Module

18
Energy efficiency in
buildings

sUSTAINABLE ENERGY REGULATION AND POLICYMAKING

FOR AFRICA
 MODULE 18: ENERGY EFFICIENCY IN
BUILDINGS

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iii

CONTEN
TS
1. MODULE OBJECTIVES 18.
1
1. Module overview
2. Module aims 18.
3. Module learning 1
outcomes 18.
2
2. INTRODUCTION 18.
18.
3
1. What is energy efficiency of a building?
2
2. Why is energy efficiency in buildings 18.
important? 4
3. ENERGY EFFICIENCY IN BUILDINGS 18.
18.
METHODOLOGY 5
9
1. Typical energy flow in buildings 18.
2. Determining a building’s energy 9
performance 18.1
3. Benchmarks 1
4. Certifying energy efficiency FOR 18.1
4. ENERGY EFFICIENCY MEASURES 18.1
3
BUILDINGS 9
18.1
5. FINANCING ENERGY EFFICIENCY IN 18.3
4
BUILDINGS 3
1. Energy efficiency financing 18.3
6. mechanisms
DEVELOPING AND IMPLEMENTING 3
POLICY ON ENERGY EFFICIENCY IN 18.4
BUILDINGS 1
1. The formulation of an energy 18.4
efficiency policy 1
7. 2. Implementing
POLICY policy on energy
TOOLS TO PROMOTE BUILDING 18.4
18.4
efficiency in buildings
EFFICIENCY 2
7
1. Codes and standards 18.4
2. Incentives 7
3. Certification and labelling 18.5
0
8. 18.5
CONCLUSION 18.5
3
1
LEARNING RESOURCES 18.5
5
Key points covered
Answers to review questions 18.5
Presentation/suggested discussion 5
topics Relevant case studies 18.5
6
18.5
REFERENC 18.5
8
ES 9
18.5
8
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INTERNET 18.6
RESOURCES 1
GLOSSARY/DEFINITION OF KEY CONCEPTS 18.6
3
CASE STUDY 1. Sustainable energy authority in 18.6
Australia 7
CASE STUDY Improving energy efficiency in
2. Ekurhuleni Metropolitan Municipal
(EMM) buildings, South Africa 18.7
3
CASE STUDY Efficient lighting in the Latvian Academy of
3. Sport Education (LASE), Latvia 18.7
9
CASE STUDY Passive design in local government
4. offices of Ireland 18.8
5
PowerPoint presentation: ENERGY EFFICIENCY –
Module 18: Energy efficiency in buildings 18.9
3
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1. MODULE
OBJECTIVES
1.1. Module overview
Globally the building sector accounts for more electricity use than any
other sector, 42 per cent. No wonder considering that we spend more
than 90 per cent of our time in buildings. With increasing urbanization,
higher in developing countries, the number and size of buildings in
urban areas will increase, resulting in an increased demand for
electricity and other forms of energy commonly used in buildings.
Africa’s rate of urbanization of 3.5 per cent per year is the highest in
the world, resulting in more urban areas with bigger populations, as
well as the expansion of existing urban areas. There are currently 40
cities in Africa with populations of more than a million and it is
expected that by 2015 seventy cities will have populations of one
million or more.

In many developing countries there is normally very little margin

between exist- ing power supply and electricity demand. With increasing
electricity demand, new generation needs to be brought in. Although
renewable sources of electricity such as hydro, geothermal or wind
provide electricity at a much lower cost, their cap- ital outlay is large,
they are complex and take much longer to implement. Diesel- based
generation is usually brought in the short term to meet this demand,
which results in increased cost of electricity.

Investments in energy efficiency in a building can be compared with

the cost of capital investments necessary on the supply side of the
energy system to pro- duce a similar amount of peak capacity or
annual energy production. Usually, the capital costs of efficiency are
lower than comparable investments in increased supply and there are
no additional operating costs of efficiency compared to sub- stantial
operating costs for supply-side options. In addition, energy efficiency
investments generally have much shorter lead times than energy
supply invest- ments, a particularly important consideration in countries
where the demand for energy services is growing rapidly.

One consistent quality in the building sector is that it is subject to a

high degree of regulation. Building codes often influence material use
and appliance stan- dards that have a significant effect on energy
efficiency. Regulatory regimes, to the extent that they exist, may
therefore provide a pathway to improve efficiency for both building
construction and a variety of building appliances.

