EU policies for increasing the energy performance of buildings 

Bogdan ATANASIUBuildings Performance Institute EuropeBogdan.atanasiu@bpie.eu

Kiev, Ukraine, 7 Nov 2013

Buildings in the European Union

Important cultural, historic, and economic value• 501 million inhabitants living in ~ 160 million homes• Architectural protection of historic buildings• Large market for the construction sector, appliances and 

equipment• Business opportunities, especially for SMEs

Status:•28 countries in the EU •42% of the energy consumption•35% of  EU greenhouse gases emissions•9% of  EU GDP•7‐8 % of EU employment

Several studies indicate large potential for significant and cost‐effective energy savings between 22% (by 2020) and by 46% (by 2030) compared to 2005. 

Building stock 2010: old & inefficient 

0

0,5

1

1,5

2

2,5

3

3,5

4

4,5

5

DE FR UK IT ES PL NL SE CH RO BE PT HU EL AT CZ DK

NO FI BG SK IE LT SI LV CY EE LU MT

Billion

  m2

Floor Space per country

Residential Non Residential

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

CZBGPLSISKROHULVLTEE

UKDKSEFRDENLATIEFI

ITESMTGR

Cental & East

North & W

est

South

Pre 1960 1961‐1990 1991‐2010

Age profile of residential floor space

Final energy consumption in the building sector for the EU27

Source: Europe’s buildings under the microscope, BPIE 2011, available at: www.bpie.eu

EU Policy: long‐term framework 

‐ Low‐carbon Economy 2050 Roadmap:

‐ Roadmap for a Resource‐Efficient Europe 2050:

‐ buildings among the 3 key sectors (together with food and transport)

‐ High efficiency potential: influence 42% of the final energy consumption, 35% ofthe CO₂ emissions, >50% of all extracted materials and 30% of waterconsumption.

‐ Energy 2050 Roadmap: “energy efficiency potential in buildings is key”

GHG reduction vs. 1990  2005 2030 2050Power ‐7% ‐54 to ‐68% ‐93 to ‐99%Industry ‐20% ‐34 to ‐40% ‐83 to ‐87%Transport  30% +20 to ‐9% ‐54 to ‐67%Residential and services ‐12% ‐37 to ‐53% ‐88 to‐91%Agriculture ‐20% ‐36 to ‐37% ‐42 to ‐49%

Residential sectorannual change [%]

’90‐‘00

’00‐‘10

’10‐‘20

’20‐‘30

’30‐‘40

’40‐‘50

Final energy demand [ktoe] 0,8 0,7 ‐1,0 ‐1,3 ‐1,6 ‐2,1Heating and cooling 0.7 0.5 ‐1,4 ‐1,7 ‐2,2 ‐3,2

Appliances & lighting 2,0 1,6 1,4 0,4 0,8 0,7

Short‐ & medium‐ term objectives

EU Commission to report by 30 June 2014 whether the EU is on track to reach its 20% energy efficiency goal and to take appropriate measures!

~25%

~75%

Actual building stock

Renovate deeper and 

faster!

new buildings2012‐2050 

Reaching for zero!

2050 building stock

Nearly climate neutral! Nearly zero‐energy!

One aim, two big challenges by 2050!  

A complex policy framework for energy in buildings

Energy Efficiency  Directive 

2012/27/EU

20% energy savings by 

2020

MS Periodical National Energy 

Efficiency Action Plans (NEEAPs)

Eco‐design Directive

2009/125/EC

Energy‐related products

Specific delegated acts

Minimum requirements

Product regulations

Labeling Directive 

2010/30/EU) 

Energy‐related products

Specific delegated acts

Labeling

Complement eco‐design

Energy Performance of 

Buildings Directive

2010/31/EU

Buildings

Renewable Energy Directive 

2009/28/EU

20% RES share in gross final consumption 

by 2020

MS Periodical National 

Renewable Energy Action Plans (NREAPs)

Source: European Commission

Energy Efficiency Directive (EED): Targets & savings

• Clearly defines EU energy efficiency target by 1474 Mtoe primary energy (1078Mtoe final energy) in 2020

• By 30 April 2013: Indicative national targets for 2020 (primary or final, savings or consumption or energy intensity)

