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The State of Energy Efficiency in Canada, Office of Energy Efficiency Report 2006

Buildings

Market Trends

The commercial/institutional sector of the economy accounted for 14 percent of Canada's secondary energy use and 14 percent of the related greenhouse gas (GHG) emissions in 2003.

Due to increased commercial activity and the additional use and penetration of auxiliary equipment (e.g. computers) between 1990 and 2003, energy use in the sector increased by about 36 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 37 percent.

GHG emissions from the commercial/institutional sector increased by 45 percent during 1990-2003. 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 32 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); 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 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), 541 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 35 percent more energy efficient than similar buildings constructed to the Model National Energy Code for Buildings. Figure 11 shows the estimated average GHG reductions by type of institution under CBIP.

• Energy-efficient practices and technologies are increasingly being adopted in mainstream building construction. In 2005, CBIP buildings accounted for 18 percent of new commercial and institutional floor space constructed. As shown in Figure 12, CBIP buildings are designed to consume half the energy of buildings in the existing stock.

• EnerGuide for Existing Buildings (EEB), formerly known as the Energy Innovators Initiative, encourages commercial businesses and public institutions to become more energy efficient and reduce their GHG emissions. Since 1992, EEB has recruited more than 2000 commercial and institutional organizations across Canada representing over 30 percent of the floor space in these sectors.
  
  
• In the 2004-2005 fiscal year, EEB funded 167 energy retrofit implementation projects and more than 223 retrofit planning activities in commercial businesses, public institutions and multi-unit residential buildings. Since 1998, EEB has contributed $52.3 million and clients have invested more than $888 million for these planning activities and implementation projects. Retrofit projects have been implemented in over 4800 buildings, with energy savings averaging about 20 percent (see Figure 13).

• In fiscal year 2004-2005, five contribution agreements were signed through the Industrial Building Incentive Program (IBIP), bringing the number of projects supported since the program's launch in 2002 to 20.

The OEE's Buildings Program

The Commercial Building Incentive 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.

EnerGuide for Existing Buildings (formerly known as the Energy Innovators Initiative) helps commercial businesses and public institutions make their buildings more energy efficient. EEB offers a variety of tools and services, including publications, training and financial incentives. After joining EEB, organizations can receive up to 25 percent of eligible costs to a maximum of $250,000 - based on projected energy savings - for energy-saving retrofit projects.

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

The Industrial Building Incentive Program (IBIP) aims to increase the energy efficiency of newly constructed industrial buildings. IBIP consists of an evaluation and selection of 8-10 projects annually from proposals. It offers an incentive of up to $80,000 to companies that are building new industrial facilities to offset additional design costs inherent in the initial attempts at energy-efficient design.

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