Presentation on Life cycle costs for Intelligent Buildings

1. Building Automation and Security Integration
Yorkland Controls - Honeywell
June 2, 2010, Richmond Hill
Lowering Life cycle Costs and Using CABA
Intelligent Building Quotient for OPA Incentives
and Demand Response
David Katz, MBA, BA
Sustainable Resources Management Inc.
Tel: 416 - 493 - 9232
Fax: 416 - 493- 5366
Email: dkatz@sustainable.on.ca
Building Intelligence Quotient Consortium
Email: dkatz@building-iq.com
6/4/2010 1

2. AGENDA
• Introduce CABAand IIBC that developed the BiQ and the LCC
programs for GREEN and Intelligent Buildings
• Examples of applying LCC to Green Building options
• Other life cycle environmental attributes covered under Life
cycle analysis
• Example of LCC for intelligent building choices
• Funding for the Energy and Demand Response options
• Associations and agencies that have programs to help pay for
the investments especially if they provide life cycle benefits.
• Questions now and after on Panel Discussion
6/4/2010 2

3. Intelligent Buildings
Why do we build dumb
buildings?
6/4/2010 3

4. CABA Vision
“The knowledge-based forum for
industry leaders who advance the use of
technology and integrated systems in the
global home and building industry.”
6/4/2010 4

5. Technological Evolution of
BUILDING AUTOMATION
SYSTEMS IT Standardizing Information Presentation Models
Wireless Interfaces and Email Alarms re
ctu
ru
Growing Convergence of BAS and IT r as t
T Inf
I
ar d
Internet/Intranet
ta nd
BACnet/Lon Revolution
o nS
Direct Digital Controls i ces
S erv
Personal Computers ing
ild
Bu
Mini Computers e al l
eg rat
Electronic Controls
y In t
a
Electric Controls a tm
s th
Pneumatic Transmission s tem
Sy
of
tion Copyright Frost & Sullivan
olu
Ev
6/4/2010 5

6. What “Information” is in a
Building? Building automation systems
Energy management
Security
Digital signage
Facility mgmt. and visitor mgmt.
POS
Consumables
Parking
Tenant technology
Property mgmt. and back office
…more
6/4/2010
Copyright ® 2007 The Fourth Utility, LLC All Rights Reserved. Intelligent Buildings Confidential 6
Copyright ® 2006 The Fourth Utility, LLC

7. TECHNOLOGY ROADMAP FOR
INTELLIGENT BUILDINGS
FREE
www.caba.org/trm
6/4/2010 7

8. Why Buildings: Huge Opportunities
Wash 5% Cooking 5%
Buildings use 71% Computers
of electricity Electronics 5% 1%
Other 4%
Industr
y Refrigeration 9%
33% Buildings 21%
39%
Coolin Heating
Transportation g 10% 32%
28% Light
s Water
18% 12%
Heat
13%
Cooking 2% Other
Computers 3% 10%
Residential
Refrigeration 4% Lights 28%
Ventilation 7%
Heating Commercial
Office Equip 7%
Water Heat 7% Cooling 16% Source: 2004 Buildings Energy
13% Databook with SEDS distributed to all
end-uses
6/4/2010 8

9. Reducing Building Cost Lighting
Elevator
Services and Technologies
24/7 Monitor
HVAC
Fire
Video surveillance
Access
Energy
Copyright ® 2007 The Fourth
Utility, LLC All Rights Reserved.
6/4/2010 9

10. Better Tenant and
High Speed Internet / Wireless
Common Area
Ambient Music / TV
Experience
Audio – Video Conf
Services and Technologies
Voice Communications
Visitor management
Interactive media
Digital signage
Facilities Management Copyright ® 2007 The Fourth
Utility, LLC All Rights Reserved.
6/4/2010 10

11. Smarter Building / Property
High Speed Internet / Wireless Lighting
Ambient Music / TV Elevator
Audio – Video Conf 24/7 Monitor
IP Telephony HVAC
Visitor management Fire
Interactive media Video surveillance
Digital signage Access
Future Applications Energy
Copyright ® 2007 The Fourth
6/4/2010 Utility, LLC All Rights Reserved. 11

