Energy Efficiency Drivers in Europe - Schneider Electric

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Energy Efficiency Drivers in Europe - Schneider Electric

Energy Efficiency Drivers in EuropeRegulations and other instruments open new horizons forEnergy Management in buildingsWhite paper - October 2009By Henri Obara - Standardisation ManagerHOMES programme


HOMES is a four-year research programme (2008-2012), supportedby OSEO and coordinated by Schneider Electric.It brings together 13 industrial and research partners.Together, they will build energy effi ciency solutions for:> Tertiary (offi ces, businesses, hotels, etc.) and residential sectors> New, existing and renovated buildingswww.homesprogramme.com


Table of contentsExecutive Summary 5Context 6Energy effi ciency - we must act quickly 6Key dates 6Focus on buildings 7What can be done 7Regulations 9National building codes and standards 9International trends in energy effi ciency requirements for buildings 9European Directives: a framework for building regulations 10EU Energy Performance of Buildings Directive 10Other European directives and regulations 14Energy Labels and Certifi cations 15Standard Buildings 15Low Energy Buildings 15Zero Energy Buildings 16Green Buildings 17White Certifi cates and Energy Supplier Obligations 19Incentives 20Conclusions 21Bibliography 233


Executive SummaryAs a leader in Energy Management, Schneider Electric has an importantrole to play in meeting the critical energy effi ciency challenge facing oursociety. To succeed, we must be fully aware of existing and future energyeffi ciency drivers in order to develop and market compliant solutions that willhelp achieve the goals that have been set.This White Paper provides an overview of present energy effi ciency drivers,their implications and perspectives for the future.Curbing climate change and global warmingwill be one of the major challenges of the21st Century. The very survival of oursociety could be at stake. Greenhousegases including CO 2have been identifi edas the culprits and the vast majority ofindustrialised countries have agreed to cutemissions drastically over coming decades.Buildings account for nearly 40% of theenergy used in most countries and areresponsible for a similar level of global CO 2emissions. Energy effi ciency in buildingsis therefore one of the keys to reducinggreenhouse emissions.The main driving force to achievethe ambitious goals that have beenset for the reduction of greenhousegases will come from energy efficiencyregulations, building codes, standards,labels, certifications, obligations andincentives, all of which have beenmultiplying steadily over recent decades.International institutions are rollingout energy effi ciency directives andstandards that set minimum requirementsfor buildings. They are gradually beingtaken into account in national regulationsand building codes. Today, most energyeffi ciency regulations concern buildingdesign. They hardly touch on EnergyManagement aspects that can generatemajor operational gains with relatively lowinvestments and quick payback.Beyond regulations that focus on minimumrequirements, environmental performancelabels use building rating criteria that cantake energy effi ciency much further. Theyoffer a practical way of assigning value toenergy effi ciency and in this way representpowerful market drivers. Moreover, theimportant benefi ts of Energy Managementcan be easily integrated in the rating criteriaof these far-reaching schemes.Indeed, through effective buildingmeasurement, monitoring and controlsystems, Energy Management is oneof the keys to rapidly reducing carbonemissions and achieving climate changetargets.5


