Retrofit edition 1

retrofit www.retrofitmagazine.com.au

v lume 1 number 1 2 12

Funding your retrofit It’s easier than you realise

australia

The City of Sydney’s

upgrades for a green future

The energy-saving potential of heritage buildings

“Going green is easy with a little control.”

The One Shelley Street project is a leading example of how Philips Dynalite lighting controls can bring about inspiring and green office environments that cost less to run and have better light. We installed a flexible and intuitive lighting control system that helped gain a 6 Star Green Star rating. Using daylight harvesting to ensure artificial lighting is dimmed when natural light is available; timed-based lighting modes and occupancy sensors to ensure lights are only on when needed and intelligent programming that gives switching and dimming flexibility. We’ve made it easy to save energy and money as well as enjoy a healthier and more productive workplace. Take control and go green at www.philips.com/dynalite

Contents Page

2

Minister’s Foreword | Greg Combet, Minister for Climate Change and Energy Efficiency

4

Welcome to the first edition of Retrofit Australia

News

8

Accreditation scheme for commercial building retrofit providers | Energy Efficiency Council

Heritage Buildings

14

48

Who’s the greenest of them all? | Romilly Madew, CEO, Green Building Council of Australia

Profile: City of Sydney

20

International Case Study

Lighting

60

A city mission: The City of Sydney’s existing buildings shape up for energy efficiency

Leading by example at the Empire State Building | an interview with Clay Nesler of Johnson Controls

LEDs and lighting retrofits | Bryan Douglas, CEO, Lighting Council Australia

Alternative Energy

66

The commercial viability of alternative energy in commercial building retrofits | Ian Porter, CEO, Alternative Technology Association

Finance and Funding

69 Clearing energy efficiency hurdles | Low Carbon Australia 73

Environmental upgrade agreements key to better building ‘footprints’ | NABERS

Energy Efficiency

28 Retrofitting cogeneration | Toby Roxburgh,

AECOM, on behalf of the Energy Efficiency Council

Professional

34

40

45

Energy efficient infrastructure | Antony Sprigg, CEO, Australian Green Infrastructure Council A financial solution: Making it simple | Scott Bocskay, CEO, Sustainable Melbourne Fund Committing to green performance from the outset | NABERS

76

HVAC

80

Planning your retrofit – how to make a fruit salad, not just pick the low-hanging fruit | David Chokolich, GHD

Residential Retrofitting

85

The editor, publisher, printer and their staff and agents are not responsible for the accuracy or correctness of the text of contributions contained in this publication or for the consequences of any use made of the products, and the information referred to in this publication.

The editor, publisher, printer and their staff and agents expressly disclaim all liability of whatsoever nature for any consequences arising from any errors or omissions contained in this publication whether caused to a purchaser of this publication or otherwise. The views expressed in the articles and other material published herein do not necessarily reflect the views of the editor and publisher or their staff or agents. The responsibility for the accuracy of information is that of the individual contributors and neither the publisher nor editor can accept responsibility for the accuracy of information which is supplied by others. It is impossible for the publisher and editors to ensure that the advertisements and other material herein comply with the Trade Practices Act 1974 (CTH). Readers should make their own enquiries in making any decisions, and where necessary, seek professional advice.

© 2012 Executive Media Pty Ltd. Reproduction in whole or in part without written permission is strictly prohibited.

Leading industry body calls for ‘embedding’ of skills for a sustainable future | The Australian Sustainable Built Environment Council

Retrofitting the home for energy efficiency | Michael O’Connell, Alternative Technology Association

Editor: Gemma Peckham P: 03 9274 4200 E: gemma.peckham@executivemedia.com.au Layout: Alma McHugh Published by:

ABN 30 007 224 204 430 William Street, Melbourne VIC 3000 T: 03 9274 4200 Fax: (03) 9329 5295 E: media@executivemedia.com.au W: www.executivemedia.com.au

Retrofit Australia is endorsed by:

Cover image: The City of Sydney retrofit australia • volume 1 number 1 2012 • 1

| Minister’s Foreword

Minister’s Foreword Green leases focus on energy efficiency and sustainable performance targets. They establish 4.5 star NABERS Energy targets for major office refurbishments where work is performed on an existing building of at least 2000 square metres, and where the work represents more than 50 per cent of the base building and more than 50 per cent of the tenanted area.

Greg Combet

I

congratulate Retrofit Australia on bringing a new focus on ways the commercial, industrial and residential sectors can reduce their greenhouse gas emissions, and save money.

Energy efficiency is one of the four elements of the Australian Government’s Clean Energy Future Plan, together with putting a price on carbon, encouraging innovation in clean energy and creating opportunities on the land.

The carbon price creates incentives to use energy more efficiently.

However, the federal government also has a range of strategies that will interest Retrofit Australia readers.

As part of the National Strategy on Energy Efficiency, the federal, state and territory governments have agreed upon a National Green Lease Policy (‘Green Leases’).

As tenants, governments will use the green lease as a management mechanism to work with building owners to improve environmental performance.

2 • retrofit australia • volume 1 number 1 2012

The Heating, Ventilation and Air-Conditioning High Efficiency Systems Strategy focuses on improving the installation, operation and maintenance of HVAC systems in commercial buildings. The aim of this strategy is to achieve additional reductions in greenhouse gas emissions while reducing the cost to commercial consumers operating HVAC products.

Commercial Building Disclosure is a program requiring disclosure of energy efficiency in large commercial office spaces. Energy efficiency affects running costs for building occupants, and disclosing this information helps potential buyers and tenants to make informed decisions. It also encourages sellers and lessors to consider energy efficiency retrofits in their existing commercial building stock.

And for readers in the manufacturing sector, the government’s $1 billion Clean Technology Investment programs will support investment in energy efficient equipment, and low-pollution technologies, processes and products.

This will support manufacturers to become more energy efficient, more competitive and more sustainable.

We know that initiatives like these drive positive changes. The Green Building Fund, for example, was established in 2008 to reduce energy consumed by existing commercial office buildings. It was extended in 2010 to include hotels and shopping centres, as well as commercial office buildings.

The program has provided over $118 million in grant funding for 318 energy efficiency building upgrades around Australia. Collectively, the funded projects have projected savings of almost 300,000 tonnes of carbon dioxide equivalent each year across the useful life of building upgrades, such as: • upgraded heating, ventilation and air-conditioning • improved building control and monitoring systems • energy efficient lighting • implementation of renewable energy, cogeneration or trigeneration.

Changes like these are important Improving energy efficiency and reducing carbon pollution from buildings and facilities is good for the bottom line of individual businesses.

And at a national level, these changes will also ensure that Australian industry is more competitive, and will help tackle climate change.

I hope you enjoy the first edition of Retrofit Australia.

Greg Combet AM MP Minister for Climate Change and Energy Efficiency Minister for Industry and Innovation

| Introduction

Welcome to the first edition of Retrofit Australia.

At Executive Media, we’ve come to learn that things never stop moving in the green building sphere. Our publications have documented a shift of focus in the built environment, from design elements and new builds to environmentally sound features and their integration into existing buildings.

O

ver the past few years, retrofitting has risen to prominence as an important way of reducing existing buildings’ energy and water consumption, and improving their efficiency, amenity and value. We see retrofitting as a vital part of Australia’s energy efficiency transformation, and are delighted to bring you this publication to showcase the advancements, best practice and innovation that are taking place in this area of green building.

We see retrofitting as a vital part of Australia’s energy efficiency transformation In this inaugural edition of Retrofit Australia, we take a look at the retrofitting process through case studies, technical articles, information from experts in the field, and the analysis of existing buildings.

As a way of showcasing achievements in this area, this edition’s two case studies show how

4 • retrofit australia • volume 1 number 1 2012

best practice in retrofitting can be applied to any built environment, including Australia’s largest city, and New York’s most famous building: The City of Sydney has launched a campaign to reduce its carbon emissions by 70 per cent by 2030. A significant contributor to the City’s carbon emissions is its existing building stock, prompting a major retrofit of a number of buildings in the City’s portfolio. Read more about the project and its results to date on page 20.

Further afield, New York City is home to a number of famous buildings, but one in particular is making its mark as a world leader by tackling its energy consumption. The Empire State Building has undergone an impressive retrofit, with equally impressive results. Read our interview with Clay Nesler, Vice President of Johnson Controls and an important collaborator on the Empire State Building project, on page 48.

Also in this edition, we hear from Romilly Madew, Chief Executive Officer of the Green Building Council of Australia, on heritage buildings and their ability to become some of our most sustainable buildings (page 14). Antony Sprigg, Chief Executive Officer of the Australian Green Infrastructure Council, gives an overview of the Council’s new

Infrastructure Sustainability rating scheme and how it can drive innovation and validate industry achievements (34).

We look at the practical implementation of retrofitting your current building, with Bryan Douglas, Chief Executive Officer of Lighting Council Australia, providing information about LED lighting retrofits (60), and the Energy Efficiency Council (28) weighing in on cogeneration and trigeneration.

On the administrative side, funding is a concern for many potential retrofit projects, but, as Scott Bocskay, Chief Executive Officer of Sustainable Melbourne Fund, explains, retrofitting doesn’t have to be a financial challenge (page 40). We also hear from Low Carbon Australia on Environmental Upgrade Agreements, which take the up-front cost out of implementing your building’s retrofit (69). For information on building efficiency ratings, see our NABERS article on page 45.

To round out an edition packed with useful information, we get the low-down on alternative energy in commercial building retrofits from Ian Porter, Chief Executive Officer of the Alternative Technology Association (66), and take some notes from the Australian Sustainable Built Environment Council on ensuring that our commercial building sector is sufficiently skilled to take on environmental upgrades (76).

We hope you enjoy the first edition of Retrofit Australia; and the many more to come!

Company Profile |

Insulation retrofits are good for business

BY SANDY MCPHERSON, MANAGING DIRECTOR, PRACTICA MMC*

C

limate change, rising electricity prices, new regulations and a softening economy have placed the spotlight firmly on energy efficiency in the built environment.

In Australia alone, over 60 per cent of our existing commercial building stock will still be standing in 2050. This coupled with the fact that a quarter of the nation’s carbon footprint is generated this way, means that we need to revise our energy consumption.

Imperative for change Today, owners or lessors of 2,000 sqm or more of office space are anxiously trying to find ways to lower their energy and water consumption in order to obtain a current Building Energy Efficiency Certificate as part of the National Australian Built Environment Rating System (NABERS). This is an official measure of a building’s efficiency and there are penalties for non-compliance.

Increasing the insulation value of external walls is one of the single most efficient ways to improve energy efficiency. The reason is quite simple.

By having an insulated external building envelope, the façade and interior of the building is protected from thermal exchange from outside

extremes. Hot and cold spots in the wall system are eliminated and energy costs related to heating and cooling can be reduced by 30 to 40 per cent.

Comparing the ‘before and after’ thermal images (shown here) clearly demonstrates the thermal efficiency of an accredited insulated external wall system like MasterWall K-Series, which has been specifically formulated for Australian conditions and includes C3 Cyclonic rating and B.A.L. 40 fire rating. The ‘after’ image demonstrates just how powerful the insulative effect is compared to the amount of heat loss experienced in the ‘before’ image where the tenants are home.

What’s more, after application of the system, the aesthetic and financial value of the building was considerably enhanced with the application of various architectural finishes and textures.

Incentives drive retrofits While the benefits of energy retrofits are plain to see, there is still some resistance to large-scale adoption due to the capital costs involved.

Having said that, the City of Melbourne is leading the way towards change with its 1200

Buildings Program, which offers financial incentives for retrofits. The program encourages building owners to retrofit their properties as a way of lowering their environmental footprint and greenhouse gas emissions, while at the same time reducing operating costs, tenant churn and vacancy rates. Practica’s MasterWall K-Series System is one of the technologies that qualify for funding. Powered by Kingspan’s Kooltherm® panels and Practica MMC›s innovation and technology, MasterWall K-Series is fully compliant with the Building Code of Australia and achieves C3 cyclonic rating as well as B.A.L. 40 fire rating.

If adopted by more cities around Australia, financial incentives such as the 1200 Building Program could be the catalyst for a new wave of investment in commercial retrofits and would indicate a broad-based commitment towards sustainability. * Practica MMC is an Australian company offering a unique range of modern insulating wall construction solutions for residential and commercial projects. Brands include MasterWall, MasterFloor and MasterWall K-Series powered by Kingspan Kooltherm®. For more information, visit www.practicammc.com.au

BEFORE: Infrared image shows the extensive amount of heat loss that can occur in older buildings.

AFTER: Thermal image shows the difference an insulated external wall system like MasterWall K-Series can make to reducing heat loss, increasing energy efficiency and ultimately complying with NABERS. For the City of Melbourne, financing is available with the 1200 Buildings Program.

Image supplied with kind permission of Wetherby Building Systems UK.

retrofit AUSTRALIA australia • VOLUME volume 1 NUMBER number 1 2012 • X 5 RETROFIT

| CompanyProfile Profile Company

Proven technology that outshines the competition Energy efficient lighting is a sure way to cut power costs and reduce CO2 emissions on a commercial building retrofit. With 60 per cent of today’s commercial buildings expected to be still in operation in 2050, retrofitting with robust, durable materials is the most practical and economic choice.

T

he standout lighting solution for high bay and low bay retrofits is a proven technology that has improved in leaps and bounds as the worldwide demand for energy efficient buildings has grown.

In widespread use throughout the United States for the past 15 years, the viability of linear fluorescent lamps in high bay applications surprises many in Australian industry; yet more than 70 per cent of the world’s artificial lighting is derived from fluorescent light sources.

When energy efficient 1848A_5LT5 linear fluorescent high bays, made in Australia by EELCO, were installed in 3M’s Pemulwuy Medical Goods distribution centre as a one-forone replacement for their powerhungry 400-watt high bays, there was a dramatic improvement in illumination levels and a significant reduction in electricity running costs.

3M’s Engineering Manager, John Short, became an immediate convert to the home grown product, saying, ‘We improved lighting levels; more light, better colour and no patchiness.

For any organisation wanting to improve light and save energy, it would be very worthwhile to investigate these fittings.

individual facility needs is a significant advantage offered by the local manufacturer, and one that few competitors can offer. When Greens General Foods wanted an energy efficient alternative to their standard high bays, as well as an upgrade of emergency lighting to comply with minimum lux levels specified in Australian Standards AS/NZS 2293, EELCO came up with a tailor-made, cost-saving solution.

They installed Australian-made EELCO 1848A_4LT5_EM high bays, with a built-in emergency light feature, as a direct one-for-one replacement for the existing fittings.

The energy efficient EELCO lighting made an immediate and dramatic improvement in both lighting quality and lux levels.

‘They saved us from spending unnecessarily on separate emergency lighting that would only have been used during a power outage,’

said Green’s Engineering Services Manager, Magdon Ismail. Projected CO2 emissions reduction will exceed 55 tonnes per year, while electricity cost savings will amount to over $10,000 annually. The retrofit also qualified for an Energy Savings Certificate (ESC) rebate of over $11,000 from the New South Wales Government Energy Savings Scheme (ESS).

The linear fluorescent lamps used in EELCO 48 series light fittings have a published ‘Viable Lamp Life’ of 30,000 hours, or around eight years, based on 12 hours per day, six days per week, which is well in excess of any of the realistic competitor technologies on the market.

‘When light output from lamps supplied with our fittings does finally diminish, inexpensive replacements are readily available at all electrical wholesalers and even most general hardware stores,’ Mr Fear said.

‘Along with minimal maintenance and increased lamp life, 3M’s new EELCO lighting system will pay for itself completely in well under three years,’ said EELCO managing director, Mathew Fear.

Tailoring lighting systems to

6 • retrofit X RETROFIT australia AUSTRALIA • volume VOLUME 1 number NUMBER 1 2012

Tailoring lighting systems to individual facility needs is a significant advantage offered by local manufacturer, EELCO.

Energy Efficient High Bay Lighting Systems Before

After

1

2 “ We have better lighting at reduced cost. In the high bay area the EELCO fittings produce twice the illumination at half the ongoing electricity cost.�

Alan Barraclough, Gazal Apparel

3

One for one replacement saving up to 70% on running costs

Guaranteed energy and maintenance savings using proven technologies

Longer lasting superior illumination designed to AS/NZS1680

Quality Australian made EELCO High & Low Bay Lighting Systems are specially designed to replace conventional power hungry high bay lighting in warehouses, factories and other large industrial facilities.

Finance options, huge rebates and government assistance packages are now available in some states.

Call 1300 335 769 TODAY! FOR YOUR OBLIGATION FREE* COST BENEFIT ANALYSIS

*Eligibility criteria apply. Rebates vary from state to state.

Email: info@eelco.com.au

www.eelco.com.au

| News

Accreditation scheme for commercial building retrofit providers The Energy Efficiency Council (EEC) has been working closely with industry, governments and education providers to develop an accreditation scheme for the individuals and companies that oversee energy efficiency retrofits of commercial buildings. Accreditation schemes are essential for the sustainable growth of the energy efficiency sector, as they reduce the risk of poor quality projects, and support the development of training that meets the needs of industry.

I

n 2011, the EEC designed a framework for accreditation, in conjunction with Sustainability Victoria and the National Framework for Energy Efficiency (NFEE). The EEC convened a steering committee made up of representatives of state and federal governments, and undertook extensive consultation with industry professionals and the broader sector.

The resulting framework was detailed in the report ‘Accreditation for Individuals and Companies Providing Integrated Energy Efficiency Retrofit Services’, delivered in late 2011.

Over the past six months, the EEC has engaged with governments to ensure their support for this model of accreditation. The EEC is now developing this framework into a detailed scheme that is ready for implementation. This next phase of

8 • retrofit australia • volume 1 number 1 2012

design will focus on administration, audit mechanisms and training pathways for new entrants to the sector. After the scheme design is finalised, the EEC will implement the scheme in the first half of 2013.

There will be an opportunity to provide feedback on the draft scheme design during the public consultation period in late 2012.

For information on the progress of this important project, visit www.eec.org.au or call Luke Menzel on 03 8327 8421.

Company CompanyProfile Profile|

A vision blue

B

AC Australia, the nation’s leading HVAC&R manufacturer of evaporative cooling, thermal storage, and heat transfer equipment, has set out its sustainability vision to the end of the decade, through the release of its environmental sustainability platform visionblue. ‘visionblue has been built on the three pillars of community, environment and education/training,’ said Grant Hall, Director of Marketing and Sustainability for BAC Australia.

‘While our company has been working hard to offer environmentally sustainable solutions for customers over many years, we have overlooked our own environmental management for too long. For some time we have been highlighting the environmental performance of our products, however the truth of the matter is that we haven’t really taken the time to improve our own production efficiency.

Now there’s even more reason to buy from the world’s leader in heat rejection & thermal storage equipment

Australian Made

‘visionblue is our commitment to walk the talk.’

He said BAC Australia as a whole has taken the approach that to build and maintain a strong and sustainable business for the longer term, the communities in which it operates need to benefit.

The visionblue plan also seeks to minimise any negative environmental impact from the company’s operations. At the same time, it plans to educate customers and the wider industry in more sustainable approaches to heat rejection.

A number of initiatives set out under visionblue will be announced in the coming months, and BAC Australia hopes customers will begin seeing the benefits of these as new products are released.

product range thermal integrity

sustainability platform

local service Baltimore Aircoil Aust. Pty Ltd Contact your local BAC rep to find out more.

Ph: 1300 134 622

www.baltimoreaircoil.com.au 3C Cooler - Part of BAC’s environmentally responsible heat rejection range

9 retrofit australia • volume 1 number 1 2012 • X

||Company CompanyProfile profile

Federal halogen phase-out leads to money saving solutions

T

he Australian government’s ban on the importation of 50-watt halogen downlights took effect this past April. Since then, electricians across the country have been scrambling for alternative lighting options.

Initially the phase-out represented a real opportunity for commercial buyers to embrace energy-efficient technology, take the sustainable approach and lower their electricity bills.

However, all commercial buildings must still meet Australian Standard Lux Levels (AS 1680 series), making a lot of energy-efficient lights on the market unsuitable, as they just aren’t bright enough.

Consequently, it seems that the government has put business owners between a rock and hard place; looking for replacements that offer equivalent brightness, but still keep power usage to a minimum.

However, it is possible to have both and ensure a risk-free retrofit with no loss of light quality. In order to achieve this, it’s important for electricians to advise on the lux levels required for commercial premises and the exact brightness (measured in lumens) and efficiency of the retrofit lighting product chosen.

The easiest way to ensure the product offers the correct brightness is to find a light with a similar lumen count to a halogen. According to the Australian Department of Climate Change and Energy Efficiency, the average 50-watt halogen light is 720 lumens. Ideally, your retrofit replacement should be the same.

10••RETROFIT retrofitAUSTRALIA australia••VOLUME volume11NUMBER number112012 2012 X

The easiest way to meet both lux and efficiency requirements is through utilising LED technology.

LED lights produce the same amount of light as a halogen (720 lumens) and provide the same warm colour (3000K) while using about 20 per cent of the power. Consequently they are the leading choice of energyefficient replacements for 50-watt halogens.

Most LED halogen replacements are around the 10-watt mark, which means electricity bills can be decreased by 80 per cent without losing brightness. More importantly, legal requirements can also be met.

As well as their lighting performance, LED downlights have a great deal of compatibility with halogen transformers and dimmers, making for an easier retrofit. They also fit into existing halogen fittings.

On top of all these benefits that LED technology provides, one of the most compelling commercial reasons to use LEDs for a retrofit is their long life. LEDs can last up to 70,000 hours, which minimises maintenance costs.

The low power usage of LEDs also means they reach a payback time of less than 12 months, which falls well below the three-year warranty period that comes standard with premium LEDs. For companies that are seriously considering retrofitting LEDs and need to compare the initial costs against your company’s power and carbon savings, most LED suppliers have retrofit calculators available online that show how fast a

company’s ROI will be.

For large installations involving more than 50 lights, this is a great way to accurately weigh up the costs of shifting over to an energy-efficient replacement that has, in many ways, saved the day as government bans and regulations are being tightened and energy power costs are constantly rising.

The10W LED bulb that delivers 50W of light.

The only LED retrofit bulb that’s as bright as a 50W halogen.

The DR700 is the only 10W LED replacement bulb to match the brightness of a 50W halogen. This means your power costs will be reduced by 80% but your light quality will remain the same. With an average payback of one year, an unconditional guarantee of three years and a design lifetime of 30 years, you can triple your investment - guaranteed.

As the DR700 is the only LED bulb to match 50W halogen brightness, your business will continue to meet Australian OH&S standards by complying with the legally required minimum lux levels (AS1680). The DR700 is also designed to fit into all downlight fittings without changing any drivers, which means

380 *

installation is simple, fast and hassle free.

* Official Brightness of Philips MasterLED provided by Philips. # The DR700’s lumen output will vary

720

#

720

LUMENS

LUMENS

LUMENS

LED COMPETITOR

BRIGHTGREEN

50W HALOGEN

depending on what driver is used. ^ Official brightness of 50W halogen according to the Department of Climate and Energy Efficiency is 720 lumens.

Calculate your savings with our FREE Brightgreen App.™ Calculate how quickly the DR700 can start saving you money with our Brightgreen App,™ which helps calculate retrofit savings and develop lighting plans to make sure your building is OH&S compliant. Usually $4.99, the app is free for all readers who register at brightgreen.com

Call to estimate your government rebate.

If your business is in VIC or NSW, you will be eligible for a significant rebate. In some instances, this will pay for the lights outright so you can enjoy the 80% reduction in halogen power costs immediately. Phone one of our National Energy Auditors today for a free estimate on your rebate:

MaximumLight - 1800 111 286 CSR Bradford - 1800 332 332 Go Green Alliance - 1300 552 872

YEARS WARRANTY

^

Find your nearest stockist www.brightgreen.com

||Company CompanyProfile Profile

Going ‘green’ the answer to spiralling energy costs

BY GEOFFREY GOURLEY, DIRECTOR, SUSTAINABILITY INTEGRATION, NUGREEN SOLUTIONS

The humble office light fitting holds the key to keeping energy costs in check.

E

nergy costs are the bane of most companies’ existence and, with the introduction of a price on carbon to add to other regulatory, transmission and distribution charges, it all seems to be getting out of control.

Five steps to reducing energy costs:

According to a report by Allen Consulting Group, the costs to run commercial buildings are set to increase well above the average of the economy primarily because of the spiralling costs of electricity. The report also asserts that the carbon pass through will add around 1.8 per cent to the costs of running an average commercial site.

