Electrification of High-Rise Buildings

In Conversation with Developers

With soaring housing demand, land values, and recognition of the importance of green space, high-rise residential buildings will be increasingly prominent in metropolitan regions across the province. To ensure this form of housing aligns with greenhouse gas (GHG) emission targets, building electrification is surging.  

Although significant attention is paid to initiatives in low and mid-rise buildings, the electrification of high-rise residential and mixed-use towers receives a lot less consideration. This brief seeks to demystify the topic by elevating some key voices involved in building all-electric high-rise buildings.  

We interviewed three developers working in Metro Vancouver and the Capital Regional District who are amongst the leaders building all-electric high-rise buildings today. The following is a summary of the opportunities and hurdles they experience, with shared lessons that can be applied to future projects. 

Key Takeaways 

• Minimal to no added cost. With the caveat that in situations where land use plans do not align with utility planning, there can be unexpected costs to increased electrical capacity. The recent announcements of substantial provincial investment to expand the electrical grid in regions of rapid growth have been received positively and have helped dampen concerns about these unexpected costs. Many developers see electrification as a financially sound decision and have benefited from financial incentives to reduce emissions.

• Electrifying primary systems isn’t hard. Electrifying the primary heat and hot water systems isn’t the problem; navigating planning processes and obtaining permit approvals present a more significant challenge.

• Trust needed to scale electrified systems. Many high-rise buildings are not fully electrified due to habit. These buildings often include BBQs in the common areas, gas-based commercial kitchens, or gas boilers to ensure peak needs are met. Many of these choices relate to historical norms rather than best-practice design. There is a clear need to build confidence in the electrical system’s ability to handle peak loads and highlight examples that the societal transition from fossil fuel to electrified systems is already well underway.

• Capacity-building as a cost-saving tactic to help ensure:

• • Optimal system function. Adequately designing systems to ensure they are sized, installed, and maintained correctly, especially with winter design conditions.

  • Optimal system design. Properly planning (e.g., utilizing Integrated Design Process) to ensure building envelope systems reduce/minimize heating and cooling demands.

  • Ongoing system performance. Monitoring and verifying projects, both during construction and once completed, to help inform future project success.

  • Operator buy-in. Owners/managers educating and earning buy-in from operators managing the system on the ground. This is crucial to ensure the systems work as designed.

• Regulation has an impact. Many local governments are looking to adopt policies such as the Zero Carbon Step Code (ZCSC) that have tangible emissions reductions. Electrification allows developers to meet the requirements of the ZCSC.

• Incentives facilitate industry-wide change. Developing properties right now is hard. As some have already done, local governments could offer financial incentives such as reduced permitting fees, shorter permitting periods, density bonuses, and rebates in exchange for lower emissions buildings. 

PCI Developments

PCI Developments is a real estate developer and investor based in the Metro Vancouver area. They’re known for transit-oriented and mixed-use developments, and for their experience building and operating rental properties. PCI Developments is also gaining a reputation for building low-carbon high-rise buildings. Their decision to electrify developments has been influenced by both regulatory requirements and long-term financial planning.

Kate O’Neill, Senior Development Manager at PCI Developments, says that electrification enables PCI to comfortably hit energy modelling and carbon targets. Furthermore, it meets new regulations such as the Zero Carbon Step Code (ZCSC), which requires decarbonizing heating and hot water systems and aligns with PCI’s internal Environmental Social Governance (ESG) targets. PCI is also influenced by the generally more affordable electrical operating costs of an all-electric building, which is of obvious value to their build-and-hold properties. PCI has made electrification work financially and now sees it as an uncontentious part of the complex decision-making process for building high-rise residential towers.  

According to PCI, the one remaining hurdle for full electrification of large-scale multi-tower projects is a hesitation to place the full load on the electrical system at times of peak electrical demand. PCI hopes to transition from buildings with gas boilers for supplemental heating to fully electrified buildings soon. One key reason for this is that they’ve found that all-electric buildings with a good envelope generally have lower operational costs than buildings with gas-fired equipment. 

