EcoEfficiency Buildings

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Sustainable Development Business Case Report

Commercial Buildings Eco-EiciencySD Business CaseVersion 1 November 2007

Power Generation

Transportation

Agriculture

Forestry

Waste Management

Energy Explorationand Production

Energy Utilization

Energy

Water Heating

Auxiliary Equipmen

HVAC

Lighting

Motors & Controls

HVAC

Domestic

Water

Solid Waste

Other

Organic

Paper

Plastic

Metal/Glass

CommercialEco-Eiciency


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* Copyright 2007 by Canada Foundation or Sustainable Development Technology

(SDTC).All Copyright Reserved.Published in Canada by SDTC. No part

o the SD Business CaseTM may be produced, reproduced, modiied, distributed,

sold, published, broadcast, retransmitted, communicated to the public by

telecommunication or circulated in any orm without the prior written consento SDTC, except to the extent that such use is air dealing or the purpose o

research or private study (unpublished, or an insubstantial copy). To request

consent please contact SDTC. All insubstantial copies or research or private

study must include this copyright notice.

The SD Business Case is provided as iswithout warranty or representation o

any kind. Use o the inormation provided in the SD Business Case is at your

own risk. SDTC does not make any representation or warranty as to the quality,

accuracy, reliability, completeness, or timeliness o the inormation provided

in the SD Business Case.

Sustainable Development Technology Canada, SDTC,

SD Business Case and SDTC STAR are trade marks oCanada Foundation or Sustainable Development Technology.

Sustainable Development Business Case Report*

Commercial Buildings Eco-EiciencySD Business CaseVersion 1 November 2007

Energy Utilization

Energy

Water Heating

Auxiliary Equipmen

HVAC

Lighting

Motors & Controls

HVAC

Domestic

Water

Solid Waste

Other

Organic

Paper

Plastic

Metal/Glass

CommercialEco-Eiciency


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Table o Contents

1 Overview o SD Business CaseTM............................................................................................................................... 1

1.1 The SD Business Case Plan .......................................................................................................................................................... 1

1.1.1 Primary Audience ........................................................................................................................................................... ............. 1

1.1.2 The SDTC STAR Tool ................................................................................................................................................................. 21.1.3 Sectors to be assessed by the SD Business Case .................................................................................................... 2

Figure 1 : SD Business CaseInvestment Roadmap ........................................................................................................................................ 3

1.1.4 Investment Categories to be Analyzed ........................................................................................................................... 4

1.1.5 Conclusions Framework ........................................................................................................................................................... 4

1.2 The SDTC STAR Process: Data Collection and Analysis ....................................................................................... 5

Figure 2 : The SDTC STAR Process .......................................................................................................................................................... ............ 5

1.2.1 Assessment Descriptions ......................................................................................................................................................... 6

Figure 3 : SDTC Funding Support................................................................................................................................................................ ............ 7

1.2.2 Output Structure .............................................................................................................................................................. ............ 7

Table 1 : Market Plot Indicators ................................................................................................................................................................... ............ 8

Table 2 : Technology Plot Indicators ............................................................................................................................................................ ............ 9

Figure 4 : Sample Technology Plot ............................................................................................................................................................. .......... 10

1.2.3 Conclusions and Investment Priorities.......................................................................................................................... 10

2 Executive Summary ....................................................................................................................................................... .......... 12

2.1 Commercial Buildings ............................................................................................................................................................. ........... 12

2.1.1 Energy Utilization............................................................................................................................................................ .......... 12

2.1.2 Water Consumption....................................................................................................................................................... ........... 13

2.1.3 Solid Waste Production .......................................................................................................................................................... 13

2.2 Commercial Buildings Vision Statements ........................................................................................................................ 13

2.2.1 Energy .................................................................................................................................................................................... .......... 13

2.2.2 Water ......................................................................................................................................................... ....................................... 13

2.2.3 Solid Waste ......................................................................................................................................................................... .......... 13

2.3 Non-Technical Needs.................................................................................................................................................................. ......... 13

2.4 Technical Needs ............................................................................................................................................................................. .......... 14

2.5 Investment Priorities................................................................................................................................................................ .......... 15


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3 ReportScope and Approach................................................................................................................................................. 16

3.1 Report Scope ................................................................................................................................................................ .............................. 16

3.1.1 Commercial Building Classication................................................................................................................................. 16

3.1.2 Operational Focus ...................................................................................................................................................................... 16

Figure 5 : Commercial Building Liecycle Energy Consumption ............................... .......................................................................................... 17

3.1.3 Technology Applications........................................................................................................................................................ 17

3.1.4 Strategic Approach.................................................................................................................................................................... 17

Figure 6 : Sustainable Buildings Strategy ............................................................................................................................................................. 18

3.1.5 Data Sources ................................................................................................................................................................................. 18

4 Background ........................................................................................................................................................... ............................. 19

4.1 Commercial Building Stock .......................................................................................................................................................... 19

4.1.1 Building Type................................................................................................................................................................................ 19

Table 3 : Building Type by End Use in 2004.......................................................................................................................................................... 19

4.1.2 Building Age ................................................................................................................................................................................. 19

Figure 7 : Commercial Buildings by Age .............................................................................................................................................................. 19

4.1.3 Building Activity ......................................................................................................................................................................... 20

4.2 Resource Utilization ........................................................................................................................................................................... 204.2.1 Energy End-Use ........................................................................................................................................................................... 20

Figure 8 : Total End-Use Energy by Sector in 2004 ............................................................................................................................................. 20

Figure 9 : Commercial End-Use Energy by Source in 2004 ................................................................................................................................. 20

Figure 10 : Energy Sources and Uses .................................................................................................................................................................... 21

4.2.2 Energy Use by System Type .................................................................................................................................................. 21

Table 4 : Commercial Energy End-Use by System Type in 2004 .......................................................................................................................... 21

4.2.3 Energy Use Trends...................................................................................................................................................................... 22

Figure 11 : Commercial Energy Use or 1990-2004............................................................................................................................................. 22

Figure 12 : Impacts on Commercial Energy Use or 1990-2004 ......................................................................................................................... 23

Figure 13 : Commercial Energy Use and Floor Area or 1990-2004 ................................................................................................................... 23

Figure 14 : Commercial Energy Use Intensity or 1990-2004 ............................................................................................................................. 24

Figure 15 : Heating Degree Day Index (HDDI), 1990-2004 ................................................................................................................................. 25

Figure 16 : HDDI and Space Heating Load Intensity or 1990-2004 .................................................................................................................. 25

Figure 17 : Commercial Energy Use, With and Without Energy Eciency Improvements, 1990-2004............................................................. 26


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4.3 Energy-Related Emissions .............................................................................................................................................................. 27

Figure 18 : GHG Emissions by Sector in 2004 ...................................................................................................................................................... 27

Figure 19 : Commercial Energy-Related GHG Emissions, 1990-2004 ................................................................................................................. 28

Figure 20 : Energy-Related Emissions Intensity Projections rom STARTM.......................................................................................................... 28

4.4 Water ....................................................................................................................................................................... ........................................ 29

4.4.1 Water Consumption....................................................................................................................................................... ........... 29

Figure 21 : Municipal Water Use by Sector .......................................................................................................................................................... 29

