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Question 8: A property company who will also operate the building is deciding whether to build...

Question 8: A property company who will also operate the building is deciding whether to build a standard efficiency office building or a high efficiency office building. The office building is 8,000 m2 and its energy is supplied 100% by electricity. The standard efficiency office tower will consume approximately 140 kWh / m2 /y. The high efficiency office tower will consume approximately 100 kWh / m2 /y. The incremental cost (i.e. the cost between the standard efficiency and high efficiency office tower) is $40 per m2 and the building systems are expected to last 25 years.

8a. What is the estimated annual energy cost savings per year for the high efficiency building compared to the standard efficiency building?

8b. Does it make sense for the property company to invest in the high efficiency office building?

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