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Santa Barbara Summit on Energy Efficiency

Commercializing Advances in Energy Efficiency


May, 2009

Dr. J. Michael McQuade


Senior Vice President, Science & Technology
United Technologies Corporation
UNITED TECHNOLOGIES (UTC)
2008 Revenue - $59 billion commercial power
solutions
Sikorsky
Hamilton Carrier
Sundstrand $5.4
$6.2 $14.9

Fire &
$6.5
Security

$12.9 $12.9

Otis Pratt &


Whitney

aerospace
systems

commercial building
systems 2
UTC SUSTAINABILITY ROADMAP
Operations Products Advocacy
•  UTC establishes first set of EH&S goals •  Carrier introduces Evergreen® chiller (1996) •  U.S. Green Building Council (1993)
(1991)
•  Otis launches the Gen2TM elevator system (2000) •  Pew Center on Global Climate Change (1998)
•  Otis opens TEDA facility, the world's first
•  UTC launches the PureComfort® cooling, heating and •  Dow Jones Sustainability Index (1999-2009)
green elevator factory, in China (2007)
power system (2003)
•  Global 100 Most Sustainable Corporations in
•  Pratt & Whitney breaks ground on an engine
•  Pratt & Whitney launches EcoPower® engine wash (2004) the World. (2005-2009)
overhaul facility, targeted to meet LEED
platinum standards, in Shanghai (2007) •  UTC launches the PureCycle® geothermal power system •  World Business Council for Sustainable
(2007) Development’s Energy Efficiency in Buildings
•  UTC launches 2010 EH&S goals, which
project (2006-2009)
include absolute metrics and a new goal on •  UTC Power introduces 400 kW PureCell® system (2008)
greenhouse gas emissions (2007)
•  Pratt & Whitney flight tests PurePowerTM PW1000G
engine with Geared Turbofan technology (2008)

Energy use Water use


(Buts x 1012) (1997-2008) (revenues, $ billions) (gallons x 106) (1997-2008) (revenues, $ billions)
UTC Sustainable Product Launches
Otis Elevator UTC Power

... 2007
recipient

Purecycle® Geothermal Power System

Pratt & Whitney


UTC Power

Geared Turbofan™ Engine


Combined Heat Power (CHP) system
4
WBCSD EEB PROJECT
A world where buildings consume zero net energy

Energy efficiency first


From the business voice
Launch and lead sector transformation
Contribution to “sustainable” buildings
Communicate openly with markets
PROJECT TIMELINE
“Transforming the
Qualitative & Quantitative Market” Report
Assessments &
“Facts & Trends” Recommendations
Report

April 27, (eeGlobal,


Paris, Washington,
Beijing)

Formally
Announce Project Workshops, Forums, Conferences Manifesto
(Beijing)

2006 2007 2008 2009

CEO & Assurance CEO & Assurance CEO & Assurance


Group Group Group
MODELING STRUCTURE
MODELING DETAIL
SUBMARKETS MODELED

Residential
France single family
US Southeast single family
China Northern multifamily
Office
Japan Kanto midsized
US Northeast large
Retail (pending)
Brazil shopping center

Six EEB Regions: Building area >130B m2


Submarkets Analyzed, 2005: 19 M buildings totaling 5.4B m2
Submarkets Analyzed, 2050: 29M buildings totaling 9.5B m2
Percent of region building stock analyzed (m2 basis): 4.1%
REGULATION FACTORS
ECONOMICS: ECONOMICS:
5 Yr NPV 5 Yr NPV
First cost limits First cost limits

INCENTIVES MODELED: INCENTIVES MODELED:


Heating Systems -35% Same+
Cooling Systems -35% B-class (<90 kwh/m2) -25%
Envelope Systems -20% A-class (<50 kwh/m2) -50%
PV Systems -65%
PV Sell-back 5x
US-SE Single Family -0%

Baseline CO2 Baseline CO2


Total Sector Energy

Total Sector Energy


Total Sector CO2

Total Sector CO2


-70%

Heating Cooling Ventilation Lighting Cooking Hot Water Appliances Plug Loads

Subsystem incentives on Regulation and incentives on


envelope and HVAC whole building performance

B1 and G2 runs Baseline: Unaided market response


INVESTMENT FACTORS
ECONOMICS: ECONOMICS:
5 Yr NPV 20 Yr NPV
First cost limits No first cost limits

INCENTIVES MODELED: INCENTIVES MODELED:


Heating Systems -35% Heating Systems -35%
Cooling Systems -35% Cooling Systems -35%
Envelope Systems -20% Envelope Systems -20%
PV Systems -65% PV Systems -65%
PV Sell-back 5x PV Sell-back 5x
US-SE Single Family -0%

Baseline CO2 Baseline CO2 -30%


Total Sector Energy

Total Sector Energy


Total Sector CO2

Total Sector CO2


Heating Cooling Ventilation Lighting Cooking Hot Water Appliances Plug Loads

Subsystem incentives on Result from financing that


envelope and HVAC lowers first cost hurdle

B1 and B3 runs Baseline: Unaided market response


ECONOMIC ASSESSMENT
Six EEB regions
CO2 Emission Reductions Incremental Investment
to Achieve Reduction