12. Technology Usage/Purchase Plans
Technology Currently Use Might Purchase
• Smart Telephony 30% 64%
• Telepresence 15% 64%
• Active RFID 9% 64%
• Smart Landscaping 9% 55%
• Intelligent Bathrooms 9% 52%
• Audio/Video Support 39% 48%
• Combined Heat and Power/ 39% 45%
Alternative Energy
• Automated Parking 12% 45%
• Green Buildings and LEED 48% 42%
Certification
• Digital Signage 21% 39%
6/4/2010 12

13. Your Information Source for
Home & Building Automation
1173 Cyrville Road, Suite 210
Ottawa, ON K1J 7S6
613.686.1814
888.798.CABA (2222) 613.744.7833
caba@caba.org
www.caba.org
www.caba.org/samples
6/4/2010 13

14. Intelligent and Green Building
Investments
Typical problems that LCC can resolve:
Having lower life cycle costs provides the
incentive to overcome the lower first cost or
budgetary restrictions.
Building valuations that look at the revenues and
the operating costs are improved by having the
lower operating costs of better facilities.
Making repairs to existing equipment versus
advancing the purchase of new better
performing equipment
6/4/2010 14

15. Application to design and construction process
LCC analysis has many applications in the capital
asset, buildings and infrastructure projects that use
the design and construction process. Choosing the
appropriate materials and costing out the operating
and maintenance cost of different alternatives
provides the design and construction professional
the ability to include the owner’s financial criteria as
part of the process.
6/4/2010 15

16. EVALUATING AND PRESENTING THE RESULTS
Evaluation approaches
Total present value
Net present value
Simple payback
True payback
Equivalent uniform annual cost
Rate of return
KWH savings/investment dollar
1. Savings/benefit to investment ratio
2. Graphic analysis
6/4/2010 16

17. How do Intelligent and GREEN
buildings compliment each other?
Using same Life Cycle Cost principles for Insulating Glass
Alternatives
Energy Modeling – LEED and Green Globes
H V A C Equipment and Building Automation Impacts
Energy Price Inflation and Demand Response Programs
6/4/2010 17

18. Green Building Perspective
• Energy – Efficiency - Metering - Onsite Emergency & Renewable generation
– GridWise capable - Demand Response ready – Net Zero
• Water – Efficiency – Metering – Treatment – Cleaning- Landscaping
• Environmental Management – Storage Tanks - Mold – Maintenance – Operations
– Emergency Response - Training
• Indoor Environment – Daylighting – CO2 and CO monitoring
– IAQ Controls – Filters
• Emissions, Effluent and Other Impacts on the Environment
Noise – NOX – SO2 – Chemicals – Transportation – Heat Island Roofs
6/4/2010 18

19. 6/4/2010 19

20. 6/4/2010 20

21. Electricity and Peak Demand
Charges –Time of Use Rates
????¢
8¢ ? 12¢ ?
4.7¢ / 5.5¢
6/4/2010 21

22. Conventional Cost Analysis
Average Payback Period (PP) and Return on
Investment (ROI) on single technology products.
(Source: Energy Cost Savings Council)

23. Softcoat LowE
Meets the Code and provides
lowest first cost.
6/4/2010 23

24. Triple Glazing & Heat Mirror
Alternatives cost more – but save more energy
6/4/2010 24

25. Window Energy Film Applications
Existing Glass can be improved to lower HVAC costs
6/4/2010 25

26. Window Energy Film Terminology
6/4/2010 26

27. IG Insulating Properties
14.30
16.00
14.00
12.00 9.09
8.00
10.00
8.00
3.45 4.00
6.00 2.22
4.00
2.00
-
)
)
)
1"
1"
1"
r
r
r
(A
(A
(A
-E
-E
le
w
w
b
ou
Lo
Lo
D
d
t
of
ar
S
H
Data obtained using L.B.L. (Lawrence Berkeley Laboratories) Window 5.2 analysis program (nfrc/ashae)
6/4/2010 27

