Decarbonizing Real Estate in the Built Environment: Hosted by BioMed Realty
On January 27th The CoreNet Global - New England Chapter Education and Programs Committees co-hosted an engaging event at BioMed’s Assembly Innovation Park. The evening commenced with networking in the penthouse amenity space, followed by an insightful panel discussion and tour of the mixed-use campus in Somerville, MA. Kevin Slein of BioMed Realty, Thomas Joyner of AHA Consulting Engineers, Scott McBurney of Vicinity Energy, Lavelle Freeman of Eversource Energy, and Warren Boutin of Eversource Energy talked through the opportunities & challenges of building a portfolio-wide decarbonization strategy and here is what we learned:
As Massachusetts charges toward its ambitious climate goals, two key initiatives, BERDO (Building Energy Reduction and Disclosure Ordinance) and BEUDO (Building Energy Use Disclosure Ordinance), are taking center stage. These programs, while instrumental in driving energy efficiency and decarbonization, present unique challenges, particularly in building electrification. Enacted in Boston, BERDO mandates buildings to disclose their energy performance and comply with energy efficiency standards. BUEDO, in Cambridge, shares similar reporting requirements but differs in how carbon emission allowances are calculated. In Boston, the threshold for carbon emission allowance is based on building type, whereas Cambridge calculates the emission rate for each specific building. A new reporting mandate in Massachusetts states that all "large" buildings (20,000 sq ft+) in the Commonwealth must report carbon gas emissions.
Transitioning from fossil fuel-based systems to electric alternatives is a cornerstone of decarbonization. However, this shift presents many challenges for the foreseeable future. One challenge is increased energy demand. The increased electricity demand from widespread electrification, particularly during peak hours, can strain the grid. By 2035, electric vehicle adoption is projected to add 1.3 GW of demand to the electric grid, and zero-carbon heating is projected to add 3.5 GW. To put this into perspective, 1 GW is equivalent to 100 million LED lightbulbs! An additional challenge is cost. Upgrading to high performing curtain walls andelectric systems, such as heat pumps, e-boilers and thermal storage can entail significant upfront costs for building owners. These upgrades were on display at Assembly Innovation Park.
Investing in grid infrastructure upgrades will be crucial to handle increased electricity demand from fuel switching. Eversource plans to build 17 new clean energy hubs in Massachusetts and upgrade 26 existing energy hubs over the next 10 years. These hubs will increase the available electrification hosting capacity by 180% over the next decade. These hubs would also be able to support the adoption of 2.5 million electric vehicles and 1 million clean energy heat pumps.
Despite these challenges, the benefits of decarbonization are undeniable. Electrification powered by renewable energy sources drastically cuts greenhouse gas emissions, combating climate change. Additionally, electrification, particularly when coupled with on-site renewables and storage, enhances energy security and grid resilience. A resilient grid helps businesses and homes rely on consistent power supply and support climate change adaptation. Last but not least, shifting away from on-site fossil fuel combustion improves local air quality, benefiting public health.
Our journey to net zero is possible, and it will be accomplished “one bite at a time” by implementing renewable energy, capital improvements, electrification and carbon offsets. You can start by taking the four-phase approach discussed by the panel. The first phase is the discovery phase, where you take inventory of what you currently have, collect data, and review building characteristics. Phase two is to study what you just found out. Dig deeper with MEP studies, utility outreach and CAPEX estimates. Phase three is to build out a detailed design to determine cost and feasibility, and the last phase is implementation. Phase four executes the planned improvements and modernization determined by the study.
Following the panel, it is clear we have the professionals and resources to tackle decarbonization in Massachusetts. As BERDO and BUEDO regulations are modified, we can assume more cities around the world will join by creating frameworks of their own for a net zero future, and this will drive development. By acknowledging the challenges and embracing the benefits of electrification, policymakers, building owners, and stakeholders can work together to create a cleaner, more sustainable future.
Thank you to our venue sponsor, BioMed Realty, and our event sponsors: AHA, Perkins + Will, and Northstar Project Management & Real Estate Services.
This event was brought to you by The CoreNet Global - New England Chapter Education and Programs Committees. The Education Committee strives to develop programs with a variety of real estate, industry-focused, technology, and personal development topics. The Programs Committee mission is to present quality business cases and provide early access to environments that inspire business productivity and enhance experience.
Interested in planning an event with the CoreNet Global - New England Chapter? Reach out to someone from the Education or Programs Committees. You can learn more about BERDO on the City of Boston’s website. You can learn more about Assembly Innovation Park on itswebsite here.