Energy Efficiency Upgrade of Existing Buildings in Korea

15/june/2016

KOREA ENERGY AGENCY

KOREA ENERGY AGENCY

01 About KEA

02 Energy Statistics & Circumstance in Korea

03 Energy Efficient Building Policies in Korea

04 Way Forward

KEA Overview■ History

· 1980 · 2030 · 2005 · 2015

■ Organizations 4 Headquarters, 1 Renewable Center, 12 Regional Branches (Staff : 500 persons)

■ Key Activities

Creating Energy New Biz: 3trillionKRW (2.5billionUSD)

· Implementing Sectoral EE Programs (Industry, Buildings, Transport)· Market Transformation for Energy Efficiency (Labeling and Certificates)· Financial Support Programs(ESCO, Loan), Educational and Public Campaigns

Energy Efficiencyand Saving

· Deployment and Certification of New & Renewable Energy Systems·· Financial Support Programs (Subsidy, Loan), Public Obligation, RPS, FIT, etc.

New and Renewable Energy

· GHG & Energy Target Management Scheme & Cap and trade Scheme· Certification of CDM Projects

Climate ChangeResponse

Establishment of KEMCO(Korea Energy Management Corporation) , rational energy utilization of South Korea Foundation of the New & Renewable Energy Center (affiliated)Opening of the Korea GHG Reduction Registry Office and the CDM Certification Office designated by the United NationsChange the name from KEMCO to KEA, Korea Energy Agency

NRE Deployment: 8% of total energy (27.3 MTOE)

Energy Efficiency Upgrade: 9% (22 MTOE of savings)

KEA 389

Energy Statistics in Korea

Energy Statistics in Korea01. Energy Statistics in Korea

■ Energy S&D structure (dependence on energy import is very high)

· Lack of Natural Resources (Korea imports 96% of its energy → Economic burden)

· Expected energy consumption has steadily increased (Energy consumption is 8th in the world, Oil 9th )

· In 2014, Energy import cost 173 billion USD (33.1% of total import)

Energy Import (Billion USD)

Oil importt(Million bbl)

121(28.6%)

173(32.9%)

185(35.6%) 179

(32.9%) 173(33.1%)

[rate of imported = energy/total]

872 927 947 915 927`10 `11 `12 `13 `14

151 billion USD

Total Export of Key Industries(Cars + Semiconductors + Ships)

· In 2015, energy import decreased to 102 billion USD due to fall in crude oil price – Total consumption increased by 4%

Energy Statistics in Korea01. Energy Statistics in Korea

■ Energy Consumption & CO2 Emission by Sector

· CO2 Emission 7th in the world (606 M ton, 2013)

▶ Rate of increase in CO2 is 1st in the world among OECD countries * Sources : KEY World Energy Statistics(2015)

Primary Energy & Final Energy Consumption CO2 Emission

* Sources : KEEI (2015.12) * Sources : GHE inventory center

Final E consumption by Sector ('14) CO2 Emission by Sector ('13)

LNGNuclearNRE & etc

OilCoal

EnergyIndustry ProcessAgriculture, waste

93.2

192.9282.9

498.8

653694.5

1990 2000 2014 2000 2010 2013

213.9(Mtoe)

606.2(Mtoe)

Industry63.6%

Industry63.6%

Home & Commercial16.6%

Transportation17.6%Public2.2%

Manufacture &Construction30.0%

Etc 9.3%Fugitive 0.7%Transportation

14.6%

Energy industry45.3%

Energy industry45.3% Total GHG

Emissionin

Building26.9%

Korea’s Energy Efficiency Activities

Energy Issues02. Korea’s Energy Efficiency Activities

GlobalIssue

DomesticIssue

▶ Competition for Energy hegemony

Shale gas Rev.

- UAS is No.1 oil-production country- Conflict with OPEC

▶ $ 42.6 / bbl (dubai, 2015.1)

Low oil price

- Uncertainty of oil price increases

▶ All nations (regardless of economy)are forced to participate.