4.4.2 Water Consumption by System Type .............................................................................................................................. 30

Figure 22 : Water Use in Commercial Buildings ................................................................................................................................................... 30

Table 5 : Federal Oce Building Water Consumption by End-Use ...................................................................................................................... 30

4.4.3 Water Consumption Trend .................................................................................................................................................... 31

Figure 23 : Daily Commercial Water Consumption Trend, 1983-1999 ................................................................................................................ 31

4.4.4 Water Supply Issues........................................................................................................................................................ .......... 31

4.5 Solid Waste ......................................................................................................................................................... ........................................ 32

Figure 24 : Solid Waste Generation by Commercial Sub-Sector in Ontario in 2002 .......................................................................................... 32

Figure 25 : Ontario IC&I Disposed Waste in 2002 ................................................................................................................................................ 33

5 Industry Vision....................................................................................................................................................................... ......... 34

5.1 Key Market Drivers...................................................................................................................................................................... .......... 34

5.1.1 Cost Reduction.................................................................................................................................................................... ......... 345.1.2 Value Creation..................................................................................................................................................................... ......... 34

5.2 Future Building Functionality .................................................................................................................................................... 34

5.2.1 Knowledge-Based Work ........................................................................................................................................................ 34

5.2.2 Flexible Workplaces ........................................................................................................................................................ ......... 34

5.2.3 Smart Building Technologies .............................................................................................................................................. 35

5.2.4 Sustainable Buildings Philosophy ................................................................................................................................... 35

5.3 Vision Statements ....................................................................................................................................................................... .......... 35

5.3.1 Vision Summaries ............................................................................................................................................................. ......... 35

Table 6 : Commercial Eco-Eciency Vision Statements ....................................................................................................................................... 36

5.3.2 Energy Vision .................................................................................................................................................................... ........... 36

Figure 26 : Energy Use Intensity Reduction rom STARTM ............................................................................................................................. 36

5.3.3 Water Vision ........................................................................................................................................................................ .......... 37

5.3.4 Solid Waste Vision........................................................................................................................................................... ........... 37


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5.4 Needs Assessment................................................................................................................................................................................. 37

5.4.1 Non-Technology Needs........................................................................................................................................................... 37

Figure 27 : Current Commercial Building Value Chain ......................................................................................................................................... 38

5.4.2 Technology-Based Needs ...................................................................................................................................................... 40

6 Market Assessment ................................................................................................................................................................ 42

6.1 Market Potential......................................................................................................................................................... ............................ 42

Table 7 : Market Potential Summary .................................................................................................................................................................... 42

Table 8 : Energy Reduction Vision Details rom STARTM ....................................................................................................................................... 43

6.2 Market Plot..................................................................................................................................................................... ............................. 44

Figure 28 : Market Plot............................................................................................................................................................ .............................. 44

7 Technology Assessment ................................................................................................................................................... 45

7.1 Integrated Building Design .......................................................................................................................................................... 45

Table 9 : Integrated Building Design Technology Summary ................................................................................................................................ 45

Figure 29 : Integrated Building Design Technology Plot...................................................................................................................................... 46

7.2 Building Envelope Improvements ......................................................................................................................................... 46

Table 10 : Building Envelope Improvements Technology Summary ................................................................................................................... 47

Figure 30 : Building Envelope Improvements Technology Plot ........................................................................................................................... 47

7.3 Operator & Occupant Management Tools ....................................................................................................................... 47Table 11 : Operator & Occupant Management Tools Technology Summary ....................................................................................................... 48

Figure 31 : Operator & Occupant Management Tools Technology Plot .............................................................................................................. 48

7.4 System & Equipment Eciency Improvements.......................................................................................................... 48

Table 12 : System & Equipment Eciency Improvements Technology Summary ............................................................................................. 49

Figure 32 : System & Equipment Eciency Technology Plot .............................................................................................................................. 50

7.5 Optimized Resource Supply ......................................................................................................................................................... 50

Table 13 : Optimized Resource Supply Technology Summary ............................................................................................................................. 52

Figure 33 : Optimized Resource Supply Technology Plot..................................................................................................................................... 52

8 Statements o Interest........................................................................................................................................................ 53

Table 14 : Commercial Buildings SOI Summary ................................................................................................................................................... 53


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9 Investment Priorities ............................................................................................................................................................ 54

9.1 Near Term Investments............................................................................................................................................................ ......... 54

Table 15 : High Priority Near Term Investments ................................................................................................................................................... 54

Table 16 : Medium Priority Near Term Investments ............................................................................................................................................. 54

9.2 Long Term Investments ......................................................................................................................................................... ........... 54

Table 17 : High Priority Long Term Investments................................................................................................................................................... 54

Table 18 : Medium Priority Long Term Investments ............................................................................................................................................ 55

9.3 National Strategy Impacts ............................................................................................................................................................. 55

9.3.1 Sustainable Buildings Policy ............................................................................................................................................... 55

10 Acknowledgements ....................................................................................................................................................... ......... 57

11 Endnotes .......................................................................................................................................................... ........................................ 58


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Copyright 2007 by SDTC Sustainable Development Business Case

1 Overview o SD Business CaseTM

Sustainable Development Technology Canada is a oundation created by the Government o Canada that operates a $550 million und to support the

development and demonstration o clean technologies solutions that address issues o climate change, clean air, clean water, and clean soil to deliver

environmental, economic and health benets to Canadians.

SDTC is pleased to present this Commercial Buildings Eco-Eciency Investment Report, which is one in a series on the current state o sustainable

development and uture investment priorities in Canada. This report is the result o collaboration rom a wide range o stakeholders. It is based on reports

studies, and research ndings by various industry associations and government initiatives. We hope you nd the inormation useul, and look orward to

working with you as we urther sustainability in Canada.

1.1 The SD Business Case Plan

SDTC invests in areas where Canada has a strong capability, or potential, and where SDTC can provide the most value. To that end, SDTC has developed a

comprehensive evaluation and decision-support process that investigates various technologies, their markets, the needs they address, and the barriers they

must overcome to achieve market success.

The SD Business CaseTM is ounded on the concept o creating a common vision o market potential, as described by those in the industry. It

incorporates their ideas, expectations and knowledge into a single statement o purpose, so that the outcomes are relevant, pragmatic, andrealizable. There are many dierent approaches that could be used to analyze individual technologies or economic sub-sectors. Each stakeholder group

has unique challenges and expectations, which are expressed and analyzed to suit their own needs. With this in mind, the SD Business CaseTM has

been developed to provide a common benchmark or all participants, as well as a consistent and reliable means o comparing technologies in a number

o diverse and expanding areas. The SD Business CaseTM serves as a guide to SDTC or uture technology investment priorities as well as a means o

collecting non-technology input that may be useul in addressing public policy issues.

Work on the SD Business CaseTM could not have been done without the participation and guidance o opinion leaders and experts throughout the

country. The philosophy at SDTC is to work with and through others and SDTC is thankul to individuals or their assistance and contributions to the

success o the SD Business CaseTM.

1.1.1 Primary Audience

The primary audiences or the SD Business CaseTM include:

Industry Stakeholders To help them identiy key sectoral challenges and priority areas or potential uture investment, and to assist in

partnering with SDTC.

