Green Value Inferences of rated green buildings in India Saurabh Verma, Dr. Anil Kashyap
Green Value Inferences of rated green buildings in India
Saurabh Verma, Dr. Anil Kashyap
Resources Crisis – Efficient Management
► Cities Engine of Growth – 62% GDP (75% by 2021) Commercial Building Stock
to Triple But
► Commercial Energy shortage of 41% in 2012
► Water Demand Supply Imbalance 50% by 2030
► 50% increase solid waste Mgmt. 2001 to 2011, 7% CAGR
► Building materials – Resource challenges, Hyper Inflation, Supply Bottle necks
► 2341 MT of Carbon Emissions annually; Will be top emitter along with China by 2030
Alternative – Green rated buildings – Resource Efficient & Environmental Friendly
Source – Planning Commission, GOI 2013, McKinsey-2009, UNDP 2011
Motivation to Research
Importance – Global Context
Buildings negative impact on Environment Green House Gas Emissions Climate Change
Buildings major consumer of resources Energy Electricity & Water Building Materials - Steel, Glass & Cement
Buildings operations creates Solid Waste – Needs Management Grey/Black Water – Needs Treatment
Building contribute 30% of Co2 emissions, 40 % Energy requirements, 20% water usage, 30% solid landfill waste, 40% raw materials and 70% Electricity consumption ( Source -Centre for International Economics, 2007)
Top to Bottom Approach
Does investment in Green Buildings over Conventional give financial benefits to the Investors/Developers and Financial institutions
Aim and Research Questions
► RQ.1 What is the Institutional framework surrounding green building in India?
► RQ.2 What are the various rating systems, comparative analysis and spatial and geographic distribution of the Green building stock in India?
► RQ.3 Does green buildings have better rental premium over conventional building in the NCR Region?
Green Buildings – Sustainability concepts applied to construct building which are Environmentally responsible and Resource Efficient throughout the life-cycle.
Green Buildings in India
► Footprint – 3.18 B sq.ft & more than 3500 Buildings
► LEED, GRIHA and IGBC Rating Systems
1883 LEED certified projects with decade of presence
LEED Rating – Certified, Silver, Gold and Platinum
GRIHA – Star Rating system One to Five Star
BEE Star Rating System of Building per ECBC Codes
LEED and IGBC popular with Businesses; LEED specially with Multinational Companies
GRIHA popular with Government Buildings and places where Extra FAR given by Local Authorities
Researched Costs & Financial Benefits
International Literature Review
Rated Green Buildings costs 2 – 15% more based on level of rating
(Eang 2008, CBRE 2009, Langdon 2007, Kats and Capital 2003, Syphers 2003)
Rental Premium (2.1% - 17%) and Occupancy rate premium ( 0 – 18%) ( Miller et al 2008, Eichholtz ( 2010a, 2010b, Pivo and Fishes 2010, Wiley et al 2010, Fuerst McAllister 2011)
Varied payback period based on levelof Rating – US LEED Experience; 7 – 25 years ( Brotman 2014, Gabay 2014)
Renewable Energy & Passive Techniques
Literature Review National
Costs 2 – 18% based on level of rating and Payback period 3- 7 years (Source – CII 2010)
Two out of every nine green rated building doesn’t qualify for BEE star rating in day office
commercial buildings (CSE 2014)
Renewable Energy for buildings – Hot Tropical climate with average eight months of sun light makes solar energy a good diversified power source (Info Dev, World Bank Group2014)
MNRE - Install 22 GW of solar capacity;40 GW of wind power by 2022 (Ministry of New and
Renewable Energy-India, 2012a; GWEC, 2013; GWEC, 2012)
Business Case for Green Building
Research Methods
► Basic classical ethnographic research method
► Field visits, Secondary Data Analysis and Exploratory Interviews
► Unstructured Interviews conducted at Conferences
Stakeholders – Rating Agencies, Architects, Green Consultants and Developers
50 Unstructured Interviews Conducted
Finding - Secondary Data Analysis
Initial lot of platinum Green Ratings had significant incremental costs 8 – 18%
Solar and Photovoltaic pushes payback period and incremental costs significantly
Incremental costs can be minimal with use of Passive Design Strategies
Gold or three star is the Optimal rating with optimal Payback period of 3 -4 years
using Passive Design Strategies
Passive Design, Green design in Pre-Design Phase and optimal star rating
Unstructured Interviews Findings
Green Construction Costs can be same as Conventional Buildings
Co-ordination Costs – Part of design costs can be significant
Start with green mandate and level of rating in Pre-design phase
Selection of experienced project design teams with rating experience
Integrated team working to reduce time taken and re-work costs
Defined common design, material selection, specification sheet and execution strategy reduces Design, Material and Construction Costs.
In 0-3% incremental costs green rating up to gold or three star is possible
Operational Efficiency – Financial Benefits
With Solar Panels Savings – 45 % and above achievable
Without Solar Panels < 40 % Savings
Water Savings Significant; possible more with GRIHA rating as compared to LEED
GRIHA rating more energy and water efficiency possible but lacks in material selection
Ratings Claim - 20 – 30 % Energy Saving ; 30 – 50 % Water Savings
Perceptions in the market place
Perceptions/Findings – Exploratory Interviews
GRIHA rating can be market unfriendly and stringent but more suited to Indian conditions
Rating Agencies - Regular monitoring and efficiency measuring mechanisms are needed
North Indian Developers – Ceremonial Greening
South Indian Developers – More Informed Decisions
Data Driven Research Needed for establishing Tangible Benefits of Green Buildings >
Data Collection Important
Financial Benefits – Data and Evidence based research
Conclusion
► Evidence based research needed to establish Green Premium
► Data Collection and Analysis on Green vs. Conventional buildings in same location
► Variables to be looked at for Tangible benefits
► Rental Premium
► Occupancy rates
► Operating Savings
► Intangible benefits – Branding, Productivity and Health benefits need
further studies
Data analysis of Financial Benefits
Recommendations
►
Quantitative Research on Tangible benefits
– Rental Premium
– Occupancy rates
– Operating Savings
Tenant Side Demand, Mandate, Awareness and Willingness to pay studies needs to be further conducted