28. IG Solar Heat Gain
Coefficient
0.70
0.67
0.70
0.60
0.50 0.38
0.32 0.30
0.40
0.30
0.20
0.10
-
-E
-E
e
-E
le
bl
ow
w
ip
w
ou
Lo
Lo
Tr
tL
D
e
d
le
f
it
ar
So
ip
nl
H
Tr
Su
6/4/2010 28

29. Reduce Energy Bills
(Operating Costs)
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30. Reduce HVAC Requirements
(Capital Costs)
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31. Reduced Lighting Requirements
(Capital & Operating Costs)
6/4/2010 31

32. Risk and sensitivity to above analysis.
Fuel Escalation could less than 4% causing
Breakeven to be longer
R value energy saving assumptions may not be
proportional as assumed.
Solar Gain may have greater energy saving and
peak shaving impacts.
Difference in initial HVAC capital costs should
also be considered.
Other positive attributes like quiet and no mold
may be more valued than energy savings.
6/4/2010 32

33. Is this Tinted Glass Building Green and Intelligent ?
What are the tradeoffs in HVAC, Daylighting & Productivity
6/4/2010 33

34. Comfort
“The best sustainable designs are not just environmentally
responsible. They also produce buildings where employees can
thrive and productivity can soar”
Christine Ervin
President and CEO
U.S. Green Building Council
“Using green building strategies can result in increases in
occupant performance measures by 6 to 26 percent.”
William D. Browning
Founder of Green Development Services
and Senior Associate of
Rocky Mountain Institute
6/4/2010 34

35. Sustainability Matrix
The David Lucile Packard Foundation
Los Altos Project
Net Present LEED™ LEED™ LEED™ LEED™ Living
Market
Values Certified Silver Gold Platinum Building
30 Years $22.7 $19.6 $19.7 $18.5 $18.3 $18.7
60 Years $62.9 $45.3 $36.7 $27.8 $23.7 $19.6
100 Years $348.9 $218.4 $166.9 $95.8 $62.2 $20.8
Total Savings
over Market $ - $3.1 $3.0 $4.2 $4.4 $4.0
after 30 years
http://www.packard.org/pdf/2002Matrix.pdf
6/4/2010 35

36. Financial Benefits of Green Buildings
6/4/2010 36

37. LCC calculation of Greg Kats –former DOE and IMPVP Executive
6/4/2010 37

38. Green and Intelligent Building Convergence Review
Energy management for HVAC, Lighting & Demand
Response – CBIP – Energy Star
Green Buildings – Environment - LEED & Green Globe
Access and Security for safety of occupants and visitors
Cabling and Wireless to increase revenue and lower costs
Communications to increase value and productivity
Digital Signage for instant information and advertising
Interconnectivity to other buildings and the community
Smart Grid and Demand Response Ready
6/4/2010 38

39. Who is working on bringing these issues all together to
evaluate alternatives and make sound economic choices?
CABA INTELLIGENT & INTEGRATED BUILDINGS COUNCIL
Developed the BIQ Rating System for IB with
Appraisal Institute and EPA Energy Star support
www.caba.org/biq
Life-Cycle Cost Analysis Tool with Reed
Construction Data/RSMeans
www.caba.org/lifecycle
Developed a New Intelligent Building Roadmap
www.caba.org/ibrm
6/4/2010 39

40. Analyzing the Life Cycle Cost of
Integrated Building Systems
Produced by: Thomas J. Lohner, P.E.
Vice President, TENG Solutions
6/4/2010 40

41. Systems Integration -
Comparative Life Cycle Cost
You Can Not Afford Not to do it Right
6/4/2010 41

42. Facility Integration
Life Cycle Costs
First Cost
Changes, Additions & Upgrades
Operating & Maintenance
Utility Costs
6/4/2010 42

43. Typical Building Approach to Automation
No Integration !
5 User Interface
Workstations!
Emergency Generator
Main Service Switchgear
Computer
Room A/C
UPS
Door Access Control & HVAC Control System
Lighting Control System
Intrusion Detection
Fire Management System