This module is designed to provide an overview of energy efficiency in

buildings; it aims to help policymakers and regulators understand the
potential benefits, the opportunities for improving the efficiency of
buildings and give them a
 SUSTAINABLE ENERGY REGULATION AND POLICYMAKING TRAINING
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background on the key issues to be addressed when developing

suitable poli- cies and a framework for implementation. In addition, it
briefly discusses the methodology used for determining the efficiency
of buildings and the mecha- nisms that can be used to finance energy
efficiency measures.

It concludes with a discussion on the process of developing and

implementing policy on energy efficiency in buildings and gives a
summary on policy tools that can be used to facilitate implementation
of energy efficiency in buildings.

2. Module aims
The aims of this module are:
• To introduce the concept and benefits of energy efficiency in
buildings.
• To give an overview of the methodology used to determine the
energy effi- ciency of buildings.
• To present the different opportunities and measures for reducing
energy use in buildings without sacrificing comfort levels.
• To describe the different mechanisms for financing energy efficiency
meas- ures in buildings.
• To give a summary of legislative and policy tools that have been
successful in promoting energy efficiency in buildings.

3. Module learning outcomes

The present module attempts to achieve the following learning
outcomes:
• To appreciate the significance and benefits of energy efficiency in
buildings.
• To have a general understanding of the methodology used to
determine the energy efficiency of buildings, the different
opportunities for improving the energy efficiency of buildings and
the potential savings.
• To have an overview of the different mechanisms for financing
energy effi- ciency measures.
• To have conceptualized an approach to setting out and implementing
policies to facilitate energy efficiency in buildings in their
country.
 MODULE 18: ENERGY EFFICIENCY IN
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2. INTRODUCTION

More than 90 per cent of our time is spent in buildings i.e. either in
the office or at home. Energy used in buildings (residential and
commercial) accounts for a significant percentage of a country’s total
energy consumption. This percent- age depends greatly on the degree
of electrification, the level of urbanization, the amount of building area
per capita, the prevailing climate, as well as national and local policies
to promote efficiency. The following are estimated figures for different
regions:
• European Union countries > 40 per cent1
• Philippines 15-20 per cent2
• Brazil 42 per cent3
• Florida/USA 47 per cent3
• California 66 per cent4

In many countries, buildings consume more energy than transport and

industry. The International Energy Agency (IEA) statistics estimate that
globally, the build- ing sector is responsible for more electricity
consumption than any other sector, 42 per cent.5

The building sector encompasses a diverse set of end use activities,

which have different energy use implications. Space heating, space
cooling and lighting, which together account for a majority of building
energy use in industrialized countries, depend not only on the energy
efficiency of temperature control and lighting systems, but also on the
efficiency of the buildings in which they oper- ate. Building designs
and materials have a significant effect on the energy con- sumed for a
select set of end uses. On the other hand, building design does not
affect the energy use of cooking or appliances, though these end
uses are nonetheless attributed to the building sector. Appliance
efficiency matters more for some end uses than for others. Water
heating and refrigeration each account for significant shares of
building energy use since they are in constant use. By contrast,
cooking and small appliances (including computers and televisions)

1
Directive 2002/91/ec of the European Parliament and of the Council on the Energy
Performance of Buildings, 2002.
2
Energy Efficiency Division of the Philippines Department of Energy (DOE), 2002,
Philippines Guidelines for Energy Conserving Design of Buildings and Utility Systems.
3
Michael Laar and Friedrich Wilhelm Grimme, 2002. Sustainable Buildings in the Tropics.
Institute of Technology in the Tropics ITT, University of Applied Sciences Cologne:
Presented at RIO 02 – World Climate & Energy Event, January 6-11, 2002.
4
California Energy Commission, 2005, Options for Energy Efficiency in Existing
Buildings.
5
IEA. 2004b. Energy Balances for OECD Countries and Energy Balances for non-OECD
Countries; Energy Statistics for OECD Countries and Energy Statistics for non-OECD
Countries (2004 editions) Paris.
 SUSTAINABLE ENERGY REGULATION AND POLICYMAKING TRAINING
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generally account for only small percentages of building energy

consumption, owing to their intermittent use.

In general, building energy consumption is higher in industrialized

countries. Thus, development has an important effect on energy
demand from the building sector, implying that building efficiency
becomes more significant as countries become more prosperous. The
importance of energy efficiency in building sector is especially
significant in developing countries, owing to rapid new construction
with opportunities to employ efficient materials and best practices.

