Arlington Community Energy Plan Competitive …arlingtonva.s3.amazonaws.com/wp-content/uploads/sites/13/...Arlington Community Energy Plan Competitive Community of the Future Property

Arlington Community Energy Plan Competitive Community of the Future

Property Development and Management Input Meeting Arlington, Virginia, July 1st, 2010

Community Energy Plan

� Task Force Kick-off Workshop - Jan 2010

� Energy & Greenhouse Gas Baseline complete

� CEP Technical Working Group formed

� Meetings - County Departments, Dominion, Pentagon, Reagan National Airport, Washington Gas, Chamber of Commerce, ….

� Task Force endorses transformative CEP goals

� Community Energy Town Hall meeting Apr 2010

� Initial recommendations to Task Force – Sep 2010

� Completion target – February 2011

Arlington CEP Process to date


A World of Cities 3 Billion Urban Citizens

*UN Sources


Majority of us live in cities

*UN Sources

Urban Population passed 50% in 2008

Percent


Insatiable Appetite for Energy About 70% of it in Cities

Forecast to double by 2030 Source: IIASA / BP / EIA / Eurostat


Climate Change Range of Potential Impacts

*Stern Review


Global Energy Picture Growing Impacts on USA

� Unpredictable energy prices � Sustained volatility and upward trends likely � Globalizing prices

� Dependence on imports � USA - Oil (70%) and natural gas (16%) � EU – more than 50% of all energy

� Climate change legislation � Aggressive reductions proposed � Uncertainty over regulatory frameworks � Uncertainty over compliance costs and requirements

� Underinvested North American energy infrastructure � Electricity grid � Rail for coal transport � Natural gas terminals

� China and India major new energy customers � Major impacts on primary fuel prices

� Trigger events –hurricanes, tornados, oil spills ….

Fundamentally different from past


Perfect Energy Storm When fears collide…

Growing awareness – Growing Opportunity

Volatile Prices Availability

Climate Change


Energy Productivity Differences How well do we spend our $1.5 Trillion?

*IEA and World Bank – 2007 sources

Key to Competitiveness

Region Population GDP Energy Energy /Capita

Energy /GDP

USA 4.6% 18.9% 19.5% 100 100

EU 7.5% 25.1% 14.8% 47 57

Japan 1.9% 8.8% 4.3% 52 47

China 20.0% 4.5% 16.3% 19 355

India 17.0% 1.5% 4.9% 7 317

World 100% 100% 100% 23 97


Energy Supply Chain From fuel to service

� High greenhouse gas � High-cost low returns � High risk

Uses 70% of all energy

25%

Pay for 100 get less than 10

5%


Energy Use by Sector How does the USA Compare?

� Most energy lost in range of inefficiencies � Only 5% to 15% used productively

Sector Share Index USA/EU

Industry 32% 1.2 : 1 Buildings* 40% 2.5 : 1 Transportation* 29% 1.4 : 1

High potential for productivity gains! *Indicative ratio of US average to EU Average


Arlington Community Energy and Sustainability Plan

Three Groups of Benefits

Competitiveness Security

Environment

� Supply security � Supply quality � Flexibility

� Energy cost � Employment � Investment

� Greenhouse Gas Reduction


Arlington’s Energy Use Roughly $1Bn per year

236 MMBtu e / 69 MWhe for each Resident

2007 Fuel Use 48’252’000 MMBtue / 14’141’000 MWhe

by sector by type


Arlington’s Carbon Footprint

13.4 metric tons for each Resident

2007 Greenhouse Gas Emissions 2,730,000 metric tons / 6,020,000,000 lbs CO2e

by sector by type


Sector Energy Use Greenhouse

Gases

Transportation 21% 28%

Residential 26% 26%

Non-Residential 53% 46%

Arlington - Energy Use and Greenhouse Gas Emissions


Greenhouse Gas Indicators

� GHG good surrogate for overall energy productivity

� National GHG per capita per year (metric tons CO2) � Canada 22.6 � USA 21.7 � Denmark 14.1 � Germany 11.7 � European Union 10.5