Canadian Researchers To assist in providing direction and ocus or successul uture endeavors including indicators o the key challenges to

be addressed in priority technology areas as they enter or exit the development and demonstration stages o the commercialization process.

Relevant Government Departments To provide a comprehensive decision making ramework to assist with technology investment

priorities or its key stakeholders and unding bodies. The SD Business CaseTM may also be used to help identiy and manage technologicalissues that are beyond SDTCs immediate mandate, as well as non-technical market barriers that can be addressed by other players, policies,

unding sources, and nancial instruments.

Other Stakeholders To provide a clear and consistent inormation base on relevant technology sectors, and an open dialogue on non-

technology issues acing companies in a number o Canadian economic sectors.

SDTC To highlight areas o priority attention or uture investment ocus and investigation.


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1.1.2 The SDTC STAR Tool

TheSustainable Technology Assessment Roadmap (STARTM) is an analytical tool that is used to produce the SD Business CaseTM reports. It is an

iterative analytical process that combines data, reports, stakeholder input, and industry intelligence in a common inormation platorm. It uses a series o

criteria selection screens to assess and sort relevant inormation rom a variety o sources. The output is a series o Investment Reports that highlight key

technology investment opportunities or each sector under study.

1.1.3 Sectors to be assessed by the SD Business Case

The overall SD Business CaseTM project ocuses on seven o Canadas primary economic sectors. An illustrated version o the ull project and master

roadmap, Figure 1, highlights the selected areas o study.

Energy Exploration & Production Including Clean Conventional ossil uels and Renewable Fuels (bio-uels, hydrogen production and

purication). Renewable Electricity and Renewable Fuels are linked as they share a number o technological platorms.

Power Generation Including Clean Conventional and Renewable Electricity Generation (wind, solar PV, bioelectricity and stationary uel cells).

Energy Utilization Improving the eectiveness o the application o current end-use technologies in industrial, commercial and residential

sectors and improving energy eciency.

Transportation Including Systems Eciency and Fuel Switching. Fuel Switching and Renewable Fuels are linked as they share a number o

technological platorms.

Agriculture Addressing solid waste or Biomass conversion to Fuels and eliminating air and water contaminants produced by manure.

Forestry and Wood Products Addressing development o wood waste recycling technologies to harness energy resource potential, reduce

emissions and improve productivity and prots.

Waste Management Addressing the various orms o waste management rom municipal (residential and commercial) and primary and

secondary industrial sources.

Note:

Some o these sectors may be covered through work in other sectors. For example, many Agriculture and Forestry technologies are common to

Renewable Fuels in the Energy Exploration and Production Sector.


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Figure 1 : SD Business CaseInvestment Roadmap

Energy

Exploration &Production

PowerGeneration

Energy

Utilization

Transportation

Agriculture

Forestry

WasteManagement

Economic Sector Sub-sector Segments Products & Processes

HVAC

Water Heating

Motors & Controls

Auxiliary Equipment

HVAC

Lighting

Domestic

Paper

Plastic

Metal/Glass

Organic

Other

Residential

Energy

Water

Solid Waste

Indust rial

Commercial

Eco-Efficiency

SD Business CaseTM is a trade mark of Canada Foundation for Sustainable Development Technology.



1.1.4 Investment Categories to be Analyzed

The SD Business CaseTM provides conclusions in three primary categories o investment opportunities:

Short Term Investment Priorities These are investments that could be made within the next 2-6 years that could have a direct and

positive impact on the market over the ollowing 4-8 years.

Long-Term Investment Priorities These are early stage investments that could be made within the next 2-6 years but where the

environmental impacts are realized over the longer term (more than 8 years).

National Strategy Impacts Although it is not in SDTCs mandate to advance policy initiatives, over the course o developing the

SD Business Case a number o policy related enablers and barriers to the development and implementation o sustainable technologies

have been identied. A summary o these issues and their potential impact on Canadas ability to meet its environmental goals is included in

the analysis.

1.1.5 Conclusions Framework

The SD Business Case is a consistent, reerenced set o recommendations and investment indicators which can be used by stakeholders to support

investment opportunities and priorities. The range o technologies and the assessment o their potential impact is too large and complex to simpliy

to a single number, answer, result or solution. The output should be viewed within the context o the inormation collected during the business casedevelopment process. Contributors to the business case have made every eort to be as objective, comprehensive and analytical as possible. Although

based on rigorous analysis o the best available inormation, the SD Business Case serves only as an indicator o investment priorities; it is not to be

used as a denitive tool to accept or reject individual projects or technologies. Final decisions on whether SDTC will invest will be made by taking into

account all relevant conditions and opportunities.


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1.2 The SDTC STAR Process: Data Collection and Analysis

The STARTM process uses a vision-based, needs-driven approach: it begins with an industry vision o where the sector is anticipated to be at some

dened point in the uture, and then identies the most critical requirements that should be satised in order to achieve the stated vision.

Figure 2 : The SDTC STAR Process

Industry Vision

SDTC SOIsStakeholder Input Market Data Reports & Studies

Industry Entrepreneurs

Government Depts. & Agencies

Financial Community

NGOsNeeds Assessment

Non-TechnicalTechnical

Information Input

Market Sustainability Technology

Detailed Analysis

MarketSustainability

Technology

InvestmentReport

Academia

1. Input :The STAR process starts off with a vision-based,needs-driven approach: it begins with anindustry vision of where the sector is anticipatedto be at some defined point in the future, andthen identifies the most critical requirements thatmust be satisfied in order to achieve thestated vision.

2. Assessment :By taking into account the technological, economic,

political, and societal forces that act upon a sector, theSTAR process can create a reasonably accurate picture ofthe market.

It can then assess the relative strengths, weaknesses andemerging opportunities of each market sector.

Finally, it calculates the gap between the current state ofthe sector and the vision, and identifies the specific thingsthat need to be done in order to fill the gap and achievethe vision.

3. Analysis :The lists of needs are applied to each technology area,where they are rated against a set of economic (i.e. cost

relative to conventional sources at time of market entry)and environmental criteria specific to SDTC's mandate.

4. Report :Since some of the issues surrounding the successfulcommercialization of emerging technologies are non-technicalin nature (i.e. policy-related issues), the STAR process capturesand prioritizes them to create a complete investment picture forintegration into the final Investment Report.

The above process is repeated for each area of study, until a complete picture of the market emerges to the satisfaction of SDTC and the key market stakeholders.SDTC STAR is a trade mark of Canada Foundation for Sustainable Development Technology.

By taking into account the technological, economic, political, and societal orces that act upon a sector, the STARTM process can create a reasonably

accurate picture o the market. It can then assess the relative strengths, weaknesses and emerging opportunities o each market sector. Finally, it

calculates the gap between the current state o the sector and the vision, and identies the specic things that need to be done in order to ll the gap

and achieve the vision.



The lists o needs are applied to each technology area, where they are rated against a set o economic criteria, (cost relative to conventional sources at

time o market entry), and environmental criteria specic to SDTCs mandate. Since some o the issues surrounding the successul commercialization o

emerging technologies are policy-related and non-technical in nature, the STARTM process captures and prioritizes them to create a complete investment

picture or integration into the nal Investment Report.