Analysis of the building sector produces mixed conclusions, owing to

the diver- sity of influences and end uses that the sector embodies.
International trade and a small number of multinational corporations
play a significant role in the pro- duction and distribution of most
building appliances, including cooking appli- ances, lighting, heating
and cooling systems. However, the opposite is true for building
construction, which is dominated by small local firms. Many materials
essential to building efficiency, such as cement and timber, are not
heavily traded (aluminum and steel are notable exceptions), and
building practices and materi- als vary widely depending on available
resources, customs and prevailing climate.

One consistent quality in the building sector is that it is subject to a

high degree of regulation. Building codes often influence material use,
and appliance stan- dards, both mandatory and voluntary, have a
significant effect on energy effi- ciency. Regulatory regimes, to the
extent that they exist, may therefore provide a pathway to improving
efficiency for both building construction and a variety of building
appliances. Furthermore, government operations in commercial build-
ings often constitute a significant share of total building use, as
government activ- ity at all levels is building-dependent. By choosing
energy-efficient designs and materials for their own use, governments
can thus exert significant influence over the building sector as a whole.6

2.1. What is the energy effi ciency of a

building?
The energy efficiency of a building is the extent to which the energy
consump- tion per square metre of floor area of the building
measures up to established energy consumption benchmarks for that
particular type of building under defined climatic conditions.

Building energy consumption benchmarks are representative values

for common building types against which a building’s actual
performance can be compared.

Kevin A. Baumert, Timothy Herzog and Jonathan Pershing, 2005, Navigating the
6

Numbers: Greenhouse Gas Data and International Climate Policy, World Resources
 MODULE 18: ENERGY EFFICIENCY IN
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page 18.5

The benchmarks are derived by analysing data on different building

types within a given country. The typical benchmark is the median level
of performance of all the buildings in a given category and good
practice represents the top quartile performance. Comparisons with
simple benchmarks of annual energy use per square metre of floor
area or treated floor area (kWh/m2/annum) allow the standard of energy
efficiency to be assessed and priority areas for action to be identified.

Benchmarks are applied mainly to heating, cooling, air-conditioning,

ventilation, lighting, fans, pumps and controls, office or other electrical
equipment, and elec- tricity consumption for external lighting. The
benchmarks used vary with the country and type of building.

The measure of heat loss through a material, referred to as the U-

Value, is also used as a way of describing the energy performance of a
building. The U-value refers to how well an element conducts heat from
one side to the other by rating how much the heat the component
allows to pass through it. They are the stan- dard used in building
codes for specifying the minimum energy efficiency values for
windows, doors, walls and other exterior building components. U-values
also rate the energy efficiency of the combined materials in a building
component or section. A low U-value indicates good energy efficiency.
Windows, doors, walls and skylights can gain or lose heat, thereby
increasing the energy required for cooling or heating. For this
reason most building codes have set minimum standards for the
energy efficiency of these components.
2.2. Why is energy effi ciency in
buildings important?
Governments have a responsibility to ensure that there is secure supply
of energy to ensure economic growth. In many developing countries
there is normally very little margin between existing power supply and
electricity demand. With increas- ing electricity use from existing
consumers and new connections, new genera- tion needs to be
brought on line to meet increasing demand. In addition, due to
changing climate patterns and the increasing risk of drought, countries
that are highly dependent on electricity from hydro as their main source
of electricity are losing much of their generation capacity resulting in
intensive power rationing.

Although renewable sources of electricity such as hydro, geothermal or

wind pro- vide electricity at a much lower cost than electricity
generation from petroleum, their capital outlay is large, they are
complex and take much longer to imple- ment. Petroleum-based
generation is usually brought in in the short term to meet this demand,
which results in increased cost of electricity, over dependence on
petroleum and subsequently vulnerability to oil price fluctuations.
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Investments in energy efficiency in a building can be compared with

the cost of capital investments necessary on the supply side of the
energy system to pro- duce a similar amount of peak capacity or
annual energy production. Usually, the capital costs of efficiency are
lower than comparable investments in increased supply and there are
no additional operating costs of efficiency compared to sub- stantial
operating costs for supply-side options. In addition, energy efficiency
investments generally have much shorter lead times than energy
supply invest- ments, a particularly important consideration in countries
where the demand for energy services is growing rapidly. By setting
energy efficiency targets for build- ings, governments share the burden
and cost of ensuring the security of energy supply with end-users.

