
0.50
0.60
0.70
Double
Hard L
ow-E
Soft Low
-E
Triple
Low
-E
Sunlite
Trip
le
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Reduce Energy Bills(Operating Costs)
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Reduce HVAC Requirements(Capital Costs)
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Reduced Lighting Requirements(Capital & Operating Costs)
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Break-even Analysis using cash flow method
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Low E 2 Triple Glazing Heat Mirror
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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.
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Investment
Source: Sustainable Building Technical Manual
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Comfort
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Eliminate Condensation & Mould
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Sound Control
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Triple Glazing- Optimum Daylighting
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Is this Tinted Glass Building Green and Intelligent ?What are the tradeoffs in HVAC, Daylighting & Productivity
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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
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Financial Benefits of Green Buildings
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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
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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
Who is working on bringing these issues all together to evaluate alternatives and make sound economic choices?
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Produced by: Thomas J. Lohner, P.E. Vice President, TENG Solutions
Analyzing the Life Cycle Cost of Integrated Building Systems
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Systems Integration - Comparative Life Cycle Cost
You Can Not Afford Not to do it Right
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Facility Systems Integration Life Cycle Costs
First Cost Changes, Additions & Upgrades Operating & Maintenance Utility Costs
UPS
Computer Room A/C
Emergency Generator
Fire Management System
Door Access Control & Intrusion Detection
Lighting Control System
HVAC Control System
Typical Building Approach to AutomationTypical Building Approach to Automation
Main Service Switchgear
5 User Interface Workstations!
No Integration !No Integration !
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Non-Integrated Building Engineering Left up to Contractors Sole Sourcing Required to Provide
Integration - $$$$ Stand Alone Systems - Single Purpose Nobody Responsible for Technology
Integration
UPS
Computer Room A/C
Fire Management System
Emergency Generator
Main Service Switchgear
SNMP over IP
Web Server Web
ServerWeb Server
Web Server
Modbus
Web Server
Facility IP Network
Client FMS Workstation
Database Server
Partial Integration Concept Partial Integration Concept
HVAC Control System
Lighting Control System
Door Access Control & Intrusion Detection
Security Console
Proprietary Control Sub-systems
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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
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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.
UPS
Computer Room A/C
Fire Management System
Modbus
Emergency Generator
Main Service Switchgear
SNMP over IP
Web Server
Web Server
Facility IP Network
Client FMS Workstation Database Server
Full Integration Concept Full Integration Concept Open Standards Based Control Sub-systems
LONTALK - EIA 709.1 & BACNET – ANSI/ASHRAE 135A
Door Access Control, Intrusion Detection, Lighting & HVAC Control System
Web Server
Security Console
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Full Integration Issues Open Standards Applied Where Possible I/O Servers Minimized Number of Devices Reduced - Shared
Information
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BENEFITS Full Integration
Same as Partial Integration ApproachPLUS
Competitive Bids in each Building Integrated Building Sub-systems
Lighting, HVAC, Power Management and Security
Lowest Life Cycle Cost Approach
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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; $1500/ Protocol; 50% of 1st year cost
for years 2 and up
Life Cycle Cost Analysis Assumptions
Dynamic Control Sub-
systems
Initial Cost
($/SF)
Base Year Service Contract
($)
Base Year Annual Changes & Modificatons (% 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
Comparative First Costs
System Component
Non-Integrated Building
Partial Integration
Full Integration
Graphical User Interface - Hardware & Software 5 @ $15K 1 @ $20k 1 @ $20kEquipment Networking Uprades 0 4 @ $2k 4 @ $2kWeb Servers 0 5 @ $10k 3 @ $10kControl Device Reduction (5%) 0 0 -24750
TOTAL $75,000 $78,000 $33,000
Full Integration Savings $42,000 $45,000
No Account For Division 17000 Savings - 20 to 30%!!!
