Texas Utility InnovationsA discussion on

HVAC’s Variable Refrigerant Flow (VRF) Technology & IEER Efficiency Metrics

Steve Jones - Southwest Business Unit Commercial Manager – Mitsubishi Electric

Nick Conklin LEED AP, PE, CEM – Application Engineering Manager – Mitsubishi Electric

EEIP Guidelines to Address

• Why is Ductless Heat Pump (DHP) / Variable Refrigerant Flow (VRF) a Commercially-ready new technology or existing underutilized technology?

• Overview of the DHP/VRF for EECM(s) – A description of the technology, target market with market potential, and estimated installed/implementation costs

• Why Verifiable peak demand savings (kW) and/or energy savings (kWh) is achievable?

▫ Energy Modeling using IEER metrics

• Energy Saving Case Studies – Sacramento Drill Tower• Measurement and Verification (M&V) – SMUD and PG&E utility savings

• Applicability in Texas Utility Market• SOP

• MTP

• What are Texas PUC needs for Energy Efficiency Conservation Measures and/or the Energy Efficiency Goal 25.181? How do we get VRF and IEER metrics in place for utility programs?

US HVAC Industry Overview

Commercial/Industrial HVAC Choices:

• Package Systems• Split Systems• VRF Systems

Light Commercial/Residential HVAC Types:

• PTACs• Unitary • Window units• Wall-mounted units• Radiant• Ductless (DHP)

*Room AC not included in analysisSource: AHRI and BRSI, September 2012

US Vertical Market Opportunities 31% HVAC Unit Growth

Vertical Market Year Market Size (Units)

Education2007 190,000

2012 300,000

Government/ Military2007 84,000

2012 97,000

Health Care2007 79,000

2012 145,000

Lodging2007 40,000

2012 54,000

Multi-Family2007 270,000

2012 317,000

Office Building2007 74,000

2012 104,000

Source: FMI 2008 U.S. Market Construction Overview

5

Ductless Heat Pumps for Single Zones(30+ Years HVAC Market Success)

•Highly Efficient26 SEER10.6 HSPFNo ductwork = No duct losses

•Individual Room Control

•Extremely Quiet19 – 38 dB

•Cold Climate Capable100% capacity at 5 F.82% capacity at -13 F.

VRF for Commercial Buildings

•Up to 50 indoor units per outdoor

•72,000 – 360,000 BTUH •Simultaneous heating and cooling

•Energy reclaim

•IEER up to 23.9

•COP up to 4.87

What is VRF Technology?

INVERTER-driven Compressor

Time

Ro

om

Te

mp

era

ture

• Enables capacity operation as low as 4%

• Sizing flexibility with variable capacity

• Enables long runtimes

• Reduces compressor cycling

• Improves temperature control

VRFVRF

VR

F

SETPOINT

CONVENTIONAL

High Starting Current Traditional HVAC System without

Inverter Technology

Building UseOccupant LoadSolar Load

Diversity

VRF Heat Recovery Technology

Simultaneous cooling and heating

VRF Integrated Controls

• Easy to install and operate

• 2-wire DDC (Direct Control) system▫ 16ga stranded and shielded, non-polar▫ Daisy-chain connection

• Customizable control scheme with web access

• Individual room controls

• Color touch screen centralized control

• Integration into building management system via BACnet® and Lonworks®

• Third-party equipment control

• Tenant billing capability

VRF Energy-Efficiency and Environmental Impact

Demand Response Tool

VRF Integrated Control Systems can allow:

• Load shedding by automatically reducing compressor frequency/hertz (speed).

