Energy economics final ppt
Transcript of Energy economics final ppt
Green Buildings:An Energy Opportunity for Future
Presented By:
Ronak SachetiMBA –II year, SPM
Order of Presentation
• Overview• Benefits of Green Buildings• Perception & Realities• Economics of Green Building• Market Equilibrium
3
Why Energy Efficiency
• Rising energy prices• Climate change • Security of Supply• Economic Growth
Four drivers for action
Why Energy Efficiency in Buildings
Globally, buildings account for: • 40% energy use• 42%water consumption• 40% solid waste• 50% raw material use• 50% of air pollution• 42% GHG emission• 50% water pollution
Source : Bureau of Energy Efficiency ( BEE)
In India construction sector is growing at a rate of 9.2% as against the world average of 5.5% and contributes to 7% of India’s GDP
Source: Asia Pacific Energy Research Institute, 2008
• India’s urban population would grow to about 473 million in 2021 and 820 million by 2051.
• In India demand for office space is driven by the increasing share of the services sector in the Indian economy
• Shopping centres/malls : By the end of 2010, space of 79 million sf in 257 centres are in 15 largest cities of India
Key Facts
Source: Deutsche Bank Report on India’s Commercial Real Estate, 2009
Energy used by Buildings in India
Residen-tial23%
Com-mercial
7%Industrial37%
Agari-culture
31%
Transportation3%
Sector wise Energy Consumption
Lighting60%
HVAC32%
Others8%
Commercial Buildings
Lighting28%
A/C7%Fans
34%
EV Cooler4%
Refrigeration13%
TV4%
Others10%
Residential Buildings
Source: Bureau of Energy Efficiency ( BEE), 2009
Energy Efficient Buildings
"A green building is one which uses less water, optimises energy efficiency, conserves natural resources, generates less waste and provides healthier spaces for occupants, as compared to a conventional building."
Source: Indian Green Building Council ( IGBC)
Benefits of Green Buildings
Energy Savings Realized
Building Area(Sq. ft)
Normal Building
(Kwh)
Green Building
(Kwh)
% Reduction
Annual Energy Saving (Rs in Lakhs)
Wipro 1,75,000 48,00,000 31,00,000 40% 102
ITC 1,70,000 35,00,000 20,00,000 45% 90
CII Godrej GBC 20,000 3,50,000 1,30,000 63% 9
Source : Bureau of Energy Efficiency ( BEE)
Source: Miller, Spivey and Florance (2009)
Perception and Realities-1
Perception •Green Buildings are costlier
Realities•The cost could be slightly higher than a conventional building. But this needs to be seen with a different paradigm.•Green buliding would last for about 50 or 60 or even 100 years! The saving due to lower operating cost is for entire life span of the buliding while the incremental cost is one time cost only about 8-10%. The cost of green building is lower than a conventional building in a long run.
Building City Year awarded
Built in Area (SQ FT)
Rating achieved
% increase in cost
Payback (years)
CII- Godrej GBC
Hyderabad 2003 20000 Platinum 18% 7
ITC Green Centre
Gurgaon 2004 1,70,000 Platinum 15% 6
Wipro Gurgaon 2005 1,75,000 Platinum 8% 5
Grundfos Pumps
Chennai 2005 40,000 Gold 6% 3
Technopolis Kolkata 2006 72,000 Gold 6% 3
Spectral Services
Consultants
Noida 2007 15,000 Platinum 8% 4
HITAM Hyderabad 2007 78,000 Silver 2% 3
Typical Pay back period for various Green Buildings
Source : Bureau of Energy Efficiency ( BEE), 2007
Perception and Realities-2
Perception • Green Buildings have to be air-conditioned
Realities
• Green building concept can be applied for non-air conditioning buildings too.
• Applied on three such buildings in India• IGP Office• Gulbarga• Hyderabad institute of Technology and
Management
Perception and Realities- 3
Perception • Green Buildings take more time
Realities• There is absolutely no difference in the time
involved in constructing a Green Building vis. a.vis. a normal building
Market Potential for Green Buildings in India
YearProjected Certified Green
Buildings(Nos. Per year)
Estimated Market Potential
(in Million US $)
2006 20 80
2007 50 200
2008 150 500
2012 1000 4000
Source: Indian Green Building Council ( IGBC)
Criteria 2001 Till date
CEO’s and senior people involved
50 6000
No. of professional trained on green building concept
0 7000
No. of registered green buildings
1 768 registered buildings
Green building footprint 466.22 million sqft
IGBC membership 0 1050 members (90 Founding Members)
Green Building Movement in India
Source: Indian Green Building Council ( IGBC), 2009
Regulations and Rating
• The Energy Conservation Act 2001• The Bureau of Energy Efficiency (BEE)• Energy Conservation Building Code • Indian Green Building Council• Green Rating for Integrated Habitat
Assessment (GRIHA)
Real barriers in Indian Construction Industry
• In a colony developed by the builders, he only constructs while the energy bill is to be paid by the tenant or owner.
• Increase in initial building cost restricts the builders from not adopting energy efficiency measures in their buildings
• Unavailability of efficient equipments in India is another major barrier.
• No incentives from the government• Information asymmetry• Back up industry in terms of materials, equipments and
technical expertise is not coming up as fast as the construction industry
Green buildings and the Social Optimum
Copyright © 2004 South-Western
Quantity ofGreen Building
0
Price of
Green building
Demand(private value)
Socialvalue
Supply(private cost)
QMARKET QOPTIMUM
Developer- Buyer Matrix
How to achieve market equilibrium?
STAKE HOLDERS SCOPE OF INFLUENCE LEADERSHIP ACTIONSDevelopers/Owners
New Building Project objectives, budget and design team selection
Capital budgets for upgrade of existing buildings
Selection and policy for building management
Build or buy expertise Make energy efficiency a part of the design brief Pursue integrated design Right Size key building systems Commission the building to realize energy efficient savings Make efficient operations part of the building operations
strategy Set targets and align budgets Adopt lifecycle costing Plan and implement energy conscious building upgrades
Occupants Appliance efficiency Staff awareness raising
Adopt energy management best practices Increase staff awareness
Government Policy setting and enforcement
Public awareness raising Creation of a level playing field Capacity building Example setting
Establish regulatory minimums for energy performance Provide incentives for performance beyond regulatory
minimums Demonstrates best practices and adopt higher
requirements for public buildings Build capacity through investments in skills enhancements
and education and sponsored R&D Raise public awareness of the link between conservation
and environment and national security
Industrial Associations and NGOs
Catalyst for action by all stakeholders Help build industry capacity through providing professional and technological expertise or getting companies in touch with other organizations that may help through establishing networks of experts
Provide resource, education and opportunities for green building improvement
Go Green