The need to increase generation capacity in developing countries is

unavoidable. However governments can solve peak demand
constraints by finding a balance between reducing demand and
increasing supply. To increase supply, govern- ments in developing
countries often have to allocate funds to subsidize new gen- eration
capacity or subsidize the cost of petroleum-based generation.7
Reducing demand by setting up a low interest, easy payment energy
efficiency revolving fund to incentivize consumers to implement energy
efficiency measures would be a more sustainable approach and
repayments could be based on energy savings.

The main benefit from measures to improve energy efficiency buildings

is lower energy costs but there are usually other benefits to be
considered too. Energy efficiency measures are meant to reduce the
amount of energy consumed while maintaining or improving the
quality of services provided in the building. Among the benefits likely to
arise from energy efficiency investments in buildings are:
• Reducing energy use for space heating and/or cooling and water
heating;
• Reduced electricity use for lighting, office machinery and
domestic type appliances;
• Lower maintenance requirements;
• Improved comfort;
• Enhanced property value.

In developing countries where electricity is intermittent and power

rationing is frequent, there is a large demand for diesel or renewable
energy-based
7
back-
Independent power up/stand-by
producer tariffs are apower
function generation
of the capacityfrom end-users.
charge as well as
volume of energy generated and the prevailing fuel prices. Whereas the cost of energy
Reducing power and energy requirements in buildings reduces the
generated and fuel price are transferred to the customer, the capacity charge is usually
capital outlay
borne by the required and the running costs of these stand-by
government.
systems.
 MODULE 18: ENERGY EFFICIENCY IN
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In industrialized countries, policy, incentives, climate change targets

and corpo- rate image drive more efficient approaches to energy use in
buildings. Codes and practice on energy regulations for buildings in
developed countries include obli- gations for energy audits,
requirements for building certification with ratings based on energy
efficiency, carbon reduction targets for buildings, levies on energy
consumption—charged per unit consumed to discourage high
consump- tion, incentives such as exemption from building tax for
good energy efficiency ratings, access to interest free/low-interest
loans and grants for undertaking energy efficiency measures in
buildings and, as part of their corporate social responsibility, some
companies would like to be seen as a green company that promotes
energy efficiency.

Box 1. The success of California’s energy efficiency

buildings policy
Reducing energy consumption and peak demand through greater
energy efficiency is the cornerstone of the State of California’s energy
policy. Homes and commer- cial buildings consume 66 per cent of the
State’s electricity.

California’s homes and buildings are relatively energy-efficient today,

compared to those in other states and many countries of the world.
Since the passage of the Warren-Alquist Act in 1975, homes and
buildings in California have been made increasingly efficient, due to
periodically updated efficiency requirements in Building and
Appliance Standards. In this same 30-year period, the California
Public Utility Commission has directed the investor-owned utilities to
commit over
$US 5 billion to energy efficiency information, technical assistance and
incentive programmes, an estimated 85 per cent of which has been
targeted at retrofit energy efficiency investments in existing buildings.

There are over 13 million existing buildings in California, compared to

the approx- imately 200,000 constructed each year. More than half of
the existing buildings were built before the first Energy Efficiency
Standards were established in 1978. While many have been upgraded
over time, these older buildings represent a large reserve of potential
energy and peak demand savings.

Over half of the energy savings attributed to the Appliance Standards

are from the installation of new appliances in existing buildings. Over
time, as existing homes and buildings replace their energy-using
equipment, the Appliance Standards increase the efficiency of energy
use in those homes and buildings.

While the Building Standards are usually seen as improving energy

efficiency in newly constructed buildings, they also apply to all additions
and many alterations made to existing buildings and have affected many
vintages of existing buildings constructed since they were first enacted
in the late 1970s. Figure I shows the energy savings achieved by the
California Building Standards within the existing building stock.

California has held electricity consumption per capita steady for the past
30 years, while the rest of the United States experienced a 50 per cent
growth in electricity consumption (and slower economic growth than in
California). Figure II shows that
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while average per capita electricity sales have continued to increase

significantly for the nation as a whole, the per capita figure for California
began leveling off in the mid to late-1970s and has remained basically
constant since.

