Green Buildings Regulation Project - A Partnership of Jakarta Government and IFC

Transcription

1 2011/SCSC/WKSP2/012 Session 3 Green Buildings Regulation Project - A Partnership of Jakarta Government and IFC Submitted by: IFC Green Buildings and Green Growth: Approaches to Encouraging a Positive Green Building Climate Singapore September 2011

2 Green Buildings Regulation Project a partnership of Jakarta Government and IFC Presentation for APEC ASEAN Green Buildings Conference Singapore, 12 September, 2011 Why are greener buildings important? Demographic Trends World population will reach 9 billion by 2050: 34% higher than today; poor countries will double current population levels. Age is a significant factor; emerging market populations are creating a huge demand for homes that need to be affordable and green. Urbanization 70% of the world s population will live in urban areas by 2050 (today 50%); 1 in 3 will live in urban areas in Africa & Asia. The emerging middle class with rising income levels is growing by 90 million per year. To meet this demographic change, increased employment opportunities will have to be generated in urban areas requiring additional commercial buildings. Buildings of almost every type represent necessary long term development infrastructure, yet present a real danger of locking in inefficiencies for decades if constructed unsustainably. Climate Change Current GHG Emissions:Buildings account for 15%. One of the fastest growing sectors. IPCC estimates building related GHG emissions to double by 2030 under a high growth development scenario. This increase would take place almost entirely in the developing world. Reducing climate change requires investments/innovation in energy efficiency, renewable energy. McKinsey forecasts that low cost abatement measures are in the building sector. 2 1

3 What does IFC mean by Green Buildings? We define green building as the practice of increasing the efficiency with which buildings use resources such as energy, water and materials while also reducing the building s impact on human health and the environment. 3 Macro strategy for Green Buildings 1. Develop a programmatic approach to encouraging green buildings in priority countries i.e., India, China, Philippines, Vietnam, and Jordan. This could be achieved by actively seeking out green building projects which will also go on to create a demonstration effect and/or by actively supporting the development of Green Building Regulations. 2. Invest in manufacturing of green building materials and technologies in countries with large markets, i.e., Brazil, Mexico, India, China and Indonesia. 3. Look to invest in ways to spread EE investments in existing buildings through different channels (eg Energy Service Companies (ESCOs), vendor financing of EE upgrade products, EE management contracts) in countries with potential high energy savings and large existing building stock, e.g., Mexico, China, Turkey, Russia, Thailand. 4. Invest in green affordable housing in high urban growth countries like Indonesia, Brazil, Nigeria, i Pakistan, Bangladesh, Mexico and DRC. This could be through direct long term financing models for developers as well as indirect mechanisms such as green mortgages through local financial institutions. 4 2

4 Where do green buildings make immediate sense? Building types 24Hr use buildings Hospitals Hotels Call centers Airports Owner occupied buildings Hospitals Hotels Schools Brand Sensitive Clients Supermarkets Housing Developers Countries Countries with high energy tariffs Caribbean West Africa Philippines i Countries where CO2 from electricity generation is high South Africa Indonesia India & China MENA IFC s financial and advisory tools to deliver green buildings 6 3

5 Experience to date Example of support on advisory projects Advice on Green Building Regulation for Indonesia The rationale: Indonesia is the 4th most populous country and a large GHG emitter. Building sector is the 3rd largest energy consumer, accounting for 27% of total energy consumption in Green buildings code [GBC] could reduce CO2 by 138 MtCO2/year. Why IFC is involved: Govt. of Indonesia has requested IFC to provide technical assistance it in coming up with a GBC. Govt. of Jakarta Province is drafting its own GBC in line with national standards. IFC is helping Jakarta with a code that is simple to implement and with consultation with the private sector stakeholders. Green Buildings Code* in Indonesia has a potential carbon reduction of 138 MtCO 2 /year. What have we done so far: Through a market/baseline study, IFC has shown that the GBC needs to focus on the large new commercial buildings. Project Team evaluated the implementability (i.e., energy and water reduction potential, cost impact, market preparedness and ease of implementation) of various requirements under the draft GBC. Rolled-out consultation workshops with key private sector players Provided inputs for GBC formulation Next steps: Review of the financing needs and incentives for firms to encourage retro-fitting of existing buildings. Provide support to the Govt. in the implementation of the code through training and capacity building activities. * GBC will mandate energy and water efficient requirements of buildings. It will also require buildings to include climate change adaptation practices in the design 7 Virtuous Circle of Blame The knowledge and the technologies needed to produce sustainable buildings are available. The economic benefits of sustainable design and construction are now welldocumented in the literature. Why are so few green buildings being designed, built or retrofitted? Why aren t sustainable property investment and management mainstream? Answer. Market failure due to misalignment of incentives between the providers of buildings and occupy buildings. Investors We would fund energy efficient buildings, but there is not demand for them Occupiers We would like to have an energy efficient building, but there aren t any Cycle of blame Developers We would ask for energy efficient buildings, but investors won t pay for them Builders We can build energy efficient buildings but developers don t ask for them Adapted from Cadman,