44. Non-Integrated Building
Engineering Left up to Contractors
Sole Sourcing Required to Provide
Integration - $$$$
Stand Alone Systems - Single Purpose
Nobody Responsible for Technology
Integration
6/4/2010 44

45. Partial Integration Concept
Proprietary Control Sub-systems
Modbus
Database
Client FMS Workstation
Server
Main Service Switchgear
Web Server
Facility IP Network
Security
Console Emergency Generator
SNMP over IP
Computer Web Server
Room A/C Web Server Web Server
Web Server
UPS
Door Access Control & Lighting Control System HVAC Control System
Fire Management System
Intrusion Detection

46. Partial Integration Issues
Software Integration on IP networks
Use Web Enabled - FMS Application
Program
Methodology Employed for Existing
Buildings
Hardware Intensive - Many I/O Servers
6/4/2010 46

47. BENEFITS
Partial Integration
Single User Interface for all Systems
Web based GUI - Defacto Standard
Permits Migration to Open Control Networks -
Competitive Bids !
Permits Development of Campus Wide
Relational Database
Database Permits - Maintenance Management , Energy
Management , Asset Management, etc.
6/4/2010 47

48. Full Integration Concept
Open Standards Based Control Sub-systems
Modbus
Database
Client FMS Workstation
Server
Main Service Switchgear
Web
Server
Facility IP Network
Security
Console Emergency Generator
SNMP over IP
Web
Server LONTALK - EIA 709.1 &
Computer Web
Room A/C BACNET – ANSI/ASHRAE
Server
135A
UPS
Door Access Control, Intrusion Detection, Lighting & HVAC Control System
Fire Management System

49. Full Integration Issues
Open Standards Applied Where Possible
I/O Servers Minimized
Number of Devices Reduced - Shared
Information
6/4/2010 49

50. BENEFITS
Full Integration
Same as Partial Integration Approach
PLUS
Competitive Bids in each Building
Integrated Building Sub-systems
Lighting, HVAC, Power Management and
Security
Lowest Life Cycle Cost Approach
6/4/2010 50

51. Life Cycle Cost
Analysis Assumptions
150,000 SF Building
Major M & E Equipment Cost - $6.00/SF ($18.00/SF TOTAL)
Proprietary Systems Life Cycle - 7 years (FAR)
Replacement Cost = 125% of the Initial System Cost
50% of the Proprietary Systems are Replaced (Next Generation)
20% of the Open Systems are Replaced (Age & Obsolescence)
Average Cost per Control Device - $400
Open and Proprietary Control Devices Base Bid Costs are the Same
Training Costs - $3000/ GUI; $1500/ Protocol; 50% of 1st year cost for
years 2 and up
6/4/2010 51

52. Life Cycle Cost Analysis Assumptions
Base Year
Base Year Annual
Dynamic Initial Service Changes &
Control Sub- Cost Contract Modificatons
systems ($/SF) ($) (% of 1st Cost)
HVAC Controls $1.5/SF 15,000 2%
Lighting Controls $1.0/SF 10,000 3%
Power Monitoring $0.5/SF 5,000 1%
Intrusion Detection $0.3/SF 3,000 2%
Total $3.3/SF $ 33,000 $39,000

53. Comparative First Costs
Non-
Integrated Partial Full
System Component Building Integration Integration
Graphical User Interface -
Hardware & Software 5 @ $15K 1 @ $20k 1 @ $20k
Equipment Networking Uprades 0 4 @ $2k 4 @ $2k
Web Servers 0 5 @ $10k 3 @ $10k
Control Device Reduction (5%) 0 0 -24750
TOTAL $75,000 $78,000 $33,000
Full Integration Savings $42,000 $45,000
No Account For Division 17000 Savings - 20 to 30%!!!