ContextEnergy efficiency: we must act quickly!In the 1990s, gradual acceptance of the needto reduce greenhouse gases to avoid globalwarming and ratifi cation of the Kyoto Protocolby many countries put energy effi ciency onthe agenda for inclusion in building codes anddedicated standards - just like building safetyand occupant health.On a broader scale, the European Union beganan Emission Trading Scheme in 2005, the fi rstconcrete action taken towards achieving thegreenhouse gas emission caps for the 2008-2012 period set by the Kyoto Protocol.UN Climate Change Conference 2009COPENHAGENSEAL THE DEAL!Power Green Growth, Protect the PlanetThe 2009 Copenhagen Conference of theParties (COP15) organised by the UnitedNations represents a crucial milestonein the battle against climate change, thelast chance for governments to agree to anew climate protocol in time for approvaland ratifi cation before the Kyoto Protocolexpires in 2012. The United Nations-led“Seal the Deal” initiative aims to galvanisepolitical will and public support to reach acomprehensive global climate agreementduring the conference.It also comes at a time when theIntergovernmental Panel of ClimateChange (IPCC) has stressed the need forquick action in their last report. We will becounting on governments to react and followthrough with consistent new and toughermeasures to reduce energy consumption, inparticular in buildings.Key dates6Promotionof CogenerationKYOTOprotocol199720022004Eco-design ofEnergy-usingProductsEmissionsTradingScheme2005Energy Performanceof Buildings Directive –EPBD2006Energy End-useEfficiency2006EPBD Transpositionin Member StatesRenewableDirective2008Impact of BACS on energyperformance and energy usein buildingsEN 15232Copenhagen20092012202020 %2050Share ofRenewable EnergyGHG emissions reductions-8 %, -20 %, -70 %,


Focus on buildingsCommercial and residential buildings arewidely accepted to account for about 40%of the world’s energy consumption and asimilar level of global CO 2emissions.The Fourth Intergovernmental Panel forClimate Change Assessment Reportidentifi ed buildings as having the highestgreenhouse gas mitigation potential of alleconomic sectors reviewed.40%of energy isconsumed bybuildings.The illustration represents the cost of a 1tonne reduction in CO 2by different kinds ofmeasures. Note that solutions concerningbuildings all have a negative cost, i.e. theresulting savings over the period consideredcover the required investments.Source: McKinsey for Vattenfall, 2007Over and above the present economicuncertainties in everything from energyprices to investment opportunities, a numberof factors act as barriers to energy effi ciencyimprovements. Moreover present directivesand most regulations focus on buildingdesign aspects and omit the gains that canbe achieved throughout the operationallife of the building by improved EnergyManagement.Note that the required measurement,monitoring and control systems call forrelatively low investments and offer aquick payback.Barriers:Examples includeconfl icting interests,lack of information,lack of incentive,policy distortions andpsychological factors.What can be doneThe main drivers that lead the way to improved energy effi ciency are:● Regulations including national building codes and standards along with internationaldirectives and standards that drive and harmonise their national counterparts.● Energy labels and certifi cations for low energy and green buildings● White certifi cates and legal obligations placed on energy suppliers● Other incentives including loan support, grants or direct subsidies and fi scal measuressuch as tax reductions.We will now take a closer look at each of these drivers to assess their present status, thedegree to which they take Energy Management into account and their perspectives for thefuture.7


Driving forces:> Regulations> Energy Labels and Certification> White Certificatesand Energy Supplier Obligations> Incentives


