Net Zero Planning Tool

Here is a brief overview of the new automated Net Zero Planning Tool now available with the latest release of the RETScreen Software (Version 9.1).

With the addition of this powerful new tool, the RETScreen Clean Energy Management Software further enables portfolio-wide decarbonization planning, implementation, monitoring and reporting - all available within one single multilingual platform.

Net Zero Plan - Real Property

The user clicks on the "Net zero plan..." icon on the ribbon to open the Net zero plan – Real property dialogue box to create a portfolio of the real property archetypes available in the Virtual energy analyzer. The archetypes accessible within this function are those with both “Feasibility | Energy | Target - 30-40%” and “Feasibility | Emission | Target - 80-90%” versions developed in the Virtual energy analyzer.

The Net zero plan allows the user to set a GHG emission reduction target and guides the user through a ten-step Portfolio Decarbonization Framework (described below) for each facility. This concludes in the automatic creation of a portfolio-wide feasibility study, which empowers the user to achieve a net zero emission target.

By clicking the Calculate button, the software produces a portfolio comprising of chosen archetypes within the Portfolio worksheet, while also generating Benchmark, Feasibility, and Waterfall graphs in the Plan worksheet automatically. Furthermore, a summary of the primary results is generated in the Custom worksheet.

Portfolio Decarbonization Framework

The Portfolio Decarbonization Framework is a ten-step process to prepare a portfolio-wide analysis to assess the feasibility and costs associated with a carbon neutral real property portfolio and to help prepare a net zero plan. An overview of this framework is presented in the figure and described in more details below.

Step 1 - Reference GHG emissions and target

Step 1 of the Portfolio Decarbonization Framework is to determine the portfolio’s GHG emissions for a reference year, and then to set GHG emission reduction targets relative to that reference year, at one or more years in the future.

For example, the Government of Canada established the fiscal year 2005-2006 as the reference year for GHG emissions reporting by various government departments and agencies.

Step 2 - Baseline energy and GHG emissions

Step 2 of the Portfolio Decarbonization Framework is to establish an appropriate baseline year for energy and GHG model simulations, and then to calculate, calibrate and adjust (if necessary) the base case energy consumption and associated GHG emissions for the baseline year, for the entire portfolio.

Properly establishing the baseline year enables a more accurate evaluation of facility-level energy use. This includes various components of the facility, including specific energy systems and equipment already in place (i.e., the base case), as well as setting the proper foundation to assess the potential for energy and GHG reduction measures and technologies followed in this framework (i.e., the proposed case). A well-established baseline also facilitates more accurate tracking and reporting of the plan’s progress over time, relative to the baseline year.

Step 3 - Cleaner electricity grid

Step 3 of the Portfolio Decarbonization Framework is to calculate the portfolio’s projected GHG emissions impact of a cleaner electricity grid.

Increasingly cleaner electricity grids are a key part of public and private sector efforts to help reduce greenhouse gas emissions over time. For example, in December 2018, the Government of Canada announced regulations to phase-out traditional coal-fired electricity by 2030 as well as greenhouse gas regulations for natural gas-fired electricity.

The disaggregation of the GHG emissions impact of a cleaner electricity grid is an important element of this decarbonization framework. This will help ensure that the plan more accurately reflects the projected overall GHG emissions for each framework element.

Step 4 - Disposed facilities

Step 4 of the Portfolio Decarbonization Framework is to determine the projected energy and GHG emissions impact of disposed facilities across the portfolio. This includes any planned real property consolidation, demolition and/or divestment activities.

Step 5 - Energy efficiency measures

Step 5 of the Portfolio Decarbonization Framework is to calculate the projected energy and GHG emissions impact of implementing various energy efficiency measures and technologies at facilities throughout the portfolio.

RETScreen’s Virtual Energy Analyzer incorporates automated decision intelligence to help the user significantly reduce greenhouse gas emissions (i.e., deep retrofits) via applying various energy efficiency measures and technologies, by electrifying heating systems, while reducing peak electricity demand, and by automatically sizing both onsite and offsite renewable energy options to be considered.

