Intelligent Buildings - Meter Reading and Energy Management Ron Zimmer President & CEO Continental Automated Buildings Association September 8, 2003 St

Intelligent Buildings - Meter Reading and Energy ManagementRon ZimmerPresident & CEOContinental Automated Buildings Association

September 8, 2003St. Louis, MO

Mapping Your Future: From Data to ValueAMRA 2003 International Symposium

Presentation Objectives


1. Energy Management

2. Meter Reading

3. Intelligent/High Performance Buildings

4. Benefits and Opportunities

Mapping Your Future: From Data to Value

AMRA 2003 International Symposium

Continental Automated Buildings AssociationAssociation

Mission Statement:

“ To encourage the development, promotion, pursuit and understanding of integrated systems and automation in homes and buildings.”

www.caba.org

Definition of Intelligent Building Technologies


“ The use of integrated technological building systems, communications and controls to create a building and its infrastructure which provides the owner, operator and occupant with an environment which is flexible, effective, comfortable and secure.”

Source: Technology Roadmap forIntelligent Buildings (http://www.caba.org/trm)

Once Upon a Time...


SOURCE: Equity Office



Energy Through the Century and BeyondEnergy Through the Century and Beyond

1900 - 1930s1900 - 1930s Energy Generated on Site Steam - Electric - Mechanical.

1940 - 19701940 - 1970 Large Centralized production, transportation and distribution of power by government regulated monopolies.

19801980 Deregulation of natural gas market; Incentives for efficient on site generation of electric power.

19901990 Deregulation of electric power (almost)!

2000 & Beyond2000 & BeyondMarket-driven system, promoting efficient generation, supply, production, distribution and utilization of all power commodities.



Overall Energy MarketOverall Energy Market

Supply Production Distribution

$250B - Electric$ 90B - Natural Gas$ 60B - Other Fuels

$ 45B - Facilities$ 30B - O & M

$ 25B - Electric - Steam - Air - Chilling - etc.

$500,000,000,000 Annual Market$500,000,000,000 Annual Market

$400B Total $75B Total $25B Total

U.S. Energy Consumption By Category


0

20

40

60

80

100

120

140

1960 1970 1980 1990 2000 2010 2020

Transportation Industrial Commercial Residential



The Commercial Building Sector Will Continue to Grow Its Share of US Energy Consumption

The Commercial Building Sector Will Continue to Grow Its Share of US Energy Consumption

0

50

100

150

Commercial buildingelectricityexpenditures ($ Billion)

0.0

0.5

1.0

1.5

2.0

Commercial buildingenergy cost ($/SF)

Com

merc

ial

Resid

enti

al

0.0

20.0

40.0

60.0

80.0%

Buildings' shareof US electricityconsumption

Paradigm ShiftParadigm Shift

Demand Bidding, Risk Demand Bidding, Risk Management, Intelligent Management, Intelligent ControlsControls

Curtailable, Interruptible Curtailable, Interruptible Direct ControlDirect Control

Demand Demand RespondRespond

Interactive MarketInteractive MarketUtility Command/ControlUtility Command/ControlCustomer Customer InvolvementInvolvement

Preserve Reliability Preserve Reliability

Cost ManagementCost ManagementPeak , Shaving Shifting, Peak , Shaving Shifting, ConservationConservation

Load Shape Load Shape ObjectivesObjectives

Hourly (Sub-hourly) LoadsHourly (Sub-hourly) LoadsTime Period LoadsTime Period LoadsMeteringMetering

Real Time PricingReal Time PricingTOU RatesTOU RatesPricingPricing

After 2000After 20001970’s-20001970’s-2000

EvolutionEvolution

Trends:Trends: •Reduced choice•Increasing costs•Lack of control•Declining value to customers

•Reduced choice•Increasing costs•Lack of control•Declining value to customers

•Increasing choice •Cost volatility•Value of information

•Increasing choice •Cost volatility•Value of information

From Figure 1-1New Principles for Demand Response PlanningEPRI Final Report, May 2002

Deregulation Deregulation legislation not legislation not passedpassed

Legislation passed; no Legislation passed; no action takenaction taken

Partial competition: IOUs Partial competition: IOUs restructuring / deregulation restructuring / deregulation suspendedsuspended

Full competition Full competition

Legend:Legend:

Status of electricity market restructuring & 2002 prices (c/kWh):

Source: Energy Information Administration; Energyguide.com

DC (7.5)DC (7.5)

WA WA (6.3)(6.3)

OR (6.9)OR (6.9)

CACA(13.2)(13.2)

AZAZ(6.1)(6.1)