• lease infrastructure.

Grant King, CEO of Origin Energy, said in 2010 that electricity prices were likely to triple over the next 10 years due to the large amounts of renewables being forced into the system, the un-costed charges of those renewables and a substantial increase in transmission and distribution charges. All of this means it is near impossible to accurately forecast one of the major cost inputs of running a commercial site.

With commercial office operations, high costs are associated with lighting and HVAC, so the challenge to manage electricity costs is considerable. The expense of having maintenance contractors swap out lighting and associated OH&S issues further adds to the costs of running office lighting.

But businesses can achieve environmental goals and reduce energy costs by reducing consumption.

12••RETROFIT retrofitAUSTRALIA australia••VOLUME volume11NUMBER number112012 2012 X

• audit current energy use • install led light fittings and optimise HVAC • investigate government ‘green’ schemes

Audit current energy use A recent audit of a commercial office in Victoria measured current lighting levels and analysed energy consumption of existing light fittings.

The site had thousands of T8 and T5 fittings, and the data from the audit was benchmarked against the more energy-efficient LED fitting. Savings of 40 to 50 per cent on current lighting spend were identified. The audit also identified additional savings (through tariff optimisation), and large annual maintenance costs were removed.

In addition, motion sensors were identified as providing further energy use reductions.

Install LED light fittings By undertaking a complete retrofit to LED light fittings, the benefits are numerous in comparison to conventional lamps.

LED lights use between 50 and 90 per cent less energy, which reduces cost and carbon emissions.

They last up to 20 times longer than conventional bulbs, which means: • less maintenance reducing OH&S issues when swapping out • enhanced office presentation, as the lights are less likely to blow or flicker.

LED lighting is also brighter and emits less heat than conventional lighting.

Investigate government ‘green’ schemes Governments are incentivising businesses to reduce energy consumption and carbon emissions.

The Victorian Energy Efficiency Target (VEET) scheme is an example of a program that funds commercial investment that reduces greenhouse gas emissions. In New South Wales the Energy Savings Scheme reduces electricity consumption by creating financial incentives for energy saving activities.

Other federal and state programs can be found at www.savingpoint.com.au.

Integrated approach The best results can be gained by looking at energy consumption in a strategic way. By that I mean think about how technology, finance, energy and carbon tax management can work in an integrated way to produce the best results for your business.

Energy cost management does not need to be a major headache for businesses.

NuGreen is an Australian company built to address the new and emerging energy related issues facing organisations in Australia, using the world’s best and latest technology to minimise customers’ energy consumption and cost. NuGreen finances and manages sustainable projects from concept to completion. For more information on NuGreen visit www.nugreen.com.au or call 1300 300 025.

Achieve immediate savings of up to 70% on your energy bills at your commercial property with no capital outlay.

NuGreen offers an innovative Australia-wide concept to complete retrofit solution that brings together the design, installation, grants, funding & maintenance of energy efficient upgrades to commercial properties with the aim to reducing energy costs and carbon tax payments.

With electricity prices forecast to rise dramatically over the next 5 years energy efficient solutions for businesses are critical. The larger scale improvements the greater carbon tax saving and increase in NABERS & Green Star Ratings.

By partnering with leading financial institutions and assembling the best technical advisors to keep at the cutting edge of sustainable technology, NuGreen have created a revolutionary solution for the commercial sector that integrates government grants, energy management, financing partners and best of breed technical teams to deliver specialty solutions from concept to completion.

The NuGreen model allows you to optimise your cash flow and fully fund energy improvements to your existing building providing an immediate reduction in:  Energy Costs

 CO2 Emissions

 Maintenance Costs

 Capital Outlay

Our Market: Warehouses & Offices | Hospitals & Aged Care Facilities | Government Buildings | Hotels & Gaming Venues Universities & Schools | Retail & Supermarkets | Service Stations | Sporting Facilities | Plus many more...

Completed Audits & Current Projects

Energy Audit your Property Today - Australia Wide.

T 1300 300 025 F 1300 300 065 E sales@nugreen.com.au W nugreen.com.au

| Heritage Buildings

Who’s the greenest of them all?

By Romilly Madew, Chief Executive OFFICER, Green Building Council of Australia

‘When we build let us think we build forever. Let it not be for present delight nor for present use alone. Let it be such work that our descendants will thank us for, and let us think, as we lay stone upon stone, that a time is to come when these stones will be held sacred because our hands have touched them, and that men will say, as they look upon the labour and wrought substance of them, “See! This our fathers did for us”.’

John Ruskin

14 • retrofit australia • volume 1 number 1 2012

I

The InterfaceFLOR office at 101 Chalmers Street, Sydney

t’s easy to dismiss Australia’s heritage buildings as insignificant.

Compared with the Pyramids of Egypt and Mexico, the churches and castles of Europe, or the temples and shrines of Asia, Australia’s architecture is shiny and new. And yet, Sydney is older than Singapore, Washington DC, Johannesburg and San Francisco, and many of our buildings from the colonial era and later have great historical and aesthetic value.

They can also, surprisingly, be our most sustainable buildings – after all, the greenest architecture is created from that which is already there.

One of the most valuable opportunities emerging in the sustainable building space is the concept of renovation, adaptation and preservation. More and more people are recognising that we need to make do with the spaces we have, and what’s more, to make do with less in order to preserve our precious resources.

Heritage Buildings |

Existing buildings already represent an investment of resources in terms of energy, water and materials. By conserving our existing buildings, we can reduce energy usage associated with demolition, waste disposal and new construction, as well as preserve embodied energy – the energy consumed by the processes associated with the production of a building, from the mining and manufacturing of materials and equipment, through to the transportation of materials and administrative functions.

For many years, it was assumed that upgrading a heritage building to higher sustainability standards would be impossible without compromising its character. However, heritage buildings generally have ‘good bones’, and are ideal candidates for green retrofits. The great virtue of these buildings is that they were built to last.

Most of Australia’s heritage buildings were constructed during a time before air conditioning and

electric lighting. As a result, architects focused on good thermal mass, high ceilings, passive shading, and large windows for air flow, temperature control and natural light – the same features that green designers integrate into new building projects today.

The Perpetual Building at 39 Hunter Street in Sydney was the first heritage-listed building in Australia to achieve a 6 Star Green Star – Office Design rating. Constructed in 1916, the building had undergone alterations in the 1960s and 1970s, which effectively stripped it of many of its best and greenest features.

Previous renovations had concealed decorative cornices behind suspended ceilings, while light wells had been obstructed, reducing the daylight penetration into the building.

The design team quickly identified that the most significant remaining heritage features, although damaged during past ‘modernisation works’, were the ceilings’ beams and cornices. Restoring these features demanded a mechanical ventilation

One of the most valuable opportunities emerging in the sustainable building space is the concept of renovation, adaptation and preservation system that allowed the ceiling to remain exposed. An underfloor displacement system was settled upon, while raised floors enabled mechanical, electrical and hydraulic services to be concealed, and the heritage ceilings to soar as they once did.

Perth’s GPO after its refurbishment

retrofit australia • volume 1 number 1 2012 • 15

| Heritage Buildings

The Perpetual Building at 39 Hunter Street, Sydney

If you walk into 39 Hunter Street today, you’ll be met with an atrium that stretches the full height of the building, allowing sunlight penetration. The indoor environment quality is high, with 95 per cent of all painted surfaces, carpets and adhesives low in volatile organic compounds. A new ceiling fixture combines light and acoustic dampening – enabling the best in new design to be combined with the character of the old. The project team rose to the challenge that 39 Hunter Street presented, and the result is as spectacular as it is sustainable.

The ceiling of Melbourne’s Goods Shed North

16 • retrofit australia • volume 1 number 1 2012

Australia’s traditional masonry and stone buildings tend to be high in thermal mass. This means that in summer the thermal mass – the sheer ‘bulk’ of the building – slows the transfer of outdoor heat to the inner cooler surfaces of the building, ensuring a comfortable internal temperature. In winter, the high thermal mass enables the building to store daytime heat and re-radiate it throughout the night.

Installing new sustainable services, such as energy efficient air conditioning, hot water systems, water tanks and solar panels, may offset some of the less efficient fabric and features of heritage buildings.

Perth’s GPO, renowned for its neoclassical façade of columns and balconies, and jarrah parquetry floors, is another heritage-listed building that has been given a green transformation. When it opened in 1923, it was the largest and grandest building in Perth. In recent days, the building has been completely refurbished, meeting the 4 Star Green Star benchmarks for the base building, and 5 Star Green Star benchmarks for the interior fitout.

This is a particularly impressive result, as the refurbishment presented many challenges: limited views and daylight, compromised mechanical services and the need to preserve a façade that former Commonwealth architect John Smith Murdoch

had called ‘the finest I have ever seen’. Through clever design and engineering, the refurbishment exposed ceilings, incorporated light wells to brighten the spaces and rearranged mechanical services so that the beauty of Perth’s ageing icon could be once again be appreciated.

In Melbourne, the Victorian Building Commission’s office, Goods Shed North, was once the largest railway shed ever built in Melbourne. Constructed in 1889, the Goods Shed lay at the heart of the golden age of the railways. But by the time it was earmarked for refurbishment, the building had lain derelict for more than 30 years. Piles and steelwork were damaged, and a complete section of the building had to be demolished and reconstructed brick-by-brick. Roof rectification also proved challenging, as the slate roof needed to be painstakingly replaced in its entirety.

While the building’s exterior would today be recognised by the train drivers and railway men of the late 19th century, its interior is now a high-performance office space. Many of the building’s original features were cleverly integrated into the office fitout. Old doors and slate from the roof are now eye-catching feature walls, while the old railway tracks are a talking point. These historical elements infuse the building with character, while state-of-the-art green

Heritage Buildings |

The Home HQ household retail centre, North Shore, Sydney

technologies ensure a high level of indoor environment quality.

It is, however, the green features – which have gained the Goods Shed North its 5 Star Green Star ratings for the design and construction – that really set this heritage building apart. An underfloor services trench houses key services for distribution through the shed. This central trench acts as an underfloor displacement ventilation system, providing heating and cooling that enables internal heat gain to drift up and out of the building using the central pitched roof. The roof plant houses a trigeneration system comprising four micro gas turbines coupled with an absorption chiller to produce

electricity, and heating and cooling.

These initiatives provide for a high level of indoor air quality, and further enhance the working environment.

In Sydney, the InterfaceFLOR head office and showroom in the heritage-listed 101 Chalmers Street building is also demonstrating how heritage buildings can go handin-hand with a high-quality office environment. The two-storey red brick and sandstone building was constructed in 1891 and adjoins an 1899 single-storey library, known as the ‘Railway Institute Building’.

While maintaining the heritage structure of the building, InterfaceFLOR was committed to a sustainable interior. All fabrics used

in the interior came from recycled and recyclable materials; Good Environmental Choice Australia (GECA)-certified products were selected where possible. Products were selected based on their durability, their eco-preferred content and their ‘design for disassembly’ features, which ensure they are easy to take apart so that product parts can be re-used elsewhere when they are no longer needed.

Of course, heritage-listed buildings are not just used as offices.

The Home HQ household retail centre on Sydney’s North Shore was awarded the first rating under the Green Star – Retail Centre v1 tool. It was no easy task to turn a dilapidated 1940s factory into a retail space that people would enjoy. Home HQ’s light-filled interior, re-use of existing materials, and bespoke public art that charts the history of the site, adds character and demonstrates that good design can transform even the most neglected of buildings.

Certainly, the greening of heritage buildings is a challenge, and it’s true that compromises may need to be made during a green retrofit program; however, questioning whether it’s worth upgrading a heritage building to contemporary standards is similar to asking whether we should preserve St Peter’s Basilica in Rome, or Westminster Abbey. We just should.

GPO Perth’s neoclassical façade

retrofit australia • volume 1 number 1 2012 • 17

| Profile: City of Sydney

City of Sydney |

Retrofitting the City of Sydney When the City of Sydney put out a call for expressions of interest to take on its sizeable retrofit works project of 45 of the city’s buildings, both Origin Energy and Ecosave were immediately interested. Rather than submitting separate tenders, however, the two companies formed a consortium to bid on the tender ensuring that the strengths of the organisations were harnessed in the application.

C

hief Executive Officer of Ecosave, Marcelo Rouco, says, ‘Origin felt that Ecosave was the right partner because of their energy efficiency experience and skill set. We felt that the City of Sydney would want to deal with a business with a strong reputation for delivering energy solutions and widely recognised in the marketplace. So we married the financial strength and sustainability credentials of Origin together with the technical capabilities of Ecosave.’

The task is significant: retrofit 45 of the city’s buildings – varying from office buildings to the iconic Sydney Town Hall, swimming pools, child care centres and council depots – in order to achieve substantial energy and water savings. The measures implemented vary from air conditioning upgrades to lighting upgrades, building management system optimisation, smarter controls for the buildings, and water efficiency measures.

Says Mr. Rouco: ‘Ecosave used its technical capabilities to identify the solutions and calculate the savings, and together with Origin put forward what both felt should be done, and we won the tender based on having found savings more economically than other tenderers.’

The consortium of Origin Energy and Ecosave guarantees the predicted savings, and as such ensure that their implementation delivers above and beyond their promise. Says Mr. 18 • retrofit australia • volume 1 number 1 2012

Rouco: ‘We want to make sure that we over-deliver. We show the client a figure that we know we will very comfortably meet.’

Mr. Rouco tells Retrofit Australia that the project is already threequarters delivered, with many facilities completed, and a number of these sites have seen savings that exceeded their expectations. ‘We’re very happy to say that in some [of the completed projects] we’re saving a lot more than expected, and in the others we’re saving what we proposed.’

How does the company identify the best solutions for its customers?

‘One of the things that we enjoy at Ecosave is that because we don’t manufacture, distribute or in any way attach ourselves to any product, we are thoroughly solutionagnostic,’ says Rouco. The company exhaustively researches and tests all available products before reaching a decision about the right solution.

‘There are good products and solutions in the market – we just have to find them, test them, make sure they do what they say they do, and deliver great solutions to the clients.

‘In energy efficiency, it’s not one solution that works all the time. It’s really about knowing what’s out there and what works best for the specific building,’ says Mr Rouco.

disrupted by the works taking place, and Ecosave is sympathetic to these requirements. ‘We need to make absolutely sure that we don’t interrupt the operations of the building. That means most of our work actually happens overnight. After hours, project managers and tradespeople do the work, clean up, put everything back, take away the drop sheets and make it look as if nothing happened.

It has to be seamless.’

Another challenge is in keeping all stakeholders pleased, and there are a lot of them: City of Sydney stakeholders, the facilities management company, Origin, Ecosave and the contractors. Origin and Ecosave both employ a project relationship manager. In Ecosave’s case the project relationship manager has 10 project managers reporting to him to ensure that everything runs smoothly, and the client is kept informed.

Mr. Rouco is pleased with the way that the job’s been carried out. ‘We are very pleased with the way we are working with City of Sydney stakeholders; they are very engaged and are a great team to work with.’

As part of the retrofit program, it was important to the City of Sydney that its buildings’ operations not be RETROFIT AUSTRALIA • VOLUME 1 NUMBER 1 2012 • X

| Profile: City of Sydney

A city mission

The City of Sydney’s existing buildings shape up for energy efficiency The City of Sydney is setting an exemplary standard for other Australian councils, commencing a major retrofit program in an impressive bid to make the city’s buildings more energy and water efficient. Gemma Peckham reports.

T

he City of Sydney has long held aspirations for its local government area to become more green, global and connected. The Sustainable Sydney 2030 plan sets out council’s aim to create for its residents a place where the environment matters, the economy thrives, art and culture are encouraged and supported, and people feel at home.

In establishing its priorities, the City spoke to its residents about their visions for the future of Sydney, and a staggering 97 per cent of people expressed a desire for council to address global warming.

Consequently, the predominant

20 • retrofit australia • volume 1 number 1 2012

theme of the 2030 vision is for a green city.

Lord Mayor of Sydney, Clover Moore MP, says: ‘Just as the industrial revolution transformed the world in the 19th century, a new green revolution is set to transform the 21st century. As a progressive and forward-looking city, we need to be ready for the transition to a new green economy with new values and priorities.

‘With sustainability as a central focus, the 2030 vision addresses global warming through the three big levers of building emissions, transport and energy [generation].

‘As the biggest emitters of greenhouse gases, cities are also the source of the biggest savings, and the key to achieving post-Kyoto emission reduction targets.’

A major target of Sustainable Sydney 2030 is to reduce carbon emissions by 70 per cent, compared to 2006 levels, by the year 2030 – one of the most ambitious carbon reduction targets in Australia. The City recognises the significant contribution of existing buildings to Australia’s greenhouse gas emissions, and outlines in objective 2.3(a) of the plan its intention to improve the environmental performance of its existing buildings through retrofitting.

In June 2009, the City of Sydney’s Property Division set a goal to reduce greenhouse gas emissions from the city’s property portfolio by 48 per cent by 2012. After implementing small energy efficiency measures that led to an 18.1 per cent reduction in emissions in 2010–11, it was decided

Profile: City of Sydney |

The Sydney Town Hall is just one of many City of Sydney building retrofits

Retrofitting our buildings with energy and water efficiency technologies will cut our costs, and deliver almost triple the reduction in the City’s carbon emissions – from 6.8 to 19.9 per cent that a larger-scale project was needed if the 48 per cent reduction was to be achieved, and that a comprehensive work schedule was required across the city’s portfolio.

As such, the City of Sydney has implemented a program to overhaul its 47 major energy and water consuming properties to make them more efficient. This two-year program of works is intended to save the city more than $1 million per year on bills through the further reduction of carbon emissions.

Cr Moore says, ‘Retrofitting our buildings with energy and water efficiency technologies will cut our costs, and deliver almost triple the reduction in the City’s carbon emissions – from 6.8 to 19.9 per cent. Our approach is 322503A RHP_Magnetite | 1818.indd 1

7/31/12 10:39 AM

retrofit australia • volume 1 number 1 2012 • 21

| Profile: City of Sydney

Examples of measures used during retrofits: Lighting controls Many buildings burn energy while there’s no-one around to use it. Lighting controls work on occupancy sensors, ensuring that the lights are only on when someone is using the space.

Building energy management system optimisation This usually involves enabling

optimal starting and stopping times for heating and cooling systems based on occupant comfort conditions.

Water amenities refurbishment This can include water flow control valves on taps, water saving aerators and nozzles, cistern modifiers to reduce water used per flush, and waterless urinals.

will be carried out independently of the rollout of cogeneration and trigeneration energy system installations, which are part of a separate tender (see breakout box on page 23).

The tender also specified that the retrofit should achieve, by 2012– 13, minimum reductions of: • energy consumption by 20 per cent • water consumption by 20 per cent • greenhouse gas or CO2e emissions by 23 per cent.

The tender provided historical energy and water consumption details of the buildings that were to be retrofitted, and invited submissions for energy and water efficiency retrofit technologies.

A consortium comprising Origin Energy Retail Pty Ltd and Ecosave Pty Ltd was approved to furnish the program of works, with the requirement that energy and water reductions be guaranteed by the contractor. These guarantees will be assessed by an independent certifier appointed by the council on completion of the works, and the consortium is bound to its predicted emissions savings by a 10 per cent performance guarantee bond.

Customs House, Sydney

to show by doing – we’re showing you can cut bottom-line costs and seriously reduce your impact on the environment. It’s a win-win.’

The buildings that have been targeted for the retrofit are the major users of energy and water in the City of Sydney’s portfolio, and include Town Hall House, the Ian Thorpe Aquatic Centre, Customs House, Sydney Town Hall and many more, including libraries, pavilions and depots.

22 • retrofit australia • volume 1 number 1 2012

A tender for the works was put forward by the City of Sydney, suggesting a number of retrofit measures to implement in these buildings as a means of reducing energy and/or water consumption.

These include energy efficient lighting retrofits, LED lighting, building energy management systems, insulation, double glazing, waterless urinals, water recycling and recovery systems, and water flow controls. These retrofit measures

During the retrofit project, over 400 measurement and verification processes will be used to assess the actual results of the implementation of retrofit features in each building, and these results will then be compared and collated. This will be an ongoing process, using utility metering data, existing data and new sub-metering data. Monthly reviews of the collected data will be undertaken by the contractor to ensure that the project is on track to deliver the promised outcomes.

Profile: City of Sydney |

Ian Thorpe Aquatic Centre, Ultimo

Online tracking systems will be available to the City via a webbased data tracking system, and at the end of the contract period, a final actual savings report will be produced, summarising savings and achievements.

It’s a lot of work, but it’s work that the City and its contractors are happy to undertake.

Preliminary testing indicates that to date, of the projects completed,

all have either achieved or exceeded their expected increase in efficiency.

For example, the estimated energy saving for the Haymarket Library was forecast at 49 megawatt hours per annum. The project at this property has now been completed, and Ecosave tells Retrofit Australia that the library’s energy emissions reduction has exceeded its target by five megawatt hours per annum, achieving a reduction of 54 megawatt hours yearly. Similarly, the Epsom

The City of Sydney’s move to Trigeneration Cogent, a subsidiary of Origin Energy, is currently in negotiations to undertake the City’s trigeneration project. The City of Sydney is largely dependent on coal-fired electricity production, which produces a great deal of energy waste and accounts for 80 per cent of the City’s carbon emissions.

Trigeneration systems comprise natural or renewable gas engines that produce low-carbon electricity, heating and airconditioning. Currently there are a number of buildings in central Sydney with single trigeneration

plants installed, but the city intends to build and operate a trigeneration energy network, which will greatly increase the City’s energy efficiency.

A number of the City of Sydney’s buildings will be connected to this trigeneration energy network, marking the first ever precinct sale in Australia. Although the trigeneration project is not part of the retrofit tender that was awarded to Origin and Ecosave, it will greatly increase the city’s chances of reaching its emissions reduction target of 70 per cent by 2030.

Road Depot has saved an additional 31 megawatt hours over what was predicted (the target was 207 megawatt hours per annum, and the measured savings are 238 megawatt hours per year), and Kings Cross Car Park and Alexander Child Care have also exceeded their goals. Many projects are not yet completed, but are well on track to meeting their targets. Final energy savings will be confirmed by the City of Sydney over the next 12 months.

The retrofit project across the council’s buildings is expected to take two years from start to finish, with a payback period of between seven and eight years, which the City considers to be a reasonable timeframe.

The City of Sydney is establishing a reputation as an eco city, and is taking steps in the right direction to achieve its energy efficiency goals. The question is whether other cities will take note and follow this example. How this will affect the nation’s carbon emissions as a whole is yet to be revealed, but based on the way things are going, it’s a pretty impressive start

retrofit australia • volume 1 number 1 2012 • 23

||Profile: Profile:City Cityof ofSydney Sydney

The good, the bad and the ugly of energy efficiency The good

T

oday energy efficiency seems to be the golden phrase on everyone’s lips. People are talking about how ‘good’ it is and the benefits it provides to society, like reduced costs to networks and fewer green house gas emissions.

Across Australia, governments are aiming to encourage uptake by providing financial incentives, like the New South Wales and Victorian Governments, which have implemented white certificate schemes, and the federal government’s energy efficiency grants and tax incentives.

Organisations such as Low Carbon Australia and the Clean Energy Finance Corporation provide financing options for these projects in addition to local governments’ ‘Environmental Upgrade’ programs, which can also help finance a project.

All of these incentives and financing options, combined with rising energy costs and the desire to be more environmentally sustainable, mean energy efficiency upgrades now make better financial sense than they have in past years.

However, like many ‘good’ things, there can be a bad and at times even an ugly side when it comes to implementing energy efficiency measures. As a customer, having an awareness of the possible pitfalls can help minimise risk and ensure that your business experiences the positive reasons and benefits of choosing to implement energy efficiency measures.

The bad Unfortunately, not all companies that provide energy efficiency solutions have an interest in maintaining a long-term relationship 24••RETROFIT retrofitAUSTRALIA australia••VOLUME volume11NUMBER number112012 2012 X

with customers and ensuring that the work done will last. Many companies offer energy savings guarantees associated with upgrades, but do not provide customers with any further service once the implementation has been completed. A guarantee is only as good as the measures that verify it and the follow-up that exists, so if a well-defined process for postimplementation review does not form part of the service provided, customers can be left worse off.

