4th Annual Chena Renewable Energy Fair

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The authors of the venture capital report characterize smart grid investments as an energy efficiency R&D effort, which is debatable. Assuming these classifications are realistic and that the funding levels identified in the report are comprehensive, the total investment in energy efficiency R&D in 2010 was approximately $789 million, where the DOE’s BTP investment in R&D represents only 11% of the total energy efficiency investments in R&D in the United States. These investment levels are growing each year and are poised to spur revolutionary advancements in energy efficiency technologies. It should be noted that these funding levels do not include R&D investments in all of the other countries outside of the United States. Whole Building Design Within the BTP building design program, R&D emphasis is on “whole building, systems engineering approaches that optimize efficiency for specific climate zones and applications, while integrating efficiency with renewable energy technologies.” A whole building approach takes into account the complex and dynamic interactions between a building and its environment, among a building’s energy systems, and between a building and its occupants. R&D efforts are focused on technologies that contribute to a more efficient whole-building strategy. At the outset of this report, the NREL researchers would like to stress that DOD could reduce the energy use of new commercial buildings by 30% – 60% with off- the-shelf, commercialized technologies and reduce the energy use of all of their existing buildings by at least 30% with commercialized technologies when they utilize the whole building design and renovation approach discussed below. The whole building design and retrofit approach are appropriate for incorporating and designing for the interactions of individual energy conservation measures in an integrated fashion. In existing buildings, holistic retrofits also allow for the bundling of shorter payback measures with longer payback measures to enable the financing of a bundled set of energy conservation measures on a life-cycle cost basis. For example, a Pacific Northwest National Laboratory (PNNL) report determined that the energy savings potential in federal buildings is on the order of 25 kBtu/ft2 with an initial investment of $1.96/ft2 and would result in cost savings of $0.36/ft2 (Brown and Dirks undated). Assuming these numbers are applicable to all DOD facilities, DOD would need to invest $5.89 billion in agency appropriations for energy efficiency upgrades and would save $1.085 billion a year in energy savings, with a payback period of 5.43 years. It should be noted that this PNNL report is an older report (2001) comparing savings potential to a baseline of 1985 through 2005. Although this is an older study, NREL employees have audited over 50 DOD buildings at a variety of military bases throughout the country and have found that this minimum level of ~25% – 40% savings potential still exists in existing DOD facilities relative to a 2010 baseline for the following reasons: The majority of DOD facilities were constructed sometime between World War I and World War II. At the time the facilities were constructed to meet the wartime/ mission critical needs and were built as quickly as possible. Consequently, the buildings have little to no insulation, utilize single-paned windows, have inefficient heating, ventilation and air conditioning (HVAC), lighting, and plug load systems. 139

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