UTUT(5.5)(5.5) CO CO

(5.6)(5.6)

TX (6.8)TX (6.8)

MN MN (6.0)(6.0)

LA LA (6.7)(6.7)

IL IL (8.3)(8.3)

IN IN (6.(6.0)0)

FL FL (6.7)(6.7)

GAGA(6.5)(6.5)

NC (6.5)NC (6.5)

VA (5.9)VA (5.9)

OH (7.7)OH (7.7)

PA (8.3)PA (8.3)

MA (10.1)MA (10.1)

CT (9.3)CT (9.3)

NY (12.2)NY (12.2)

Note: Prices in c/kWh for Jan to Sept. 2002 for Commercial sector

EOP Is Exposed to Varied & Changing Energy Regulatory Environments and Market Prices

EOP Is Exposed to Varied & Changing Energy Regulatory Environments and Market Prices


NEW PARADIGM - Supply ManagementNEW PARADIGM - Supply Management

• In the New Paradigm you’ll have to be just as knowledgeable on energy supply products as energy conservation methods due to value-cost tradeoffs.

• New products connect the value of the hedged volumes with the cost of demand response alternatives.

• Corporate guidelines for commodity risk management /accounting to support real time, value-cost decision making.

• In the New Paradigm you’ll have to be just as knowledgeable on energy supply products as energy conservation methods due to value-cost tradeoffs.

• New products connect the value of the hedged volumes with the cost of demand response alternatives.

• Corporate guidelines for commodity risk management /accounting to support real time, value-cost decision making.

SOURCE: Sempra Energy Solutions

Demand ResponseDemand Response

“Market rules…must not unduly bias the choice between demand or supply resources, nor provide competitive advantages or disadvantages to large or small demand or supply resources. Demand resources…should be able to participate fully in energy, ancillary services and capacity markets.”

“Demand can best respond by participating in the day-ahead market. Demand response options should be available so that end users can respond to price signals and reduce loads as they feel the price exceeds their individual willingness to pay for delivered electricity.”

“Market rules…must not unduly bias the choice between demand or supply resources, nor provide competitive advantages or disadvantages to large or small demand or supply resources. Demand resources…should be able to participate fully in energy, ancillary services and capacity markets.”

“Demand can best respond by participating in the day-ahead market. Demand response options should be available so that end users can respond to price signals and reduce loads as they feel the price exceeds their individual willingness to pay for delivered electricity.”


FERC, Electricity Market Design and Structure Working Paper, 3/02

The FERC On Demand Response…

Demand ResponseDemand Response• Real time telemetry/metering system to include sub-

metering of system segments.

• Segmenting critical, non-critical loads, high priority & low priority loads.

• Deploy/effectively control all on-site distributedresources.

• Incorporate software that can respond to real time price signals by automatically controlling load segments.

• Incorporate all the EnergyStar® Buildings design and construction materials to ensure lowest absolute energy needs.

• Real time telemetry/metering system to include sub-metering of system segments.

• Segmenting critical, non-critical loads, high priority & low priority loads.

• Deploy/effectively control all on-site distributedresources.

• Incorporate software that can respond to real time price signals by automatically controlling load segments.

• Incorporate all the EnergyStar® Buildings design and construction materials to ensure lowest absolute energy needs.


NEW PARADIGM - ExamplesNEW PARADIGM - Examples• Retail customers will be linked to wholesale

(ISO/RTO) markets in real time.

• Demand reduction as an option:– Pay for the right to ask you to shut down some of

the load.

• On-site generation as an option:– Via load reduction.– Dispatch to the grid.– Pay you for the right to turn on your generator.

• Need to view long-term retail supply and ability to dynamically manage it as an asset.

• Retail customers will be linked to wholesale (ISO/RTO) markets in real time.

• Demand reduction as an option:– Pay for the right to ask you to shut down some of

the load.

• On-site generation as an option:– Via load reduction.– Dispatch to the grid.– Pay you for the right to turn on your generator.

• Need to view long-term retail supply and ability to dynamically manage it as an asset.




Perform RateAnalysis

Perform RateAnalysis

Performance Metrics Performance Metrics

Energy & Expense Profiles

Energy & Expense Profiles

Energy AlarmsEnergy Alarms

DispatchDistributedGenerators

DispatchDistributedGenerators

Weather/OccupancyCompensation

Weather/OccupancyCompensation

Energy Monitoring and ITEnergy Monitoring and IT

Utility Bill AnalysisUtility Bill Analysis& Validation& Validation

ENTERPRISE – EMSENTERPRISE – EMS




Figure 1 – Integrated Enterprise Energy Management

SOURCE: Gridlogix, Inc.