• By 30 April 2014: EU MSs have to elaborate long‐term renovation plans (Art 4):

– Overview of national building stock

– Identify cost‐effective approaches

– Estimates of savings

– Policies and measures

• Exemplary role of public sector (Art 5 &6): 

– Must purchase only products, services & buildings with high EE performance

– Must renovate 3%/yr of buildings owned and occupied by central government 

– By 31 December 2013: EU MSs to set up an inventory of government buildings By 1 January 2014: EU MSs to start the renovation of central government buildings (or alternative approaches)

EED: main requirements related to buildings

Available at www.bpie.eu

How to Design an Effective Renovation Strategy

Buildings data from the EU countries:www.buildingsdata.euwww.entranze.euwww.tabula.eu

Energy Performance of 

Buildings Directive (EPBD, 31/2010/EU)

‐ MSs: Minimum energy performance requirements‐ Cost‐optimal methodology (common framework)‐ Requirements for technical building systems

Energy performance &Cost optimality

Existing Buildings

‐ All the buildings undergoing major renovation should implement energy efficiency measures

‐ Minimum requirements for buildings and components

New Buildings

Nearly Zero Energy Buildings

‐ By 31 Dec. 2018 public admin. buildings‐ By 31 Dec. 2020 all buildings‐ National plans for nZEB

Energy performance certification

‐ Implement EPC schemes‐ Recommendation for cost‐optimal improvements‐ Independent control systems

HVAC inspection ‐ Regular inspections (heating > 20kW, AC>12kW) ‐ Independent control systems

Financial incentives &Market barriers

‐ MSs: to prepare lists of measures and instruments  ‐ Take into account cost‐optim. for these measures

Energy Performance Certificates (Art. 11‐13)

• All EU MS established a certification system for building energy performance 

EPCs: • issued for buildings or building units which are constructed, sold or rented out 

• Issued for public buildings with a total useful floor area over 500m2 (over 250m2 from 2015) and frequently visited by the public; to be shown on the building

• obligation to include ’recommendations for the cost‐optimal or cost‐effective improvement of the energy performance

• provide information on the actual impact of heating and cooling, on its primary energy consumption and on its CO2 emissions. 

• may provide an estimate for the range of payback periods or cost‐benefits over its economic lifecycle. 

• The MSs should establish an independent control mechanism. 

• The validity period of an EPC is no more than 10 years.

Cost‐optimal methodology (Article 5, EPBD)

‐ Delegated Regulation EU 244/2012 of 16 Jan 2012 published by the EU Commission in March 2012 on: a comparative methodology framework for calculating cost‐optimal levels of minimum energy performance requirements for buildings and building elements 

‐ Implementation guidelines published by the EU Comm in April 2012. 

‐ MSs: national calculations based on framework methodology:  by March 2013 – 20 MS reported already to the EU Commission: http://ec.europa.eu/energy/efficiency/buildings/implementation_en.htm

Aims: ‐ To set energy performance requirements, also by considering the 

economic aspects as a driver for improving technical building codes‐ To shift focus from upfront investment costs to global life cycle costs 

(including energy costs)

1. Select/define reference buildings/systems

2. Establish sets of buildings measures (energy efficiency and RES)

3. Calculate the thermal performance of elements and the energy performance of the whole building (for both new and existing)

4. Calculate the life cycle costs using net present valuation Cost optimal set of measures for optimising energy performance of a reference building in a given MS, in kWh/(m²/a)

5. Compare results with current building codesand if necessary adjust them!

• Cost optimum for micro or macro level (the latter including carbon costs)• RES options to be considered

Steps of cost‐optimality

Cost‐optimality in brief

Investment+ maintenance + running costsG

loba

l costs

Net global costs

Energy costs savings 

Cost‐effective solutions

Cost‐optimal solutions

0

Implementing the cost‐optimal methodology in EU: Results for Germany (SFH, financial perspective) 

Cost‐optimal level SFH: approx. 54 kWh/(m²a)

Current requirements of EnEV2009 do not yet achieve the cost‐optimal level

Tightening by about 25 % (SFH) possible 

54

More info at : http://www.bpie.eu

Nearly Zero‐Energy Buildings ‐ nZEB (Art. 9)

• A ‘nearly zero‐energy building’ […] has a very high energy performance. Thenearly zero or very low amount of energy required (for HVAC, DHW andlighting) should be covered to a very significant extent by energy fromrenewable sources, including on‐site or nearby RES (EPBD)

nZEB is defined at national level, hence the approaches vary largely and there is a need for sustainable approaches! 

