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Mr. David Katz BA, MBA Mr. David Katz BA, MBA Sustainable Resources Management Consultant & Project Manager for the Building Intelligence Quotient Consortium CABA

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Page 1: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Mr. David Katz BA, MBAMr. David Katz BA, MBASustainable Resources Management Consultant

&Project Manager for the Building Intelligence

Quotient Consortium

CABA

Page 2: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Lowering Life cycle Costs and Using CABA Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives Intelligent Building Quotient for OPA Incentives

and Demand Responseand Demand ResponseDavid Katz, MBA, BADavid Katz, MBA, BA

Sustainable Resources Management Inc. Sustainable Resources Management Inc. Tel: 416 Tel: 416 -- 493 493 -- 92329232Fax: 416 Fax: 416 -- 493493-- 53665366

Email: Email: [email protected]@sustainable.on.caBuilding Intelligence Quotient ConsortiumBuilding Intelligence Quotient Consortium

Email: dkatz@buildingEmail: [email protected]

Building Automation and Security IntegrationYorkland Controls - Honeywell

June 4, 2010, Richmond HillJune 4, 2010, Richmond Hill

Page 3: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

•• Introduce CABA and IIBC that developed the BiQ and the LCC Introduce CABA and IIBC that developed the BiQ and the LCC programs for GREEN and Intelligent Buildingsprograms for GREEN and Intelligent Buildings

•• Examples of applying LCC to Green Building optionsExamples of applying LCC to Green Building options

•• Other life cycle environmental attributes covered under Life Other life cycle environmental attributes covered under Life cycle analysiscycle analysis

•• Example of LCC for intelligent building choicesExample of LCC for intelligent building choices

•• Funding for the Energy and Demand Response optionsFunding for the Energy and Demand Response options

•• Associations and agencies that have programs to help pay for Associations and agencies that have programs to help pay for the investments especially if they provide life cycle benefits.the investments especially if they provide life cycle benefits.

•• Questions now and after on Panel DiscussionQuestions now and after on Panel Discussion

AGENDAAGENDA

Page 4: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Intelligent Buildings

Why do we build dumb buildings?

Page 5: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

CABA Vision

“The knowledge-based forum forindustry leaders who advance the use of technology and integrated systems in the global home and building industry.”

Page 6: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Pneumatic Transmission

Electric Controls

Electronic Controls

Mini Computers

Personal Computers

Direct Digital Controls

BACnet/Lon Revolution

Internet/Intranet

Growing Convergence of BAS and IT

Wireless Interfaces and Email Alarms

IT Standardizing Information Presentation Models

Evolution of Systems that m

ay Integrate all Building Services on Standard IT Infrastructure

Copyright Frost & Sullivan

Technological Evolution of BUILDING AUTOMATION SYSTEMS

Page 7: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Copyright ® 2007 The Fourth Utility, LLC All Rights Reserved. Intelligent Buildings Confidential

What “Information” is in a Building? Building automation systems

Energy managementSecurityDigital signageFacility mgmt. and visitor mgmt.POSConsumablesParkingTenant technologyProperty mgmt. and back office…more

Copyright ® 2006 The Fourth Utility, LLC

Page 8: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

TECHNOLOGY ROADMAP FOR INTELLIGENT BUILDINGS

www.caba.org/trm

FREE

Page 9: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Buildings39%

Industry33%

Transportation28%

Buildings use 71%of electricity

21%

18%18%

Why Buildings: Huge Opportunities

Residential

Heating 32%

Other 4%

WaterHeat 13%

Computers 1%

Cooling 10%

Refrigeration 9%

Lights 12%

Electronics 5%

Wash 5% Cooking 5%

Source: 2004 Buildings Energy Databook with SEDS distributed to all end-uses

Commercial

Other 10%

Lights 28%

Heating16%Cooling

13%Water Heat 7%

Ventilation 7%

Cooking 2%Computers 3%

Office Equip 7%

Refrigeration 4%

Page 10: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

HVAC

24/7 Monitor

Video surveillance

Elevator

Lighting

Fire

Access

Energy

Reducing Building Cost

Services and Technologies

Copyright ® 2007 The Fourth Utility, LLC All Rights Reserved.