54. Non-Integrated HVAC, Lighting & Intrusion Detection
Echelon World Headquarters
Dimmable
Lighting Control
VAV Boxes
No Occupancy Control Blinds & 24v Wiring

55. Integrated HVAC, Lighting, Intrusion Detection & Blind Control
Echelon World Headquarters
User Scene Control Switch
Lighting, HVAC & Occupancy
Sensor Control Trunk Sensor and 120v Wiring

56. Changes, Additions and Upgrades Issues
Cost Premium Paid for Additions &
Changes to Proprietary Controls
Limit Scope of Future Improvements and
Modifications
Cost Premium for Non Competitive
Service Contracts
6/4/2010 56

57. Changes, Additions and Upgrades
(Annual Costs- 2nd Year & On )
Non
Competitive Non-
Cost Integrated Partial Full
O & M Cost Issues Premium Building Integration Integration
Service Contracts 25% $ 41,250 $ 41,250 $ 33,000
Future Additons &
Remodeling 25% $ 49,500 $ 49,500 $ 39,600
Future Software
Upgrades 5 @ $1k 1 @ $2k 1 @ $2k
Year 7 Replacement
Cost Reserve ( 9% APR) $ 33,629 $ 33,629 $ 13,452
Total $ 129,379 $ 126,379 $ 88,052
Full Integration Savings $ 41,327 $ 38,327

58. Operating and Maintenance
(Annual Costs- 2nd Year & On )
Non-
Integrated Partial Full
System Component Building Integration Integration
Training $ 11,250 $ 5,250 $ 3,750
Improved O & M Staff Efficiency 0 SOFT SOFT
IT Support 5 @ $2k 1 @ $3k 1 @ $3k
Management Reporting 0 (3 @ $1k) (3 @ $1k)
Total 21,250 $ 5,250 $ 3,750
Full Integration Savings $17,500 $ 1,500
Computerized Maintenace Management $ 25,000 First Cost
(Extend Major M & E Equipment Life; 25yrs vs 20yrs)
Future Worth ($ @ Yr 20) $ 180,000
Present Worth (P/F @ 9%) $ 32,112

59. Typical Energy Use Profile
Other (Elevators, etc.)
5% Ave Annual Energy
Power Use
25% Ave Annual Energy $0.07 / SF / YR
Use
$10,000 / YR
$0.33 / SF / YR
Lighting
$50,000 / YR TOTAL
HVAC
$1.33 / SF / YR
Power
$200,000 / YR
Other
HVAC Lighting
30% Ave Annual Energy 40% Ave Annual Energy
Use Use
$0.4 / SF / YR $0.53 / SF / YR
$60,000 / YR $80000 / YR

60. Energy Costs
(Potential Annual Cost Savings)
Non-
Savings Energy Integrated Partial Full
System Component Factor Cost ($) Building Integration Integration
Integrated Lighting & HVAC Control 5% $60,000 0 0 $3,000
Improved Load Factor ( .5 to .55) 5% $200,000 0 $10,000 $10,000
Better Maintained Equipment 1% $60,000 0 $600 $600
Coordinated Supply/Demand EMS Strategies 5% $200,000 0 $10,000 $10,000
Integrated Building Control System
Savings $0 $20,600 $23,600

61. System Integration
Life Cycle Cost Summary
Non-
Integrated Partial Full
Life Cycle Cost Component Building Integration Integration
Comparitive First Cost $75,000 $78,000 $33,000
Changes , Upgrades & Additions $129,379 $126,379 $88,052
Operating & Maintenance $21,250 $5,250 $3,750
Ut ility Cost $200,000 $179,400 $179,400
Net Present Value $2,325,232 $2,074,091 $1,773,493
Discount Rate 9%
Life Cycle Period (yrs) 10
Savings $551,739 $300,598

62. Conclusion:
Full Integration will Result in the Lowest
Net Present Value
The Value of the Integrated Approach will
Increase w/ IT Advances
Information will be your Competitive
Advantage
6/4/2010 62

