© zerofootprint 2005 © zerofootprint 2007 green real estate workshop, toronto credit risk and...

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Credit Risk and Capital ManagementGlobal WarmingReal EstateBuilding

What we can do Now

Ron DemboJanuary, 2007



Credit Risk and Capital Management

40% of total US energy consumption and GHG can be attributed to

operating buildings! heat light cooling hot water

Another 8% to the materials usedSource: Mazria

SUV’s = 3%




40% of total US energy consumption and GHG can be

solvedusingbetter

design!

Source: Mazria




Mazria’sChallenge to Students

Add one sentence to all school design projects now:

“The project should be designed to engage the environment in a way that dramatically reduces or eliminates the need for fossil fuels”

Source: Mazria




Striving Towards

Zero Footprint Building

U of T, Brigitte Shim’s Workshop

Source: Mazria




A Large-Scale Shift to using

Earth–Source

(Geothermal)

Heating/Cooling




How does an

Earth-Source system work?


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Source:

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Over time, in every home, business ….. use green power

• Install photovoltaic solar

• Install solar hot water systems

• Install earth-source heating, cooling, hot water

Risk Management in the Business Line

Make Every Building a Generator (of renewable energy)



Energy GenerationToday vs The Future

Incremental, less risky, sustainable, scaleable,

can be very environmentally friendly

Capital intensive, long lead time, risky, often environmentally unfriendly



A “Simple” Policy Change

For all new buildings now:

Require a special permit for anything other than earth-source heating, hot water and cooling systems



• Lower risk• More “resilient” system• Lower transmission infrastructure• Can lower pollution and carbon effects• Can create significant economic activity • Fosters innovation• Cultural change

Distributed Generation



14% of residential homes (666,000) were still heated by electrical baseboard heating.

(6.8 million MWh)

Electric hot water systems in 1,612,000 homes (7.2 Million MWh)

Electric air conditioning in 2,941,000 homes (3.6 Million MWh).

Residential Energy Stats (Ontario 2003)



3 – 5 times more efficient than electric baseboard heating

3 – 5 times more efficient than electrical water heaters

1.5 - 2.0 times as efficient as standard air conditioning units.

Earth-SourceHeating, AC, Hot Water



• Would save 7.7 Million MWh

• This annual capacity is equivalent to removing 1,177 MW of generation capacity, or approx. 2 Pickering nuclear reactors.

All Electric Homes (2003)Retrofitted to Earth-Source



• Retrofits would cost $5.21 billion dollars

• 2 Nuclear plants would cost much more and take 15 years to build

That’s only 14% of Ontario Homes!

All Electric HomesRetrofitted to Earth-Source



• Cost $700 million• Peak load shaving of 550 MW

• Equivalent to retrofitting 250,000 homes (gas +electric AC, HW)• Retrofitting cost is 2 billion

Scenario: TorontoProposed Portlands Plant



• Drastic reduction in pollution

• 700,000 tons CO2 saved from homes

• 1,700,000 tons CO2 saved from plant

• Could be funded without a cent of taxpayers money

(

Benefits: Avoiding TorontoProposed Portlands Plant



(Assume each home was new, efficient 3000 sq ft

normally $270 / month heating, hot water and AC)

• We could offer homeowners this service for < $270/ month• City wins (pollution, cost)• Homeowners win (cheaper and hedged)• Province wins(cost, more resilient system)

• Canada wins (CO2 )

• Investors in Zerofootprint Energy (“green” investment)

Benefits: Avoiding TorontoProposed Portlands Plant



How Do WeGet from Here to There ?



A Generic (Greening) Problem

now the future



A Generic (Greening) Solution

now the future



An Example

An ESCO Model



Zfp-Energy Makes it Cost-Neutral for Homeowner / Builder

Capital Cost of Geo-Exchange System

Funded by Zfp-Energy

Capital Cost of Traditional Heating, cooling, hot water system



Homeowner’sEnergy: Monthly Payments

Starts at today’scost for traditionalenergy, thendeclines

Zfp-ENERGY’s Business Model (cont.)

Zfp-ENERGY

Hedged energy

Get heating/cooling/hot water for less than as non-green alternative



• Solar Hot Water• Earth-Source heating, cooling and hot water

…… can be fundedusing clever Financial Engineering,subsidies are not required

Use Financial Markets



The Financial Institution of the Future

The [email protected]

www.zerofootprint.net

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