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The State of Energy Efficiency in Canada, Office of Energy Efficiency Report 2005

Buildings

Market Trends

The commercial/institutional sector of the economy accounted for 14 percent of Canada's secondary energy use and 13 percent of the related greenhouse gas (GHG) emissions in 2002.

Improved energy efficiency somewhat offset the effect of increased commercial activity between 1990 and 2002. This limited the growth in the sector's energy use to about 30 percent.The energy efficiency of commercial/institutional buildings, heating and cooling equipment, lighting technology, electric motors and control systems improved. Without these advances, energy use in the sector would have increased by 38 percent.

GHG emissions from the commercial /institutional sector increased by 35 percent during 1990-2002. Part of the increase was due to a shift toward heavy fuel oil in the fuel mix and the use of more GHG-intensive fuels to generate electricity.

Promoting Energy Efficiency

Space heating accounts for more than half of the energy used in this sector and offers significant opportunities for gains in energy efficiency. Auxiliary motors, auxiliary equipment and lighting account for about 33 percent of commercial energy use. Energy efficiency improvements are also possible in these areas.

As is the case in the residential sector, it is generally more economical to make energy efficiency improvements during the construction of a building rather than afterward. However, given the slow turnover of the building stock in this sector and the opportunities for energy-efficient retrofits, the energy performance of existing buildings must also be improved.

The Office of Energy Efficiency's (OEE's) approach to the commercial/institutional sector is to

• use regulations and information to gradually exclude the least efficient equipment from the market and to influence consumers to select – and manufacturers to produce – energy-efficient products that outperform the minimum standards (discussed previously in the section on equipment in this report); and
  
  
• accelerate changes in building design, construction and operation by
  • marketing the benefits of more energy-efficient construction,
  • increasing the awareness and knowledge of building owners, designers and builders,
  • supporting energy codes,
  • providing incentives for designing more energy-efficient buildings, and
  • encouraging investments in energy-efficient building retrofits to lower costs and reduce GHG emissions by forming partnerships with key associations, emphasizing corporate energy management planning and providing incentives for implementing energy-efficient retrofits.

Selected Progress Indicators for Buildings

• Since the inception of the Commercial Building Incentive Program (CBIP), 372 projects aimed at improving the energy efficiency of new commercial, institutional and multi-unit residential buildings have been supported. Results indicate that, on average, CBIP buildings are almost 35 percent more energy efficient than similar buildings constructed to the Model National Energy Code for Buildings. Figure 13 on page 20 shows the estimated average GHG reductions by institution under CBIP.
  
  
• The Energy Innovators Initiative (EII) encourages commercial businesses and public institutions to become more energy efficient and reduce their GHG emissions. Since 1992, the EII has recruited more than 1600 commercial, institutional and multi-unit residential organizations across Canada. In 2003-2004, the program was expanded to allow more organizations to apply for funding.
  
  
• In the 2003-2004 fiscal year, approximately 70 energy retrofit projects, commercial businesses, public institutions and multi-unit residential buildings received financial incentives for energy retrofit projects from the EII. Since its inception, the EII has contributed $30.5 million to energy retrofit projects.The total investment of these projects is more than $590 million, representing a significant contribution to energy efficiency by the commercial/institutional sector (see Figure 14).
  
  

The OEE's Buildings Program

The Commercial Building Incentive Program, part of the OEE's Buildings Program, provides financial incentives to eligible building owners who construct new commercial, institutional and multi-unit residential buildings that are at least 25 percent more energy efficient than similar buildings constructed to meet the Model National Energy Code for Buildings. Up to $60,000 may be given to owners of eligible buildings.

For more information, visit the Web site at oee.nrcan.gc.ca/newbuildings.

The Energy Innovators Initiative encourages owners and operators of existing commercial businesses and public institutions to reduce operating costs and become more energy efficient through a variety of tools and services, including information, training, advice and financial incentives. Organizations can receive up to 50 percent of approved costs to a maximum of $25,000 for activities related to planning and developing an energy retrofit. Eligible measures include audits, feasibility studies, energy management plans and other facilitation services. Financial incentives are also available for qualifying energy retrofit projects. Organizations may qualify for up to 25 percent of eligible costs – up to $250,000 (based on projected energy savings) – for the implementation of energy-saving measures.

For more information, visit the Web site at oee.nrcan.gc.ca/eii.