Step 6 - Electrification of heating

Step 6 of the Portfolio Decarbonization Framework is to calculate the projected energy and GHG emissions impact of converting the portfolio’s various fossil fuel heating systems to electricity (e.g., electric boilers or furnaces, air-source heat pumps, ground-source heat pumps, etc.).

In conjunction with cleaner electricity grids, the electrification of space, domestic hot water and process heating systems are an important strategy to help organizations achieve deep GHG emission reductions.

Step 7 - Onsite renewables

Step 7 of the Portfolio Decarbonization Framework is to identify opportunities to implement onsite renewable electricity generation systems and to calculate the projected energy and GHG emissions impact of installing onsite renewables at facilities throughout the portfolio.

The cost and efficiency of renewable energy technologies have significantly improved over the past decade. The use of onsite renewable electricity generation systems presents a real opportunity to help reduce GHG emissions in a cost-effective manner. The financial viability and GHG impact of these options are mainly dependent on the local renewable resource available (e.g., the amount of solar radiation available, the speed of the wind at the project site, etc.), the installation costs, the price of the displaced electricity from the utility, as well as the emission characteristics of the local electricity grid and the impact of the carbon shadow price.

Step 8 - Offsite renewables

Step 8 of the Portfolio Decarbonization Framework is to evaluate the procurement of offsite renewable electricity generation and to calculate the projected energy and GHG emissions impact of purchasing offsite renewable electricity for targeted facilities across the portfolio.

Various forms of offsite renewable electricity are increasingly available from public and private power producers to help external organizations indirectly reduce greenhouse gas emissions via procurement of cleaner forms of electricity.

Typical renewable resources available include wind, solar, hydro, biomass, landfill gas and other forms of biogas. The green power generated using these “fuels” is typically sold at a premium price, higher than regular electricity rates paid by facilities. But as levelized energy costs for large renewable power plants continue to decline, the offsite renewable rates charged are now much closer to retail electricity rates charged by electric utilities.

Step 9 - Carbon offsets

Step 9 of the Portfolio Decarbonization Framework is to calculate any remaining GHG emissions reductions required to achieve portfolio-wide net-zero GHG emissions via the potential procurement of external carbon offsets (including carbon removals).

For example, within the Government of Canada’s Greening Government Strategy, net-zero means reducing GHG emissions from operations to as close to zero as possible and then balancing out any remaining emissions with an equivalent amount of carbon removal.

Carbon offset markets are growing rapidly, and there are numerous types of possible carbon offsets for organizations to purchase, to help meet GHG emission reduction targets. Reforestation projects are a common example. However, there is a physical limit globally as to the total amount of GHG reductions which can be achieved via carbon offsets. This is why carbon offset are considered a last GHG mitigation step in this framework, meant to help reduce any remaining harder-to-reduce GHG emissions.

Step 10 - Progress tracking and reporting

Step 10 of the Portfolio Decarbonization Framework is to monitor and report the ongoing progress of the portfolio-wide carbon neutral portfolio plan.

Monitoring and reporting progress is an important final step in this framework and is critical to the long-term success of the plan. Tracking each facilities actual energy consumption, and associated GHG emissions, versus the plan, will enable the organization to assess the progress being made and allow energy, facility, and portfolio management teams to identify where deep emission reduction actions are, or are not, working as planned, and to adjust accordingly.

Getting Started

The best way to start with this new automated Net Zero Planning Tool is to try out the free example by clicking on the "Net zero plan - Example" icon on the bottom left side of the File-Home page of the RETScreen Version 9.1.

You can download RETScreen Expert (V9.1) from our website now at – https://natural-resources.canada.ca/maps-tools-and-publications/tools/modelling-tools/retscreen/7465

This project was made possible through the financial support of the following organizations:

• Treasury Board of Canada Secretariat (TBS) - Greening Government Fund (GGF);
• Department of National Defence - Directorate of Portfolio Innovation, Infrastructure and Environment Group; and
• Ontario's Independent Electricity System Operator (IESO).

The project is spearheaded by the RETScreen Division of CanmetENERGY-Varennes (Natural Resources Canada) with in-kind support from Oxford Properties, 3M Canada, District School Board of Niagara, Mohawk College, Town of Caledon, and CityHousing Hamilton.

Stay-tuned over the coming weeks and months for more information about what new features are available in Version?9.1.

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