Structured Intelligence
Just a few short years ago, the booming real estate market made anything seem possible, from residential communities designed with onsite power to work off the grid, to new commercial facilities that promised to reach new levels of “sustainability” and “green cred.” In a 2007 report entitled “The Greening of US Investment Real Estate—Market Fundamentals, Prospects, and Opportunities,” global institutional property manager RREEF concluded that “green building is fundamentally altering real estate market dynamics.”
How times have changed! Green building and sustainability are still buzzwords, but now that funding has dried up and credit is nonexistent, new projects of every color have been abandoned in favor of simpler solutions. The stimulus bill promised some relief, but its emphasis on weatherization and improvements to existing infrastructure reset priorities, putting rehabilitation and retrofits at the top of the list.
Which makes sense. In an era with reduced and compromised resources (including funding), focusing on new buildings and projects is ill advised. Drive down any commercial or residential street, and you’re bound to see old, creaky buildings constructed at a time when other needs trumped efficiency. Many of our existing structures were not built with an eye towards energy conservation, and because many of these 20- to 30-year-old buildings have never been upgraded, they are still operating with energy footprints on par with expectations set decades ago.
Striking a balance between supply and demand is always a challenge, but in Texas the contrast between energy production and energy efficiency is especially stark. In The Home Energy Efficiency Report (2008), Susan Combs, Texas Comptroller of Public Accounts points out that “Texas leads the nation in energy production, producing more crude oil, natural gas, electricity, and wind power than any other state,” but that the state “also leads in consumption.” In studies conducted by both the DOE and the Texas State Energy Office, the Texas dichotomy is clear: The state ranks fifth in the nation for residential electricity consumption, while at the same time taking the top two spots for energy production (ranking number two in the nation for wind and solar).
Increasing energy costs and decreasing revenues (coupled by falling real estate values) has spurred the state into action. As Combs herself declares, “With typical Texas ingenuity and know-how, the Lone Star State will again lead the nation in exploring and harnessing the “newest” energy resource—energy efficiency.”
In Austin, this “lone star know how” has already taken shape, and it’s a success story that can be easily replicated throughout the country. By embracing a set of regulations and programs aimed at both residential and commercial buildings, Austin’s energy efficiency programs have yielded very tangible results. Capitalizing on 0% loans offered by the city for structure upgrades (which have been combined with policies aimed at encouraging renewable energy) over 23,000 customers have reduced their energy use by 38 million kWh (for a total savings of $3 million).
Additionally, Austin now requires energy audits to be performed on any residential or commercial property before it can be sold. The audits must be performed by individuals certified by the Building Performance Institute and must cover every thing from insulation to HVAC systems. The audit ordinance is just one part of an overall energy initiative aimed at shrinking demand, minimizing the need for new power plants, and reducing the city’s carbon footprint.
New “green” construction and high-performance buildings may be the future of energy efficiency, but it makes sense for us to focus first on improving structures that are already standing—our drafty, aging buildings that are energy sinkholes. By capitalizing on what Combs refers to as “our ‘newest’ energy resource,” we can parlay an emphasis on energy efficiency in existing structures into a foundation for our “smart building” future: a future comprised of houses and commercial centers designed holistically where all energy resources are used and managed efficiently.
Click here for more on Texas energy initiatives.
Advertisement
To find out how your state ranks, take a look at: www.energy.gov (your state).
Author's Bio: Elizabeth Cutright is the Editor of Distributed Energy Magazine
November-December 2009
Structured Intelligence
Just a few short years ago, the booming real estate market made anything seem possible, from residential communities designed with onsite power to work off the grid, to new commercial facilities that promised to reach new levels of “sustainability” and “green cred.” In a 2007 report entitled “The Greening of US Investment Real Estate—Market Fundamentals, Prospects, and Opportunities,” global institutional property manager RREEF concluded that “green building is fundamentally altering real estate market dynamics.”
How times have changed! Green building and sustainability are still buzzwords, but now that funding has dried up and credit is nonexistent, new projects of every color have been abandoned in favor of simpler solutions. The stimulus bill promised some relief, but its emphasis on weatherization and improvements to existing infrastructure reset priorities, putting rehabilitation and retrofits at the top of the list.
Which makes sense. In an era with reduced and compromised resources (including funding), focusing on new buildings and projects is ill advised. Drive down any commercial or residential street, and you’re bound to see old, creaky buildings constructed at a time when other needs trumped efficiency. Many of our existing structures were not built with an eye towards energy conservation, and because many of these 20- to 30-year-old buildings have never been upgraded, they are still operating with energy footprints on par with expectations set decades ago.
Striking a balance between supply and demand is always a challenge, but in Texas the contrast between energy production and energy efficiency is especially stark. In The Home Energy Efficiency Report (2008), Susan Combs, Texas Comptroller of Public Accounts points out that “Texas leads the nation in energy production, producing more crude oil, natural gas, electricity, and wind power than any other state,” but that the state “also leads in consumption.” In studies conducted by both the DOE and the Texas State Energy Office, the Texas dichotomy is clear: The state ranks fifth in the nation for residential electricity consumption, while at the same time taking the top two spots for energy production (ranking number two in the nation for wind and solar).
Increasing energy costs and decreasing revenues (coupled by falling real estate values) has spurred the state into action. As Combs herself declares, “With typical Texas ingenuity and know-how, the Lone Star State will again lead the nation in exploring and harnessing the “newest” energy resource—energy efficiency.”
In Austin, this “lone star know how” has already taken shape, and it’s a success story that can be easily replicated throughout the country. By embracing a set of regulations and programs aimed at both residential and commercial buildings, Austin’s energy efficiency programs have yielded very tangible results. Capitalizing on 0% loans offered by the city for structure upgrades (which have been combined with policies aimed at encouraging renewable energy) over 23,000 customers have reduced their energy use by 38 million kWh (for a total savings of $3 million).
Additionally, Austin now requires energy audits to be performed on any residential or commercial property before it can be sold. The audits must be performed by individuals certified by the Building Performance Institute and must cover every thing from insulation to HVAC systems. The audit ordinance is just one part of an overall energy initiative aimed at shrinking demand, minimizing the need for new power plants, and reducing the city’s carbon footprint.
New “green” construction and high-performance buildings may be the future of energy efficiency, but it makes sense for us to focus first on improving structures that are already standing—our drafty, aging buildings that are energy sinkholes. By capitalizing on what Combs refers to as “our ‘newest’ energy resource,” we can parlay an emphasis on energy efficiency in existing structures into a foundation for our “smart building” future: a future comprised of houses and commercial centers designed holistically where all energy resources are used and managed efficiently.
Click here for more on Texas energy initiatives.
To find out how your state ranks, take a look at: www.energy.gov (your state).