Colorado-Real-Estate-Journal_350433

Page 16 — Property Management Quarterly — July 2023 www.crej.com Electrification E lectrification refers to con- verting all on-site, direct burning of fossil fuels – such as natural gas, propane, oil and gasoline – to electricity. In the face of the global climate crisis, the adoption of electrifica- tion is gaining momentum. Many buildings, facilities and utilities are moving toward electrifica- tion with good reason – benefits include reduced greenhouse gas emissions, increased resiliency for natural disasters, and dramatic enhancement of indoor air quality. To realize the benefits, beneficial electrification combines equipment replacement, efficient use of elec- tricity with technologies such as heat pumps and induction heating, and sourcing the electricity from on-site or utility-provided renew- able energy such as solar. As the city and county of Den- ver and the state of Colorado have recently enacted electrification pol- icy, such as Denver’s electrification requirements and the state’s model electric-ready and solar-ready code combined with IECC 2021, your properties will need an electrifica- tion assessment in the near future. But first, let’s demystify some of the myths around electrification, and discuss why they exist and why they are not necessarily true. n Myth: We should electrify the entire country right away. While sev- eral states have been early adopt- ers of electrification (including Cal- ifornia, Washington, other Western states and, now, Colorado), plenty of other states are not able to fully switch to electric energy right now. States need to consider what energy sources their utilities are using the most right now, as this will affect how a switch would eventually take place, if at all. The states that have moved more toward electri- fication already are using clean sources of energy primarily, such as hydropower, wind and nuclear, or they have adopted a renewable portfolio standard or GHG plan to transition in the near future to cleaner sources of electricity. While Colorado is currently about 30% coal, 30% natural gas and 40% renewable as of Energy Information Association data from 2022-2023, Xcel Energy has set a goal of being 80% renewable by 2030. And that is the reason Denver and the state are pushing for all-electric build- ings. In states that rely heavily on fos- sil fuels, and do not have an RPS or GHG requirement in the near future, electrification is not advantageous due to emissions associated with fossil fuel generation. n Myth: Electrification is always the best option. Moving forward with electrification without consider- ing context is not always the best option. Electrification is only the better option when it saves three things: energy, money and emis- sions. This is not always the case. Before deciding to electrify, it is nec- essary to look at energy usage vs. energy cost vs. the entire life cycle of the decision. Efficiency should always come first, as electricity can cost more than fossil fuel. If you plan on electrifying one of your existing properties, the first step is confirming that you have an efficient building and the electrifi- cation capacity to take on this new load. You will also need to consider the life-cycle cost of systems – it is not energy- or material-efficient to discard what you have and start over so that you can electrify. For example, if you electrify now and replace a relatively new condensing gas-fired boiler, that would defeat the overall purpose of saving emis- sions in the long run. Develop a long-term plan for replacements of your critical fossil fuel-based assets instead. Denver, for example, only requires replacements for exist- ing equipment when it must be replaced anyway due to failed or end-of-useful-life systems. n Myth: My building or campus is too big to electrify. There are increased challenges associated with electrifying larger buildings and campuses, such as increased electricity needs, which can lead to increased operating costs, depend- ing on natural gas rates vs. electric- ity rates. However, central heating systems serving multiple buildings are a good opportunity for electri- fication because economy of scale results in lower cost, diversity of load and diversity of resources (e.g., waste heat from water sources, water lines, wastewater lines, industry, etc.) that work in concert to increase the efficiency of the system. These increased electrical needs can be accommodated cre- atively through strategies such as shifting demand to nonpeak hours, downsizing central plants, using thermal storage, using heat pumps and taking advantage of low night- time temperatures. Our sustainabil- ity and energy-efficient projects at Denver Water, the Denver Museum of Nature and Science, and the National Western Center are all tak- ing advantage of various forms of these technologies. Overall, electrifying larger build- ings is challenging, but not impos- sible – and will probably get easier Myths of electrification: Don’t believe everything Renée Azerbegi, PE, CEM, LEED AP, WELL AP National sustainability market leader, Mead & Hunt Please see Azergegi, Page 17 GRIFFIS BLESSING GriffisBlessing.com 719-520-1234 35+ Years Experience 6M+ Commercial Square Feet Voted One of the Top Places to Work by The Gaze e & The Denver Post Your Property Management Experts 11,000+ Apartment Units DENVER’S MID-MARKET CRE EXPERTS Owning mid-market properties has its own set of challenges, especially in the current market. You need a partner with the experience and expertise to achieve the results you expect. Property Management Landlord Representation Construction Management CALL US TODAY 303.219.5888 OR VISIT OUR WEBSITE AT wheelhousecommercial.com Mutual Respect, Integrity, Accountability