EnvisionCharlotte:BilledElectric-EnergySavingsandCorrespondingEmissionsReductions FinalReport PreparedbyRobertCox,UNCCharlotte ReviewedbyEnvisionCharlotteMeasurementCommittee ExecutiveSummary Between2010and2016,61commercialbuildingsinuptownCharlotteparticipatedinEnvision Charlotte.Asapartofthiseffort,allparticipatingbuildingsreceivedshadowelectricmetersthat wereinstalledinparallelwiththeiractualrevenuemeters.Datawasprovidedtokiosksineach buildingaswellastoanonlineportal.EnvisionCharlottestartedtotrackbilledenergy1savings afterDukeEnergyhadcompletelyinstalledtheseshadowmetersjustpriortothestartofQ3 2012. Figure 1 shows the trend in aggregate billed energy from mid-2012 through the culmination of the program at the end of 2016. This graph shows the aggregate energy consumption based entirely on actual site electricity usage as read from the meters. No normalizationsoradjustmentshavebeenapplied.Thisdataiscomparedtoabaselineenergy consumptionvaluecomputedin2010.Table1summarizestheoverallchangeinbilledenergy consumption, and Tables 2 and 3 present corresponding information about the equivalent numberofhomespoweredandtheestimatedcumulativereductioninenergybills.Tables4 through6summarizethecorrespondingemissionsreductions. EnergyConsumption(MMkWh) RollingAnnualizedEnergyConsumptionSinceQ32012 540 520 500 480 460 440 420 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016 Quarters(July2012- December2016) Figure1:Annualizedenergyconsumptiontrendforthe61participatingEnvisionCharlottebuildingsthroughouttheentireprogram. Thedotshownforeachquarterreflectstheannualizedenergyconsumptionintheyearendingonthelastdataofthatquarter.Thus, forinstance,thevalueshownforQ32012correspondstotheaggregateenergyconsumedbetweenOctober1,2011andSeptember 30,2012. 1 Throughout this document, the term “energy” refers entirely to site electric energy consumption. 1 Table1:BilledEnergySavings Baseline:Billedenergyconsumption estimatedforthe12-monthperiodending 562.18MMkWh December31,2010 Final:Billedenergyconsumption estimatedforthe12-monthperiodending 454.45MMkWh December31,2016 Percentreduction 19% Table2:EquivalentNumberofHomesPowered2 EquivalentNumberofHomesPowered 9,964homes Annually Table3:EstimatedCumulativeReductioninEnergyBills3 EstimatedCumulativeBillingReduction $25.74MM SinceQ32012 Table4:EstimatedCO2EmissionsReductionSummary Baseline:CO2emissionsestimatedforthe 12-monthperiodendingDecember31, 296,830tons 2010 Final:CO2emissionsestimatedforthe12239,949tons monthperiodendingDecember31,2016 Percentreduction 19% Equivalentnumberofelephants 12,928 Equivalentnumberofcarsremovedfrom 11,003 theroad Table5:EstimatedNOxEmissions-SavingsSummary Baseline:NOxemissionsestimatedforthe 12-monthperiodendingDecember31, 469,154lbs 2010 Final:NOxemissionsestimatedforthe12379,250lbs monthperiodendingDecember31,2016 Percentreduction 19% Equivalentnumberofelephants 10 2 Thisisthenumberofhomesthatcouldhavebeenpoweredbytheaggregatesavingsin2016alone. Notethatthesavingsreflectedinthisanalysisresultedfromavarietyofmeasuresundertakenwithinthe61buildings,andthussignificant investmentwaslikelyrequiredinmanycases.Giventhenatureofthisactivity,informationaboutsuchinvestmentsisconfidentialandthusa return-on-investmentcannotbecomputed.Informationinthepublicdomain,however,suggeststhatanumberofthe61buildingsinvested significantlyinenergysavingsprojectsduringthemeasurementperiod. 