SEMINAR 37 The Impact of Net Zero Energy Buildings on the ... · •Expanding the “site” to be a campus, a ... •An energy-efficient campus where… Zero Energy Portfolio

2016 Annual Conference

St. Louis, Missouri

Jon McHugh, PE McHugh Energy Consultants Inc.

www.mchughenergy.com

SEMINAR 37 The Impact of Net Zero Energy Buildings

on the Electric Grid

Zero Net Energy: What Metric to Use?

1

McHugh Energy Consultants

Learning Objectives

1. Describe the pros and cons of the various ZNE metrics. 2. Understand available financing mechanisms and rebates for ZNE projects and identify the best options. 3. Understand and identify the energy generation, storage, and monitoring technologies as well as new design strategies that best suit ZNE projects. 4. Identify potential electric grid impacts from ZNE buildings.

ASHRAE is a Registered Provider with The American Institute of Architects Continuing Education Systems. Credit earned on completion of this program will be reported to ASHRAE Records for AIA members. Certificates of Completion for non-AIA

members are available on request.

This program is registered with the AIA/ASHRAE for continuing professional education. As such, it does not include content that may be deemed or construed to be an approval or endorsement by the AIA of any material of construction or any method or manner of

handling, using, distributing, or dealing in any material or product. Questions related to specific materials, methods, and services will be addressed at the conclusion of this presentation.

2 McHugh - Zero Net Energy: What Metric to Use?

Outline/Agenda

• Why ZNE?

• Policy requirements for ZNE

• ZNE and ZE Metrics

• California ZNE Metrics

– ZNE Tier (0 TDV) CALGreen

– CA State Buildings ZNE (Source Energy)

• ZNE and Grid Impacts


What is Zero Net Energy? • Energy usage is limited

to the renewable or regenerative energy available on site.

•Off-grid cons: • Wood smoke

• Site area for biomass

• Storage: capacity, round trip efficiency, cost

• Living within site resources

•Off-grid examples

McHugh - Zero Net Energy: What Metric to Use? 4

Expanding the Scope of ZNE to Grid Connected Systems

• Use the grid as a “large battery” to provide energy storage. • With 100% round-trip storage efficiency

• Use natural gas and other fuels for heating and offset their use by exporting renewable energy (electricity)

• Expanding the “site” to be a campus, a subdivision, or a ZNE district.

• Purchase off-site renewable energy or Renewable Energy Credits (RECs) [usually limited]


Site, Source and TDV Energy

Site Energy Elec = 1 kWh (3.4 kBtu)

Source Energy into Power Plant Elec = 3 kWh (10.2 kBtu)

Site Energy Natural Gas = 1 therm (100 kBtu)

Source Energy into Pipeline Natural Gas = 1 therm (100 kBtu)

TDV Energy – based on cost Includes: • Fuel cost • T&D cost (pipelines, power lines) • Storage and Spinning Reserve • Equipment Cost • Profit and Overhead

PV – peak coincidence, 1 kWh = • 1.2 kWh avg elec • 4.5 kWh (15 kBtu) avg gas


Trade-offs between fuels

• Site: a kWh of electricity offsets 3,412 Btus of natural gas.

• Source: a kWh of electricity offsets the amount of gas burned at the power plant • Example: 1 kWh x relec = rgas x 3,412 Btus of natural gas • Where ri is a source energy conversion factor

• Cost: the value of exported electricity is compared to the cost of purchased gas

• Carbon: displaced carbon from exported renewable electricity is offsetting carbon from natural gas consumption

McHugh - Zero Net Energy: What Metric to Use?