Recently, one of our engineers performed an assessment at a commercial building that had recently implemented lighting upgrade that was intended to save energy. In talking with the facilities manager, the engineer discovered that the new energy efficient lights had a failure rate of over 60 per cent and it was only about 18 months since the new lights had been installed! This significantly eroded the anticipated savings the upgrade was supposed to deliver, in addition to creating a considerable burden on the facility manager who had to constantly change lights that were prematurely failing. Situations like these often discourage future projects and detract from the obvious potential benefits that can be achieved.

It is important to ensure that your business implements an energy efficiency project with a reliable installer who will use quality products and is interested in maintaining a long-term relationship, rather than simply choosing the lowest-cost option, which may turn out to be unreliable and far more costly than ever anticipated.

The ugly In recent years, there has been a significant increase in product

‘It is important to ensure that your business implements an energy efficiency project with a reliable installer who will use quality products and is interested in maintaining a long term relationship’ manufacturers focusing on providing energy efficiency products. Whilst this focus on specific products can result in better solutions for the suppliers, it may not result in the best solutions for customers.

Can you imagine fitting a square block into a round hole? Well, that is exactly what one lighting manufacturer tried to do when it advised that its round fitting was the best solution for a square hole in the roof of a building! In this instance, the manufacturer was focused on selling a specific product, rather than evaluating what lighting solution would work best at the site. Had the customer proceeded with the proposed solution, they may have found that it not only looked ‘ugly’, but also that the lighting provided a sub-par result (as it was specifically meant for a different application).

Profile: City of Sydney |

With so many options and considerations when it comes to energy efficiency, it should provide comfort to know that there are reliable experts you can turn to, ensuring your business gets the best results. Outsourcing energy efficiency upgrades to a reliable partner who intends to go through the process with you from beginning to end is a good way to minimise the risks. It gives your business the ability to leverage the expertise of energy efficiency consultants and project managers, and allows it to take advantage of the relationships and associated buying power such experts often have with reputable and proven manufacturers. You may even find a few that will also help your business identify funding options, such as the government schemes or low-cost loans that it may be eligible for.

‘With so many options and considerations when it comes to energy efficiency, it should provide comfort to know that there are reliable experts you can turn to, ensuring your business gets the best results’

Right now, there seems to be the perfect storm to create a golden age of energy efficiency. Various factors are coming together to make projects that previously would have had seven- to 10-year paybacks look financially viable. However, like any trend, there are always risks. Energy efficiency, while not a new concept or field, has been reinvigorated by all the new incentives, and from that there has been a swell in the number of suppliers and experts in the field.

Jennifer has had an extensive career in the power utility industry spanning across the United States and Australia, including many

Jennifer’s bio

aspects of the energy delivery system including retail, distribution network design, and power plant engineering (including nuclear, coal, gas, utility scale solar and both large and low head hydro). She has worked most of her career in the energy efficiency space, focusing on industrial processes and how they can be improved from both an energy and emissions perspective. Jennifer has also worked as a university researcher in fuel-cell catalyst development and has a strong understanding of the realistic technological state of many renewable and alternative energy options. At Origin, she works with businesses to help them understand how they can implement energy efficiency and emissions reduction plans, better manage energy use and understand cultural change around energy efficiency. Jennifer has a Bachelor of Science and Engineering in Bioengineering and is a member of the American Society of Mechanical Engineers, and Engineers Australia.

Your business needs to be aware of the ‘bad’ and the ‘ugly’ side of energy efficiency, but should know that it doesn’t have to go it alone.

There are so many opportunities for achieving energy efficiency and so many benefits that can result from it.

Your business just needs to take the time to find the right people to help it achieve the best possible results.

retrofit RETROFITaustralia AUSTRALIA••volume VOLUME11number NUMBER112012 2012••25 Y

||Energy EnergyEfficiency efficiency

Innovative, environmentally sustainable solutions Urban Energy Australasia is a wholly Australian-owned company, based in Sydney. We were formed to meet a segment that wasn’t being catered for in the way the market requires.

W

e are the market leaders in our field and specialise in providing our clients with engineered solutions that are both innovative and environmentally possible.

Urban energy is currently undertaking the largest Trigeneration installation in Australia

Urban’s principal engineering discipline is mechanical services; however, over the years this has expanded to include:

This project is a 20-year BOOM (build own operate, and maintain), where Urban will provide all the electrical and thermal requirements for Qantas at Sydney airport.

• environmentally sustainable designs

The client is looking at this project from a number of levels: reduction of operation costs, guaranteed supply of services and the reduction of carbon that will therefore enable them to be more competitive in an ever-increasing demanding market.

• electrical, hydraulic and acoustic installation • project management • 24/7 monitoring and extended maintenance agreements.

Our reputation has been built through integrating stateof-the-art technologies into designs and working with our clients to gain a clear understanding of their requirements.

Our aim is to provide clients with the best products to achieve the desired outcomes whilst delivering the most innovative and environmentally sustainable solutions. We apply this philosophy with all our clients and the extensive cross-section of products and services we deliver. This is demonstrated in all the projects that we undertake.

Urban energy project capabilities include: • hospitals and medical institutions • educational facilities • commercial office buildings • large residential developments • data centres • aquatic centres • heritage-listed buildings.

Our staff work closely with accredited consultants to supply the NABERS ratings for the built environment as administered by the Department of Environment and Climate Change (DECC).

We strive to achieve the much sought-after Five Star Green Star rating, which sets the benchmark for ecologically sustainable design and environmental performance for commercial buildings in Australia.

We conduct comprehensive modelling during the design phase to ensure that required performance parameters can be met.

26••RETROFIT retrofitAUSTRALIA australia••VOLUME volume11NUMBER number112012 2012 X

This is to provide 12.6 megawatts of electrical power to Qantas’s catering and jet base corporate centre and T3.

By Qantas entering into a BOOM program, it has been able to achieve its objectives in decreasing rising energy costs and being able to reduce its carbon tax liabilities without having to have working capital committed to such infrastructure. This again gives the client the flexibility to be able to look at the overall operations to see how they can be more cost effective in generating energy and thermal energy required.

Urban energy clients are: • Department of Infrastructure Planning and Natural Resources • New South Wales Department of Public Works • Sydney West area Health Services • CSIRO • Bovis Lend Lease • BUPA • Brookfield Multiplex • Ausgrid • Qantas.

Alternative Energy Pool Heating

AQUATIC CENTRE PACKAGES • Reduce pool heating costs by up to 70% • Payback periods from 2 years • High Efficiencies up to 93% We are a complete design & construct company offering true plug & play alternative energy solutions.

Our experienced install teams operate throughout Australasia. Speak to our engineering department for a free energy audit and custom solution to your energy requirements.

GAS FIRED CO-GENERATION SUMMARY • Generate electricity for heat pumps, lighting & pool services • Recover engine waste heat into pool • Eliminate pool heating electricity costs • Reduce pool heating gas consumption by up to 50% • Upgrade to Tri-generation package to facilitate Air conditioning

Urban Energy Australasia Pty Ltd 1/10 Anella Avenue Castle Hill NSW 2154 Ph: 1300 66 99 81 Fax: (02) 8850 6344 sales@urbanenergy.com.au www.urbanenergy.com.au

| Energy Efficiency

Retrofitting cogeneration

By Toby Roxburgh, sector leader district energy at AECOM, on behalf of the Energy Efficiency Council.

Retrofitting is a key part of making buildings energy efficient. This article concentrates on the considerations for retrofitting cogeneration (sometimes called combined heating and power, or CHP) into an existing building.

Cogeneration requires a number of factors to be optimised, and it is important to make sure that it is planned in a sustainable way. I will by start by introducing cogeneration, then look at the wider picture of sustainable energy, before getting to the key things to consider and some basic dos and don’ts when you are looking to retrofit cogeneration in your building.

28 • retrofit australia • volume 1 number 1 2012

What is cogeneration?

C

ogeneration (and trigeneration) has had a good deal of publicity in the last few years, whether it’s been implemented for a single building or multiple buildings – like the City of Sydney’s ‘green transformers’, which aims to connect multiple buildings with hot water and electricity, like many plants in Europe and the United States.

‘Cogeneration’ means generating together/jointly, and usually refers to using electricity and waste heat that is generated in the process of burning fuel (typically natural gas) to heat or cool spaces, or provide hot water for domestic use. Trigeneration (a subset of cogeneration) is three types of joint generation: usually electricity generation, waste heat and cooling (by passing the waste heat through an absorption chiller and, in simple terms, sucking heat out of water to create colder or chilled water).

Typically, a cogeneration plant is a gas engine (initial varieties were similar to a diesel truck engine, but they tend to be much more sophisticated now) with microturbine options for small buildings, and gas turbines for larger or industrial sites.

Natural gas-fuelled fuel cell technology is still expensive due to low production numbers, but is an option for individual dwellings (BlueGen). Larger units are typically three times the price of a comparable natural gas engine cogeneration unit. A key advantage of fuel cells is that there are no exhaust nitrogen oxide (NOx) and sulphur oxide (SOx) emissions that can potentially cause city smog. Engines are now much cleaner than in the past, and if required can have emissions scrubbing (like your car) to remove pollutants. This usually requires a constant supply of lime, which can reduce the financial viability of projects. It is best to seek out specialist advice in this area. Gas engines now typically lower pollutant emission levels for a small efficiency drop, in line with European emission requirements.

What are the benefits?

Cogeneration is about making electricity generation as efficient as possible. ‘Waste heat’ from a coal power station is not typically harnessed, but with a gas engine on site, this waste heat can be captured and used. Overall, this provides reduced fuel requirements and, combined with a switch to a cleaner fuel (gas instead of coal), can

Energy Efficiency |

halve the carbon emissions of your electricity. Benefits to your building include improving your NABERS rating (and to a lesser degree your Green Star rating), reducing the demand for more electricity networks (that have pushed up electricity bills significantly recently), and reducing your yearly and peak electricity bill costs. It can also spread your electricity cost risk to a shared gas and electricity cost risk. One example is the energy network providing incentives for a local generation unit so that they can delay network upgrades in your area.

The downside is that cogeneration can be a large investment. So is it worth it for your site? Well, the key thing to remember is that this depends on your site and your conditions, so it needs to be carefully considered.

What are the main considerations?

The main considerations when thinking about a cogeneration retrofit include space, whole-of-life costs, and energy usage.

Government grants and loans are lowering the investment needs for cogeneration, and some suppliers will install the plant for you (known as Build Own Operate Transfer or Maintain (BOOT and BOOM) schemes) as long as you sign up

Planning then leads into energy efficiency, which is typically the cheapest and most effective method for reducing energy consumption, by not using it in the first place to take the power, heating and cooling from them at a discount to your current energy costs. The main consideration is a constant yearly demand for electricity and either heating (domestic hot water and space), cooling, or both.

How should you plan the project?

For sustainable energy use, it is important to apply efficiency throughout the whole process. Five key steps are shown in Figure 1 – passing through efficiency at each stage: space planning, using less energy, producing energy efficiently, using as few finite resources as possible, and using as little infrastructure as possible.

The first stage is to plan efficiently and optimise space, and hence usage. Zoning, and determining where the energy is distributed in the building and how, and who uses it (for example common or

tenant) can make a large difference.

The system may not be set up to distribute building-created energy easily. For example, cogeneration energy may only be suitable for base-building energy usage, and this may reduce the size of plant that you are able to retrofit. Planning then leads into energy efficiency, which is typically the cheapest and most effective method for reducing energy consumption, by not using it in the first place. This can have a significant impact on carbon emissions and operational costs. It is crucial to address these initial two parts first, as cogeneration is sensitive to energy load, reduction in building occupancy, space usage (for example office or retail), and the overall energy requirements for the building.

Renewables installation and peak demand reduction measures can also affect the cogeneration plant sizing.

If, for example, you implement an energy efficiency program after installing cogeneration, you may find that there is not enough load to operate the cogeneration unit, and it does not run for enough hours to provide the energy savings and cost savings that you were expecting.

Cogeneration considerations The first thing that needs to be clear for a cogeneration plant is space availability. Cogeneration Figure 1 – Sustainable energy planning process

retrofit australia • volume 1 number 1 2012 • 29

| Energy Efficiency

needs more space for plant, pumps and cooling tower usage. Even if used for cooling, the heat from the building and the generation needs to be rejected to atmosphere. If energy efficiency measures have reduced the building cooling load (for example by upgrading the façade), then perhaps your existing cooling towers will be sufficient; however, it is a good idea to get this checked by a mechanical engineer, as cogeneration systems can require 1.4 times normal cooling tower size requirements.

In terms of plant room equipment, a gas engine is typically larger than a diesel standby generator, and an absorption chiller is also larger and heavier than an electric chiller.

A large 2.25-megawatt cogeneration installation may need 540 square metres for the switchboards, multiple generators (three), an absorption chiller, control room, pumps, fans and pipework. A small 50-kilowatt cogeneration unit, however, can be under 1.5 metres wide and under 3.5 metres long, so solutions can typically be found but may require some ingenuity.

If you do need power generation for increased reliability, bear in mind that gas engines need to be off for maintenance on average at least two weeks per year (usually about one week in one go, but if you need a new part this can take more time, just like your car service) with regular oil changes and filter changes, depending on run hours. Also, fiveyearly and 10-yearly services are needed, and are longer and more costly. This means that the electricity grid will more than likely be a more reliable energy source, and you may need to retain most – if not all – of your existing plant. Diesel generators are still likely to be needed, as they

30 • retrofit australia • volume 1 number 1 2012

respond faster and quicker than a gas engine. You can transfer load from a diesel engine to a gas engine for long power outages, but it is hard to remove the diesel generator without losing reliability or requiring an excessively large uninterruptable power system (UPS).

Sizing the plant is probably the most difficult part of the design, with the following three items to be closely matched:

• implement energy efficiency measures first • allow for cooling tower or dry cooler space increase requirements • start the electricity generation connection negotiation process as soon as possible (as this can take a long time and can be costly)

• heating requirement (daily variation and yearly variation)

• engage a specialist to undertake a feasibility study including whole-of-life assessments to see if cogeneration stacks up financially

• cooling requirement (daily variation and yearly variation)

• consider all services and architectural requirements.

• power usage (daily variation and yearly variation).

Don’t

Each of the above options needs to be considered and usually modelled. A gas engine does not perform very well below 40 per cent of the peak capacity, which can lead to some cogeneration units never operating due to excessive maintenance and operational costs.

Sizing on the smallest base energy constant load requirement (for example, base building electricity usage or the yearly domestic hot water demand) can be the safest option, but can lose some of the benefits of a larger system. Operating only during peak electricity cost periods for around half the year can be an effective option. If you are considering trigeneration, then you also need to take into account that reduced electric chiller usage will reduce the electricity demand.

There are a few typical dos and don’ts summarised below.

Do • consider the heating, cooling and power requirements

• look at cogeneration without being clear on the big picture • oversize the unit • forget a maintenance contract • assume you can remove existing plant/grid connections • forget that the plant will need a flue exhaust (typically to the roof) • leave gaps in responsibility (as the plant interfaces with hydraulics, fire, HVAC, electrical, architectural and planning in a larger way than many other projects).

Overall, cogeneration can be a fantastic retrofitting option for your building, but it does take some care to get it correct and operating in the way that it is intended to.

Energy Efficiency |

| Energy Efficiency

Greening up 76 Berry Street through trigeneration

I

n late 2011, Bennett Clayton installed their first lean-burn low-emission trigeneration multiengine system into 76 Berry St, North Sydney. Bennett Clayton was chosen because of their unique capabilities in engine operational efficiency and low environment impact.

This building was the first existing commercial office building to commit to a 6 star NABERS Energy rating in Australia, and today utilises five 100-kilowatt Bennett Clayton natural gas fuelled engines.

The building was constructed in 1986, and having undertaken the retrofit and obtained the benefits provided by the Bennett Clayton engines, is predicted to be the lowestemission office building in Australia in 2012.

The unique multi-engine design, combined with the responsive variable load engines, allows the building to operate at all times on the trigen system where loads exceed 20 kilowatts. Through this design, Bennett Clayton has made it possible for the building to obtain the lowest emission profile possible.

Bennett Clayton engines Specialising in the development and implementation of alternative fuel conversions for existing diesel engines, Bennett Clayton’s patented

engine technology is delivering leanburn low-emission engines for a variety of applications.

Bennett Clayton engines are uniquely adaptable for alternative fuels and can be modified for fuels including LPG, Natural Gas, bioethanol, bio-methanol, E85, Syngas or seam gas.

Leading environmental design The generators display exceptional fuel efficiency and emission results, very low noise and vibration levels, are simple to maintain, and are made here in Australia, having been developed from the rugged, Bennett Clayton agricultural LPG motor.

Adapting existing capabilities to new markets With a history in performance cars and motorcycles, John Bennett spent a number of years in Brazil in the 1980s developing commercial heavy-duty ethanol engines. Teaming

up with Marcus Clayton, an RAAF trained electronics engineer, they were able to convert a range of engine applications, such as in irrigation farm pumps, truck and bus conversions to LPG, and finally as a natural gas conversion for commercial building trigeneration systems.

Derived from our proven agricultural design, the Bennett Clayton generators offer: • • • • •

A Unique Trigeneration Solution

The Bennett Clayton multiple generation system offers total flexibility when designing and installing trigeneration.

X • RETROFIT AUSTRALIA • VOLUME 1 NUMBER 1 2012

•

World-class efficiency and emissions profile Seamless 20KW- 400KW efficient power delivery (continuous) 20 per cent overload capacity (intermittent) Compact, fits in goods elevator Simple maintenance, cost effective multi fuel capable, including natural gas, LPG, zero carbon potential (using bio-methanol, ethanol, syngas) Made in Australia

info@bennettclayton.com.au www.bennettclayton.com.au retrofit australia • volume 1 number 1 2012 • 31

||Energy EnergyEfficiency efficiency

Retrofitting hot water for energy efficiency and safety

W

Solar hot water

hen reviewing your hot water system for energy reduction, consideration needs to be given to not only the amount of energy used for human consumption and the efficiency of the heating plant. The amount of energy consumed in maintaining the ring main hot, the heat loss from other sources and the temperature of the hot water supplied should also be considered for both energy savings and customer safety.

4.50

Electric Continuous

Nat Gas

Whilst recovering quicker than solar, heat pumps Propane are Heatstill Pump Nat Gas

Electric Continuous

The graph shows relative running costs and CO2 emissions for various fuel types, heat pump and solar combinations.

Solar/Elec Continuous Continuous

of Water Heating Plant Solar/NGType Solar/Prop Heat Pump Solar/Elec Continuous Continuous Running costs relative to HP Type of Water Heating Plant

Propane

Running costs relative to HP

CO 2 relative to HP

3.00 2.50 2.00 1.50 1.00 0.50 0.00 Propane

Lowering running costs

Heat pumps are particularly useful when replacing resistance electric water heaters, where the existing three phase infrastructure can be used to power the heat pump.

3.50

Nat Gas

It should be noted that commercial heat pump systems are not eligible to generate STCs.

Heat pump hot water

4.00

Electric Continuous

Heat pumps generate cold air as a by-product of heating water and so adequate ventilation must be allowed for if installed within a plant room. This cold air can be used to effect as needed. By the same token, locating the heat pump near any heat dissipating equipment will be beneficial to the heat pump performance and efficiency.

In locations prone to overnight frost, indirect and drain back solar systems that provide inherent freeze protection should be installed.

3.00

0.00

Heat pumps generate noise and whilst there is plenty of other equipment in a hotel or motel that generates noise, their location away from accommodation is recommended.

Depending on building vintage and design, the heat loss from the central ring main can be relatively high as a percentage of the total energy consumption of hot water.

Rheem now offers solar systems that can use the available solar energy in preference to the gas or electric boost plant to maintain the building ring main at temperature, maximising the use of solar energy and reducing total running costs.

Two methods available to reduce domestic hot water energy consumption are centralised solar and heat pump water heaters. Commercial solar systems with in-series gas or electric boosters can supply as much as 55–80 per cent of the hot water needs depending on geographic 4.50 location. A centralised heat pump 4.50 plant produces up to 3.5 times the 4.00 energy as they use in generating hot 4.00 3.50 water. In other words, they are up to 3.50 350 per cent efficient.

3.00 To take advantage of solar and2.50 heat pump, the energy must be stored 2.50 2.00 for use at a later stage and space must 2.00 be available to house the required1.50 storage capacity. How much storage is 1.50 1.00 required is dependent on the amount of 1.00 0.50be energy savings required, which will governed as much by available space 0.50 0.00 for plant as budget constraints.

considered a slow recovery water heater, and for this reason sufficient storage must be made available to meet any peak demand requirements.

Solar installations are eligible to generate small scale technology certificates (STC’s), which helps to reduce plant capital cost. Consider the amount of available unshaded roof space with a northern aspect and plant space for storage tanks. Review the shading that neighbouring buildings will provide during different seasons.

Heat Pump Solar/Elec Continuous Continuous

Solar/NG

Solar/Prop

Type of Water Heating Plant costs relative to HP 32••RETROFIT retrofitAUSTRALIA australia•Running •VOLUME volume number112012 2012 X 11NUMBER

CO 2 relative to HP

Where hot water systems rely on LPG or electricity as the primary source of energy, both solar and heat pump options have the potential to offer significant running cost savings.

Solar/NG

Solar/Prop

Operating the system at excessive temperatures increases the rate of CO relative to HP heat loss. Water heating equipment should be turned down to a minimum of 60 degrees Celsius to maximise efficiency and comply with regulations.

Alternatively, a centralised warm water system such as Rheem Guardian, which circulates tempered water at 50 degrees Celsius can be added to existing water heating plant to reduce energy losses even further whilst providing scald protection for guests.

2

For more information on Rheem commercial solar, heat pump and Guardian warm water systems call 132 552 to speak with a Technical Sales Specialist.

Rheem Heat Store® efficient in space, energy and time...

NEW COMMERCIAL SOLAR

Rheem Heat Store® Commercial Solar Large capacity storage tanks Reduces plant space footprint 4 tank sizes from 1,500 to 5,000L High efficiency selective surface collectors Fully frost protected Reduces installation time BMS connectivity

* Available in all states except South Australia ® Registered trademark of Rheem Australia Pty Ltd

When high efficiency is demanded, look no further than Rheem Heat Store®.

The large capacity tank system operates on the Drain Back principle and uses Rheem’s high performance BT collector, simultaneously optimising plant space and roof footprint whilst providing freeze protection, and improving heat retention.

Couple with Heat Pump boost or Solar Secondary Recirculation to maximise the solar potential.

For more information about Heat Store call 132 552

FLAME_RHEE138-07/12

• • • • • • •

| Energy Efficiency

Energy efficient infrastructure

BY Antony Sprigg, CEO, Australian Green Infrastructure Council

We need energy to deliver and operate our infrastructure; infrastructure that facilitates our growing energy and resources sectors, infrastructure that facilitates regional and urban connectivity and socio-economic prosperity, and critical services infrastructure. Energy comes at a cost – direct bottom-line costs, social costs and environmental costs. This is a typical sustainable development conundrum. Therefore, energy is part of a broader infrastructure sustainability paradigm.

34 • retrofit australia • volume 1 number 1 2012

T

his article provides an industry update on the Infrastructure Sustainability (IS) rating scheme: what it comprises, which aspects relate to energy efficiency assessment and opportunities, and some insights as to where in the infrastructure asset life cycle energy efficiency should be considered, particularly in the context of current and future energy efficiency opportunities, regulations and initiatives.

The Australian Green Infrastructure Council (AGIC) has developed Australia’s first national infrastructure sustainability rating scheme. The scheme was launched by the Federal Minister for Infrastructure and Transport, Anthony Albanese, in Canberra on 29 February 2012, and is designed

to drive innovation, contribute to risk reduction and validate industry achievements through independent certification.

The IS rating scheme comprises the IS rating tool, a formal assessment process, independent verification, rating certification and an education program. There are 15 categories across six themes. The coverage is broad, ranging from environmental issues such as energy and carbon, and social issues such as stakeholder participation, to management issues such as procurement and purchasing. The rating tool covers the infrastructure life cycle, from project design to operating asset. Three rating types (stages) are offered:

Energy Efficiency |

• a ‘Design’ rating, awarded at the end of the design process, which assesses the sustainability of the design itself and the planning for construction. This is an interim rating and must be replaced by an ‘As Built’ rating after construction • an ‘As Built’ rating, which assesses the design, the measured sustainability performance during construction, and what is built into the infrastructure asset.

This rating may be awarded after practical completion of the project • an ‘Operation’ rating, based on the measured sustainability performance of the operating infrastructure asset.

Both new projects and existing infrastructure assets are eligible to apply for the Operation rating. This means it is ideal for existing assets, upgrades and retrofits as well as completely new developments.

