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a property company who will also operate the building is deciding whether to build a standard...

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

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Expert Solution

Given that, the office building is 8,000 m2 in area and its energy is supplied 100% by electricity.

The standard efficiency office tower will consume approximately 140 kWh / m2 per year.

The high efficiency office tower will consume approximately 100 kWh / m2 per year.

At first, it must be more expensive to build a high efficiency office building than a standard efficiency office building. But, in the long run, since the high efficiency office consumes less power, it will give you less electricity bill for life long. Hence, it totally makes sense to invest for a high efficiency office building.

Now. to calculate the annual energy cost savings, which is equal to (Daily energy consumption) x (number of days the appliance is used per year). That is, for a high efficiency building, annual energy cost savings = 100 * 8000 = 800,000 amount of money.

But, for a standard efficiency building, annual energy cost savings = 140 * 8000 = 1,120,000 amount of money

That around 320,000 amount of money can be saved if we build a high efficiency office building.

genius_generous answered 1 year ago
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