Energy Demands

Commercial Buildings

Overview

A commercial building is defined as a building with more than 50 percent of its floor space used for commercial activities. Commercial buildings include, but are not limited to, stores, schools, churches, gymnasiums, libraries, museums, hospitals, clinics, warehouses, and jails. Generally, government buildings are included except for buildings on military bases or reservations.

Facts

Commercial buildings are heavy users of electric power. However, in industrialized countries there is a growing trend towards energy conservation. Commercial building philosophy will likely shift from the design of single, stand-alone buildings to campuses— or even communities—to one where resource management will be optimized. Nevertheless, in developing countries, commercial building energy use is expected to continue to grow at an annual average of 2.7% until 2035.

Source: “International Energy Outlook 2010.” Energy Information Administration

Currently, in the U.S., the commercial sector produces 19% of all man-made carbon dioxide emissions. However, in the near future, many commercial buildings may use integrated photovoltaic (solar-energy) panels on limited areas of their façades to reduce energy use and emissions. These panels will generate about 15 kilowatts, or enough electricity to run five suburban homes. At the same time, new commercial buildings in the future will likely have automated controls like occupancy sensors and programmable thermostats that can reduce energy use in infrequently used areas. Furthermore, some large commercial sites are installing cogeneration plants that burn natural gas to produce electricity and use excess heat to heat and cool the buildings.

Source: “International Energy Outlook 2010”, Energy Information Administration

Source: “Towers in Manhattan Gather Heat from Power Generators”; New York Times; February 24, 2009

Current spending on more efficient appliances and office equipment is substantial, and is expected to increase. Developing countries are expected to invest an additional $2 trillion by 2035, mainly in electrical appliances. Around 57% of this investment is expected to come from China, while $140 billion is expected to be invested in India.

Source: “World Energy Outlook 2010.” International Energy Agency

Consumption of electricity in the commercial buildings sector has doubled in the U.S. in the last 18 years, and is expected to increase by another 70% globally by 2030. Although controls on carbon dioxide emissions, like those found within the Kyoto Protocol, are accelerating the demand for "green" power and energy-efficient buildings, natural gas could continue to displace petroleum products and coal as the preferred commercial heating fuel in developed countries.

Source: U.S. Department of Energy;

Source: “International Energy Outlook 2010” Energy Information Administration

The U.S. Environmental Protection Agency (EPA) estimates that if the energy efficiency of commercial and industrial buildings in the U.S. improved by 10%, Americans would save about $20 billion and reduce greenhouse gases equal to the emissions from almost 30 million vehicles each year.

Source: Environmental Protection Agency; available: http://www.energystar.gov/index.cfm?c=spread_word.sample_email

One of commercial buildings’ greatest energy requirements is for cooling. However, there are efficiency measures that can be implemented to lower the total energy required for cooling. Ground source heat pumps utilize geothermal energy to provide both heating and cooling. This technology has already proven to be commercially competitive with conventional cooling systems in large office buildings, commercial buildings, hospitals, housing, industry and agriculture. A district cooling system, which distributes cold water through a network of pipes is another efficient means to cool commercial buildings.

Source: “World Energy Outlook 2010.” International Energy Agency