The tool covers a wide range of infrastructure types, including transport, water and energy supply, and communication.

Projects and existing assets will be rated on a 100-point scale. Ratings are based on performance above business-as-usual practice. A rating in the range of 25–49 is deemed ‘good’ practice, 50–74 is ‘excellent’ practice and 75–100 is ‘leading’ practice.

The tool is designed to be practical; it uses industry language and it aligns to industry and government processes and requirements. The Technical Manual provides guidance, and AGIC provides support throughout the assessment process. An Excel-based scorecard provides the means to record the assessment and monitor progress.

AGIC’s scheme has been embraced by industry, and we are keen for governments and private developers across Australia to include it in infrastructure tenders to provide a common national framework for industry to use Some highlights of the tool: • The Procurement and Purchasing category has been structured around the guidance from the British Standard (BS 8903:2010), recognised as world’s best practice in sustainable procurement and applied to the sustainable London Olympics.

• Climate Change Adaptation is specifically addressed in its own category, recognising the importance of climate change risks to infrastructure with its inherent longevity.

• The Energy and Carbon category aligns with government requirements, such as Energy Efficiency Opportunities and National Greenhouse and Energy Reporting, thereby minimising the administrative burden for participants.

• A life cycle analysis-based materials calculator has been incorporated into the Materials category. It is simple yet advanced, using the latest Australian information from the Built Products Innovation Council Lifecycle Inventory.

• It aligns with the Green Star Communities Pilot tool in relevant

places – such as Ecology, and Urban and Landscape Design.

• It references the recently released Australian Urban Design Protocol developed by the Major Cities Unit of the Department of Infrastructure and Transport.

• The scheme has parallels with the CEEQUAL Rating Scheme used in the United Kingdom, which has been operating there since 2003 and has been applied to more than A$25 billion worth of projects, including the London Olympics.

AGIC’s scheme has been embraced by industry, and we are keen for governments and private developers across Australia to include it in infrastructure tenders to provide a common national framework for industry to use.

The scheme offers a number of benefits. It: • provides a common national language for sustainability in infrastructure • provides a vehicle for consistent application and evaluation of sustainability in tendering processes • helps in scoping whole-of-life sustainability risks for projects and

retrofit australia • volume 1 number 1 2012 • 35

| Energy Efficiency

assets, enabling smarter solutions that reduce risks and costs • fosters resource efficiency and waste reduction, reducing costs • fosters innovation and continuous improvement in the sustainability outcomes of infrastructure • builds an organisation’s credentials and reputation in its approach to sustainability in infrastructure.

Organisations can undertake a self-assessment of their projects or assets, which can be a useful internal exercise, but to promote a rating publicly, formal certification is required from AGIC. The tool has already been tested on a number of projects representing a range of infrastructure types, locations, phases and sizes.

The rating tool scorecard can be downloaded free of charge at www.agic.net.au.

The Energy and Carbon category The IS rating tool has an ‘Energy and Carbon’ category within the ‘Using Resources’ theme.

As there are no regulatory initiatives specifically requiring infrastructure projects or assets to report on their energy and greenhouse gas (GHG) emissions at the project or asset level, this category seeks to drive best practice beyond regulatory requirements.

36 • retrofit australia • volume 1 number 1 2012

For infrastructure, energy use and transport are responsible for more than 90 per cent of emissions, so it is particularly important to minimise the use of energy and promote the use of renewable energy. The category prioritises the avoidance of GHGs and minimising energy use through design, efficient operation and fuel substitution. It also recognises the use of GHG offsets.

* Efficiency – adopt efficient construction and operational practices to minimise the energy and resource use associated with necessary activities.

This category adopts the following principles:

* Offsetting – residual GHG emissions may be offset with credible offsets that comply with the National Carbon Offset Standard.

• Monitor and report on all energy use and GHG emissions at the project level – measure, verify and report on energy use, GHG emissions and management strategies at the project scale during all infrastructure life cycle stages.

• Comprehensively identify and evaluate opportunities – work collaboratively with stakeholders to understand sources of energy use and GHG emissions, and develop effective management processes as part of a process of continual improvement.

• Implement opportunities using the following hierarchy: * Avoidance – minimise the need for energy use and GHG emissions within the asset and associated systems through appropriate design; for example design out unnecessary activities that use energy or create GHG emissions.

* Substitution – to meet remaining energy needs, prioritise low-emission and renewable energy sources.

* Peak minimisation – minimise electricity drawn from transmission and distribution grids during times of peak system demand.

AGIC’s research has found an industry-wide lack of data on energy and GHG emissions at the project level, making performance benchmarking against similar assets impractical at this time.

Consequently, the credits within this category have a strong focus on energy and GHG management processes, and on improving the quality and availability of data on energy use and GHG at the project scale and across asset types, to support a shift towards performance benchmarking in later iterations of the tool.

Energy Efficiency |

There are three credits within the Energy and Carbon category: • Ene-1: Energy and carbon monitoring and reduction • Ene-2: Energy and carbon reduction opportunities • Ene-3: Renewable energy

Energy efficiency opportunities and infrastructure in the context of the EEO Act Energy efficiency is relevant to the ‘Ene-1’ and ‘Ene-2’ credits within the IS rating tool. Ene-1 rewards monitoring and minimising of energy use and GHG emissions across the infrastructure life cycle. Greater (Scope 1 and 2) GHG emission reductions (compared to a reference footprint) achieve higher scores for this credit. These reductions may come from all manner of activities.

The intent of this category is to minimise energy use and GHG emissions at all stages of the infrastructure life cycle. In pursuing this intent, the following actions are encouraged, listed in hierarchical order:

Energy efficiency is at the top of the list and is typically amongst the ‘lowest-hanging fruit’, although this is not always recognised amongst the hustle and bustle of infrastructure project delivery.

Ene-2 rewards identification and implementation of opportunities to reduce energy use and GHG emissions. This credit focuses on analysis of opportunities to reduce energy use and GHG emissions across the infrastructure life cycle.

Broader scope of analysis and greater commitment to implementation achieve higher scores for this credit.

No particular analysis method is specified, but the method does need to be documented and must comply with the new ISO 50001 International Standard for Energy Management.

The credit also references the guidance available in standards on energy audits, the EEO Assessment Handbook and the EEO Energy Savings Measurement Guide as practical resources.

To provide some assurance that opportunities will be taken up as actions during the construction and operation of the asset, they should be incorporated into management plans.

1. reducing energy use and GHGs through design (i.e. designing out the need for activities that use energy or generate GHG emissions)

The management plans should document:

2. undertaking any necessary activities as efficiently as possible (i.e. maximising energy efficiency)

• the process used to identify opportunities to reduce energy use and GHG emissions

3. where feasible, using renewable energy to replace non-renewable sources

• a list of all the opportunities identified (with explanations)

4. reducing GHG emissions using other low-emission sources (i.e. substituting natural gas for coalfired electricity) 5. offsetting remaining GHG emissions to the extent practicable.

AGIC commends and supports the recent development of the Options Paper ‘Extension of EEO Assessment to Greenfields and Major Expansions’ by the Department of Resources, Energy and Tourism.

The proposal responds to a current policy shortfall in Australia for the adequate promotion of energy efficient design in our energyintensive developments. There are many synergies between the AGIC IS rating scheme and the proposed EEO Assessment of Greenfields and Major Expansions.

In its submission on the paper, AGIC identified: • the need to consider constructionphase energy use in new projects as well as the operations phase to ensure a ‘whole-oflife’ approach is adopted. It should be recognised that some infrastructure projects actually involve more direct energy consumption during construction than during operation (for example, a viaduct may consume large quantities of energy for construction, but only small quantities for operation and maintenance, even over a 30-year or longer life span) • the benefits of promoting consideration of energy use by infrastructure users during the operations phase – not just energy use directly associated with the infrastructure asset.

• the process used to analyse and evaluate opportunities • commitments to implement particular opportunities during delivery and operation • explanations of why other identified opportunities were not taken up.

retrofit australia • volume 1 number 1 2012 • 37

||Energy EnergyEfficiency efficiency

Exergy Australia – energy efficiency retrofit experts

R

etrofitting buildings is a balancing act – there is old plant to replace and upgrade, existing plant to recommission, the building as a whole to control optimally – all while often working in a tenanted building. Exergy have been working with retrofitting for more than a decade and have achieved remarkable results both with individual buildings and with whole portfolios. Stand-out examples include: • Freshwater Place, Melbourne: Exergy led the retrocommissioning of this building, achieving a 41 per cent reduction in electricity, a 78 per cent reduction in gas and a 50 per cent reduction in CO2 emissions over an 18-month period, taking the building from 2.5 stars to 4.5 stars NABERS Energy Base Building.

• Colonial First State CPF Portfolio: Exergy have been working with Colonial First State Global Asset Management to raise the average rating of this portfolio of buildings from 2.6 stars in 2008 to 4.2 stars in 2012.

As retrofitting experts, Exergy understand how to prioritise between

38••RETROFIT retrofitAUSTRALIA australia••VOLUME volume11NUMBER number112012 2012 X

plant upgrade, plant refurbishment, plant recommissioning and simple improvements to achieve the most cost-effective outcome for each project. This knowledge is drawn from hundreds of projects across the office, retail, hotel, aged care, education and health sectors.

Exergy provides a full suite of services in relation to retrofitting, including: • project identification (e.g. energy efficiency upgrade plans).

We have vast experience in the development of detailed retrofitting plans designed to maximise energy efficiency within the financial constraints of the site and client • HVAC control. The operation of HVAC controls is fundamental to the efficiency and often the comfort and reliability of most buildings. Exergy have an unparalleled depth of understanding of the optimisation of HVAC controls, honed through application in a wide variety of building and HVAC system types • independent commissioning agent and commissioning management.

Poor commissioning is the

reason many projects – both new building and retrofit – fail to achieve energy efficiency performance targets. Exergy provide detailed and expert commissioning management services to ensure that our projects deliver • retrofit project management.

Conventional project management is all about time and money. For efficiency upgrades, there is a vital third element – results – which is too often the first casualty of traditional project management. Exergy offer boutique project management services that manage time and costs – and delivers efficiency outcomes • monitoring and verification. If you don’t measure it, you can’t manage it – and for efficiency upgrade projects it’s particularly important to measure to make sure that you get the results. We have specialist monitoring skills and staff to ensure that your project results stay on track.

So if you want to upgrade the energy efficiency of your building, call us on (02) 6257 7066 (Canberra), (02) 8065 1410 (Sydney) or (03) 9036 0677.

| Energy Efficiency

A financial solution: making it simple

By Scott Bocskay, Chief Executive Officer, Sustainable Melbourne Fund

A shift is occurring in Australian cities. The culmination of a multitude of factors, including global market movements and local and federal policy interventions, has led to one guiding principle: increases in productivity drive economic growth.

CQ Melbourne is part of Australia’s first privately funded environmental upgrade agreement

T

his theory holds true when we consider productivity at the macro level – city and nation states – and also at the micro level – individual buildings.

The plain truth of the commercial building market in Australia is that, on average, commercial buildings are very unproductive when considering the natural resources consumed to operate them. This source of inefficiency at the collective level can drive some very interesting outcomes at the national level that have positive implications for individual building owners and tenants, and pose some significant questions within the national utility markets.

40 • retrofit australia • volume 1 number 1 2012

At its heart, productivity – the art of doing more with less – is one of the most profitable actions business can undertake within a context of stagnant macro-economic (or microeconomic) growth. Productivity or efficiency gains go straight to the bottom line of a business. For example, a business that has a gross profit margin of 25 per cent needs to spend $3 to generate $1 of gross profit or $4 of revenue; however, if that same business saves $1, it then doesn’t need to spend $3 to generate the same outcome.

I have spoken to businesses large and small about the opportunity

of retrofitting, from chief financial officers to facilities managers and building occupants. Retrofitting always seems to be perceived as a confusing and diabolical problem, rather than a clear and present opportunity.

The 1200 Buildings program Seeing the opportunity of retrofit activity, the City of Melbourne has taken a leadership role in capturing the value of retrofits for their city, and understands that what’s valuable to the City, in the context of retrofitting, also delivers value to building owners and tenants. The 1200 Buildings program, which

Energy Efficiency |

The City provides information and guidance about how to retrofit, and gives building owners the tools, resources and access to affordable financing through the Environment Upgrade Finance mechanism advocates for commercial building owners to retrofit their properties to reduce energy consumption, is part of this leadership equation and helps the City deliver its bold goal of being carbon-neutral by 2020.

The City provides information and guidance about how to retrofit, and gives building owners the tools, resources and access to affordable financing through the environmental upgrade finance mechanism.

Fifty per cent of the municipality’s greenhouse gas emissions are generated by the commercial property sector. If 1200 commercial buildings improve their energy efficiency by approximately 38 per cent, 383,000 tonnes of greenhouse gas emissions will be saved each year, which is equivalent to 7.6 million black balloons. Perhaps most importantly to individual building owners within the municipality, it is estimated that approximately $2 billion of retrofit activity can be funded through capturing the inefficienct use of money currently spent on wasting energy and water.

The 1200 Buildings program was recently awarded the United Nations Association of Australia (UNAA) Local Government Award for the best specific environment initiative at their World Environment Day Awards dinner.

This is the second award the 1200 Buildings program has received this year. In March, the program was awarded the 2012 Visionary Award from Energy Efficiency Global in recognition of its energy efficiency leadership.

Traditional barriers to retrofitting Opportunity is often hidden amongst the problems presented when

considering retrofitting. It is human nature to put up barriers when considering retrofitting, because it seems like there is a lot of extra work for little gain. The types of problems that have traditionally prevented the accelerated uptake of energy and water efficiency measures and renewable energy solutions in existing buildings are well-known, and are often presented as the reason not to undertake activity.

These barriers include a lack of awareness of how to capture value, a perception of investment costs being too high, the split incentive – where building owners are not incentivised to invest in efficiency measures, as tenants pay the utility bills – and limited availability of capital to fund retrofits. The 1200 Buildings program aims to make these barriers manageable, and also to recognise some real barriers and offer solutions to address them.

Of all the problems, two real issues arose: access to capital (or intensive competition for limited capital), and the split incentive. To unlock the opportunity, a solution needed to be found.

Development of environmental upgrade finance Environmental upgrade finance was developed under the City of Melbourne’s 1200 Buildings program to enable building owners to seize the business opportunities that retrofitting presents.

The City of Melbourne worked with the Victorian Government to amend legislation to enable the City to unlock capital from capital providers in order to provide access to finance for retrofitting and, at the same time, enable both tenants and landlords to benefit for the first time from retrofitting their buildings.

Figure 1: The environmental upgrade finance mechanism

retrofit australia • volume 1 number 1 2012 • 41

| Energy Efficiency

The key to environmental upgrade finance is the new ability afforded to the council under the amendment to the City of Melbourne Act 2001 to levy a new form of statutory charge, called the environmental upgrade charge. This charge gives the city the ability, when working with a financier, to recover money advanced for environmental retrofit work as a statutory charge.

Similarly, this statutory charge acts as collateral for the financier, and offers enhanced security to lenders for retrofit projects. The reduced risk associated with the mechanism incentivises financiers to advance capital for environmental improvement works – where otherwise it may not have been

available – and under more attractive terms and tenures than currently available traditional forms of debt.

The availability of this money now presents the commercial building sector with an unprecedented opportunity to become more energy and water efficient.

How environmental upgrade finance works The mechanism allows Melbourne City Council, in partnership with Australian financial institutions, to enter into voluntary environmental upgrade agreements with building owners to finance environmental upgrades for non-residential buildings.

The City of Melbourne worked with the Victorian Government to amend legislation to enable the City to unlock capital from capital providers in order to provide access to finance for retrofitting...

Under an environmental upgrade agreement, funds advanced by the financier to a building owner for retrofitting are recovered by Council through a charge linked to rates collection – the environmental upgrade charge. Money received

by Council is then forwarded to the financier.

Sustainable Melbourne Fund (SMF) works as the third-party administrator to the environmental upgrade finance mechanism as part of the City’s 1200 Buildings program. The role of SMF is to accept and qualify projects that meet the requirements of the policy and legislation. SMF has developed a transparent assessment framework enabling applicants to the program to apply with high confidence that their project will be accepted, and therefore qualify, for funding. This ability to understand that your project will qualify for funding de-risks the investment decisions that are made at the outset of a project.

The process for application follows seven easy steps: • The building owner joins the City of Melbourne’s 1200 Buildings program and submits an application to Sustainable Melbourne Fund.

• Sustainable Melbourne Fund assesses the proposed environmental improvements for environmental upgrade finance eligibility.

• The building owner secures funding for retrofit works from an Australian financial institution.

• The City of Melbourne declares an environmental upgrade charge on the building.

The gardens of Kings Technology Park Precinct

42 • retrofit australia • volume 1 number 1 2012

Energy Efficiency |

King’s Technology Park Precinct will undergo a $3.2 million retrofit

• The financier advances the building owner the up-front costs for the retrofit.

• The building owner’s payments are collected through the Melbourne City Council rates system.

• The City of Melbourne forwards the collected charges to the financier.

Benefits to building owners and tenants Better-performing buildings deliver better economic returns.

Environmental upgrade finance is a tool to enable building owners and tenants to capture money that is currently being spent on energy and water – effectively, wasted money – and apply that money to service the environmental upgrade charges.

The added bonus is that the finance product created by National Australia Bank (NAB) that can be invested through the mechanism is a fixedinterest product, thereby enabling volatile costs (energy and water costs) to be replaced with low-risk fixed costs.

The fixed prices act as a hedge against the rising costs of occupancy of buildings, and therefore make tenancies more attractive to occupy.

Resource-efficient buildings save owners and tenants money through reduced utility costs, and there is mounting evidence that higher-rated buildings present increased appeal to buyers and tenants, and appreciate more in value.

The mechanism allows building owners to share the environmental upgrade charge with their tenants, which can unlock greater savings for both parties, capture the full benefits of a retrofit, and open up new building cash flows.

Sustainable Melbourne Fund Sustainable Melbourne Fund is a commercially oriented, independently managed unit trust that was established by Melbourne City Council in 2002 to progress sustainable development in greater Melbourne. Since its inception, Sustainable Melbourne Fund has established a track record of integrating energy efficiency, renewable energy and sustainability into the built environment to deliver improved commercial and environmental outcomes.

In addition to administering the environmental upgrade finance mechanism within the City of Melbourne’s 1200 Buildings program, Sustainable Melbourne Fund operates an investment program that provides loans of up to $500,000 for individual projects that deliver environmental and economic benefits. Through this program, Sustainable Melbourne Fund has invested $8.14 million into projects, delivering energy efficiency gains, renewable energy generation, water efficiency projects and resource recovery projects.

Current status Three environmental upgrade agreements have been signed in Melbourne for projects with a total value of $4.9 million. The retrofits aim to realise a total greenhouse gas emission saving of 5350 tonnes per year. The projects include installation of a trigeneration system, highefficiency chillers, cooling towers, lighting system upgrades, heating and air conditioning units and controls, occupancy sensors and double glazing.

retrofit australia • volume 1 number 1 2012 • 43

| Energy Efficiency

The buildings are representative of the majority of building stock in the municipality, and the retrofit works are also typical of projects likely to be undertaken in other similar buildings. For these reasons, they provide a useful example from which other building owners can learn.

Sustainable Melbourne Fund financed two of the first environmental upgrade agreements as a means of establishing the finance mechanism in the marketplace, in order to enable other lenders to participate in the mechanism and finance similar projects.

To that end, NAB partnered with Low Carbon Australia and Eureka Funds Management to finance the first privately financed environmental upgrade agreement at the end of 2011. This was a significant milestone in that a major bank had recognised the opportunity provided by the financial mechanism and advanced funds to a retrofit project.

The NAB has $60 million in funds available for environmental upgrade agreements throughout Australia.

More recently, the Victorian Government changed legislation to allow property trusts to gain access to finance for environmental upgrades, significantly increasing opportunities to retrofit buildings in Melbourne’s city centre. This amendment to the City of Melbourne Act now permits property trusts to enter into environmental upgrade agreements.

Through a minor wording change in the legislation, the full opportunity as identified through the 1200 Buildings program can be unlocked. While property trusts account for only 10 per cent of commercial building owners within the City of Melbourne, they hold 42 per cent of the city’s total lettable space.

In order to enable more projects to capitalise on the opportunity of environmental upgrade finance, Sustainable Melbourne Fund was project manager for the development 44 • retrofit australia • volume 1 number 1 2012

of an online tenant engagement tool that has been commissioned by the City of Melbourne in partnership with Low Carbon Australia. This is available online to allow building owners and tenants to evaluate and demonstrate the value of retrofits. It is a tool to enable a conversation that has been difficult to have in the past.

The opportunity that retrofitting commercial buildings has presented over the years can now be capitalised upon. The barriers have been

broken down and tools have been developed to facilitate activity.

To really unlock the opportunities of increased productivity and efficiency in commercial buildings within our cities, it is the role of every stakeholder within the space to overcome human nature and apply these tools to unlocking the opportunity that retrofitting our cities now presents.

Case study: 460 Collins Street 460 Collins Street is the first building to use environmental upgrade finance under the City of Melbourne’s 1200 Buildings Program to perform retrofit works with the aim of reducing energy use and lowering greenhouse gas emissions.

The building’s $400,000 retrofit includes the installation of an energy-efficient chiller unit and a building management system upgrade linked to improving the energy efficiency of the building.

These improvements will not only enable energy efficiency savings to be unlocked for a higherperforming base building and tenancies, but will also result in an abatement of approximately 170 tonnes of CO2-e per year.

The building is occupied by a branch of National Australia Bank (NAB) on the ground level, and

commercial office tenants on the levels above.

460 Collins Street is one of the first projects to sign up for an environmental upgrade agreement, and the building participated in the pilot process undertaken

by Sustainable Melbourne Fund to establish the finance mechanism in the marketplace.

The mechanism also provided a low-risk opportunity for Sustainable Melbourne Fund to invest in this type of energy efficiency project.

Being a smaller, privately owned building, 460 Collins Street is representative of the majority of building stock in the municipality, and the retrofit works are also typical of projects likely to be undertaken in other similar buildings. For these reasons, 460 Collins Street provides a great example from which other building owners can learn.

Performance and Rating |

Committing to green performance from the outset by the national Australian built environment rating system (NABERS)

Buildings with a high ‘green’ rating have become synonymous with quality.

T

here are strong incentives for developers and designers of new buildings and retrofits to have certainty that their buildings will achieve high NABERS ratings in operation, and to be able to promote the future performance of their buildings from the outset.

Recent studies have demonstrated that buildings with high NABERS ratings attract higher rents, lower vacancies and higher investment returns. The opposite is true of buildings with poor NABERS ratings or no rating, representing inefficient energy use.

The Property Council of Australia’s newly revised Guide to Office Building Quality has identified 5 star NABERS Energy and Green Star ratings as the benchmark for new premium-grade buildings.

Under the recent Commercial Building Disclosure scheme, NABERS Energy ratings, representing the energy efficiency of the building, must be disclosed to potential buyers or tenants of office space. This has

greatly increased the visibility and awareness of the ratings, and what they mean for owners and occupants.

While new buildings, and those undergoing major refurbishment, are initially exempt from this obligation, prospective tenants and buyers are looking for assurance that the building will achieve a high level of performance in the future.

What is NABERS? The NABERS rating scheme, a government initiative, provides a measure of the environmental performance of a building. Ratings are available for offices, hotels and shopping centres, and for a range of environmental impacts such as energy, water, waste and indoor environment. While the ratings are used voluntarily throughout the market, owners of office buildings of over 2000 square metres are now required to disclose an energy rating when sold or leased.

A high NABERS Energy rating of 5 or 6 indicates that a building has excellent energy efficiency, resulting in lower running costs and reduced greenhouse gas emissions compared to similar buildings in the marketplace. The rating is calculated using the actual energy consumption of a building over a 12-month period.

While this obviously means that a new or refurbished building cannot be rated until it has been in full operation for a year, the NABERS scheme has established Commitment Agreements to ensure that a building is designed and commissioned to achieve the desired rating outcome, and to provide the opportunity to

retrofit australia • volume 1 number 1 2012 • 45

| Performance and Rating

promote a building’s future rating from the outset of a development project.

How do I make sure that my new building project or refurbishment will make the grade?

A NABERS Energy Commitment Agreement is an agreement between NABERS and the building proponent to design, build and commission the premises to achieve a stated NABERS Energy star rating (must be 4 stars or more). The contract typically spans a number of years and remains in effect until the building has received its NABERS Energy rating, after 12 months of operation.

