François MOISAN Leader, Policy Energy Efficiency Study...

Energy efficiency in buildings

III Biregional Forum WEC N.A. AND LAC III Foro Biregional A. del N. y ALyC del CME,

Cancun, 6– 7 diciembre/December 2012

François MOISANLeader, Policy Energy Efficiency Study Group, WEC

Executive Director, ADEME, France

Didier BOSSEBOEUF, ADEME, Bruno LAPILLONNE, Enerdata

1. Main issues in building sector2. Overview of measures in buildings3. Conclusion

3

The share of buildings in final energy consumption increases inEurope and North America but decreases slightly at world level(~33% ).Low and decreasing share in CO2 emissions

Source: Enerdata GlobalStat*Buildings: residential, services

0%

10%

20%

30%

40%

Europe NorthAmerica

LatinAmerica

World

1990 2010

Share of buildings* in final consumptionShare of buildings* in final consumption

0%

5%

10%

15%

20%

Europe NorthAmerica

LatinAmerica

World

1990 2010

Share of buildings in CO2 emissionsShare of buildings in CO2 emissions

Thermal uses of energy in buildings are decreasing in most countries but specific uses of electricity are increasing

4

Trends in energy consumption per dwelling by end use in %/year (1990-2008)Trends in energy consumption per dwelling by end use in %/year (1990-2008)

5

21 500

01,0002,0003,0004,0005,0006,0007,0008,0009,000

10,00011,000

MiddleEast

NorthAmerica

Europe World CEI Africa LatinAmerica

OtherAsia

China India

kWh/

hous

ehol

ds

2000 2010

Electricity consumption by electrified households excluding heatingElectricity consumption by electrified households excluding heating

Electricity consumption per dwelling is increasing for almost all the countries due to the penetration of new equipment (air conditioning, office equipment), more and larger equipment per households;Large discrepancies among regions: from around 11000kWh/households to less than 1000 kWh for China or India.

Household electricity consumption per electrified household and electricity price (2009)

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In general, the higher the prices, the lower the electricity consumption per dwellingHowever large range of electricity consumption per dwelling for a quite similar level ofprices

1. Main issues in building sector2. Overview of measures in

buildings2.1 overview2.2 appliances and lighting2.3 thermal uses

3. Conclusion

Many countries have set quantitative targets on energy savings orenergy efficiency improvement in buildings Various types of measures are implemented:

o Regulations, such as labelling on electrical appliances, MEPS(Minimum Energy Efficiency Standards) for new buildings andappliances, banishment of incandescent lampso Financial (i.e. subsidies or soft loans) or fiscal incentives (taxreduction) for efficient buildings or applianceso Information

Identification of measures partly based on WEC survey (80countries), which do not cover information measures (such asmedia campaigns or local information centers)

Energy Efficiency Measures on buildings

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9

All countries implement measures in residential sector (except in Africa). Measures in services are less common.

Source: WEC survey 2012

In residential measures apply to buildings (greater focus on new buildings), appliances, lighting and other equipment. In services, a clear focus on public buildings

0%

20%

40%

60%

80%

100%

Existing buildings New buildingsappliances AC/SWH/Wood stovelighting

0%

20%

40%

60%

80%

100%

public buildings commercial buildingsoffice equipment AC

Countries with measures on building Residential Sector Service sector

Countries with measures on building Residential Sector Service sector

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Regulation: dominant measures in household and services

Source: WEC survey 2012 *information measures not included

0%

20%

40%

60%

80%

100%

Europe CIS Northamerica

LatinAmerica

Asia OECD Asia other Africa MiddleEast

Total

Financial Fiscal Regulation

Measures on buildings by type*Measures on buildings by type*


buildings2.1 overview2.2 appliances and lighting2.3 thermal use

3. Conclusion

The most common measures is labelling, with anincreasing number of appliances labelled (e.g. 9 in EUcountry, > 10 in Canada, China and Brazil, 19 in USA).Labelling to be effective should be mandatory which isthe case in most countries measure usually classifiedas regulationDynamic labelling to create new efficiency class (e.g.EU with A+, A++ and A+++) to account for the fact thatmost of the sold appliances are already in the mostefficient class (top runner programme in Japan)MEPS to remove the least energy-efficient productsfrom the market usually linked to label classFinancial or fiscal incentives (i.e. subsidies or taxreduction) for efficient appliances are also quite common

Measures on electrical appliances

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Measures aiming at improving appliance efficiency

13Source: WEC survey 2012

Mandatory minimum energy efficiency requirement and mandatory energy labellingare the most important legislative measures addressing electrical appliances

0%10%20%30%40%50%60%70%80%90%

100%

Asi

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Afri

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Mid

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Eas

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Latin

Am

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CIS

Eur

ope

Asi

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EC

D

Nor

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0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Asia

oth

er

Afric

a

Mid

dle

East

Tota

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Latin

Am

eric

a

CIS

Euro

pe

Asia

OEC

D

Nor

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ica

Label MEPSNb of regulation per countryNb of regulation per countryMeasures on appliances (residential)Measures on appliances (residential)

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0%

20%

40%

60%

80%

100%

Middle East Other Asia Africa Total Asia OECD LatinAmerica

Europe NorthAmerica

Subsidies tax reduction Labels MEPS Incandescent lamps phase-out

% of surveyed countries with measures on lighting

The banishment of incandescent lamps is widely applied (in 70% of surveyed countries)More than 70% of surveyed countries implemented label.Financial and fiscal incentives are implemented in respectively one third and 8% of countries


buildings2.1 building sector2.2 appliances and lighting2.3 thermal uses

3. Conclusion

The most common measures is regulation,e.g. building codes.