Figure Savings achieved within California’s existing building

I. stock
4500
0 15% of annual electricity use in
California in 2003
4000
0

3500
0

3000
0
GW
h

2500
0

2000
0

1500
0

1000
9 97

7 99
7 98
3 98

9 99
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1
1

1
1
1
1

1
1

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0
Appliance Building Efficiency
5000 standards standards programmes

Figure Total electricity sales, per capita, in the United States and
II. California between 1960 and 2001

14,00
0

12,00
0

10,00
0
KW
h

8,000

6,000

4,000

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3. ENERGY EFFICIENCY IN
BUILDINGS METHODOLOGY

3.1. Typical energy flow in

buildings

Figure III. How energy flows are linked in

buildingsa Natural energy gains
Renewable
energy

Buildin
Building
g gross
net energy
energy Delivere
use
needs d
energy

Internal heat
gains Exported energy
System losses

EU Energy Performance in Buildings – Directive Implementation Advisory Group,

a

Explanation of the General Relationship between various standards from the

European Committee for Standardization and the Energy Performance of Buildings
Directive (EPBD).

Figure III above illustrates the typical energy flows in a building. The
building gross energy needs represent the anticipated buildings
requirements for heat- ing, lighting, cooling, ventilation, air conditioning
and humidification. The indoor climate requirements,8 outdoor climatic
conditions and the building properties (sur- face/transmission heat
transfer and heat transfer due to air leakage) are the param- eters used
for determining what the gross energy needs of the building will be.

As illustrated in the diagram above, delivered energy, natural energy

gains and internal heat gains all contribute to providing the energy
needs of a building.

Natural energy gains

These include passive solar heating, passive cooling, natural ventilation

flow, and daylight. Intelligent maximization of natural energy gains can
result in significant

8
The indoor climate is a term that summarizes the thermal environment, the air
quality and the acoustic and light environment of a building. Indoor climate regulations
and guidelines are usually part of the building code.
 SUSTAINABLE ENERGY REGULATION AND POLICYMAKING TRAINING
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reduction of delivered energy required to meet a building’s energy

needs. Environmentally smart buildings make intelligent use of energy
resources, while minimizing waste.

Natural energy gains can be maximized by exploiting the potential

contribution to a building’s performance offered by the site and its
surroundings through:
• A building plan which places functions in locations that minimize
the need for applied energy;
• A shape which encourages the use of daylight and natural
ventilation, and reduces heat losses;
• An orientation that takes account of the potential benefits from
solar gains while reducing the risk of glare and overheating;
• Effective use of natural daylight combined with the avoidance of
glare and unwanted solar gains;
• Natural ventilation wherever practical and appropriate, with
mechanical ven- tilation and/or air conditioning used only to the
extent they are actually required;
• Good levels of thermal insulation and prevention of unwanted air
infiltration through the building envelope;
• Intrinsically efficient and well-controlled building services, well-
matched to the building fabric and to the expected use.

This is best achieved at the building’s design stage but can also be
done during refurbishment.

Internal heat gain

Internal heat is the thermal energy from people, lighting and appliances
that give off heat to the indoor environment. Whereas this is desirable in
cold weather as it reduces the energy requirements for heating, in hot
weather it increases the energy required for cooling. In office buildings,
commercial stores, shopping centres, enter- tainment halls etc., much of
the overheating problem during the summer can be caused by heat
produced by equipment or by a high level of artificial lighting. When
there are a large number of occupants or clients their metabolic heat
can also add to the problem.

Delivered energy

This is the amount of energy supplied to meet a building’s net energy

demand
i.e. to provide energy for heating, cooling, ventilation, hot water and
lighting. It
 MODULE 18: ENERGY EFFICIENCY IN
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is usually expressed in kilowatt hours (kWh) and the main energy

carriers are electricity and fuel, i.e. gas, oil or biomass for boilers. As
seen from figure III, the delivered energy could be supplemented by
on-site renewable energy, this could be in the form of solar PV, solar
water heaters or wind.

Exported energy

This is the fraction of delivered energy that, where applicable, is sold

to exter- nal users.

System losses

System losses result from the inefficiencies in transporting and

converting the delivered energy, i.e. of the 100 per cent delivered
energy, only 90 per cent may be used to provide the actual services,
e.g. lighting, cooling or ventilation, due to the inefficiency of the
equipment used.

