Commercial Building Opportunities in the Midwest

COMMERCIAL BUILDING

OPPORTUNITIES IN THE MIDWEST

July 30, 2014

MEEA is a non-profit

organization bridging the gap

between energy efficiency

policy, development, and

program implementation

Midwest Energy Efficiency Alliance

MEEA’s Role in the Midwest • Nonprofit serving 13 Midwest states

• 10+ years promoting energy efficiency

• Over 140 members from state & local governments, utilities, advocates, manufacturers & retailers, ESCOs, consultants, academic & research organizations.

• Staff of 30 based in Chicago

• Activities include: – Designing & Administering EE Programs

– Evaluating & Promoting Emerging Technologies

– Regional Voice for DOE/EPA & ENERGY STAR

– Coordinating Utility Program Efforts

– Delivering Training & Workshops

– Advancing EE Policy

– Promoting Best Practices

MEEA Members

Diverse stakeholders in energy efficiency

• Academic/Research Organizations

• Manufacturers/Retailers

• State and Local Governments

• Utilities (Investor-Owned, Municipal, and Cooperative Utilities)

• Energy Service Firms/Consultants

• Leading Nonprofits and Advocacy Organizations

• General Interest/Professionals

THE BUILDING EFFICIENCY INTELLIGENCE COMPANY

• Deeper savings at scale • Lower cost to acquire customers • Reduced time to savings

IMPACT

• Buildings spend billions on energy use • 30%–50% of usage is routinely wasted, but

many efficiency upgrades are left undone

CHALLENGE

• Rapid energy models for targeting, engagement, conversion and tracking

• Fast, comprehensive, and consistent

SOLUTION

Evaluated more than 2 billion square feet of space since March 2011

Retroficiency Overview

Today’s Discussion

Opportunities in the Midwest

Deliver advanced efficiency segmentation and marketing

Unlock the forgotten segment

Harness operational building savings

Areas of Focus

Dimension: Size the opportunity

Distill: Discuss best practices

Deploy : Review real-world examples (not in your own backyard)

Information About Data Presented

4 Midwestern utility programs

8,000+

137M+

24.7M+

Energy model-based assessments and audits

MMBtu of energy consumption

MMBtu of cost-effective savings potential

Unit Conversion 1 MMBtu = 29.32972 KWh 1 MMBtu = 10 therms

0 500,000 1,000,000 1,500,000 2,000,000 2,500,000

Annual Electric Savings Potential (kWh)

Buildings 34-64 Buildings 1-33

Buildings 65-105

70% of the total efficiency opportunity is found in 30% of the buildings

Notes: - Based on analysis of 105 buildings in a utility portfolio - Each bar represents one building - Buildings shown from greatest to smallest efficiency savings potential

Focus on the Buildings that Matter

Contribution of High Potential Buildings to Total Energy Savings Potential

Marry Building Potential with Transitional Segmentation

Building Efficiency and Consumption by Building Type

0

50

100

0 100000 200000 300000 400000 500000

Effi

cie

ncy

Rat

ing

(1=

Hig

h p

ote

nti

al;

10

0=L

ow

Po

ten

tial

)

Annual Gas Consumption (in Therms)

Education Grocery Store Office Production/Process Restaurant Warehouse Retail

Less e

fficien

t bu

ildin

gs and

/or h

igher co

nsu

mp

tion

More efficient buildings and /or lower consumption

Benchmarking versus Prioritizing

0%

10%

20%

30%

40%

50%

60%

70%

0 20 40 60 80 100

Av

era

ge E

nerg

y S

av

ing

s (

%)

ENERGY STAR Score

Energy Savings Potential vs. ENERGY STAR Score(Mid-Term Package)

Education

Hospital

Hotel

Office

Retail

Warehouse

Con Edison: Geo-Targeting Peak Demand

Challenge: Accelerate long-standing DSM efforts

to alleviate constrained areas of the grid

Approach: Identify buildings and customers

with high potential during peak periods

Assessed ~900 buildings

Results

Average customer: 6% of peak load

High potential: 11% of peak load

Identify of load reduction during system peak

23 MW

Sizing the SMB Opportunity in the Midwest

1.8M MWh

68M Therms

0.4M MWh

8.8M Therms

1.9M MWh

63M Therms 3.1M MWh

118M Therms

3.7M MWh

120M Therms

0.4M MWh

7.6M Therms

0.7M MWh

22M Therms

1.2M MWh

21M Therms

2.4M MWh

44M Therms

1.9M MWh

54M Therms

1.0M MWh

35M Therms 4.1M MWh

152M Therms

1.5M MWh

25M Therms

Take a Comprehensive Approach

• SMBs embody the scale of residential and the diversity of large commercial •Must go beyond

lights to achieve more project conversions and deeper savings

Deep Insights for One-to-One Messaging

Efficiency Maine: Motivating w/ Insights

Program Overview: Drive awareness and penetration amongst geographically dispersed SMBs

Education: SMBs can and want to be educated about opportunities

Savings: Whole building savings exist and should be exploited

Relationships: Relationships and trust are critical

LESSONS LEARNED

Information is King

“We don’t look at our buildings [for energy

efficiency] because we don’t have time. This is definitely

an eye opener.”