This process is repeated or each area o study, until a complete picture o the market emerges to the satisaction o SDTC and the key market stakeholders.

1.2.1 Assessment Descriptions

Once the market vision has been accepted, the economic sectors and their associated technologies are assessed through the ollowing screens:

Market

This ocuses on the ability o the market to use the emerging technologies that are currently at the development and demonstration stages. It identies

what needs to be done in order to maximize the application and acceptance o the technology, with a ocus on nancial and economic perormance.

The main components o the assessment are:

General Market Description An overview o the sector under consideration, with a comparison to conventional or competing sectors.

Market Potential An indication o the immediate growth potential or the sector under consideration.

The data is drawn rom industry literature and stakeholder eedback, and shows the theoretical and realizable potential as well as equipment installed

costs. Using linear extrapolation, it then estimates the anticipated potential over the target period. Due to the rapidly evolving nature o emerging

markets, it is necessary to conduct this assessment a number o times as conditions change. The primary purpose is to understand the gap between

todays situation and the vision or each sub-sector. This helps to determine the required rate o innovative developments and the amount and t iming o

capital placements.

There are three Market Assessment criteria used in the STARTM process;

Stage o Investment An assigned value, on a scale o 1-10, that takes into account market barriers, the amount o time expected or the

technology to achieve ull commercialization, market inrastructure issues and impediments, and current state o codes, standards and regulations.

Economic Eciency An assigned value, on a scale o 1-10, that takes into account technology spin-o potential, product replicability and

scale-up potential, market size and dynamics, competitiveness, pricing and nancing, and export potential.

Emissions Reduction Potential A calculated value o the dierence in GHG emissions between conventional technologies and the

alternative technologies within the sub-sectors under consideration. It is shown in megatonnes o carbon dioxide equivalent (MtCO2e) and is

the amount o CO2e expected to be reduced or displaced within the next two to six years as a consequence o commercializing the subject

technologies. GHG is a proxy used as a general indicator o emissions reductions since, or most technologies, there is a positive correlation

between GHG and other air emissions.


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Figure 3 : SDTC Funding Support

R & D

FundementalResearch

ProductPrototype

Development

SDTC

SDTC BRIDGES THE

FUNDING GAP

Demonstration Market-readyProducts

MarketEntry

COMMERCIALIZATION

Angel Investors

Venture Capital

Governments

Industry

Banks

SDTCs Mandate :The Market Assessment is conducted from the perspective of SDTCs mandate, which is to support the development and demonstration of emerging

sustainable technologies in Canada at critical stages in the development cycle. Specifically, SDTC is focused on those technologies that are between

prototype development and market-ready product stages. The size and span of the above blocks are indicative of the relative timing and amount of

funding from various sources.

Technology

This concentrates on the technologies that need to be brought to market in order to achieve the stated vision. There are 15 undamental ranking criteria,

which are weighted and rolled up into two principal impact criteria:

Economic Impact The developmental and nancial issues related to a specic technology that can/will infuence sector growth,

technological inter-dependencies, inrastructure improvement, and the cost o environmental improvement; and,

Environmental Impact The magnitude o the emissions reduction potential, reductions o regional environmental pollutants, the lie cycle

emission returns, and the time at which these emissions reductions are most likely to occur.

1.2.2 Output Structure

There are three main categories in the output: Vision and Needs, Market Assessment and Technology Assessment. The STARTM process also perorms a

Sustainability Assessment and Risk Assessment and combines the results rom all o these Assessments to develop the Investment Report conclusions.

Vision and Needs

The Vision Statement used in the STARTM process is derived rom inormation and direction rom within the industry being considered. This is in the

orm o individual interviews with key industry stakeholders, as well as internal and external reports, articles and statements published by and about the



industry. The Statement is reviewed by the stakeholders to conrm content accuracy, and help establish the realistic market potential o the technologies

being considered. The Vision Statement acts as the primary ocus or urther discussions and analysis within the STARTM process.

In the case o the commercial building industry, the vision is based on more ecient and environmentally acceptable resource utilization within the

sector. Energy (measured in petajoules PJ), water (measured in Litres L) and solid waste (measured in tonnes t) are the three resource areas that

are considered.

Market Assessment

The Market Assessment output data is presented in a Circle Chart, with Stage o Investmenton the X-axis, Economic Efciencyon the Y-axis, and

Emissions Reduction Potentialon the Z-axis. The Stage o SDTC Investment Cycle and Economic Efciencyanalyses consider a number o actors, which

are summarized below. The scores are based on a scale o 1 10: a high score indicates a t within the projected time rame and a high likelihood o

widespread market adoption.

Table 1 : Market Plot Indicators

Indicator Main Elements

Stage o SDTC Investment Cycle

Years to Market

Market Barriers

Inrastructure Issues

Codes and Regulations

Economic Eciency

Technology Spinos

Market Size and Dynamics

Market Demand

Competitiveness & Alternatives

Replicability / Dissemination / Export Market

Pricing and Financing

Circle Location In general, plots that show in the upper right-hand corner are considered attractive to private-sector investors because theyhave high Economic Efciencyand are near to market entry. Conversely, anything in the lower let-hand corner requires additional work to move

to the market-ready zone.

Circle Size The size o each circle represents the magnitude o the dierence in emissions between the base case and the alternative

case. GHGs, expressed in CO2e, are used as a proxy or all air-related emissions. In instances where there is a negative correlation amongst CO2e

and other orms o emissions (or example NOx acts inversely to CO2e in many combustion processes), these will be noted in the model or in the

actual technology as it is evaluated.

Circle Colour Each circle represents a dierent measure group and is identied by a colour in order to distinguish them on the plot.

By plotting the outcomes in this way it is possible to get an overall snapshot o the position and potential o each sub-sector relative to others.

Many o the emerging technologies have the capacity to also reduce regional pollutants and other environmental impacts: this inormation is captured

within STARTM, but is not illustrated separately on the market plot. Separate plots can be generated or these environmental aspects.


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Technology Assessment

This assessment ocuses on the technology plot position o each technology area. The position o each plot is the result o the numerical ranking o the

individual technological assessments. Each technology is mapped on a scatter graph, with Economic Impacton the X-axis and Environmental Impacton

the Y-axis (see Figure 4 on the ollowing page).

Table 2 : Technology Plot Indicators

Indicator Main Elements

Technology Development

Place on the Innovation Chain

Technological Requirements & Barriers

Technical Risk & Uncertainty

Technological Dependencies

Technology Spin-O Potential

Environmental Impact

GHG Emission Reduction Potential

CAC Emission Reduction Potential

Embedded Carbon Content

Lie Cycle Emission Returns

Time to Environmental Impact

Sectoral Impact

Disruptive Potential

Inrastructure Enhancement Potential

Time to Market Entry

Financial EectivenessPrice to Market

GHG Reduction Cost

The closer a technology plots to the upper right hand corner, the greater its potential relative to the other technologies. Technologies that are considered

a breakthrough or have a potentially disruptive impact1 are shown in red on the supporting table. Since STARTM is an iterative process, the plot values

change over time as new inormation becomes available, new technologies are developed, and sustainable markets continue to develop.