63. What are the opportunities to get funding for upgrades and
retrofit alternatives that provide lower life cycle costs?
Federal Government Programs
Ontario Energy Board funding for
Enbridge and Union Gas Demand Side Management
Ontario Power Authority Conservation Programs
Local Distribution Companies – Powerwise
Energy Service Companies (ESCO)
Financial Institutions for Leasing or Borrowing
Private energy companies for onsite generation
Demand Response and Smart Grid options
6/4/2010 63

64. Federal Programs Available
Natural Resources Canada's Office of Energy Efficiency now offers
the ecoENERGY Retrofit Incentive for Buildings, the
commercial/institutional component of the ecoENERGY Retrofit
financial incentives for existing homes, buildings and industrial
processes. If you have not yet started a new energy efficiency
project, you could receive the lesser of $10 per gigajoule of
estimated energy savings or 25 percent of eligible project costs.
The program ends in March 31st 2011 or when funds run out. When
applying, you will need to provide a pre-project energy audit of your
buildings. As well, you cannot incur any costs related to the project
until you receive a signed Contribution Agreement.
Website: http://oee.nrcan.gc.ca/commercial/financial-
assistance/existing/retrofits/index.cfm?attr=0
6/4/2010 64

65. Provincial Programs Available
Ontario Power Authority – New Construction
Program will build on CBIP concept of energy
modeling and payment or Low rate interest to
facilitate better energy performance.
Demand Response 3 – contractual agreement for
100 or 200 hours – incentives paid to schedule by
term and amounts.
ERIP – Local distribution company programs
6/4/2010 65

66. Other Programs Available
Renewable and Clean Standard Offers
Toronto Better Building Partnership
Toronto Atmospheric Fund – Financing
BOMA Toronto – CDM
OPA for Continuous Commissioning and
Next Gen Building Automation
Tax credits and Class 43 Accelerated
Depreciation on qualified equipment
6/4/2010 66

67. Financing Options
Self – Finance – Your cost of money
Toronto Atmospheric Fund – Financing
Lease or Rent – morEnergy Options
Low interest loans – Banks and Credit
Unions
Energy Service Companies using
Performance contracts
Carbon Credits and other Trading Schemes
6/4/2010 67

68. Demand Response Marketplace
and DR programs in Ontario
Demand-Response-Shop.com
Collaboration Project with Sheridan College-Building Intelligence Quotient-
RFQ Strategies partially funded by Ontario Centres of Excellence
David Katz
BiQ Program Manager
Principal - Sustainable Environmental Solutions
Connectivity Week - May 24, 2010
Information on Ontario Power Authority Programs are generalizations and
subject to change
6/4/2010 68

69. Demand Response and BAS Improvements
Ontario Power Authority Integrated Power System Plan
Conservation - LEED – Green Globe –BOMA BESt
Conservation Measures - Technology
Distributed Generation Opportunities
Standard Offers – Renewable – Clean Energy
Demand Response Programs
DR Technologies – Building Sector
Demand Response Shop website
Smart Grid –Building2Grid optimization
Questions
6/4/2010 69

70. Conservation Objectives
Develop a Culture of Conservation
Provide the CDM programs to reduce MW:
New programs in all sectors – Public – Private
MASH, Residential, Commercial, Industrial
New technologies – Savings must be measurable
Summer Peak – Demand Response Programs
Electrical energy savings and fuel switching
HVAC, Lighting, Power Quality, Power Factor
Incentives pay up to $800/kW or $0.10/kWh
6/4/2010 70

71. Old and New Technologies
Previous technologies now economic
New technologies save and measure it
Building Automation more Intelligent
Occupancy, Demand HVAC, Daylighting
LEED and Green Globe Credits
Life cycle costs and low cost of funds
Peak and Energy reduction targets now
mandated to each of 80+ Ontario LDC’s
6/4/2010 71

72. Distributed Generation
Energy costs only going up even with CDM programs.
NERC/FERC Reliability rules in harmony with Canadian
Feed-In-Tarff and Standard Offers
FIT 20 year fixed Range - PV/$0.802/kWh Rooftop <10kW
going down to $0.433/kWh for < 10 MW on ground
Wind, Hydro &Biomass – Range from $0.10-$020/kWh with
some peak premiums and some escalation to CPI
CESOP–On Hold $0.081/kWh Peak and $0.0432 Off peak
with some fuel price adjustments
Not on HEAT portion Only for certain hours and 8 months
Demand Response Programs took precedent in IPSP
6/4/2010 72

