Contact Information Gordon Monk Energy Utilization Manager Tel: (604) 592-7970 Fax: (604) 576-7122 E-mail: [email protected]@terasengas.com.

Contact Information Gordon MonkEnergy Utilization Manager

Tel: (604) 592-7970Fax: (604) 576-7122E-mail: [email protected]

Building an Efficient Boiler Program

from the Ground Up

ENERGY STAR Participants Meeting

Ottawa, May 11, 2005

Presentation Outline

Introduction

Building from the ground up (from the Efficient Boiler Program perspective)

Background Research

Program Design

Program Implementation & Marketing

Conclusions

Introduction

Terasen Inc. formerly BC Gas4.6 Billion in assets2046 employeestraded on TSXprovides 60% of energy in B.C.

Terasen Gas Inc. wholly owned subsidiary875,000 customers48,000 km of pipeline150 Communities

Introduction

Demand Side Management (DSM)

Definition: Modify or influence the way

customers use energy

DSM programs since 1991

Programs must pass cost-benefit tests

Partnering has facilitated increased

DSM activity

Efficient Boiler

ENERGY STAR Qualified Heating Retrofit

ENERGY STAR Qualified New Construction

Commercial / Other

Introduction

2005 New Programs: Forecast Annual Reductions

170,000 GJ21,000 GJ

72,000 GJ

65,000 GJ

Standard Efficiency "Near Condensing"

Condensing

Background Research

Commercial Boiler Market Share in B.C. (Estimated)

70 %20 %

10 %

Background Research

Understand market before program design

Stakeholder Research ApproachManufacturers Interviews and Industry Meetings

- Understand ratings (CSA 4.9, BTS2000)

Trade Interviews- Understand barriers & training needs

Customer Market share and end-use research- Incremental cost: incentives up to 50%

- Payback: 3-5 year private sector/10 years public

- understand limits in conversion market

- consider training needs of equipment operator

Partners Keeping them informed

Background Research

“Hearing concerns” = “Hearing barriers”

Concerns (from Interviews) Response (for Boiler Program)

Sizing (75% of boilers over-sized) Design incentive (towards Engineering costs)

Cost of venting Venting incentive (50% of Modifications)

Ongoing maintenance Performance bonus (weekly diagnostics)

Reliability Warranty requirement (two years)

Installed efficiency Requirements (eg., fully modulating, forced/induced draft)

Lack of trade knowledge Training/Support component in program

Large Price Steps Formula-based price incentiveNear Condensing Boilers: $4000 / boiler + $2.00 / MBH

Condensing Boilers: $4000 / boiler + $6.00 / MBH

Program Design

Use program criteria to improve efficiency

Standards (eg., CSA 4.9, BTS2000)- consider future U.S. and Canadian standards- understand mechanics of different standards- ability of manufacturers to certify

Technical Program RequirementsExamples: - Forced or induced draft burner - Fully modulating turndown ratio <= 50% - Condensing Boiler inlet water temp not to exceed 49oC - Intermittent ignition

Building a New Program

Program Implementation & MarketingConsider requirements for unique markets

Examples from Boiler Program:One-on-one marketingSupport materials and case studies to engineers & mechanical contractorsPre-installation review & approvalProgram specific training and seminars for builders and developersIndustry advertisementsTechnical support

Efficient Boiler Program

Conclusions:

Highly technical = longer program development

Highly technical = Industry may tend to wait until

launch dates to actually review materials carefully

For new programs in competitive industries,

information is not necessarily “free flowing”

The devil is in the details!

Efficient Boiler Program

For more information, please contact:

Gordon Monk, P.Eng.

Energy Utilization Manager

Terasen Gas Inc.

Tel. 604-592-7970

E-mail: [email protected]