When addressing the energy efficiency issue in buildings the main

focus is on the energy used to attain the required indoor climate
standards. The amount of energy a building will be required to
purchase to attain this is dependant on:
• The properties of the building:
- The level of heat transfer: the lower the heat transfer the lower
the heat loss during cold weather and heat gain during
warm weather. This will reduce the energy requirements for
heating or cooling;
- Whether the building is designed to minimize the need for
applied energy depending on the outdoor climatic
conditions.
• How efficiently the delivered energy is used to meet the building’s
net energy demand i.e. the efficiency of the equipment and
appliances used;
• How efficiently energy is used by people in the building;
• The percentage of the building’s energy requirement that is supplied
by renew- able energy.

3.2. Determining a building’s energy

performance

Energy use indicators

The calculation of energy use in buildings is based on the
characteristics of the building and its installed equipment. It is
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Figure Overview of the calculation process of energy use

IV. indicators for buildingsa

ENERGY USE/CO2 EMISSIONS

INDICATORS
Step 3:
Energy use indicators =
conversion of energy for
different uses from Conversion factors
Step 2:
different fuels to a Building’s delivered
similar energy unit energy = energy used for
ventilation, cooling,
heating, lighting and
hot
water

Hot water Lighting Heatin Coolin Ventilatio

g g n
syste syste system
m m

Automatio
n and
controls Step 1:
Building’s net energy =
building’s gross energy
BUILDING
needs less (natural energy
Natura gains and internal heat
l gains)
dayligh
t

Interna Heat Air Indoor and

Solar gains
l transmissio flow outdoor
gains n s climate

a
EU Energy Performance in Buildings – Directive Implementation Advisory Group,
explanation of the general relationship between various standards from the
European Committee for Standardization and the Energy Performance of Buildings
Directive (EPBD).

1. Step One is the calculation of the building’s net energy

requirements, i.e. the amount of energy required to provide
the indoor climate requirements9 as specified by the
building code. The calculation is used to determine the net
energy required based on the outdoor climate and indoor
climate require- ments while considering the
contributions from internal gains, solar gains and natural
lighting and losses due to building properties, i.e. heat transmission
and airflows (air infiltration and exfiltration). This calculation is
used to deter- mine the intrinsic energy performance of the
building.
2. Step Two is the determination of the building’s delivered energy,
i.e. the energy performance of the building in actual use. This is the
amount of energy used for heating, cooling, hot water, lighting,
ventilation systems, inclusive of controls and building automation,
and includes the auxiliary energy needed for fans, pumps, etc.
Energy used for different purposes and by different fuels is recorded.
 MODULE 18: ENERGY EFFICIENCY IN
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3. Step Three is the determination of the overall energy performance

indicators: It combines the results from Step 2 above for different
purposes and from dif- ferent fuels to obtain the overall energy
use and associated performance indi- cators. Since a building
can use more than one fuel (e.g. gas and electricity), the
different energy sources have to be converted and combined in
terms of primary energy to provide the optional end result of
the calculation of energy performance. Commonly used energy
indicators for buildings are kWh/m2 (energy consumption in
kilowatt hours per metre square of floor area) or CO2
emissions

For purposes of this calculation, buildings are classified into categories

depend- ing on whether they are residential or non-residential, the type
of building design and the building size and use. In addition to
calculating the performance of existing buildings, energy
performance calculations are also undertaken at the design stage for
new buildings and refurbished buildings to simulate their energy
performance.

It is the government’s responsibility to provide, at national or local

level, calcu- lation guidelines and methodologies for determining energy
performance. In most instances, software is developed for these
calculations.

3. Benchmarks
Building energy consumption benchmarks are representative values
for common building types against which a building’s actual
performance can be compared. The two main purposes of benchmarks
are:
• To identify if a building’s energy performance is good, average or
poor with respect to other buildings of its type;
• To identify potential savings, shown by the variance between the
actual data and the benchmarks: the worse the performance
against a benchmark, the greater the opportunity for improving
performance, and making cost savings.

Benchmarks can be categorized into two types—modeled benchmarks

and empir- ical benchmarks.9

Modeled benchmarks are obtained by using a simulation model to

determine the performance of a building, usually at the design or
refurbishment stage. The model calculates the delivered energy
needed based on the use of the building, the indoor environment, the
external climate and the properties of the building.

