Arlington Community Energy Plan Competitive Community of the Future - - PowerPoint PPT Presentation

Arlington Community Energy Plan Competitive Community of the Future

Property Development and Management Input Meeting Arlington, Virginia, July 1st, 2010

Community Energy Plan

Task Force Kick-off Workshop - Jan 2010 Energy & Greenhouse Gas Baseline complete CEP Technical Working Group formed Meetings - County Departments, Dominion,

Pentagon, Reagan National Airport, Washington Gas, Chamber of Commerce, ….

Task Force endorses transformative CEP goals Community Energy Town Hall meeting Apr 2010 Initial recommendations to Task Force – Sep 2010 Completion target – February 2011

Arlington CEP Process to date

Community Energy Plan

A World of Cities 3 Billion Urban Citizens

*UN Sources

Community Energy Plan

Majority of us live in cities

*UN Sources

Urban Population passed 50% in 2008

Percent

Community Energy Plan

Insatiable Appetite for Energy About 70% of it in Cities

Forecast to double by 2030

Source: IIASA / BP / EIA / Eurostat

Community Energy Plan

Climate Change Range of Potential Impacts

*Stern Review

Community Energy Plan

Global Energy Picture Growing Impacts on USA

Unpredictable energy prices

Sustained volatility and upward trends likely

Globalizing prices

Dependence on imports

USA - Oil (70%) and natural gas (16%) EU – more than 50% of all energy

Climate change legislation

Aggressive reductions proposed Uncertainty over regulatory frameworks Uncertainty over compliance costs and requirements

Underinvested North American energy infrastructure

Electricity grid Rail for coal transport Natural gas terminals

China and India major new energy customers

Major impacts on primary fuel prices

Trigger events –hurricanes, tornados, oil spills ….

Fundamentally different from past

Community Energy Plan

Perfect Energy Storm When fears collide…

Growing awareness – Growing Opportunity Volatile Prices Availability Climate Change

Community Energy Plan

Energy Productivity Differences How well do we spend our $1.5 Trillion?

*IEA and World Bank – 2007 sources

Key to Competitiveness

Region Population GDP Energy Energy /Capita Energy /GDP USA 4.6% 18.9% 19.5% 100 100 EU 7.5% 25.1% 14.8% 47 57 Japan 1.9% 8.8% 4.3% 52 47 China 20.0% 4.5% 16.3% 19 355 India 17.0% 1.5% 4.9% 7 317 World 100% 100% 100% 23 97

Community Energy Plan

Energy Supply Chain From fuel to service

High greenhouse gas High-cost low returns High risk

Uses 70% of all energy 25%

Pay for 100 get less than 10

5%

Community Energy Plan

Energy Use by Sector How does the USA Compare?

Most energy lost in range of inefficiencies Only 5% to 15% used productively

Sector Share Index USA/EU

Industry 32% 1.2 : 1 Buildings* 40% 2.5 : 1 Transportation* 29% 1.4 : 1

High potential for productivity gains!

*Indicative ratio of US average to EU Average

Community Energy Plan

Arlington Community Energy and Sustainability Plan

Three Groups of Benefits Competitiveness Security Environment

Supply security Supply quality Flexibility Energy cost Employment Investment Greenhouse Gas Reduction

Community Energy Plan

Arlington’s Energy Use Roughly $1Bn per year

236 MMBtue / 69 MWhe for each Resident

2007 Fuel Use 48’252’000 MMBtue / 14’141’000 MWhe by sector by type

Community Energy Plan

Arlington’s Carbon Footprint

13.4 metric tons for each Resident

2007 Greenhouse Gas Emissions 2,730,000 metric tons / 6,020,000,000 lbs CO2e by sector by type

Community Energy Plan

Sector Energy Use Greenhouse Gases

Transportation

21% 28%

Residential

26% 26%

Non-Residential

53% 46% Arlington - Energy Use and Greenhouse Gas Emissions

Community Energy Plan

Greenhouse Gas Indicators

GHG good surrogate for overall energy productivity National GHG per capita per year (metric tons CO2)