73. Demand Response Technologies
Lighting – Dimming – Occupancy -Daylighting
Raise Cooling Temperature – Casual Day Clothes
Chiller Optimization – Hartman LOOP
Chillers - Gas Driven – Absorption
Thermal Storage – ICE - Water
VSD – Pumps – Fans - Reprogram
On site Generation – Economics?
Windows - Shades -Tinting
6/4/2010 73

74. Abitibi Consolidated Company of Canada
Air Products Canada Limited
Algoma Steel Inc.
Atlantic Packaging Products Ltd.
Bowater Canadian Forest Products, Inc.
CPower Inc.
CVRD Inco Limited
Direct Energy Marketing Limited
Energy Advantage Inc.
Energy Curtailment Specialists Inc.
EnerNOC Inc.
Enershift Corporation
Essroc Canada Inc.
Lafarge Canada Inc.
NRGen Inc.
Praxair Canada Inc.
Sobeys Capital Incorporated
St. Marys Cement Inc. (Canada)
St. Marys Paper Corp.
Tembec Industries Inc.
Wescast Industries Inc.
6/4/2010 74

75. Demand Response #1
Key Program Features:
The DRP is a voluntary program that allows participants to receive
compensation for curtailing the electricity demand of their Projects.
Projects can be based on load interruption, load shifting or behind the
meter generation (excluding diesel, coal, bi-fuel, and bio-diesel).
No maximum on the number of hours of operation. Load curtailment
is voluntary.
Minimum of 0.5 MW load reduction, achievable for at least one hour
in a relevant season.
No financial penalties for under or over performance.
Participants offer their own ‘strike price’ on a monthly basis, at which
they are willing to curtail load. The Participant’s strike price must be
higher than the minimum defined Floor Strike Price for the month.
Project applications must include a Measurement and Verification
(M&V) Plan, acceptable to the OPA and all curtailments must be
verified by an M&V Consultant.
Participants receive monthly payments for curtailment.
6/4/2010 75

76. Demand Response #2
Contractual response load shifting.
Availability payment $/MWh for term of contract. Higher
availability for higher reliability.
Minimum contracted hours with penalties for non-conformance.
Minimum differential price. Differential set by time period and by
season. Published one month in advance of season.
For each hour of active load reduction, the differential is the
difference between the average HOEP for all hours in that time slot
for the week, and the average of all offpeak hours in the week.
Participant is paid the difference between the OPA Minimum
Differential and the Actual Differential for all hours of the week
where load was curtailed, if the difference between the OPA
Minimum Differential and the Actual Differential is positive.
Participant may also be eligible for peak premium incentive and
location specific incentives
6/4/2010 76

77. Demand Response #3
Contractual Load Shedding with DR aggregator
Schedule Term (1, 3, or 5 yrs)
Contracted Dispatch Period
Election of Option A (100 hrs) or Option B (200 hrs)
Not Fully Available for Curtailment
Election:
(1) using the four hour period prior to Curtailment or
(2) the four hour period prior to receiving an Activation
Notice
Different rates for Standard, Premium, Discount areas
Some areas of province are X no participation allowed
due to system conditions and contracts with others.
6/4/2010 77

78. 6/4/2010 78

79. List of Participating Aggregators
Some withdrew
6/4/2010 79

80. 6/4/2010 80

81. (BUILDING INTELLIGENCE QUOTIENT CONSORTIUM)
IN COLLABORATION WITH
Sheridan College Institute of Technology and Advanced Learning
LAUNCH
DEMAND-RESPONSE-SHOP-CONSORTIUM
(DRSC)
AND
DEMAND-RESPONSE-SHOP.COM AND .CA