� Municipal GHG per capita per year (metric tons CO2) � Washington DC 19.7 (uncertain scope) � Arlington County 13.4 with “breakthrough” goal � Loudoun County 14.2 with 6.0 goal � Canada - Guelph 12.2 with 5.0 goal � Germany – Mannheim 6.0 with 4.5 goal � Denmark - Copenhagen 3.0 with zero goal

*Rough indicators - multiple sources

Arlington Embraces Breakthrough Targets


Copenhagen - Integrated Energy Solution “Environmental Capital of Europe”

� Triggered by 1970’s energy crisis � Neighborhood approach � 2.6 tons / capita greenhouse gas � Efficiency

� World leading building efficiency � Energy Performance Labeling

� District heating / cooling � Systematic expansion

� Fuel flexibility � Multi-fuel cogeneration � Coal, oil, gas, biomass, waste-to-energy � Wind and solar generation

� Transport � Urban design for bike/walking � Efficient trams/trains

� High Value Employment � Energy Products and Services

2009 – Voted “Second Most Livable City”


� Energy efficiency – If you don’t need it don’t use it � Efficient buildings, vehicles � Urban design for transport efficiency � Local employment for commuting efficiency

� Heat Recovery – It it’s already there – use it � Distributed combined heat and power � Use existing “waste” heat � Structure commercial sites to maximize “waste” heat use

� Renewable energy – If it makes sense, go carbon free � Renewable electricity – Photovoltaic, Wind, Run-of-river Hydro � Renewable heat - Solar thermal, Biomass, geothermal � Renewable heat and power – waste-to-energy, biomass

� Energy distribution – Invest where it makes sense � Flexible distribution – electricity, gas, district heating, cooling… � Accepts multiple fuels and energy conversion technologies � Optimize local / regional investment choices

CEP Framework

Integrated Solution – Tailored for County!


Evolution of Benefits Four Distinct Types of Activity

Community Activity •Many initiatives •No changes in policy

Community Activity •Many initiatives •No changes in policy

Scale Projects •Neighborhood size •Local changes in “policy”

Scale Projects •Neighborhood size •Local changes in “policy”

Integrated policy County wide norms •New “business-as-usual”

Integrated policy County wide norms •New “business-as-usual”

Incr

easi

ng C

EP

Ben

efits

Stand alone projects •Fewer larger initiatives •Minor changes in policy

Stand alone projects •Fewer larger initiatives •Minor changes in policy

Transformative

Incremental

Arlington Commits to World Class Performance


Sustainable Energy Multiple Level 1 & 2 initiatives

Langston-Brown Community Center Walter Reed Community Center

Westover Library


Sustainable Transportation Multiple Level 1 & 2 Initiatives


Action Categories Difficulty Competitive

-ness GHG

Reduction Security

1. Voluntary Community Activity

2. Smaller stand-alone projects

3. Large Scale-Projects

4. Integrated Energy Policy

� Competitiveness Goals � Inbound investment, employment, energy costs

� Environmental Goals � Greenhouse gas reduction – good surrogate for overall

energy productivity � Supply Security Goals

� Flexibility, redundancy, upgradeability

CEP Goals

“We don’t do Easy” ?


Energy Planning Neighbourhoods (Work in Progress)

� 2007 to 2050 � Energy needs � Greenhouse gases

� Energy uses � Heating, Cooling, Other

� Buildings Profile � Residential / Non-residential � New, existing, renovated,

demolished � Scenarios

� Business as Usual � Enhanced efficiency � District Energy � Clean and renewable supplies

� Existing buildings dominant factor in future energy use

Renovation and restructuring will be key


� Leadership and community engagement � Transparency and outreach � Necessary planning policy changes in place � World-class energy efficiency � Integrated utility approach � Early implementation of “Scale Projects” � Magnet for business and academic

excellence � Continuous improvement – raising the bar!