RegulationsNational building codes and standardsIn the past, building codes and standardswere implemented at a country, regionalor local level to ensure construction safety,fi re safety and a healthy environment foroccupants. Prior to the 1973/74 oil crises,energy effi ciency regulations existedmainly in the building regulations of thenorthern countries and dealt essentiallywith insulation levels. Since then, energyeffi ciency measures have been included inthe building codes and standards of mostdeveloped nations, either to reduce energyconsumption or to reduce CO 2emissionsin response to the Kyoto Protocol or othertargets often set by international directivesor standards. Today such regulationsare being increasingly implemented indeveloping countries, in particular Indiaand China, in order to increase comfort orreduce energy consumption.Some countries favour the integration ofenergy effi ciency in general building codes,others in separate energy standards or acombination of the two. In all cases, theseregulations stimulate the developmentand marketing of new products andtechniques which are in turn used bybuilders in their projects.Policy/regulation developments regarding buildings and appliancesRegion Important developmentsEurope EU Directive on the Energy Performance of Buildings 2002:requires energy pass which will increase transparency onenergy use by tenantsSpecifi c measures announced in several European countries(France: goal to double the number of buildings renovated each year).Eco-design directives: include labelling requirements andminimum energy performance standards for appliances andother energy-using equipmentEU plans to ban the sale of ordinary incandescent light bulbs bythe end of the decade.US US 2005 Energy Policy Act: incentives e.g. credits for highefficiency air conditioners or insulation and sealing.Energy Independence and Security Act (2007): reduction of lightbulb energy use: 25-30% by 2012-2014; 70% by 2020Asia “Comprehensive Action Plan for Energy Saving and EmissionsReduction” by Chinese NDRC (June 2007): better enforcementof building codes, energy conservation level of residential andpublic buildings targeted to be close to or reach modern mediumdeveloped countries level by 2020Unfortunately, few countries have yet setup the necessary inspection means toensure that energy effi ciency regulationsare complied with. This is true for buildingdesign aspects intended to reduce energylosses, such as improved insulation,glazing, etc., and even more for EnergyManagement measures aimed atreducing energy consumption throughmeasurement, monitoring and control ofenergy usage.International trends in energy efficiencyrequirements for buildingsOver the past decade, supranational energyrequirements and standards have seen theday in all parts of the world, for instance theInternational Energy Conservation Code forresidential buildings in the US and Canadaor a number of directives of the EuropeanUnion that will be discussed below. Theserequirements and standards drive nationalbuilding codes and standards and contributeto the harmonisation of action taken.9


A good example:The 2000 version(RT2000) of theFrench RT thermalregulations thatcover wall insulation,ventilation, heating,air-conditioning,hotwater heatingand lighting refl ectedFrench standards andpractices that existedat the time. Thepresent version (RT2005) was updatedin 2005 to coverthe requirements ofEuropean directives.The next phase (RT2012), is presently inpreparation and willgo even further in thisdirection.European Directives: a framework forbuilding regulationsThe directives defi ne energy effi ciencymechanisms and principles that mustbe implemented by each Member State,providing a framework for buildingregulations. However, given the urgency ofthe necessary action against climate changeand the variety of climatic conditions,technologies, practices and legislativestructures throughout Europe, the way theyare implemented is left up to each country.That being said, many Member Statesalready use the related European standardsto some extent and all expect that it will bepossible in the future to refer their nationallegislation to the European standards.They provide a set of reference standardsthat oblige the different countries to includeenergy effi ciency in their regulationsand update them regularly based ontechnological progress while at the sametime harmonising the national regulationstowards a European system.EU Energy Performance of BuildingsDirectiveThe most important EU directive for energy efficiency in buildings is that on theEnergy Performance of Buildings (EPBD 2002/91/EC).The main objective of the EPBD is to define a holistic approach to promote costeffectiveimprovement of the overall energy performance of buildings.EPBD requirementshttp://www.buildup.eu/The present EPBD sets three types of requirements that must be implemented by EUMember States:● Minimum energy performance requirements for new buildings and for largeexisting ones that undergo major renovation with the aim of achieving improved energyperformance, thermal comfort and lower energy bills.● Energy performance certification that provides information on the energy needs of abuilding and on what can be improved. It should be presented to potential buyers/tenantsso that they have an independent assessment of the energy-use aspects of the buildings,enabling informed decisions to be taken. An energy performance certifi cate is required onlywhen buildings are newly constructed, sold or rented out and is valid for a maximum of 10years.10●Inspection of medium- and large-size heating and air-conditioning systems at regularintervals so that their energy performance can be monitored and optimised. On the basisof this inspection, which shall include an assessment of the system effi ciency and sizingcompared to the heating / cooling requirements of the building, advice to the users on thereplacement of the boilers, other modifi cations to the heating system and on alternativesolutions shall be provided.


