IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i16p7027-d1457395.html
   My bibliography  Save this article

Sustainability Development through a Nearly Zero Energy Building Implementation Case: An Office Building in South Jakarta

Author

Listed:
  • Farizal Farizal

    (Department of Industrial Engineering, Faculty of Engineering, Kampus Baru UI, Universitas Indonesia, Depok 16424, Indonesia
    Research Center for Biomass Valorization (RCBV), Kampus Baru UI, Universitas Indonesia, Depok 16424, Indonesia)

  • Muhammad Aqil Noviandri

    (Department of Industrial Engineering, Faculty of Engineering, Kampus Baru UI, Universitas Indonesia, Depok 16424, Indonesia)

  • Hanif Hamdani

    (Department of Industrial Engineering, Faculty of Engineering, Kampus Baru UI, Universitas Indonesia, Depok 16424, Indonesia)

Abstract

Nearly zero energy buildings (NZEBs) might play a significant role in addressing current global environmental problems, i.e., greenhouse gas (GHG) emissions. Buildings are one of the main electricity consumers. With current electricity production coming mainly from fossil fuel power plants, buildings contribute indirectly to GHG emissions. This report shows potential energy-saving alternatives (thus reducing the carbon footprints) for an 18-story office building in South Jakarta’s central business district. Four alternatives are considered, namely cooling tower and CWP pump replacement, BAS installation, LED dim light replacement, and solar panel installation. The project that implements all four alternatives indeed produces the biggest emissions savings. However, its net present value (NPV) is negative, which means the project is not economically feasible. Furthermore, any combination of projects involving solar panel installation will produce negative NPVs. The combination of cooling tower and CWP pump replacement, BAS installation, and LED dim light replacement will be the best option, with an NPV of IDR 437,853,822, an energy consumption index (IKE) value of 11.76 (meaning the “efficient” building category) and a carbon emissions reduction of 1172.65 tons of CO 2 .