Incremental Investment, $B
CO2 Emission Reduction*

*reflects scale up of buildings contribution to IEA Blue Map scenario, 2050


ECONOMIC ASSESSMENT – US ONLY
Auto Safety
Regulations
2% First Cost Premium

Incremental Investment to
CO2 Emission Reductions
Achieve Reduction

Incremental Investment, $B
CO2 Emission Reduction*
Required Building
Efficiency Investments
3% Total Cost Premium
13% First Cost Premium

Building Fire Safety


Regulations
5% First Cost Premium

*reflects scale up of buildings contribution to IEA Blue Map scenario, 2050 13


RECOMMENDATIONS
Create and enforce building energy efficiency codes and labeling standards
Extend current codes and tighten over time
Display energy performance labels
Conduct energy inspections and audits

Incentivize energy-efficient investments


Establish tax incentives, subsidies and creative financial models to lower first-cost hurdles

Encourage integrated design approaches and innovations


Improve contractual terms to promote integrated design teams
Incentivize integrated team formation

Fund energy savings technology development programs


Accelerate rates of efficiency improvement for energy technologies
Improve building control systems to fully exploit energy saving opportunities

Develop workforce capacity for energy saving


Create and prioritize training and vocational programs
Develop “system integrator” profession

Mobilize for an energy-aware culture


Promote behavior change and improve understanding across the sector
Businesses and governments lead by acting on their building portfolios
HIGHLY EFFICIENT BUIDLINGS EXIST
Energy Retrofit
10-30% Reduction

Very Low Energy


>50% Reduction
Cityfront Sheraton
Chicago IL
1.2M ft2, 300 kWhr/m2
5753 HDD, 3391 CDD
VS chiller, VFD fans, VFD pumps
Condensing boilers & DHW
Deutsche Post
Bonn Germany
1M ft2, 75 kWhr/m2
•  Different types of 6331 HDD, 1820 CDD
No fans or Ducts
equipment for space Slab cooling
conditioning & Façade preheat
ventilation Night cool
Tulane Lavin Bernie
•  Increasing integration New Orleans LA
of subsystems & LEED Design 150K ft2, 150 kWhr/m2
control 1513 HDD, 6910 CDD
20-50% Reduction
Porous Radiant Ceiling, Humidity Control
Zoning, Efficient Lighting, Shading
HIGH PERFORMANCE BUILDINGS: REALITY
Actual energy performance
lower than predictions

Design Intent: 66% (ASHRAE 90.1); Design Intent: 80% (ASHRAE 90.1);
Measured 44% Measured 67%

Failure Modes Arising from Detrimental Sub-system Interactions


•  Changes made to envelope to improve structural integrity diminished
integrity of thermal envelope
•  Adverse system effects due to coupling of modified sub-systems:
•  changes in orientation and increased glass on façade
affects solar heat gain
•  indoor spaces relocated relative to cooling plant
Source: Lessons Learned from Case affects distribution system energy
Studies of Six High-Performance Buildings,
P. Torcellini, S. Pless, M. Deru, B. Griffith, N. •  Lack of visibility of equipment status/operation, large uncertainty in
Long, R. Judkoff, 2006, NREL Technical
Report. loads leads to excess energy use
ENERGY IMPACT IN DESIGN-BUILD PROCESS
Concept & Design Build Operations & Maintenance

Property Managers &


A & E Firms Contractors
Operations Staff

Specialty Control Monitoring and


Equipment
Engineering System Maintenance
Vendors
Firms Vendors Companies

CAD BIM Analysis


IT Infrastructure Maintenance
Software Software Software
Vendors Software Vendors
Vendors Vendors Vendors

NZEB Inadequate concept exploration


Unaware

“We are slaves to our commissions”

50% Unapproachable Analysis Tools


“Protractors vs. daylighting simulation”
Design intent costed out
“Value Engineering”
Miss

As-built variances from spec


30% Poor operation
“Can’t do it that way”
“Too complicated, I shut it off”

Loss
Current Maintenance
ASHRAE 20% “Broken economizer”

90.1
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UTC PROPRIETARY
SYSTEMS APPROACH TO ENERGY EFFICIENCY

HVAC
Buildings Design Natural Ventilation,
& Energy Analysis Indoor Environment

Windows &
Lighting Networks,
Communications

Building Materials
Sensors, Controls
Domestic/International
Policies, Regulation,
Standards, Markets
Power Delivery &
Demand Response
Demonstrations

Integration The Whole is Greater than the Sum of the Parts


FROM R&D TO COMMERCIALIZATION

Barriers Enablers

Lack of process and tools for Computational science, physics-based


system analysis and design modeling, methodology, tools and training
for Integrated design

Lack of a demonstration Full scale demonstrations facilities and


capability for technology concentration of talent
maturation
Lack of tools for on-going Methodology, tools and training for building
auditing, commissioning & operations (e.g. computational/IT/controls
operations advances)
Lack of a long reach and broad Pre-competitive collaboration among
scope in technology and industry, national labs and universities
business model exploration