Commitment Agreements enable building proponents to promote the NABERS rating commitment from the outset, and, most importantly, they provide a process to achieve measurable operational performance results.

A NABERS Commitment Agreement engages the engineers, project managers and architects involved with the project throughout the design, construction and commissioning phases to continually review the project to meet the targets and maximise the environmental performance of the building.

The challenge of delivering the performance target is considerable, and good intentions at the design stage do not always translate into efficient performance in practice.

It is likely that the performance of a building will be measured and reported with NABERS during its lifetime. Meeting a Commitment Agreement ensures that a building will perform in operation, and also permits the developer to promote, with confidence, the future performance of the building.

46 • retrofit australia • volume 1 number 1 2012

Reducing future energy costs lowers base building costs over the lifetime of a building, increasing its value. In the current market of rising costs, a Commitment Agreement is a sensible marketing decision that can assist developers to establish a reputation as an ethical developer with the capability to deliver environmentally effective projects.

A NABERS Commitment Agreement can also assist with achieving a Green Star rating.

‘Energy’ is one of Green Star’s nine environmental impact categories. To achieve a Green Star – Office Design, Green Star – Office As Built or Green Star – Office Interiors rating, projects must provide an assessment of predicted energy performance, based on the NABERS Energy methodology.

Projects that have signed a NABERS Commitment Agreement are automatically eligible for points in the three Green Star office tools, and no further modelling is required.

They must provide either evidence of the star rating achieved, or the design review document from the independent NABERS Design Review Panel stating the simulated kilogram of carbon dioxide per square metre.

Points will be awarded based on either of these documents.

Steps to a successful NABERS Commitment Agreement (CA) 1. Fostering shared understanding and joint responsibility – At the earliest possible time (ideally at the design concept stage) provide all consultants and contractors involved in the design, construction, commissioning and management of the development with written notice of the CA. This ensures that all parties involved in decision-making are coordinating their efforts to achieve a common goal.

2. Computer simulation – Engage a suitably qualified consultant to

undertake a computer simulation of the development, to model and predict the operational performance of the building. Computer simulations can help you mitigate risks, and some developers will choose to undertake a computer simulation prior to entering into a CA. 3. Independent design review – You will need to engage a NABERS Certified Independent Design Reviewer to undertake an Energy Efficiency Review of your project.

The reviewer will be independent of your design team and will provide expert advice on the operational performance of the building.

4. Full operation – Once your building has been fully commissioned and reached at least 75 per cent occupancy, you have reached ‘full operation’ and can commence the 12-month data collection phase to inform your NABERS Energy rating.

5. NABERS Energy rating – After 12 months, engage a NABERS Accredited Assessor to undertake a NABERS Energy rating.

Case Study: Legion House – A global benchmark for sustainable refurbishment of a heritage building • 161 Castlereagh Street, Sydney • Joint venture: Grocon and GPT • Commitment Agreement: NABERS 6 star Energy After Pixel in Victoria, which is widely recognised as the first carbonneutral office building in Australia, Grocon has signed a NABERS 6 star Energy Commitment Agreement with the New South Wales Government, which administers the NABERS program nationally for the refurbishment of Legion House in Sydney’s CBD.

Performance and Rating |

In an Australian first for a CBD office building, it plans to disconnect from the mains electricity grid Legion House, a heritage-listed building dating back to 1902, is part of the 161 Castlereagh Street project.

The site also includes a premium office tower, which will be the new home of ANZ and Freehills in 2013.

The project is jointly owned by Grocon and GPT Wholesale Office Fund.

GPT CEO Michael Cameron says Legion House will set a new benchmark for heritage refurbishment.

‘It marks the next sustainable GPT investment, joining iconic buildings such as the 6 Star Green Star workplace, which features trigeneration and a black water treatment plant and has achieved a 5.5 star NABERS Energy rating,’ Mr Cameron says.

Grocon Site Engineer (Sustainability) Brendan Coates says sustainability is one of Grocon’s four core values, along with safety, community and innovation.

‘With Pixel currently being Australia’s greenest building, as rated by the GBCA, we believe we are at the forefront of sustainable technology and we want to push the boundaries even further,’ he says.

‘Grocon is committed to achieving a market leading 6 star NABERS Energy rating in operation at Legion House.’

The NABERS Commitment Agreement is a contract between the New South Wales Office of Environment and Heritage – as NABERS National Administrator – and Grocon.

Legion House will be the new head office of Grocon in New South Wales in 2013. It will be the first refurbishment of a heritage building to commit to a 6 star NABERS Energy rating since the NABERS scheme was recently extended.

Grocon is planning to achieve a carbon- and water-neutral outcome at Legion House. In an Australian first for a CBD office building, it plans to disconnect from the mains electricity grid, and is investigating a range of options to supply surplus renewable power, including biomass gasification technology to be supplied to the office tower on site.

‘The most significant challenge in achieving the 6 star rating will be that Legion House doesn’t have any access to sunlight or wind, so we’re restricted in what forms of renewable energy we can use,’ Mr Coates says.

‘As far as we are aware, Grocon is the only organisation to look at using the technology in this way, with the entire fuel, gas, electrics and electricity production on the one site.

The technology is not new or unique, but the way we will set it up on the one site is unique,’ Mr Coates says.

The project aims to transform Legion House into one of the greenest buildings in the world, setting a new benchmark for the creation of sustainable city precincts.

The highly energy efficient design embraces a number of other environmental initiatives, from vacuum toilets to timber sourced from sustainably managed forests, and high thermal performance curtain wall facades.

Mr Coates says Grocon has undertaken a significant amount of design innovation and application to make the aims achievable.

‘Along with our consultants, Grocon will be running energy models regularly and stringently in order to meet our NABERS targets,’ he says.

‘For example, a computer model examines how the building is built, including all the materials, the envelope, and services, such as lighting and HVAC (heating, ventilation and air conditioning), which enables us to run it against occupancy and other known variables.

‘As the design decisions are finalised, the model is developed to ensure we are running on track and that we pick the best sustainable options.

‘From the outset, we’ve been aware of tailoring the design solution for Legion House and the 161 Castlereagh Street project to demonstrate a very cost-effective yet extremely high level of performance,’ he says.

Key facts The 161 Castlereagh Street redevelopment comprises a 50-level, 44-storey premium-grade office tower. It has 55,000 square metres of office space and 3200 square metres of retail space. Grocon has signed a Commitment Agreement to achieve a 5 star NABERS Energy rating for the office tower.

It incorporates Legion House – an existing four-level heritage building – two single-level retail buildings, and a large open plaza space. Grocon has signed a Commitment Agreement to achieve a 6 star NABERS Energy rating for Legion House.

retrofit australia • volume 1 number 1 2012 • 47

| International Case Study

Leading by example at the

Empire State Building

48 • retrofit australia • volume 1 number 1 2012

International Case Study |

The Empire State Building is arguably the most recognisable skyscraper in the world, and thanks to a comprehensive retrofit program, it has now achieved further acclaim as a leader in refurbishment for environmental sustainability. Retrofit Australia speaks with Clay Nesler, Vice President of global energy and sustainability for Johnson Controls, and a major player in the Empire State Building’s retrofit process.

Retrofit Australia: The Empire State Building was completed in 1931. When and why was the decision made to implement a retrofit for energy efficiency?

Clay Nesler: The plan for repositioning the building started in late 2006 with the intent of modernising and bringing the building up to class A status. In 2008, Anthony E Malkin, President of Malkin Holdings and the third generation in the building’s ownership, was approached by a long-time family friend working for the Clinton Climate Initiative, and they began a dialogue about the importance of the existing built environment to energy consumption.

Over time, that conversation grew to a discussion about using the Empire State Building as a model for an integrated energy efficient retrofit in conjunction with his Empire State ReBuilding project. A collaborative team including the Empire State Building Company, LLC and experts from the Clinton Climate Initiative, Johnson Controls, Jones Lang LaSalle and the Rocky Mountain Institute

came together to take a fresh look at the renovation plan and make the building as energy efficient as possible, while improving the work environment for tenants and providing an acceptable financial return.

RA: What were the primary drivers behind the decision to retrofit this icon now?

CN: Anthony Malkin kicked off the project by stating: ‘The goal with the Empire State Building has been to define intelligent choices that will either save money, spend the same money more efficiently, or spend additional sums for which there is reasonable payback through savings. Addressing these investments correctly will create a competitive advantage for ownership through lower costs and a better work environment for tenants. Succeeding in these efforts will make a replicable model real for others to follow.’

RA: What features of the building were pinpointed for retrofitting?

Can you explain the reasons for targeting these features, and the outcomes of this?

CN: Using the world’s most famous office building as a test bench, the team developed a replicable, quantitative process to project the return based on investment for various combinations of energy efficiency measures. This exercise identified over 60 potential

...that conversation grew to a discussion about using the Empire State Building as a model for an integrated energy efficient retrofit retrofit australia • volume 1 number 1 2012 • 49

| International Case Study

improvement measures, which were then assessed based on technical feasibility and financial return.

The design process looked at, in order, load reductions, energy efficiency, behaviours and distributed generation. This resulted in 17 viable measures that were evaluated in various bundles using detailed hourly energy simulation analysis.

Four packages of measures were identified that alternately maximised carbon reduction, maximised carbon reductions at zero net present value, balanced carbon reduction and net present value, and maximised net present value.

The balanced net present value, which was selected by the owner, consisted of eight improvement measures, including on-site refurbishment of all 6514 windows, adding insulation behind radiators, a chiller plant retrofit, new building controls with wireless sensing, VAV air handling units on tenant floors, active day lighting and plug-load management, demand-controlled ventilation and a web-based tenant energy management system. The project included a broad range of improvements covering the building envelope, equipment, 50 • retrofit australia • volume 1 number 1 2012

The project applied an integrated design approach – more commonly used in green building design – to the design of the retrofit project controls, lighting, plug-loads and tenant education. The contract for the implemented package of improvement measures stipulates that the work will reduce energy use by 38 per cent, save $4.4 million a year and return the investment in only three years, based on the incremental cost of the improvement measures.

RA: What methods were used in the Empire State Building retrofit project (i.e. integrative design, sub-metering etc.)?

CN: The project applied an integrated design approach – more commonly used in green building design – to the design of the retrofit project. A common objective of integrated design is to identify synergistic benefits between design elements. For example, in the Empire State Building retrofit, increasing

the R value and decreasing the SHGC of the windows, and reducing lighting energy use, reduced the cooling load enough to avoid the need for additional chiller capacity to condition the common areas of the building. The capital budget that would have been needed to build a new chiller plant was instead used to invest in more efficient windows and lighting.

Other innovative aspects of the project approach include the use of a calibrated hourly energy simulation model to estimate the savings of an extensive and interacting set of potential improvement measure packages. The simulation model is also used for measurement and verification of savings on an annual basis using the International Performance Measurement and Verification Protocol – Option D standard.

International Case Study |

RA: Retrofitting such a cultural and historical icon must require a good deal of sensitivity. How was the retrofit treated in terms of retaining the character and design sensibilities of the original building?

CN: The Empire State Building is the world’s most famous office building and a historical landmark, and, as such, is subject to certain requirements during retrofit and repositioning. The refurbishment of the existing windows, re-using both the window frames and glass panes, had to be approved by the New York City Landmarks Commission. In fact, because the windows were removed and replaced on a rotating basis at night, many tenants didn’t even know their windows were refurbished – they thought they had been cleaned.

RA: The results of the retrofit appear to be particularly positive.

What kinds of cost and energy savings have come of this, overall?

CN: One year after completing the core energy efficiency retrofit, the Empire State Building is ahead of plan and has exceeded its first year energy savings guarantee by five per cent, saving over $2.4 million. Once all tenant spaces are upgraded, the building is expected to save $4.4 million a year – a more than 38 per cent reduction of energy use that is anticipated to cut carbon emissions by 105,000 metric tons over the next 15 years.

RA: Was the retrofit team aware of the world watching its progress?

Do you think that the upgrade of such a well-known building will encourage other building owners to take on similar challenges?

CN: We can thank the Clinton Climate Initiative for the original suggestion of retrofitting the Empire State Building. When Anthony Malkin had suggested another property that was in even greater need of retrofitting, they insisted that a project at the Empire State Building would capture the world’s attention and define a model for the industry to follow. They were absolutely correct in their prediction, as the team continues to share the history and results of the project at industry events around the world, inspiring many building owners to follow a similar integrated design process for deep building retrofits.

RA: Aside from the expected energy and cost savings, what does retrofitting a property add to a building’s value?

CN: There was an excellent study commissioned last year by the Australian Property Institute (API) and the Property Funds Association of Australia (PFA) that evaluated the financial performance of green office buildings in Sydney and Canberra.

The ‘Building Better Returns’ study shows a clear link between value premiums and higher NABERS Energy rating categories. Five star NABERS energy ratings delivered a nine per cent premium in value, while three to 4.5 star ratings delivered a two to three per cent premium. Interestingly, the study also identified 10 to 13 per cent discounts in value for NABERS energy ratings of less than three stars.

The almost 20 per cent premium to discount spread between efficient and inefficient buildings is sure to catch the attention of the commercial real estate market. In addition, higher NABERS energy ratings also led to reduced vacancy, reduced outgoings, reduced incentives and reduced yields.

RA: How do you think Australia’s built environment compares to the rest of the world when it comes to retrofitting?

CN: In 2012, the Johnson Controls Institute for Building Efficiency administered the sixth annual Energy Efficiency Indicator (EEI) survey, which tracks the attitudes and practices of executives responsible for energy management and investment decisions in industrial, commercial and institutional buildings. This sixth annual survey tracked the priorities, investments, plans and barriers of retrofit australia • volume 1 number 1 2012 • 51

| International Case Study

3500 global executives and building owners in Europe, North America, Australia, Russia, Brazil and India.

The results for Australia showed slightly less importance being given to energy management, with 79 per cent rating it extremely or very important versus 85 per cent globally.

Investment plans were comparable to those in North America and greater than those in Europe, with 46 per cent saying they were planning to increase investment in energy

efficiency next year. Australia and the United Kingdom were unique in ranking increased asset value as a top three driver of investment in energy efficiency.

Building, can achieve when tenant space improvements are considered and an integrated design process is applied during a major renovation of the building.

With respect to retrofit practices, North American and European organisations were much more likely to make building envelope improvements, and North American organisations to make HVAC and controls improvements, than those in Australia. Australian organisations are also much less likely to certify new construction projects to a green building standard (27 per cent) than the global average (43 per cent).

Interestingly, Australian organisations place a much greater emphasis on certifying existing buildings (41 per cent) than new construction projects (27 per cent), which should be a good indicator of the interest in retrofitting buildings.

An alternative is to leverage contracting models, like the environmental upgrade agreements in Melbourne and Sydney, that allow retrofit costs to be passed on to tenants and funded by thirdparty financial institutions. When combined with Energy Performance Contracting, where the energy service company performing the upgrade guarantees the energy savings, as Johnson Controls did for the Empire State Building, Environmental Upgrade Agreements can support projects with significantly longer paybacks than the typical commercial building retrofit.

RA: You have said that a lot of the time people make small, less costly changes in order to reduce their energy usage; however, you believe that larger, more dramatic changes are necessary to see the desired results. Why is this?

CN: Our Energy Efficiency Indicator study shows that the average building owner will accept a maximum payback time of a little over three years. These improvements tend to include lighting, installation of variable speed drives, retrocommissioning and other short payback items. These projects also tend to focus on the base building systems, which are under direct owner control. Unfortunately, typical projects like this tend to reduce energy use by 10 to 20 per cent instead of the 30 to 40 per cent that deep retrofits, like the Empire State 52 • retrofit australia • volume 1 number 1 2012

The Empire State Building project taught us the importance of doing the right things, in the right order, at the right time RA: What advice would you give to building owners considering a retrofit of their premises?

CN: The Empire State Building project taught us the importance of doing the right things, in the right order, at the right time. The first step is to triage your building portfolio based on renovation cycle.

International Case Study |

Integrated design will drive the team to consider synergistic trade-offs, such as investing in reducing cooling loads, allowing downsized, and less costly, replacement equipment It is always going to be more costeffective to retrofit buildings during a repositioning, major renovation or coincident with the replacement of major equipment or structures.

design will drive the team to consider synergistic trade-offs, such as investing in reducing cooling loads, allowing downsized, and less costly, replacement equipment.

The next step is to commit to an integrated, whole-building retrofit approach, including comprehensive whole-building audits applied to both the base building and tenant spaces. Over half of the potential savings are in the tenant spaces and can be addressed through green lease provisions, design standards and tenant education. Integrated

Finally, insist on project performance guarantees with ongoing measurement and verification (M&V) of savings. Uncertainty of savings continues to be one of the key barriers to investment in energy efficiency, especially for larger whole-building retrofit projects.

Metering technology, energy simulation and data analytics have all

advanced to the point where rigorous and continuous M&V of project performance should be a market expectation, not an exception.

RA: Where can we find more information on the Empire State Building retrofit?

CN: One of the conditions that the project partners agreed to at the beginning of the project was that all information about the project, including engineering calculations, financial models, design tools and performance verification reports, would be placed in the public domain to educate the industry and increase adoption of these best practices. This information can be found at www.esbnyc.com or esbsustainability.com in the sustainability section.

The Empire State Building’s iconic art deco foyer

retrofit australia • volume 1 number 1 2012 • 53

||Company CompanyProfile Profile

From little things, big things grow The Public Transport Ombudsman in Victoria shows that even a small office tenancy can play a significant role in reducing carbon emissions.

A

s a 2010 CitySwitch Award finalist and 2011 Award winner, the Public Transport Ombudsman (PTO) has a demonstrated commitment to energy efficiency and has successfully managed to embed this into the organisational culture. We spoke to Finance and Administration Manager, Christine Arthur, about the lighting retrofit activity that has seen the PTO’s Melbourne tenancy dramatically reduce its carbon footprint and operating costs.

As a winner of the 2011 CitySwitch Awards in Victoria, tell us about how the sustainable journey began for the PTO. We were conscious of the cumulative impact that day-to-day tasks can have on the environment and believed we could take action by implementing simple measures. As a starting point, a staff member was nominated to lead on our Environmental Management Strategy (EMS) in 2008 and we began indentifying our key environmental impacts. With the input from staff we compiled a hit-list of ‘green ideas’. These ideas informed the development of our EMS action plan, which then became effective in January 2009. It was later that year that the PTO learnt about CitySwitch, and after an initial meeting, we decided to join and take advantage of the support and knowledge that the program had to offer.

What key initiatives were undertaken as a result of your EMS plan?

Our plan included actions to reduce waste as well as increase energy efficiency. The key initiatives we were able to implement included:

54••RETROFIT retrofitAUSTRALIA australia••VOLUME volume11NUMBER number112012 2012 X

Public Transport Ombudsman Janine Young with the organisation’s 2011 CitySwitch Award.

• Replacement of the halogen down lights

new ones to maximise luminosity and create uniformity.

Halogen foyer lighting was replaced with energy-efficient LED alternatives.

As these lights were used more for effect, 5W LEDs were sufficient to light this space, resulting in an energy saving of 90 per cent.

• Installation of motion sensors and timers

• Strategic delamping Areas that were determined to be overlit were delamped. All remaining fluorescent tubes were replaced with

Tenancy foyer lights were rewired to enhance control of unoccupied areas.

This resulted in hallway, kitchen and utility rooms being fitted with motion sensors and timers to automatically switch off after two minutes, ensuring no areas are left unnecessarily lit.

Company Profile | • Installation of lighting control sensors

• Purchase of switch power boards for each staff member

• Switching to electronic format where possible

Lighting control sensors were installed in all individual offices throughout the tenancy, resulting in a marked decrease in the amount of energy being used.

Each staff member now has their laptop connected to a power board, which is turned off at the end of each business day. This ensures all appliances are turned off at the main switch, and are not left consuming unnecessary power overnight. These power boards also turn appliances off when the staff member is away from their office for a period greater than 90 minutes.

PTO board papers are no longer provided to members as hard copy documents; rather, laptops are supplied at these meetings allowing all related material to be viewed electronically. Switching to an electronic format has saved an estimated 720 pages per board meeting.

• Consolidation of servers Two servers were consolidated into one, resulting in a 50 per cent saving of the attributed energy use without compromising performance. The (still serviceable) old server was donated to charity, avoiding landfill.

• Replacement of all desktop computers and monitors with laptops All PTO laptops now operate in ‘minimal power management’ mode, automatically switching off at the screen after five minutes of non-use, and going into system standby after 10 minutes.

• Purchase of an energy-efficient printer The Fuji Xerox DocuCentre-III C3300 printer has an ‘energy saver’ button, placing the machine into sleep mode when not in use. All printing is defaulted to double-side black and white.

• Installation of a hot water unit with timer The timer operates on a 12-hour cycle, saving on unnecessary heating of water overnight.

• Removal of all individual bins Only one large centrally located recycling bin and one waste bin remain in the tenancy.

• Changing to responsible printing sources The PTO has committed to publishing brochures, newsletters and reports on only Australian-made, recycled and carbon neutral manufactured paper, and committed to purchasing 90 per cent of office supplies from recycled or a responsibly managed source.

How did you go about getting the lighting retrofit project up and running?

Our business case for the lighting retrofit was based on budget availability, so the project was rolled out in phases. This broke the process down into more manageable stages that were spread over two financial periods, which was essential from a project financing perspective.

And how was the plan rolled out?

Avoiding the unnecessary energy usage was a natural first step, so phase one of the lighting retrofit focused on delamping of overlit areas. CitySwitch assisted with the loan of a lux meter so that a plan could be drawn up of the target areas for delamping. All fluorescent tubes that remained were replaced with new ones to maximise the brightness of the luminaire.

The Public Transport Ombudsman Victoria receives, investigates and facilitates the resolution of complaints between public transport users and operators where the operators are unable to resolve these in the first instance.

retrofit RETROFITaustralia AUSTRALIA••volume VOLUME11number NUMBER112012 2012••55 Y

||Company CompanyProfile Profile

And what were the next steps of the project?

The second phase of our lighting retrofit investigated sensor lighting.

With the assistance of CitySwitch, the PTO researched the effects of sensor lighting in a tenancy.

Two quotes were obtained for the installation of sensor lighting – one quote from a lighting company with a specialised background in LED lighting, and the other from our existing electrical company. Based on the vast difference in quoting price, the quote provided by our existing electrical company was accepted.

The sensor lighting was implemented throughout the tenancy in two stages, firstly in each individual office and then in the hallway, kitchen and utilities room. We were also able to successfully engage the building manager to install sensor lighting in the bathrooms (part of the base building services).

The third phase saw the tenancy rewired so that specific areas could be zoned and lit via individual switches rather than as part of a larger area. For instance, the foyer lights were separated out from the

56••RETROFIT retrofitAUSTRALIA australia••VOLUME volume11NUMBER number112012 2012 Z

hallway to enable the hallway to be sensor-driven. As a further benefit, the rewiring allowed the hallway, kitchen and utility rooms to be placed on ‘infrascan’ mode, meaning once sensors activate, the lighting in these areas now only stays on for a period of two minutes before turning off.

maintenance and replacement costs over time.

What activity has been key in achieving energy reductions?

The installation of sensor lighting is likely to have achieved the best result as far as energy savings. As mentioned, automation removes the human reliance factor to ensure the savings are predictable and sustained.

Halving the energy use from our servers was another big win. All of this has helped the PTO achieve a recent 6 star NABERS Energy rating.

And finally, we addressed the halogen lights in the foyer. These were replaced with energy efficient 5W LED units – these use 90 per cent less energy than the standard halogen bulb and have a vastly superior lifetime. This will result in reduced

What knock-on effects have the cost savings had?

PTO key activities and savings Consolidation Delamping in to single overlit areas server

Replacement of desktops with laptops

$ saved annually

1252

246

214

kg/CO2 saved annually

8081

1588

1381

PTO NABERS ratings since joining CitySwitch Green Office NABERS Energy rating 2009 3.5 Stars

NABERS Energy rating 2011 5.5 Stars

NABERS Energy rating 2012 6 Stars

As a result of the cost savings achieved, the PTO has committed to purchasing 50 per cent GreenPower via our energy retailer, allowing us to further reduce the carbon footprint of our operations.

What were some of the challenges encountered?

One of the biggest challenges was getting staff to change their

Company Profile | behaviour. This was partially overcome with the automation of the lights, which ensured we weren’t purely relying on staff switch-off habits.