7

National Average Source Energy Conversion Factors (NIBS/USDOE)

Energy Form

Source

Energy

Conversion

Factor (r) Energy Form

Source

Energy

Conversion

Factor (r)

Imported Electricity 3.15 Steam 1.45

Exported Renewable

Electricity -3.15

Hot Water 1.35

Natural Gas 1.09 Chilled Water 1.04

Fuel Oil (1,2,4,5,6,Diesel,

Kerosene) 1.19

Propane &

Liquid Propane 1.15

Coal or Other 1.05


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Exported electricity is valued the same as imported electricity as it is displacing imported electricity

Fore

cast

Co

sts

Building up the Electric TDVs (California)

1. Start with the CEC Forecast Commodity Costs

2. Add the marginal T&D delivery costs as a function of Temperature in the “Typical” meteorological year weather file

4. Adjust to bring to revenue requirement (rate levels)

3. Add projection of internalized CO2 costs as a function of Temperature

CO2 T&D

PX

Revenue Neutrality Adjustment

Monday Tuesday Wednesday Thursday Friday

Hot

afternoon


ZNE: Codes & Ratings

•What end-uses? • HVAC, Lighting and Water

Heating (Traditional Regulated Loads)

• White goods • Plug Loads • Process loads • Electric vehicles • Swimming pools and spas

•Asset ratings • Based on simulation

and prediction. • Average usage patterns

•Outcome based ratings • Based on measured

energy consumption after the building is operated for a period of time


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TDV value of End-Uses

PV Size needed for 2430 sf ZNE home EE 15% in CZ 12 Sacramento, CA


Net Energy Metering in 2016: Offsetting consumption, reimbursed at retail rate. Excess generation reconciled at end of year, reimbursed at wholesale rate.

ASHRAE CZ 3B

PV Size Needed for 10,619 sf ZNE Building in Capitola, CA (T-24 CZ 3)


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Gas consumption is 30% of site energy Commercial less difference between site and source than for residential

A Tale of Two Futures…

Source: IPCC 2014. “Working Group III Contribution to the IPCC Fifth Assessment Report

RCP = Representative Concentration Pathways (e.g., scenarios)

The warmest it’s been over the past 2 million years is 2oC above preindustrial times.


Our Problem Statement


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Sources: Historic emissions from California's 2000-2013 greenhouse gas emission inventory (CARB). BAU scenario from E3 and LBNL’s PATHWAYS model, “Baseline” scenario: immediate freeze on current policies .

Same emissions as in 1990 though population has increased by 40%!

Big Bold Goals- Adopted 2007-08 by Energy, Utilities Commissions

•All new residential construction in California will be zero net energy by 2020 •All new commercial construction in

California will be zero net energy by 2030 • 50% of existing commercial buildings will

be retrofit to ZNE by 2030

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DPR Construction San Diego Corporate Office , Chip Fox, DG&E One Sky Homes Cottle House in San Jose, Allen Gilliand McHugh - Zero Net Energy: What Metric to Use?

State Buildings ZNE goals 2012 California Executive Order B-18-12

• 50% of new state facilities beginning design after 2020 shall be ZNE

• All new state buildings and major renovations starting design in 2025 shall be ZNE

• State agencies shall strive towards ZNE for 50% of existing state-owned building area by 2025.


The 2030 Challenge


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Existing Building Stock EUI from 2003 CBECS and 2001 RECS

0%

20%

30%

10% EUI i

n S

ite

En

erg

y

as a

fra

ctio

n o

f ex

isti

ng

Off-site

Off-site renewable energy offsetting no more than 20% of the target reduction Remaining reduction from efficiency and onsite renewables

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

T24 Standards (Bldg Code)

*Source energy kBtu/SF from CEUS CA Commercial End-Use Survey

• ZNE Voluntary Tier CALGreen

All New State Buildings ZNE

• All Commercial New Construction ZNE

• 50% of Commercial Existing Buildings ZNE

2019 Standards Adopted




ZNE Goals

Recommended Interim Milestones

Small Office: 145 kBTU/SF (1.6 GJ/m2) Retail: 149 kBTU/SF (1.7 GJ/m2)