• On/Off Sequencing between zones to minimize temperature discomfort

• Turn off indoor units in several zones and allow temperature/humidity drift

• Sequential starting of outdoor units to minimize demand power spikes

LEED NC 3.0

• Certified: 40-49 points

• Silver: 50-59 points

• Gold: 60-79 points

• Platinum: 80 + points

• Energy and Atmosphere: VRF Can achieve up to 21 points

• Environmental Quality: VRF can achieve up to seven points

Utilizing VRF with LEED

Energy and Atmosphere Credits

• Eac1 – Optimize Energy Usage▫ Total energy usage of building▫ Verified by modeling versus base building

• EAc5 – Measurement and Verification▫ Verify actual building operation▫ Monitor equipment operation through integrated software

VRF Systems and Energy Modeling

• Energy usage and cost for VRF systems can be modeled using EnergyPro

▫ EnergyPro uses DOE2.1e to model and compare VRF to other HVAC system

• EnergyPro is approved use with LEED EAc1

EAC1 - Energy Cost Savings

VRF Total Energy Cost Savings

Overview of System Standards

• AHRI 1230 Covers multi-split air conditioners and multi-split heat pumps

with distributed refrigerant technology

• ASHRAE 90.1 Minimum requirements for energy efficient building design Higher standard for VRF system Integration Energy Efficiency

Ratio (IEER) in ASHRAE standard 90.1 (July 2012)

• DOE DOE to reference AHRI 1230 Standard and ASHRAE 90.1

minimum efficiency standards in Code of Federal Regulations part 10, section 431

How IEER Weighting Factors DevelopedHow IEER Weighting Factors Developed

• To Develop the four weighting factors for the IEER equation as well as the ambient temperature schedule, a comprehensive model was developed :

– Weather Data Model For Cities From 15 US Climate Zones• Percentage of Time In The Four Load Bins 100%, 75%, 50%, 25%

• Average Ambient For Each Load Bin

– 3 Buildings types – Office (40%), Retail (30%), School (30%)• Each building type with its load profile vs. ambient schedule

– Sales Volumes Percentage By Each Climate Zones

Houston Drybulb Temperature Profile - Retail

29

253

557

660

563

497

402

324

264

203

138

69 515

0

100

200

300

400

500

600

700

100 95 90 85 80 75 70 65 60 55 50 45 40 35

Temperature

An

nu

al H

ou

rs

Miami FL

Houston, TX

Phoenix, AZ

San Francisco CA

Baltimore MD

Salem, OR

Chicago, ILBoise, ID

Burlington, VT

Helena MTDuluth, MN

El Paso, TX

Albuquerque, NM

Memphis TN

Sacramento Drill Tower

VRF Case Study

• Owned by the City of Sacramento, CA• Concrete Building with Upper 1/3 being a water

tank• Approximately 2/3 of the first floor area are

offices and a training room, arranged like a donut

• Original HVAC was 4 pipe ducted fan coils, with a natural draft gas boiler and 30 ton air cooled chiller.

• Equipment replaced with (2) 16 ton VRF heat recovery type systems in 2008, with 4 ducted fan coils each, and an ERV

Significant reduction in Energy Consumption (kWh)

Sacramento Drill Tower – VRF Case Study

MODULE 1: Designing with VRF

Metered Data From Drill Tower

MODULE 1: Designing with VRF

Metered Data From Drill Tower

MODULE 1: Designing with VRF

Total Gas CostTotal Electrical

CostTotal Cost

Before CITY MULTI - VRF

(2007)$5,987.44 $19,456.78 $25,444.22

After CITY MULTI - VRF (2009)

$455.03 $18,607.36 $19,062.39

Percent Savings 92.4% 4.4% 25.1%

Metered Data From Drill Tower

*Based on Data Provided from SMUD and PGE Building is located in Sacramento

Re-Cap: Benefits of VRF Systems

Space Utilization Installation flexibility to meet building space requirements Minimal impact to existing building architecture and structure

Occupant Comfort Individual comfort control Indoor unit flexibility to meet the needs of any space Meets occupant ventilation air requirements Quiet operation

Energy Savings Inverter driven compressor No waste heat Meets requirements for LEED points

Texas Utility SOP / MTP Programs

In closing, I would like to ask the board to please support the development of programs in the state that appropriately incentivize VRF systems. By adding a

VRF category to the Texas Energy Efficiency Goal 25.181 utilizing the appropriate energy efficiency metric IEER, utilities will accurately capture the associated

energy savings and properly incentivize the technology.

