EU Energy Efficiency Plan Strategies: Building Sector & RES Frameworks

1. The EU policy framework for energy efficiency and RES in buildings  Brussels, COCOF meeting 23 March 2011 Michaela Holl European Commission Directorate-General for Energy

2. Broader EU policy framework for sustainable energy

3. The new European Energy Efficiency Plan • Adopted on 8 March 2011, (COM 2011 (109) final), will now be discussed by Council and EP! • Provides strategic framework for EE policy in Europe up to 2020 and beyond • To be followed up by legislative proposals e.g. recast of Energy Services Directive in June 2011 • Messages include: • Conditionality on the spending of public funds • Innovative financial instruments • Energy service companies • Increased role of energy companies

4. The new European Energy Efficiency Plan and the building sector In going beyond the requirements of the EPBD recast it underlines: • Need for more stringent EE criteria in public spending in buildings • Suggests 3 % (of floor area) annual refurbishment target for public authorities buildings = doubling of current rate in EU! • Announces new legislative initiative on energy performance contracting (including contracting in buildings sector) for 2011 • Highlights need for training of the workforce

5. The 2050 roadmap for low-carbon economy • Adopted also on 8 March 2011 (2011 (112) final) • 20 % reduction in EE = 25 % reduction in CO2 by 2020 • Additional investment: € 270 billion annually 2010-2050, or 1.5% of GDP on top of current 19% • Crucial role of building sector: Emissions here could be reduced by 90 % by 2050

6. The 2050 roadmap for low-carbon economy

7. An extensive EU legal framework Overarching • Energy end-use efficiency and energy services Directive • Effort Sharing Decision • Energy performance of buildings Directive (recast and original) 2002/91/EC and 2010/31/EU • RES Directive • Construction products regulation Buildings Products • Ecodesign Directive (recast and original) • Energy Labelling Directive (recast and original) • Regulation of Energy Star labelling for office equipment

8. The Energy Performance in Buildings Directive (EPBD)

9. EPBD makes energy efficiency visible! 

10. EPBD recast  • Published in OJ: June 2010, Transposition July 2012; Application by Jan/July 2013 • EPBD recast will also be transposed in EFTA and Energy Community countries! • Continuity with 2002 Directive: Main principles are kept, but made more effective (certificates, inspections) • Elimination of the 1000 m2 threshold for existing buildings • Obligatory use of the performance indicator given in the certificate in all advertisements for sale or rent

11. EPBD recast  • Introduces for the first time cost effectiveness into the development of building codes in the EU – as of 2013 all MS have to assess investment and life time running costs (including energy) when setting minimum requirements • → Commission will present a regulation on a framework methodology for cost optimal requirements by June 2011 • Initiates transformation of the building sector towards „nearly zero energy buildings“ (which includes RES)

12.  EPBD recast 2010/31/EU and nearly zero energy policy • All new buildings in the EU by 31 December 2020 will have to be nearly zero energy buildings (before that: cost optimal requirements) • Public authorities have to be nearly zero by 31 December 2018 • MS have to establish a national definition based on Directive “Art 2(2): “a building that has a very high energy performance (…) nearly zero or very low amount of energy required should be covered to a significant extent by RES, including onsite and nearby” • Intermediate targets to be set by 2015, MS to adopt policy plans for nearly zero energy • For existing buildings: MS shall take measures towards nearly zero energy buildings, can also include targets

13.  Buildings policy in the RES Directive • Member States shall recommend the use of renewable energy sources and district heating (Art. 13.3) • Minimum RES levels by 2014 in new buildings and major renovations • Exemplary role of public buildings by 2012 http://ec.europa.eu/energy/renewables/transparency_platform/action_plan_en.htm RENEWABLE ENERGY DIRECTIVE 13 |

14. Recast EPBD and NZEB EE first, then RES (Recital 15: “alternative supply systems should be considered for new buildings (…) first ensuring that energy needs for heating and cooling are reduced” ) At national level (example DK): building requirements at the moment include only EE options, standards for 2015 phase in solar thermal, long term objectives for 2020 add PV. Note: Might be slightly different for a southern climate! 

15. NZEB – what is needed? Danish building codes show: Current building code 45 kwh/m2/a gross energy used for heating and hot water cooling and ventilation; = 25 % reduction compared to 2008 can be fully met with only EE. No RES appliance yet needed. For the 2015 standard (30 kwh/m2/a = 50 % reduction to 2008) technologies needed are: 40 cm insulation, triple glazed windows tight building envelope and ventilation with heat recovery and some solar heating. This is expected to be cost optimal by 2015. Beyond 2015, you have reached the boundaries of the building only and have to go beyond (=RES off-site) (offshore wind etc). Buildings standard 2020 (planned)( 20 kwh/m²/a = 75 % reduction to 2008) needs PV installation and/or similar RES. Is not expected to be fully cost effective by 2020. 