What role has staff engagement played in supporting the organisation’s energy efficiency goals?

The PTO developed a staff awareness and engagement program a couple of years ago to increase internal awareness of the impact of our operations and actions on the environment, both as individuals and as a company. As part of this engagement program, the PTO hosts internal environmental competitions, participates in various sustainability events and undertakes monthly ‘spotaudits’ of the tenancy — both for the purpose of reporting and to help support future environmental project proposals.

Through the success of our engagement program, the majority of PTO staff have adapted their dayto-day behaviour and are making a difference through actions including switching off laptops at the power

board and placing equipment on ‘energy saver’ mode when not in use. These actions have all required significant cross-office behaviour change – something I believe is now embedded into the culture of the organisation.

So, what are the next steps?

We are investigating the replacement of our existing fluorescent tubes with linear LED units.

What advice would you give organisations looking to increase the energy efficiency in their office?

Making sure staff are on board with change is essential. Education and involvement of staff will ensure a collaborative and successful plan, especially if you make it fun. As part of this approach, we’ve ensured our Green Champion is recognised for the ongoing work she is doing to improve our business operations.

I’d also recommend getting multiple quotes for any project work. There’s a lot of variability in the market and obtaining value for money makes the business case an easier sell.

CitySwitch Victoria extended to businesses across the state!

CitySwitch has recently announced an expansion of the program to all commercial office tenants across Victoria.

Australia’s flagship office energy efficiency program has appointed a new Suburban and Regional Program Manager to help offices in Victoria improve business operations.

Sign up now and join the hundreds of signatories across the country who have already reduced their operating costs and environmental impact. Take advantage of the NABERS Energy rating rebate and access a range of free resources available to CitySwitch signatories. Contact Jeff Elliott on (03) 9209 6763, at jelliott@portphillip.vic.gov.au or visit cityswitch.net.au

For switched on organisations Join the leaders and get support to manage your office energy use.

CitySwitch signatories receive free support, resources and financial guidance to help action energy efficiency projects and deliver operating cost savings.

Join CitySwitch today: cityswitch.net.au CitySwitch Partners

retrofit AUSTRALIA australia •• VOLUME volume 11 NUMBER number 11 2012 2012 •• AA 57 RETROFIT

| Lighting

Energy efficient eHID solutions for high-power lighting The lighting industry is currently undergoing rapid changes in the quest for energy efficiency and cost reduction opportunities in both new builds and retrofitting. Greenearth Energy Efficiency’s Metrolight products deliver smart, energy efficient, green and economical lighting solutions in a range of applications, such as retail, industrial, parking lots, petrol stations, street lights and warehousing.

G

reenearth Energy Efficiency is currently focused on the market for low bay and high bay HID luminaires; however, the technology can be utilised in an array of light fittings. Our technology is Metrolight’s SmartHID™ electronic ballasts from 45-watt through 450watt lighting systems and represent a powerful and energy efficient option for a range of applications that deliver significant advantages including: • substantially reducing energy consumption without sacrificing light levels • spectacular light – no colour variation, flicker- and noise-free • improved lumen maintenance and extended effective lamp life • built-in controlled dimming • advanced analogue and digital control

• fully programmable for increased flexibility eHID technology • compatibility with Metrolight developed LED technology currently being trialled.

Improved lumen maintenance, enabling use of lower wattage lamps without sacrificing light quality Conventional Pulse Start HID lighting systems, powered by magnetic ballasts, experience a 40 to 50 per cent fall-off in light output over the published life of the lamp. Probe Start systems show even poorer results, typically losing 60 to 70 per cent of initial light output. As such, lighting designers are forced to radically overdesign initial lumen levels to compensate for this falloff, wasting substantial amounts of energy. In addition to the rapid light degradation, the magnetic systems’ power and light are very input-

voltage dependent. Combined with the low power factor, significant power transmission losses exist.

These systems thus experience colour variation, flickering and operational noise.

Achieving the required light without the need to compensate with ‘over-design’ for rapid lumen degradation, Metrolight’s SmartHID™ electronic ballasts offer significant improvements in lumen maintenance and efficiency when compared to conventional HID lighting systems driven by pulse start magnetic ballasts and other technologies.

These improvements allow the use of lower wattage lamps to achieve equal or even slightly higher, maintained light output.

Metrolight’s energy savings – typical examples: Metrolight Wattage Retrofit

Base Wattage (W)

New Wattage (W)

Wattage Savings (W)

Wattage Savings with Dimming (W)

1000 to 450*

1090

480

610 (56%)

730 (67%)

1000 to 400*

1090

426

664 (61%)

771 (71%)

400 to 320**

460

344

116 (25%)

202 (44%)

400 to 250*

460

269

191 (42%)

258 (56%)

320 to 200*

375

217

158 (42%)

212 (57%)

250 to 175

290

190

100 (34%)

148 (51%)

* 1000W probe start, results in slightly lower maintained lumens ** Results in higher maintained lumens

58••RETROFIT retrofitAUSTRALIA australia••VOLUME volume11NUMBER number112012 2012 X

Lighting |

‘Conventional Pulse Start HID lighting systems, powered by magnetic ballasts, experience a 40 to 50 per cent fall-off in light output over the published life of the lamp’ Greenearth Energy Efficiency products provide full digital control and dimmable HID features: Metrolight electronic ballasts are fully compatible with network-based lighting control systems via a MADLI (Metrolight’s Propriety Protocol) interface. Offering wireline, wireless or PLC connectivity, this system enables the remote management and control of each light point in large-scale and multi-site installations. Providing unique energy and cost-saving tools to streamline lighting controls in a variety of applications, Greenearth Energy Efficiency’s lighting and energy management capabilities provide the ultimate flexibility to meet client’s changing requirements: • real-time software monitoring, diagnostics and management • advanced schedules and policy-based energy management • smart automated dimming and activation • control of individual light points (or subgroups) over multiple sites • wire-line, wireless and PLC connectivity options.

Energy efficient solution individually tailored Whether you are looking for a lighting solution for a new building or retrofitting your existing facility to ensure you take advantage of current technologies’ energy efficient features, Greenearth Energy Efficiency will ensure that they work with you to provide the optimal solution. They provide the support to ensure the lighting system operates according to your requirements, working with your chosen installers or assisting you with recommendations to achieve energy efficiency, cost savings and production efficiencies you desire.

For all enquiries please phone Greenearth Energy Efficiency (03) 9620 7299.

Alternatively email greenearth@greenearthenergy.com.au or visit www.greenearthenergyefficiency.com.au.

Greenearth Energy Efficiency is a subsidiary of an Australian Listed Company, Greenearth Energy Ltd (ASX:GER). The Energy Efficiency business includes the importing and distribution rights for Asia for the Metrolight suite of products.

retrofit RETROFITaustralia AUSTRALIA••volume VOLUME11number NUMBER112012 2012••59 Y

| Lighting

LEDs and lighting retrofits

By Bryan Douglas, Chief Executive Officer, Lighting Council Australia

Solid-state lighting is a rapidly developing technology that is offering useful alternatives to some traditional lighting. LEDs (a form of solid-state lighting) can provide excellent illumination in a wide range of applications. They are energy efficient, highly flexible in their application, durable, have a long life, are immediately at full brightness when switched on, and are not affected by regular on/ off switching. As such, more and more organisations are turning to LEDs for retrofit solutions – particularly as a consequence of the current phase-out by the Australian Government of the ubiquitous 50-watt tungsten halogen mirror reflector lamp.

What is an LED?

L

EDs consist of a chip of semiconducting material treated to create a positive/negative junction. When an LED is switched on, charges flow into the junction and combine to release energy in the form of photons, or light. The colour emitted depends on the materials used to make the LED. They can be red, yellow, blue, green or ‘white’.

Important terminology when selecting LEDs • Lumens: A measure of light output. The higher the number, the more light is emitted. For an LED lamp to provide equivalent light to the common 50-watt MR-16 dichroic downlight referred to above, it must produce a minimum of 480 lumens.

• Energy efficiency: The energy efficiency of a light is measured in lumens per watt (lm/W). A goodquality LED should emit at least 50 lm/W. • Colour temperature: LEDs produce white light in a number of ‘shades’, just like fluorescent lamps – from warm white (similar to an incandescent lamp) to cool white or bluish white (daylight).

Be sure to choose the colour that best fits the application, or that you feel most comfortable with.

• Colour rendering index: The ability to render colour. Some LED lamps are better at helping the human eye see colours than others. Look for lamps that have a colour rendering index (CRI) of at least 80 for indoor use, or 65 for outdoor use.

continued on page 62 60 • retrofit australia • volume 1 number 1 2012

Lighting |

Reduce emissions and costs Instant savings can be made in green renovations. By reducing energy consumption with approved energy efficient technologies, b-efficient customers can achieve a positive outcome for the environment and the bottom line.

T

he majority of our customers have received a minimum saving of 50 per cent off the lighting component of their electricity bills. With gross and net financing options and attractive energy savings offset schemes available in New South Wales and Victoria, retrofitting programs do not have to restrict businesses’ cash flow.

The other benefit is lower maintenance costs. Energy efficient lights will last much longer than your old lights, meaning you rely less on maintenance staff (especially expensive in difficult access areas).

All of our lights carry attractive warranties (serviced locally by us) that well exceed the light payback period.

What determines the payback period?

A number of factors determine this, such as the types and wattages of lights being replaced and installed, the hours of use per year, the unit cost of the light, the installation cost of the light and the usage of sensors and air conditioning. In New South Wales and Victoria we also incorporate the ESC/VEEC certificate discount. The three case studies

detailed on this page vary according to these factors.

How can you benefit if you’re outside New South Wales or Victoria?

You can still reduce your energy bill and carbon footprint by purchasing the lights from us at wholesale prices.

We can calculate payback periods for you using our quoting tool and can offer a number of financial packages.

Call us on 1300 233 533 for an obligation-free quote.

Case Study – Aged Care Facility

Supply and installation of 979 lights Gross cost: $50,230 $ ESC offset: 41,848 $ 8,381 Net cost: Payback period: 4 months

Case Study – Council Chambers

Save 50-80% off your lighting bill - immediately!

Supply and installation of 1050 lights Gross cost: $55,205 ESC offset: $12,675 $ Net cost: 42,530 Payback period: 2.55 years

How? •

If you’re in NSW or VIC, b-efficient can visit your business to conduct an obligation free lighting and energy savings assessment. We can also manage the installation, certificates trading and finance.

•

If you’re in other states, b-efficient has very competitive wholesale prices including a sample pack so you can see for yourself.

1300 233 533

Case Study – Retail Store Supply and installation of 86 lights Gross cost: $5,963 $ ESC offset: 5,147 $ Net cost: 816 Payback period: 4 months

ERINA - Platinum Suite 2.02, 4 Ilya Avenue 2250 MILSONS POINT - Suite 605, 6a Glen Street 2016 info@b-efficient.com.au I www.b-efficient.com.au

retrofit RETROFITaustralia AUSTRALIA••volume VOLUME11number NUMBER112012 2012••61 X

| Lighting

continued from page 60 Why do some LEDs have quality problems?

Tests on LED products found in the marketplace indicate a wide variation in product quality and how effectively they may light the intended space. Some lower-quality LEDs sold may not provide sufficient light, may flicker when dimmed, may change colour over time, or may fail prematurely. Some poor-quality products may not be energy efficient at all.

In addition to quality problems, some LED suppliers make exaggerated or downright false claims about their products’ performance Solid-state lighting is a complex technology – much more so than incandescent and fluorescent lighting.

While LEDs have been with us for quite some time, the technology is still under development. It is only in very recent years that the technology has allowed area lighting. LEDs are a point source of light and are excellent for applications such as brake lights, traffic signals and flashlights; however, area lighting – such as illuminating a room, a road or the exterior of a building – is much more challenging.

Heat dissipation from the p-n junction in an LED is a significant challenge for manufacturers. If the heat is not dissipated correctly,

degradation of the LED material and phosphors can lead to colour shift. This is important in side-byside applications, as the human eye is particularly good at discerning differences in colour temperature among lighting fixtures. Excess heat can also degrade the lighting fixture and lead to premature failure. The need for a substantial heat sink explains why it remains difficult for an LED to directly replace the small MR16 downlights so common in Australian homes and buildings – although this does not stop many suppliers claiming to have such products.

Governments in Asia in particular are encouraging LED production.

This has led to a huge number of new manufacturers – literally in the thousands – most of whom have no previous experience in lighting. It is therefore unsurprising that many make mistakes along the way.

In addition to quality problems, some LED suppliers make exaggerated or downright false claims about their products’ performance.

These claims can take many forms – a common one relates to light output.

Sometimes the information regarding lumens on the LED packaging will relate to the light source – that is, the electronic LED chip, not the LED ‘bulb’ (lamp) or the light fixture that uses the chip. Light sources tested under laboratory conditions will always have a higher light output than the LED fixture or the LED lamp.

If unsure about the specifications, potential purchasers should ask the retailer or contact the manufacturer to understand how the light output of the product has been measured.

The most useful measure is when the complete light fixture or the LED lamp – as applicable – is measured.

An Australian certification scheme for LEDs In response to the LED quality problems and exaggerated performance claims, Lighting Council Australia – a not-for-profit organisation representing Australia’s lighting industry – has developed a labelling-based certification program to assist purchasers of LED products. The SSL Quality Scheme is a voluntary industry program that provides confidence to the market that an LED product carrying the scheme’s label matches certain critical performance claims made by the supplier (for example, energy efficiency, light output, colour temperature and CRI). Registered products appear on a searchable database on Lighting Council Australia’s website: www.lightingcouncil.com.au. Unless you can be sure about the product’s performance, we recommend you look for this label when sourcing your solid-state lighting.

Brand Name: xyz brand Supplier/Product ID: xxx/xxx

LED Performance Solid State Lighting Luminaire Luminous Flux Luminous Efficacy

XXX lm XX lm/W

INPUT POWER

XX W

TEST VOLTAGE 240V

Colour

Correlated Colour Temperature (CCT) Colour Rendering Index (CRI, Ra) LIGHT COLOUR

[3000K WARM WHITE]

Correlated Colour Temperature (CCT)

WARM WHITE

2600K

COOL WHITE

DAYLIGHT

3200K

4500K

6500K

Visit www.lightingcouncil.com.au for the Label Reference Guide The specifications above are contained in certified or accredited reports provided to Lighting Council Australia Ltd by the manufacturer/supplier of this product. Lighting Council Australia makes no representation as to the product’s specification or suitability.

Dimmable

Non-dimmable

A sample SSL Quality Scheme label

62 • retrofit australia • volume 1 number 1 2012

XXXX K XX

Technology |

| Technology

The Brightgreen app is your new pocket-sized lighting tool

A

ustralian LED designers Brightgreen have reshaped a number of lighting tools and condensed them into one that fits inside your pocket.

Featuring devices that calculate savings and customise plans, the first official Brightgreen iPhone app is

designed as a practical tool that helps make lighting easier.

“We created the Brightgreen app in the hopes that it would enable people to make educated lighting decisions,” explained David O’Driscoll, Brightgreen’s CEO and head product designer.

One main draw of the app is its retrofit calculator, which shows cost versus savings per month and projected ROI tailored to your lighting specifications.

Also housed in the Brightgreen app is the lighting planner, presenting lighting designs for you in less than a minute.

Simply input your room type, its size and the amount of reflectivity and the app will determine the amount of lights needed to meet the appropriate brightness, or lumen count, in the room.

The Brightgreen app also offers lighting suggestions to make sure your building is OH&S compliant.

You can generate recommendations for building’s lux levels that meet Australian Standards Lux Levels (AS 1680).

All of Brightgreen’s awardwinning products are featured on the app with easy-to-view technical information including lumen output, wattage, beam width and CRI rating.

Finally, a list of all of Brightgreen’s distributors are also included so you can find your nearest stockist and complete your retrofit or new installation easily and hasslefree.

To get your hands on Brightgreen’s App, register and download it for free at www.brightgreen.com.

X • RETROFIT AUSTRALIA • VOLUME 1 NUMBER 1 2012

retrofit australia • volume 1 number 1 2012 • 63

| AlternativeEnergy Energy Alternative

Green engine for the ‘Green’ One One One Eagle Street Nowadays, cogeneration/ trigeneration has become the most popular technology to be retrofitted into energy-intensive facilities such as office towers, hospitals, data centres, airports, shopping centres and industrial plants. In the building industry, when targeting Green Star Ratings and NABERS Ratings, most building complexes will retrofit cogeneration/trigeneration systems in order to achieve their energy efficiency target and become more environmentally friendly facilities.

GE Jenbacher gas engines are proud of their world-leading electrical efficiency (highest up to 48.7 per cent) and the benefits and satisfaction that it brings to each customer.

C

larke Energy Australia has recently commissioned a one-megawatt GE Jenbacher gas engine, which is an integral component of the trigeneration plant installed at One One One Eagle Street – a 44-level premium-grade office development in Brisbane’s ‘Golden Triangle’ precinct. One One One Eagle Street has been designed to achieve a Premium Grade Rating through the Property Council of Australia and is targeting a worldleading 6 Star Green Star Rating and a 5 Star NABERS Energy Rating.

The one-megawatt high efficiency GE Jenbacher gas engine will supply the building’s base electrical load with the hot water and exhaust gas recovered in a multistage absorption chiller to provide chilled water for the building’s air conditioning system.

64••RETROFIT retrofitAUSTRALIA australia••VOLUME volume11NUMBER number112012 2012 X

The trigeneration system will also supply the building’s energy needs during grid power failures.

Trigeneration – also known as combined cooling, heating and power (CCHP) – has the ability to not only increase energy efficiency but also reduce CO2 emissions by up to 60 per cent when compared with conventionally generated electricity. The gas engine byproduct, waste heat, will further reduce the CO2 emission of the building by reducing the requirement to operate conventional boilers and electrical chillers. By comparison, conventional electricity is generated by inefficient means that produce high CO2 emissions and this coupled with transmission losses results in an inefficient source of energy.

Clarke Energy Australia, as the exclusive distributor of GE Jenbacher gas engines, provides total gas-toenergy solutions ranging from the supply of gas engines through to the full turnkey delivery of gas-fired power stations and cogeneration/trigeneration plants from 300 kilowatt to 60 megawatt. With over 100 employees in Australia alone, Clarke Energy provides a wide range of services from sales, engineering and project management through to operation, service and maintenance. Clarke Energy is currently delivering several cogeneration/trigeneration projects including the Revitalising Central Dandenong Precinct Development, Queensland Children’s Hospital, Perth Airport, Alice Springs Hospital and Frasers Property Central Park.

One One One Eagle Street has added to an already impressive portfolio of cogeneration/ trigeneration installations supported

by Clarke Energy Australia.

For further information, please visit www.clarke-energy.com or call 08 8290 2100.

Gas to Energy Solutions Power Generation

A building doesn’t have to be new to be green. With an emphasis on total energy efficiency, existing buildings can be retrofitted to significantly lower energy consumption and greenhouse gas emissions while producing financial rewards for owners.

Cogeneration and trigeneration systems maximize the benefit of onsite power generation by utilizing waste heat from the gas engine to produce hot water as well as chilled water for air conditioning or refrigeration.

Clarke Energy is the largest worldwide distributor of GE Jenbacher gas engines and can offer a wide range of gas powered generation solutions.

Clarke Energy has the local and international knowledge, experience, and in-house engineering expertise to design, deliver and maintain the optimum cogeneration or trigeneration system for your project.

Ask our friendly sales team how good design, unrivalled reliability and high electrical efficiency will further reduce the lifecycle cost and CO² emissions of your project.

Engineering – A strong focus on the delivery of quality facility engineering.

Installation – Installation options for your gas fired generation facility.

Maintenance – Range of tailored after sales services for your generation facility.

Electricity Cogeneration/CHP Trigeneration/CCHP

Clarke Energy (Australia) Pty Ltd Building 1, 2-4 Stirling Street Thebarton, South Australia 5031 Adelaide, Australia

Tel. +61(0)8 8290 2100 Fax.+61(0)8 8443 5848 australia@clarke-energy.com www.clarke-energy.com

| Alternative Energy

The commercial viability of alternative energy in commercial building retrofits

By Ian Porter, Chief Executive Officer, Alternative Technology Association

Climate change remains the key challenge for policymakers, industry and society into the 21st century. The need to massively reduce our carbon emissions – enough to ensure a safe climate for the long term – challenges all of our thinking about our use of energy, materials and transport.

A

gainst this backdrop, the purpose of this article is to provide a quick overview of some of the alternative energy sources being considered for commercial buildings in Australia, some of the funding models being discussed for investing in these, and to point to some future opportunities in electric vehicle charging and smart grids.

The commercial building sector in Australia comprises a wide and diverse range of building types and sizes – from offices to warehouses and factories, from corner shops to the tallest office towers. The sector is responsible for roughly 10 per cent of Australia’s greenhouse gas emissions through its consumption of energy: electricity for lighting, air conditioning and heating; gas for heating, hot water and processes.

In contrast to the housing sector, 66 • retrofit australia • volume 1 number 1 2012

where two-thirds of households own or are in the process of buying their dwelling, and many others are in long-term rental situations, the commercial sector is characterised by change; change of occupancy, change of ownership.

This means that the potential for cost-effective reduction of energy use and greenhouse emissions in the commercial sector is high, and highest at the point where buildings are renovated or retrofitted.

The national policy agenda around reducing energy use and carbon pollution, while politically rather divisive at the moment, is unlikely to change dramatically in the near future. The Australian Government’s Clean Energy Future package, involving the carbon price and associated policies, provides a strong cost driver for reducing energy consumption. Coupled with this, a

Ian Porter

range of national energy efficiency policies, including building standards and Commercial Building Disclosure, as well as the intrinsic drivers for rising energy prices (such as electricity distribution infrastructure investment), mean that the climate for investment in greening our commercial buildings is now clear.

The most economically attractive opportunities for reducing the energy profile of a commercial building will tend to be in the area of energy efficiency – improvements to building fabric, lighting and systems – however, lower-emission energy sources, such as trigeneration

Alternative Energy |

(combined electricity, heating and cooling) are becoming more costeffective and are being adopted more and more widely. The City of Sydney, for example, has set a target of reducing carbon emissions by 70 per cent by 2030, which will see 70 per cent of the city’s electricity being sourced from a trigeneration network and the other 30 per cent from renewables such as solar, wind and waste.

There is a wide range of renewable energy technologies that are emerging as options for consideration in the commercial sector – either as a stand-alone investment, a worthy consideration when retrofitting or renovating, or as a definite business case in new

building. The most promising of these renewable energy technologies is currently solar photovoltaics – also the fastest-growing technology in the household sector. Other renewable technologies that investors should look at include geothermal energy (where available, a highly attractive option) and, in some specific cases (with particular wind regimes), smallscale wind turbines.

Like any capital investment, renewable energy will be considered through a business case that fully articulates and compares the benefits and costs of change. While costs are usually easy to nail down, particularly in terms of capital spend, the benefits can be more widespread and sometimes difficult to quantify.

There are now many inspiring Australian examples of commercial buildings with strong investment in renewable energy; examples that can provide vision for new projects

Typically, the most easily quantified benefits of renewable energy for the commercial building investor include reduced energy costs and increased energy security, and reduced greenhouse gas emissions (and the carbon costs associated with these if the company is large enough). Reduced energy costs can also result from a reduction in peak time demand, as distributed generation reduces peak demand.

Important but less easily quantifiable benefits tend to flow in terms of greater staff awareness of energy and environmental matters (often leading to increased energy efficiency), and the public and stakeholder perception benefits that flow from reduction of environmental footprint.

There are now many inspiring Australian examples of commercial buildings with strong investment in renewable energy; examples that can provide vision for new projects.

An early example was the 60L Green Building in Carlton, head office of the Australian Conservation Foundation and home to many other organisations. This is an infill rebuild project using highly energy and water efficient design, with rooftop solar retrofit australia • volume 1 number 1 2012 • 67

| Alternative Energy

photovoltaics providing 10 to 30 per cent of common area power.

Another great Melbourne retrofit story is the Szencorp Building at 40 Albert Road, South Melbourne – the transformation of an old and inefficient commercial building into a standout energy and water efficient building with solar photovoltaic arrays and a demonstration solid oxide fuel cell.

In Sydney, the Legion House retrofit that is underway has adopted an energy concept that uses biomass gasification and cogeneration to supply renewable electricity to meet all building requirements without connecting to the electricity grid.