Labelling of buildings is a new approach thathas been implemented recently in EUcountries and is spreading to other regions(e.g. Chile)

Financial or fiscal incentives (i.e. subsidies ortax reduction) for efficient heat/ AC equipmentand building retrofitting are less common innon OECD countries

Measures on thermal uses

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Except in North America where financial incentives are significant, regulations are dominant (building code and on average 3 labels and 3 MEPS) per country.


Measures aiming at improving building efficiency in residential

0%10%20%30%40%50%60%70%80%90%

100%

Asi

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Afri

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Latin

Am

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Mid

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0.01.02.03.04.05.06.07.08.09.0

Asia

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Afric

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Latin

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Mid

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East

Euro

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Asia

OEC

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Label MEPS

Number of regulation per countryNumber of regulation per countryMeasures on buildings by typeMeasures on buildings by type

2/3 of surveyed countries with building codes for new buildings (90% are mandatory); in addition planned

in 7 countries


Building certificates

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In EU differences among countries within the boundaries set by the Directive. Most countries have chosen to include a energy efficiency class system in their certificates. Ex of France: real estate advertisements should include energy certificate.

Planned energy efficiency label for new buildings in Chile

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• Double label: on building shell and on heating appliance

The main issue for buildings : financing existing buildings refurbishment

• Investments on buildings refurbishing have long pay back period (above 15 years for deep renovation)

• Access to financing is difficult for households and specifically for low income

• No incentive for occupant vs owner of building• Technical solutions exist but households lack

information and unique interlocutor

Need of innovative schemes…

New measures to overcome the financial issue of existing buildings refurbishment

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• ESCO is well established approach which operates throughEnergy Performance Contracting (EPC) . New developments…

• A more recent approach is to trigger investments through theinvolvement of energy companies with energy savingobligations/white certificates.

• Other innovative packages have been implemented mixing theinvolvement of various actors (public and private) to share theburden and the risk.

.

The development role of Energy Service Companies

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ESCO programmes exist in many countries to differing degrees: introduced in 60% of WEC surveyed countries, e.g. more than250 ESCOs in Germany.

- Energy Performing Contract (EPC) Plus in Germany withsubsidies to achieve large savings of 40% includingchanges in the building envelope. Payback periods exceed12 years in those cases and up to 15 years.

- New initiative : ESCO in public sector- Public InternalCOntracting (PICO) in Germany. Here, the role of the ESCOis taken by a unit of the public authority itself, e.g. thetechnical department of a municipality.

Energy savings obligation on energy utilities

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• Important tool for financing energy saving measures:implemented in several European countries like UK, Franceand Italy , as well as in Brazil .

• Energy suppliers are obliged to meet an energy savings targetat the consumer level or pay a penalty

• The design of the energy efficiency obligation systems differsheavily between the different countries.

opening new, more stable, financing sources. At the end thecost will be passed on to the consumer.

Energy saving obligation in EU have been mainly used in the building sector, and especially for households

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Mainly actions with low investment cost or taking advantages of existing financial incentives : simple insulation (about ¾ of savings with cavity wall insulation in UK), CFL (about ¾ of savings in Italy), heating appliances (efficient boilers) (about 2/3 in France and Denmark)

Residential Energy Savings by End-use

0% 20% 40% 60% 80% 100%

GB 2005-8

Dk 2008

Fra 2006-9

Ita 2005-7

Insulation Lighting Heating Appliances Other

Source: Eoin Lees

Innovative financial measures in UK

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• Residential -“Green Deal” financial mechanism eliminates for theconsumer the need to pay upfront for energy efficiency measures andinstead provides reassurances that the cost of the measures should becovered by savings on the electricity bill. The overall aim of the GreenDeal is to initiate widespread renovation of the UK's housing stock.

• Services - “ SALIX “ removes upfront capital for public sector barrierby providing interest free loans and has delivered matched investment toset up 143 Recycling Funds. As a result, a broad range of energyefficiency projects are being installed including lighting, insulation, ICTand variable speed drives. The energy savings made mean projects payfor themselves within five years.

1. Main issues in building sector2. Overview of measures in buildings3. Conclusion

Conclusion-

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• Regulations, namely labels and MEPS are widely implemented

• The biggest issue to 2020/2030 in OECD countries : new financial schemes for deep refurbishment of existing buildings

• Relatively few financial and fiscal policy measures promoting the spread of energy-efficient electrical appliances in the residential and tertiary sector

• Label and regulation on large appliances but ITC consumption growing

For more information:

All the survey results have been included in an on line data base available at http://www.wec-policies.enerdata.eu/

www.ademe.fr

François MOISAN Leader, Policy Energy Efficiency Study...

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