Developing, Financing and Operating Energy Efficiency Projects at Caltech

Developing, Financing and Operating Energy Efficiency Projects

at Caltech

John Onderdonk – Manager for Sustainability Programs

Matthew Berbée – Energy Manager

06/14/11

CaltechJune 14, 2011

Learning Objectives

• Climate action• Challenges & barriers energy program startup• Energy management program design• Caltech Energy Conservation Investment Program• Low hanging fruit• Retro-commissioning projects• Sustaining savings• Innovation• Generation portfolio


Caltech Overview

• Private research university in Pasadena, CA

• Campus population roughly 6,000

• 120+ GWH electricity annually

• 60% generated in CoGen

• Energy Intensity ~300 MBTU/SF

– Average UC Campus ~ 180 MBTU/SF

• $20M+ annual utility bill

• 4.1 Million SF of buildings

• 125 acres in urban setting


2009 Emissions Sources (MTCO2e)

Combined Cycle Cogeneration System

44%

Purchased Electricity29%

Air Travel12%

Other On-Campus Stationary

7%

Faculty / Staff Commuting 5%

Scope 2 T&D Losses2%

De Minimus (Univ. Fleet, Fertilizers, Student Commuting , Other Travel, Solid

Waste)

1%

Return to 1990 levels by 2020 (50,000 MTCO2e reduction)• Annualized return per MTCO2e avoided = $130


Barriers to Implementation

Minimal performance

reporting requirements,

savings not materializing

Difficult to form the

retrofit team

Initially no clear process

to request funds, vague qualifications

Adapted from: “Managing University Energy Costs”, 2009

Numerous potential “bottle-neck” points


Energy Audit to Implementation

• Identify organizational resources that complement and support engineering efficiency solutions

• Constrain Projects: 6Yr SPB, >15% ROI– Built in incentive for top-performing projects– Innovation in conceptual design, projects can’t just be

the low hanging fruit

• Establish a sense of urgency: – Utilization of available incentive funding– Success of program is dependent on early wins


Energy Insight #01

“Energy audits are widely promoted by energy solution providers as well as utility, university, and government programs.

Nevertheless, the implementation rate for energy saving programs based on energy audits remains discouragingly low.

While the very best programs may achieve 50% implementation, rates in the 20-30% range are more typical.

This begs questions about the design, conduct and follow-up of energy audits.” (Association of Energy Engineers, 2010)


Energy Insight #01

Caltech Energy Audit Implementation 80+% (2 program years)


EM PROGRAM DESIGNWiden perspective of EM – savings don’t only come from replacing the lights & motors, they come from maintenance, vigilant adherence to sequence of operations. Working with building occupants to increase the understanding of how to work in a “green” building increases success rate of a retrofit.


EM Program Design (Build The Team)

• RFP Energy Services Company– Zero Cost Feasibility Study

– Utility incentivized energy simulations

– M/V in-house (typically 4-5% of project costs)– Share the Vision

(the whole team must understand key success factors)

– Goal is to obtain:• Self sustaining financial cash-flow

• Transparent pricing

• Sustained savings for long term(training for operators, Investment Grade documentation)


EM Program Design

• Develop Fast-Action ECM List (typically automation related)

• Understand Opportunity Cost (lost savings) by delaying implementation of an ECM in favor of “more-data”; is the increased accuracy worth it?

• 80/20 rule - roughly 80% of the effects come from 20% of the causes

• Traditional versus “full throttle” energy management– Start with Operational Effectiveness (get better at what we do)– Transfer to improved strategy over times as skills improve

Balance Baseline duration with Opportunity Cost of retrofit delays


EM Program Design It’s not all technical

Adapted from “Six Thinking Hats”, E. de Bono

When the problem seems too complex, or the apparent solutions are stale, try a rapidly applied structured thought exercise

ECMAgenda / Organizing /

Overview

Critic/It wont work because…

Gut Feeling/Instincts

Facts / Data / What do we

know

Creativity/ Innovation/ New

Ideas

Positive/It will work because…

Process Tool for ECM Development (works with any task or project)


EM Program Design Understanding Energy Usage via Sub-Metering

Source: RCx Investigation Report prepared by Taylor Engineering, January 2011


EM Program Design Understanding Energy Usage

Calibrated Energy Model

Projects Must:Exhibit verifiable savings

♦Contain a plan for periodic

measurement & verification

♦Have a simple payback of

6 years or less


Process FlowItemized Comparison

Summary

CECIP/ESPC COMPARISON


Caltech Energy ConservationInvestment Program

$

Caltech has created the Caltech Energy Conservation Investment Program (CECIP) to finance energy efficient infrastructure projects in order to reduce Caltech’s energy costs.