3 2 Table6:EstimatedSO2Emissions-SavingsSummary Baseline:SO2emissionsestimatedforthe 12-monthperiodendingDecember31, 586,092lbs 2010 Final:SO2emissionsestimatedforthe12473,780lbs monthperiodendingDecember31,2016 Percentreduction 19% Equivalentnumberofelephants 13 Energy-SavingsAnalysis In May 2015, UNC Charlotte was requested to prepare energy-savings reports for Envision Charlotte using data provided confidentially by Duke Energy under the terms of an existing Master Research Agreement. With the approval of Envision Charlotte’s Measurement Committee,theteamcomparedaggregatebilledenergyconsumptionwithoutusinganyweather oroccupancynormalizationprocedures.UNCCharlotteusedthefollowingprocess: 1. Baseline Computation: UNC Charlotte computed the baseline energy-consumption valuebysummingelectricmeterdatafromall61participatingbuildingsoveraoneyearperiod.ThisbaselinewascomputedusingthesamedatasetutilizedforDuke Energy’sSmartEnergyNowprogram,withadditionalbillingdatafortwoDukeEnergy buildingsthatwereexcludedfromtheSmartEnergyNowprogram. 2. ReductionComputation:Onaquarterlybasisbeginninginthethirdquarterof2012, UNCCharlotteprovidedanaggregateenergy-consumptionvaluerecordedoverthe previous12monthsforthe61participatingbuildings.PriortoQ32015,thisvalue wascomputedusing15-minuteintervaldataprovidedbyEnvisionCharlotte’sshadow meters.Duetocommunicationsissueswithsomeofthesemeters,allanalysisfrom Q42015onwardwascompletedusingmonthlybillingdataprovideddirectlybyDuke Energy. Pleasenotethefollowingassumptions: • BaselineDataSet:TheoriginalSmartEnergyNowdatasetcontains2010billingdata for only 52 of 61 buildings. The remaining seven buildings have the following anomalies: o TwoDukebuildingswerenotincludedinSmartEnergyNow o 3havedatasetsbeginninginFebruary2010 o 1hasadatasetbeginninginDecember2010 o 1hasadatasetbeginninginJanuary2011 o 1hasadatasetbeginninginSeptember2011 o 1hasadatasetbeginninginJanuary2012 3 • Theseminorvariationsresultprimarilyfromfactorssuchasthedateuponwhichthe buildings were initially occupied, e.g. the Duke Energy Center and 1 BAC. To accommodateforthesevariations,UNCCharlottehascomputedanannualbaseline valueusingthefirst12monthsofavailabledataforeachbuilding.Foreaseofpublic communications,theEnvisionCharlotteMeasurementCommitteedecidedtorefer tothisbaselineastheannualenergyconsumptionin2010.Thisannualizedbaseline actuallycontainsvaluesrecordedoverthefollowingtimeintervals: o 54buildingsusedatabeginninginJanuary2010(includestheadditionofthe twoDukebuildingsnotintheoriginalSmartEnergyNowdataset) o 3buildingsusedatabeginninginFebruary2010 o 1buildingusesdatabeginninginDecember2010 o 1buildingusesdatabeginninginJanuary2011 o 1buildingusesdatabeginninginSeptember2011 o 1buildingusesdatabeginninginJanuary2012 Figure2providesagraphicalsummary. FirstComparisonofDatatoBaseline:UNCCharlottebegancomparingtothebaseline inthethirdquarterof2012.ThisdecisionreflectsthefactthatQ32012wasthefirst complete quarter in which all of the 61 buildings were officially participating in EnvisionCharlotte. BaselineCalculation 2010 2011 2012 J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D 54of61buildings 3of61buildings 1 of61buildings 1of61buildings 1of61buildings 1of61buildings Figure2:Thechartaboveshowsthetimeperiodforwhichdatawaspulledforeachofthe61buildings whencomputingthebaseline. 4 CommentsontheSourcesofEnergyReduction IntheyearssincetheEnvisionCharlotteprojectbegan,thecommercialreal-estatemarketinthe uptown core has obviously undergone changes. Given the nature of Envision Charlotte, it is impossiblefortheMeasurementCommitteetofullyunderstandthemultitudeofreasonswhy energy consumption decreased. Certainly, some reduction can be attributed to changes in behaviorsbybothbuildingoperatorsandoccupants,butitisimpossibletoquantifytheprecise amount. Furthermore, it is also impossible to quantify the exact impact of various capital improvements made within the Envision Charlotte buildings since confidentiality agreements preventusfromobtainingsuchinformation.Asearchofdocumentsinthepublicdomainshows thatseveralbuildings,suchasCharlotte’sOldCityHall,4investedsignificantlytoachievetheir savings.InthecaseofOldCityHall,forinstance,theprojectwasfinancedatleastinpartusing anEnergyEfficiency&ConservationBlockGrant.Itislikelythatmanybuildingsmadesimilar