EPBD recast nZEB:• All new buildings, by 31 December 2020

• All new buildings occupied and owned by publicauthorities, after 31 December 2018

• EU MS have to elaborate nZEB plans

RES Directive: EU MS have to introduce minimumrequirements for RES for new buildings and renovation,by 31 December 2014

BPIE studies on nZEB implementation in the EU

• BPIE nZEB studies for Poland, Romania and Bulgaria 2012

• For SFH, MFH and office buildings

• Evaluation on simulated improvement options towardsnZEB levels for new buildings

• Proposing affordable but ambitious nZEB definitions(aprox. 50‐80kWh/m2/yr, >40% RES, <3‐7 kg CO2/m2/yr)

• Proposing policy implementation roadmaps by 2020

2011

2012

• BPIE nZEB study 2011

• Analysing main implementation challenges

• Proposing principles for nZEB

• Testing principles

• Policy recommendations

Available at: www.bpie.eu

Examples of nZEB in the EU

Country                          2015/2016                                   2020

Denmark Res:   30+1000/A                         20  (kWh/m2/yr)Non‐Res:   41+1000/A                         25  (kWh/m2/yr)

C.F. El(DH):   2.5 (0.8)                             1.8 (0.6)

Belgium (Brx)                  H/C:  <15  (kWh/m2/yr)Res P.E.:  <45  (kWh/m2/yr)

Non‐Res P.E.:  < (90‐2.5*C) (kWh/m2/yr)

Legend: A=the heated gross floor area; C=Volume/area

France RT 2012: 50 (40 ‐ 65) (kWh/m2/yr)              energypositivebuilding

UK ‘Zero carbon homes’            ‘Zero carbon non‐res’                                         10 ‐ 14 (kg CO2/m2/yr)39 ‐ 46 (kWh/m2/yr)

Roads to nZEB

Source: REHVA, Fraunhofer‐IBP

Roads to nZEB‐ Germany

Cost‐optimality as a tool for evaluating nZEB

Renovation of existing buildings & buildings’ technical systems

• Art.7: For buildings undergoing major renovation (more than 25% of envelope or costs) MSs to ensure that the building or the renovated part thereof is upgraded in order to meet minimum energy performance requirements. 

• Art. 7: For buildings undergoing major renovation: consideration and taking into account of high‐efficiency alternative systems (i.e. RES, CHP, DH, heat pumps). 

• Art. 8: To set requirements for technical building systems from existing buildings in respect of the overall energy performance, the proper installation, and the appropriate dimensioning, adjustment and control.

Financial incentives and market barriers (Art 10)

Main requirements• MSs to draw up a list of existing and proposed measures and instruments 

including those of a financial nature:

• update this list every three years

• to be communicated to the EU Comm (also through NEEAPs)

• shall take account of the cost‐optimal levels of energy performance when providing incentives for the construction or major renovation of buildings 

• MS shall consider the most relevant financing and other instruments such to catalyse the energy performance of buildings and the transition to nearly zero‐energy buildings 

• MS have to undertake measures to overcome market barriers

Main challenges for effective financing of renovation

• Longer payback, high transaction costs• Impact of the economic crisis• Public authorities have limited budget • Not well tailored and not enugh ambitious programs• Split incentive issue

and• Technical challenges: quality of renovations, lack of experience 

and skills, less ambitious building codes

andSocial challenges: awareness, occupancy impact on real performance of buildings

Financing deep energy renovation

EU financing: Cohesion Funds, European Investment Bank, Carbon financing

Economic instruments in the 

EU MS

‐Grants

‐Subsidies

‐Funds Preferential loans

Tax & VAT incentives

Regulations & min. 

requirementsWhite 

certificates

TPF/ESCO

Energy and climate Levies

Energy audits

Varied economic instruments in EU MS:

BPIE 2012 study on existing financing measures in the EU available at: http://www.bpie.eu

ENTRANZE IEE project: www.entranze.eu

Example 1: Germany‐KfW programmes

Example 1: KfW impact 2012Benefits so far:• By 2010: financed renovation of aprox. 9 

million pre‐1979 housing units

• 1 Euro invested generated 4‐5 euro back to public budget (by tax income, social security contributions etc.)

