Strategic Electrification, Decarbonization, and the Role of Advanced Heat Pump Technology
The end result will be the reduction of greenhouse gas emissions, the use of renewable energy, increased energy efficiency, a clean-energy economy, and a resilient and distributed energy system. Strategic electrification, in addition to energy efficiency and carbon-free electricity are crucial to meeting goals by 2040.
To reach these end targets, the New York State Research and Development Authority (NYSERDA) has assessed the use of several heat pump technologies, including ground-source heat pumps (GSHP), air-source heat pumps (ASHP), and commercial ASHP applications with variable refrigerant flow (VRF) technology.29 VEIC maintains that New York could reach the following milestones by 2025 and 2030:
- ASHPs installed in two-thirds of New York households by 2030.
- 31 TBTU of energy savings from heat pump installations by 2025, contributing 17 percent of the savings needed to achieve New York’s 185 TBTU 2025 efficiency target.
- 3.5 percent of New York’s GHG emissions reductions coming from heat pump installations by 2030, contributing to the goal of 40 percent GHG reduction compared to baseline emissions in 1990. Focusing on the residential sector, for which better data was available, the emissions savings from this level of adoption would be nearly 20 percent30
NYSERDA suggests a variety of approaches for encouraging the adoption of technologies that complement strategic electrification, including a variety of incentives geared toward different sectors. For instance, incentive designs range from “downstream rebates paid to customers, to midstream incentives paid to contractors, to upstream incentives paid to wholesale distributors.” Each of these rebate strategies targets a different actor in the value chain, each addressing different challenges.
NYSERDA is also leading market development initiatives with various programs designed to reduce costs, accelerate market demand, and increase private investment in energy-efficiency and clean-energy technologies. Some programs include the Air Source Heat Pump Program and the Ground Source Heat Pump Program, both of which offer monetary incentives to contractors.31
Currently, NYSERDA does not offer incentive programs for VRF zoning technology. However, VEIC recommends the following to VRF stakeholders, including NYSERDA: aggressively promote VRF systems for commercial and residential new construction and in building codes; support the accelerated transition of heat pumps to lower global warming potential (GWP) refrigerants; explore distributor incentives for VRF technology; develop regional standards for VRF systems in the Northeast; review building code barriers to VRF technology; consider creating a VRF “Clean Energy Challenge;” accelerate NYSERDA’s soft cost reduction strategy for GSHPs; and develop and fund demonstration projects.32
The combination of strategies mentioned above can all help transition toward the ultimate goal of the Green New Deal: implementing an energy system that is clean, reliable, and affordable.
Conclusion
Overall, the adoption of heat pump technologies can help reduce the carbon footprint of buildings, enabling the country to move more progressively toward adopting clean energy. Economically, strategic electrification and heat pump technologies have the potential to reduce operating and maintenance costs. Focusing on strategic electrification, or beneficial electrification, also reduces dependence on fossil fuels and has a positive impact on the environment as well as human health, comfort, and safety.
MINNESOTA POWER, CLOQUET, MINNESOTA
Minnesota Power's Cloquet Office
Minnesota Power is a regional utility company serving 145,000 customers in Northeastern Minnesota. The staff pride themselves on promoting energy-efficient technologies and saving customers money. Like many of its customers, Minnesota Power faces efficiency challenges within existing and aging facilities. This led leadership to pursue a high-performance HVAC retrofit in one of its offices.
Minnesota Power needed an HVAC system that could perform in Minnesota’s cold win-ters, and VRF technology with hyper heat offered the solution.
After seven years of failing compressors, humidity issues, and frigid winters, a defective HVAC system in its Cloquet, Minnesota, office had left the utility company at its wit’s end. After assessing the needs of the building and its occupants, the sales team from the manufacturer specified and designed a variable refrigerant flow (VRF) zoning system, finally solving the building’s issues.
The Cloquet office is home to Minnesota Power’s customer-service department and linemen who are in and out of the building several times each day. While only serving about 20 employees at a time, the 5,000-square-foot office space was in need of attention.