Blinds & 24v Wiring
Non-Integrated HVAC, Lighting & Intrusion Detection Echelon World Headquarters
VAV Boxes No Occupancy Control
Dimmable Lighting Control
Sensor and 120v WiringLighting, HVAC & Occupancy Sensor Control Trunk
User Scene Control Switch
Integrated HVAC, Lighting, Intrusion Detection & Blind ControlEchelon World Headquarters
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Changes, Additions and Upgrades Issues
Cost Premium Paid for Additions & Changes to Proprietary Controls
Limit Scope of Future Improvements and Modifications
Cost Premium for Non Competitive Service Contracts
Changes, Additions and Upgrades (Annual Costs- 2nd Year & On )
O & M Cost Issues
Non Competitive
Cost Premium
Non-Integrated Building
Partial Integration
Full Integration
Service Contracts 25% 41,250$ 41,250$ 33,000$ Future Additons & Remodeling 25% 49,500$ 49,500$ 39,600$ Future Software Upgrades 5 @ $1k 1 @ $2k 1 @ $2kYear 7 Replacement Cost Reserve ( 9% APR) 33,629$ 33,629$ 13,452$
Total 129,379$ 126,379$ 88,052$
Full Integration Savings 41,327$ 38,327$
Operating and Maintenance (Annual Costs- 2nd Year & On )
System Component
Non-Integrated Building
Partial Integration
Full Integration
Training 11,250$ 5,250$ 3,750$ Improved O & M Staff Efficiency 0 SOFT SOFT IT Support 5 @ $2k 1 @ $3k 1 @ $3kManagement 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$
Typical Energy Use Profile
Lighting
HVAC
Power
Other
HVACHVAC
30% Ave Annual Energy 30% Ave Annual Energy UseUse
$0.4 / SF / YR$0.4 / SF / YR
$60,000 / YR$60,000 / YR
LightingLighting
40% Ave Annual Energy 40% Ave Annual Energy UseUse
$0.53 / SF / YR$0.53 / SF / YR
$80000 / YR$80000 / YR
PowerPower
25% Ave Annual Energy 25% Ave Annual Energy UseUse
$0.33 / SF / YR$0.33 / SF / YR
$50,000 / YR$50,000 / YR
Other (Elevators, etc.)Other (Elevators, etc.)
5% Ave Annual Energy 5% Ave Annual Energy UseUse
$0.07 / SF / YR$0.07 / SF / YR
$10,000 / YR$10,000 / YR
TOTALTOTAL
$1.33 / SF / YR$1.33 / SF / YR
$200,000 / YR$200,000 / YR
Energy Costs (Potential Annual Cost Savings)
System ComponentSavings Factor
Energy Cost ($)
Non-Integrated Building
Partial Integration
Full Integration
Integrated Lighting & HVAC Control 5% $60,000 0 0 $3,000Improved Load Factor ( .5 to .55) 5% $200,000 0 $10,000 $10,000Better 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
System Integration Life Cycle Cost Summary
Life Cycle Cost Component
Non-Integrated Building
Partial Integration
Full Integration
Comparitive First Cost $75,000 $78,000 $33,000Changes, Upgrades & Additions $129,379 $126,379 $88,052Operating & Maintenance $21,250 $5,250 $3,750Utility Cost $200,000 $179,400 $179,400
Net Present Value $2,325,232 $2,074,091 $1,773,493Discount Rate 9%
Life Cycle Period (yrs) 10Savings $551,739 $300,598
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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
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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
Demand Response and BAS Improvements
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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 74+ Ontario LDC’s
Old and New Technologies
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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
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NEW- Demand Response #3
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Features & Benefits
New Building Automation Systems and Upgrades contribute to energy savings.
New chillers, VSD, Lighting Systems all offer more interoperability and controls
Most incentive programs require a measurement and verification plan as proof
You can’t manage what you can’t measure Intelligent buildings are GREEN and Sustainable
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Federal Government Programs Ontario Energy Board funding for
Enbridge and Union Gas Demand Side Management
Ontario Power Authority Conservation Programs
LDC and others on www.saveonenergy.ca Other provincial regulators funding their utility CDM
programs – Hydro Quebec and Gaz Metro - Others Energy Service Companies (ESCO) Financial Institutions for Leasing or Borrowing Private energy companies for onsite generation
What are the opportunities to get funding for upgrades and retrofit alternatives that provide lower life cycle costs?
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Public Sector Incentive Programs NRCan has a number of building upgrade
programs depending on size of building NRCan has developed new RETScreen tool
for energy efficiency Renewable and Clean generation incentives Peak Reduction and Demand Response
Programs pay for energy management systems that provide controls and M&V
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Other Programs Available
Renewable and Clean Standard Offers Toronto Better Building Partnership Toronto Atmospheric Fund – Financing OPA – CDM for all LDC’s (2011-2015) OPA for Continuous Commissioning and
Next Gen Building Automation Tax credits and Class 43 Accelerated
Depreciation on qualified equipment
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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
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Contact Info
David Katz, MBA, BADavid Katz, MBA, BASustainable Resources Management Inc. Sustainable Resources Management Inc.
6 Morning Gloryway6 Morning Gloryway
Toronto, OntarioToronto, Ontario
Canada M2H 3M2Canada M2H 3M2
Tel: 416-493-9232Tel: 416-493-9232
Fax: 416-493-5366Fax: 416-493-5366
Email: [email protected]: [email protected]