The Greatest Barriers to Building Electrification – Facilitiesnet

Report on Building Electrification and its Alignment with Sustainable Development Goals

The Strategic Imperative for Electrification in Achieving Global Goals

Facility managers are increasingly focused on building decarbonization and energy efficiency, aligning with global sustainability targets. The transition from legacy fossil fuel systems to comprehensive electrification is identified as a critical pathway to achieving these objectives. This strategic shift directly supports several United Nations Sustainable Development Goals (SDGs), particularly those concerning energy, infrastructure, and climate action.

• SDG 7 (Affordable and Clean Energy): Electrification facilitates the transition of building infrastructure to utilize renewable energy sources from an increasingly clean electrical grid. As stated by Mehdi Jalayerian of Stantec, this process is essential for buildings to adapt to and leverage renewable energy applications.
• SDG 13 (Climate Action): The primary driver for electrification is the reduction of greenhouse gas emissions. Kate Buczek of the Cook County Bureau of Asset Management notes that carbon neutrality goals are only possible through complete electrification, as it allows for the use of renewable energy certificates and on-site generation to fully decarbonize operations.

Barriers to Sustainable Infrastructure Development (SDG 9 & SDG 11)

Despite the clear benefits, the path to electrification presents significant technical and financial challenges, hindering progress toward SDG 9 (Industry, Innovation, and Infrastructure) and SDG 11 (Sustainable Cities and Communities). These obstacles are particularly acute in existing and older buildings.

Technical and Infrastructural Challenges

• Legacy Infrastructure: Many older buildings lack the electrical capacity to support modern, all-electric systems. Mahesh Mohnalkar of the Chicago Housing Authority highlights that some properties still operate on 60-amp panels, which are insufficient for full electrification and require major overhauls.
• Spatial Constraints: Retrofitting buildings, especially high-rises and smaller structures, presents physical challenges related to space availability for new electrified equipment.

Financial and Market Challenges

• Market Volatility: Fluctuating energy markets and high capacity costs, such as the significant increase in PJM’s capacity costs, can make the short-term business case for electrification difficult.
• Funding Hurdles: Securing capital for these large-scale conversions remains a primary obstacle, especially for public agencies managing extensive portfolios.

Strategic Pathways for Implementation and Long-Term Success

Overcoming these barriers requires a long-term, data-driven approach that treats electrification as a fundamental cultural shift rather than a one-time project. The following strategies are recommended to advance building electrification in line with the SDGs.

1. Adopt a Phased Approach: Implement electric technologies strategically over time, aligning projects with favorable market conditions to mitigate burdensome operational costs. This ensures a measured and financially viable transition.
2. Develop a Resilience-Focused Business Case: Frame the investment not solely on immediate energy savings but on long-term operational resilience and future-proofing the facility against regulatory changes and the evolving energy landscape.
3. Pursue Innovative Financing and Partnerships: Leverage alternative funding mechanisms such as guaranteed energy performance contracting and public-private partnerships to finance projects despite budget constraints, as noted by Mohnalkar.
4. Foster a Culture of Continuous Improvement: Embed electrification within a long-term strategic plan. This requires sustained effort and planning to ensure buildings are prepared for a future where renewable energy sources are the primary power supply, contributing to resilient and sustainable communities (SDG 11).

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on building electrification and decarbonization directly addresses or connects to several Sustainable Development Goals (SDGs). The core themes of transitioning away from fossil fuels, improving energy efficiency, and upgrading infrastructure to be more sustainable are central to the following goals:

• SDG 7: Affordable and Clean Energy

  This goal is central to the article’s discussion. The entire premise of electrification is to shift buildings from fossil fuels to an electrical infrastructure that can be powered by renewable energy sources. The article explicitly mentions achieving “energy-saving goals” and improving “energy efficiency,” which are key components of SDG 7.

• SDG 9: Industry, Innovation and Infrastructure

  The article focuses on upgrading existing building infrastructure (“legacy systems”) to be more sustainable and resilient. It discusses the technical challenges of retrofitting older structures, such as high-rise buildings and properties with outdated electrical panels (e.g., “60-amp panels”), which directly relates to the goal of building resilient infrastructure and promoting sustainable industrialization.