82. - an online tool
Rating and
Certification
(demonstrates the
added value)
+
Upgrade Design
and
Implementation
Guidance
(demystifies
implementation)

83. SCREEN
Of BiQ
For building
info after log-
in
6/4/2010 83

84. Building Intelligence Quotient Assessment
Chart of BiQ rating for each section generated as part of the report
Report for Middleton Hall
Middleton Hall achieved an overall rating of 78% at the New system/Upgrade Stage
Integrated design
Education
Selection of sub-systems
Value factors for automation systems
Business considerations
Subsystem stand-alone custom features
Subsystem stand-alone performance
Interaction among subsystems
BAS Equipment
0 20 40 60 80 100

85. Secure Procurement System for RFI, RFQ and RFP with on line
submissions and processing reverse auction and other capabilities

86. Secure Procurement System for RFI, RFQ and RFP with on line
submissions and processing reverse auction and other capabilities

87. The Sheridan Institute of Technology and
Advanced Learning is one of Canada's premier
polytechnic institutes and is dedicated to
exceptional applied learning and graduate
success. They are a leader in providing skills-
based educational programming that integrates
theory with application, preparing students for
careers in visual and performing arts, business,
community services and technical fields.
Sheridan serves close to 15,000 full-time
students annually at its campuses in Oakville
and Brampton, Ontario
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88. While a few large companies with heavy energy loads
and significant peak demand charges already know
about the various demand response (DR) programs,
many smaller companies do not. The current energy
demand issues are the responsibility of the facility or
production personnel while the supply side issues are
currently under the procurement and purchasing
responsibilities. The need for an integrated approach to
critically evaluate the opportunities for load
curtailment, the resulting costs or inconvenience and
the benefits from the various offers from the DR
aggregators will be addressed by the Demand-
Response-Shop.com and .ca websites and the on line
Building Intelligence Quotient and DR procurement
service it will provide.
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89. The key objective is to educate users on the various demand
response programs. It will gather the vast experience in DR
from global jurisdictions and provide the framework for
comprehensive rational decision analysis for participating in
the DR program. The site will provide a forum and blog to
discuss and develop greater recognition of the many different
loads that can be part of the demand response in a building
and other facilities. The DR website and the Demand-
Response-Shop-Consortium DR services will provide the
user with cost effective time and effort to acquire and
evaluate the DR alternatives that provide optimum value
from the DR payments. The benefit of using the CABA BiQ
program prior to pursuing DR payments allows the customer
to evaluate all the energy management opportunities
especially the building automation controls that will make
the DR program respond as required when called upon with
short notice or automated dispatch.
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90. The targeted user groups are the DR aggregators
approved by the regulatory authorities and all the
potential customers who want independent assessments of
their offerings. While each aggregator may have their own
DR assessment methodology and target only certain loads
this website will meet the needs of the end users. For a
small fee early adopters will be provided with a
rating and the development of their unique site specific on
line for DR investment and incentives.
The competitive process and the financial evaluation of
the alternatives will increase DR life cycle benefits. The
website will include the publication of these pilot DR
procurements on the site and in energy related journals to
increase DR market penetration. Links will be provided to
associations such as CABA, BOMA and IFMA to have
their members benefit from this program.
Work is underway with partial funding from the Ontario
Centre for Excellence – Energy Division
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91. Summary
GRID has massive investment needs
Conservation finally getting recognition
Renewable energy needs incentives but offer environmental
and health benefits
Distributed Clean generation can play a large role and can be
profitable
Demand Response can be part of solution
Peak Shaping – Shedding – Shaving
Education on DR and the Building 2 Smart Grid is essential –
Demand-Response-Shop.com addressing the need and
providing the facilitation for maximizing DR incentives and
linking to energy efficiency
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92. Contact Info
David Katz, MBA, BA
Sustainable Resources Management Inc.
6 Morning Gloryway
Toronto, Ontario
Canada M2H 3M2
Tel: 416-493-9232
Fax: 416-493-5366
Email: dkatz@sustainable.on.ca
Building Intelligence Quotient Consortium
Email: dkatz@building-iq.com
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