Powering the Future: Smart Strategies for Building Energy Transformation

Introduction

In 2022, the building sector accounted for approximately 13% of Canada’s total greenhouse gas (GHG) emissions, according to Environment and Climate Change Canada (see Figure 1), or the equivalent of 89 million tonnes of CO₂. This makes it the third-highest emitting sector after Oil & Gas and Transportation.[1] Fossil fuel consumption and GHG emissions remain among the most pressing contributors to climate change, with various sectors of the economy playing a role in escalating the crisis. Negative impacts of GHGs on Earth’s climate include prolonged droughts, disruptions to food production, accelerated ice cap melting and rising sea levels. This whitepaper provides the building sector with key insights into Energy Master Planning, and details methodologies and strategies for improving efficiency and sustainability in buildings. It presents HH Angus’ approach for conducting energy-related feasibility studies and energy master plans. These studies are designed to help clients navigate both major and minor concerns regarding energy consumption and GHG emissions in buildings.

Climate change is an urgent global challenge with significant social, economic, and political implications. The rapid pace of environmental changes has placed substantial pressure on policy makers, scientists, and industry leaders to devise effective mitigation strategies.

Climate action is a fundamental component of the United Nations’ 17 Sustainable Development Goals (SDGs). Goal #13 emphasizes the development and deployment of effective, scalable, and affordable solutions to mitigate climate change. Governments, organizations, and businesses are encouraged to incorporate sustainability into long-term strategies and policies.

Interrelations of the SDGs 

The 17 SDGs are interrelated and go beyond solving specific problems, as each depends on the others to be achieved. Climate Action (Goal #13) is related to Industry, Innovation and Infrastructure (Goal #9), which focuses on the potential benefits of utilizing new technologies and more efficient and sustainable use of resources. [2, 3] This is particularly relevant to how HH Angus approaches projects, with the goal of utilizing the most efficient technologies in the market to help clients achieve their energy and sustainability targets. Climate action is also related to Responsible Consumption and Production (Goal #12), which promotes programs for more sustainable consumption and production of resources, and encourages sustainable practices in line with national policies. [4]

Building Sector Vulnerability

Buildings are indispensable to human activities, providing spaces for offices, warehouses, educational institutions, healthcare facilities, and residential housing. However, the energy-intensive nature of buildings presents challenges, particularly when poor planning and management lead to excessive energy consumption and high operational costs

Basic Key Performance Indicators

Each building exhibits unique energy consumption patterns, commonly measured through Energy Use Intensity (EUI). Every building type has a specific median EUI, which refers to the energy consumed by the building in relation to its gross floor area. Figure 2 presents the EUIs for the common property types in Canada. [5]

GHG emission lock-in occurs when fossil fuel-intensive systems continue to prevent the transition to low-carbon alternatives.[6] This phenomenon is common in the building sector due to the long lifespans of buildings and limited opportunities for natural interventions and retrofits. To avoid this, building managers must allocate time and resources to develop an effective Energy Master Plan that acts as a roadmap to help improve the efficiency of mechanical and electrical systems, reduce operational costs, meet public expectations, and ultimately achieve sustainability by a pre-defined time.

Energy Master Planning emerges as an essential mechanism for enabling organizations to adopt proactive approaches to energy use and efficiency. This aligns with broader sustainability efforts which aim to promote cleaner technologies, responsible energy consumption, and resilient infrastructure.

Energy Master Planning

HH Angus' Energy Infrastructure Team Methodology

Partnering with HH Angus offers clients valuable benefits for conducting both short-term and long-term feasibility studies. Our long tradition of engineering low energy and sustainable buildings enables us to surpass expectations and set new benchmarks in efficiency. Our deep industry knowledge, combined with strong relationships, allows HH Angus to assist clients with project funding challenges; in addition, our team conducts building analyses to generate realistic results that can be implemented to achieve project goals. We also have a deep understanding of healthcare operations and resiliency requirements. Our team believes that sustainability is the natural outcome of good planning and design practices, and we achieve this through the following methodology:

Data Gathering
This process ensures that all building information is collected, including but not limited to:

• Utility data: a minimum of 12 months of
  energy bills (preferably three years)
• Building information: size, use, construction year,
  major mechanical and electrical equipment
• Envelope characteristics: walls, windows, floors
  and roofs
• Existing drawings: floor layouts, mechanical
  schematics and electrical diagrams
• Previous studies: energy audits, capital plans
  and inventories.

Baseline Model Assessment
In this step, HH Angus develops an energy model of the building based on the provided data to assess the energy consumption profile, energy cost, and associated GHG emissions. This helps us gain an understanding of the impact of various energy conservation initiatives. Based on the type of building, we analyze several energy efficiency or conservation measures related to buildings systems, such as hot and chilled water, steam, natural gas, and electricity. We then focus on managing building energy consumption in a way that will reduce the demand across the different energy loads.