• Results 2006‐2009:• 1 mn homes renovated• 400.000 low‐energy new homes• Heating costs avoided: aprox 1mn 

euro/yr• 1,2MtCO2/yr avoided (72MtCO2 on 

lifetime)

• Aprox 300.000 jobs/yr created or secured

• Energy performance 2002‐2009:• New buildings from 120 to 60 

kWh/m2/yr• Existing/renovation:  reduction to around 

80 kWh/m2/yr

Lessons learned:• Open to all investor groups• Focus on long term loans• Distributional network• Created a brand for energy efficiency• Higher energy efficiency is rewarded

Ex 2: Lithuania – JESSICA holding fund• A tool to support the implementation of Programme for the Modernisation of 

Multi‐Apartment Houses: • to modernise by 2020 at least 70 % of 24.000 multi‐apartment houses 

before 1993 saving at least 30% of the heating energy and fuel expenses as comparing to 2004 

• Budget: EUR 227 mn. (EUR 100 mn National + EUR127 mn. ERDF)• Financing scheme:

• Fixed interest rate at 3% p.a.• Maturity up to 20 years• 2 years grace period (during construction)• No collateral or guarantees required; • 15% JESSICA loan write‐off if certain energy efficiency level achieved 

(upon completion) 110‐145 kWh/m2 (Class “D”)• 100% grant for preparation of renovation documentation reimbursed 

(paid from national funds)• 100% of reimbursement of installments to low income families;• 15 % additional support  from Climate Change Special programme for 

energy efficiency measures implementation JESSICA loan write‐off  if not less than 40 % energy savings are achieved

• Results 2012: more than EUR14mn credits and EUR22,4mn planned investments, energy savings of around 50%  

Example 4: District 1, Bucharest, Romania

Signatory of Covenant of Mayors

All residential block of flats of District 1 of Bucharest will be renovated 

850 block of flats = around 45,000 apartments/families

All rehabilitated buildings <100 kWh/m2/yr

Costs: 376.2 mil Euros, co‐financed by European Investment Bank 

Time frame: 2009‐2014

BEFORE

AFTER

CO2 emissions:>35%Heating 

Consumption:>50%

Investing in buildings delivers benefits

Investments are required but benefits outweighthem (EED – €20 billion saved annually until 2020)

-60

-30

0

30

Bill

ion

Eur

o '0

8 EED costs

EED avoided costs

• increased costs for investment in energy efficiency- €24 billion annually

• reduced costs for investment in energygeneration and distribution - €6 billion annually

• reduced fuel expenditure - €38 billion annually

• increased EU GDP of € 34 billion in 2020

+

• increased net employment of 400 000 in 2020

Source: European Commission

• Frame the national/regional context: Identify the needs, opportunities, challenges 

and benefits

• Identify targets and itineraries, set milestones: 

– Define long‐term strategies and goals 

– Set short‐ and medium‐ term binding objectives

• Elaborate specific legislation based on energy performance (e.g. dynamic building 

regulations)

• Eliminate market barriers

• Train and educate workforce (compliance matters)

• Information and awareness 

• Elaborate economic/financial/fiscal support schemes for trigger the buildings 

market and including the macro‐economic benefits

• Monitor implementation and continuously adapt policies based evaluation and 

on large public consultation

Lessons learned: EU policies for buildings

Big change and challenge: Low-energy buildings are complex systems and need holistic approaches:

• Need for integrated design methods, integrated skills • Need for new marketing, e.g. selling buildings with services

Low energy buildings: Are bright, hot and cool!Having market ‘sex-appeal’!

…Low-energy buildings are not only efficient but also more comfortable, sustainable, healthier, coming with new design and life

style…an evolutionary step forward!

Final destination: Transformation of buildings market!

Knowledge

Implementation

Policy

www.bpie.eu www.buildingsdata.eu

THANK YOU!bogdan.atanasiu@bpie.eu