Figure 4 : Sample Technology Plot

Environmental Impacts

LOW

HIGH

HIGH

MEDIUM

MEDIUM

EconomicImpacts

1.2.3 Conclusions and Investment Priorities

The STARTM process concludes by combining the results rom the Vision and Needs, Market and Technology Assessments, and divides them into short and

long term priorities and strategic impacts.

Short-Term Investment Priorities These are investments that could be made within the next two to six years that could have a direct and

positive impact on the environment.

Long-Term Investment Priorities These are early stage investments that could be made within the next two to six years but that would

aid Canada in achieving its longer-term, emissions-reductions objectives. SDTC recognizes that the investments must be made now in order to

produce results in the uture.

National Strategy Impacts A summary is created outlining the potential impact that the investments may have on Canadas national

strategy including potential policy development to meet its climate change and sustainable development commitments.

The successul emergence o sustainable technologies in Canada will be largely dependant upon the resolution o a range o non-technical issues. These

issues, when combined with the technology issues and opportunities, could have a proound impact on Canadas national strategy.


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Important Notes to the Reader:

While these conclusions indicate areas to place emphasis, SDTC recognizes that it is not possible to anticipate all new technologies and their

impacts, and new technologies in areas or sectors not on the list are not excluded rom consideration.

The output o the Roadmap process is not a single digit, answer or result. It is a series o indicators that support a set o possible investment

opportunities, which can only be viewed within the context o the inormation provided. The nal investment decision must still be made by

accounting or all possible and relevant conditions and requirements, as viewed by the nal decision-maker. The contributors to the Roadmap

process have made every eort to be as objective, comprehensive and analytical as possible.

The numeric ratings used in the assessment process are relative; they are not absolute. For example, the Time to Market rating is based on a

scale o one to ten; it does not indicate the actual number o years to get to market. This approach is necessary to overcome the wide range o

qualiers associated with each projection made by industry and government. The one to ten scale provides a common benchmark approach.

Unless otherwise stated, the term market reers to the set o technology areas under examination as a direct result o a scoping exercise to

determine an appropriate breadth o coverage. It does not reer to an entire market.

Emerging Technologies that have not been included within any current sector assessment may be considered in uture upgrades and published

releases. SDTC will receive and evaluate opportunities in al l areas alling within the SDTC mandate. However, where there is insucient material

or interest identied, no assessment priority will be assigned to the STARTM tool.



2 Executive Summary

This SD Business CaseTM report ocuses on impacts o energy and water utilization and solid waste production on commercial building operations

in Canada. It examines market characteristics such as building size, construction and type, establishes a set o vision statements or the industry, and

identies the technologies that can help create more sustainable buildings in both the existing and uture stock.

The report covers all types o commercial buildings; including oces, institutional and public service such as health care and education, hospitality,

entertainment, and retail and wholesale trade. Together, they are simply reerred to as commercial. Multi-unit residential buildings (MURBs) are not

included in much o the analysis because they are classied as residential buildings by Natural Resources Canada (NRCan). However, many o the

technologies and issues do apply to MURBs. Some utilities and other organizations, usually or historical reasons, do not use statistical agency based nor

government policy and program based building classication systems. As such, caution must be used to avoid conusion in discussion o policy, program

and technology development, social or environmental issues.

The ocus o the analysis is on building operations. Although embodied energy, material selection, construction, and demolition are important in a lie

cycle approach to buildings, the largest environmental impacts are a result o the operation o buildings. Operations are the most important aspect o

commercial building eco-eciency analysis. SDTC understands the critical importance o a ull liecycle approach, and incorporates the entire building

liecycle considerations into individual project investment assessments on a case-by-case basis.

The technologies included in this report are applicable to most types o commercial buildings, but may be applied in dierent ways or dierent types obuildings. For example, advanced control system technologies used in a small oce building are likely to be quite dierent rom those required in a large

health care complex.

The baseline data used in the STARTM analysis is derived primarily rom NRCan sources. Every eort has been made to adjust or any discrepancies

between the data sources in order to establish the most reasonable baseline. The variations, while statistically signicant, do not impact the strategic

direction o the outcome or recommendations in this report. They do, however, highlight the need or consistent, reliable and comprehensive

perormance-based building data.

2.1 Commercial Buildings

In 2004 there were about 591 million m2 o commercial foor space in Canada, up rom 466 million m2 1990. There are currently about 395,000

commercial buildings in Canada, up rom approximately 380,000 in 2004.

2.1.1 Energy Utilization

In 2004, the commercial building sector accounted or about 14%, or 1,171 petajoules (PJ) o total secondary energy use in Canada. Electricity and

natural gas together made up about 85% o energy consumed, with about one hal (52%) o the energy going to space heating.

Between 1990 and 2004 commercial energy consumption increased by 35% (rom 867 PJ to 1,171 PJ). 72% o the increase was due to a change in

activity level driven by an increase in total foor area.

Floor area only increased by 27% over the ourteen year period. Energy use intensityincreased rom 1.47 GJ/m2 to 1.60 GJ/m2. This occurred despite a 3PJ reduction due to energy conservation eorts and a decrease in weather-related heating requirements . At present growth rates, energy use could rise

to about 1,698 PJ, and energy use intensity to 2.16 GJ/m2, by 2030.

Energy-related GHG emissions in the commercial sector increased by 42% rom about 48 MtCO2e to 68 MtCO2e between 1990 and 2004. Similarly,

energy related GHG emissions intensity rose rom 0.10 tCO2e/m2 to 0.12 tCO2e/m2, and is projected to reach 0.14 tCO2e/m2 (110 MtCO2e) by 2030. Energy

conservation eorts over this period resulted in a 0.2 MtCO2e drop in emissions.


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2.1.2 Water Consumption

Water consumption in the commercial building sector rose rom 2.3 billion litres per day to about 2.8 BL/day between 1983 and 1999. The sector

currently consumes about 1.2 trillion litres per year o municipally-treated water. All o this water is chemically treated and puried to potable water

quality, irrespective o how it is used. It is currently used to run mechanical equipment, fush toilets and water landscaping: only a small portion is used

or human consumption. Very little water is recycled or supplied rom other sources such as rainwater.

2.1.3 Solid Waste Production

In 2004, commercial buildings generated about 14.26 Mt o solid waste. Approximately 78% o that is disposed o, and 22% was diverted or

recycled. Paper products and organic material make up about two thirds o the solid waste stream. The types o technologies used to minimize waste

disposal are quite dierent or the dierent components o solid waste. The thermo-chemical processes oten used to treat metal wastes are quite

dierent rom biological processes used to treat organic wastes.

2.2 Commercial Buildings Vision Statements

The ollowing industry vision statements have been derived rom industry stakeholder input as well as key government and industry reports and articles.

2.2.1 Energy

By 2030 commercial buildings in Canada will consume 0.98 GJ/m2 o energy, creating 0.0587 tCO2e/m2 o GHG emissions, a 50% reduction in energy

intensity rom the current level o 1.97GJ/m2, resulting in an overall reduction o 1,093 PJ o energy and 74 Mt CO2e o GHG emissions per year rom

projected Business As Usualtrend levels.

2.2.2 Water

By 2030, commercial buildings in Canada will consume 712 L/m 2 o municipal water, a 65% reduction rom the 2007 level o 2,033 L/m2, resulting in an

overall reduction o 1,409 BL o water per year rom projected levels.