EU Energy Performance in Buildings – Directive Implementation Advisory Group:

9

Methodologies in support of the Energy Performance of Buildings Directive: The UK

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Empirical benchmarks are obtained from statistical data from detailed

studies of 20-100 buildings per sector. The minimum information
required for benchmark- ing is how much energy has been used over
the last year, which is best obtained from meter readings and energy
bills and the floor area. Ideally the studies involve energy audits and
in some cases sub-metering (metering the different energy end uses
individually), but in most cases only bulk data on the building’s energy
use is collected. This data sets the good practice and typical standards
for each energy use in the building.

4. Certifying energy effi ciency

An energy efficiency certificate is a summary of the building energy
audit. It is meant to give information on the building’s energy
consumption and its energy efficiency rating.

The purpose of energy efficiency certificates is to:

• Inform tenants and prospective buyers of the expected running
costs;
• Create public awareness;
• Act as a prerequisite of measures to improve its energy efficiency;
• To effect incentives, penalties or legal proceedings.

Inform tenants and prospective buyers of the expected running

costs – With buy- ers and prospective tenants better informed,
builders and landlords will have greater incentive to incorporate
energy-efficient technologies and designs into their buildings, in return
for lower running costs.

Create public awareness – In large buildings, regularly visited by the

public, dis- play of energy performance certificates will raise
awareness among citizens of the issue of energy efficiency in their
local community.

Act as a prerequisite of measures to improve its energy efficiency

– In the final analysis, knowledge of a building’s energy efficiency is
also the prerequisite of measures to improve its energy efficiency. The
energy efficiency certificate is therefore essentially accompanied by
modernization recommendations for low- cost improvement of the
building’s energy efficiency.

To affect incentives, penalties or legal proceedings – Any effects

of these cer- tificates in terms of incentives, penalties or any form of
legal proceedings are subject to national legislation. Some countries,
e.g. Bulgaria, offer 5-10 year exemptions on building tax to buildings
that have high-energy efficiency ratings.
 MODULE 18: ENERGY EFFICIENCY IN
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In addition to information on the building’s energy performance, a

range of rec- ommended and current indoor temperatures and, when
appropriate, other rele- vant climatic factors may also be displayed on
the certificates.

What information should be displayed on energy performance

certificates, and how that information should be interpreted is a key
issue. In order to facilitate comparisons between buildings, the
energy performance certificate should include reference values such
as current legal standards and benchmarks and recommendations for
cost effective investments which can be undertaken in the building to
improve its energy performance.

The empirical and modeled benchmarks mentioned above are used to

indicate how a particular building compares to the rest of the stock.
These benchmarks are used for two ratings normally displayed on the
energy performance certifi- cates—the asset rating and the operational
rating.

Modeled benchmarks are typically used to rate the intrinsic

performance poten- tial of the building and contribute to the building’s
asset rating. This is a rating of the standard of the building fabric
and building services equipment and is based on theoretical values.

Empirical benchmarks are typically used to rate the in-use

performance of the building—the operational rating. This will be
influenced by the quality of the building (as measured by the asset
rating), but also by the way the building is maintained and operated.
The operational rating is based on actual metered energy
consumption, normalized in some way to account for the effects of
build- ing size, pattern of use, weather, etc.

To supplement certification, in some European countries regular

inspection of heating and air-conditioning systems to assess their
efficiency and sizing com- pared to the heating and cooling
requirements is carried out.
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Figure Illustration of a possible format for a non-domestic building

V. energy certificate, proposed by the Europrosper projecta

European Programme for Occupant Satisfaction, Productivity and Environmental

a

Rating of Buildings 2004: Certification of Existing Building Energy Performance—The

Energy Performance Label.
 MODULE 18: ENERGY EFFICIENCY IN
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Box 2. Building energy performance certification and

labelling
The Europrosper project produced a proof-of-concept methodology for
determining an “operational rating” for office buildings, and was
successfully tested by 79 users across 13 of the EU-15 countries (pre
EU-expansion). The method has the follow- ing main steps:

• Calculate the building's energy intensity;

• Calculate energy benchmarks appropriate to the specific building
and its use;
• Compare energy intensity with benchmarks to determine energy
efficiency grade;
• Determine how the energy supplied is broken down by end use;
• Analyse and prioritize potential energy efficiency measures for their
cost effec- tiveness and calculate the potential improvement in
the energy efficiency grade;
• Produce an energy certificate that reports all of the above.

