Why Grid-Interactive Efficient Buildings Feature Prominently in Joe Biden’s Plans
Originally published on RMI.org.
By John Matson
The White House on May 17 announced a slate of new programs aimed at integrating US buildings into the clean energy economy. The initiatives include electrification programs for existing homes, workforce training for next-generation jobs in the buildings sector, and efforts to increase the adoption of efficient electric heat pumps and EV fast chargers.
Alongside the plans for job training and building electrification, the announcement also highlighted the Biden administration’s goals for grid-interactive efficient buildings — a less well-known approach that has significant potential to reduce carbon emissions.
In this blog post, we’ll explore what grid-interactive efficient buildings are and why they feature so prominently in plans for a clean energy future.
What Are Grid-Interactive Efficient Buildings?
A grid-interactive efficient building (GEB) continuously optimizes energy use by combining efficiency measures such as LED lighting, efficient heat pumps, and high-performance windows with smart technologies such as solar, battery storage, and integrated building controls. Rather than simply consuming energy from the grid based on the building’s baseline energy use and occupant demands, a GEB interacts with the grid to continuously manage its demand in response to key signals from the electric utility.
To save money, reduce strain on the grid, or limit carbon emissions from electricity generation, a GEB might shed load (e.g., automatically dimming LED lights throughout the building) or shift its load from one time to another (e.g., drawing from on-site batteries rather than the grid) in a practice known as demand flexibility, or load flexibility.
What Is Demand Flexibility?
Demand flexibility is a building’s ability to shed or time-shift its energy demand in response to near-real-time signals about conditions on the grid. Demand flexibility signals can include the current price of electricity, the availability of renewable energy sources such as solar and wind, and the carbon intensity of the current energy mix. For instance, a GEB might employ demand flexibility to shift its peak electricity demand to a time of day when solar energy is abundant and might otherwise be curtailed.
Demand flexibility offers significant promise for reducing the carbon emissions from building operations, especially as the grid integrates more distributed energy resources. But the benefits can extend beyond cost and carbon savings. As detailed in a new RMI insight brief, buildings that flex their demand can shift energy away from peak usage times, when utilities often rely on fossil-burning “peaker” plants to help meet surging demand. Demand flexibility can therefore reduce the need for these peaker plants, eliminating not only their carbon emissions but also their significant contributions to air pollution.
What Are the Potential Benefits of GEBs?
The potential energy, emissions, and cost savings from combining energy efficiency and demand flexibility in GEBs are substantial. Buildings account for more than 70 percent of US electricity consumption and at least one-third of US emissions, according to the US Department of Energy’s Building Technologies Office (BTO). A new GEB roadmap from the BTO estimates that smarter, more efficient buildings can eliminate 80 million tons of CO2 emissions annually by 2030, reducing the emissions of the entire US power sector by 6 percent. The emissions savings from GEBs would be equivalent to retiring more than 50 midsize coal plants or taking 17 million cars off the road.
Widespread adoption of GEB technologies would reduce peak loads on the grid, which would in turn reduce the needed capacity of the grid to meet those demands. The cost savings of GEBs would therefore extend beyond the owners and tenants of the GEBs themselves. By 2040, the BTO calculates, GEBs could save the US power system more than $100 billion in cumulative electricity generation and transmission costs.
What Are the New US Goals for GEBs?
In the GEB roadmap, released May 17 in conjunction with the White House announcement, the US Department of Energy laid out a goal of tripling the energy efficiency and demand flexibility of buildings by 2030, relative to 2020 levels. To reach that goal, the roadmap articulates 14 recommendations, from enhancing R&D for smart-building technologies to policy options for encouraging integration of GEB practices.
Among the roadmap’s recommendations is that government agencies should “lead by example” — deploying GEB measures in government-owned buildings to demonstrate the benefits and provide valuable insights and best practices for more widespread deployment. Already, the vast majority of US states have adopted requirements for energy usage or efficiency in government buildings, and demand flexibility could become a valuable tool for meeting those requirements.
