Developing, Financing and Operating Energy Efficiency Projects at Caltech

John Onderdonk Manager for Sustainability Programs Matthew Berbe Energy Manager 06/14/11

Learning Objectives
Climate action Challenges & barriers energy program startup Energy management program design Caltech Energy Conservation Investment Program Low hanging fruit Retro-commissioning projects Sustaining savings Innovation Generation portfolio

June 14, 2011

Caltech

Caltech Overview
Private research university in Pasadena, CA Campus population roughly 6,000 120+ GWH electricity annually 60% generated in CoGen Energy Intensity ~300 MBTU/SF
Average UC Campus ~ 180 MBTU/SF

$20M+ annual utility bill 4.1 Million SF of buildings 125 acres in urban setting

June 14, 2011

Caltech

2009 Emissions Sources (MTCO2e)

Other On-Campus Stationary 7% Faculty / Staff Commuting 5% Scope 2 T&D Losses 2% De Minimus
(Univ. Fleet, Fertilizers, Student Commuting , Other Travel, Solid Waste)

Air Travel 12%

1%

Combined Cycle Cogeneration System 44% Purchased Electricity 29%

Return to 1990 levels by 2020 (50,000 MTCO2e reduction)

Annualized return per MTCO2e avoided = $130
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Caltech

Barriers to Implementation
Difficult to form the retrofit team Initially no clear process to request funds, vague qualifications Minimal performance reporting requirements, savings not materializing

Adapted from: Managing University Energy Costs, 2009

Numerous potential bottle-neck points

June 14, 2011

Caltech

Energy Audit to Implementation

Identify organizational resources that complement and support engineering efficiency solutions Constrain Projects: 6Yr SPB, >15% ROI
Built in incentive for top-performing projects Innovation in conceptual design, projects cant just be the low hanging fruit

Establish a sense of urgency:

Utilization of available incentive funding Success of program is dependent on early wins
June 14, 2011

Caltech

Energy Insight #01

Energy audits are widely promoted by energy solution providers as well as utility, university, and government programs. Nevertheless, the implementation rate for energy saving programs based on energy audits remains discouragingly low. While the very best programs may achieve 50% implementation, rates in the 20-30% range are more typical. This begs questions about the design, conduct and follow-up of energy audits. (Association of Energy Engineers, 2010)

June 14, 2011

Caltech

Energy Insight #01

Caltech Energy Audit Implementation 80+% (2 program years)

June 14, 2011

Caltech

EM PROGRAM DESIGN
Widen perspective of EM savings dont only come from replacing the lights & motors, they come from maintenance, vigilant adherence to sequence of operations. Working with building occupants to increase the understanding of how to work in a green building increases success rate of a retrofit.

June 14, 2011

Caltech

EM Program Design
RFP Energy Services Company

(Build The Team)

Zero Cost Feasibility Study Utility incentivized energy simulations M/V in-house (typically 4-5% of project costs) Share the Vision
(the whole team must understand key success factors)

Goal is to obtain:
Self sustaining financial cash-flow Transparent pricing Sustained savings for long term
(training for operators, Investment Grade documentation)
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Caltech

EM Program Design
Balance Baseline duration with Opportunity Cost of retrofit delays
Develop Fast-Action ECM List (typically automation related) Understand Opportunity Cost (lost savings) by delaying implementation of an ECM in favor of more-data; is the increased accuracy worth it?

80/20 rule - roughly 80% of the effects come from 20% of the causes Traditional versus full throttle energy management
Start with Operational Effectiveness (get better at what we do) Transfer to improved strategy over times as skills improve
June 14, 2011

Caltech

EM Program Design
Its not all technical
Process Tool for ECM Development (works with any task or project)
Gut Feeling/Instincts Facts / Data / What do we know

Critic/It wont work because

Creativity/ Innovation/ New Ideas

Agenda / Organizing / Overview

ECM

Positive/It will work because

Adapted from Six Thinking Hats, E. de Bono

When the problem seems too complex, or the apparent solutions are stale, try a rapidly applied structured thought exercise
June 14, 2011

Caltech

EM Program Design
Understanding Energy Usage via Sub-Metering

Source: RCx Investigation Report prepared by Taylor Engineering, January 2011

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Caltech

EM Program Design
Understanding Energy Usage

Projects Must:
Exhibit verifiable savings Contain a plan for periodic measurement & verification Have a simple payback of 6 years or less

Calibrated Energy Model

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Caltech

CECIP/ESPC COMPARISON
Process Flow Itemized Comparison Summary

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Caltech

Caltech Energy Conservation Investment Program

Caltech has created the Caltech Energy Conservation Investment Program (CECIP) to finance energy efficient infrastructure projects in order to reduce Caltechs energy costs. Projects Must: Utility Savings
$ $
Program Performance
Implement ECM Exhibit verifiable savings Contain a plan for periodic measurement & verification Have a simple payback of 6 years or less