2.2.3 Solid Waste

By 2030, commercial buildings in Canada will produce 1.71 kg/m2 o solid waste, an 85% reduction rom the 2007 level o 11.4 kg/m2, resulting in an

overall reduction o 14.8 Mt o solid waste per year rom projected levels.

In order to achieve the visions a number o technology as well as non-technology needs must be satised. The vision statements revolve around the

overall need or a comprehensive and integrated process o building design, construction and operation.

2.3 Non-Technical Needs

Price on Carbon Industry stakeholders agree that the single-largest driver o sustainable buildings could be a realistic and consistent

price on ossil uel based carbon. Since the operation o buildings is very carbon-dependent, establishing a price on carbon could drive the

development and use o materials and processes that have low embodied energy and operating systems which minimize consumption o ossil

uel based energy.

Integrated Supply Chain Developing high-perormance commercial buildings requires close collaboration among building owners,

nanciers, architects, engineers, contractors, suppliers, managers and operators, municipalities, and utilities. There needs to be greater agreement

on the system requirements as well as the economic, resource, productivity, and recyclability perormance o buildings.



Integrated Building Practices There is a need or integrated practices in regional planning, project nancing and compensation,

construction and building operation. This includes an holistic approach to regional planning, integrated design and construction pract ices,

improved nancial procedures and more eective methods o compensation.

Improved Building Code & Greater Enorcement The lack o standard protocols or interoperability, inconsistent and sometimes

inadequate enorcement o perormance standards and outmoded or restrictive building codes, all contribute to the inecient design and

operation o commercial buildings. Industry stakeholders agree that a more advanced building code, such as the Model National Energy Code or

Buildings, is urgently needed. It must be suppor ted by stronger enorcement measures that are updated on a regular basis. A new Sustainability

Code should also be developed to encompass the complete eco-eciency concept.

Continuous Reporting There is a need or measurable, deensible, and reproducible nancial assessments, based on realistic building

perormance data. Anecdotal evidence, while valuable, is not sucient to spark widespread adoption o the sustainable buildings approach,

particularly given the large investments and risks involved in most commercial buildings.

Inormation Exchange Building designers need to learn rom the experiences rom the installation and long-term operation o high

perormance buildings. There is little ormal inormation exchange between key building players. A centralized inormation exchange, similar to

the ones in the United States and Europe, could be developed in Canada.

Sustainability Ethic in Education A number o new and innovative sustainability programs are beginning to emerge in Canadas post-secondary education institutions. While they are essential to creating a new sustainability ethic in Canada, they have been criticized by some

as being too narrow in scope. They argue that sustainability is treated as a distinct area o study, and is not integrated throughout the course

curriculum.

2.4 Technical Needs

The technology-based needs are condensed into ve groups. Each group consists o a number o measures, or technology areas, that help satisy the

needs o the group. The groups are interrelated and a change in one area will oten cause a change in another area.

Integrated Building Design This reers to the process o designing and siting sustainable buildings while optimizing resource use, building

unctionality, and occupant comort. The measures are built around the central theme o the integrated design process.

Building Envelope Improvements There is a need to implement best available and best emerging technologies as well as a need or next

generation building envelope technologies to minimize thermal transer and maximize the use o available natural resources. The technologies in

this group include improved building abric, oundation, glazing, doors and openings, and insulating materials.

Operator & Occupant Management Tools There is a need or technologies that help building operators and occupants be aware o, and

respond to, individual resource consumption, while maintaining or improving indoor environmental quality. This group is unique in that the

improvements are contingent upon human behaviour while the building is being utilized. Technologies play a supportive role by providing the

eedback and control to modiy and improve behaviours.

System & Equipment Eciency Improvements This involves the application o high eciency mechanical and electrical equipment usedthroughout the building.


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Optimized Resource Supply This involves optimizing the supply o conventional resources, maximizing the use o available natural

resources, and the reuse o existing building resources.

Conventional Resource Supply This reers to the supply o conventional, but more ecient, sources o energy and water. It includes

district energy, on-site energy production, and more ecient supply o treated water.

On-Site Renewable Resource Supply This ocuses on the technologies that can generate electricity and/or thermal energy and supply

water rom natural resources available on the building site, such as integrated solar PV systems, roo-top wind turbines, and rainwater

collection and treatment systems.

On-Site Resource Recovery and Renewal This includes the technologies that oset the requirement or new resource supplies by

renewing and reusing a port ion o the resources already consumed in the building. The renewed resources would be used in a secondary

application ollowing their initial primary use. Examples include greywater re-treatment, o-grid sanitary sewage systems (e.g. on-site

composting), and on-site solid waste recycling (e.g. on-site thermo-chemical or biological processing plants that convert solid waste into

useul products).

2.5 Investment Priorities

The analysis identied 10 high priority and 9 medium priority investment opportunities or the near term. Investments could be placed now and be

expected to yield tangible results in the next ew years. Over the longer term, the analysis identied 2 high priority and 5 medium priority investment

opportunities. These would require placements now in order to achieve results over the longer term.

By placing strategic investments in the high potential opportunities identied in this report, SDTC can accelerate the implementation o emerging

technologies into the Canadian market.



3 ReportScope and Approach

3.1 Report Scope

This SD Business CaseTM report ocuses on impacts o resource utilization in the operation o commercial/institutional buildings in Canada2. It examines

building characteristics (location, size and operations) and identies the direct and enabling technologies that can help create more sustainable buildings

in both the existing and uture building stock.

3.1.1 Commercial Building Classication

It covers all types o commercial and institutional buildings, and ollows the NRCan approach to classiying buildings.

Wholesale and Warehousing

Retail Trade

Inormation and Cultural Industries

Oces

Educational Services

Health Care and Social Assistance

Accommodation and Food Services

Other Services

Together, they are simply reerred to as commercial in this report. There are two notable sub-sector exclusions:

Multi-unit residential buildings (MURBs) are not included in this report. However, many conclusions and technology priorities can be applied to

MURBs. The main dierences are the hours o operation (residential peak load typically occurs ater the commercial peak load) and equipment type and

use (e.g. bathing, heating and air conditioning, dishwashers, clothes washers and driers, etc.). These actors infuence the utility rate structures applied to

MURBs. Individual residential units are typically, but not always, billed at the residential rate, but the core building, which includes exterior lighting and

heating and ventilation o corridors and common areas, is billed at the commercial rate. I MURBs were included in the commercial sector, they would

represent an energy consumption o about 180 PJ/yr, or 13% o the total consumption.

Industrial buildings are also excluded rom the analysis because the unctionality and operating characteristics are distinctly dierent rom other

commercial buildings. For example, a building used in the steel-making industry has dierent operating characteristics than a high-rise oce

building: one is driven by industrial process requirements and the other is driven by human comort requirements. The type, size and durability o the

mechanical and electrical systems are also very dierent. Thereore, the building structures used in industrial operations would be treated as a sub-set o

Industrial Utilization, which will be a separate SDTC Business CaseTM report.

Although the NRCan, Oce o Energy Eciency approach is used in this report, it must be noted that there is no standard commercial building

classication system in Canada. Utilities, regulators, building designers and engineers use various classication systems. There does not appear to bea building condition classication system. Data regarding building age and equipment type is available, but there is nothing to link this to building

perormance or building sustainability.