investments,butinformationaboutprivate-sectorbuildingsismuchmoredifficulttoobtainin thepublicdomain. Itshouldalsobenotedthatatleasttwoofthe61buildingsexperiencedmaterialreductionsin their occupancy during the course of this study, and these reductions did contribute to the reportedsavings.Confidentialityagreements,however,donotallowustodisclosetheirexact contributiontotheoverallreduction.Itshouldbefurthernotedthatothersignificantchangesin occupancy–ineitherdirection–mayhaveoccurredduringthetimeframeofthisstudy.Since wecanonlyrelyondataavailableinthepublicdomain,itisimpossibleforustoaccountforall ofthesechanges.Itisimportanttonote,however,thatmultiplesourcessitethesteadydropin vacancyratesinCharlotte,whichwereapproximately7.5%inQ12016afterreachingahighof approximately 15% in 20105,6. The consistent rise in occupancy is a trend that traditionally accompanies a rise in energy consumption, and thus this result is extremely encouraging. AnecdotalevidencealsosuggeststhatoccupantdensityhasincreasedinuptownCharlottesince 2010,buttheauthorwasunabletofindadocumentedsourcetocorroboratethisobservation. CommentsontheEquivalentNumberofHomesPoweredAnnually Wecomputedthenumberofhomesthatcouldhavebeenpoweredin2016bytheequivalent savings recorded in that year. This was computed by dividing the annual reduction by the electricityconsumptionintheaverageAmericanhome.AccordingtotheEIA7,theaveragehome usedapproximately10,812kWhin2015.Thus, 4 http://www2.apwa.net/Documents/Advocacy/APWA%20CASE%20Study%20OCH%20(2).pdf Cushman&WakefieldOfficeSnapshotQ12016, http://www.cushmanwakefield.com/~/media/marketbeat/2016/04/Charlotte_Americas_MarketBeat_Office_Q12016.pdf 6 JLLSkyline,https://skyline.jll.com/ 7 https://www.eia.gov/tools/faqs/faq.cfm?id=97&t=3 5 5 562.18 − 454.45 ×10< kWh NumberofHomesPoweredin2016 = = 9,964homes 10,812kWh/home CommentsontheEstimatedReductioninEnergyBills We computed the estimated reduction in energy bills assuming a median utility rate of $0.073/kWh8.Thebillingreductionsarecumulative,andwethusassumedthateachbuilding continuedconsumingthesameamountofenergyithadinitsbaselineyear.Thus,wedetermined thecumulativereductionin2013-2016aswellthereductioninthesecondhalfof2012.Asnoted previously,thisvalueshouldbetreatedatfacevalue.Recallthatmanyofthe61buildingslikely investedheavilytoachievetheirsavings,andthusamorecompleteeconomicanalysiswould examineaweatherandoccupancyadjustedreturn-on-investment.Wedonothavesufficient informationtocomputesuchavalue.Thedatadoessuggest,however,thatthecommercialrealestatecommunityinCharlottelikelydidfindgoodreasontoinvestinappropriateenergy-savings measures. Emissions-ReductionAnalysis In May 2016, the Envision Charlotte Measurement Committee adopted a procedure for calculatingemissionsreductionsfromtheenergy-savingseffortsinits61participatingbuildings. Thissectiondescribestheprocessforcalculatingtheseemissionsreductions. CalculationProcedure 1. BaselineComputation:Asdescribedpreviously,thebaselineenergyconsumptionforthe 61participatingbuildingswas562.18millionkWhin2010.Thecorrespondingemissions of various gases and particulates can be calculated using rates published in the EPA’s comprehensive Emissions & Generation Resource Integrated Database (eGRID). AccordingtoeGRID,electricitygenerationinNorthCarolinaisresponsibleforproducing emissionsofcarbondioxide(CO2),sulfurdioxide(SO2),andnitrogenoxides(NOx)atthe followingrates: a. CO2:1055.9975lb/MWh b. SO2:1.0425lb/MWh c. NOx:0.8345lb/MWh Thus,energyconsumptioninthebaselineyearresultedinthefollowingtotalemissions: a. CO2:1055.9975 b. SO2:1.0425 DE FGH DE FGH ×562,180MWh× JKLM NOOODEP = 296,830tons ×562,180MWh = 586,092lbs 8 ThisisthemedianratereportedtotheauthorbyDukeEnergyviaemailcorrespondenceonMarch27,2017. 