“For four summers in a row, we did not have air-conditioning. We went through winters with only baseboard heat and hot summers with fans running constantly,” expresses Craig Kedrowski, business service advisor, Minnesota Power. “The HVAC units seemed to be ‘fighting’ one another, and the vendor was not responsive in helping us with our system’s issues. It prompted us to seek out another solution.” In 2018, local mechanical contractor, Zach Wehr from Eclipse, who had worked with Minnesota Power’s conservation program, invited a VRF manufacturer to tour the office.
“Every time we did a walkthrough, the system was not working,”notes the VRF manufacturer representative. “There were multiple service calls, and the summers were always muggy and hot. The outdoor unit fans would spin but were not rejecting any heat."
Ultimately, Wehr knew a variable refrigerant flow (VRF) zoning system was the solution Minnesota Power needed and sought consultation on the system's design. Wehr and the manufacturer contact noted significant errors in the existing installation.
The original system had a boiler added on to an air-cooled condensing unit to keep it running in the wintertime, and it was not functional. With record-breaking low temperatures the previous winter, the only way the building stayed warm was by using its electric baseboard auxiliary heat.
Once a design was established, the group presented its plan to Minnesota Power as a turnkey manufacturer project. Kedrowski and his team were thrilled. “A big issue we had with the previous vendor’s system is that they did not take into account the makeup air units or building controls. The project team took everything into account with their strategy,” Kedrowski says. “With the chance to go with VRF technology, we jumped at the opportunity.”
The design includes high-performance heat recovery VRF technology as well as three energy-recovery ventilators (ERVs) to bring in fresh, outside air. Comprehensive building automation controls were specified for system management. Each tie in to Minnesota’s Power’s building automation system at its Duluth headquarters location, streamlining efficiency and comfort control.
As well, the VRF system doubles as a display of energy-efficient performance for the company’s current and future customers.
Electrification in Cold Climates
For Minnesota Power, having an effective, electric-powered VRF system does more than solve comfort issues. Minnesota is one of the frontrunner states in the country to strive toward strategic or beneficial electrification. This concept involves moving from fossil fuel reliance to the electric grid, which reduces carbon emissions and cuts consumer costs.
“Because we recommend this equipment in our conservation program, we were interested in having a showcase where we present simultaneous heating and cooling,” Kedrowski says. “Beneficial electrification is something that is really coming along. Our town’s big university and city buildings are looking for options to increase sustainability and move away from fossil fuel use.” In the Cloquet office’s conference room, two indoor units each connect to an individual thermostat that lights up either blue or red for cooling or heating, respectively. Side-by-side, the controls show and explain the concept of heat recovery.
However, Minnesota winters pose a big challenge with electrification: extreme cold. The region’s low-ambient temperature is minus 20 degrees Fahrenheit, and it can get even colder. Many engineers in the area believe VRF is a great technology, but only a few are comfortable specifying it because of the low-ambient conditions. For the project team, combining supplemental heat with VRF technology is a win-win: customers get clean, energy-efficient energy, with backup heating for freezing winters.
For many developers and engineers, their gut reaction is to explain why electric heat is super expensive to run. With today's high-performance heat pumps, the auxiliary heat will almost never run. “For this project, we are going to continue to submeter the electric heat going into next winter, and we have interlocked the controls system with an accessory that enables supplemental heat sources. We will be able to verify how often the supplemental heat actually runs and under what outdoor conditions it is enabled," explains the manufacturer contact.
As a commercial engineer in the region, Wehr adds, “First and foremost, the technology has come a long way, especially in terms of payback, life expectancy, rate of return on investment, and performance—though I can understand the apprehension of some based on past technology. That said, the system we installed at Minnesota Power will kick off at minus 25 degrees Fahrenheit and switch to supplemental heat. I have the highest confidence in the equipment. I have had it in my building since 2008 with no issues.”
Installation took place in April 2019, and the system has only received positive feedback, especially in regard to the simultaneous heating and cooling. “I am glad we finally got this rectified,” Kedrowski says. “Our coworkers are loving it. We have some people that want their room 80 degrees Fahrenheit even in the summer, and then some want it 65 degrees Fahrenheit. The VRF system allows them to do that.”
Even more, the system allows Minnesota Power staff to continue clean-energy efforts and educate customers. “Public utilities like Minnesota Power are making the investment and doing the research for the betterment of the communities they serve. Projects like this are especially important for engineers and building owners to see because they are the ones with the funds to take electrification mainstream,” Wehr says.
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