Page 11: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

High Speed Internet / Wireless

Voice Communications

Facilities Management

Interactive media

Visitor management

Audio – Video Conf

Ambient Music / TV

Better Tenant and Common Area Experience

Digital signage

Serv

ices

and

Tec

hnol

ogie

s

Copyright ® 2007 The Fourth Utility, LLC All Rights Reserved.

Page 12: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

High Speed Internet / Wireless

IP Telephony

Future Applications

Interactive media

Visitor management

Audio – Video Conf

Ambient Music / TV

Smarter Building / Property

Digital signage

HVAC

24/7 Monitor

Video surveillance

Elevator

Lighting

Fire

Access

Energy

Copyright ® 2007 The Fourth Utility, LLC All Rights Reserved.

Page 13: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Technology Usage/Purchase Plans

•• Smart Telephony• Telepresence• Active RFID• Smart Landscaping• Intelligent Bathrooms• Audio/Video Support• Combined Heat and Power/Alternative Energy

• Automated Parking• Green Buildings and LEED Certification

• Digital Signage

30%15%9%9%9%39%39%

12%48%

21%

64%64%64%55%52%48%45%

45%42%

39%

Technology Currently Use Might Purchase

Page 14: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

YYoouurr IInnffoorrmmaattiioonn SSoouurrccee ffoorr HHoommee && BBuuiillddiinngg AAuuttoommaattiioonn

1173 Cyrville Road, Suite 210 Ottawa, ON K1J 7S6

613.686.1814 888.798.CABA (2222) 613.744.7833

[email protected]

www.caba.org

www.caba.org/samples

Page 15: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

6/16/2010 15

Intelligent and Green Building Investments

Typical problems that LCC can resolve:Typical problems that LCC can resolve:Having lower life cycle costs provides the Having lower life cycle costs provides the incentive to overcome the lower first cost or incentive to overcome the lower first cost or budgetary restrictions.budgetary restrictions.Building valuations that look at the revenues and Building valuations that look at the revenues and the operating costs are improved by having the the operating costs are improved by having the lower operating costs of better facilities. lower operating costs of better facilities. Making repairs to existing equipment versus Making repairs to existing equipment versus advancing the purchase of new better advancing the purchase of new better performing equipmentperforming equipment

Page 16: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Application to design and construction processApplication to design and construction process

LCC analysis has many applications in the capital LCC analysis has many applications in the capital asset, buildings and infrastructure projects that use asset, buildings and infrastructure projects that use the design and construction process. Choosing the the design and construction process. Choosing the appropriate materials and costing out the operating appropriate materials and costing out the operating and maintenance cost of different alternatives and maintenance cost of different alternatives provides the design and construction professional provides the design and construction professional the ability to include the ownerthe ability to include the owner’’s financial criteria as s financial criteria as part of the process. part of the process.

Page 17: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

EVALUATING AND PRESENTING THE RESULTSEVALUATING AND PRESENTING THE RESULTSEvaluation 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 dollar

1.1. Savings/benefit to investment ratioSavings/benefit to investment ratio2.2. Graphic analysisGraphic analysis

Page 18: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

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

Page 19: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

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

Page 20: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand
Page 21: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand
Page 22: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Electricity and Peak Demand Charges –Time of Use Rates

12¢ ?8¢ ?

????¢

4.7¢ / 5.5¢

Page 23: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

(Source: Energy Cost Savings Council)

Conventional Cost AnalysisAverage Payback Period (PP) and Return on

Investment (ROI) on single technology products.

Page 24: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Softcoat LowE

Meets the Code and provides lowest first cost.