College: 160 kBTU/SF (1.8 GJ/m2) Lodging: 167 kBTU/SF (1.9 GJ/m2) Large Office: 203 kBTU/SF (2.3 GJ/m2)

Ref Warehouse: 211 kBTU/SF (2.4 GJ/m2) Health: 276 kBTU/SF (3.1 GJ/m2) Food store: 447 kBTU/SF 7.1 GJ/m2)

Warehouses: 49 kBtu/SF* (0.6 GJ/m2) Schools: 92 kBTU/SF (1.0 GJ/m2)

Progressive Pathway to ZNE


• All Residential New Construction

• 50% of New State Buildings ZNE

2015 California Integrated Energy Policy Report (IEPR) Definition

• ZNE Code Building is one where the value of the energy produced by on-site renewable energy resources is equal to the value of the energy consumed annually by the building,…

• at the level of a single “project” seeking development entitlements and building code permits, …

• measured using the California Energy Commission’s Time Dependent Valuation metric.

• A ZNE Code Building meets an Energy Use Intensity value designated in the Building Energy Efficiency Standards by building type and climate zone that reflect best practices for highly efficient buildings.


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Co

st b

ased

D

efin

e

On

-sit

e TD

V

Min

imu

m

Effi

cien

cy

CALGreen Voluntary ZNE Tier for new low rise residential buildings

• Title 24, part 11 (Green Building Standard)

• Minimum Energy Eff Prerequisite • Either 15% or 30% less

energy than energy code (depends upon climate zone)

• Energy Design Rating, EDR ≤ 0 • Based upon TDV (cost) • Includes regulated loads +

lighting, white goods, consumer electronics and other plug loads

• Mandatory only if adopted by a local jurisdiction

• Asset rating based on computer simulation

• Preparation for 2020 ZNE residential code

• Higher equipment efficiencies reduce size of PV system needed

• Loads not included • Swimming pools & spas • Electric vehicles


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USDOE/NIBS Definition of Zero Energy Building (ZEB)

Zero Energy Building (ZEB) • An energy-efficient building where,

on a source energy basis, actual annual delivered energy ≤ on-site renewable exported energy

• RECs must be retired

Zero Energy Campus • An energy-efficient campus where…

Zero Energy Portfolio • An energy-efficient portfolio where…

Zero Energy Community • An energy-efficient community …

REC-ZEB • Supplement EE and renewables with

renewable energy credits


CA Department of General Services ZNE Definition

• ZNE Source – Produces as much energy as it consumes over the course of a year, when accounted for at the energy generation source.

• Priority in order: Building, Campus, Portfolio, Community

• The Renewable Energy Credits (RECs) must be retired (not sold) for all on-site renewable energy systems.

• Based upon 12 consecutive months of actual energy performance data

• RECs not used to qualify for ZNE status


Interaction of ZNE and RPS

• RPS – renewable portfolio standard • If utility renewables are of the same type

as on-site renewables, generation by both sources is coincident. • Oversupply and undersupply at same time

•Add storage or demand control •Diversify renewable supply (technology

and location) and diversify load (export out of local region)


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50% Renewable Portfolio Standard in 2030 Shifts Peak – PV is less coincident/valuable


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Source: E3 - 2019 Draft TDV Updates

High RPS addresses peak day but over-generation in off-peak months


25

July Generation Mix April Generation Mix

E3 2014. Investigating a Higher Renewables Portfolio Standard in California.

Conclusions

• ZNE is a key term in energy policy

• Different definitions result in differing levels of renewables (site, source and value)

• California codes use time dependent value

• USDOE and CA State Buildings are using source energy

• The 2030 Challenge is using site energy 26 McHugh - Zero Net Energy: What Metric to Use?

Conclusions (continued)

• ZNE increases the use of on-site renewables – Including being a net generator

• If state policy also increases utility scale renewables, oversupply at certain times is likely

• Grid integration is increasingly important and increases the value of demand response, storage and wheeling of power.


