Green Retrofits. Workshop & Presentations Rob Lord & Mark Jacobsen, Max Humphries & Peter Lang 13 th July 2011

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1 Green retrofits are any kind of upgrade at an existing building that is wholly or partially occupied to improve energy and environmental performance, reduce water use, and improve the comfort and quality of the space. Doug Gatlin VP USGBCA 2009 Green Retrofits Workshop & Presentations Rob Lord & Mark Jacobsen, Max Humphries & Peter Lang 13 th July 2011

2 Strange Behaviour in Unfamiliar Places

3 Strange Behaviour in Unfamiliar Places

4 What exactly are green retrofits? How large a potential market? What are the typical costs & ROI for building wide retrofit? What types of tenants and users are driving this sort of retrofit? What are some of the do s and don ts? What are some of the greatest challenges of retrofits? Setting the Scene:-

5 Commercial Building Data 21.1 million m² of office space in Australia, around 70 per cent of which is to be found in CBDs. In the three years to , activity averaged $77.7 billion per annum for new buildings, alterations and additions. Approx 75% of investment is used for building maintenance and upgrades rather than on the construction of new stock Building activity accounts for approx 9.3% of GDP Approx 25% of building expenditure is on commercial buildings. The value of Australia s commercial building stock has been estimated to be around $575 billion. Approximately 80% OF THE COMMERICAL BUILDING STOCK WAS CONSTRUCTED PRE 1990 The Average National NABERS rating is around 2.8 Stars Existing Building Impact

6 National Sustainability Manager CB Richard Ellis, Los Angeles

7 Global CO2 Emissions Reductions Targets Current Emissions Interim Targets Restorative Targets Emissions Reduction (%) Relative to 1990 Levels Australia USA SA, NSW, VIC USA EU Australia Melbourne, EU Queensland City of Sydney Approx. 3 Star NABERS Energy Approx. 4 Star NABERS Energy Approx. 5 Star NABERS Energy Melbourne QLD, SA, VIC, WA, NSW City of Sydney UK, EU, California

8 Commercial Building Emissions Green House Gas Emissions Account for 10% of national GHG emissions Increase by 2.1%pa BAU scenario GHG increase by 87% from 1990 to 2006 Australia has a legal obligation to reduce GHG emissions (Kyoto agreement) Built environment has the largest & most cost effective GHG abatement opportunity through energy efficiency Government introducing mandatory energy efficiency schemes to overcome market failures and barriers Existing Building Impact

9 Why focus on existing buildings?

10 New Building Impact

11 Global CO2 Emissions Reductions Targets Current Emissions Interim Targets Restorative Targets Emissions Reduction (%) Relative to 1990 Levels Australia USA SA, NSW, VIC USA EU Australia Melbourne, EU Queensland City of Sydney Approx. 3 Star NABERS Energy Approx. 4 Star NABERS Energy Approx. 5 Star NABERS Energy Melbourne QLD, SA, VIC, WA, NSW City of Sydney UK, EU, California

12 What if the same amount of money was used to upgrade 20 buildings a year in each city by 1.5 NABERS stars?

13 Existing Building Impact

14 Global CO2 Emissions Reductions Targets Current Emissions Interim Targets Restorative Targets Emissions Reduction (%) Relative to 1990 Levels Australia USA SA, NSW, VIC USA EU Australia Melbourne, EU Queensland City of Sydney Approx. 3 Star NABERS Energy Approx. 4 Star NABERS Energy Approx. 5 Star NABERS Energy Melbourne QLD, SA, VIC, WA, NSW City of Sydney UK, EU, California

15 Last 3 years - Dramatic Growth in Existing Building LEED EB

16 $21 to $75/sqm Varies w.r.t. Building Age, Original purpose of Building Simple Paybacks vary from 2-15 years Performance Contractors average 5 year payback Johnson Controls Survey March 2009 (GFC) - >50% owners want a 3 year payback Typical costs & ROI?

17 3 types of tenants are pushing green retrofitting :- 1.Top end of Town (e.g. For sustainability reporting) 2.Gazelles (e.g. Attracting new talent) 3.Government (e.g. Policy) The Big Middle not so much Single tenant buildings more likely than multiple tenants USGBCA Survey owners believe the experience is lacking in market a barrier is the lack of established delivery models Tenant & Owner Types

18 Whole Building retrofit more cost effective than piecemeal Establish a Carbon Budget Conduct performance audits Develop Priorities and prioritise low tenant impact first Involve Building owner Staff they have a different set of metrics to Engineers Plan the Project Twice refer to Mark Mitchell s AIRAH Preloved Building Conference 2009 paper good stuff. Dos of Green Building retrofits

19 Don t get too complicated Don t look at Single Issues in isolation e.g. Only HVAC Don t ignore tenants impact. It is significant engage and inform them, make information accessible. Don t forget someone is coming behind you in 20 years document everything! Don t underestimate Operations side. Donts of Green Building retrofits

20 Drivers and Barriers to Green Retrofits Drivers Market demand for high energy rated buildings Government tenancy minimum requirements Portfolio performance and reporting Operational cost savings Government funding opportunities Barriers Split Incentives for costs (owner) and savings (tenants) Low relative cost of energy / no cost for carbon Low / no incentive for operators / facility managers for energy improvement Minimal demand for energy efficient buildings at lower end of tenant market Perceived improvement difficulty and long payback Poor / misinformation No minimum performance requirement Existing Building Improvement

21 Mandatory Disclosure What is it? Disclosure of commercial office building energy efficiency at the point of sale or lease/sub-leasing Second half of 2010 (October) Which Buildings are Affected Commercial office buildings or tenancy >2,000m 2 NLA Who is Affected? Corporations that own or lease buildings above the threshold 2000m 2 NLA Metric for Assessment NABERS Energy (no green power offset) base building Tenancy lighting power density (W/m 2 ) & lighting control details Exemptions New buildings and tenancies with less than12 months operational data (cannot be NABERS rated) Buildings that cannot be rated Strata titled buildings Short term leases of less than 12 months duration (except if extended) Mandatory Disclosure

22 Building Energy Efficiency Certificate (BEEC) Mandatory disclosure

23 Common Areas for Improvement

24 2009 Johnson Controls Survey deal breakers:- Access to Capital 42% Insufficient ROI 21% Lack of ownership 12% Split Incentives 10% Lack of experience 7% Other challenges:- Maintaining the performance Great Challenges

25 Metering to Monitor Building Performance Benefits Ability to track and measure energy performance Identify energy wastage Pitfalls False sense of security Limited monitoring (i.e. monthly billing) Alert facilities management of changes in trends Measure impacts of building retrofits & alterations Measure impacts of tenant behaviour Comparison between modelling and actual performance Too much information, what to do with it? Compliance with NABERS validation and accuracy requirements (1 July 2009) Differentiating between tenant and base building energy uses as defined in the NABERS VP Poor commissioning management Performance Improvement

26 55 St Andrews Place, Melbourne Cundall served as principal consultant, design manager, building services engineer and sustainability consultant for this awardwinning base building upgrade and integrated fitout. Proposed upgrade initiatives include: replacing heavily tinted windows with clear glass and automated external blinds New swirl air diffusion relocating the air intake away from vehicle exhausts new background T5 lighting (180 lux) combined with task lighting rainwater harvesting for toilet flushing creation of a naturally ventilated wintergarden Winner BPN Environ Sustainability Award 2007: Large Commercial Buildings Highly Commended Winner UK CIBSE Sustainable Building Services Award 2007: Most Sustainable Refurbishment Example of Industry Leadership