Capital Revolving Fund Annual Savings ($K) 409 929 $1,000

Net Cost After Rebate ($K) FY 09 Projects FY 10 Projects FY 11/12 Projects

(projected)

Simple Payback (yrs) 1.5 3.6 4.4

624 3,340 $4,400

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Caltech

CECIP Paybacks
The Program is Gaining Momentum

Growth pattern is visible and measureable

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Caltech

Dept. of Energy ESPC Program

Advantages/Disadvantages Advantages
+ Enables comprehensive retrofits

+ 30 year track record; standard contracts and processes developed + Can easily be combined with other incentive programs to enhance the value of the project. + Lends itself to rigorous monitoring & verification; can provide opportunities for critical data collection

Advantages for CECIP Disadvantages

- Process requires the active engagement of the client's staff - Difficult to standardize financing

June 14, 2011

Caltech

Energy Insight #02

Energy Investment Index:
$ Invested in Energy Projects $ Annual Utility Budget

According to the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE), Top Performers are at 10% or better.

June 14, 2011

Caltech

Energy Insight #02

Caltech Energy Investment Index 20% (2 year average)

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Caltech

LOW HANGING FRUIT

Low hanging fruit: Targets or goals which are easily achievable and which do not require a lot of effort. (URBAN Dictionary.com)

Lighting Motors Economizers

June 14, 2011

Caltech

Low Hanging Fruit

Motors Economizers
(Let ambient air do the work)

Lighting

1000 HP

$750K Investment $275K Annual Savings

2M SQFT of campus 1 MW reduction

(70 motors retrofitted) Average 7% efficiency improvement

$270K Rebate

June 14, 2011

Caltech

Lighting Retrofits
Map of Annual kWh Savings
TO DATE:
1 M SQFT 0.5 MW Reduction Annual Savings of $187k

IN PROGRESS:
1 M SQFT 0.3 MW Reduction Annual Savings of $118k

UPCOMING:
255k SQFT 55 kw Reduction Annual Savings of $22k June 14, 2011

Caltech

Parking Structure LED

Existing T8 fluorescent bulbs
South Wilson Energy Consumption - FY08/FY09/FY10/FY11
17,500 15,500 13,500

kWh

11,500 9,500 7,500 OCT NOV DEC

2010

JAN

FEB
2011

MAR

APR
2008

MAY

JUN

JUL

AUG

2009

June 14, 2011

$25K Implementation cost $9K Annual avoided costs $11K Rebate

New LED bulbs 50% energy savings

Caltech

RETRO-COMMISSIONING
A process to optimize building system performance

Benefits of Retro-Commissioning
Typical annual energy savings: 5% - 10% Fewer occupant complaints/issues Improved Indoor Air Quality and working environment

June 14, 2011

Caltech

RCx Finding
HVAC Running Weekends

Air-Handler running during scheduled unoccupied time

June 14, 2011

Caltech

Hot/Cold Aisle Data Center Retrofit

180 GPM chilled-water flow reduction with zero impact on operation

June 14, 2011

Caltech

RCx AHU Optimization

Broad Center

Broad Center - Built 2002 - 125K SQFT

Project Intent:
Valve replacement Reset strategies static and thermal Zone level DDC for statistical sampling
June 14, 2011

Caltech

RCx AHU Optimization

$200K Avoided Cost

Broad Center - Built 2002 - 125K SQFT

$500K Investment, $240K Rebate, $200K/Yr Savings Performance is exceeding expectations by 20%
June 14, 2011

Caltech

RCx AHU Optimization

Pre Post

North Mudd

North Mudd- Built 1938 51K SQFT

Control valve replacement Sequence of operation modernization Improved system level feedback (wireless temp sensors, exhaust humidity, leaving coil temp) $40K Annual operating savings from mechanical RCx

June 14, 2011

Caltech

RCx AHU Optimization

AVERY Center
AH-1

Convert to Variable Volume Single Zone Unit (VFDs on SF & RF)

AH-3

Convert to Variable Volume Multi-Zone Unit (VFDs on SF & RF, 7 new Damper Actuators)

June 14, 2011

Caltech

RCx - Enable Variable Speed Fan Control

Millikan Library

Millikan Library - Built 1967 - 60,000 - SQFT

Baseline All fans operating at 100% Speed 200 Annual MWH savings by introducing variable speed control
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Caltech

Downs Lauritsen
Return Fan Installation, New Dampers and Controls $50K Per Year Operating Savings

Before

New Return Fans

After

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Caltech

SUSTAINING SAVINGS
Building energy usage creeps up 3% per year in a post-retrofit period.
California Energy Commission Public Interest Energy Research Program, 2003

June 14, 2011

Caltech

To Realize Full Potential of CECIP

the human element is being addressed

Strategic Goal for Facilities Management:

Aggressive training program for O/M staff, critical to sustaining the investment of CECIP
June 14, 2011

Caltech

Beckman Institute Tek-Air Training

April 7, 2011
Purpose:
Hands-on Training and Q & A for the demonstration project in Beckman Institute Lab 244

Participants:
CIT HVAC, Tek-Air, Control Works, Emcor Mesa

June 14, 2011

Caltech

Enterprise Energy Management?