Is ZNE Impossible?

“Impossible is not a fact. It's an opinion. Impossible is not a declaration. It's a dare. Impossible is potential. Impossible is temporary. Impossible is nothing.”

-Muhammad Ali


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Questions?

Jon McHugh, PE


Bibliography

• CEC 2015. California Integrated Energy Policy Report (IEPR).

California Energy Commission. http://docketpublic.energy.ca.gov/PublicDocuments/15-IEPR-01/TN210527_20160224T115023_2015_Integrated_Energy_Policy_Report__Small_Size_File.pdf

• Department of General Services. 2016 Definition of Zero Net Energy (ZNE) for California State Agency Compliance with Executive Order B-18-12. May 19,2016. http://www.calstate.edu/cpdc/ae/documents/ZNE-Definition-EO-B-18-12-20160519.pdf

• E3 2016. Energy and Environmental Economics. 2019 Draft TDV Updates. CEC Staff Workshop May 12, 2016 http://docketpublic.energy.ca.gov/PublicDocuments/16-BSTD-06/TN211454_20160512T132542_E3_Draft_TDV_Presentation_Updated_51216.pdf


http://docketpublic.energy.ca.gov/PublicDocuments/15-IEPR-01/TN210527_20160224T115023_2015_Integrated_Energy_Policy_Report__Small_Size_File.pdf






http://www.calstate.edu/cpdc/ae/documents/ZNE-Definition-EO-B-18-12-20160519.pdf














http://docketpublic.energy.ca.gov/PublicDocuments/16-BSTD-06/TN211454_20160512T132542_E3_Draft_TDV_Presentation_Updated_51216.pdf








Bibliography Continued

• E3 2014. Energy and Environmental Economics. Investigating a Higher Renewables Portfolio Standard in California. January 2014. https://ethree.com/documents/E3_Final_RPS_Report_2014_01_06_with_appendices.pdf

• E3 2015. California PATHWAYS: GHG Scenario Results. April 6, 2015. https://ethree.com/documents/E3_PATHWAYS_GHG_Scenarios_Updated_April2015.pdf and https://ethree.com/public_projects/energy_principals_study.php

• McHugh Energy. 2011.7,000 kWh to Zero in Eight Years Flat: A Strategy for Net Zero Energy Residential Buildings by 2020. http://mchughenergy.com/papers/PathToNetZero_v1.0.pdf

• NIBS for USDOE 2015. A Common Definition for Zero Energy Buildings. September 2015 http://energy.gov/sites/prod/files/2015/09/f26/bto_common_definition_zero_energy_buildings_093015.pdf


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https://ethree.com/documents/E3_Final_RPS_Report_2014_01_06_with_appendices.pdf

https://ethree.com/documents/E3_Final_RPS_Report_2014_01_06_with_appendices.pdf

https://ethree.com/documents/E3_PATHWAYS_GHG_Scenarios_Updated_April2015.pdf

https://ethree.com/documents/E3_PATHWAYS_GHG_Scenarios_Updated_April2015.pdf

https://ethree.com/public_projects/energy_principals_study.php

http://mchughenergy.com/papers/PathToNetZero_v1.0.pdf

http://energy.gov/sites/prod/files/2015/09/f26/bto_common_definition_zero_energy_buildings_093015.pdf

http://energy.gov/sites/prod/files/2015/09/f26/bto_common_definition_zero_energy_buildings_093015.pdf

Acknowledgments

• CA Statewide Codes & Standards program • Pat Eilert, Manager, PG&E C&S Program • Alex Chase, Energy Solutions • John Wilson, Energy Foundation • Snuller Price, E3


Appendix


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ZNE’s contribution to GHG Reduction


• 100% new Res ZNE by 2020 • 100% new Com ZNE by 2030 • 50% of Com retrofits ZNE by 2030

Note: “ZNE” includes only energy savings and is subtracted from EE to avoid double counting.