ScopeNew buildExisting buildingsPublicBuildingsAll > 1000 m² All > 1000 m² > 1000 m²EnergyManagementHeating & airconditioningsystemsRequirement- Minimumrequirements- Certifi cate- Minimumrequirements-Considerationof alternativesystems-Certifi cate- Certifi cate(when sold orrented out)- Minimumrequirements(for majorrenovation)- Certifi cate- Displayedcertifi cate- Regularinspectiondepending on size- Advice onimprovements tousersEPBD: Holistic approach towards energy needs in buildingsEPBD toolsThe EPBD specifi es the various aspects that the method used to calculate the energyperformance of buildings must take into account. The Directive allows Member States todevelop their own national calculation methods covering the above aspects. They concernmainly the design of the building and do not take into account performance improvementsthat can be achieved during the operational life of the building through Energy Managementmeasures such as measurement, control and monitoring systems.Aspects to be taken into account in energy performance calculationsAspects to be included in energy performance calculation methods:● thermal characteristics of the building (shell and internal partitions, etc.), including airtightness● heating installation and hot water supply, including their insulation characteristics● air-conditioning installation● ventilation● built-in lighting installation (mainly the non-residential sector)● position and orientation of buildings, including outdoor climate● passive solar systems and solar protection● natural ventilation● indoor climatic conditions, including the designed indoor climateAspects for which the positive influence should also be taken into account whererelevant:● active solar systems and other heating and electricity systems based on renewableenergy sources● electricity produced by CHP● district or block heating and cooling systems● natural lighting11


To facilitate this task for the Member States, a package of more than 40 standards forcalculating the energy characteristics and performance of buildings has been prepared byCEN, acting on a mandate by the European Commission.The key standards are:● EN 15603 which defi nes a calculation methodology for energy performance● EN 15217 which defi nes minimum energy performance requirements for buildings andcertifi cates● EN 15232 which defi nes different methods of calculating the impact of buildingautomation control systems (BACS) and technical building management (TBM) on energyperformance and energy use in buildings. Although these Energy Management measuresare not yet part of national regulations, the new requirements of the upcoming recast of theEPBD should stimulate countries to apply this standard. EN 15232 is also soon to becomean ISO standard.Minimum EnergyPerformance requirementsNew Buildings EPBD Art. 4,5Major renovation EPBD Art. 4,6Energy Performance CertificateEPBD Art. 7System inspectionsEPBD Art. 8,9Ways of expressingenergy performanceEN 15217 EN 15217EN 15603Energy PerformanceEnergyCertificate format and contentEnergy certificationof buildingsOverall energy use, primary energy, CO22emissions, Total deliveredenergy , Procedures for calculated and measured energy ratingHeating systemswith boilersEN 15378Air conditioningEN 15240Ventilation systemsEN 15239System and building energy needs for heating, cooling, humidification,dehumidification, hot water, lighting and ventilation systemsEN 13790, EN 15316 series, EN 15265, EN 15193, EN 15241Automation and ControlsEN 15232Definition and terminology, external climate data, indoorconditions, overheating and solar protection, …EN ISO 7345,EN ISO 6946, EN ISO 13370, EN 15242, EN 13779, EN15193, EN 15241, …CEN standards supporting the EPBD12


EPBD time frameThe EPBD was passed by the European Parliament in 2002 and gave Member Statesuntil 2006 to transpose the Directive into national law. Since then, the EU Commissionhas decided to recast the Directive to clarify it and strengthen certain requirements, whileredefi ning minimum thresholds for the implementation of the Directive.New measures to be included are:● All new buildings to be zero energy by beginning of 2019● Member States to set percentages of existing buildings to be zero energy by 2015 and by2020● Enhanced requirements for existing buildings when undergoing major renovationincluding new minimum energy performance requirements, replacement of buildingcomponents and technical building systems such as boilers or air conditioning systems,installations of smart meters, etc.● A number of measures favouring active control systems such as automation, controland monitoring systemsThe new provisions are expected to reduce EU energy consumption by 6 to 8% by 2020and reduce CO 2emissions similarly.13


