The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the...

65
The PSPC process for setting low-carbon design targets Antoni Paleshi Senior Energy Performance Specialist, Sustainability & Energy, Kitchener

Transcript of The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the...

Page 1: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

The PSPC process for setting low-carbon design targets

Antoni Paleshi

Senior Energy Performance Specialist, Sustainability & Energy, Kitchener

Page 2: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

1. Drivers

2. Key Concepts

3. Methodology

4. Sample GHG Reduction Measures

5. Study Results

6. Conclusion

Outline

Page 3: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

1. Drivers

Page 4: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Can we make a business case

for Carbon Neutral Buildings?

Page 5: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Future Financial Impacts with Climate Change

Climate Change Do Something Today Do Nothing

Not Real $

Real $ $$$

Page 6: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Drivers

Limit temperature increase to 2.0 °C 30% reduction on emissions

PARIS AGREEMENT PAN-CANADIAN FRAMEWORK

Page 7: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Ontario’s Climate Action Goals

https://www.ontario.ca/page/climate-change-action-plan

* below 1990 greenhouse gas emission levels** based on the 2016 National Inventory Report

Page 8: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Federal Commitments

Greening Government Strategy:—By 2050: 80% reduction in GHG emissions from

facilities and fleet relative to 2005

—By 2022: all new facilities will be net-zero carbon ready

PSPC’s Real Estate Portfolio:—Goal to achieve carbon neutral footprint by 2030

Page 9: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

2. Key Concepts

Page 10: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Energy Cost GHG Emissions

Electricity

Natural Gas

Natural Gas vs. Electricity in Ontario

Natural gas has 4-5x more GHG emissions than electricity (right now)

Electricity costs 4-5x more than natural gas (right now)

Page 11: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Definition of Carbon Neutrality

Emissions Green Power

ZERO CARBON BALANCE

Page 12: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Federal Government’s Plan for Carbon Pricing

0

10

20

30

40

50

60

2018 2019 2020 2021 2022

$ /

ton

ne

eCO

2

BC current pricing

Page 13: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Carbon Pricing

$400/tonne

Science, 2017, 355:6331, pp 1269-71 2020 2050

$50/tonne

Page 14: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Carbon Pricing after 2022?

Source: National Round Table on the Environment and the Economy

0

50

100

150

200

250

300

350

2010 2015 2020 2025 2030 2035 2040 2045 2050

Aggressive ($/ton)

Steady ($/ton)

Minimum ($/ton)

0.9 ¢/kWh - NG0.5 ¢/kWh - Elec

4.5 ¢/kWh - NG2.5 ¢/kWh - Elec

NG: 2 ¢/kWh => 6.5¢/kWhElec: 12 ¢/kWh => 14.5 ¢/kWh

$150/tonne Average(for reference)

Page 15: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Electricity Grid Carbon Intensity Province-by-Province (2015)

797

720667

603

385

282

42 41 32 20 13 3 10

100

200

300

400

500

600

700

800

900

AB NU SA NS NT NB YT ON NL PE BC MN QC

g e

CO

2/kW

h

Natural Gas (now)

Page 16: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

2. Methodology

Page 17: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

3% 1% -12%

-2% 0% -6%-2%

-6%-26%

-9%-12%

-1% <1% 0% 0% 0% -18%

-9%

-0.3

-0.25

-0.2

-0.15

-0.1

-0.05

0

0.05

0

50,000

100,000

150,000

200,000

250,000

300,000

200

5-2

00

6 (

Pre

vio

us B

aselin

e)

201

5-2

01

6 E

mis

sio

ns

Grid

De

/Reca

rbon

ization

Activity B

ased

Work

pla

ce D

en

sific

atio

n

Activity B

ased

Work

pla

ce S

up

port

ed

Div

estm

ent

Unsup

port

ed

Div

estm

en

t

Data

Ce

ntr

e E

ffic

ien

cy

LE

D L

ightin

g

Retr

ocom

mis

sio

nin

g

Sm

art

Bu

ildin

gs

Deep

Re

trofits

Fu

el S

witch

ing

ES

AP

Me

asu

res

Sola

r P

V

Batt

ery

Sto

rage

Inn

ovatio

n

Te

na

nt E

nga

ge

me

nt

Sm

art

Gri

d

Pro

cure

me

nt (E

lectr

icity)