6 Different markets require different solutions Informal homes Approach to green buildings: Access to low cost materials, better planning, awareness raising, investments in power, water and sewage infrastructure, and microfinance for low-cost building materials Number of buildings Urban housing [apartments, social housing] Approach to green buildings: Corporate Finance; Incentives through FI using products such as green mortgages, Market for green materials, appliances labeling and ordinance for solar heating and lighting products Mid-size commercial [hotels, hospitals, offices] Approach to green buildings: Debt/ Equity; Investments in ESCOs and EE tech companies, inc, BIPVs and cooling/heating systems Green building regulations on energy use. Large complexes [i.e., large retail, airports, SEZs or housing schemes involving more sophisticated building developers and consultants] Approach to green buildings: PPPs, Direct investments in green building projects to create a demonstration effect. Potential for IFC to make directly investments Size of buildings 9 Development of Green Building Codes: Methodology 5

7 Sensitivity Analysis: Choosing the best measures to include in the GBC Step1: Weather data for Jakarta Using 20 years empirical hourly data including temperature, humidity [ oad/weather/non-us] see Appendix- A: Jakarta Weather Step2: Empirical energy consumption data Data obtained from IFC report,see Appendix-B ENERGY MODEL Step3: Virtual model of 6 types of building with varying design and specifications see Appendix-C: Building Dimensions & properties Step4: Use of energy simulation software to predict energy consumption. Calibrated to match energy use from typical buildings in Jakarta. E-quest, DOE, US software used, Refer Appendix B for Existing energy usage in the Buildings SENSITIVITY ANALYSIS Step5: Sensitivity analysis by changing key building parameter to quantify energy saving potential. See appendix D: Results Spread Sheet OUTPUT Optimum performance level e.g., thickness of roofs insulation Energy saving potential of each measure e.g., insulation of roofs Sensitivity Analysis: Example findings- WWR Wall to Window Ratio Potential saving from reducing the proportional glazed area of a building s facade ial Energy Saving % -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% %WWR Potenti Wall to Window Ratio (WWR) 69% 53% 40% 34% 20% Office Retail Hotel Hospital Apartment School Regulating the percentage area of windows of an office building such that it does not exceed 40% will reduce energy consumption by 8% compared to a typical office building in Jakarta. 69% 53% 40% 33% 20% Note: WWR: Wall to Window ratio. Net glazing area (window area minus mullions and framing, or ~80% of rough opening) divided by gross exterior wall area (e.g., multiply width of the bay by floor-to-floor height) equals window-to-wall ratio (WWR). School and Apartment: Base case considered for these is 33.5% & 40% WWR respectively compared to 70% for other types. Therefore, the % saving are lower Current Building Regulations Wall to Window Ratio is not mentioned in SNI, however, Table 1-14 (SNI_03_6389_2000_selubung bangunan) covers the selection of roof, window glass and walls Proposed value for GBC WWR= 40% and 33.5% as mentioned below Potential Enhancements Table 1. Recommendation for WWR Value Building type Base Case (WWR Ratio) Recommendation (WWR Ratio) Potential Energy saving (%) Office 70% 40% 8% Retail 70% 40% 4% Hotel 70% 40% 9% Hospital 70% 40% 8% Apartment 40% 33.5% 2% School 33% 33.5% Base case 6

8 What measures make immediate sense? where? Sensitivity Analysis of Energy Efficiency option for Jakarta shows that energy savings of more than 30-50% can be achieved from simple measures High Impact Measures Office Retail Hotel Hospital Apartment School Photoelectric controls [inclusion of controls to maximize daylighting] Solar Shading [addition of horizontal and vertical devices] Glass performance [higher solar and thermal properties] 18% 11% NA 17% NA 10% 17% 11% 18% 18% 8% 2% 15% 6% 16% 14% 11% 5% Efficient Chillers [higher chiller COP] 11.4% 8% 6% 7% 9% 12% Variable speed drives [inclusion of variable drives on 9% 3% 3% 5% 0.0% 0.0% pumps] Percentage glazing [limiting window to wall ration of the 8% 4% 9% 7% 2% 0.0% façade] Low energy Lights [limiting the power density for artificial lighting] 7% 8% 7% 16% 6% 5% Thermostat Mgmt [limiting the min temperature] Heat Recovery [adding heat recovery unit to fresh air inlet] 2% 3% 3% 7% 6% 11% 2% 5% 3% 8% 0.0% 0.0% * Note: the above values must not be aggregated as they only reflect the potential of making each individual measure. The total energy savings potential will be smaller than the sum of individual measure What measures make immediate sense? where? Sensitivity Analysis of Water Efficiency option for Jakarta shows that water savings of more than % can be achieved from simple measures High Impact Measures Office Retail Hotel Hospital Apartment School Water Efficient Landscape 12% 9% 3% 6% 14% 5% Rain water harvesting 15% 31% 4% 14% 17% 9% Use of water conservative fittings 34% 38% 30% 15% 35% 32% Recycling- using Sewage Treatment Plant 67% 72% 24% 21% 50% 66% Adopting all the above measures 87% 100% 46% 38% 78% 74% * Note: the above values must not be aggregated as they only reflect the potential of making each individual measure. The total energy savings potential will be smaller than the sum of individual measure 7