“The timing of this is great. We have planned renovation work coming up and this is a great opportunity for energy

efficiency.”

“This is absolutely valuable to me. I found it to be very

worthwhile. It would be nice to do this for all of my

buildings.”

42/100 54/100

How Many Buildings Have this Operational Issue?

Cooling occurs at very low temperatures

Active longer than necessary

Simultaneous heating & cooling

58/100

Align the Opportunity with Program Goals

31% of savings potential

% Midwestern Program Savings Targets

Utility A: 19%

Utility B: 2%

Utility C: <1%

Identify the Issue, Drill to Solution (quickly)

Issue and Key Questions

Building is active longer then necessary

Is there an operational reason to keep systems running?

No

Yes

Does the building have an EMS?

Yes

Is there a preferred vendor for maintenance?

Is the building management staff capable of reconfiguring?

Can current systems be adequately optimized?

Is the building a candidate for a new system?

Potential Solutions

Operational Capital Behaviors

No

Are behavioral treatments viable?

Re-configuring BMS settings

Upgrade control settings

Influence tenants to better

actions

Automate the M&V Process

Operational/RCx Program Best Practices

HVAC Operational Best Practices

• Target for high potential and screen inbound candidates

• Reduce study time and cost

• Ensure persistence

• Automate the M&V process

THANK YOU

One of America’s Most Promising Social Entrepreneurs

Utility Technology Challenge – Pilot Program Winner

“Analogous to giving a miner a GPS and the

coordinates of a gold vein”

“Represents an innovative new entrant in the energy

efficiency space” MassTLC Innovative Energy

Product of the Year

Best Green Invention

Utility Technology Challenge Winner

SUSTANIA 100 Winner

American Technology Awards - Clean Tech / Green Tech Product of

the Year

Smart Grid Startup to Watch

Retroficiency’s Rich Huntley named as one of the 50 Smart

Grid Pioneers

America’s Most Promising Companies

Mike Kaplan VP of Marketing (845) 304-2346

mike.kaplan@retroficiency.com

Building Energy Benchmarking

General Definition:

The process of tracking the

energy consumed, over time,

of an existing building and

comparing the results to

similar buildings or an

applicable standard. Image Courtesy of Portland State University

Key Terms: Existing Building, Energy Use,

Measurement, Comparison, Commercial

Benefits of Measuring Energy Use P

re-D

esi

gn

1 - Compare Energy Consumption with Peer Buildings.

2 - Use for Basis of Design to Set Sustainability Goals.

Po

st-C

on

stru

ctio

n

1 - Verify Savings from Completed Project.

2 – Earn Recognition in Certification Programs (Energy Star, Green Globes, LEED).

Op

era

tio

ns 1- Create

Annual Energy Budgets.

2 - Influence Behavior Change of Tenants.

3 - Use in Real Estate Transactions.

Minneapolis MN: • Passed 2/2013

• Municipal,

commercial

• Public disclosure

National Trends of Benchmarking &

Transparency Policies

Washington

DC: • 7/2008

• Municipal,

commercial,

multi-family

• Public

disclosure

Philadelphia, PA: • 6/2012

• Commercial

• Public & Transactional

disclosure

Seattle WA: • 1/2010

• Municipal,

commercial,

multifamily

• Tenant &

transactional

disclosure only

San

Francisco, CA: • 2/2011

• Municipal,

commercial

• Public &

transactional

disclosure

• Mandatory audits

Austin, TX: • 11/2008

• Municipal,

commercial, multi-family

• Transactional disclosure

• Mandatory audits for multifamily

New York, NY: • 12/2009

• Municipal,

commercial, multi-

family

• Public Disclosure

• Mandatory Audits,

Retro-commissioning,

Lighting upgrades

Boston, MA: • 5/2013

• Municipal, commercial,

multi-family

• Public Disclosure

• Mandatory Audits

Chicago, IL: • 9/2013

• Municipal,

commercial,

multi-family

• Data verification

• Public disclosure

Midwest Benchmarking Legislation

Status

RToS

RToS

State Pilot Underway

State Owned/Operated

Building Benchmarking

State Pilot Complete

State Owned Considering

State Owned Enacted

Challenge Program

Underway in Municipality

Legislation In Progress

by Municipality

Municipal + Private Owned

Benchmarking Ordinance

RToS Voluntary Residential

Time of Sale

Disclosure Updated July 2014

Adopted by Municipality

Retroficiency:

Mike Kaplan

mike.kaplan@retroficiency.com

MEEA Benchmarking Policy:

Steve Kismohr, AIA, LEED AP BD+C

skismohr@mwalliance.org