Pro

cure

me

nt (O

ther

Fue

ls)

tCO

2e

% Reduction from 2015-16

Portfolio Level: PSPC National Perspective

14%23%

26%

Page 18: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

PSPC’s Priorities for Carbon Neutrality

Efficiency first

Strategic fuel switching

Installation of renewables on-site

Procurement of off-site renewables (e.g., RECs)

Page 19: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Process Followed(Multi-Disciplinary Project)

Define Code

Reference &

Minimum1 Create &

Analyze Measures2 Create &

Analyze Options3

Page 20: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Process Followed(Multi-Disciplinary Project)

• Define Code Reference

• Define Minimum

1

Option 1: Minimum Departmental Commitments

• 24%-28% better than NECB 2015

• LEED v4 BD+C Silver/Gold Certification

• PSPC Technical Reference for Office Buildings

Page 21: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Process Followed(Multi-Disciplinary Project)

Generate Measures2a

30-40 Measures

• Enclosure

• Space

• HVAC – Delivery

• HVAC – Plant

• Renewable Energy

Including “Moonshot” Ideas.

Page 22: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Process Followed(Multi-Disciplinary Project)

Analyze Measures2b

Detailed Analysis

• GHG Reduction Potential

• Energy Savings

• Financial Metrics

• Occupant Health & Comfort

• Cost & Operational Risk

• Schedule Impact

Page 23: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Process Followed(Multi-Disciplinary Project)

Package and

Analyze Options

3

Option 2Design to achieve Cost-Neutral (25 years – NPV) GHG Reductions

Option 3Design to Achieve Maximum GHG Reductions

Option 4Hybrid GHG Emissions and Reductions Design

Best value for YOUR money.

Page 24: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Performance Metrics

Thermal Energy Demand Intensity (TEDI)Unit: kWh/m2

Indicates enclosure & HVAC delivery perf.

Total Energy Use Intensity (TEUI) Unit: kWh/m2

GHG Intensity (GHGI) Unit: kg eCO2/m2

Incremental Capital Cost

Incremental Life Cycle Cost

𝐻𝑒𝑎𝑡𝑖𝑛𝑔 𝑙𝑜𝑎𝑑

𝐺𝑟𝑜𝑠𝑠 𝑓𝑙𝑜𝑜𝑟 𝑎𝑟𝑒𝑎

Page 25: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Incremental Life Cycle Costing (LCC)

25 year study

Variables assessed:

— Inflation

—Discount rate

—Capital cost (and replacement cost)

—Operations and Maintenance (O&M) costs

—Energy cost and future increases

—Carbon price

Page 26: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Cost Consultant

WSPSustainability

Simulation Specialist

Building Science

Electrical

Mechanical

Architect

Owner & Operator

Integrated Approach

Page 27: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Case Study 1:Major RetrofitOttawa, ON

Space Type Commercial office

Size72,000 m2

10 Storeys

Min.

Targets

LEED v4 Silver

40% reduction in carbon

Page 28: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Case Study 2: New Construction / ExpansionVancouver

Space Type Commercial office

Size96,600 m2

36 Storeys

Features

Use of Wood

Central Atrium

Major Expansion

Min. Targets 2025: 100 ekWh/m2

LEED v4 Gold

Page 29: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

2. Measures

Page 30: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Space Measures – Future Workplace

Use the buildings part of the budget to enhance the salaries and benefits part of the budget.

Brill, Weidemann, & BOSTI Associates, 2001

New Building

Page 31: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

ENE/WSW

DALI

Solar Control

Operable Windows

Comfort Feedback

Space Empower the User

Activity-BasedWorkplace

Page 32: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Space

Page 33: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Space Empower the User

Page 34: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Overall performance (R-Value) matter’s most!

—Window-to-wall ratio (WWR)

—Window performance

—Opaque wall performance

— Thermal bridging

Aim for overall min. average of R-6 to R-10Many office towers are around R-3

Enclosure

Page 35: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Overall performance (R-Value) matter’s most!

Typical WWR

Enclosure

Page 36: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

General HVAC Trends

1. Separate systems for separate purposes/usage patterns (e.g. core and perimeter systems in office)

2. User-responsive

3. Very low power (i.e. fans and pumps)

4. Low-exergy or “Near-temp”: high-temp cooling, low-temp heating

HVAC -Delivery

Page 37: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Under Floor Ventilation w/ Radiant slab/panelsHVAC -Delivery

Page 38: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Linking HVAC with Envelope

Improved envelope reduces HVAC sizingResults in HVAC capital cost savings

Good enclosures required for high performance HVAC

HVAC -Delivery

Page 39: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Enclosure Performance and HVAC – Heating

and VAV Reheat, Fan Coils

HVAC -Delivery

Page 40: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Boiler:— Natural Gas (94% efficient)— Biomass (85% efficient)— Electric (100% efficient but expensive!)