These and other projects have adopted a range of approaches to funding investment in alternative energy, noting that many forms of distributed generation are already cost-effective; for example, cogeneration and fuel cells. Some forms of renewable energy receive rebates and support from state and federal governments, and of course the carbon price will continue to shift the economics in a positive direction. Funding models that could be adopted for retrofitting renewable energy include self-investment, external ethical investor funding (for example super funds), specific technology grants, and third-party vehicles such as energy services companies.

68 • retrofit australia • volume 1 number 1 2012

One funding model that offers real potential into the future is working with interested community groups to develop investment models where households and families can pool their resources to invest in renewables such as solar photovoltaics on commercial rooftops – drawing on the experience of the Hepburn Wind project in central Victoria as a community investment vehicle.

Finally, the emerging electric vehicle sector presents both a technical challenge and a massive opportunity for commercial building owners. Approaches to electric and multiple fuel vehicles vary greatly – from the current crop of petrol-electric hybrids through to plug-in hybrids, plug-in fully electric vehicles, battery swap vehicles and conversions of petrol cars. All of these vehicles will potentially need a range of supporting infrastructure, from charging stations to more complicated interfaces. Many electric vehicle owners will be highly sensitive to the nature of the electricity used to recharge their vehicles – and the attraction (for example) of a commercial office building with rooftop solar and basement charging stations will be incalculable.

All of this points to the emergence of a future ‘smart’ energy network, where we’d see more widespread distributed generation, better use

of energy efficiency and demand management, and greater public awareness and expectation. Under this model, energy storage then becomes crucial, and electric vehicles are very likely to play a part in this.

Much of this is, and will remain, slightly speculative for some time to come. But we know that renewable energy generation will continue to increase its penetration through all sectors of Australia’s economy, and the economics of this will only improve.

There will be benefits to those who develop innovative approaches to building, to retrofitting, to developing and to funding renewable energy over the next few years.

Exciting, isn’t it?

The Alternative Technology Association (ATA), publisher of the magazines ReNew: technology for a sustainable future and Sanctuary: modern green homes, is Australia’s leading not-for-profit organisation promoting sustainable technology and practice. The ATA provides services to members who are actively walking the talk in their own homes by using good building design, conserving water and using renewable energy. ATA advocates in government and industry arenas for easy access to these technologies as well as continual improvement of the technology, information and products needed to change the way we live.

Finance and Funding |

Clearing energy efficiency hurdles

By Low Carbon Australia

There’s no doubt that improving energy efficiency can help the commercial property sector reduce operating costs and boost productivity.

P

roperty owners and managers with an eye to the future have already examined energy use and are working towards operating in a low-carbon economy because they have identified ongoing benefits for their operations.

They are part of a global trend that has recognised better, smarter, more efficient ways of doing business through harnessing energy efficiency and renewable energy technologies.

High efficiency twin compressor air to water heat pump with waste heat reclaim for simultaneous cooling and heating

The International Energy Agency estimates that energy efficiency will deliver 65 per cent of worldwide carbon cuts in the energy sector by 2020.

But the AI Group survey also showed reluctance from survey

For Australia’s commercial property sector, this means that those who act now are positioning themselves to remain attractive to prospective buyers and tenants operating in the emerging clean technology economy.

Australian Industry Group (AI Group) research released in June 2012 shows that, of Australian businesses surveyed, three-quarters of respondents had either taken action or were planning actions to improve energy efficiency.

Low Carbon Australia’s CEO Meg McDonald

retrofit australia • volume 1 number 1 2012 • 69

| Finance and Funding

participants to invest in larger energy efficiency projects with longer-term payback periods.

Low Carbon Australia’s CEO, Meg McDonald, says the survey results confirm that the biggest hurdle for most businesses considering energy efficiency is financing the cost of new technology or equipment.

Low Carbon Australia, established by the Australian Government in 2010, has partnered with business, government and utilities to initiate ways of making energy efficiency more attractive.

‘We’ve developed finance solutions to help businesses overcome that major hurdle, and that also meet the need for technical expertise to help choose and install the best energy efficient equipment, and the ability to find the most suitable solution among the multitude of new technology offerings available,’ she says.

Since commencing operations, Low Carbon Australia has contracted investments in excess of $35 million, and has developed investment partnerships that have generated new financing for energy efficiency worth more than $115 million.

Low Carbon Australia’s work with commercial property owners has helped many of them to realise improvements in operational efficiencies, with National Australian Built Environment Rating System (NABERS) performances rising from zero stars to a targeted four stars.

Low Carbon Australia is finding that the sense of urgency surrounding the need to adopt energy efficient measures and clean technologies has never been stronger.

70 • retrofit australia • volume 1 number 1 2012

Electrical switchboard

Rising energy prices have impacted on the commercial property sector.

Recent debate on carbon pricing has heightened awareness of electricity price increases, and brought attention to predictions of continued rises.

The Energy Users Association of Australia, in a report released in March, outlined price rises as high as 40 per cent in the past five years, and predicted a further rise of 30 per cent by the end of the 2013 financial year.

Most of that increase is directly linked to costs associated with maintaining an ageing infrastructure network, the need for expansion to meet growing peak demand, and the need to connect to new, remote renewable energy sources.

Building owners and managers who reduce their electricity consumption are ultimately also reducing their exposure to these future price increases.

The benefits of energy savings for commercial properties Commercial buildings adopting energy efficiency measures benefit from increasing their NABERS performance.

The Australian Property Institute’s 2011 study, ‘Building Better Returns’, and the PCA/IPD Green Property Investment Index research, shows there is real value and profit to be delivered through improving the green credentials of buildings.

Improving a building from a NABERS rating of one or less stars to four or more stars can reduce base building office energy use by 50 per cent, and case studies show that improvement translating to a cost saving of $20 per square metre.

A higher NABERS rating will also help property owners achieve higher rates of return on their buildings, and improved property values. A ‘greener’ building is more attractive to tenants, particularly those seeking environmentally friendly leasing opportunities.

Finance and Funding |

We finance projects that have been assessed as providing positive results – that meet both the cashflow benefits and energy savings So where and how are savings made?

Owners and managers of older commercial building stock who have assessed their energy consumption will have developed an understanding of their highest energy use areas.

According to ClimateWorks Australia’s ‘Low Carbon Growth Plan’ and ‘Commercial Buildings Emission Reduction Opportunities’, on average, appliances will account for around one-fifth of total energy consumption, and lighting will account for around 15 per cent. In an average building, heating, ventilation and air conditioning (HVAC) is responsible for about one-third of total energy use.

These are all areas in which proven energy efficiency equipment exists and can be used to realise change.

But whether it is a relatively lowcost energy efficiency project, like a lighting retrofit, or a more capital-

intensive project, like the installation of a trigeneration unit, the up-front capital has to come from somewhere.

Low Carbon Australia’s CEO says that for businesses finding the current economic climate tough, committing to investing in new equipment can seem too large a task.

‘We work to eliminate perceived risks. We finance projects that have been assessed as providing positive results – that meet both the cashflow benefits and energy savings,’ Ms McDonald says.

‘Our finance is flexible and tailored so that repayments match, or are less than, the energy savings realised over the payback period.’

How does Low Carbon Australia’s finance work?

Upgrading lighting in commercial buildings, from office space to retail outlets, can deliver reductions in lighting energy costs of up to 75 per cent, depending on the project.

For example, Low Carbon Australia helped a suburban supermarket reduce its lighting energy use by just over one-third through the installation of new LED lighting.

The project, which cost around $5900, is being paid back through the store’s energy bills within a twoyear time frame. After the payback period, the store will continue to reap the benefits, not only of reduced electricity use, but also of lower maintenance costs as a result of having new lights installed.

Under its on-bill financing arrangement with Low Carbon Australia and Origin Energy, the store owners didn’t have to be experts in lighting efficiency to take advantage of the right technology for them. As part of this financing arrangement, experts assessed their energy use and installed solutions that suited their needs.

This kind of finance, which offers end-to-end service, will cover not

Energy efficient T5 lighting

retrofit australia • volume 1 number 1 2012 • 71

| Finance and Funding

Low Carbon Australia is working to make the benefits of energy efficiency and a low-carbon future even more accessible to commercial property owners

only lighting upgrades, but projects including refrigeration, space heating and cooling upgrades as well.

Building owners wanting to install several different types of equipment to create an overall improvement in the way that buildings operate have also accessed Low Carbon Australia finance.

A commercial office building in Brisbane, which had a NABERS rating of zero before retrofitting, was targeting a four to four-plus rating through installing new air conditioning, base building metering and a new building management system.

These upgrades targeted a reduction in base building energy use of 43 per cent. Low Carbon Australia financed about 85 per cent of the energy efficiency project’s $585,000 total cost, which was part of a more extensive $1.5 million building refurbishment.

72 • retrofit australia • volume 1 number 1 2012

The property, which had been bought in 2010 for $7.95 million, was sold after its energy efficiency upgrades in April 2012 for $12.25 million.

South Wales. Low Carbon Australia is expecting other Australian states to consider this form of financing in the future.

A commercial office building in Ipswich, west of Brisbane, was also able to improve its NABERS rating from zero to targeting four stars through a $1.6-million energy efficiency project, assisted by Low Carbon Australia finance.

Low Carbon Australia is working to make the benefits of energy efficiency and a low carbon future even more accessible to commercial property owners.

Energy savings of 56 per cent are forecast, which has made the building more attractive to government agency tenants, and has helped to underpin the building’s long-term value.

A Melbourne mixed-use commercial building that includes a hotel, conference rooms and retail outlets is expecting to increase its energy efficiency by 27 per cent through a $1.3-million upgrade.

The 1960s building, which covers over 16,000 square metres, has undergone a comprehensive upgrade including a lighting retrofit, insulation improvements, metering that allows individual tenants to monitor and pay for their own energy use, and the installation of a trigeneration system.

This upgrade used an Environmental Upgrade Agreement (EUA) to finance the work. Currently only available in Melbourne and New South Wales, where there is legislation in place to allow such project financing, the EUAs involve repayments to the financier through a charge as part of council rate notices, which councils collect and pass on.

EUA financing offers a number of benefits to building owners wishing to upgrade, and this form of financing is being made available in Sydney and a number of other cities in New

The road ahead

‘We have solutions for commercial property owners who already have energy efficiency projects scoped, but are lacking the finance,’ Ms McDonald said.

‘But we also realise that the wide range of innovative new energy efficiency technologies and equipment available can be quite overwhelming.

‘We’ve developed solutions that bundle finance and technical expertise together for building owners looking for that extra level of support.’

Ms McDonald said that the aim was to make it easier for Australia’s commercial building owners and tenants to start reaping the benefits of improved energy efficiency sooner.

‘It’s an exciting time for us, because we’re actively demonstrating what is achievable.’

Those interested in learning more are encouraged to investigate Low Carbon Australia’s website: www.lowcarbonaustralia.com.au.

Low Carbon Australia Limited is an independent company established by the Australian Government to deliver innovative programs to help the move towards a low-carbon economy.

Finance and Funding |

Environmental Upgrade Agreements key to better building ‘footprints’ A landmark initiative by the NSW Office of Environment and Heritage (OEH) to make it easier to access finance for environmental improvements is gaining momentum.

R

obyn Parker, New South Wales Environment Minister, said Environmental Upgrade Agreements (EUAs) are a costeffective way for environmentally friendly improvements to be made to existing commercial and industrial building stock.

‘EUAs provide a practical and straightforward mechanism for property owners to secure low-risk finance for energy, water and other environmental upgrades, with the loan repaid through a local council charge on the land,’ Ms Parker said.

‘EUAs have the potential to unlock billions of dollars worth of energy efficiency upgrades in New South Wales alone, with the building sector providing the most cost-effective opportunities for efficiency of any sector in the economy.’

Under the innovative program, building owners have the option to share loan repayments with their tenants, who benefit the most through lower energy bills. At the same time, owners and tenants can lower their greenhouse gas emissions whilst

reinvigorating their buildings, which keeps vacancies and outgoings low.

Environmental upgrade Agreements are unique in enabling owners to share repayments and benefits with tenants. In October 2011, the template agreement was released for EUAs for commercial buildings. A similar template agreement is now being finalised for retail and residential strata buildings.

Under the innovative program, building owners have the option to share loan repayments with their tenants, who benefit the most through lower energy bills retrofit australia • volume 1 number 1 2012 • 73

| Finance and Funding

Timely boost for property community EUAs are a timely boost for the property community, which is dealing with high and volatile electricity and energy costs, and a growing proportion of ageing commercial building stock.

As an indication of its central position within a building’s cost structure, electricity contributes 20 per cent of the costs for office buildings in Sydney1. The commercial property sector consumes around one-fifth of Australia’s total electricity use and generates 13 per cent of total greenhouse gas emissions.

Meanwhile, experts predict a doubling in the price of electricity between 2011 and 20172.

These concerns, coupled with estimates of 81 per cent of Australia’s 21 million square metres of commercial stock being older than 10 years3, provide an almost ideal backdrop for EUAs to play a vital role in the years ahead in enabling owners to ‘futureproof’ their buildings.

EUAs also help owners keep buildings competitive to investors and tenants through improved energy efficiency, waste reduction and indoor air quality, with research4 indicating that tenants value green buildings as desirable places to work.

Retrofitting makes sense The high energy consumption of older commercial buildings, which were never designed for optimal energy efficiency, means retrofits make good sense. A typical building can realise significant energy savings by retrofitting with up-to1 Benchmarks 2010: Office Buildings, Property Council of Australia 2 Powering Australia Conference 3 Davis Langdon Research, 2009 4 GE Capital Research, 2010 and Building Better Returns, University of Western Sydney and University of Maastricht

74 • retrofit australia • volume 1 number 1 2012

date technologies and systems and optimising their operations. Building retrofit projects also benefits local communities by creating jobs, as well as extending the useful life of each building within its local fabric.

In its recent findings, the World Economic Forum announced projections of growing demand for retrofitting: ‘It is rare when a pressing environmental need makes demands on businesses that, rather than costing money, actually save them money and enhance their profitability.

Retrofitting large buildings for maximum energy efficiency is such a circumstance. The opportunity to catalyse a building retrofit market holds tremendous value for business and government alike.’5

Retrofitting for a win-win-win EUAs are underpinned by a voluntary three-way agreement involving a building owner, a finance provider and council.

The owner agrees to carry out the environmental upgrade works. The finance provider agrees to advance the funds for the works. Meanwhile, the participating council levies the environmental upgrade charges to pass repayments on to the finance provider (minus their processing fees).

The agreements enable owners to carry out environmental improvement works that will deliver the best outcomes and value for their buildings on a case-by-case basis.

The elegant simplicity of the EUA program is that each participant benefits markedly whilst contributing to better long-term environmental performance and reduced costs.

5 World Economic Forum ‘A Profitable and Resource Efficient Future: Catalysing Retrofit Finance and Investing in Commercial Real Estate, October 2011

Building owners are able to access funding for retrofits at a competitive rate, over a longer term and for larger projects, which they can service through tenant co-contributions. Their sustainable buildings have less impact on the environment, and generate better returns.

Tenants are able to enjoy the benefits of an upgraded, more efficient building at no extra cost.

For finance providers, EUAs represent taking a leadership position with a pioneering offer that promotes greater investment in retrofitting ageing stock. Because the Agreements allow for the finance to be repaid through a council charge, like rates, they provide long-term security for loan repayments.

Finance and Funding |

For councils, environmentally upgraded buildings are more likely to attract progressive, world-class businesses, whilst reducing pressure on infrastructure and extending the sustainable life of a region’s existing buildings. In capturing a stable of owners to increase the performance of their buildings, there are pronounced savings in water, energy and waste management, and lower emissions.

The upshot of these industry and government catalysts working together is a program that will deliver long-term benefits to the community as well as generate new ‘green collar’ employment in each local area.

Environmental upgrades

building energy efficiency, including the Energy Savings Scheme and the business support programs, Sustainability Advantage and Energy Efficiency for Small Business.

Upgrade activities eligible for an EUA include: improving energy or water efficiency, reducing waste and greenhouse gas emissions, recycling, pollution prevention or reduction, renewable energy projects, and activities that promote reduced car use – such as showers or bike parking racks – to encourage people to walk or ride to work.

Councils taking part EUAs are already available in the City of Sydney and Parramatta areas, with interest mounting among progressive metropolitan and shire councils.

The OEH has recently provided seed funding to the City of North Sydney and City of Newcastle Councils to assist with EUA set-up costs.

Works also include smaller-scale initiatives, such as installing efficient lights and sensor controls, improving lift energy use, and improving central heating, cooling and hot water systems.

More information

For more information about Environmental Upgrade Agreements and other New South Wales sustainability programs, visit the OEH website at www.environment.nsw.gov.au/ sustainbus/eua.htm or call Dominique Hertzog, Office of Environment and Heritage, on 02 9995 5494.

A range of other New South Wales Government programs are currently available to support

Two glaze or not two glaze?

W

indows can allow 89 per cent of heat gain and 49 per cent of heat loss in a

building.

So why is glazing often missed in retrofits?

Traditionally, glazing upgrades were considered difficult or costly, only done in major refurbishments. This view is changing, after a recent triumph.

Johnson Controls and Jones Lang LaSalle won the retrofit project for the iconic Empire State Building.

Extensive research led them to invest $4.5 million to improve 6500 windows. Overall, they delivered a 38 per cent reduction in energy use and a three-year ROI. Glazing was one of the top three contributors to the total improvement.

This smart approach has spread to Australia, spawned by incentives and 322503E_Magnetite | 1818.indd 24

legislation requiring energy efficiency to be disclosed. In Melbourne, Norman Disney Young added double glazing to 115 Batman Street, converting a derelict factory to a 5 star NABERS and Green Star hero.

From 1998, Magnetite has pioneered a wider understanding of double glazing in Australia.

Specialising in retrofits, their projects include heritage darlings Customs House, David Jones’ flagship store, Melbourne’s iconic Citiclub (RACV building) and Brisbane’s beautiful City Hall.

Magnetite delivers acoustic and thermal efficiency through double glazing and high performance solar films. Magnetite allows upgrades to be done ‘in-situ’, outside of major refurbishments, with a faster ROI. Contact Adrian Lafleur, at Magnetite (Australia) Pty Ltd. 1300 RETROFIT, www.magnetite.com.au David Jones, Market St 8/2/12 9:05 AM

retrofit australia • volume 1 number 1 2012 • 75

| Professional

Leading industry body calls for ‘embedding’ of skills for a sustainable future The Australian Sustainable Built Environment Council (ASBEC) has called on the Australian Government to provide leadership in building those skills that will ensure a safe, productive and sustainable future for all Australians.

T

he Council is asking all levels of government to work collectively as part of this process to deliver a step change in how they approach skills and sustainability through the development of a national action plan.

ASBEC is the leading peak body of key organisations committed to a sustainable built environment in Australia, with its members consisting of industry and professional associations, non-government organisations and government observers who are involved in the planning, design, delivery and operation of our built environments.

Industry practitioners at all levels across Australia’s built environments need to continually update their skills to meet the environmental, social and economic challenges our cities face.

From climate change to population growth and community development, professional development, education

76 • retrofit australia • volume 1 number 1 2012

and training have not kept pace with requirements or expectations.

Where progress has been made it generally lacks coordination, with considerations around sustainability still regularly seen as additional rather than core.

ASBEC asserts that sustainability skills and education need to be embedded across the Australian economy to ensure the success of any transition to a low-carbon future.

The Council is calling for a step change that embeds sustainability skills and education as standard practice across the Australian economy, urging the Australian Government to host a Built Environment Skills Forum as the basis for developing a COAG-endorsed Education for Life National Action Plan that seeks to deliver: • actions to develop a strong culture of continuing professional development to address the lack

of understanding that education should be for life and not simply at the beginning of someone’s career • coordinated strategies to address existing deficits in skills for sustainability that are increasingly affecting the built environment sector’s ability to deliver government policy and meet community expectations • delivery of lower levels of risk for investors in our buildings and cities through a more informed and skilled workforce that treats sustainability as a core focus and not an optional extra, and understands the various costs and benefits • recognition and development of appropriate industry-based professional standards that will assist in avoiding the need for government regulation of professions by supporting

Professional |

individuals at the leading edge of their areas of expertise • activities to ensure higher levels of community understanding and trust for built environment professions, not least those still under development, such as facilities management, and respected but poorly understood professions, like engineering.

With an increasingly mobile workforce, ASBEC believes that a national approach is essential if Australia is to move to a lowcarbon sustainable future, and that an integrated plan, developed and implemented collaboratively between all levels of government, key industry associations and the business community, is essential.

A National Action Plan would build on the work already undertaken or in development, particularly in relation to the VET sector. A coordinated national approach is now needed to build on this foundation, and to progress all parts of Australia toward a sustainable lowcarbon future.

According to Nicholas Burt, Chief Executive Officer of the Facility Management Association of Australia, education should be for life, and not simply at the beginning of a career.

‘Industry practitioners at all levels need to continually update their skills and knowledge to meet the nation’s environmental, social and economic challenges,’ Mr Burt says.

‘As one of the most urbanised nations on the planet, Australia’s buildings and infrastructure are critical to productivity and provide safety and comfort to the entire community,’ says Carolyn Hughes, Chair of ASBEC’s Skills and Education Task Group, and Education Manager at the Australian Institute of Refrigeration, Air Conditioning and Heating.

‘Now is the time to make sure that these vital assets are designed, constructed, managed and maintained by a workforce that is adequately equipped to build for the future.’

approach to ensure that professional development, education and training keeps pace with increased regulatory requirements and the growing market demand for sustainable practices.

Mr Burt states further that ‘both formal qualifications and experience play an essential role in ensuring effective built environment performance’.

The Australian Sustainable Built Environment Council is a non-profit organisation to which member bodies volunteer their time, resources and energy to develop practical opportunities for a more sustainable built environment.

ASBEC believes that there needs to be a nationally coordinated

What is ASBEC?

For more information visit www.asbec.asn.au.

ASBEC Members include:

Observer members:

Air Conditioning and Mechanical Contractors’ Association

Australasian Procurement and Construction Council Inc.

Association of Building Sustainability Assessors

Australian Building Codes Board

Australian Conservation Foundation

City of Melbourne

Australian Green Infrastructure Council Australian Institute of Architects

Department of Climate Change and Energy Efficiency

Australian Institute of Building

NSW Office of Environment and Heritage

Australian Institute of Quantity Surveyors

NT Department of Lands and Planning

Australian Institute of Refrigeration, Air Conditioning and Heating

PlacesVictoria

Chartered Institute of Building Consult Australia

QLD Department of Local Government & Planning

Energy Efficiency Council

QLD Department of Public Works

Engineers Australia

SA Department of the Premier and Cabinet

Facility Management Association of Australia

Sustainability Victoria

Good Environmental Choice Australia

Victorian Department of Planning and Community Development

Green Building Council of Australia Planning Institute of Australia Property Council of Australia

Bond University

Plumbing Industry Commission

Victorian Building Commission

WA Department of Treasury and Finance – Building Management and Works

Royal Institution of Chartered Surveyors Oceania Standards Australia The Australian Property Institute

retrofit australia • volume 1 number 1 2012 • 77

Professional ||Professional

Sustainability – up close and personal New Aussie firm matches business to budget.

S

ustainable business and infrastructure expert Green Global Consulting (GGC) says sustainability isn’t just being ‘green’. CEO Robert Sharon, a 27-year industry veteran, says organisations choosing to make early and active cultural transitions towards sustainable best practice can also benefit from significant returns on their bottom lines – but more so for those who take a more tailored approach. The development and implementation of tailored and sustainable business and infrastructure requires solutions that are ‘personalised’ to each organisation.

‘GGC is built on a passion for sustainability,’ says Sharon. ‘Yet we acknowledge that when it comes to sustainable business practices,

78••RETROFIT retrofitAUSTRALIA australia••VOLUME volume11NUMBER number112012 2012 X

blanket strategies and one-size-fits-all approaches aren’t the solution. Our first priority is to work intimately with our clients to develop unique, caseby-case solutions, guaranteed to meet the goals and expectations of each and every client.’

Sharon says large consulting firms are struggling to offer the level of personalisation required and that matching the right expert consultant to the right assignment is paramount – because in the long run, a cookiecutter approach won’t work.

‘Sustainability, by definition, is all about the long term – an ongoing process,’ Sharon says. ‘Part of what we do is fill the void between strategy implementation and tangible outcomes.’

Sharon says that too often consultants go AWOL after setting the ball in motion, but the fledgling industry needs services that extend throughout the entire life-cycle of the project.

‘The consultant needs to stick around to make sure there are runs on the board.’