Other European directives and regulationsApart from the EPBD, there are a number ofother complementary directives dealing withenergy aspects in the buildings context orrelevant provisions on buildings.For instance, the Energy End-use Effi ciencyand Energy Services Directive (ESD) setstargets for national energy savings. As adirect result, the French government, forexample, has set up an action plan onenergy effi ciency. Note that this plan citesthe government-funded HOMES programmeas an example contributing to reachingthese energy effi ciency targets.Similarly the Eco-design of Energy-usingProducts Directives should improve theenergy performance of products, which willin turn contribute to reaching the targets setby the ESD.Although these Directives and others arenot explicitly mentioned in the EPBD, theyare an inseparable part of a mix of tools topromote sustainable construction and use ofthe EU buildings stock.Examples of European directives and regulations complementary to the EPBDDesignationEnergy End-use Effi ciencyand Energy ServicesDirective (2006/32/EC)Eco-design of Energy-usingProducts Directive (2005/32/EC)Directive on the Promotion ofCogeneration (2004/8/EC)Directive on the Promotionof the Use of Energy fromRenewable Sources (EU2008 directive proposal)Construction ProductsDirective (89/106/EEC)EU Emissions TradingDirective (2003/87/EC)EU Eco-label regulationsEnergy Effi ciency Action Plan(COM(2006)545)PurposeProvides the necessary targets, mechanisms, incentives and institutional, fi nancialand legal frameworks to remove existing market barriers and imperfections for theeffi cient end use of energy.Establishes a framework for setting Eco-design requirements, for all energy usingproducts.Presents a substantial potential for increased energy effi ciency and reducedenvironmental impacts.Lays down the principles according to which Member States need to ensure thatthe share of renewable energy in the EU fi nal energy consumption reaches atleast 20% by 2020, and establishes national overall targets for each MemberState.Intended to replace existing national standards and technical approvals with asingle set of European-wide technical specifi cations for construction products.The largest multi-country, multi-sector Greenhouse Gas Emission Trading Systemworld-wide.Awarded to products on environmental criteria set by the European Union.Outlines a framework of policies and measures which provide the means to cutenergy consumption by 20% by 2020.14


Energy Labels andCertificationsEnergy labels and certifi cations encourage the use of best practices and the developmentof energy effi ciency solutions that go beyond the minimum requirements stipulated bystandards and regulations.The various energy effi ciency labels that already exist for buildings correspond to differentlevels of energy effi ciency performance.Standard BuildingsA Standard Building is constructed to meet only minimum building energy effi ciencyrequirements.Low Energy BuildingsAlthough defi nitions or interpretations varyamong European countries, Low EnergyBuildings generally offer better energyperformance than a standard or typical newbuilding i.e. signifi cantly better than what isrequired by national building regulations.In many countries, support for thedevelopment of Low Energy Buildings isprovided by incentives such as loans withlow interest rates offered by governmentsor private investment organisations.Other possibilities include tax breaks forlow energy buildings or the introductionof CO 2taxes. Furthermore mandatorycertifi cation schemes are expected topromote very Low Energy Buildings in somecountries by introducing grades or classesrestricted to buildings with very high energyperformance.Requirements for Low Energy Buildinglabels such as the BBC-Effi nergie lowconsumption building label in Franceenhance the energy performance ofbuildings against regulations. They areoften good indicators of upcoming buildingregulations. They represent quality marksfor building companies and are used in theFrench HQE green building assessmentmethods.It remains to be seen how the benefi tsof measurement, monitoring and controlsystems can be tangibly incorporated inthese schemes, especially given that thelatter are often defi ned with respect tothe requirements of building regulationswhich for the time being do no take EnergyManagement into account to any greatextent.15


