2023 Summer Issue of Urban Land - 46

TIMMS: Factors to consider when it comes
to residential applications include one-time
costs, ongoing electric costs, and indoor air
quality. I've heard that induction cooktops
may have a slightly higher one-time cost,
both for residential and commercial applications.
Additionally, compatible pots and pans
are needed for induction cooktops. Some
developers provide them to tenants as movein
gifts to reduce the financial burden. In
terms of ongoing electric costs, those vary
widely by region. In Georgia, we have a very
high energy burden-the percentage of gross
household income spent on energy costs.
Therefore, it's important to consider utilitybill
relief programs or other incentives for
households that are struggling. The biggest
driver for me is the indoor air-quality benefit.
There are costs associated with an all-electric
conversion, but on the other hand, there are
probably costs related to gas cooking that
are not fully visible. For example, high rates
of respiratory disease, especially for children,
are statistically proven to be tied to smoky
indoor environments that often arise during
gas cooking.
As part of efforts
to achieve net zero
carbon emissions
by 2025, the local
office of Jamestown
is carrying out an
energy efficiency
retrofit of the ninebuilding
Levi's Plaza
office complex in
San Francisco.
What do you feel is all too often left
out of the conversation about building
electrification?
TIMMS: For commercial applications, building
electrification and kitchen electrification
can increase electricity use, which can
require costly upgrades to the utility service.
Therefore, it's important to start with building
efficiency. For example, in retrofitting Levi's
Plaza, we were able to improve efficiency
throughout the site. That allowed us to
complete a boiler-to-heat pump conversion
without having to upgrade the utility service.
Other demands for electrical service, such as
electric vehicle charging stations, need to be
taken into account, as well. And it's important
to involve chefs and restaurateurs and get
them on board. Once the chef is educated,
it's possible to optimize the menu, staffing,
scheduling, and overall environment and find
cost savings in other areas to offset the initial
upfront equipment cost.
McPIKE: Across our portfolio, heating and
hot water are typically produced by burning
fossil fuels. When we talk about building electrification,
we mean converting our heat and/
or hot water from gas to electricity. While a
heat pump may be three times more efficient
than a gas furnace, electricity could be five
times more expensive than gas. We focus
on the upfront capital expense, but we don't
always consider the operational cost-i.e., if
people can afford their electric bills after their
buildings are electrified. This is one reason
why energy efficiency is so important [to
consider] before electrifying. We also need
better strategies for electrification when converting
central systems to apartment-level
systems, potentially transitioning heating
costs from the owner to the resident. And
lastly, we need to consider greening and
modernizing our grid in order to actually
reduce carbon emissions.
MYERS: The grid modernization necessary
to deal with wintertime peak demand in our
electrical grid is often left out of the conversation.
Utilities need to work with policymakers
and the real estate community to
forecast and effectively plan for increased
wintertime peak demand in colder climate
zones. We are commencing a series of grid
modernization workshops in Boston, including
executive leadership from large power
users, utilities, and the city of Boston to work
through these very issues. Grid reliability was
once an issue only a few real estate energy
nerds were talking about; now it's being discussed
in boardrooms.
46
URBAN LAND SUMMER 2023
C OUR TES Y J AMES T O WN
2023 Summer Issue of Urban Land

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