#1Implementing ECBC in Andhra Pradesh and Impacts on Real Estate Development Bhaskar Deol, India Representative Natural Resources Defense Council December 2, 2014 asci Leadership through Leaming NRDC THE EARTH'S BEST DEFENSE#2Presentation Overview Introduction ECBC in Andhra Pradesh ➤ Learning from Code Implementation ➤ Energy Efficiency and Real Estate Development Clean Energy Solutions Center Webinar 2#3Introduction to ASCI and NRDC asci Leadership through Learning Administrative Staff College of India (ASCI) is a pioneer management and research organization established in Hyderabad in 1956 and works with the public and private sector NRDC THE EARTH'S BEST DEFENSE The Natural Resources Defense Council (NRDC) is an international nonprofit environmental organization established in 1970, working on advancing energy efficiency with business and government leaders in the US, China and elsewhere . ASCI-NRDC work in partnership with the private and public sectors in India to promote energy efficiency in buildings and appliances since 2009 We partner with real estate developers, financial institutions, and national and local government to promote building efficiency throughout India Clean Energy Solutions Center Webinar#4• The Energy Efficiency Opportunity Rapid growth of India's real estate sector - 2/3 of commercial buildings that will exist in 2030 have yet to be built - Large-scale urbanization, increasing income Trends in Indian real estate - Popularity of Green buildings (LEED, GRIHA, ECBC) - Increasing energy intensity of buildings - Growing demand for energy-saving buildings Cost savings and increased market share Source: McKinsey, 2012 Clean Energy Solutions Center Webinar 4#5ECBC in Andhra Pradesh and Telangana State: Work that went into the code, and next steps 2009-11 2012-13 2012-13 Nov '13 Jan '14 2014-15 Feb '15 onwards Extensive Workshops AP Government on Energy Efficiency Announces Intensive Stakeholder Discussions AP Announces Code will be Enacted Notification Statewide Capacity Building Code Process Soon Code Operational in Both States • Extensive stakeholder consultations and awareness. building about ECBC Formation of a steering committee and a technical committee to inform process and adapt ECBC to local bylaws • State bifurcation into Andhra Pradesh (AP) and - Telangana State (TS) announced in Feb '14 — both states inherit the same code • • Empanelment of architects underway Training ongoing - target reaching 400 district officials, real estate developers and architects Aug '14 onwards in TS • Feb '15 onwards in AP Clean Energy Solutions Center Webinar#6Local Level State Level ECBC Adoption: Roles of Key Agencies National Level Ministry of Urban Development Issues directives to states for ECBC implementation State Ministry of Urban Development Issues a directive to state and local level bodies to start implementing ECBC Office of Chief Secretary Guide Decision ECBC adapted by State Guide Decision Ministry of Power - Bureau of Energy Efficiency develops Energy Conservation Building Code (ECBC) 2009 Department of Energy prepares building standards State Designated Nodal Agency administers the ECBC Urban Development Departments (UDDS) develop General Development Control Regulations Urban Local Bodies (ULBS) write ECBC compliant building codes and ensure compliance at the municipal level Town Development Offices (TDOS) and Town Planning Offices (TPOS) include provisions into local building code (need to be approved by BEE) Clean Energy Solutions Center Webinar 6#7AP ECBC: Key differences from ECBC . Applicable to commercial buildings, offices, hospitals, IT parks Applicable to new commercial and public buildings with plot area of 1,000 m² or built up area of 2,000 m² Irrespective of plot and built-up area, all multiplexes, hospitals and hotels need to comply with ECBC Independent certification and validation through third party assessors at two stages Star rated based on level of energy savings Fast track approvals for buildings rated ECBC two-star and above Clean Energy Solutions Center Webinar 7#8Building Approval Process Owner/Builder Submits Building Designs Third Party Assessor Design Phase Urban Local Body issues construction approval Owner/Builder Constructs Building Third Party Assessor Construction Phase Urban Local Body issues occupancy certificate Occupancy Phase Owner/Builder Sells, Rents or Occupies Building Clean Energy Solutions Center Webinar Overall Monitoring by State Designated Agency and Municipal Administratio n Department 80#9Capacity Building Activities Activities Capacity Building for Town Planning Officials and Elected Representatives Empanelment of consultants Description . Training program for city town planners, engineers and officials at urban local bodies (ULBS) . . • • Develop compliance materials Selection of empaneled consultants Workshops focused on AP ECBC, GO-168, Role of Consultants, etc. Workshops across major cities of AP and TS, e.g. Vizag, Vijaywada, Hyderabad, Warangal etc. Tests conducted in major cities using based on ECONirman Examination Regional workshops Training and certification of independent verifiers Support to municipal corporation for effective implementation of ECBC BEE has extended technical guidance for ECBC compliant design for government buildings Clean Energy Solutions Center Webinar Train the trainer activity Awareness building with elected representatives and others Pilot project to extend support to GHMC BEE Demonstration Project 6#10States Leading in Advancing Energy Efficiency in Buildings New Delhi Haryana Rajasthan Gujarat Maharashtra Karnataka Uttar Pradesh Tamil Nadu Clean Energy Solutions Center Webinar West Bengal Orissa Telengana Andhra Pradesh 0 10#11Lessons from Andhra Pradesh Senior government buy-in is critical for code implementation Power shortage situation helped create political will to act on efficiency Steering committee with multiple stakeholders - real estate developers, government officials, architects, helped address