Additional Information Support Slides

Successful Utility Programs - West

Prescriptive VRF Incentive

• $1,500/ton upstream rebate on up to 80 tons for commercial applications

Calculating IEER

Stage Ambient Actual % Load

Net Cap Cmpr(PC)

Cond (PCF)

Indoor(PIF)

Control (PCT)

EER

(F) (Net Cap) Btu/h W W W W Btu/W4 95.0 100 114,730 8,707 650 1,050 100 10.923 81.5 75 86,047 5,928 650 1,050 100 11.132 68.0 50 57,365 3,740 650 1,050 100 10.351 65.0 25 28,682 2,080 650 1,050 100 7.39

IEER (0 . 0 20 10 . 9 2) (0 . 6 17 11 . 1 3) (0 . 2 38 10 . 3 5) (0 . 1 25 7 . 3 9) 10 . 4 8

IEER Factors - Modeling ResultsIEER Factors - Modeling Results• Weighting Factors

• Bin-Average Ambient Values

volume %

A B C D A B C D A B C D A B C D total1a Miami 1.181 no 0.008 0.914 0.072 0.007 0.009 0.798 0.182 0.011 0.007 0.806 0.179 0.008 0.008 0.847 0.137 0.008 1.0002a Houston 8.838 no 0.016 0.739 0.193 0.051 0.020 0.687 0.180 0.113 0.013 0.668 0.258 0.062 0.016 0.702 0.209 0.073 1.0002b Phoenix 3.876 yes 0.007 0.750 0.187 0.056 0.007 0.646 0.224 0.123 0.005 0.693 0.268 0.033 0.006 0.702 0.222 0.069 1.0003a Memphis 8.738 no 0.080 0.590 0.216 0.114 0.090 0.585 0.245 0.079 0.087 0.569 0.248 0.097 0.085 0.582 0.234 0.099 1.0003b El Paso 8.321 yes 0.021 0.724 0.157 0.097 0.021 0.758 0.158 0.064 0.028 0.796 0.126 0.051 0.023 0.756 0.148 0.073 1.0003c San Francisco 8.678 yes 0.005 0.196 0.272 0.527 0.008 0.279 0.352 0.362 0.005 0.232 0.318 0.445 0.006 0.232 0.310 0.453 1.0004a Baltimore 13.671 no 0.003 0.596 0.223 0.177 0.005 0.543 0.273 0.179 0.003 0.522 0.342 0.134 0.004 0.558 0.274 0.165 1.0004b Albuquerque 1.442 yes 0.008 0.703 0.171 0.118 0.010 0.563 0.353 0.074 0.006 0.574 0.351 0.070 0.008 0.622 0.280 0.091 1.0004c Salem 2.153 yes 0.013 0.495 0.279 0.213 0.018 0.557 0.297 0.127 0.011 0.547 0.283 0.159 0.014 0.529 0.286 0.171 1.0005a Chicago 21.081 yes 0.008 0.790 0.117 0.085 0.051 0.588 0.314 0.047 0.007 0.647 0.299 0.047 0.021 0.686 0.231 0.062 1.0005b Boise 5.294 yes 0.009 0.685 0.256 0.050 0.011 0.703 0.199 0.088 0.008 0.729 0.175 0.087 0.009 0.703 0.215 0.072 1.0006a Burlington 10.434 yes 0.018 0.747 0.151 0.083 0.023 0.624 0.179 0.174 0.025 0.640 0.296 0.039 0.022 0.678 0.203 0.097 1.0006b Helena 2.541 yes 0.007 0.587 0.337 0.069 0.007 0.444 0.400 0.149 0.006 0.498 0.368 0.128 0.007 0.517 0.365 0.111 1.0007 Duluth 2.334 yes 0.013 0.714 0.186 0.086 0.016 0.559 0.221 0.204 0.011 0.496 0.444 0.049 0.013 0.602 0.274 0.110 1.0008 Fairbanks 1.420 yes 0.007 0.531 0.286 0.177 0.010 0.293 0.600 0.097 0.007 0.637 0.269 0.087 0.008 0.491 0.375 0.126 1.000