New Climate change system

- Busy with reaction of each nation

▶ Introducing Cap and trade (2015.1)

Introducing Cap-and-Trade

- Expose big opinion gap between government and industry

▶ Announcing 8 new energy Bizs

New Energy Biz

▶ Upsurge of new construction of nuclear power plant

Conflict of Nuclear pp

- Including transmission and transformation of electric power facilities

Reduction of CO2 Emission02. Korea’s Energy Efficiency Activities

■ Korea’s GHG Emission Reduction Activities

· Plan for CO2 emission reduction (june 2015)

- Cut GHG emission by 37% from BAU, until 2030

400

450

500

550

600

650

700

750

800

850

900

( Mt C

O2

e )

‘30 Goals535.8 (2030)

Compared to BAU

▲ 37.0%

BAU : 850.6(2030)

400

450

500

550

600

650

700

750

800

850

900

( MtC

O2

e )

BAU : 850.6(2030)

ReductionVoluntarily

25.7%

TradingIn global market

11.3%

Industrialsector

12%Generation,

Building,Transportation sector,

etc

13.7%

‘30 Goals535.8 (2030)

Compared to BAU

▲ 37.0%

▶ foster and develop 8 new energy bizs to tackle climate change

Launching 8 New Energy Bizs02. Korea’s Energy Efficiency Activities

Electricity trading market

Accumulated & saved electricity with power saving facilities can be used to bid in the electricity market

Integrated ESS service

Establish, maintain, repair EMS with ESS

E independent island

Combine NRE & ESS to replace local generatoron a remote island

Utility Plant waste heat recovery

Utility plants’ waste heat is recovered to supply heat to neighborhood farmers and fishers

E - vehicle

Establish industry related toE-vehicle, Charging Infra, Battery lease

PV rental Service

Rent a PV system to hometo create household profit using saved electricity

Zero Energy Building

Combine the passive& active & NRE system to minimize energy

consumption in building

Eco Energy town

Combine biogas facility from livestock or PV generator with NIMBY facilities

(waste generation plants) to make profit

▶ Lead market creation of 2.5 billion USD, create 14 thousand jobs in 2017

Enhancing Building EE in Korea

Programs concerning a building03. Enhancing Building EE in Korea

■ Target Establishing the foundation to deploy and disseminate low energy & EE building in Korea

■ Existing & New Energy Code Compliance

▶ Min Standard for EE Buildings

To Restrict total amount of Energy consumption

Labeling &Cer of EE build

▶ Disseminate EE Buildings

Prepare methodologies to expand the rating to existing building

Zero Energy Building

▶ Disseminate S EE Buildings

Oblige ZEB within 2025 for all new building in koea

Green Remodeling

▶ EE for Old Buildings

· Provide subsidies· Support interests

Integrated System

▶ Info of energy use in all Buildings

Establish information system of all buildings

Target ManagementCap and Trade

▶ EE for large Buildings

Manage goal setting

BEMS

▶ Manage Building energy

· Certificate demonstration· BEMS standardization

EE of equipment

▶ Enhance EE of equipment

· Disseminate LED lighting· 3 Energy efficient programs

NRE in Building

▶ deploy NRE for Building & Home

· PV rental service· Provide subsidies

■ Existing

■ EE in equip

Highefficient

SuperHigh

efficiency

Building Energy Saving Design Code Compliance03. Enhancing Building EE in Korea

■ Building EE(Passive & Active & NRE)

■ Introducing code to restrict total energy consumption in building

ESDC (energy saving design code)- EP (Envelope, Equipment, NRE) : > 65 (Public 74)

Restrict TEC (total energy consumption)- TEC ≤ Legal Standards(kWh/m2 year)

EnergyPerformanceSimulation

■ Criteria & Schedule

Division

Size

Code

2011. 7

10,000㎡ ↑

ESDC

2013

3,000㎡ ↑

2016. 7

(Private) 3,000㎡ ↑, (Public) 500㎡ ↑

2017

ESDC + TEC

2018

TEC

Waste heat Recovery System

Super Window(Vacuum etc.)