At the federal level, the savings from GEBs would be significant. The US General Services Administration (GSA) is the nation’s largest landlord, with nearly 10,000 buildings and more than 375 million square feet of real estate under its control. In a 2019 cost-benefit analysis, RMI found that the GSA could save $50 million annually (about 20 percent of its energy expenditures) by implementing GEB measures across its portfolio of buildings. In all six locations that RMI studied in the GSA analysis, the payback period for GEB improvements was less than four years (and in some cases less than a year), demonstrating the soundness of the investment for the government and for taxpayers.
Next Steps at the Federal Level
A new report from the National Renewable Energy Laboratory (NREL) provides a blueprint for the GSA to select buildings that are ideal candidates for cost-effective GEB projects. The report also lays out strategies and best practices for integrating GEB measures into the various phases of contract development for energy-focused building retrofits.
The NREL report notes that the sheer number of buildings managed by the GSA would allow the agency to screen its real estate portfolio for the highest-value GEB candidates before applying the early lessons learned in implementing GEB measures in performance contracts. NREL also notes that the buildings with the greatest economic potential for grid-interactive efficiency tend to share features such as time-of-use energy rates, high demand charges for a building’s peak energy usage, or utility or state programs that incentivize utility customers to be responsive in their energy demand.
One of the challenges identified by the new reports from BTO and NREL is the maturity and availability of some technologies that would optimize GEB implementation. Systems for coordinated, whole-building automation in response to signals from the grid are among the emerging technologies that will be needed to maximize GEBs’ benefits. The GSA’s Proving Ground program is evaluating some of these building control systems in demonstration projects, and the learnings from those evaluations should help to further shape best practices for implementing GEB projects nationwide.
The Path to 2030 and Beyond
By integrating energy efficiency, distributed energy generation technologies, and demand flexibility into its buildings, the GSA can help to advance the state of the art in grid-interactive efficient buildings. The proof points from GEB projects in the federal government’s building portfolio will not only help advance the DOE goal of tripling demand flexibility and efficiency measures by 2030. They should also make for a cleaner, more resilient grid powering smarter, more efficient buildings—all while saving taxpayers money.
Environment
Podcast: Apple CarPlay in Tesla cars, VW on Superchargers, Toyota electric pickup, and more
In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss Apple CarPlay possibly coming to Tesla cars, VW getting access to Superchargers, a Toyota electric pickup, and more.
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US EV sales declined in October following the expiration of the $7,500 federal tax credit on September 30, and the average transaction price (ATP) edged up, according to initial estimates from Kelley Blue Book, a Cox Automotive brand. However, there are still deals to be had.
Kelley Blue Book’s initial estimates show that US EV sales fell to 74,835 in October, down 48.9% from September, which was a record month, and 30.3% year-over-year.
Prices also ticked up. The average transaction price (ATP) for a new EV climbed 1.6% month-over-month to $59,125, which is 2.3% higher than a year ago.
Tesla didn’t escape the downturn, but it held up better than the overall EV market. The company’s ATP fell 1.1% from September to $53,526, and its prices are 5.5% lower than they were in October 2024. Sales of the Model 3 and Model Y both declined month-over-month, and overall Tesla sales decreased by 35.3% from September and 23.6% year-over-year, which are smaller declines compared to the broader EV segment.
Cox Automotive senior analyst Stephanie Valdez Streaty said the shift wasn’t surprising:
We expected this shift in the electric vehicle market. With the IRA-backed sales incentives gone, lower-cost EV volume was hit hard, pushing the mix toward more luxury and driving October’s EV ATP to a 2025 high of $59,125 – now $9,359 above the industry average. Affordability has always been the core challenge with EV sales, and this reset only underscores how critical it is to bring more attainable EV options to market.
Electrek’s Take
September was a record-breaking month for both EV deals and sales. Dealers were offering all sorts of sweet incentives to stack with the federal tax credit to move cars off the lot. October’s sales drop was entirely anticipated, like a pounding headache after a big blowout party.