6 c. NOx:0.8345lbperMWh×562,180MWh = 469,154lbs 2. Reduction Computation: At the end of the program on December 31, 2016, the energyconsumptionintheprevious12monthshadbeen454.45millionkWh.Using thesameemissionsratesprovidedabove,thisconsumptionresultedinthefollowing emissions: a. CO2:1055.9975 b. SO2:1.0425 c. NOx:0.8345 DE FGH DE FGH DE FGH ×454,450MWh× JKLM NOOODEP = 239,949tons ×454,450MWh = 473,780lbs ×454,450MWh = 379,250lbs Thus,theemissionsreductionsbetweenthebaselineyearandthe12-monthperiod endingDecember31,2016wereasfollows: a. CO2:56,881tons b. SO2:112,312lbs c. NOx:89,903lbs 3. Number of Removed Cars: To help understand the impact of the avoided CO2 emissions, UNC Charlotte determined the number of cars that would need to be removedfromtheroadinordertoachievethesameemissionsreductions.According totheEPA,thetypicalpassengervehicleemitsabout5.17shorttonsofcarbondioxide inoneyear.Giventhisfact,thetotalnumberofcarsthatwouldneedtoberemoved from the road in order to achieve the same emissions reductions is calculated as follows: 56,881𝑡𝑜𝑛𝑠 = 11,003𝑣𝑒ℎ𝑖𝑐𝑙𝑒𝑠 5.17𝑡𝑜𝑛𝑠/𝑣𝑒ℎ𝑖𝑐ℎ𝑙𝑒 4. Weight of Avoided Emissions: To help understand the impact of the avoided emissions,UNCCharlottedeterminedthenumberofelephantshavinganequivalent weight. In this case, we computed the number of elephants corresponding to the reductions in CO2, NOx, and SO2, respectively. According to the interpretation of multiple academic publications cited by Wikipedia, the weight of an average adult maleAsianelephantis4.4shorttons(8,800pounds).Thiswasthevalueusedforour computations.InthecaseofCO2reductions,forinstance,wecomputedasfollows: 7 NotesandAssumptions 56,881𝑡𝑜𝑛𝑠 = 12, 928elephants 4.4𝑡𝑜𝑛𝑠/elephant Thereareseveralelementstonotefromtheabovecalculations: 1. Emissions rates were taken from the EPA’s comprehensive Emissions & Generation ResourceIntegratedDatabase(eGRID).ThemostrecentlypublishedeGRID,whichuses 2012data,isavailableonlineathttps://www.epa.gov/energy/egrid.Forspecificdetails, see ‘egrid2012_data.xlsx’, Tab ‘ST12’, row 33 for North Carolina specific power plant emissionrates. 2. TheresourcemixforelectricitygenerationinNorthCarolina(andtheUnitedStatesin general)continuestoevolve,withmostemissionsratesonthedecline.Newtechnologies suchasscrubbersarealsohelpingtodecreaseemissionsrates.Toisolatetheeffectof EnvisionCharlotte’sactivitiesandtoavoidanyadditionalconfusion,wehaveelectedto usethe2012eGRIDemissionsratesinallpublishedreports. 3. Informationaboutaveragetailpipeemissionsfrompassengervehiclesisavailable onlinefromtheEPAatthefollowinglocation: https://www.epa.gov/sites/production/files/2016-02/documents/420f14040a.pdf 4. InformationabouttheaverageweightofanadultmaleAsianelephantcanbefound here: Disclaimer All analysis presented herein was performed by researchers at UNC Charlotte using raw data provided confidentially under the terms of a Master Research Agreement signed with Duke Energy.Underthetermsofsaidagreement,DukeEnergyallowsonlypublicationofaggregate energyinformationforallEnvisionCharlotteparticipants.DukeEnergydidnotparticipateinany oftheanalysisandisnotresponsibleforanyresultspresentedherein.Furthermore,itshouldbe notedthatEnvisionCharlotteandSmartEnergyNowarenotthesame.Asdescribedherein, EnvisionCharlotteisaccountingforallbilledenergysavingswithinthe61participatingbuildings betweenthemiddleof2012andtheendof2016.Thisencompassesfarmoresavingsthanthe behavior-based savings encompassed by Smart Energy Now. Additionally, Smart Energy Now included only data through August 2013 and thus Smart Energy Now entails a far shorter evaluationperiod.Thisdocumentdoesnotintendtosuggestthattheenergysavingsreported by Envision Charlotte resulted solely from energy efficiency or behavior change; rather, a multitudeoffactorscontributed,andbehaviorchangewasoneportionofthesavingsreflected inthisreport. 8
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