Successful CEP Implementation Common Features

Consistent Execution Over Decades


Scale Projects Major Key to Success

� Powerful Goals � 30 to 60% less energy � 40 to 80% less GHG � Affordable energy � Attract investments � Improved reliability � Reduce city costs

� Community awareness � Education � Policy changes � Will they be

implemented?

� Powerful Goals � 30 to 60% less energy � 40 to 80% less GHG � Affordable energy � Attract investments � Improved reliability � Reduce city costs

� Community awareness � Education � Policy changes � Will they be

implemented?

CEP Efficient Buildings Scale Implementation

� Voluntary programmes � Energy Star… � LEED…

� Useful resources � Construction guides � Efficient equipment � Rebate & incentives � Education

� Limited penetration � < 5% new construction

� Voluntary programmes � Energy Star… � LEED…

� Useful resources � Construction guides � Efficient equipment � Rebate & incentives � Education

� Limited penetration � < 5% new construction

� Success needs scale � Multiple benefits

� City, developer, utility… � Potential game-changers

� High density urban villages � Greenfield Smart Growth � Sports Centres � Transportation facilities

� Multiple in county � “Connect the Dots”

� Success needs scale � Multiple benefits

� City, developer, utility… � Potential game-changers

� High density urban villages � Greenfield Smart Growth � Sports Centres � Transportation facilities

� Multiple in county � “Connect the Dots”

Scale A

Scale B

Scale C

Scale D

Scale E

County

Jump Start Implementation


� High probability of being implemented � Manageable number of participants � Large enough to implement integrated energy

solutions within its boundaries � Possibility to apply different energy supply

and efficiency than surrounding norms � Potentially economically, environmentally and

operationally attractive � Future possibility to link to other community

projects

CEP Candidate “Scale Projects” Selection Criteria


� High Density Urban Villages � Core renewal neighborhoods � Commercial or Research Parks � Major retail clusters � Greenfield Smart Growth � Sports and Recreation Centers � Transit hubs/neighbourhoods � Academic Campuses � Military Bases � (Industrial Parks)

Typical Scale Projects


Task Force Recommendations High Priority Candidates

East Falls Church

Rosslyn

Columbia Pike

Crystal City

Decision-Grade IEMPs Necessary* *IEMP=Integrated Energy Master Plan


Scale Project Additional Candidates

Neighborhoods � Arlington Mill � Ballston � Courthouse � Long Bridge Park � North Ten Block � Pentagon City � Potomac Yard � Shirlington � Virginia Hospital Center � Wastewater Plant � Aquatic Center

Hosted � DoD Fort Myer � DoD Pentagon � Reagan National Airport

Arlington Community Energy Plan District Energy in Existing Neighborhoods

Arlington, Virginia July 1st 2010


Combined Heat & Power Wide Range of Share

High Potential for Efficiency Gains

USA USA


What is District Energy?

� Distribution to many homes and buildings

� Closed network of highly insulated pipes

� Optimized energy supply from multiples sources � Combined Heat & Power � Boilers/Furnaces � Absorption Chillers � Electric Chillers � Solar and Biomass � Waste heat recovery

� Typically operated by dedicated DE-Utility Widely deployed proven technology

Centralized supply and delivery � Heating � Cooling � Domestic hot water


� Property Owner/Developer � Reduced building investment � Frees investment for enhanced efficiency � More marketable space � Reduced maintenance costs � Investment opportunity in DE-utility

� Property User � Equal or lower overall energy costs � Less volatile energy costs � Equal or greater supply quality

� Community � Reduced environmental impact � Increased supply security � Fuel flexibility � Peak load reduction may reduce tariff increases � Can migrate DE benefits to lower density areas � Investment opportunity in DE-utility