Suggested Citation

  • Farizal Farizal & Muhammad Aqil Noviandri & Hanif Hamdani, 2024. "Sustainability Development through a Nearly Zero Energy Building Implementation Case: An Office Building in South Jakarta," Sustainability, MDPI, vol. 16(16), pages 1-21, August.
  • Handle: RePEc:gam:jsusta:v:16:y:2024:i:16:p:7027-:d:1457395
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/16/7027/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/16/16/7027/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. John Graham & Campbell Harvey, 2002. "HOW DO CFOs MAKE CAPITAL BUDGETING AND CAPITAL STRUCTURE DECISIONS?," Journal of Applied Corporate Finance, Morgan Stanley, vol. 15(1), pages 8-23, March.
    2. Barone, Giovanni & Buonomano, Annamaria & Giuzio, Giovanni Francesco & Palombo, Adolfo, 2023. "Towards zero energy infrastructure buildings: optimal design of envelope and cooling system," Energy, Elsevier, vol. 279(C).
    3. Song, Zhe & Liu, Jia & Yang, Hongxing, 2021. "Air pollution and soiling implications for solar photovoltaic power generation: A comprehensive review," Applied Energy, Elsevier, vol. 298(C).
    4. Tuhibur Rahman & Ahmed Al Mansur & Molla Shahadat Hossain Lipu & Md. Siddikur Rahman & Ratil H. Ashique & Mohamad Abou Houran & Rajvikram Madurai Elavarasan & Eklas Hossain, 2023. "Investigation of Degradation of Solar Photovoltaics: A Review of Aging Factors, Impacts, and Future Directions toward Sustainable Energy Management," Energies, MDPI, vol. 16(9), pages 1-30, April.
    5. Ibanez-Lopez, A.S. & Martinez-Val, J.M. & Moratilla-Soria, B.Y., 2017. "A dynamic simulation model for assessing the overall impact of incentive policies on power system reliability, costs and environment," Energy Policy, Elsevier, vol. 102(C), pages 170-188.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Magni, Carlo Alberto, 2007. "Investment decisions, equivalent risk and bounded rationality," MPRA Paper 6073, University Library of Munich, Germany.
    2. Bolton, Patrick & Wang, Neng & Yang, Jinqiang, 2019. "Investment under uncertainty with financial constraints," Journal of Economic Theory, Elsevier, vol. 184(C).
    3. Mr. Albert Jaeger, 2003. "Corporate Balance Sheet Restructuring and Investment in the Euro Area," IMF Working Papers 2003/117, International Monetary Fund.
    4. Reiter, Michael & Zessner-Spitzenberg, Leopold, 2023. "Long-term bank lending and the transfer of aggregate risk," Journal of Economic Dynamics and Control, Elsevier, vol. 151(C).
    5. Luis M. Abadie & José M. Chamorro, 2014. "Valuation of Wind Energy Projects: A Real Options Approach," Energies, MDPI, vol. 7(5), pages 1-38, May.
    6. Yin, Rumeng & He, Jiang, 2023. "Design of a photovoltaic electric bike battery-sharing system in public transit stations," Applied Energy, Elsevier, vol. 332(C).
    7. Giroud, Xavier & Mueller, Holger M., 2021. "Firm leverage and employment dynamics," Journal of Financial Economics, Elsevier, vol. 142(3), pages 1381-1394.
    8. Constantinos Vassiliades & Christos Minterides & Olga-Eleni Astara & Giovanni Barone & Ioannis Vardopoulos, 2023. "Socio-Economic Barriers to Adopting Energy-Saving Bioclimatic Strategies in a Mediterranean Sustainable Real Estate Setting: A Quantitative Analysis of Resident Perspectives," Energies, MDPI, vol. 16(24), pages 1-18, December.
    9. Xie, Linlin & Liu, Yangbo & Jiang, Tianhao, 2024. "Executives with business education background and cost of debt financing: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 90(C), pages 283-296.
    10. Duan, Ran, 2023. "Patent trolls and capital structure decisions in high-tech firms," Journal of Banking & Finance, Elsevier, vol. 155(C).
    11. Azhagaiah Ramachandran & Veeramuthu Packkirisamy, 2010. "The Impact of Firm Size on Dividend Behaviour: A Study With Reference to Corporate Firms across Industries in India," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 8(1), pages 049-078.
    12. Jerald E. Pinto & Thomas R. Robinson & John D. Stowe, 2019. "Equity valuation: A survey of professional practice," Review of Financial Economics, John Wiley & Sons, vol. 37(2), pages 219-233, April.
    13. Ahmed Al Mansur & Md. Ruhul Amin & Molla Shahadat Hossain Lipu & Md. Imamul Islam & Ratil H. Ashique & Zubaeer Bin Shams & Mohammad Asif ul Haq & Md. Hasan Maruf & ASM Shihavuddin, 2023. "The Effects of Non-Uniformly-Aged Photovoltaic Array on Mismatch Power Loss: A Practical Investigation towards Novel Hybrid Array Configurations," Sustainability, MDPI, vol. 15(17), pages 1-17, September.
    14. Mahmoud A. Eissa & Boping Tian, 2017. "Lobatto-Milstein Numerical Method in Application of Uncertainty Investment of Solar Power Projects," Energies, MDPI, vol. 10(1), pages 1-19, January.
    15. Adam Butt & M. Scott Donald & F. Douglas Foster & Susan Thorp & Geoffrey J. Warren & Tom Smith, 2017. "Design of MySuper default funds: influences and outcomes," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 57(1), pages 47-85, March.
    16. Teglio, Andrea & Mazzocchetti, Andrea & Ponta, Linda & Raberto, Marco & Cincotti, Silvano, 2019. "Budgetary rigour with stimulus in lean times: Policy advices from an agent-based model," Journal of Economic Behavior & Organization, Elsevier, vol. 157(C), pages 59-83.
    17. George W. Blazenko & Andrey D. Pavlov, 2010. "Investment Timing for New Business Ventures," Journal of Entrepreneurial Finance, Pepperdine University, Graziadio School of Business and Management, vol. 14(3), pages 37-68, Fall.
    18. Ravi Dhar & William Goetzmann, 2005. "Bubble Investors: What Were They Thinking?," Yale School of Management Working Papers ysm446, Yale School of Management, revised 01 Aug 2006.
    19. D’Acunto, Francesco & Liu, Ryan & Pflueger, Carolin & Weber, Michael, 2018. "Flexible prices and leverage," Journal of Financial Economics, Elsevier, vol. 129(1), pages 46-68.
    20. Yılmaz Balaman, Şebnem & Scott, James & Matopoulos, Aristides & Wright, Daniel G., 2019. "Incentivising bioenergy production: Economic and environmental insights from a regional optimization methodology," Renewable Energy, Elsevier, vol. 130(C), pages 867-880.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:16:p:7027-:d:1457395. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.