3.1.2 Operational Focus

Resources are consumed, and waste is produced, throughout the entire liecycle o a building. However, the vast majority o the resources are consumed

during the operational lie o the building. The ollowing gure shows the relative amounts o energy used throughout the entire liecycle: the largest

amount is Operating Energy versus embodied energy during construction and demolition.


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Figure 5 : Commercial Building Liecycle Energy Consumption

6.2%

8.3%

85.5%

Initial Embodied Energy

(Acquisition of materials

and construction)

Recurring EmbodiedEnergy (Maintenance and

refurbishment)

Operating Energy (Regular

building operation)

Source:http://www.canadianarchitect.com/as/perspectives_sustainibility/measures_o_sustainablity/measures_o_sustainablity_embodied.htm

Derived rom Lie-Cycle Energy Use in Oce Buildings Building and Environment by Cole,R.J.and Kernan,P.C.(1996),Published in,Vol.31,No.4,pp.307-317.

This ocus does not diminish the importance o construction and demolition, but it can provide a useul starting point or commercial building resource

utilization analysis.

As a matter o standard practice, SDTC considers the ull liecycle impacts o all the technologies under consideration, in all sectors. The complexity and

availability o this inormation or a given technology or sector will oten dictate how much is contained in the SD Business CaseTM report. Future

iterations o the Commercial Building Eco-Eciency STARTM process may delve urther into the entire building liecycle.

3.1.3 Technology Applications

The technologies outlined in this report generally apply to all commercial buildings, but may be used in dierent ways or with diering degrees o

complexity. For example, advanced control systems may be required or all types o buildings. But the cost, complexity and degree o sophistication can

vary considerably (i.e. small oce buildings dont require the same level o sophistication as large health care institutions). It is assumed in this report

that all o the stated technology areas can be applied to all types o commercial buildings, but in varying ways.

3.1.4 Strategic Approach

In order to achieve true sustainability in the Canadian commercial buildings sector, it is acknowledged that a comprehensive strategy is required. Figure 6

illustrates how this could possibly work.

The market consists o low perormers (those that barely meet minimum code requirements), average perormers (those that can exceed minimum

standards and employ some high perormance technologies), and high perormers (those that embrace the sustainability ethic and extensively employ

high perormance technologies). The strategy involves expanding and improving standards to push up the low perormers, and market or government

incentives to pull up the high per ormers. The eect will be to move the large centre (average perormers) upwards.



Figure 6 : Sustainable Buildings Strategy

Present Future

Average Performers

Low Performers

High Performers

Low Performers

Average Performers

High Performers

BuildingS

ustainability

Incentives Pull Up

High Performers

Codes & Standards

Push Up Low

Performers

3.1.5 Data Sources

A number o reports, studies, and data sources were used in the STARTM analysis and the creation o this report. The primary analysis data was drawn

rom three main sources rom the Ofce o Energy Efciencyat NRCan:

Comprehensive Energy Use Database: Commercial/Institutional Sector (NRCan website database).

Commercial & Institutional Consumption o Energy Survey 2004, December 2005.

Energy Eciency Trends in Canada 1990-2004, August 2006.

These reports provide a detailed picture o energy consumption and GHG emissions production in the commercial sector in Canada. However, there are

notable discrepancies between the web-based data, earlier versions o the energy use surveys, and the latest energy survey reports. Specically, there

are substantial dierences regarding occupied foor area, energy intensity, and total number o buildings. The discrepancies are largely due to the way

in which the raw data is supplied. In some reports, energy data is applied to the commercial sector: that is, broad macro-economic data is rst applied

to the major sectors (e.g. Industry and transportation) and the remaining, or residual, data is apportioned to the smaller sectors (such as commercial

buildings). This top-down approach can result in signicant dierences between the residual data and the actual per ormance data rom the sector.

There are many end use or technology based analyses applicable to commercial buildings but the lack o broad based or national inventory o theimportant characteristics o bui ldings prevents calculation o the impacts o implementation o innovations. The lack o consistent, comprehensive and

reliable inormation highlights the need or more per ormance-based data within the sector. Policy makers need it or developing better regulations

and incentives, power authorities need it or energy and demand management initiatives and owners need it or better branding/eco-labeling. Enabling

technologies, such as intelligent building systems and real-time reporting, could help ll this gap.


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4 Background

4.1 Commercial Building Stock

4.1.1 Building Type

In 2004, there were about 591 million m2 o commercial foor space in Canada3, up rom 466 million m2 recorded in 1990. Growth has been almost

linear. An extrapolation o the data suggests that there are currently about 395,000 buildings (up rom approximately 380,000 in 2004)4, covering

613 million m2 o foor area5.

Table 3 shows the total foor area and number o buildings in each o the eight building sub-sectors identied by NRCan.

Table 3 : Building Type by End Use in 2004

End Use Floor Area (Mm2) Number o Buildings

Educational Services 121 15,808

Other Services 109 68,096

Oces 108 82,029

Retail Trade 76 96,911Wholesale and Warehousing 72 38,887

Health Care and Social Assistance 68 33,384

Accommodation and Food Services 29 38,306

Inormation and Cultural Industries 8 6,510

Total 591 379,931

Note: Educational Services,the largest sub-sector by foor area (121 Mm2),has relatively ew buildings (15,808).

Source: Commercial and Institutional Consumption o Energy Survey: 2004. Natural Resources o Canada.Oce o Energy Eciency.December,2005.

4.1.2 Building Age

Only 34% o commercial buildings were built since the rst two energy crises in the 1970s which prompted the development and use o improved

building technologies. 17% were built between 1990 and 2000.

Figure 7 : Commercial Buildings by Age

6%

19%

14%

27%

17%

17%Before 1920

1920-1959

1960-1969

1970-1979

1980-1989

1990-1999

Source:http://www.oee.nrcan.gc.ca/corporate/statistics/neud/dpa/data_e/cibeus_description.cm?attr=0



This shows that the greatest proportion o commercial buildings were constructed using techniques and technologies that were below present common

practice and did not use any o the improved materials, techniques, equipment and systems developed and made available in the recent past. The age o

the existing building stock has an impact on the types o technologies that could be moved orward in the near term.

4.1.3 Building Activity

New buildings are coming on line at the rate o about 1%/yr., although foor area is growing at about 2.7%/yr. Old building stock is retrotted at the rate

o about 2.2%/yr6, representing about a $20 billion/yr retrot industry in Canada. At the current retrot rate, approximately 50% o the existing building

stock could be upgraded by the year 2030. This is a substantial market opportunity or potential investors, and could provide the nancial momentumrequired or Canada to move towards more sustainable buildings.

4.2 Resource Utilization

4.2.1 Energy End-Use

Energy is used to heat and cool buildings and run auxiliary systems. In 2004, the commercial building sector accounted or 13.7%, or 1,171 petajoules

(PJ)7 o total secondary8 energy end-use in Canada.

Figure 8 : Total End-Use Energy by Sector in 2004

17%

14%

38%

29%

2%

Residential

Commercial

Industrial

Transportation

Agriculture

Source: Energy Efciency Trends in Canada, 1990 to 2004 .Natural Resources Canada.Oce o Energy Eciency.August,2006.

