What is Electrification and does Electrification affect your property’s energy use intensity?
Understanding Electrification
Electrification refers to the process of transitioning from systems, vehicles and appliances powered by on-site fuel combustion involving energy sources like natural gas, gasoline and propane to those that operate on electricity, such as Electric Vehicles, lawn mowers, and domestic hot water systems.. This shift is a critical component in reducing greenhouse gas (GHG) emissions by reducing combustion energy production and while in concert moving electrical production to cleaner sources..
The Grid and Electrification
The current grid, mostly built in the 1960s and 1970s, is undergoing changes to accommodate the rising demand for electricity. Innovations such as smart meters, microgrids, and storage distribution are essential to ensure the grid can support the widespread adoption of electrified systems and support renewable, clean energy production. In truth, electrification is only beneficial if the grid can provide cleaner energy with less emissions that can be produced on-site using combustion equipment. For example, if your property is in a region that’s only option for electricity is a plant that utilizes coal for its electricity, it may actually be cleaner.and produce fewer greenhouse if you have a natural gas hot water system, rather than electrical. Grid cleanliness matters when you have a goal of reducing carbon emissions. It is a good idea to understand where things come from and how they are produced.
Impact on Energy Use Intensity
Energy Use Intensity (EUI) measures a building's energy consumption relative to its size. Electrification can influence EUI by potentially increasing the demand for electricity. Onsite combustion typically produces a lower Energy Use intensity for systems like heating than using electricity. If your property is in a market that has a Building Performance Standard (BPS), based on EUI, it is critical that you understand how electrification can affect your property EUI performance to avoid non compliance. It is also important to review the BPS requirements to see if any exemptions for electrification are available. For example, adding EV Charging stations to a property is an example of electrification. If the charging station’s energy consumption can be bifurcated from the building consumption using meters or submeters, then in certain jurisdictions, that consumption can be subtracted or excluded from the Building’s EUI.
The Role of Renewable Energy
Renewable energy plays a vital role in the electrification process. By generating electricity from sources like solar and wind, we can decrease reliance on fossil fuels and their associated GHG emissions. Properties can adopt onsite renewable energy production, such as solar panels, purchase carbon offsets to claim renewable energy use and reduce Scope 1, 2 or 3 GHG emissions. Renewable energy generation can affect your EUI score if the BPS is using a net EUI score and not the total EUI score.
Financial Incentives and Electrification
Financial incentives are available to offset the costs associated with electrification and renewable energy adoption. These incentives, offered by federal, state, local governments, and utility providers, can make energy-efficient upgrades more affordable and attractive for property owners.
Conclusion
Electrification is a transformative process that, when implemented alongside energy efficiency measures and renewable energy, can positively affect a property's EUI. While the initial shift may increase electricity demand, the long-term benefits include reduced GHG emissions, lower energy bills, and compliance with emerging building performance standards. As the grid evolves to support this transition, property owners have a unique opportunity to contribute to a more sustainable future while reaping the financial rewards of early adoption.
Given the complexities of navigating electrification decisions and strategies at an individual property level, it is imperative to appreciate all aspects of the building and grid to determine the best short-term and long-term strategies tied to the optimal pathway to make a property more sustainable in the most cost-effective manner. That’s where GreenT can help.
How GreenT Climate Software Can Help
GreenT Climate Software offers solutions to help building owners understand their grid quality, manage their EUI and comply with BPS. By providing a streamlined approach to tracking and reporting energy consumption and GHG, GreenT assists in navigating the complexities of BPS policies and avoiding fines. For more information on BPS compliance and how GreenT Climate Software can assist you in managing your property's sustainability initiatives, please contact us.