Page 25: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Triple Glazing & Heat Mirror

Alternatives cost more – but save more energy

Page 26: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Window Energy Film Applications

Existing Glass can be improved to lower HVAC costs

Page 27: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Window Energy Film Terminology

Page 28: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

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

8.00 9.09

14.30

-

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

Doubl

e (Ar 1

")

Hard

Low-E

(Ar 1

")So

ft Lo

w-E (A

r 1")

Page 29: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

IG Solar Heat Gain IG Solar Heat Gain CoefficientCoefficient

0.700.67

0.380.32 0.30

-

0.10

0.20

0.30

0.40

0.50

0.60

0.70

Double

Hard Lo

w-E

Soft Low

-E

Triple

Low-E

Sunlite

Triple

Page 30: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Reduce Energy Bills(Operating Costs)

Page 31: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Reduce HVAC Requirements(Capital Costs)

Page 32: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Reduced Lighting Requirements(Capital & Operating Costs)

Page 33: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Risk and sensitivity to above analysis.Fuel Escalation could less than 4% causing Breakeven to be longerR 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.

Page 34: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Is this Tinted Glass Building Green and Intelligent ?What are the tradeoffs in HVAC, Daylighting & Productivity

Page 35: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

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

Page 36: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Sustainability Matrix

$4.0$4.4$4.2$3.0$3.1$ -Total Savings over Market after 30 years

$20.8$62.2$95.8$166.9$218.4$348.9100 Years

$19.6$23.7$27.8$36.7$45.3$62.960 Years

$18.7$18.3$18.5$19.7$19.6$22.730 Years

Living Building

LEED™Platinum

LEED™Gold

LEED™Silver

LEED™CertifiedMarketNet Present

Values

The David Lucile Packard FoundationLos Altos Project

http://www.packard.org/pdf/2002Matrix.pdf

Page 37: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Financial Benefits of Green Buildings

Page 38: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

LCC calculation of Greg Kats –former DOE and IMPVP Executive

Page 39: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Green and Intelligent Building Convergence Review

Energy management for HVAC, Lighting & Demand Response – CBIP – Energy StarGreen Buildings – Environment - LEED & Green GlobeAccess and Security for safety of occupants and visitorsCabling and Wireless to increase revenue and lower costs Communications to increase value and productivityDigital Signage for instant information and advertisingInterconnectivity to other buildings and the communitySmart Grid and Demand Response Ready

Page 40: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

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 Roadmapwww.caba.org/ibrm

Who is working on bringing these issues all together to evaluate alternatives and make sound economic choices?

Page 41: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Produced by: Thomas J. Lohner, P.E.Vice President, TENG Solutions

Analyzing the Life Cycle Cost of Integrated Building Systems

Page 42: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Systems Integration -Comparative Life Cycle Cost

You Can Not Afford Not to do it Right

Page 43: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Facility Integration Life Cycle Costs

First CostChanges, Additions & UpgradesOperating & Maintenance Utility Costs

Page 44: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

UPS

Computer Room A/C

Emergency Generator

Fire Management System

Door Access Control & Intrusion Detection

Lighting Control SystemHVAC Control System

Typical Building Approach to AutomationTypical Building Approach to Automation

Main Service Switchgear

5 User Interface Workstations!

No Integration !No Integration !

Page 45: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Non-Integrated BuildingEngineering Left up to ContractorsSole Sourcing Required to Provide Integration - $$$$Stand Alone Systems - Single PurposeNobody Responsible for Technology Integration

Page 46: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

UPS

Computer Room A/C

Fire Management System

Emergency Generator

Main Service Switchgear

SNMP over IP

Web ServerWeb Server Web Server Web Server

Modbus

Web Server

Facility IP Network

Client FMS Workstation Database Server

Partial Integration Concept Partial Integration Concept

HVAC Control SystemLighting Control SystemDoor Access Control & Intrusion Detection

Security Console

Proprietary Control Sub-systems

Page 47: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Partial Integration IssuesSoftware Integration on IP networksUse Web Enabled - FMS Application ProgramMethodology Employed for Existing BuildingsHardware Intensive - Many I/O Servers

Page 48: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

BENEFITS Partial Integration

Single User Interface for all SystemsWeb based GUI - Defacto StandardPermits Migration to Open Control Networks -Competitive Bids !

Permits Development of Campus Wide Relational DatabaseDatabase Permits - Maintenance Management , Energy Management , Asset Management, etc.