Figure 9 : Commercial End-Use Energy by Source in 2004

4 1 %

4 4 %

8 %

4 %3%

Electricity

Natural Gas

Light Fuel Oil

Heavy Fuel Oil

Steam (0%)

Other

Source: Energy Efciency Trends in Canada, 1990 to 2004 .Natural Resources Canada.Oce o Energy Eciency.August,2006.


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In 2004, electricity and natural gas together made up about 85% o all the energy consumed in commercial buildings.

The ollowing gure illustrates the relationship between where the energy comes rom, and how it is typically used.

Figure 10 : Energy Sources and Uses

Oil / Coal

Natural Gas

Biofuels

Sunlight

Hydro Power Electricity

Natural Gas

Oil / Coal

BiofuelsSunlight

Space Cooling

Motors & Controls

LightingSpace Heating

Auxiliary Equipment

Water Heating

Space Heating

Water Heating

This relationship plays a key role in developing energy reduction strategies and assessing the impacts on natural resources. For example, reducing

electricity consumption can reduce the amount o coal required to generate electricity initially, and can reduce airborne emissions. The amount

o reduction depends on the uel quality (e.g. type and grade o coal) and the uel mix (e.g. natural gas and coal) at any point during electricity

generation. Electricity production or the grid is not part o this report.

4.2.2 Energy Use by System TypeThere are six types o energy-consuming systems used in buildings. The largest o these is space heating, which accounts or more than one hal (52%) o

energy use in this sector. The second-largest load is auxiliary equipment9 at about 14%. Together, space heating, auxiliary equipment and lighting make

up over 75% o all the energy consumed in commercial buildings.

Table 4 : Commercial Energy End-Use by System Type in 2004

System Brie Description Energy Use (PJ) Energy Use (%)

Space HeatingIncludes thermal combustion and electric heating systems (e.g. boilers), make-up air heaters(e.g. pre-heating incoming air), and heat distribution.

614 52

Auxiliary Equipment Personal and portable electronic devices, task lighting, security systems etc. 165 14

Lighting Lighting o common spaces and individual work spaces as well as ex terior, securit y and public spaces. 115 10

Water Heating Primarily domestic hot water or cleaning, cooking and bathing. 103 9

Motors & Controls Pump and an motors, as well as elevator and escalator motors. 97 8

Space Cooling Primarily electrically-driven rerigerant compressors (e.g. chillers). 69 6

Other This is an adjustment actor to account or the discrepancy in the data sources. 8 1

Total 1,171 100

Source:Energy Efciency Trends in Canada, 1990 to 2004 .Natural Resources Canada.Oce o Energy Eciency.August,2006.



All gures represent end-use operations consumption and are exclusive o embodied energy.

4.2.3 Energy Use Trends

Between 1990 and 2004, (14 years), total energy consumption in commercial buildings in Canada rose rom 867 PJ to 1,171 PJ: an increase o 35%, or

about 2.5% per year.

Figure 11 : Commercial Energy Use or 1990-2004

Year

800850

900

950

1,000

1,050

1,100

1,150

1,200

1990 1992 1994 1996 1998 2000 20021991 1993 1995 1997 1999 2001 2003 2004

CommercialEnergyUse(PJ)

Source: 2004 Commercial and Institutional Consumption o Energy Survey. Natural Resources Canada.Published December, 2005. http://oee.nrcan.gc.ca/Publications/statistics/cices05/pd/cices05.pd

NRCan has identied ve possible causes or the increase.

Activity Eect Caused by the change in occupied foor area, and activity levels.

Service Level Eect The change in auxiliary equipment load resulting rom a change in activity and the change in auxiliary equipment density(the number o auxiliary devices per user).

Weather Eect Fluctuations in weather patterns which infuence heating and cooling loads.

Structure Eect Changes in the makeup o the sector. For example, a decrease in the Health Care sub-sector may result in an increase in the

Ofces sub-sector, as services unctions are done in oces rather than health acilities.

Energy Conservation Eect The impact o energy conservation and increased energy eciency eorts.

O the 304.2 PJ total increase in energy consumption during the 1990-2004 period, approximately 218.6 PJ (72%) was due to an increase in the Activity

Eect, ollowed by Service Level Eect(75.5 PJ).


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Figure 12 : Impacts on Commercial Energy Use or 1990-2004

218.6

75.5

11.03.3 -3.0 -1.0

-50

0

50

100

150

200

250

ActivityEffect

Service LevelEffect

WeatherEffect

StructuralEffect

Energy EfficiencyEffect

Other

EnergyUse

(PJ)

Source: Energy Efciency Trends in Canada, 1990 to 2004 . Natural Resources Canada. Oce o Energy Eciency. August,2006.

Activity Eect

Between 1990 and 2004, total foor space o commercial buildings increased 27% rom 466 million m2 to about 590 million m2, resulting in a 218.6 PJ

increase in energy use. However, the energy use rose at a greater rate than the increase in foor area.

Figure 13 : Commercial Energy Use and Floor Area or 1990-2004

0

1 0 0

2 0 0

3 0 0

4 0 0

5 0 0

6 0 0

7 0 0

0

1 00

2 00

3 00

4 00

5 00

6 00

7 00

8 00

9 00

1,000

Total Floor Area (Mm2)

Energy Utilization (PJ)

Year

1990 1992 1994 1996 1998 2000 20021991 1993 1995 1997 1999 2001 2003 2004

Source: Commercial and Institutional Consumption o Energy Survey: 2004. Natural Resources o Canada.Oce o Energy Eciency.December,2005.



By accounting or the eects o increased foor area, the energy use intensity is shown. The energy use intensity rose rom 1.47 GJ/m2 to 1.60 GJ/m2

between 1990 and 2004, despite more ecient building components and energy conservation eorts.

Figure 14 : Commercial Energy Use Intensity or 1990-2004

CommercialEnergyUseIntensity

(GJ/m2)

Year

1990 1992 1994 1996 1998 2000 20021991 1993 1995 1997 1999 2001 2003 20041.30

1.35

1.40

1.45

1.50

1.55

1.60

1.65

Note: Energy intensity is the total energy consumed (GJ) per square meter o foor space.

Service Level Eect (Auxiliary Equipment)

This includes personal computers, servers, printers, axes, copiers, personal communication devices, coee makers, small rerigerators and portable task

lighting. The energy load eect is two-old; there is an increase in electrical demand to run the devices and, since most o the devices give o heat, there

is an increase in cooling load and decrease in the heating load. Between1990 and 2004, the auxiliary equipment load rose by about 105%, and in 1999

surpassed lighting as the second-largest load in commercial buildings.

TheService Level Eectis closely associated with occupant behaviour. It includes the infuences o system operators and managers who are responsible ormaintaining and controlling the equipment, and building tenants, who create the demands on the conditioned space.

Weather Eect

With commercial buildings there is a direct link between outside air temperature and energy consumption. As the outside air temperature drops below

a desired setpoint, there is a proportional increase in the demand or space heating. This results in an increase in uel consumption or heating and

electricity consumption required to drive the ancillary HVAC equipment. As the outside air temperature rises above the desired setpoint, there is an

increased demand or space cooling. Most air conditioning systems are elect

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