0.0202 0.6166 0.2381 0.1250 1.0000

Weighted Average30% 30%

USA weighted average

Weighting FactorsZone City Econo

40%Office School Retail

volume %

A B C D A B C D A B C D A B C D1a Miami 1.181 no 92.55 80.25 64.56 49.72 92.55 81.98 70.18 54.41 92.55 81.67 70.66 54.99 92.550 81.194 68.075 52.7092a Houston 8.838 no 97.55 81.84 63.02 46.67 97.55 83.84 70.21 56.74 97.55 83.78 68.26 52.46 97.550 83.024 66.748 51.4282b Phoenix 3.876 yes 112.55 92.34 74.84 67.09 112.55 94.69 80.38 71.05 112.55 95.35 77.77 67.55 112.550 93.947 77.380 68.4173a Memphis 8.738 no 92.55 80.13 62.42 44.16 92.55 82.84 67.79 52.72 92.55 82.84 67.79 50.18 92.550 81.754 65.642 48.5333b El Paso 8.321 yes 97.55 83.77 72.55 66.47 97.55 83.57 72.55 67.55 97.55 84.02 72.55 67.35 97.550 83.783 72.550 67.0563c San Francisco 8.678 yes 92.55 80.59 72.55 65.28 92.55 80.59 72.55 54.49 92.55 80.30 72.55 66.31 92.550 80.505 72.550 62.3554a Baltimore 13.671 no 97.55 79.75 62.95 42.88 97.55 82.83 70.44 54.49 97.55 82.62 68.35 49.50 97.550 81.533 66.814 48.3484b Albuquerque 1.442 yes 102.55 83.94 72.55 66.62 102.55 86.48 74.98 67.55 102.55 86.44 75.24 67.55 102.550 85.453 74.085 67.1784c Salem 2.153 yes 97.55 81.69 72.55 65.96 97.55 81.63 72.55 67.55 97.55 81.48 72.55 67.28 97.550 81.611 72.550 66.8315a Chicago 21.081 yes 97.55 79.55 67.55 61.93 93.36 81.79 70.61 62.55 97.55 82.62 70.34 62.55 96.292 81.144 69.305 62.3025b Boise 5.294 yes 97.55 80.13 65.08 57.55 97.55 83.11 72.55 67.55 97.55 82.62 72.55 67.31 97.550 81.771 69.562 63.4796a Burlington 10.434 yes 87.55 73.53 62.55 57.29 87.55 75.62 67.55 61.21 87.55 75.97 65.29 57.55 87.550 74.889 64.873 58.5436b Helena 2.541 yes 97.55 78.55 65.26 57.55 97.55 81.98 69.79 61.69 97.55 82.02 69.91 61.27 97.550 80.618 68.013 59.9087 Duluth 2.334 yes 87.55 73.01 62.55 57.05 87.55 75.94 67.55 61.46 87.55 75.82 65.26 57.55 87.550 74.731 64.864 58.5218 Fairbanks 1.420 yes 82.55 70.38 62.55 56.92 82.55 73.72 64.79 57.55 82.55 70.55 62.55 57.55 82.550 71.434 63.223 57.298

95.519 81.229 68.736 58.372USA weighted average

Zone City Econo

40% 30% 30%Weighted AverageSchool Retail

Mean Ambient TemperaturesOffice

.02 .617 .238 .125

Performance Incentives for Electric Efficiency - Texas

Mitsubishi Stocking Distributors

139 distributor organizations1,114 distributor branches

D

34

Mitsubishi Contractor Network

6,981 Contractors1,030 “Diamond Dealers”

35

Mitsubishi Engineering Firms

6,495 architects and engineers1,230 trained architects and engineers