Page 49: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

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

Page 50: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Full Integration IssuesOpen Standards Applied Where PossibleI/O Servers MinimizedNumber of Devices Reduced - Shared Information

Page 51: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

BENEFITS Full Integration

Same as Partial Integration ApproachPLUS

Competitive Bids in each BuildingIntegrated Building Sub-systems

Lighting, HVAC, Power Management and Security

Lowest Life Cycle Cost Approach

Page 52: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Life Cycle Cost Analysis Assumptions

150,000 SF BuildingMajor 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 Cost50% of the Proprietary Systems are Replaced (Next Generation)20% of the Open Systems are Replaced (Age & Obsolescence)

Average Cost per Control Device - $400Open and Proprietary Control Devices Base Bid Costs are the SameTraining Costs - $3000/ GUI; $1500/ Protocol; 50% of 1st year cost for years 2 and up

Page 53: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

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

Page 54: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

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%!!!

Page 55: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Blinds & 24v Wiring

Non-Integrated HVAC, Lighting & Intrusion Detection Echelon World Headquarters

VAV BoxesNo Occupancy Control

DimmableLighting Control

Page 56: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Sensor and 120v WiringLighting, HVAC & Occupancy Sensor Control Trunk

User Scene Control Switch

Integrated HVAC, Lighting, Intrusion Detection & Blind ControlEchelon World Headquarters

Page 57: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Changes, Additions and Upgrades Issues

Cost Premium Paid for Additions & Changes to Proprietary Controls Limit Scope of Future Improvements and ModificationsCost Premium for Non Competitive Service Contracts

Page 58: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

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$

Page 59: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

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$

Page 60: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

Typical Energy Use Profile

LightingHVACPowerOther

HVACHVAC30% Ave Annual Energy 30% Ave Annual Energy

UseUse

$0.4 / SF / YR$0.4 / SF / YR

$60,000 / YR$60,000 / YR

LightingLighting40% Ave Annual Energy 40% Ave Annual Energy

UseUse

$0.53 / SF / YR$0.53 / SF / YR

$80000 / YR$80000 / YR

PowerPower25% 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

Page 61: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

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

Page 62: Sustainable Resources Management Consultant Project Manager … · 2013-09-23 · Lowering Life cycle Costs and Using CABA Intelligent Building Quotient for OPA Incentives and Demand

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 ValueThe Value of the Integrated Approach willIncrease w/ IT AdvancesInformation will be your Competitive Advantage

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Federal Government ProgramsOntario Energy Board funding for Enbridge and Union Gas Demand Side ManagementOntario Power Authority Conservation ProgramsLocal Distribution Companies – PowerwiseEnergy Service Companies (ESCO)Financial Institutions for Leasing or BorrowingPrivate energy companies for onsite generationDemand Response and Smart Grid options

What are the opportunities to get funding for upgrades and retrofit alternatives that provide lower life cycle costs?

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Federal Programs AvailableNatural Resources Canada's Office of Energy Efficiency now offers the ecoENERGY Retrofit Incentive for Buildings, the commercial/institutional component of the ecoENERGY Retrofitfinancial 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

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Provincial Programs AvailableOntario 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

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Other Programs Available

Renewable and Clean Standard OffersToronto Better Building PartnershipToronto Atmospheric Fund – Financing BOMA Toronto – CDMOPA for Continuous Commissioning and Next Gen Building AutomationTax credits and Class 43 Accelerated Depreciation on qualified equipment

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Financing Options

Self – Finance – Your cost of moneyToronto Atmospheric Fund – Financing Lease or Rent – morEnergy OptionsLow interest loans – Banks and Credit UnionsEnergy Service Companies using Performance contractsCarbon Credits and other Trading Schemes

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Demand Response Marketplaceand DR programs in Ontario

Demand-Response-Shop.comCollaboration Project with Sheridan College-Building Intelligence Quotient-RFQ Strategies partially funded by Ontario Centres of Excellence

David KatzBiQ Program ManagerPrincipal - Sustainable Environmental SolutionsConnectivity Week - May 24, 2010

Information on Ontario Power Authority Programs are generalizations and subject to change

