CHARACTERISTICS

Commercial DSM projects are sponsored by utilities to encourage commercial customers to control their energy bills, and simultaneously enable the local utility to achieve its own load goals. In the U.S., commercial buildings–including commercial construction and multi-family residential buildings–consume 11% of total energy. Energy is used in commercial buildings to provide a variety of services such as lighting, space heating and cooling, refrigeration, and electricity for electronics and other equipment. Commercial DSM projects encourage builders and occupants of commercial spaces to increase both energy conservation and energy efficiency.

Analysis indicates that substantial reductions in future GHG emissions can be realized through the use of more energy-efficient technologies. In addition to avoiding GHG emissions, energy-efficient technologies also can improve indoor air quality, reduce noise, improve process control and increase amenities or convenience.

Current commercial DSM initiatives target heating and cooling systems, lighting and engineering systems. Commercial DSM programs can include 1) technical and financial assistance for local efforts to promote commercial efficiency partnerships between manufacturers, utilities and end-users to develop highly efficient equipment, 2) grants and training to local officials to update commercial building codes, etc. Such programs lower operating expenses, improving cash flow for building owners. In commercial buildings where occupants pay utilities, energy-efficient buildings are more attractive to potential tenants. Energy costs can be reduced as much as 50% with installation of efficient lighting, space conditioning and building controls.

SIZE:
Can be adapted to any size building.

FEATURES:
Can include building envelopes; efficient equipment (e.g., lighting, motors, variable speed drives, HVAC equipment); thermal storage equipment; subsystems control; load management; and community energy systems (district heating and cooling).

COST:
Varies with the program. Can be minimal (shifting usage) or can involve installation of new computer equipment, etc. that may require upfront capital investment, but can be recovered through energy savings over the system's lifetime.

CURRENT USAGE:
Organizations in OECD countries are very active in promoting commercial DSM programs. Non-OECD countries with significant DSM programs underway include Brazil, Pakistan, Thailand, Mexico, Jamaica and the Philippines.

POTENTIAL USAGE:
One estimate is that DSM can reduce worldwide demand 3-7% by the year 2010 and 5-6% by the year 2050. To achieve these targets, DSM programs must be universally applied.

ISSUES ASSOCIATED WITH IMPLEMENTING ACTION

• There is a lack of customer and designer awareness of energy-efficient technologies. Many products that can reduce GHG emissions are relatively new or are not the standard approach to design. Designers tend to specify what they know and have used in the past. Providing product information, design assistance, and public seminars/training programs may increase familiarity with technology.
• It may not be the decision-maker who pays the utility bill. A high percentage of commercial space, (office, retail, etc.), is leased rather than owned by the occupant. Price signals, DSM incentives, and economic paybacks are distorted by disconnects between building ownership, energy usage, and responsibility for energy bills.
• There is a lack of available energy-efficient equipment in the marketplace, and what is available usually has a higher initial cost relative to conventional technologies. Technical potential for improved electric products exists, but will not be produced until manufacturers are assured of sufficient demand.
• Conflicting priorities influence investment decisions, and investment in energy efficiency improvements usually compete with aesthetic improvements, employee productivity investments, comfort or safety concerns, product integrity protection, and other concerns for commercial business owners. In some cases energy efficiency improvements not only compete for capital expenditures; they may be viewed as a trade-off that requires a sacrifice in comfort or aesthetics.

CLIMATE CHANGE IMPACT

EMISSION EFFECT:
    

CONDITIONS FOR EMISSIONS MITIGATION:

• The greatest carbon (and energy) savings are achieved in space conditioning, lighting and miscellaneous electricity use.

EMISSION ESTIMATE:
Varies according to the change in electricity demand before/after implementing the DSM program.

COST-EFFECTIVENESS:
Varies according to the administrative or investment costs required. Some investments are cost-effective regardless of energy savings achieved.³

SECONDARY EFFECTS:
Varies according to the decrease in electricity demand. For every kWh of fossil fuel power generation avoided, the associated emissions of air pollutants are also avoided.

RESOURCES

• Green Buildings for Africa program, South Africa. The Council for Scientific and Industrial Research (CSIR) launched this voluntary program in June 1997 to encourage building owners to improve energy efficiency. Participants commit to assess their needs/options within six months and make upgrades within three years. CSIR provides technical assistance, and participants earn the right to use the program logo in their advertising. This program is expected to reduce building energy consumption by 30% over a three-year period.
• United Nations Environmental Program, 1997, Reducing Greenhouse Gas Emissions: The Role of Voluntary Programmes.
• Koomey, J.G. et al, 1994, Buildings Sector Demand-Side Efficiency Technology Summaries, Lawrence Berkeley National Laboratory, LBNL-33887.
• Lawrence Berkeley Laboratory has worked with the U.S. Agency for International Development to support efforts to implement existing energy standards in new commercial buildings in the Philippines.
• The U.S. Environmental Protection Agency sponsors the Energy Star Buildings and Green Lights Programs whose participants agree to install energy-efficient lighting where profitable as long as lighting quality is maintained or improved. http://www.epa.gov/greenlights.html/
• The U.S. Department of Energy Office of Building Technology website http://www.eren.doe.gov/buildings contains links to technical information, case studies, and other background information on energy-efficient technologies appropriate for commercial use.

CONTACTS

Alliance to Save Energy
Bill Prindle
Washington, DC
Tel: (202) 530-2214
Fax: (202) 331-9588
bprindle@ase.org
http://www.ase.org

International Institute for Energy Conservation
Washington, DC
Kelly Gordon
Director of Internatioanl Programs
Tel: (202) 842-3388 x508
kgordon@iiec.org
http://www.iiec.org

Lawrence Berkeley National Laboratory
Steve Wiel
Energy Analysis Division
Berkeley, CA
Tel: (510) 486-5396
swiel@lbl.gov
http://eetd.lbl.gov/EA.html

United Nations Environment Program
Industry and Environment
Paris, France
Tel: 33 (1) 44 37 14 50
Fax: 33 (1) 44 37 14 74
http://www.unep.org

U.S. Department of Energy
Diane Pirkey
Manager of DSM Programs
Washington, DC
Tel: (202) 586-9839
Fax: (202) 586-1640
diane.pirkey@ee.doe.gov

U.S. Environmental Protection Agency
Atmospheric Pollution
Prevention Division
Washington, DC
Tel: (202) 564-9190
http://www.epa.gov/greenlights.html/