Fuel CellSystem

window System(low-e, double

etc.)

High E insulation

(VIP, aerogel)

GeothermalSystem

100%

75%

54%

11%

0%

20%

40%

60%

80%

100%

2010 2013 2015 2017

Enhance criteria in energy saving design codes(500㎡ ↑)

25%

21%

43%

Passive levelWall : 0.15W/m2KRoof : 0.12W/m2Kfloor : 0.15W/m2Kwindow : 0.8W/m2K

2010 levelWall : 0.47W/m2K Roof : 0.29W/m2Kfloor : 0.35W/m2K window : 3.0W/m2K

Compared to 2010

▲ 89.0%

Efficiency Labeling and Certification of Buildings03. Enhancing Building EE in Korea

■ Target : New & existing buildings (3,000m2↑)

Primary energy consumption (heating, cooling, lighting, ventilation and water supply)( kWh/㎡․year)

Rating

■ Criteria for certification

Residence

Non-residence

1+++

~ 60

~ 80

1++

60~90

80~140

1+

90~120

140~200

1

120~150

200~260

2

150~190

260~320

3

190~230

320~380

4

230~270

380~450

5

270~320

450~520

6

320~370

520~610

7

370~420

610~700

Class

Residence

■ Criteria for certification

Non-residence

1 5 6 8 28 14 68 63 127 83

68

141

132

212

92

360

101

267

239

456

558

1,836

1,190

‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 Total

No regulation

0

200

400

600

800

1,000

1,200

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15

Residence

Non-residence

[ Residence ] [ Non-residence ]

2 rat.

60.6%

1 rat.

35%

3 rat.

4.3%4 rat.

0.2%

1 rat.

50.3%

1++ rat.

18.7%

1+ rat.

28.3%

2 rat.

1.7%3 rat.

0.6%

1+++ rat.

0.5%

Green Remodeling03. Enhancing Building EE in Korea

green remodeling demonstration project to improve energy performance of existing building by supporting fund

20% 20%

30%

40%

20%

30%25%

20%

0%

10%

20%

30%

40%

50%

Theater

in Go-chang

Dorm

in Chung-ju

Office

in young-ju

Gallery

in Chung-ju

Governmental

building

in gyung-gi

Customs in

Seoul

Kindergarten

in Dae-jeon

Governmental

building

in Mun-kyoung

Reduced Energy consumption

Forecast of domestic remodeling marketSolar thermal heating systemPhotovoltaic(PV) generation system

GeothermalHeat pump

Exhaust-heatRecovery ventilation system

Automatic sunblindsEnergy-saving windows Improved insulation

Insulation door

LED lights

2 2,9 4,36,2

9,1

13,3

19,4

28,4

41,5

0

10

20

30

40

50

1980 1985 1990 1995 2000 2005 2010 2015 2020

Billion USD

Youth employment training center(open 8.2016)

before after

Ave 25.5%

Low-income household : 500million USD(200 projects)public buildings : 1 million USD(11 projects)Private building : 11 million USD(support only interest) (2,700 projects)

Integrated Information Management System of Building Energy03. Enhancing Building EE in Korea

National building energy consumption

distribution map

Seoul citybuildings distribution map

National house energy consumption

distribution map

DBEstablishment

Energy information Buildingsinformation

57 million national consumers

32 billion national usage data

22 million national building register

75 national supplying institutes

6.9 million complex buildings across the country

· City gas : 33· District heating : 27· Apartments : 6

· District heating : 9

75 energy suppliers

Integrated Information Management System of Building Energy03. Enhancing Building EE in Korea

policy support by expressing an intuitive representation of building energy consumption by area

Spaceinfo

· National space info map , 72thematic map· Combined building info covering216 national city buildings layer management· Building attribute info, Location info management

Nationalspace

info map

CombinedBuilding

Info

AttirbuteInfo+ +

EnergyInfo

· Collection of national data by cooperation with 76 energy supply institutes.· Korea’s first and only combined building energy management.