Heat Recovery Chiller— Data Centers— Exhaust air

Air-source Heat Pump:— Average COP Heating: 2.5-3.0— Average COP Cooling: 4.0-5.0

Geo-exchange system:— Average COP Heating: 3.5-4.0— Average COP Cooling: 5.0-6.0+

Plant Options SummaryHVAC Plant

Page 41: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Plant Options SummaryHVAC Plant

Page 42: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

GeothermalHVAC Plant

Page 43: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

PhotovoltaicsRenewables

Rooftop Building Integrated

Page 44: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

“Moonshots”Renewables

1. New innovations in existing industries, especially Canadian-made (e.g. Morgan Solar panels)

2. Uncommon and/or newer products or systems (e.g. phase change materials, electrochromic glass, hybrid VRF)

3. Uncommon sources/sinks for heating and cooling (e.g. lakes, rivers, waste-water)

4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation)

5. Load-shifting technologies (e.g. batteries, flywheel, thermal storage)

6. Carbon capture (e.g. algae)

What opportunities exist in the geo-exchange industry?

Page 45: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

3. Results

Page 46: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

At a glance

60

25-year Cost / Tonne ($/tonne)

25-year Carbon Saved (%)

0%

5%

10%

15%

20%

25%

30%

35%

40%

-300 -200 -100 0 100 200 300

HRChiller

Space

Delivery

Enclosure

Geoexchange

$15

0/t

on

ne

CAUTION! SOMEWHAT SPECULATIVE!!

Page 47: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Results – Package SummaryItem NECB 2015 Option 1

Min DesignOption 2LCC Neutral

Option 3Max. GHG Reduction

Option 4Hybrid

Enclosure 40% WWRR-5

60% WWRR-5

40% WWRR-11

40% WWRR-11ElectrochromicDaylight redirect

40% WWRR-11Electrochromic SWFixed shading

Space Fluorescent LED LED

LEDUser FeedbackDALI controlDirect/Indirect LtgDesk plug shut-off

LEDUser FeedbackDALI control

HVAC – Delivery VAV System High performance VAV with DCV

Core VAVPerim. HRV (0.75)Radiant Slab

Core UFADPerim. UFAD HRV Radiant SlabAtrium LungNatural Ventilation

Core UFADPerim. UFAD HRV Radiant SlabAtrium LungAssist Nat. Vent.

HVAC - Plant Gas Boiler (83%)Centrifugal Chiller

Cond. Gas Boiler (92%)Mag. Bearing Chiller

Cond. Gas Boiler (92%)Heat Recovery Chiller

Central heat pump Geo-ExchangeBiomass Peak Boiler

Central heat pump Geo-ExchangeGas Peak Boiler

Renewables No PV No PV No PVRooftop PVBIPV11% Total energy use

Rooftop PVBIPV5% Total energy use

New Building

Page 48: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Comparative Features – Option 2 (LCC Neutral)

Item New Construction (BC)

Major Retrofit(ON)

Enclosure

40% WWRR-10.8Advanced Solar Control (Electrochromic glass)

33% WWROverall R-8

Space LEDAdvanced lighting control

LEDAdvanced lighting control

HVAC – DeliveryCore UFADPerim. UFAD HRV Radiant Slab

Core VAVPerim. DOAS HRVPerim. Active beams

HVAC - PlantHeat Recovery ChillersGas Condensing BoilersMagnetic Bearing Chiller

Exhaust Air Heat Recovery Chillers

District Energy HW and CHW

Renewables No PV 4% PV generation rooftop

Page 49: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

491

245

181

122

169 155

97

54

0

100

200

300

400

500

600

Existing NECB 2015 Option 1 (Min. Design) Option 2 (LCC Neutral)

TEU

I (kW

h/m

2)

Major Retrofit (ON)

New Construction (BC)

Results – Total Energy Use Intensity (TEUI)

Partially occupied

TGSv3 Tier 3, CoV Rezone 2017 (100)*

TGSv3 Tier 4 (67)*

*Indicates estimates

Option 1(Min Design)