Net Cost After Rebate ($K) Annual Savings ($K) Simple Payback (yrs)

FY 09 Projects 624 409 1.5

FY 10 Projects 3,340 929 3.6

FY 11/12 Projects (projected)

$4,400 $1,000 4.4

Program Performance

Projects Must:Exhibit verifiable savings

♦Contain a plan for periodic

measurement & verification

♦Have a simple payback of

6 years or less

Utility Savings

Capital Revolving FundImplement ECM

$

$

$


CECIP Paybacks The Program is Gaining Momentum

Growth pattern is visible and measureable


• Advantages+ Enables comprehensive retrofits+ 30 year track record; standard contracts and processes developed+ Can easily be combined with other incentive programs to enhance the

value of the project.+ Lends itself to rigorous monitoring & verification; can provide

opportunities for critical data collection

• Disadvantages- Process requires the active engagement of the client's staff - Difficult to standardize financing

Advantages for CECIP

Dept. of Energy ESPC ProgramAdvantages/Disadvantages


Energy Investment Index:

$ Invested in Energy Projects

$ Annual Utility Budget

According to the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE), “Top Performers” are at 10% or better.

Energy Insight #02


Energy Insight #02

Caltech Energy Investment Index 20% (2 year average)


LightingMotors

Economizers

LOW HANGING FRUITLow hanging fruit: Targets or goals which are easily achievable and which do not require a lot of effort. (URBAN Dictionary.com)


Low Hanging Fruit

Motors Economizers(Let ambient air do the work)

Lighting

• 2M SQFT of campus

• 1 MW reduction

• $750K Investment

• $275K Annual Savings

• $270K Rebate

• 1000 HP

• (70 motors retrofitted)

• Average 7% efficiency improvement


Lighting Retrofits

TO DATE:

1 M SQFT0.5 MW Reduction

Annual Savings of $187k

IN PROGRESS:

1 M SQFT0.3 MW Reduction


UPCOMING:

255k SQFT 55 kw Reduction


Map of Annual kWh Savings


Parking Structure LEDExisting T8

fluorescent bulbs

• $25K Implementation cost

• $9K Annual avoided costs• $11K Rebate

7,500

9,500

11,500

13,500

15,500

17,500

OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUGkW

h

South Wilson Energy Consumption - FY08/FY09/FY10/FY11

2010 2011 2008 2009

New LED bulbs 50% energy savings


RETRO-COMMISSIONING

Benefits of Retro-Commissioning•Typical annual energy savings: 5% - 10% •Fewer occupant complaints/issues•Improved Indoor Air Quality and working environment

A process to optimize building system performance


RCx Finding HVAC Running Weekends

Air-Handler running during scheduled unoccupied time


Hot/Cold Aisle Data Center Retrofit

• 180 GPM chilled-water flow reduction with zero impact on operation


RCx – AHU Optimization

Project Intent:• Valve replacement• Reset strategies – static and thermal• Zone level DDC for statistical sampling

Broad Center - Built 2002 - 125K SQFT

Broad Center


Broad Center - Built 2002 - 125K SQFT

$200K Avoided Cost

$500K Investment, $240K Rebate, $200K/Yr SavingsPerformance is exceeding expectations by 20%

RCx – AHU Optimization


Post

• Control valve replacement• Sequence of operation modernization• Improved system level feedback (wireless temp sensors, exhaust humidity, leaving coil temp)• $40K Annual operating savings from mechanical RCx

North Mudd- Built 1938 -51K SQFT

RCx – AHU Optimization Pre North Mudd


AH-1 Convert to Variable Volume Single Zone Unit (VFDs on SF & RF)

AH-3 Convert to Variable Volume Multi-Zone Unit (VFDs on SF & RF, 7 new Damper Actuators)

RCx – AHU Optimization AVERY Center


RCx - Enable Variable Speed Fan Control

Millikan Library - Built 1967 - 60,000 - SQFT

• Baseline – All fans operating at 100% Speed• 200 Annual MWH savings by introducing variable speed control

Millikan Library

http://upload.wikimedia.org/wikipedia/commons/e/ef/Millikan_Library,_Caltech.jpg�


Downs Lauritsen Before

After

New Return Fans

Return Fan Installation, New Dampers and Controls$50K Per Year Operating Savings


SUSTAINING SAVINGS

“Building energy usage creeps up 3% per year” in a post-retrofit period.

