Multiple benefits of renovation in buildings - PU Europe
Multiple benefits of renovation in buildings - PU Europe
Multiple benefits of renovation in buildings - PU Europe
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<strong>Multiple</strong> <strong>benefits</strong> <strong>of</strong> <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> energy<br />
efficient <strong>renovation</strong> <strong>of</strong> build<strong>in</strong>gs<br />
on for example energy prices and consumer’s discount rates, the energy sav<strong>in</strong>gs follow<strong>in</strong>g<br />
over time will be able to pay for the upfront <strong>in</strong>vestment cost. 11 As an example, the scenario<br />
assumes that the heat<strong>in</strong>g systems, and w<strong>in</strong>dows, which can be cost effectively replaced by<br />
more efficient models (not necessarily the most efficient model) will be upgraded.<br />
The high EE scenario on the other hand assumes full penetration <strong>of</strong> best available technologies.<br />
This should be seen as an upper limit for energy efficiency <strong>in</strong>vestments given the<br />
current level <strong>of</strong> technology. As an example, the scenario assumes that all w<strong>in</strong>dows will be<br />
upgraded to the most efficient models available on the market. While this implies that<br />
technologies will be deployed beyond what is cost effective from an energy sav<strong>in</strong>gs po<strong>in</strong>t<br />
<strong>of</strong> view, it will br<strong>in</strong>g additional <strong>benefits</strong> through e.g. improved health, which will improve<br />
the overall pr<strong>of</strong>itability <strong>of</strong> the <strong>in</strong>vestment. While this example specifies an upper level on<br />
the potential given current technologies, the potential for energy efficient <strong>renovation</strong> <strong>of</strong><br />
build<strong>in</strong>gs is expected to <strong>in</strong>crease go<strong>in</strong>g forward, as technologies improve and cost <strong>of</strong> technologies<br />
are reduced.<br />
1.3 Identify<strong>in</strong>g the energy sav<strong>in</strong>g potential<br />
Energy efficient <strong>renovation</strong> <strong>of</strong> build<strong>in</strong>gs <strong>in</strong> the EU holds a large potential for energy sav<strong>in</strong>gs.<br />
The potential for achiev<strong>in</strong>g energy sav<strong>in</strong>gs <strong>in</strong> 2012 is 25 Mtoe <strong>in</strong> the low EE scenario<br />
(35 Mtoe <strong>in</strong> the high EE), cf. Figure 6. 12 In 2020 this potential is accumulated to 65 Mtoe<br />
<strong>in</strong> the low EE scenario (95 Mtoe <strong>in</strong> the high EE) which corresponds to app. 5.4 per cent <strong>of</strong><br />
EU f<strong>in</strong>al energy demand (8.2 per cent <strong>in</strong> the high EE). 13 In 2030 the accumulated energy<br />
sav<strong>in</strong>gs are <strong>in</strong>creased to 127 Mtoe <strong>in</strong> the low EE scenario (190 Mtoe high EE), which corresponds<br />
to app. 10.6 per cent <strong>of</strong> EU f<strong>in</strong>al energy demand (15.8 per cent <strong>in</strong> the high EE).<br />
The largest potential for renovat<strong>in</strong>g build<strong>in</strong>gs lies <strong>in</strong> the household sector, followed by the<br />
service sector and <strong>in</strong>dustry. The energy sav<strong>in</strong>g potential is only from energy efficient <strong>renovation</strong><br />
<strong>of</strong> exist<strong>in</strong>g build<strong>in</strong>gs, such as upgrad<strong>in</strong>g heat<strong>in</strong>g systems, improv<strong>in</strong>g <strong>in</strong>sulation,<br />
replac<strong>in</strong>g w<strong>in</strong>dows, improv<strong>in</strong>g light<strong>in</strong>g systems, ventilation systems and air conditioners.<br />
Energy efficiency improvements from household appliances such a wash<strong>in</strong>g mach<strong>in</strong>es,<br />
energy efficiency ga<strong>in</strong>s from construct<strong>in</strong>g new build<strong>in</strong>gs or ga<strong>in</strong>s from more efficient <strong>in</strong>dustrial<br />
process such as improv<strong>in</strong>g the kiln for mak<strong>in</strong>g cement cl<strong>in</strong>kers from limestone<br />
are not accounted for <strong>in</strong> these calculations.<br />
11 Cost effectiveness is def<strong>in</strong>ed us<strong>in</strong>g consumer’s real discount rates rang<strong>in</strong>g from 4 – 8 per cent. 8 per cent is applied to <strong>in</strong>dustry<br />
to depict shorter pay back horizons than households. Public <strong>in</strong>vestments are given a 4 per cent real discount rate.<br />
12 This potential is identified <strong>in</strong> an extensive study for DG Energy and Transport by Fraunh<strong>of</strong>er et al (2009). The calculations<br />
take <strong>in</strong>to account the specific build<strong>in</strong>g stock <strong>in</strong> all EU Member States <strong>in</strong>clud<strong>in</strong>g its age, the different climatic zones<br />
<strong>in</strong>clud<strong>in</strong>g the amount <strong>of</strong> heat<strong>in</strong>g degree days, the energetic standard <strong>of</strong> the build<strong>in</strong>gs (U-values), and the energy demand<br />
<strong>in</strong> the different countries. This allow the authors to calculate energy consumption per square meter for different<br />
build<strong>in</strong>gs types <strong>in</strong> specific countries. Country specific <strong>in</strong>formation on material cost, labour costs, and very detailed<br />
cost structure for different types <strong>of</strong> refurbishment is also taken <strong>in</strong>to account, <strong>in</strong>clud<strong>in</strong>g learn<strong>in</strong>g curves for different<br />
technologies and the implied cost reductions over time.<br />
13 Based on DG Energy (2010)<br />
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