Option 2(LCC Neutral)

Page 50: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

64

33

26

1614

16

6.8

0.90

10

20

30

40

50

60

70

Existing NECB 2015 Option 1 (Min. Design) Option 2 (LCC Neutral)

GH

GI (

kg/m

2)

Major Retrofit (ON)

New Construction (BC)

Comparative Results - GHGI

Partially occupied

2019 CoV VBBL (7.0)*

2025 CoV Rezoning (0.0)*

*Indicates estimates

Option 1(Min Design)

Option 2(LCC Neutral)

Page 51: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Comparative Financial Results Option 2 (LCC Neutral)Low Carbon

New Construction (BC)

Incremental Capital Cost(year-2026)

0.7%

Incremental LCC (year-2026) -0.6%

Carbon Savings 87% vs. Opt 1(82% vs. Existing)

Page 52: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Comparative Financial Results Option 2 (LCC Neutral)Low Carbon

New Construction (BC) Major Retrofit (ON)

Incremental Capital Cost(year-2026)

0.7% 2.5%

Incremental LCC (year-2026) -0.6% 0.3%

Carbon Savings 87% vs. Opt 1(82% vs. Existing)

38% vs. Opt 1(75% vs. Existing)

Page 53: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

87% Potential

13% Remain

Gap to Zero Carbon

Efficiency first

Strategic Fuel Switching

Installation of renewables on-site

Procurement of off-site renewables (e.g., RECs)

GHG Reduction

New Building Major Retrofit

75% Potential

25% Remain

Page 54: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Renewable Energy Credits (RECs) and Offsets

Two options: buy from Canada or USA?—Canada is at least 2x more expensive—Canadian RECs and offsets are used in the next example

Electricity RECs

Natural Gas Carbon Offsets

Page 55: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Comparative Financial ResultsOption 2 (LCC Neutral)Zero Carbon

New Building Major Retrofit

Low-carbon Zero carbon Low-carbon Zero

carbon

Incremental LCC

(year 2026)

-0.6% -0.4% 0.3% 0.8%

Carbon Savings 87% 100% 75% 100%

Page 56: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

4. Conclusions

Page 57: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

1. Technologies are Available Today

Envelope crucial to progress to passive HVAC systems

Cost Consultant

WSPS&E

Bldg. Sci

Elec

Mech

Architect

Owner

Efficiency first

Strategic fuel switching

Installation of renewables on-site

Procurement of off-site renewables (e.g., RECs)

Page 58: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

2. Location Matters

Page 59: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

3. Energy Price Gap

Sensitivity Analysis for Option 2 (LCC Neutral)

Fuel Cost - Baseline

Capital Cost

Carbon Price

Carbon Savings

O&M

Net Present Value (NPV)

Fuel Cost - Proposed

Relative Impact of Parameter (Standard Deviation)

Page 60: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

3. Energy Price Gap

— Testing uncertain variables in long term forecasts is important

— Based on today’s natural gas and electricity prices:— The carbon price won’t be the main driver in BC or ON— Carbon price needs to be well above avg. $150/tonne to make impact

— Business case improves when baseline’s become more stringent

OntarioEnergy Cost GHG

Emissions

Electricity

Natural Gas

Page 61: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Can we make a business case

for Carbon Neutral Buildings?

Page 62: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Life-cycle view is important for carbon neutral business case

Connection needed between developer & rate payer

4. New Construction - Business Case Exists

0.7% Capital Cost

Increase−0.6% LCC 87% GHG

Reduction

Page 63: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

2.5% Capital Cost Increase +0.3% LCC

75% GHG Reduction

($100/tonne)

4. Major Retrofit- More Motivation Needed

Motivations: • Commitment to Internal Policies / Goals

• Regulations (i.e. increasing baseline)

• Increase Carbon Pricing / Cap’n’Trade Schemes

• Public Perception (ex. Carbon Labelling)

Page 64: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Carbon Neutrality Conclusions

1. Technologies are available to achieve 75%-90% reduction on most commercial sites.

2. Location matters—Climate dependent—GHG emission intensity in electricity grid

3. Energy cost gap—Natural gas vs. Electricity

4. Business Case — New Construction - business case already exists— Major Retrofit - more motivation required

Page 65: The PSPC process for setting low-carbon design …...4. New sources of low-carbon energy to the buildings industry (e.g. hydrogen fuel cell, wind generation, biogas generation) 5.

Thank you!

wsp.com