16.  Current low energy buildings in EU MS AT LEB = annual heating energy consumption below 60-40 KWh/m² gross area 30 % above standard performance) Passivehaus = Feist passive house standard (15 kWh/m² heating demand, 120 kwh/m² all energy uses) BE (Fl) Low Energy Class 1 for houses: 40 % lower than standard levels, 30 % lower for office and school buildings Very low Energy class: 60 % reduction for houses, 45 % for schools and office buildings CZ Low energy class: 51 – 97 kWh/m2 p.a. Very low energy class: below 51 kWh/m² p.a., also passive house standard of 15 kWh/m2 DE LEB = kfW60 (60kWh/(m²·a) or KfW40 (40 kWh/(m²·a)) maximum energy consumption Passive House see AT Source: Thomsen/Wittchen, European national strategies to move towards very low energy buildings, SBI (Danish Building Research Institute) 2008

17.  Ct’d DK Low Energy Class 1 = performance is 50% lower than requirement for new buildings Low Energy Class 2 = performance is 25% lower than requirement for new buildings (i.e. 70 + 2200/A kWh/m² per year where A is the heated gross floor area) FI LEB: 40 % better than standard buildings FRNew dwellings: average consumption for HWCVL less than 50 kWh/m² (in primary energy). This ranges from 40 kWh/m² to 65 kWh/m² depending on climatic area and altitude. Other buildings: the average annual requirement for HWCVL 50% lower than requirements for new buildings For renovation: 80 kWh/m² as of 2009 UK New: Stepwise approach: 2010 level 3 (25% better than current regulations), 2013 level 4 (44% almost similar to PassivHaus), 2016 level 5 (zero carbon for heating and lighting), 2016 level 6 (zero carbon for all uses and appliances) Source: Thomsen/Wittchen, European national strategies to move towards very low energy buildings, SBI (Danish Building Research Institute) 2008

18.  DG ENER opinion on co-funding criteria • Now: refurbishments to at least national minimum requirements ideally beyond (EE Plan: “Each refurbishment should bring the building up to the level of the best 10% of the national building stock”). • Ideally setting of rules such: need to improve existing building stock by at least two energy label classes (e g from D to B) or similar in countries that do not use A-G labels • and as of 9 July 2013 to at least cost optimal levels ideally beyond • Public authorities shall endeavour to implement the recommendations given on the energy performance certificate – and lead by example! • For new buildings the NZEB should be the aim!

19.  DG ENER opinion on co-funding criteria ct’d • EE Plan: When public bodies rent or buy existing buildings, these should always be in the best available energy performance class. • Priority to first reduce energy demand for heating and cooling, then only RES (very often RES benefit from a support scheme anyway and EE can reduce energy bills for poor people….) • Obligation to have the national energy performance certificate (not private labels only) • In the near future: EU’s upcoming voluntary EU wide certification scheme and the future Eco-label for office buildings can be used Soon available:Commission technical guidance to help national managing authorities when using ERDF for EE in buildings, to be released Spring 2011

20.  Where is energy used in buildings? (example: residential, central European climate)

21. Before and after – Factor 10 reduction in energy consumption down to Passivhouse levels, Tevesstrasse Frankfurt, Germany 230 kwh/m²/a for heating 17,5 kwh/m² a for heating

22.  Costs of energy efficiency New built: Additional upfront investment costs of 3- 10 %, but payback time of a few years due to substantial savings Existing buildings : • On average 200-250 euros additional EE costs/m² for an extensive renovation i.e. circa 25.000 Euros per house if an average existing building is brought down to 50 kwh/m²/a overall energy use. • refurbishments can be cost effective over 10-20 years for up to circa 60 % savings in existing buildings, only beyond this the marginal costs increase steaply for the last kwh/m²/a savings. • Payback time increases significantly (ca 50 years and beyond) if the energy efficiency improvements are not coupled to an anyhow renovation! • Example from DENA (German energy agency): Basic energy efficiency refurbishment package applied to non refrubsihed 70ies building comprising cellar slab, loft insulation, insulation of waterpipes, energy monitoring appliances and regular inspection: cost 3000 Euro, energy savings per year of 710 Euros →payback period of less than five years! 230 kwh/m²/a for heating 17,5 kwh/m² a for heating

23.  Support from the EU’s Intelligent Energy Europe Programme • POWERHOUSE EUROPE – project to support social housing refurbishment through exchange of best practicehttp://www.powerhouseeurope.eu/home/english/the_project/ • Clearinghouse Facilitation - Paving Way for Better Energy Building Performance in EU Less Developed Regions (CLEARSUPPORT) Factsheet and outcomes:http://ieea.erba.hu/ieea/page/Page.jsp?op=project_detail&prid=1489 http://www.clearsupport.eu/ • Promoting the use of Structural Funds and Cohesion Funds for energy investments in New Member States and Candidate Countries (PROMOSCENE) Factsheet and outcomes:http://www.senternovem.nl/promoscene/index.asp • E4CSustainable Energy Actions for Europe's Cohesion (Energy 4 Cohesion (E4C))Factsheet and outcomes:http://ieea.erba.hu/ieea/page/Page.jsp?op=project_detail&prid=1542http://www.e4c.org/ • SF-ENERGY INVESTCollbaborative Actions for Triggering Investments in Sustainable Energy Actions using Regional and Structural Funds (SF-ENERGY INVEST) Factsheet and outcomes:http://ieea.erba.hu/ieea/page/Page.jsp?op=project_detail&prid=2417

24. Thank you for your attention!!!  http://ec.europa.eu/dgs/energy/index_en.htm

25. Support measures and networks  • Committees • Concerted • action EPBD • CEN EPBD standards EPBD implementation support • Possibilities for • State Aid • VAT reduced rates • Cohesion policy funds • ELENA • EEE-F • IEE programme • Research FP • EU CONCERTO initiative Financial & fiscal instruments • Sustainable • Energy Europe • Campaign • ManagEnergy • network Networks