Architectural DesignEffinergie RT 2005Compactness Recommended Not consideredSouth exposure Recommended To be consideredSummer comfort Required NecessarySolar PowerEffinergie RT 2005Solar Hot Water Recommended To be consideredPV To be considered RareInsulation of opaque wallsBay windowsEffinergie RT 2005Uw (in W/m²K) 1.7 to 0.7 2 to 1.6Blinds Required NecessaryR in m 2 K/W Effinergie RT 2005R Roof 6.5 to 10 4 to 6R Wall 3.2 to 5.5 2.2 to 3.2R Floor 2.4 to 4 1.7 to 2.9R Floor (oncrawl space)3.4 to 5 2.4 to 4Heating and hot waterVentilationEffinergie RT 2005Low-consumption ventilatorsB Hygro-adjustable mechanicalventilationMechanical ventilation with anexchange output > 80%A or B Hygro-adjustablemechanical ventilationEffinergie RT 2005Electricity HP COP >=3.5 Joule effect (radiant)Gas, fuel oil Condensing boiler Low-temperature boilerWoodAuto wood burnerclass 3Zero Energy BuildingsAlthough no common term or defi nitionexists, Zero, Positive and Plus Energybuildings as well as Energy Neutral andZero Carbon buildings generally mustproduce more energy than they use in ayear. This means that each building willproduce its own energy on-site, either to useor to sell to the grid, and have maximisedenergy effi ciency.By the start of 2019, all new buildings in theEuropean will be required to be Net ZeroEnergy. A number of nations have alreadyestablished targets for such buildings.Energy management throughmeasurement, monitoring and controlsystems should play an important role inreaching these targets.Examples of countries with targets for Zero Energy buildingsCountry National target ByFrance Energy Positive Buildings 2020Germany Buildings to operate without fossil fuels 2020The Netherlands Energy-neutral buildings 2020Norway Passive house level 2017UK Zero-CO 2(heating, lighting, DHW & all appliances) 201616


Green BuildingsGreen buildings, also referred to asintelligent, sustainable or reduced ecologicalfootprint buildings, all satisfy a numberof environmental performance criteria.These of course involve increased energyeffi ciency, but also reductions in waterconsumption, use of materials and impacton health and the environment. Othercriteria such as resources, indoor air qualityand the use of local materials may beconsidered as well.The defi nition for Green buildings thereforevaries around the world but some countrieshave set up standards that are used toassess the environmental performance ofbuildings and award labels, certifi cates orratings.need for genuine regional and nationaldifferences, the SB Alliance was foundedjointly in 2008 by a number of organisationsincluding UNEP-SBCI, BRE (UK), CSTB/QUALITEL (France), CNR-ITC (Italy),VTT (Finland) and FCAV (Brazil). Theobjective is to develop a framework that willallow comparisons between the differentsystems that exist, providing the basis formutual recognition of the correspondingorganisations.The LEED standardGreen Buildingsstandards:HQE - FranceBREEAM - UKLEED - USACASBEE - JapanDGNB - GermanyThey assess buildings by consideringa wide range of environmental andsustainability criteria. One or more pointsor credits are assigned when specifi c levelsof performance are achieved and the totalscore determines the rating, ranging forexample from Pass to Outstanding forBREEAM, Certifi ed to Platinum for LEED orBasic to somewhat less exciting “Very High”for HQE.LEED rating systemsThe different rating systems are ofcourse based on different standards andregulations and have been designed totake into account the needs of differentclimates, supply chains and resource bases,depending on their country of origin.Different versions are often availablefor different types of buildings. To worktowards providing transparency betweenthese building assessment rating systemswhile at the same time recognising theLEED credits17