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Ontario Power Authority Integrated Power System PlanConservation - LEED – Green Globe –BOMA BEStConservation Measures - TechnologyDistributed Generation OpportunitiesStandard Offers – Renewable – Clean EnergyDemand Response ProgramsDR Technologies – Building SectorDemand Response Shop websiteSmart Grid –Building2Grid optimizationQuestions

Demand Response and BAS Improvements

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Conservation ObjectivesDevelop a Culture of ConservationProvide 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 ProgramsElectrical energy savings and fuel switchingHVAC, Lighting, Power Quality, Power Factor

Incentives pay up to $800/kW or $0.10/kWh

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Previous technologies now economicNew technologies save and measure itBuilding Automation more IntelligentOccupancy, Demand HVAC, Daylighting LEED and Green Globe CreditsLife cycle costs and low cost of fundsPeak and Energy reduction targets now mandated to each of 80+ Ontario LDC’s

Old and New Technologies

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Distributed GenerationEnergy 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 groundWind, 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 adjustmentsNot on HEAT portion Only for certain hours and 8 monthsDemand Response Programs took precedent in IPSP

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Demand Response Technologies

Lighting – Dimming – Occupancy -DaylightingRaise Cooling Temperature – Casual Day ClothesChiller Optimization – Hartman LOOPChillers - Gas Driven – AbsorptionThermal Storage – ICE - WaterVSD – Pumps – Fans - ReprogramOn site Generation – Economics?Windows - Shades -Tinting

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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.

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Demand Response #1Key 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 curtailmentis 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.

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Demand Response #2Contractual 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

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Contractual Load Shedding with DR aggregatorSchedule Term (1, 3, or 5 yrs)Contracted Dispatch PeriodElection of Option A (100 hrs) or Option B (200 hrs)Not Fully Available for CurtailmentElection:(1) using the four hour period prior to Curtailment or(2) the four hour period prior to receiving an Activation NoticeDifferent rates for Standard, Premium, Discount areasSome areas of province are X no participation allowed due to system conditions and contracts with others.

Demand Response #3

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List of Participating Aggregators

Some withdrew

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(BUILDING INTELLIGENCE QUOTIENT CONSORTIUM)

IN COLLABORATION WITH

LAUNCH

DEMAND-RESPONSE-SHOP-CONSORTIUM(DRSC)

ANDDEMAND-RESPONSE-SHOP.COM AND .CA

Sheridan College Institute of Technology and Advanced Learning

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Rating and Certification

(demonstrates the added value)

Upgrade Design and

Implementation Guidance

(demystifies implementation)

+

- an online tool

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SCREEN

Of BiQ

For building info after log-in

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Report for Middleton Hall

Building Intelligence Quotient AssessmentBuilding Intelligence Quotient Assessment

Chart of BiQ rating for each section generated as part of the report

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

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Secure Procurement System for RFI, RFQ and RFP with on line submissions and processing reverse auction and other capabilities

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Secure Procurement System for RFI, RFQ and RFP with on line submissions and processing reverse auction and other capabilities

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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

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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 DRaggregators 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.

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The key objective is to educate users on the various demand response programs. It will gather the vast experience in DRfrom 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.

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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 DRprocurements 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

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SummaryGRID has massive investment needsConservation finally getting recognitionRenewable energy needs incentives but offer environmental and health benefitsDistributed Clean generation can play a large role and can be profitableDemand Response can be part of solutionPeak Shaping – Shedding – ShavingEducation 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

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Contact InfoDavid Katz, MBA, BADavid Katz, MBA, BA

Sustainable Resources Management Inc. Sustainable Resources Management Inc. 6 Morning Gloryway6 Morning Gloryway

Toronto, OntarioToronto, OntarioCanada Canada MM2H 3M22H 3M2Tel: 416Tel: 416--493493--92329232Fax: 416Fax: 416--493493--53665366

Email: Email: [email protected]@sustainable.on.caBuilding Intelligence Quotient ConsortiumBuilding Intelligence Quotient Consortium

Email: dkatz@buildingEmail: [email protected]