Canada

22.6

USA

21.7

Denmark

14.1

Germany

11.7

European Union

10.5

Municipal GHG per capita per year (metric tons CO2)

Washington DC

19.7 (uncertain scope)

Arlington County

13.4 with “breakthrough” goal

Loudoun County

14.2 with 6.0 goal

Canada - Guelph

12.2 with 5.0 goal

Germany – Mannheim

6.0 with 4.5 goal

Denmark - Copenhagen 3.0 with zero goal

*Rough indicators - multiple sources

Arlington Embraces Breakthrough Targets

Community Energy Plan

Copenhagen - Integrated Energy Solution “Environmental Capital of Europe”

Triggered by 1970’s energy crisis Neighborhood approach 2.6 tons / capita greenhouse gas Efficiency

World leading building efficiency Energy Performance Labeling

District heating / cooling

Systematic expansion

Fuel flexibility

Multi-fuel cogeneration Coal, oil, gas, biomass, waste-to-energy Wind and solar generation

Transport

Urban design for bike/walking Efficient trams/trains

High Value Employment

Energy Products and Services

2009 – Voted “Second Most Livable City”

Community Energy Plan

Energy efficiency – If you don’t need it don’t use it

Efficient buildings, vehicles Urban design for transport efficiency Local employment for commuting efficiency

Heat Recovery – It it’s already there – use it

Distributed combined heat and power Use existing “waste” heat Structure commercial sites to maximize “waste” heat use

Renewable energy – If it makes sense, go carbon free

Renewable electricity – Photovoltaic, Wind, Run-of-river Hydro Renewable heat - Solar thermal, Biomass, geothermal Renewable heat and power – waste-to-energy, biomass

Energy distribution – Invest where it makes sense

Flexible distribution – electricity, gas, district heating, cooling… Accepts multiple fuels and energy conversion technologies Optimize local / regional investment choices

CEP Framework

Integrated Solution – Tailored for County!

Community Energy Plan

Evolution of Benefits Four Distinct Types of Activity

Community Activity

• Many initiatives
• No changes in policy

Community Activity

• Many initiatives
• No changes in policy

Scale Projects

• Neighborhood size
• Local changes in “policy”

Scale Projects

• Neighborhood size
• Local changes in “policy”

Integrated policy County wide norms

• New “business-as-usual”

Integrated policy County wide norms

• New “business-as-usual”

Increasing CEP Benefits

Stand alone projects

• Fewer larger initiatives
• Minor changes in policy

Stand alone projects

• Fewer larger initiatives
• Minor changes in policy

Transformative Incremental

Arlington Commits to World Class Performance

Community Energy Plan

Sustainable Energy Multiple Level 1 & 2 initiatives

Langston-Brown Community Center Walter Reed Community Center Westover Library

Community Energy Plan

Sustainable Transportation Multiple Level 1 & 2 Initiatives

Community Energy Plan

Action Categories Difficulty Competitive

• ness

GHG Reduction Security

• 1. Voluntary Community Activity
• 2. Smaller stand-alone projects
• 3. Large Scale-Projects
• 4. Integrated Energy Policy

Competitiveness Goals

Inbound investment, employment, energy costs

Environmental Goals

Greenhouse gas reduction – good surrogate for overall

energy productivity

Supply Security Goals

Flexibility, redundancy, upgradeability

CEP Goals

“We don’t do Easy” ?

Community Energy Plan

Energy Planning Neighbourhoods (Work in Progress)

2007 to 2050

Energy needs Greenhouse gases

Energy uses

Heating, Cooling, Other

Buildings Profile

Residential / Non-residential New, existing, renovated,

demolished

Scenarios

Business as Usual Enhanced efficiency District Energy Clean and renewable supplies

Existing buildings dominant

factor in future energy use

Renovation and restructuring will be key

Community Energy Plan

Leadership and community engagement Transparency and outreach Necessary planning policy changes in place World-class energy efficiency Integrated utility approach Early implementation of “Scale Projects” Magnet for business and academic

excellence

Continuous improvement – raising the bar!