We didn’t know what the post-federal tax credit EV market would look like. As Valdez Streaty rightly states, EVs do have a higher ATP than the industry average. But it turns out that, so far, it’s not all doom and gloom, and the federal tax credit isn’t the only incentive in town.
Every month, I compile great EV lease deals, and for the last few months, some EVs’ monthly lease payments have been cheaper than before the federal tax credit expired. Many states are still offering rebates on EV purchases, and dealers still have really good deals. While cheaper models would definitely be welcome, there are good deals available right now.
And let’s not forget the fact that EVs are much cheaper to drive than gas cars, with or without that tax credit.
Read more: From $189 a month: 5 of the best EV lease deals in November [Updated]
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The Oshkosh-built Striker Volterra Electric Aircraft Rescue and Fire Fighter (ARFF) packs advanced battery technology to deliver ultra-fast emergency response performance no matter how long it needs to be in action — and Dallas Fort Worth International Airport just put six of the awesome 6×6 machines to work!
Oshkosh has been manufacturing ARFF vehicles since it first launched the MB-5 for use by the US Navy back in 1968, and they’ve been pushing the envelope of disaster response performance ever since. The company’s latest ARFF, the Striker Volterra Electric shown here, features a slanted body with front bumper designed for maneuvering through the ditches and rough terrain they might encounter on a damaged runway. It’s also big — but it’s big for a purpose. Because ARFF vehicles don’t have to navigate the confines of city streets, they can be built bigger, carry more water, more rescue equipment, and more personnel than conventional fire trucks.
As the newest members of the DFW Fire-Rescue fleet, these Striker Volterra Electric ARFF vehicles represent a significant step in DFW’s broader plan to replace its legacy fleet with a modern, electrified response system, while also making DFW the largest Striker Volterra Electric ARFF fleet operator in the US.
“Enhancing performance by reducing response times is the key driver of transitioning to these new vehicles,” said Daniel White, DFW Fire-Rescue Chief. “The Striker Volterra vehicles are faster and more agile than our current fleet. Because they are also safe for our firefighters and conscious for the environment, this investment represents a rare win-win-win, delivering operational benefits while ensuring the safety of our responders and the community we serve.”
The Striker Volterra Electric 6×6 ARFF uses a proprietary Oshkosh electric powertrain and an electro-mechanical infinitely variable transmission (read: CVT) paired to an integrated diesel generator. The setup enables zero-emission electric operation during normal station entry, standby, and low-speed tasks, eliminating firefighter exposure to their ARFF’s diesel exhaust 99% of the time. For sustained high-power demands during active fire suppression, the system seamlessly draws from both the battery and generator, ensuring uninterrupted pumping power and performance without operator intervention.
“Our commitment goes far beyond delivering a vehicle,” said Travis Ownby, sales specialist with Siddons-Martin Emergency Group. “It’s about helping departments like DFW Fire-Rescue lead the way in operational excellence and sustainability. We’re proud to support their mission with the Striker Volterra Electric ARFF vehicles.”
The addition of the Striker Volterra Electric ARFF vehicles also supports DFW’s transition to fluorine-free firefighting foam in line with FAA guidance and the industry’s move away from PFAS-based agents for a more environmentally responsible response capability across the airport.
Electrek’s Take
With the relatively short distances driven and extreme loads involved, airports present a nearly ideal use case for battery-electric vehicles in general, and their immediate off-the-line torque, improved efficiency, and ability to operate much more quietly than diesels (facilitating emergency crews’ communications) could make all the difference in an emergency situation where lives are quite literally on the line.
Plus, as demand for on-road fossil fuels drops, airports and airlines (historically responsible for about 4% Earth’s global warming) are becoming a bigger and bigger slice of a rapidly shrinking pie when it comes to fossil fuel emissions. Or, as OshKosk put it, “As airports continue to prioritize sustainability and operational efficiency, the Striker Volterra electric ARFF stands out as a forward-thinking solution that meets today’s demands while preparing for tomorrow’s challenges.”
It’s a bit pitchy, but I couldn’t agree more.
SOURCE | IMAGES: Oshkosh.
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