2015 Building Technologies Office Peer Review



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EERE Demonstration for Advanced Retro-commissioning Technology: Predictive Energy Optimization (PEO) and Automated Demand Response for Commercial Building HVAC 2015 Building Technologies Office Peer Review Michael Nark, michaeln@buildingiq.com BuildingIQ, Inc.

Project Summary Timeline: Start date: October 1, 2014 Planned end date: September 30, 2017 Key Milestones 1. Stage 1 Site Qualification; 2/28/15 2. Stage 2 Site Qualification; 4/15/15 3. Stage 1 Sites Deployment; 6/30/15 Key Partners: New City Energy DGS-Washington, DC Schneider Electric Siemens Portal CM GSA US Govt. Budget: Total DOE $ to date: $ 354,054 Total future DOE $: $ 624,521 Target Market/Audience: ~16 Buildings, ~7.5M SF of space Commercial Real Estate (REIT and Owner/Operator), Hospital, Federal, City and Municipal, Higher Education Project Goal: Demonstrate PEO (Predictive Energy Optimization) performance in multiple and diverse buildings, monitor their performance, analyze the energy and peak power savings, overall economics and verify with specific tests for performance of the application to deliver energy savings. 2

Purpose and Objectives 3 Problem Statement: PEO still faces real market barriers: Relatively unproven as a concept Requires a new approach to how building operators manage their HVAC Target market is largely risk-averse, skeptical and resource-constrained Target Market and Audience: Target market is the 37,000 commercial buildings in the US Office, Government, Health Care and Higher Education Covers ~12B SF and spends ~$30B in energy costs per year HVAC systems in these buildings consume 8% to 12% of total US energy usage Commercial buildings typically represent over 50% of peak demand Impact of Project: Delivery across diverse building types with minimal disruption Showcase the no capex business model and validate savings/ cash flow impact Demonstrates the potential for cost-effective autodr Verify that PEO provides leverage to building staff rather than adding to workload

Approach Approach: Software overlays existing BAS: Automatically adjusts set points Based on a learned, building-specific thermal model Incorporates predictive algorithms and advanced control strategies Utilizes weather forecasts, utility tariffs, event signals and occupant schedules, and adapts to changes. Key Issues: Requires a diverse set of commercial buildings Validation that deployment can be done cost-effectively and without the need for capital investment or highly skilled engineers Validation that PEO delivers sufficient savings and other benefits Integration with applicable utilities or aggregators to bring DR Strong leadership, project management and good working relationships Distinctive Characteristics: Measurable and immediate impact on energy use and peak load Reduces the need for staff intervention to achieve savings Generates positive cash flow all without upfront capital 4

Progress and Accomplishments Lessons Learned: Independent analysis of buildings for 3 rd party M&V added a level of complexity to the building recruitment process. Accomplishments: Completion of the site qualification checklist Completion of the site recommendations template Recruitment of more than six (6) sites for Stage 1 deployment Finalization of the M&V plan and baseline analysis of sites Market Impact: As we just into deployment stage with our first set of sites, results will be forthcoming; It is expected that we ll achieve: 1. In excess of 10% reduction in HVAC related energy costs by year end 2015 2. In excess of 10% reduction in HVAC related load costs by year end 2016 Awards/Recognition: At this point due the initial start of the project, awards and recognition have not targeted at this stage of the project. 5

Project Integration and Collaboration Project Integration: Identify how the project staff collaborate and or coordinate with industry and other relevant stakeholders to accelerate impact. Partners, Subcontractors, and Collaborators: We are working with two key potential channels for our technology: Schneider-Electric s regional branches Siemens national Energy Services business We are also working with the City of Washington DC, a highly visible leader in sustainability and building energy performance. Government buildings are a very attractive market for PEO and therefore this Partner is a great vehicle for marketing results to city, state and federal customers going forward. Communications: At this point since this is a new project, there have not been any presentation of results and benefits still underway. 6

Next Steps and Future Plans Next Steps and Future Plans: Full deployment of configuration of PEO on six (6) Stage 1 sites that will drive HVAC consumption reduction (Kwh) by 12% - 25% Completion of Recruitment for Stage 2 Sites additional ten (10) sites Completion of M&V (Measurement and Verification) plan and baseline analysis of sites Target sites for HVAC load reduction (demand response) milestone June 2016 7

8 REFERENCE SLIDES

Predictive Energy Optimization 9

Implementation Process 10

Portfolio and Building View 11

Continuous M&V and Alerting 12

Case Study High-security, Government building 125,000 sq.ft. Trane Tracer BMS Building s design provided additional challenges to overcome 15% HVAC energy savings Building gained 6 Energy Star points 13

Case Study 17% energy reduction 120,577 sq.ft. (11,202 sq.m.) 5 year-old construction highly efficient 5.5 NABERS score Delta Control BACnet System 14

Case Study 527,000 Sq. Ft. Casino + restaurant + retail + conference Delta Controls BMS Advanced control strategies already in place - Highly efficient 12% HVAC energy savings 13% HVAC peak load reduction 15

Project Budget Project Budget: Site Selection / Recruitment Began October 2014, Three (3) Year Project, Total Budget of $3.4M Variances: No variations to report at this time and none are expected Cost to Date: ~22% of the budget costs at this point - $354K Additional Funding: Potentially additional lab funding (separate budget) to accommodate full M&V plan for remaining sites. October 1, 2014 FY2014 (past) Budget History FY2015 (current) FY2016 September 30, 2017 (planned) DOE Cost-share DOE Cost-share DOE Cost-share $130,396 $130,396 $1,527,754 $1,527,754 $108,988 $108,988 16

Project Plan and Schedule Project Initiation Date of October 1, 2014 Completion Date of September 30, 2017 Three (3) Main Phases Phase 1: Deployment, Phase 2: Energy Efficiency (Kwh) and Phase 3: Demand Response (KW) Go/No Go Decision Points June 2015 (Deployment); December 2015 (EE Performance) Demand Response 2016 Demand 17