Successful CEP Implementation Common Features

Consistent Execution Over Decades

Community Energy Plan

Scale Projects Major Key to Success

• Powerful Goals
• 30 to 60% less energy
• 40 to 80% less GHG
• Affordable energy
• Attract investments
• Improved reliability
• Reduce city costs
• Community awareness
• Education
• Policy changes
• Will they be

implemented?

• Powerful Goals
• 30 to 60% less energy
• 40 to 80% less GHG
• Affordable energy
• Attract investments
• Improved reliability
• Reduce city costs
• Community awareness
• Education
• Policy changes
• Will they be

implemented?

CEP Efficient Buildings Scale Implementation

• Voluntary programmes
• Energy Star…
• LEED…
• Useful resources
• Construction guides
• Efficient equipment
• Rebate & incentives
• Education
• Limited penetration
• < 5% new construction
• Voluntary programmes
• Energy Star…
• LEED…
• Useful resources
• Construction guides
• Efficient equipment
• Rebate & incentives
• Education
• Limited penetration
• < 5% new construction
• Success needs scale
• Multiple benefits
• City, developer, utility…
• Potential game-changers
• High density urban villages
• Greenfield Smart Growth
• Sports Centres
• Transportation facilities
• Multiple in county

“Connect the Dots”

• Success needs scale
• Multiple benefits
• City, developer, utility…
• Potential game-changers
• High density urban villages
• Greenfield Smart Growth
• Sports Centres
• Transportation facilities
• Multiple in county

“Connect the Dots”

Scale A Scale B Scale C Scale D Scale E

County

Jump Start Implementation

Community Energy Plan

High probability of being implemented Manageable number of participants Large enough to implement integrated energy

solutions within its boundaries

Possibility to apply different energy supply

and efficiency than surrounding norms

Potentially economically, environmentally and

• perationally attractive

Future possibility to link to other community

projects

CEP Candidate “Scale Projects” Selection Criteria

Community Energy Plan

High Density Urban Villages Core renewal neighborhoods Commercial or Research Parks Major retail clusters Greenfield Smart Growth Sports and Recreation Centers Transit hubs/neighbourhoods Academic Campuses Military Bases (Industrial Parks)

Typical Scale Projects

Community Energy Plan

Task Force Recommendations High Priority Candidates

East Falls Church Rosslyn Columbia Pike Crystal City

Decision-Grade IEMPs Necessary*

*IEMP=Integrated Energy Master Plan

Community Energy Plan

Scale Project Additional Candidates

Neighborhoods

Arlington Mill Ballston Courthouse Long Bridge Park North Ten Block Pentagon City Potomac Yard Shirlington Virginia Hospital Center Wastewater Plant Aquatic Center

Hosted

DoD Fort Myer DoD Pentagon Reagan National Airport

Arlington Community Energy Plan

District Energy in Existing Neighborhoods

Arlington, Virginia July 1st 2010

Community Energy Plan

Combined Heat & Power Wide Range of Share

High Potential for Efficiency Gains

USA USA

Community Energy Plan

What is District Energy?

Distribution to many homes

and buildings

Closed network of highly

insulated pipes

Optimized energy supply

from multiples sources

Combined Heat & Power Boilers/Furnaces Absorption Chillers Electric Chillers Solar and Biomass Waste heat recovery

Typically operated by

dedicated DE-Utility Widely deployed proven technology

Centralized supply and delivery

Heating Cooling Domestic hot water

Community Energy Plan

Property Owner/Developer

Reduced building investment Frees investment for enhanced efficiency More marketable space Reduced maintenance costs Investment opportunity in DE-utility

Property User

Equal or lower overall energy costs Less volatile energy costs Equal or greater supply quality

Community

Reduced environmental impact Increased supply security Fuel flexibility Peak load reduction may reduce tariff increases Can migrate DE benefits to lower density areas Investment opportunity in DE-utility