Because they are based on tangiblerating systems, such certifi cation schemesrepresent a practical way of assigningvalue to the environmental performanceof buildings. In this way, building energyeffi ciency may be starting to infl uencereal estate prices, an important sourceof motivation to all building stakeholdersincluding designers, builders and owners.This fi lls a gap with respect to building codeenergy effi ciency regulations that coveronly minimum requirements and are in mostcases extremely diffi cult to verify once thebuilding has been constructed.Note that such rating schemes ensure thatthe perceived “greenness” of the building isnot limited to clearly visible elements suchas solar panels, but also includes the lessvisible elements such as measurement,monitoring and control systems thatcan make just as big a contribution toenergy effi ciency and thus environmentalperformance.For instance, in some schemes, lightingcontrol systems based on availabledaylight, building occupancy, timeprogramming, etc. can earn pointstowards higher ratings, especially whenassociated with the addition of sensors.The same is true for HVAC control systems.Other schemes assign extra points for submeteringand trend-logging systems thatmake it possible to analyse energy use indifferent rooms, departments or tenants.The possibilities for taking EnergyManagement benefits into accountin these rating systems are virtuallyendless and will hopefully beincreasingly integrated in all suchschemes.18


White Certificates andEnergy Supplier ObligationsWhite certifi cates and other measures aimed at energy suppliers stimulate energy effi ciencyby obliging energy companies to improve the way their fi nal customers use the energy.This is most often done through tradable certifi cates or straight-forward obligations.Countries imposing White Certifi cates or other energy effi ciency obligations on energy suppliersCountry Obligated Company Eligible Customers Target set by AdministratorBelgium-FlandersElectricity distributorsResidential and nonenergyintensive industryand serviceFlemish GovernmentFlemish GovernmentFrance All suppliers of energy All except EU ETS Government GovernmentItalyUKElectricity & gasdistributorsElectricity & gassuppliersAll including transport Government Regulator (AEEG)Residential only Government Regulator (Ofgem)Ireland Electricity (ESB) All except transport Regulator Regulator (CER)DenmarkElectricity, gas & heatdistributorsAll except transportGovernmentDanish EnergyAuthoritySource: European Experience on White Certifi cates (ADEME-WEC, 2007).White certifi cates place a legal obligation on energy suppliers, retailers and/or distributorsto encourage investments that will produce energy savings on their customer’s premises.Example in FranceThe French White Certifi cates, referred toas CEEs (certifi cat d’économie d’énergie)were set up in July 2006 to implementthe new French energy policy law passedin July 2005. It places an obligation onsuppliers of electricity, gas, domestic fuel(except for transport), LPG, cooling andheat to produce energy savings in theirown installations or those of users in theirresidential and commercial markets.Over the period July 2006 to June 2009,there is a national target of 54 TWh life timesavings of fi nal energy. The target is sharedout between the obliged energy suppliersand can be reached either by implementingend use energy savings or by buying energysaving certifi cates from others. If the targetis not met, a penalty of 2 eurocents mustbe paid for each missing kWh of life timesavings.Note that many of the measuresconsidered to produce energy savingsinvolve heating and lighting controlsystems and hopefully other EnergyManagement measures will be added inthe future.19


IncentivesIn most countries, various incentives,generally of a fi nancial nature, existto encourage investments that reducebuilding energy consumption and CO 2emissions. They apply to energy effi ciencymeasures such as improving insulation,replacing equipment by more energyeffi cient equipment, installing renewableenergy products and installing monitoring,measurement and control systems. Thefi nancial aid can take a variety of formsincluding tax reductions, grants, soft loansor the avoidance of penalties.Depending on the country, its areas ofgreatest potential for energy savings, aswell as government funding structures,certain solutions may be given priority. Forexample, solar water heaters are one of thepriority targets in Spain. In France, startingin 2010, tax cuts will be available for thepurchase of homes that consume less than50 kWh/m²/year.Once again, it is important that suchincentives increasingly apply to EnergyManagement measures that cancontribute widely and at a relatively lowcost to higher energy efficiency andlower CO 2emissions.Existing energy effi ciency incentives in four countriesCountryFrancePreferential Loans for Domestic Energy ConservationProjectsWhite Certifi cate Trading – 2006 to 2009OSEO Innovation for SMEsFinancing for Energy Effi ciency InvestmentsGovernment Crediting and Loan Guarantee for EnergyEffi ciency and Renewable Energy Investment (FOGIME)Type of buildingsExisting residentialExisting residential and commercialCommercialCommercialCommercial and industrialGermanyKfW bank Build Ecologically ProgrammeKfW bank Housing Modernisation ProgrammeKfW CO 2Building Rehabilitation ProgrammeNew residentialExisting residentialExisting residentialSpainEnergy Saving and Effi ciency Plan 2008-11Grants for Energy Effi ciency in Buildings 2008 to 2012Building Technical Code / Solar Panel RequirementsPublic, residential and commercialExisting residential and publicExisting residential and commercialUKCommunity Energy Saving Programme – 2008 to 2011Carbon Emissions Reduction Target – 2008 to 2011Stamp Duty Relief for Zero Carbon Homes – 2007Low Carbon Buildings ProgrammeResidentialExisting residentialNew residentialResidential, commercial and public20