• SDG 11: Sustainable Cities and Communities

  By addressing the decarbonization of buildings, particularly in an urban context like Chicago, the article connects to the goal of making cities more sustainable. Reducing greenhouse gas emissions from buildings contributes to lowering the overall environmental impact of a city. The mention of the Chicago Housing Authority also links the issue to urban housing infrastructure.

• SDG 13: Climate Action

  This is a primary driver for the actions discussed in the article. The text explicitly states that facility managers are working on “decarbonization efforts” and “greenhouse gas reductions or carbon neutral goals.” The article frames electrification as the essential pathway to achieving these climate-related objectives, stating, “they’re only possible if you electrify everything.”

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s content, several specific SDG targets can be identified:

1. Target 7.2: Increase substantially the share of renewable energy in the global energy mix.

   The article directly supports this target by describing building electrification as a necessary “transition… to renewable energy applications.” It discusses making buildings “adaptable” to an electrical supply that is increasingly powered by renewables and mentions using “renewable energy certificates or to install renewable energy on site to fully decarbonize.”

2. Target 7.3: Double the global rate of improvement in energy efficiency.

   The article opens by stating that “Facility managers are looking to make improvements to their building’s… energy efficiency.” It later notes that electrification “improves operational efficiency,” directly aligning with this target’s goal of enhancing energy performance.

3. Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable.

   This target is reflected in the article’s focus on retrofitting “existing buildings” and rethinking “legacy systems that rely on fossil fuels.” The discussion about converting older buildings with natural gas heat sources and overcoming challenges in high-rises and buildings with inadequate electrical panels is a direct example of the effort to upgrade infrastructure for sustainability.

4. Target 11.6: Reduce the adverse per capita environmental impact of cities.

   The goal of achieving “carbon neutral goals” and reducing “greenhouse gas reductions” in buildings, as mentioned by the Cook County Bureau of Asset Management, directly contributes to lowering the environmental footprint of the city of Chicago, which is the setting of the discussion.

5. Target 13.2: Integrate climate change measures into policies, strategies and planning.

   The article emphasizes that electrification is not a “one-time conversion” but a “culture that we need to do, and it requires planning.” This call for a “long-term, data-driven process” and a “phased approach” to achieve decarbonization goals reflects the integration of climate action into organizational strategy and planning.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article mentions or implies several indicators that can be used to measure progress:

• Indicator for Target 7.2 (Renewable Energy Share): Share of renewable energy in total final energy consumption.

  The article implies this indicator through its discussion of connecting buildings to “renewable sources that are more prominent in the infrastructure” and the use of “renewable energy certificates.” Progress could be measured by the percentage of a building’s or a portfolio’s energy consumption that is sourced from renewables.

• Indicator for Target 7.3 (Energy Efficiency): Energy intensity measured in terms of primary energy and GDP.

  At a building level, this can be adapted to measure operational efficiency. The article’s mention of “energy-saving goals” and improved “operational efficiency” implies indicators such as a reduction in energy consumption per square foot or a decrease in overall energy costs (despite short-term market fluctuations like the “PJM’s capacity costs”).

• Indicator for Target 9.4 (Sustainable Infrastructure): CO2 emission per unit of value added.

  A more direct indicator implied by the article is the number or percentage of buildings converted from fossil fuel systems (e.g., natural gas) to all-electric systems. The article frames the conversion itself as the key action, so tracking the rate of these conversions would be a primary measure of progress.

• Indicator for Target 11.6 & 13.2 (Environmental Impact & Climate Action): Greenhouse Gas Emissions.

  The article explicitly references “greenhouse gas reductions or carbon neutral goals.” This points directly to the most critical indicator: the measurement and reduction of GHG emissions (in tons of CO2 equivalent) from building operations. Achieving “carbon neutral” status is the ultimate measure of success mentioned.

4. SDGs, Targets and Indicators Analysis

Source: facilitiesnet.com