Benefits of District Energy


� DE-Utility � Profitable retail sales of heating and cooling � Grid sales of clean and renewable electricity � Fuel flexibility - extension to biofuels , fuel oil and waste heat

recovery � Greenhouse gas credits � Saleable expertise for similar projects elsewhere

� Gas Utility Opportunity from DE � Familiar business model � Business diversification � Higher sales volumes – heating, cooling, grid sales � Higher than average margins � Higher customer intimacy

� Electric Utility Opportunity from DE � Business diversification � Low-carbon electricity to meet RPS requirements � Higher than utility margins � Higher customer intimacy

Benefits of District Energy


Phase 0: Current Starting Point

Higher Density Scale Projects Single Building Supply to District Energy

Rooftop H/C-Unit Boiler/Furnace Chiller

Establish Integration “Rules”


Phase 1: Make Buildings DE-ready & start interconnecting


Rooftop H/C-Unit Boiler/Furnace Chiller Heat exchanger Cool exchanger

X X

Efficiency retrofits and early integration


Phase 2: Add Co-generation & Absorption chillers to create Supply Islands


Rooftop H/C-Unit Boiler/Furnace Chiller Heat exchanger Cool exchanger CHP generator Absorption Chiller

X X

Preparing for Wider Integration


Phase 3: Interconnect Islands maybe adding Central Generation


Completing Neighborhood System


Phase 4: Interconnect Scale Projects

Integrating Neighborhoods

Completing Community System

Scale Project 1

Scale Project 2

Scale Project 3

Arlington Community Energy Plan Energy Performance Verification

Arlington, Virginia July 1st 2010


Lifetime Performance Verificiation Energy Performance Labeling

� Certifies performance � Available when sold or rented � Low cost or no-cost � Energy and greenhouse gas � Current state of building � Not historic or similar structures � Displayed in public buildings � Independent certification � Access to discount mortgage � Voluntary or mandatory

approaches possible � Candidate enabling project

Create Market Driven Improvement


Benefits of Winning! Competitive-Sustainable-Flexible

New Relationships – New Rules

Commercial Commercial

•Reduced costs •Rental values •Low vacancy •Productivity

•Reduced costs •Rental values •Low vacancy •Productivity

Banks Banks

•Collateral Value •Credit worthiness •Collateral Value •Credit worthiness

Resident Resident

•Lower utility costs •Resale value •Employment •Quality of life

•Lower utility costs •Resale value •Employment •Quality of life

Developer Developer

•Premium prices •Low carrying time •Reduced investment

•Premium prices •Low carrying time •Reduced investment

•Environmental impact •Attractive development •Competitive energy services •New business opportunities

•Environmental impact •Attractive development •Competitive energy services •New business opportunities

Utility Utility

•Higher returns •Emissions reduction •Customer intimacy •Diversification

•Higher returns •Emissions reduction •Customer intimacy •Diversification

•Tailored energy •Lower costs •Sell waste energy •Reduced CO2 risks

•Tailored energy •Lower costs •Sell waste energy •Reduced CO2 risks

Industry Industry

Academic Academic

•Sustainable curriculum •Lower costs •Student magnet •Global network

•Sustainable curriculum •Lower costs •Student magnet •Global network


� What Impact is energy and climate change having on your current activities related to property development and neighborhood design?

� What aspects of new local energy supply and distribution are in current planning?

� How are energy-related aspects affecting overall competitiveness?

� What would you like to see included in Arlington’s Community Energy Plan including financial and other incentives?

� What are areas of possible concern?

Discussion and input


For more information :

www.arlingtonva.us/energyplan

Contact:

Rich Dooley – CEP Project Manager

[email protected]

Thank You

Documents

Arlington Community Energy Plan Competitive …arlingtonva.s3.amazonaws.com/wp-content/uploads/sites/13/...Arlington Community Energy Plan Competitive Community of the Future Property