ConclusionsEnergy effi ciency in buildings is clearlyone of the keys to reducing greenhouseemissions, a major challenge that we mustmeet and beat to avoid the catastrophicconsequences of climate change and globalwarming. Over and above rising energycosts and growing public awareness, themain drivers that will help us achieve boldemission reduction targets are energyeffi ciency regulations, building codes,standards, labels, certifi cations, obligationsand fi nancial incentives.We have seen how international energyeffi ciency directives and standards aremultiplying and are gradually being takeninto account in national regulations andbuilding codes, not only in Europe butincreasingly around the world. We havealso seen at the wide variety of labels,certifi cations, obligations and fi nancialincentives that exist in different countries.The targeted giant leap forward inenergy efficiency in buildings willrequire concerted action on two frontscorresponding to Building Design(insulation, exposition, etc.) andoperational Energy Management throughbuilding measurement, monitoring andcontrol systems.Although many of the drivers focus onBuilding Design, relatively few touch onEnergy Management aspects that canproduce major operational gains withrelatively low investments and quickpayback.As leaders in Energy Management, we atSchneider Electric recognise the opportunityfacing us to help win the race againstglobal warming and climate change. Wefully understand the issues involved. Wehave building measurement, monitoringand control products that can signifi cantlyand quickly increase the energy effi ciencyof buildings. To ensure that this enormouspotential is put to full use, we must betotally familiar with current energy effi ciencydrivers to effectively identify existingopportunities.At the same time, we must strivecontinuously, at all levels, todemonstrate this potential and makeEnergy Management solutions anessential and inherent part of these andfuture drivers.By investing in the future of ourcompany in this way, we invest in thefuture of our planet.21


BibliographyInformation papers, reports and magazines● Zirngibl, J., 2009. Information paper on Energy performance of buildings – Overall energyuse and definition of energy ratings – Calculated energy rating.● Lautsen, J., 2008. Energy efficiency requirements in building codes, energy efficiencypolicies for new buildings. International Energy Agency Information paper.● Julien A., 2009. Assessing the assessor BREEAM VS LEED in SUSTAIN magazine v09 i06● Bosseboeuf, D., 2009. Energy efficiency policies: a world-wide panorama by the WorldEnergy Council in IOP Conf. Series: Earth and Environmental Science 6.● Lees, E., 2007. WEC-ADEME project on energy efficiency policies - European Experienceof White Certificates.● Haydock, H & Arbon, J-A., 2009. European Parliament, Policy Department - Economic andScientific Policy. Study on energy performance of buildings.● UBS Wealth Management Research. Investment Theme - Socially Responsible - InvestingEnergy Efficiency, June 2008.● Low-Consumption Building: The Achievement of a Project - Effinergie. http://www.effinergie.orgEuropa Web sites● ● European projects Web sites● Cense:


HOMES programmeOctober 2009Editor: Henri ObaraEditorial committee: Henri Obara, Harvey Harder, Véronique Boutinwww.homesprogramme.comDesign: Marie CastellaPhoto credits: Schneider Electric, SarabandCONFIDENTIAL - Internal Use Only

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