Although Sharon is a 27-year industry veteran, Green Global Consulting has only been operating for a matter of months, yet is now planning to open offices all over the globe.

More information can be found on the firm’s Website: www.greenglobalconsulting.com.au

Sustainable Energy Solutions That Are Tailored Specific Needs?

Specific Needs?

To Your DC's

Yes

Can!

We

In many cases, we can deliver ROIs on sustainable infrastructure refurbs of 2 to 3 years with financing, delivering zero CAPEX and OPEX reductions of 20% to 35% from day one. (Subject to Conditions)

Delivering a Green Edge That Makes Cents!

Phone: 0407 245 335 • Email: info@greenglobalconsulting.com.au Visit us on the web at: www.greenglobalconsulting.com.au

| HVAC

Planning your retrofit how to make a fruit salad, not just pick the low-hanging fruit

By David Chokolich, Manager, Building Services, GHD

A well-planned retrofit should allow you to do more than just pick the low-hanging fruit. Asset owners and occupiers can expect to enjoy the benefits of a successful retrofit through improved ambience, amenity and financial performance. As the old saying goes, ‘failing to plan is planning to fail’.

Get your team right The first step in the process, and arguably the most important, is setting up your project team to enable the achievement of the best outcome.

When assessing your team members, the most important attribute should be experience; their experience should not only include the building 80 • retrofit australia • volume 1 number 1 2012

in question, but also similar types of projects and a strong operational knowledge of the task at hand.

The key team members should include: • the facilities manager (FM): this person already knows the ‘ins and outs’ of your building and all of its

idiosyncrasies, and will also have the best appreciation of tenant feedback • the maintenance contractors: like the FM, they already have intimate knowledge of the building, and generally a long list of improvement options • the consultants: including building services engineers, structural and façade engineers, DDA (disability access) consultant, architect, quantity surveyor and project manager.

The earlier the team can be assembled, the better the outcome

HVAC |

Ultimately, the goal of any retrofit will be to futureproof and increase the value of the asset should be, as they are able to provide input from the start and not secondguess initial decisions if they are brought late into the process.

Determining the baseline In order to determine an accurate baseline, it is important to gather as much knowledge as possible; this knowledge will assist later when options need to be assessed. Key information includes: • The Property Council of Australia’s (PCA) ‘Guide to Office Building Quality’. Note that the 2012 version now includes reference to both NABERS and Green Star, and offers a voluntary, market-based approach to classifying building characteristics and performance • NABERS assessments. These include energy, water, waste and indoor environment. Recently

• the building’s asset register. This is generally overlooked, but is vital in making a holistic assessment.

The minimum information required for components should include:

leased or advertised buildings may also have a Building Energy Efficiency Certificate (BEEC). A BEEC has three components:

• make • model

• capacity – for example, 1. the energy efficiency

2.0-kilowatt motor

rating of the building in the

form of a NABERS Energy • condition – the condition

base or whole-building

should be an accurate certificate

reflection of where 2. an assessment of the

the component is in its life

lighting systems’ cycle

energy efficiency in • energy efficiency rating –

the tenanted area of

an assessment should

the building that can be

be made as to the energy

expected to remain

efficiency of the component.

unchanged when

Is its just a standard motor,

the building is sold,

or a high-efficiency model?

leased or sub-leased • component yearly run 3. advisory and guidance hours

materials on the potential • general description – what energy efficiency

does that component do,

performance improvement

and how is it controlled?

initiatives of the building.

Using some of the above examples, your matrix could be expressed as follows: • a

Budget

Disruption to tenants / occupiers

Implementation timeframe

Owner benefit

Occupant benefit

Med

Med

Low

Med

Med

High

Improved CCTV within common areas

Low

Low

Nil

Med

High

High

Installation of energy metering to disclose energy consumption within the building to occupiers and visitors

Med

High

Low

Med

Med

High

Complexity of implementation

Improved end-oftrip facilities for cyclists

Initiative

Figure 1.

retrofit australia • volume 1 number 1 2012 • 81

| HVAC

It may be helpful to group the initiatives based on services or structure – this will allow all facets of the building to be analysed building condition audit. This should be undertaken to obtain a current condition assessment of the building’s structure and services. It should also clearly state the remaining economic service life of all components • reviewing existing maintenance contracts for scope, call-outs and costs. This also provides a good understanding of current condition and any issues • tenant/occupant surveys. These are also valuable sources of information to determine where a shortfall exists from the occupiers’ point of view, and how these can

be addressed as part of the retrofit process • an energy audit report. This should be completed in accordance with Australian Standard AS/NZS 3598:2000.

Setting goals and targets Ultimately, the goal of any retrofit will be to futureproof and increase the value of the asset. This can generally only be done by increasing the grade of the asset; for example, upgrading it from a C-grade to a B-grade building. Improving energy efficiency and occupant amenity is generally a by-product of this goal.

Points to consider include: • improved ‘end-of-trip’ facilities for cyclists • improved control systems • dedicated courier parking • improved CCTV within common areas • provision of standby power for essential and tenant services • installation of tenant condenser water loop for data/server and meeting rooms • installation of energy metering to disclose energy consumption within the building to occupiers and visitors • provision of renewable power on site • improved accessibility in accordance with the recently updated Disability Discrimination Act

continued on page 84 82 • retrofit australia • volume 1 number 1 2012

HVAC |

| HVAC

Condensing technology

Hydroheat Supplies offers practical sustainability with Baxi condensing technology

S

ooner or later anyone refurbishing an old office or building a new home has to think about a suitable heating system that is not only energy efficient and environmentally friendly, but is also value for money and easy to maintain.

When evaluating the many different alternatives and taking efficiency into consideration, one invariably ends up looking at ‘condensing technology’.

Condensing technology offers the most effective answer to our heating needs for a financially sustainable low and clean energy future.

Why? If the solution to the problem of climate change is sustainability, then the solution itself must also be sustainable – that is why it is key to specify condensing boilers in heating systems wherever possible.

There are essentially two reasons why condensing technology is inherently more sustainable than other forms of heating.

the low cost involved, more projects can be completed. This is especially interesting for the change over market.

Condensing boilers offer the following tangible benefits:

Through the condensing technology, money will be released for more energy saving and carbon cutting measures to be taken.

• reducing CO and NOx emissions and helping to combat climate change

After all, projects that don’t go ahead because of excessive costs save no greenhouse gases, and strategies that are too costly per project are not sustainable. Therefore, gas condensing technology is the affordable link between today’s and tomorrow’s energy (heating) demanding generations.

• improving building heating efficiency thus reducing fuel bills with large savings • increasing NABERS rating.

New to the Australian market, but in Europe proven for the last 25 years, it is a well tested technology with generally excellent fault diagnosis facilities and is easy to install.

Jan Voorham Marketing Manager Hydro Heat Sustainable solutions www.hydroheat.com.au

Baxi condensing boilers are also relatively cheap to buy. Due to its modular approach they can be sited virtually anywhere, and because of

RETROFIT + BAXI

Reliable, Versatile, Innovative Working Towards A Greener Future

• Condensing Boilers 28 – 150kW – Up to 1800kW in cascade • Low and high temperature integrated heating systems • Up to 96% efficient • No crane lift required • In/Out door installation • Using existing connections • BMS connectivity • 2 – 4 Years Investment return

www.hydroheat.com.au ACT distributor Ideal Rayson (02) 6280 5511

NSW distributors EcoHvac Products (02) 9669 4500 Simons Boiler Co. (02) 8338 8660

X • RETROFIT AUSTRALIA • VOLUME 1 NUMBER 1 2012

QLD distributor EcoHvac Products (07) 3808 9400

WA distributor A-West Distributors (08) 9258 5670

AGA approved –

#6253 and 7023 Head office: VIC, TAS, SA Hydroheat Supplies Pty. Ltd. PO Box 1045, 6 Helen Kob Drive, Braeside Victoria 3195 Ph (+61 3) 9588 1299 Fax (+61 3) 9588 2199 info@hydroheat.com.au

retrofit australia • volume 1 number 1 2012 • 83

| HVAC

continued from page 82

The advantage of modelling an existing building is that assumptions made in the modelling process can be reduced, as the model can be compared to actual energy consumption data and HVAC performance information from building management systems

• provision of common conference and meeting facilities • provision of a car washing facility • provision of improved recycling options, including green waste compost.

Identifying the upgrade initiatives This is a very important stage of the retrofit process, and your project team’s experience will be invaluable.

It is generally best to tackle this stage in at least two phases.

Undertaking this type of assessment allows for all factors to be considered and compared. While this illustrates a high-level overview, it provides a starting point for the more detailed analysis required in the second phase.

The second phase involves the detailed assessment of each initiative.

Typically, the level of detail required should be sufficient to allow the quantity surveyor to provide an indicative cost estimate.

• disruption to tenants/occupiers

Recent advances in the area of Building Information Modelling (BIM) demonstrate the considerable benefits of using this software for initial modelling, and then for further refinements during the design process, particularly in façade and energy modelling. The advantage of modelling an existing building is that assumptions made in the modelling process can be reduced, as the model can be compared to actual energy consumption data and HVAC performance information from building management systems.

• implementation timeframe

Implementation

• owner benefit

It is important to establish early on how the works will be programmed and managed, as this can affect how the individual initiatives are designed and packaged. In a tenanted building, the key issue is working around

The first phase is brainstorming, where all ideas are put onto the table. It may be helpful to group the initiatives based on services or structure – this will allow all facets of the building to be analysed. When assessing the options, it is important that a consistent group of criteria is maintained. Typical criteria may include: • complexity of implementation • budget

• occupant benefit.

A simple rating system of nil, low, medium and high can be used (see Figure 1, previous page).

84 • retrofit australia • volume 1 number 1 2012

tenants, particularly from a health, safety and environment perspective.

It is important to engage with tenants so that they are aware of progress, and what to expect when the retrofit is completed.

Monitoring and finetuning No retrofit project can be treated as a case of ‘set and forget’. It is important that actual energy consumption data and performance data from an HVAC system’s BMS is continually analysed.

It is quite common for facilities managers to undertake rolling NABERS estimates to ensure that they are still on track to achieve the new targets.

A retrofit project can be very complex, and can require input from many different people; however, with the proper preparation of a plan at the start of the project, you have the ability to influence the success of the project.

Residential Retrofitting |

Retrofitting the home for energy efficiency

By Michael O’Connell, Alternative Technology Association

Energy efficiency in homes is of prime importance as Australia looks to become a truly sustainable nation in the 21st century.

R

egulations in Victoria now mandate six-star efficiency for new homes, but most established houses and apartments across Australia still lag drastically behind, often at a level of two stars. This means buildings that are uninsulated, draughty and uncomfortable – unbearably hot in summer and cold in winter, requiring high amounts of energy to heat and cool.

There is enormous potential to reduce greenhouse gas emissions by making homes more energy efficient.

Housing accounts for 17 per cent of Australia’s total emissions, so we can all make important contributions by reducing our carbon footprints.

And the benefits are not just to the environment and future generations – householders can save substantial amounts on energy bills in healthier and more liveable homes.

Retrofitting a home requires people to take actions small and large – from major renovations that allow a home to make better use of the sun for passive heating and cooling, to simple things like turning off a TV at the wall so as not to drain standby power. From installing insulation in the roof to hanging curtains with pelmets, there’s much that can be done to improve efficiency.

The aim of home energy efficiency is to keep a relatively stable temperature, heating and cooling the home passively, with minimal energy use 85 • retrofit australia • volume 1 number 1 2012

According to the federal government’s Your Home Technical Manual, heating and cooling make up 38 per cent of energy use in the average Australian home. Water heating is next at 25 per cent, then appliances at 16 per cent, and refrigeration and lighting each at seven per cent. The household fridge is a major electricity consumer, contributing 12 per cent of a home’s greenhouse emissions.

Most people are comfortable when the temperature is between 18 and 27 degrees Celsius, so in summer a home should ideally be between 24 and 27 degrees, and in winter between 18 and 21. Every degree above or below those ranges adds about 10 per cent to the cost of energy bills. The aim of home energy efficiency is to keep a relatively stable temperature, heating and cooling the home passively, with minimal energy use.

Passive heating and cooling requires good home design, insulation, window protection and the elimination of draughts. It basically means letting the winter sun

retrofit australia • volume 1 number 1 2012 • 85

| Residential Retrofitting

in and keeping the summer sun out.

When a home is heated passively, it provides access for low-angle winter sun into living areas to heat them.

Passive cooling is about preventing the high-angle summer sun entering by shading, and allowing cool breezes to flow through the home.

Up to 30 per cent of heat in a home is lost through the windows, which can cost a household up to $200 extra in heating and cooling per year Insulation is the single most effective measure to improve energy efficiency, and can cut heating and cooling costs by up to 50 per cent.

Insulation acts as a barrier, preventing heat from passing in and out of a house. Reducing heat flow leads to a comfortable temperature inside, regardless of the temperature outside.

There are three types of insulation: bulk, reflective and composite. Bulk insulation resists the transfer of heat, relying on pockets of trapped air within its structure. Examples include glass fibre, wool, cellulose fibre, polyester and polystyrene. Reflective insulation resists radiant heat flow by high reflectivity and an inability to re-radiate heat. It relies on an air

86 • retrofit australia • volume 1 number 1 2012

layer of at least 25 millimetres next to the shiny surface. Paper or plastic, laminated with aluminium foil and available as sheets, are two types of reflective insulation. Composite insulation combines features of bulk and reflective, and comes as foilbacked blankets, foil-backed batts and foil-faced boards.

The type and level of insulation needed depends on both the location and the building materials used for the house. In a naturally ventilated home in the tropics, the aim of insulation is to reduce the amount of heat getting in without restricting the hot air escaping. Reflective insulation under the roof and in walls that are not permanently shaded works well in such conditions.

In a colder climate, the aim is to stop heat flowing out in winter, and prevent heat coming in during summer. Homes in such areas benefit from reflective insulation under the roof, floors and in walls, and bulk insulation in the ceiling.

Shading devices keep unwanted direct sunlight from overheating a home. Shading can block up to 90

per cent of the heat hitting windows during summer. Fixed shading devices such as eaves and pergolas have been the traditional mainstay of shading. These can be designed (particularly on the northern side of a house) to allow the winter sun to enter, but to exclude the hot summer sun. Seasonal shading such as sails and awnings can be put up and pulled down when needed.

Windows are enormously important for energy efficiency. Up to 30 per cent of heat in a home is lost through the windows, which can cost a household up to $200 extra in heating and cooling per year. Double glazing, though expensive, provides insulation against heat loss, and can reduce noise. Transparent film on windows is a cheaper alternative.

Hanging close-fit, heavy curtains with box pelmets above is a good way to stop heat loss through windows.

Water heating consumes a large proportion of a home’s energy. For maximum efficiency, a hot water system needs to be installed close to a kitchen, laundry or bathroom; all hot water pipes should be insulated;

Residential Retrofitting |

In a typical household, appliances left on standby can easily consume about 87 watts in a household per day, which equates to over $175 per year spent on wasted energy hot water drips and leaks need to be repaired; and a AAA-rated showerhead must be fitted. To reduce heat loss, wrap an electric storage heater with an insulating blanket.

Replacing an inefficient electric system with a solar one can reduce the greenhouse emissions of an average family by as much as four tonnes of carbon dioxide per year.

There are many gaps and vents in a typical home through which air can enter or escape, including chimneys; flues; gaps between and around windows; gaps around doors; gaps between walls or floors and skirting boards; and gaps between floorboards. Stopping draughts contributes to more stable home temperatures, and saves energy for heating and cooling. Permanent draught stoppers around doors and windows can be fitted, and cheaper self-adhesive seals are also available.

Often the easiest way to save energy in a home is to change its lighting. Incandescent globes and halogen downlights are expensive to run because they use comparatively large amounts of electricity. They should be replaced with compact and tubular fluorescent lights and LEDs. An LED has up to 100,000 hours of life, compared to 1000 hours for a typical incandescent bulb.

Standby energy, which is that consumed by an appliance when it is left connected to a power outlet but is not performing its function, has been increasing as a proportion of the total energy used in the average Australian home in recent years. In a typical household, appliances left on standby can easily consume about 87 watts in a household per day, which equates to over $175 per year spent on wasted energy. Appliances need to be turned off at the switch.

Efficiency labels and star ratings now allow householders to choose the most energy-efficient products for their needs.

Retrofitting a home for energy efficiency requires both commitment and attitudinal change. Australians are justifiably unhappy about escalating power and water bills, but there needs to be a shift from an expectation of unlimited power consumption towards conservation and efficiency. We don’t need to run air conditioners indiscriminately on hot days, or heat an entire house on cold days when we are only in one room – we can be comfortable and save money while improving the planet.

Michael O’Connell is a technical expert with the Alternative Technology Association. The ATA is a not-for-profit organisation that promotes renewable energy, sustainable home design and water saving. For more information, visit www.ata.org.au.

retrofit australia • volume 1 number 1 2012 • 87

||Company CompanyProfile Profile

Expect efficiency from your building

F

or commercial buildings to be profitable and retain longterm tenants, they need to be flexible, energy-efficient spaces that are suitable for a wide range of requirements. Among others, the National Australian Built Environment Rating System (NABERS) has influenced the need for commercial buildings to be ‘green’.

However, the move towards green buildings is not just legislation driven; the proof is in the savings. By installing modern systems, you can cut energy costs dramatically, and improve your bottom line. Reducing energy use in buildings by 30 per cent yields the same bottom line benefits as a three per cent increase in rental income, or a three per cent increase in net operating income.

Case study: 295 Ann Street, Brisbane In 2008, Schneider Electric completed an energy study on the commercial office building at 295 Ann Street, Brisbane.

The key recommendation from this study was to make a range of service upgrades to achieve at least a 4 star NABERS energy rating for the base building.

Since then, Schneider Electric has been involved with the design and installation of a number of base building services upgrades.

1. Building Management System (BMS) upgrade The building was originally controlled by a mixture of original pneumatic systems overlaid by various out-dated electronic and digital control systems. The existing control systems were gradually

88••RETROFIT retrofitAUSTRALIA australia••VOLUME volume11NUMBER number112012 2012 X

decommissioned and migrated to a new fully web-enabled BMS. 2. Integration of the refurbished floor controls to the main air handling systems New dual duct Variable Air Volume (VAV) boxes were installed and integrated with the base building BMS. The system ensures energy is not wasted on air conditioning unoccupied areas by integrating with the floor’s lighting occupancy control system.

3. Air Handling Systems upgrades The building is now served by eight large dual-duct high-pressure Air Handling Systems. Fan motors and pressure controls can be designed to save up to 50 per cent power.

4. Chilled water distribution system upgrade The building was originally designed with an inefficient and difficult-tomanage system of series configured chillers and pumps. Around nine tonnes of redundant pipe work and equipment were removed from the plant room. Two new high-efficiency chillers were installed to complete the system.

5. Supplementary Condenser Water System To provide auxiliary cooling capacity to tenanted floors, a dedicated condenser water loop was installed.

The system uses two new cooling towers and pumps to circulate water through an existing pipe riser.

6. Central Heating Plant Two oil-fired boilers were decommissioned and a new electric heat pump system was installed,

consisting of five 60-kilowatt aircooled heat pumps, new pumps, pipework, heating coils and controls.

7. Conclusion By vastly improving the building’s comfort conditions and combining sustainability features, 295 Ann Street recently achieved a base building NABERS rating of 4.5 stars. With 99 per cent occupancy and a list of bluechip tenants, such as Queensland Rail and Centrelink, the building is testament to the significant value of a ‘green’ investment.

Start with Schneider Electric.

Finish with high-performing buildings. ¤21M

Positive energy

saved over next 20 years

Musgrove Park Hospital, United Kingdom: A 43% reduction in carbon emissions and energy savings of ¤21M (£17M) achieved with an energy savings performance contract.

Green Office® Meudon, France: Low energy design and renewables enable positive energy: 64 kWh/m2/year generated vs. 62 kWh/ m2/year consumed.

82% less carbon emissions

5%

less sick time

Genzyme Center, US: Reduced energy use by 42%, water use by 34%, and employee sick time by 5% when compared to the previous headquarters.

Mirvac School of Sustainable Development, Bond University, Australia: Reduced carbon emissions by 82% and energy use by 75% when compared to a building of similar size and function.

Great results start with great design. Include us at the design phase of your next project to reduce environmental impact, ensure occupant satisfaction, and maximise asset value.

Comprehensive support throughout your project You have a vision for your buildings that includes sustainability, high performance, and innovation. Whether you are planning new construction or a major retrofit, these goals can be undermined by the traditional construction approach, which leads to siloed systems with inefficiencies, wasted resources, and a lack of data sharing. To combat these challenges, Schneider Electric™ offers a ‘design-for-performance’ approach with solutions that drive energy efficiency, occupant comfort, and profitability. At the planning stage of the integrative design process, we contribute energy management and green building expertise — resulting in designs that optimise your buildings for long-term high performance and provide flexibility to meet the evolving needs of occupants. During construction, we deliver an integrated technology solution through EcoStruxure™ system architecture. EcoStruxure enables the aggregation of data from multiple systems, allowing you to see, measure, and manage environmental metrics across your building portfolio. Armed with actionable information, you can achieve today’s goals while having visibility into portfolio performance to meet future green and energy mandates.

Solutions that achieve triple bottom line results Schneider Electric helps you get the job done right, on time, and on budget, to help you achieve measurable results for people, profit, and planet. Increased occupant satisfaction, productivity, and well-being will come from intelligent building controls and workspaces. Our design-for-performance approach also delivers lower operating costs, higher rental rates, and improved occupant retention rates, resulting in increased portfolio asset value. Most significantly, our solutions reduce energy use and carbon output, helping you to achieve environmental certifications and meet corporate social responsibility commitments. Our life cycle performance services ensure that you achieve sustained results over the full life of your building portfolio. Whether building new or retrofitting, make your high performance vision a reality with Schneider Electric.

Why invest in high performance green buildings?

EcoStruxure architecture enables the convergence of five key domains: Building, Power, Process & Machine, IT Room, and Security Management. This scalable integration leverages open standards across both Schneider Electric and third-party offers. We deliver integrated software, systems, and applications with a single user-interface, available locally and remotely, to view and manage one building or an entire portfolio.

Experience that benefits your building project

The Schneider Electric headquarters in France was the first building certified under the ISO 50001 standard for energy management systems.

To achieve this, we used our own solutions to integrate the most advanced products and technologies into a single architecture managed via one software system. This brought many benefits including the lowering of energy consumption significantly to 80 kWh/m2/year*. Let us show you how to leverage this experience in your next project.

Improve your buildings’ performance today!

Download “Why invest in high performance green buildings?”

FREE and enter to win an iPad 3

Visit www.SEreply.com Key Code 52700k *Promotion commences 1st September 2012 and closes 28th February 2013. Full terms and conditions available at SEreply.com ©2012 Schneider Electric. All Rights Reserved. Schneider Electric and EcoStruxure are trademarks owned by Schneider Electric Industries SAS or its affiliated companies. All other trademarks are property of their respective owners. • 78 Waterloo Road, Macquarie Park NSW 2113 • Head Office/NSW 02 9851 2683 ACT 02 6202 2100 VIC 03 9730 7999 TAS 03 6234 2466 WA 08 6241 0400 SA 08 8161 0988 QLD 07 3635 7500 NT 08 8922 1200 Auckland +64 9 573 1400 • 998-1159462_GB *Figure provided annually by the Hive management team.

WHY A 21 STOREY OFFICE BLOCK MAY BE THE MOST AMAZING BUILDING IN SYDNEY Coca-Cola Place in North Sydney might look like an ordinary office building from outside, but inside it contains something revolutionary. It’s the first commercial building in Australia to apply a precinct-based trigeneration system, where surplus energy produced is exported to another building, using Origin’s innovative solution called cogentpower. This means its trigeneration plant can run at maximum capacity at all times. The ability to share lower-carbon benefits with another building is potentially an industry-transforming innovation.

And the results speak for themselves – Coca-Cola Place not only has a 6 Star Green Energy Rating, but it also increases the NABERS energy rating of the building it supplies its energy to. In fact, this one project is saving over 1000 tonnes of CO2 per year. An environmentally friendly building that can make other buildings even friendlier? Now that is amazing. To read the entire case study on Coca-Cola Place, or to find out how a trigeneration unit can transform the efficiency of your building, visit our website or give us a call.

COGENTENERGY.COM.AU, CALL 02 8345 5034, 4115.May11.ALL

OR EMAIL ENQUIRIES@COGENTENERGY.COM.AU