9 Implementation Matrix Sample OFFICE BUILDING Logic Energy Efficiency Measure (EEM) EE measure Higher efficiency chillers Specify AC Chillers of COP 6.7 instead of the standard 3.2 Energy Saving Potential 11.40% Availability of Technology in Jakarta / Ease of implementation Cost of the EEM Yes, for both technology & ease of implementation Increase in total building cost 0.82% Payback analysis 1 Year 7 months Recommendation for regulation Yes, include in Regulation 15 Implementation Matrix Sample -- APARTMENTS Logic Environmentally Beneficial Measure Sample Water Efficient Fixtures Installation of Low-flow water fixtures ([inc. low flow taps and W/C flushes] Water Saving Potential 38% of total fresh water requirement Availability of Technology in Jakarta / Ease of implementation Cost of the EEM Yes, for both technology & ease of implementation Increase in total building cost 0.09% Payback analysis 1 Year 11 months Recommendation for regulation Yes, include in Regulation 16 8

10 What is the cost impact? Measure Category %Saving Cost increase payback period Window to wall ratio Building Envelope 8.0% Negative 0.0 Include Solar Shading Devices Combined Building Envelope 17.3% 7.2% 25.0 Consider Reflectivity - Wall Building Envelope 0.5% 0.0% 4.8 Include Thermal Conductance - Wall (Wall U-Value) Building Envelope 0.3% 0.5% 98.6 Exclude Reflectivity - Roof Building Envelope 0.2% Negligible - Include Thermal Conductance - Roof (U-value) Building Envelope 0.1% 0.0% 18.1 Consider Glazing Assembly Properties (U-value, SHGC, VLT) Building Envelope 7.3% 0.1% 0.9 Include COP of air conditioning (cooling) equipment HVAC 11.4% 1% 5.4 Include Variable Speed Drives for cooling towers HVAC 9% 0% (0.1) Include Heat recovery on extract air HVAC 2% Cost awaiting 26.2 Consider Solar collectors for Hot water Hot water NA NA --- Exclude Photo electric control perimeter lighting Lighting 18% 2% 7.4 Include Exterior lighting controls Lighting NA NA --- Exclude Low energy lighting [CFL, T5, LEDs etc] Lighting 7% 0.12% 1.0 Include Electronic Ballast Electrical Power 2% Negligible 0.0 Include Sub-metering benefits Electrical Power 3% NA NA Consider Water efficient fittings [inc. low flow taps and W/C flushes] Water and Waste 40% 0.35% 6.0 Include Rainwater harvesting Water and Waste 15% Cost awaiting 26.2 Consider Recycling onsite Sewage T plant Water and Waste 67% Cost awaiting 7.4 Consider Water metering Water and Waste NA Negligible NA Include Storm water attenuation and ground water recharge Water and Waste NA Minimal impact NA Include Implementation Matrix Summary- [Work in progress] Measure Office Retail Hotel Hospital Apartment School Window to wall ratio Include Include Include Solar Shading Devices Combined Include Include Include Include Include Reflectivity - Wall Include Reflectivity - Roof Include Include Include Thermal Conductance - Roof (U-value) Glazing Assembly Properties (U-value, SHGC, VLT) Include Include Include Include Include COP of air conditioning (cooling) equipment Include Include Include Include Include Variable Speed Drives for cooling towers Include Include Include Include Heat recovery on extract air Include Include Solar collectors for Hot water Include Include Include Photo electric control perimeter lighting Include Include Include Exterior lighting controls Include Include Low energy lighting [CFL, T5, LEDs etc] Include Include Include Include Include Include Electronic Ballast Include Include Include Include Sub-metering benefits Include Include Include Include Water efficient fittings [inc. low flow taps and W/C flushes] Include Include Include Include Include Include Rainwater harvesting Include Include Include Include Recycling onsite Sewage T plant Include Include Water metering Include Include Include Include Storm water attenuation and ground water recharge Include Include Include Include Include Include Estimate net energy savings [tbc] >25% >15% >30% >30% >15% >15% Predicted cost increase[ tbc] 5% 3% 3% 3% 2% 3% 9

11 Jakarta: GROWTH Building & PROJECTIONS Stock Growth Assumptions CATEGORY CUMULATIVE SQM AS OF 2010 AVE ANNUAL GROWTH BY SQM AVE ANNUAL GROWTH BY SQM (%) Office 9,281, , % Retail 5,681, , % Residential 20,447,539 1,321, % Hospital 260,206 24, % Schools 411,688 22, % Hotel 3,258, , % Jakarta: Total Number of Buildings to be Impacted (Cumulative Starting in 2012) Hotel School Hospital Retail Residential Office

12 Jakarta: Projected Energy Consumption of Each Year s New Builds 500, , ,000 Mwh 350, , , EE Codes BAU Thank you Thank you 11