Benefits of District Energy

Community Energy Plan

DE-Utility

Profitable retail sales of heating and cooling Grid sales of clean and renewable electricity Fuel flexibility - extension to biofuels , fuel oil and waste heat

recovery

Greenhouse gas credits Saleable expertise for similar projects elsewhere

Gas Utility Opportunity from DE

Familiar business model Business diversification Higher sales volumes – heating, cooling, grid sales Higher than average margins Higher customer intimacy

Electric Utility Opportunity from DE

Business diversification Low-carbon electricity to meet RPS requirements Higher than utility margins Higher customer intimacy

Benefits of District Energy

Community Energy Plan

Phase 0: Current Starting Point

Higher Density Scale Projects

Single Building Supply to District Energy

Rooftop H/C-Unit Boiler/Furnace Chiller

Establish Integration “Rules”

Community Energy Plan

Phase 1: Make Buildings DE-ready & start interconnecting

Higher Density Scale Projects

Single Building Supply to District Energy

Rooftop H/C-Unit Boiler/Furnace Chiller Heat exchanger Cool exchanger

X X

Efficiency retrofits and early integration

Community Energy Plan

Phase 2: Add Co-generation & Absorption chillers to create Supply Islands

Higher Density Scale Projects

Single Building Supply to District Energy

Rooftop H/C-Unit Boiler/Furnace Chiller Heat exchanger Cool exchanger CHP generator Absorption Chiller

X X

Preparing for Wider Integration

Community Energy Plan

Phase 3: Interconnect Islands maybe adding Central Generation

Higher Density Scale Projects

Single Building Supply to District Energy

Completing Neighborhood System

Community Energy Plan

Phase 4: Interconnect Scale Projects

Integrating Neighborhoods

Completing Community System

Scale Project 1 Scale Project 2 Scale Project 3

Arlington Community Energy Plan

Energy Performance Verification

Arlington, Virginia July 1st 2010

Community Energy Plan

Lifetime Performance Verificiation Energy Performance Labeling

Certifies performance Available when sold or rented Low cost or no-cost Energy and greenhouse gas Current state of building Not historic or similar structures Displayed in public buildings Independent certification Access to discount mortgage Voluntary or mandatory

approaches possible

Candidate enabling project

Create Market Driven Improvement

Community Energy Plan

Benefits of Winning! Competitive-Sustainable-Flexible

New Relationships – New Rules

Commercial Commercial

• Reduced costs
• Rental values
• Low vacancy
• Productivity
• Reduced costs
• Rental values
• Low vacancy
• Productivity

Banks Banks

• Collateral Value
• Credit worthiness
• Collateral Value
• Credit worthiness

Resident Resident

• Lower utility costs
• Resale value
• Employment
• Quality of life
• Lower utility costs
• Resale value
• Employment
• Quality of life

Developer Developer

• Premium prices
• Low carrying time
• Reduced investment
• Premium prices
• Low carrying time
• Reduced investment
• Environmental impact
• Attractive development
• Competitive energy services
• New business opportunities
• Environmental impact
• Attractive development
• Competitive energy services
• New business opportunities

Utility Utility

• Higher returns
• Emissions reduction
• Customer intimacy
• Diversification
• Higher returns
• Emissions reduction
• Customer intimacy
• Diversification
• Tailored energy
• Lower costs
• Sell waste energy
• Reduced CO2 risks
• Tailored energy
• Lower costs
• Sell waste energy
• Reduced CO2 risks

Industry Industry Academic Academic

• Sustainable curriculum
• Lower costs
• Student magnet
• Global network
• Sustainable curriculum
• Lower costs
• Student magnet
• Global network

Community Energy Plan

What Impact is energy and climate change

having on your current activities related to property development and neighborhood design?

What aspects of new local energy supply and

distribution are in current planning?

How are energy-related aspects affecting overall

competitiveness?

What would you like to see included in Arlington’s

Community Energy Plan including financial and

• ther incentives?

What are areas of possible concern?

Discussion and input

Community Energy Plan

For more information: www.arlingtonva.us/energyplan Contact:

Rich Dooley – CEP Project Manager rdooley@arlingtonva.us

Thank You