California Energy Commission – Public Interest Energy Research Program, 2003


To Realize Full Potential of CECIPthe human element is being addressed

Aggressive training program for O/M staff, critical to sustaining the investment of CECIP

Strategic Goal for Facilities Management:


Beckman Institute Tek-Air TrainingApril 7, 2011

Purpose: Hands-on Training and Q & A for the demonstration project in Beckman Institute Lab 244

Participants: CIT HVAC, Tek-Air, Control Works, EmcorMesa


• A true Enterprise Energy Management (EEM) system encompasses all areas of business operations that have direct and measurable impact on the energy budget.

• EEM is not enterprise-wide metering, but rather thinking about energy as a strategic resource process flow rather than an uncontrollable (metered or billed) cost.

Enterprise Energy Management?


Sustaining Savings viaInformation Technology

•Energy Investment Key Performance Indicators (KPIs)

•System generates automatic notifications to key personnel of deviations from optimum operation

Value Proposition: Address the immediate need of energy investment sustained performance through active, systemic, energy management


Conceptual View of System

Air Flow Reading Calibration

Frozen Damper

Temperature Reading Calibration

Damper Motor Failure

Hot Water Valve Failure

Standard Lab VAV Reheat SystemSupply Air Must be cooled to satisfy Highest Heat Load – Re-Heat is incorporated through re-heat coil in VAV box to warm supply air to appropriate zone demand.

A Deeper Look at the Moving Parts


The Business Need & Opportunity

• Managing the technical and human-resource issues surrounding building occupancy is a significant and growing concern for modern business and public policy

• Existing technology, applied strategically, provides an opportunity for the use of a low-cost, low-hassle, data-driven change-management exercise that leverages IT to manage existing resources more intelligently

• The ability to actively manage energy conservation performance through routine compliance validation and Supply/Demand vigilant IT.


What We’re Working on Now

Real-time Building Models – How much energy should we be using now (if we vary…send an email, or enable load shed)


Active Energy ManagementWorking with Control Works to

refine a one page summary of how the systems are maintaining to

achieve energy savings.Pilot Project – Avery Center

Working with Phoenix Energy Technologies to develop an IT dashboard for demand

side management on a per building basis.


Maximum Use and Re-use of Data

Codify field surveys in digital archive

Record training of sequences

Connect back to operator front end for improved sustained operation


INNOVATIONIt’s important to constantly challenge yourself and your understanding of the business as usual.


Pasadena Water & Power California Institute of TechnologyTechnologies Review & Demonstrations Program (TRDP)

• Independently review new technologies• Conduct technology review meeting with vendor

• Identify potential applications• Develop technology Energy Efficiency Modeling Protocol (EEMP)

– Forward to third part for review

– Identify funding sources– Implement technology demonstration project

• Measure pre and post conditions• Collect field data

• Create FAQ from field experience

• Create summary document outlining all findings

• Capture all data in field verification technology binder

Innovation


Technology Demonstration Project

Location:Beckman Institute Lab 244

Purpose:Retrofit of a Variable Air Volume (VAV) to a low-pressure drop design.

Objective: Document energy efficiency benefits and system versatility, assess feasibility across campus and other markets


Technology Demonstration Project

Catalyst Energy Saving Strategies•Opti-Run Fan Control •Integrated Economizer•Advanced Economizer Changeover•Unoccupied Damper Control•Demand Control Ventilation•Demand Charge Reduction

Location:Existing 15-ton roof top, packaged air conditioning units serving Chandler Hall Dining Room

Purpose: The Catalyst EEC is designed to be a retrofit controller for existing constant volume, roof top package HVAC units. This controller/VFD is interfaced with the controls of a DX, roof top HVAC unit’s supply air fan, cooling controls, heating controls, economizer, an outdoor air temperature sensor, a return air temperature sensor, and the units thermostat or BAS controller.

Objective: Document energy efficiency benefits and system versatility, assess feasibility across campus and other markets


GENERATION PORTFOLIO

Caltech is its own micro-grid with a diverse portfolio of energy generators.The portfolio supports the energy needs of Caltech while being less carbon

intensive than traditional purchased electrical power

Cleaner, more economical and predictable power


Solar

• 1.3 MW• 3 Parking Structures• 8 Buildings


Fuel Cells• 10 year contract• Power Purchase Agreement

• No Caltech investment except enabling costs

• No AQMD permit

• No heat recovery• Install 2010/2011

Bloom Electron Service (PPA) Launch Event – January 2011, CALTECH


Leverage synergies between CECIP, renewal and infrastructure projects to maximize the long-term benefit to the facility

INTEGRATE WITH EVERYDAY BUSINESS

SUMMARY

Documents

Developing, Financing and Operating Energy Efficiency Projects at Caltech