Our benchmarking uses Energy Star Portfolio Manager, a no-cost, interactive energy management tool that allows users to assess and monitor energy consumption in their building.[7] This step is important as it enables us to understand the existing building stock and to manage expectations regarding what is achievable.

The next task involves conducting site visits to ensure the accuracy of the information provided, identify areas for improvement, and interview the property manager and operational team to better understand the current condition of the building. This process also helps us assess factors impacting energy changes such as activity, weather, service-level effects (e.g., increased use of auxiliary equipment) and structural factors.

Next, we develop a comprehensive energy model of the existing building using a reliable energy modeling software such as RETScreen Expert, IES, or Energyplus. This allows us to match the building’s current energy consumption with various input parameters. Key inputs include (but are not limited to):

• Envelope information:
  • U-Values & R-Values for walls, windows, external doors, floor and roof
  • Window-To-Wall Ratio (WWR) and Solar Heat-Gain Coefficient (SHGC)
• Heating and cooling system description such as equipment, capacities and seasonal efficiencies
• Ventilation system information
• Lighting, plug, and other types of loads

The team conducts load calculations for each thermal zone in the building, including the heating and cooling loads. This is done to determine the peak loads that the proposed measures will have to meet. Next is the energy use analysis, which focuses on the used energy in response to internal loads such as lighting and plug loads, and heat loss through the building envelope (walls, windows, roof, etc.). HH Angus can conduct this analysis on an hourly basis to estimate the building’s annual energy use. Lastly, we organize in-person or virtual workshops to share progress, confirm the overall direction of the study, and discuss milestones, scheduling, and potential conflicts.

Feasibility Study and Analysis
Once we establish a clear understanding of the baseline system, the HH Angus team explores multiple pathways to enhance overall system performance. This process involves three key steps: target selection, measure analysis, and pathway development.

Target Selection: We identify key client goals to refine the project scope and set measurable objectives, such as a specific reduction in energy consumption and GHG emissions. Meaningful key performance indicators (KPIs) are established to track progress.

Measure Analysis: Each proposed measure is assessed based on feasibility, economic viability, and implementation potential. High-level design details and underlying assumptions are documented to ensure clarity.

Pathways Development: Rather than treating building systems independently, we integrate them into holistic pathways, grouping measures into strategic packages. The focus is primarily on electric and thermal energy systems, balancing four critical elements:

• Energy Demand: Reducing overall energy consumption through efficiency improvements and building envelope enhancements
• Energy Distribution: Ensuring efficient energy delivery to minimize unnecessary losses and costs
• Energy Storage: Retaining excess energy for future use through battery and thermal storage systems
• Energy Generation: Implementing renewable energy solutions, such as solar PV systems, to produce on-site electricity

To develop and assess these pathways, our process includes:

1. Formulating pathways by selecting and combining the most effective measures, in consultation with manufacturers and suppliers
2. Developing energy models for each pathway and comparing them to the baseline
3. Conducting a SWOT analysis to evaluate Strengths, Weaknesses, Opportunities, and Threats
4. Coordinating with utility providers to select the best energy sources and estimate costs
5. Performing a Life Cycle Cost Analysis (LCCA) to assess capital costs, funding opportunities, energy and carbon costs, and long-term financial viability

The team conducts a thorough financial analysis, beginning with the development of a capital cost estimate based on the class estimate outlined in the scope of work. This estimate factors in equipment costs, constructability, necessary upgrades, and potential disruptions to building operations. Additionally, the operational costs, including utility and maintenance costs, are calculated and modeled on an annual basis. A sensitivity analysis is then performed to assess the impact of variable factors, such as utility rate escalation, carbon tax, inflation, discount rates, and emission factors, providing a comprehensive understanding of how changes in these assumptions influence the overall financial outlook.

Finally, we compare the developed pathways against the baseline model, ranking them based on project-specific criteria such as efficiency, reliability, environmental impact, cost, constructability, ease of implementation, and safety.

Energy Strategy Towards a Goal

This step involves developing a roadmap to ensure the selected pathway is successfully implemented. This process, also known as Energy Master Planning, is a “strategic vision for the production, distribution, consumption, and conservation of energy in a building, campus or community.”[8]

Efforts are focused on understanding the site’s future needs, providing a comprehensive approach to energy management, and ensuring that key goals are met sustainably. A crucial task is collaborating with stakeholders to develop a plan with reasonable terms and timelines.