Electricity GasDistrictHeating+ +

BuildingInfo

· Use of building info based on internet building administration system from Ministry of Land, Transport and Maritime Affairs.

· Monthly update based on variation of info.

Buildingregistration

Buildingapproval

Houseapproval+ +

Total consumption Monthly consumption Comparison toPrevious year

Energy Efficiency Programs03. Enhancing Building EE in Korea

▶ Mandatory labeling and MEPS (Minimum Energy Performance Standards) are applied to major energy-consuming end-uses.

To support initial market entry of energy efficient products, high efficiency certification program is operated. Standby power criteria of less than 1W are applied to most home and office appliances .

▶ Energy frontier program is to be applied for the purpose of declaring future energy efficiency standards for home appliances.

Targeted efficiency standards based on benchmarking the most efficient model in the market are set to be applied to all products within the announced target year.

▶ Voluntary since 1996

▶ 41 products including LED

High efficiency certification

▶ Mandatory since 1992

▶ 23 products including refrigerator

Energy efficiency rating and labeling

▶ Mandatory since 1999

▶ 20 products including TV

Standby electric power

Certification of high efficiency equipment (support market entry)

Energy efficiency labeling program (support market consolidation)

Minimum Energy Performance Standard (worst efficiency retired from the market)

Our role in the future

Unit price reduction, investment cost minimization etc.Market-oriented technology development

Strengthening R&D of low cost supply

Conclusion04. Our role in the future

the ability to respond & adapt quickly and flexibly is important.

01 Convergence & creation of a large market for economy of scale02

Business type fusion technology development with consideration of commercialization

Renting of the solar modules: Maintenance and management are taken care of by lenders while consumers just pay monthly fees

Alleviates initial investment cost burden for consumers

ESS

Wind force Sunlight

Complementingdevelopment

▶ Energy efficiency is one of the most important future energy sources

Planet of the Apes Avatar Iron man Spider man

What do these movies commonly imply?

The encounter between men and apes began in attempt to rebuild the hydroelectric power generatorin the movie 'Dawn of the Planet of the Apes'.The main character invades the planet Pandora to secure resources in the movie 'Avatar'.

The source of power which keeps Tony Stark alive is the Nuclear fusion energy, in the movie 'Iron Man'.The ultimate power sought by Dr Octopus in the movie 'Spider-Man 2' was also nuclear fusion energy.

The importance of Energy and Resources

Thank You

Q&A

Labeling and certification of Zero Energy Building03. Enhancing Building EE in Korea

Roadmap of Zero energy buildings to be reinforced by 2025 using insulation technology standards and promoting renewable energy supplies

Energy intensive house

70mm heat-insulation, double paned window, high efficiency boiler

· Evaluation Tool for labeling and certification scheme of energy efficient buildings were applied to ZEB evaluation in 2017.

· All public buildings are compulsory by 2020, all private buildings by2025 ( floor area and criteria are not fixed)

Water heater

Cooling

House keeping

Cook & Lighting

Heating

Zero175 kWh/㎡ 125 kWh/㎡ 70 kWh/㎡

Low energy house(reduce energy by 50%)

150mm heat-insulation, triple window, heat exchanging ventilation

Passive house(reduce energy by 90%)

250mm heat-insulation, high efficiency window, LED lighting

Zero energy house(no fossil fuel used)

250mm heat-insulation, vacuum insulation, LED, Renewable energy

2009 2012 2017 2025

Energy Statistics in Korea01. Energy Statistics in Korea

Rise in E Consumption (2000~2013)

* Energy Balance of OECD Counties (IEA, 2015)

PPP / Energy Intensity (TOE/thousand $)

* Energy Balance of OECD Counties (IEA, 2015)

Korea energy rank in the world (2013)

* Energy Statistics of OECD countries (IEA, 2015),Statistical Review of World Energy 2015 (BP)

Index World ranking Details

Primary E supply

Oil imports

Oil consumption

Electricity Consumption

CO2 emission

7th

5th

9th

9th

7th

264 Mtoe

123 Mt

108 Mt

524 TWh

572 MtCO2

▶The rate of E consumption increase goes steeply up

▶ Industrial sector consumes high level of energy : 62.3% (IEA)▶ Energy-intensive industries account for 40.5 %

(steel, oil refining, petrochemical, etc.)