“Put simply, PCI is fully on board with electrification”

Kate O’Neill, Senior Development Manager at PCI Developments 

All in all, the shift to electrification at PCI has happened quite naturally. Electrification aligns well with increased attention paid to emissions from existing buildings —in particular Vancouver—and greater demand for cooling. In one project, the choice to pursue electrification also gained buy-in from nearby residents, who mostly viewed low-carbon buildings as a positive aspect of the development during the consultation process. Additionally, electrification was a key feature that helped PCI secure a preferred rate through their bank's green loan program. 

Brivia Group

Brivia Group is a Montreal-based investment and development company. They are known for building high-end condominiums and rental housing projects in Montreal and have recently moved into the Toronto and Vancouver markets. Brivia’s flagship British Columbia (BC) project is also aiming to be the world’s tallest Passive House building. 

Rick Gregory, Project Director at Brivia Group, was frank in stating that Brivia had not initially sought to electrify its BC project. The company ultimately chose to do so after assessing local market demands and the long-term regulatory environment. While they found there were cost premiums associated with following the Passive House Standard for their project, Rick was clear that electrification did not add cost.  

“Electrification presents no cost risk. In fact, electrification could even reduce cost risk and help future proof the building.”

Rick Gregory, Project Director at Brivia Group 

From Rick’s perspective, electrification of the building’s primary energy systems, with features like induction cooktops and cooling has been a key selling point. The building has a backup gas boiler for domestic hot water, while the electrical system is designed to handle peak space heating loads. It’s worth noting that the electrical load is less substantial in this building because of the high-performance envelope required of a Passive House building. 

Rick also noted that another benefit of electrification was the positive reception from municipal staff—electrification aligns well with the City of Vancouver’s emission reduction targets—and from the public. This facilitated the approval and public consultation process. Pursuing a complex and first-of-its-kind building often has its fair share of headaches while navigating the permitting process but the choice to electrify this building did nothing but contribute positively to the permitting process. 

All in all, Rick was clear that we are in a climate emergency; actions such as electrification are not only important for the business case but are imperative to protect the livelihoods of future generations.  

Chard Development

Chard Development is an urban real estate development firm with a varied portfolio across Metro Vancouver and Greater Victoria that includes condo, rental, and commercial buildings. They have also recently established a full-service property management company. 

Anthony Quin, Director of Development at Chard Development, described why Chard pursued electrification. Reasons include:  

1. Compliance: Electrification addresses standards like the ZCSC, increasingly adopted by municipalities to introduce GHG Intensity (GHGi) limits.  

2. Municipal Approval: City Officials are increasingly acknowledging the benefit of new electrified large buildings. The upgrades that come with these projects offer benefits to the surrounding streetscape (undergrounding) and network and can enable other buildings to upgrade at a reduced cost. The significance of these benefits is being recognised by municipalities in early discussions and negotiations at the rezoning stage. 

3. Partnerships: Increasingly more pension funds are adopting ESG requirements which in turn encourage or require low-carbon projects.  

4. Long-Term Planning: Building more rental housing has shifted the focus to operating costs and long-term planning around how market interest in low-carbon buildings may evolve.  

Chard does not have any internal GHG emissions reduction targets but many of its financial partners have clear goals for carbon reduction. Ultimately these guide Chard’s projects. Echoing statements from PCI, Anthony explained that some of their buildings also rely on a small gas-fired supplemental system to ensure peak loads are met but that this will soon evolve to an all-electric system. As industry capacity and electrical distribution planning grows more sophisticated in BC, it is Chard’s belief that all-electric buildings will become known as the pragmatic option for the industry at large.  

“We have a responsibility as developers here to play a positive role in addressing climate change. We are realistic about what we can achieve. We have found electrification to be completely feasible, with great value in emission reductions for money spent.”

Anthony Quin, Director of Development, Chard Development Ltd.

A B2E publication, supported by BC Hydro, and written by Natalie Douglas, ZEBx Program Manager.