A measurement and verification phase is necessary to track the performance of the installed systems against expected energy savings and GHG reduction targets. The operational strategies must be adjusted based on the performance data to optimize energy efficiency and comfort. The plan should comply with municipal and regional standards. Additionally, the development of energy policies should be initiated to support the implementation of such a plan. A detailed schedule/timeline with milestones should be developed to track the progress of each phase.

Post-Project Monitoring and Validation

This step will ensure that the building owners and operators have a clear plan to manage their energy consumption. This is done by evaluating the current state of energy management that the facility has in terms of commitment, planning, organization, financing, tracking, communication and training.

This plan will help achieve the targets/goals identified during the Feasibility Study and Analysis step. It will outline the actions required, assign responsibility for each task, estimate the cost of implementation, define the duration of each action, and establish the KPIs to measure success. Additionally, the plan will identify methods to ensure smooth and continuous improvement.

The plan will also discuss the importance of training and education, informing individuals about the dangers of the climate change crisis and how they can contribute positively to minimize energy consumption. The final step will include tracking and publicizing incremental achievements toward carbon neutrality, while updating the energy master plan goals as needed. These updates can be triggered by:

• Changes to policies and regulations
• Changes to technologies and service offerings
• The desire to adopt a more aggressive decarbonization scenario, which maximizes the cumulative GHG reductions over the study period.

Conclusion

Energy Master Planning is essential for enhancing operational efficiency and promoting sustainability in the building sector. By leveraging a structured, data-driven methodology, HH Angus assists clients in identifying opportunities, implementing innovative solutions, and aligning their energy strategies with long-term sustainability goals. Strategic energy planning provides a clear pathway for organizations to optimize energy usage and future-proof their infrastructure. Through a combination of advanced modeling, feasibility studies and implementation strategies, HH Angus is committed to helping clients transition toward a more sustainable and resilient built environment.

Case Study:

Decarbonization Feasibility Study for 4 Manchester Court

HH Angus was tasked with conducting an extensive decarbonization study for the 4 Manchester Court warehouse in Bolton, Ontario, which has a gross floor area of 253,000 ft2. This study followed the seven-step guideline outlined by the Federation of Canadian Municipalities (FCM) Community Buildings Retrofit (CBR), as shown in Figure 3. The study focused on assessing the building’s energy performance and suggesting ways to reduce GHG emissions.

References

[1] Environment and Climate Change Canada. (2024). Where Canada’s greenhouse gas emissions come from: 2024 National Greenhouse Gas Inventory. Canada.ca. https://www.canada.ca/en/environment-climate-change/news/2024/05/where-canadas-greenhouse-gas-emissions-come-from-2024-national-greenhouse-gas-inventory.html

[2] International Institute for Sustainable Development. (n.d.). Goal 13 - climate action. SDG Knowledge Hub. https://sdg.iisd.org/sdgs/goal-13-climate-action/

[3] Government of Canada. (2024). Canada.ca. https://www.canada.ca/en/employment-social-development/programs/agenda-2030/industries-innovation-infrastructure.html

[4] International Institute for Sustainable Development. (n.d.-a). Goal 12 -responsible consumption & production. SDG Knowledge Hub. https://sdg.iisd.org/sdgs/goal-12-responsible-consumption-production/

[5] Energy Star. (2018). Canadian energy use intensity by property type. https://www.nrcan.gc.ca/sites/www.nrcan.gc.ca/files/energy/pdf/Canadian National Median Tables-EN-Aug2018-7.pdf

[6] Sato, I., Elliott, B., & Schumer, C. (2021). What is carbon lock-in and how can we avoid it? World Resources Institute. https://www.wri.org/insights/carbon-lock-in-definition

[7] Portfolio manager. Energy Star. (2024). https://www.energystar.gov/buildings/tools-and-resources/portfoliomanager#:~:text=EPA%27s%20ENERGY%20STAR%20Portfolio%20Manager%20is%20a%20nocost%2C,energy%20and%20water%20consumption%20across%20your%20building%20portfolio

[8] Barker, M. (2024). Energy master plan. EnergyFlexibility.org. https://www.energyflexibility.org/energy-masterplan/#:~:text=You%20will%20need%20a%20roadmap%20showing%20you%20how,policies%2C%20and%20strategies%20for%20the%20short-%20and%20long-term

Key Highlights:

A total of six GHG reduction pathways were developed to provide options for replacing the existing mechanical system. Proposed pathways included an all-electric heating system and Air Source Heat Pump system. Additional pathways suggested included different solar PV layouts and a battery energy storage system in combination with the previously mentioned pathways. The recommended pathway will help the facility reduce both energy consumption and GHG emissions by 53.2% and 88.5% respectively, within a relatively short period. This aligns with the site’s capital replacement cycle for equipment.