Energy Monitoring & IT


• Distributed processing provides low-cost access to real time revenue-grade data.

• Digital revenue-grade meters can store months of information.

• Web-based systems provide communications to thousands of meters.

• Systems are capable of integrated energy and financial algorithms.


BUILDING & ENERGY MGT. SYSTEMS


1. Energy Information Systems (EIS)

2. Building Management Systems (BMS)

3. Energy Management and Control Systems (EMCS)

4. Enterprise Energy Management (EEM)

5. Demand Response Systems (DRS)

6. Advanced Demand Response Systems (ADRS)

7. Intelligent Energy Management Systems (IEMS)

Source: WebGen Systems



SOURCE: WebGen Systems



SOURCE: WebGen Systems

RECOMMENDATIONS:


1. Use an open standard, such as BACnet or LonWorks;

2. Manage systems integration between these buildings in- house; and

3. Use an Intelligent Energy Management System.

Note: Further information can be found on CABA’s Information Series “Why Intelligent Agents can reduce Energy Costs better than Building Mgt. Systems or Human Experts”.Source: WebGen Systems



Electricity UsageElectricity Usage

0% 5% 10% 15% 20% 25% 30%

Misc.

Refrigration & Cooking

Water

Exterior Light

Office Equipment

Ventilation

Heating

Cooling

Interior Light

SOURCE: Alan Whitson



Who Gets the Energy Savings...Who Gets the Energy Savings...

$1.95 $1.60

$0.15

Before Upgrade After Upgrade

• Total Savings $0.50/Sq. Ft.

– Tenant Saves $0.15/Sq. Ft.

– Landlord Saves $0.35/Sq. Ft.

• Building Value Increases

– $0.35 Net Energy Savings

– ÷ 7.5% Cap Rate

– $4.67 Increased Value

• Bottom Line - $1,657,850

355,000 SF 19-Story Building SOURCE: Alan Whitson



Saving Energy PaysSaving Energy Pays

$1.25

$6.67

Investment Building ValueCreated

• Invest $1.25/sq. ft. in an Efficient Lighting Upgrade

• Saves $0.50/sq. ft. in Energy Costs per Year– Payback - 2.5 Years– ROI - 40%

• Creates $6.67/sq. ft. in Building Value– ROI - 533.6%

SOURCE: Alan Whitson



TIFFANY BUILDING - SAN FRANCISCO

Modeled Savings

Measure CostPayback (Yrs.)*

Building Controls $250,000 4.2

Convert SF 1&2 to VAV

Annual Utility Savings

VFD Cooling Tower

$260,000

$11,000

$521,000

$58,956

$45,093

$2,603

$106,652

5.5

3.5

* Calculations include California energy incentivesSOURCE: Kenmark Controls, Inc.



Echelon Building 1

San Jose:75,000 sq ft2000 points monitored

2001 Energy Costs:Electricity: $ 296,533Gas: $35,946

KWh: 1,740,000(Model): 4,134,000 KWhSavings: -58%

SOURCE: Kenmark Controls, Inc.

IS METER READING/ENERGY MANAGEMENT IMPORTANT?


NEWS BULLETIN

June 23, 2003 - Public Service Electric and Gas (PSE&G), New Jersey’s largest regulated utility, serving nearly 3/4 of the states population, announced spending of $1.4 billion over the next five years to improve its electric systems...

National Energy Marketers Association (NEMA) Recommendations:


1. Upgrade Nation’s Aging Energy Infrastructure.

2. Implement Advanced Metering.

3. Grant Consumers Access to Usage Data.

4. Take Measures to Make Metering Open/Competitive.

5. Encourage Competitive Metering Through Investments Vehicles to Upgrade Metering Systems.

6. Combined Advanced Metering Technology with the Internet.

SOURCE: NEMA

FUTURE RESEARCH


U.K. CARBON TRUST - LOW CARBON INNOVATION PROGRAMME

AIM - To obtain independent data on use of advanced metering techniques applied to utility metering for Metering, Monitoring and Targeting at SME level.

www.thecarbontrust.co.uk

FUTURE EVENT


Produced and Managed by:

CABA and EH EVENTS & EDUCATION

www.accessthehome.com

Your Information Source for Home and Building Automation


www.caba.org

E: [email protected]: 613.990.7407F: 613.991.9990

US/ Canada: 888.798.2222Mexico: 001.888.514.2222

Documents

Intelligent Buildings - Meter Reading and Energy Management Ron Zimmer President & CEO Continental Automated Buildings Association September 8, 2003 St