Deployment of Efficient Electrical End-Uses03. Enhancing Building EE in Korea

■ Energy efficiency of major home appliances, made in Korea, ranked world top class due to stringent efficiency standards.

Annual Electricity Consumption perUnit Containing Space (kWh/ℓ)

Refrigerator

EU > Australia > Canada > US (Energy Star) > Korea

Energy Efficiency Ratio (EER)for Cooling Performance

Refrigerator

Korea > Canada > Australia > EU

* Source: IEA 4E Mapping & Benchmarking Annex (2010)

Replacing LED Lights in Public Buildings03. Enhancing Building EE in Korea

LED Lights 20/60 Deployment Programs (launched in November 2011)

▶ LED light deployment target : 60% by 2020 (Energy-saving potentials : 4 Mtoe, $1.2 billion)

▶ Public procurement for creating initial markets

More than 60% of lights turn into LED lights by 2020 in public buildingsRebates or subsidies will be provided for the lighting replacement.

FluorescentLamps

[ Installed LED lights at the National Assembly ] [ LED lights in government offices ]

LED Lamps

Building Energy & GHG Target Management Scheme03. Enhancing Building EE in Korea

‘Industrial sector’, ‘Entity sector' reduction target set (national building GHG emission reduction by 26.9%)to reach the National GHG reduction target (30% reduction compared to 2020 BAU).

- Building 26.9%, Industrial 18.2%, Generation Building 26.7%, Transportation 34.3%, Agriculture, forestry and fishery 5.2%, Waste 12.3% reduction.

Management entity designation criteria

2020Estimated amount of emission

■ Criteria for certification

Energy (TJ)

- Designation of management entity based on the annual average of GHG emission and energy consumption amount in the last three years.

Up until 2011.12.31

Entitystandard

Businessstandard

125,000 25,000

500 100

From 2012.1.1

Entitystandard

Businessstandard

87,500 20,000

300 90

From 2014.1.1

Entitystandard

Businessstandard

50,000 15,000

200 80

813 million tons of CO2 eq

2020Estimated amount of emission

569 million tons of CO2 eq

Transportation

Home / Commercial

Agriculture

Others

Industrial / Generation

Public

56% 13.2% 22%

53.4% 12.4% 23%

3.6% 2.3%

4.8% 2.5%

Reduction

30%

Reduction ratio 18.6% 4.5% 5.9% 0.8% 0.2%

0 200 400 600 800100 300 500 700 900

GHG emission (tCO2)

Cap and Trade Scheme03. Enhancing Building EE in Korea

■ Asia’s first implementation of nation-wide GHG emissions trading scheme (’15.1.12)

Latest trends

· Objections from 243 of 525 participating companies

· 45 companies filed for administrative litigation due to lack of emissions quota

· Only 4 days of trade transactions since the opening of Emissions Trading Market in January 12th 2015.

Conflict betweenIndustry VS Government(Ministry of Environment)

· Weakened price competitiveness due to increased costs

· Trade market uncertainty

· Proactive enforcement risks

Industrial Ministry

· Agreements with the international community

· Relieving shortage through Korean Credit Unit (KCU)

· Trade of 280 thousand tons up until 4/6, since the opening of the trade market

Public awareness, social consensus

Industrial support, business cooperation

Settlement ofEmissions Trading Scheme

Govt. Policy & institutional support

· Investment incentives for reducing GHG

· Support building capacity for SMEs’ readiness

Indust. Thorough preparation & implementation

· GHG reduction technology development investment

· Promotion of energy efficiency, such as BEMS & FEMS +