Renewable Portfolio Std (RPS)

Federal Preemption of State Energy Codes

• National Appliance Efficiency Conservation Act (NAECA) • “covered product” is something regulated by the Federal appliance

efficiency standards

• Prescriptive Building Energy Code Requirements • “…for every combination which includes a covered product the

efficiency of which exceeds either standard or level referred to in subparagraph (D), there also shall be at least one combination which includes such covered product the efficiency of which does not exceed such standard or level.” [42USC §6297(f)(3)(E)].

• Performance Energy Code Requirements • “…the baseline building designs are based on the efficiency level for

such covered product which meets but does not exceed such standard or the efficiency level.” [42USC §6297(f)(3)(D)]


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Importance of Federal Standards in Context of Pre-emption: Residential Products

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Figure 1. Estimated Percent of Statewide Electricity Use per Household

Pre-Empted by Federal Appliance Standards

(Grey shading indicates appliances which are pre-empted)

Miscellaneous

11%

Lighting

2%

Lighting

20%

Refrigerators and

Freezers

19%

Air Conditioning

10%

Pools and Spas

6%

TV, PC, and Office

Equipment

15%

Dishwashers and

Cooking

5%

Laundry

5%

Space Heating

4%

Water heating

3%

Figure 2. Estimated Percent of Statewide Gas Use per Household

Pre-Empted by Federal Appliance Standards

(Grey shading indicates appliances which are pre-empted)

Dryer

3%

Pools, Spas, Misc

2%

Water Heating

44%

Space Heating

43%

Cooking

7%

Pools, Spas, Misc

1%

65% of electric and 99% of gas end-use categories include preempted products. (This is a high-level assessment; thus, some product categories exist within wedges that may not be explicitly preempted)


Importance of Federal Standards in Context of Pre-emption: Nonresidential Products

Figure 2. Estimated Percentage of State-wide Gas Energy Use for Commercial Applications

(Annual Total = 127, 857 104 Therms)

**Exterior Lighting:1) all exterior lighting standards in CA adopted before 2015 are not preempted, with the exception of mercury vapor lamps, which are banned starting in 2016. 2) It doesn't appear that this data set includes roadway or parking energy use from lighting, which if included, could dramatically increase the energy use percentage for exterior lighting.

DOE may issue positive determinations; preliminary determinations anticipated In 2011 by the DOE

End use categories that have some products pre-empted

Sources: 1) http://capabilities.itron.com/CeusWeb/Chart.aspx 2) http://www.standardsasap.org/federal.htm 3) http://www1.eere.energy.gov/buildings/appliance_standards/

Figure 1. Estimated Percentage of State-wide Electric Energy Use for Commercial Applications

(Annual Total = 67,077 GWhs)

64% of electric and 70% of gas end-use categories include preempted products. (This is a high-level assessment; thus, some product categories exist within wedges that may not be explicitly preempted)


http://capabilities.itron.com/CeusWeb/Chart.aspx



http://www.standardsasap.org/federal.htm

http://www.standardsasap.org/federal.htm

http://www1.eere.energy.gov/buildings/appliance_standards/

http://www1.eere.energy.gov/buildings/appliance_standards/

Additional Efficiency Package Options (2015 IECC §C406)

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IECC Add

Options

HVAC +10% Eff Lighting

-10% LPD

Addressable

Lighting

PV On-site

Renewables

DOAS Dedicated Outside Air

DHW HR or Solar


Jurisdictions with Multipath Energy Codes and higher equipment efficiencies

•Residential 6.8 M + 3.9 M = 13.7 M • Washington State (upheld by Federal Appeals

Court)

• Oregon

•Nonres 12.8 M + 0.5*6.7 M + 5.9 = 22 M • Illinois (IECC 2012 including Section C-406)

• Half of MA (reach code) – precursor to IECC C-406

• Maryland (IECC 2012 including Section C-406)


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