issues early on, keeping stakeholders onboard - Taking into account local body functioning – more comfortable with area based thresholds Importance of flexibility - expedited clearance for ECBC compliant projects rated two-star and above Clean Energy Solutions Center Webinar 11#12The Business Case for Energy Efficiency ASCI-NRDC are developing materials and case studies to showcase energy efficiency in leading buildings, including ✓ Detailed payback periods ✓ Returns on key measures Report: Constructing Change, examines initial action steps for real estate developers, local governments, and financial institutions Report: Taking Energy Efficiency to New Heights, maps stakeholder opportunities for the real estate sector using Hyderabad as a case study Factsheets and resources for saving money for building owners, managers and tenants GROC TENANT SPACE CASE STUDY Natural Resources Defense Council INRDO Washington DC Office Integrated Building and Tenant Space Case Study: Skanska and The Empire State Building Constructing Change: Accelerating Energy Efficiency in India's Buildings Market Taking Energy Efficiency to New Heights: Analysis and Recommendations for the Buildings Sector from the Hyderabad Experience Energy Facts Five Simple Steps for Saving Money, Energy, and the Environment: A Guide for Building Owners and Managers Energy Five Simple Steps for Saving Money, Energy, and the Environment: A Guide for Apartment Dwellers NROC Clean Energy Solutions Center Webinar 12#13Buildings Already Achieving Cost Savings from Energy Efficiency Building Location Type Corporate Office Noida New Build Spectral/ AECOM Amara Raja Building Hyderabad New Build Key Efficiency Measures Design features, HVAC, lighting Payback period of 3.3 years Design features Infosys SDB-1 • Extensive monitoring and verification (M&V) Hyderabad New Build . Radiant cooling, design, lighting, M&V Infosys Godrej Bhawan, Mumbai Retrofit Godrej and Boyce 33% annual savings from radiant cooling HVAC, lighting, M&V; 12% annual savings Payback period of 4.7 years Millennia Park Chennai Retrofit HVAC, building automation system RMZ Corporation Mahindra Towers Mumbai ESCO Mahindra & Mahindra ESCO financed light retrofit; 14% savings Payback period of 6 months Clean Energy Solutions Center Webinar 13#14Links to NRDC Publications Issue Briefs Strengthening the Real Estate Market Through Codes http://www.nrdc.org/international/india/files/real-estate-efficiency-codes-IB.pdf Incentives for Energy Efficient Buildings http://www.nrdc.org/international/india/files/energy-efficient-construction-incentives-IB.pdf Case Studies Mahindra Towers (ESCO) http://www.nrdc.org/international/india/files/esco-energy-retrofit-mahindra-CS.pdf Godrej Bhavan (Retrofit) http://www.nrdc.org/international/india/files/energy-retrofit-godrej-bhavan-CS.pdf AECOM (Formerly Spectral Building, New Construction) http://www.nrdc.org/international/india/files/energy-saving-construction-legacy-spectral-CS.pdf Clean Energy Solutions Center Webinar 14#15Thank you! [email protected] @BhaskarDeol @NRDC_India Natural Resources Defense Council www.nrdc.org/international/india Administrative Staff College of India www.asci.org.in Clean Energy Solutions Center Webinar 15#16Additional Slides Clean Energy Solutions Center Webinar 16#17Average Annual Energy Consumption ('000 kWh) Efficient Building: Godrej Bhawan, Mumbai 590 570 50 550 12% Reduction 525 530 30 595 -11 510 490 470 450 Before Retrofit HVAC Other Lighting + After Appliances Retrofit ● Retrofit of building constructed in 1970 Key measures - Replacement of old HVAC system - Efficient lighting measures - Building management system for monitoring and verification • Overall 12% reduction in energy use ASCI-NRDC case study Clean Energy Solutions Center Webinar 17 17#18Proposed Implementation of ECBC in Andhra Pradesh 1 day Orientation - - Lead by government with support from NRDC and ASCI - Attended Town and Planning Departments • 3 day Training Sessions ― Groups of about 20 people, 8-10 occurrences - - Trainings for: • Municipal Officials/Engineers • • Architects/Engineers Clean Energy Solutions Center Webinar 18#19BEE Training Resources • Training of Master Trainers ― Master Trainers train other stakeholders - (architects/engineers, state officials, etc.) • Lists of ESCOs and empanelled architects • Conformance Check Tools • • Energy Management Tools Online Guides • Examples *Source: Bureau of Energy Efficiency, ECBC Schemes, http://www.beeindia.in/schemes/schemes.php?id=3 Clean Energy Solutions Center Webinar 19#20India ECO-III Training Resources • Interactive Q&A sessions . Technical Guidance . . ● Examples/Case Studies Resources and Reference Material Building energy simulation effort • ECBC in Architecture Curriculum • ECBC Training and Awareness workshops . Guides • ECBC User's Guide Energy Conservation Building Code User Guide *Source: USAID | India, 2010, ECBC Training Workshop, http://ibecc.in/sites/default/files/documents/lectures/01%20Introduction.pdf Clean Energy Solutions Center Webinar 20#21What Developers Are Saying about ECBC Implementation Barriers • . • Strong first cost bias Availability of efficient products Equipment testing & certification Energy expertise Awareness, information and tools Electricity rate structures / rural subsidies Territoriality by agencies • Potential code official abuses • Lack of government & utility "Champions" *Source: Hisham Ahmad, 2010, Energy Conservation Building Code, Environmental Design Solutions. http://www.trackbee.com/credai/ presentations.php?event_id=6 Clean Energy Solutions Center Webinar 21#2222 22 Key Barriers Identified at ECBC Impact Assessment • Need more technical expertise and training ● Technical skills in ULB • Scattered information . . . Weak information flow Voluntary nature weakens market trends. Need plan for mandatory implementation Need demonstrations Limited certified materials → reduces confidence in savings Split incentive Multiple agencies Clean Energy Solutions Center Webinar