A true Enterprise Energy Management (EEM) system encompasses all areas of business operations that have direct and measurable impact on the energy budget. EEM is not enterprise-wide metering, but rather thinking about energy as a strategic resource process flow rather than an uncontrollable (metered or billed) cost.

June 14, 2011

Caltech

Sustaining Savings via Information Technology

Energy Investment Key Performance Indicators (KPIs) System generates automatic notifications to key personnel of deviations from optimum operation

Value Proposition: Address the immediate need of energy investment sustained performance through active, systemic, energy management
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Caltech

Conceptual View of System

June 14, 2011

Caltech

A Deeper Look at the Moving Parts

Air Flow Reading Calibration Frozen Damper Temperature Reading Calibration

Damper Motor Failure Hot Water Valve Failure

Standard Lab VAV Reheat System

Supply Air Must be cooled to satisfy Highest Heat Load Re-Heat is incorporated through re-heat coil in VAV box to warm supply air to appropriate zone demand.

The Business Need & Opportunity

Managing the technical and human-resource issues surrounding building occupancy is a significant and growing concern for modern business and public policy Existing technology, applied strategically, provides an opportunity for the use of a low-cost, low-hassle, datadriven change-management exercise that leverages IT to manage existing resources more intelligently The ability to actively manage energy conservation performance through routine compliance validation and Supply/Demand vigilant IT.
June 14, 2011

Caltech

What Were Working on Now

Real-time Building Models How much energy should we be using now (if we varysend an email, or enable load shed)

June 14, 2011

Caltech

Active Energy Management

Working with Control Works to refine a one page summary of how the systems are maintaining to achieve energy savings. Pilot Project Avery Center Working with Phoenix Energy Technologies to develop an IT dashboard for demand side management on a per building basis.

June 14, 2011

Caltech

Maximum Use and Re-use of Data

Codify field surveys in digital archive

Record training of sequences

Connect back to operator front end for improved sustained operation

June 14, 2011

Caltech

INNOVATION

Its important to constantly challenge yourself and your understanding of the business as usual.

June 14, 2011

Caltech

Innovation
Pasadena Water & Power California Institute of Technology
Technologies Review & Demonstrations Program (TRDP)

Independently review new technologies Conduct technology review meeting with vendor Identify potential applications Develop technology Energy Efficiency Modeling Protocol (EEMP)
Forward to third part for review Identify funding sources Implement technology demonstration project
Measure pre and post conditions Collect field data Create FAQ from field experience Create summary document outlining all findings Capture all data in field verification technology binder

June 14, 2011

Caltech

Technology Demonstration Project

Location:
Beckman Institute Lab 244

Purpose:
Retrofit of a Variable Air Volume (VAV) to a low-pressure drop design.

Objective:
Document energy efficiency benefits and system versatility, assess feasibility across campus and other markets June 14, 2011

Caltech

Technology Demonstration Project

Location:
Existing 15-ton roof top, packaged air conditioning units serving Chandler Hall Dining Room

Purpose:
The Catalyst EEC is designed to be a retrofit controller for existing constant volume, roof top package HVAC units. This controller/VFD is interfaced with the controls of a DX, roof top HVAC units supply air fan, cooling controls, heating controls, economizer, an outdoor air temperature sensor, a return air temperature sensor, and the units thermostat or BAS controller.

Objective:
Document energy efficiency benefits and system versatility, assess feasibility across campus and other markets

Catalyst Energy Saving Strategies

Opti-Run Fan Control Integrated Economizer Advanced Economizer Changeover Unoccupied Damper Control Demand Control Ventilation Demand Charge Reduction

June 14, 2011

Caltech

GENERATION PORTFOLIO
Cleaner, more economical and predictable power

Caltech is its own micro-grid with a diverse portfolio of energy generators. The portfolio supports the energy needs of Caltech while being less carbon intensive than traditional purchased electrical power
June 14, 2011

Caltech

Solar

1.3 MW 3 Parking Structures 8 Buildings

June 14, 2011

Caltech

Fuel Cells
10 year contract Power Purchase Agreement No Caltech investment except enabling costs No AQMD permit No heat recovery Install 2010/2011
Bloom Electron Service (PPA) Launch Event January 2011, CALTECH

June 14, 2011

Caltech

SUMMARY

INTEGRATE WITH EVERYDAY BUSINESS

Leverage synergies between CECIP, renewal and infrastructure projects to maximize the long-term benefit to the facility
June 14, 2011

Caltech