Alignment with strategic Capex Barriers40 Opportunity Action required to realise opportunity priorities Commercial Experience shows that significant savings can be achieved with minimal Lack of retrofit energy capital investment by getting rid of or downsizing unnecessary information waste equipment. Investment owner $3.6/m2 46,800 -187 -$4.3 reduction priorities Tenant Assumptions Non-market Building Energy savings in 2020 estimated to be 10% across all end uses. electricity pricing Cogeneration – Build cogeneration plants to supply 2,500 MWh to new commercial Capital constraints Armstrong buildings in Armstrong Creek. Based on Sustainability Victoria’s Investment Creek Armstrong Creek Development: Sustainable Alternative Energy Supply priorities and Demand Options Analysis $2.1 Regulatory owner 2,338 -$132 n/a million in constraints Assumptions total Split incentives Lifespan: 15 years Building Operating hours/year: 2,500 Operating and maintenance costs: $6/MWh Commercial Replace traditional electronics, appliances, elevators/escalators and Capital constraints electronics & kitchen equipment with high efficiency equipment to reduce energy Investment appliances consumption. priorities Decision process Assumptions: $10.4/m2 owner 64,567 -100 -$2.3 Energy savings in 2020 estimated to be: Offices – 26, Non-food retail – 23%, Education – 18%, Wholesale – 24%, Community – 21%, Tenant Accommodation – 20%, Food retail – 14%, Health – 20%, Building Food service – 15%, Other – 22% In new builds, energy savings in 2020 estimated to be 28%. Average lifespan estimated to be 18 years.
Opportunity Action required to realise opportunity Capex Barriers40 Alignment with strategic priorities Commercial retrofit energy waste reduction Experience shows that significant savings can be achieved with minimal capital investment by getting rid of or downsizing unnecessary equipment. Assumptions Energy savings in 2020 estimated to be 10% across all end uses. Building owner Tenant 46,800 -187 -$4.3 $3.6/m2 Lack of information Investment priorities Non-market electricity pricing Cogeneration – Armstrong Creek Build cogeneration plants to supply 2,500 MWh to new commercial buildings in Armstrong Creek. Based on Sustainability Victoria’s Armstrong Creek Development: Sustainable Alternative Energy Supply and Demand Options Analysis Assumptions Lifespan: 15 years Operating hours/year: 2,500 Operating and maintenance costs: $6/MWh Building owner 2,338 -$132 n/a $2.1 million in total Capital constraints Investment priorities Regulatory constraints Split incentives Commercial electronics & appliances Replace traditional electronics, appliances, elevators/escalators and kitchen equipment with high efficiency equipment to reduce energy consumption. Assumptions: Energy savings in 2020 estimated to be: Offices – 26, Non-food retail – 23%, Education – 18%, Wholesale – 24%, Community – 21%, Accommodation – 20%, Food retail – 14%, Health – 20%, Food service – 15%, Other – 22% In new builds, energy savings in 2020 estimated to be 28%. Average lifespan estimated to be 18 years. Building owner Tenant 64,567 -100 -$2.3 $10.4/m2 Capital constraints Investment priorities Decision process
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