Review question

What are energy efficiency benchmarks and what is their role when
determining the energy efficiency of a building?
 MODULE 18: ENERGY EFFICIENCY IN
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4. ENERGY EFFICIENCY
MEASURES FOR BUILDINGS

Energy efficiency measures for buildings are approaches through

which the energy consumption of a building can be reduced while
maintaining or improv- ing the level of comfort in the building. They
can typically be categorized into:
• Reducing heating demand;
• Reducing cooling demand;
• Reducing the energy requirements for ventilation;
• Reducing energy use for lighting;
• Reducing energy used for heating water;
• Reducing electricity consumption of office equipment and
appliances;
• Good housekeeping and people solutions.

Reducing heating demand

Heating demand can be reduced by:

• Limiting the exposed surface area of the building;
• Improving the insulation of the building’s fabric;
• Reducing ventilation losses;
• By selecting efficient heating systems with effective controls.

Limiting the exposed surface area of the building

The shape of a building determines how much area is exposed to the

outdoors through exterior walls and ceilings. To save energy, try to keep
this exposed area to a minimum. The most economical house to build
and heat is one with a sim- ple square or rectangular floor plan.
Complex shapes increase the exposed sur- face area as well as the
construction and energy costs when a house has a complex shape.

Improving air tightness

Air leaks reduce a building’s energy efficiency. Air can leak through
cracks or holes in walls, ceilings, floors and around doors and
windows. A typical building can lose about one-third of its heat
through this infiltration (outside air coming in)
 SUSTAINABLE ENERGY REGULATION AND POLICYMAKING TRAINING
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and exfiltration (inside air escaping). An airtight house will reduce heat
and air movement and be quieter and cleaner. Infiltration and
exfiltration losses can be reduced by:
• Installing continuous vapor retarders on walls and ceilings;
• Caulking any holes or cracks on the inside surfaces of walls and
ceilings;
• Caulking around windows and door trim on the outside;
• Sealing around window and door trim, and electrical outlets on the
inside;
• Sealing around any pipes or ducts that penetrate the exterior walls;
• Weather-stripping windows and doors.

Improving the insulation of the building’s fabric

The other two-thirds of heat loss occurs by conduction through

foundations, floors, walls, ceilings, roofs, windows and doors. Heat
flow in and out of the building from conduction can be reduced with
high levels of insulation in the attic, sidewalls, basement walls and
doors. Windows should have a low U-value.

Effectively using controls

The main controls used in a heating system are time, temperature and
boiler con- trols and ensuring these are set correctly is the best place
to start when looking for savings in a heating system. Time controls
turn the heating on and off at pre- determined times; advanced time
controls monitor internal and/or external tem- peratures and switch the
heating on at the right time to ensure the building reaches the
correct temperature by the time it is occupied.

Temperature controls are essential to avoid space overheating and

should be used to ensure minimum comfort conditions for employees.
The more active the employees, the lower the temperature can be to
provide comfort. Temperature controls can be used to pre-cool small
office buildings so that they take less power to cool during peak
demand and to reduce heat and cooling temperature during
unoccupied periods in offices or when occupants are sleeping (in the
case of homes or hotels).

By turning the thermostat back 10° to 15° for eight hours, savings
of about 5 per cent to 15 per cent a year on heating bills are
achievable—a saving of as much as 1 per cent for each degree if the
setback period is eight hours long. The percentage of savings from
setback is greater for buildings in milder climates than for those in
more severe climates. In the summer, similar savings can
 MODULE 18: ENERGY EFFICIENCY IN
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be achieved by keeping the indoor temperature higher when there

are no occupants.10

Studies have also shown that significant cooling energy use

savings can be achieved if ceiling fans are used in conjunction with
higher thermostat set points.11

Identifying a suitable heating system

The most appropriate and efficient form of heating for a building will
vary depend- ing on the use to which the building is to be put. For
buildings which are used intermittently (such as churches) or which
have large air volumes (such as indus- trial units) radiant heating may
be an effective form of heating. For buildings which are used more
regularly and with smaller air volumes, conventional cen- tral hot water
systems will be more effective. For non-domestic buildings with
varying loads, modular boilers should be used to prevent boilers
operating at part load. Condensing boilers should be used in place of
conventional boiler plant due to their higher seasonal efficiency; they
can be up to 30 per cent more effi- cient than standard boilers if
operating correctly. Where condensing boilers are installed, the use of
weather compensation controllers and under-floor heating systems, will
improve their efficiency by reducing water flow temperatures.

Reducing cooling demand

Energy use in typical air-conditioned office buildings is approximately

double that of naturally ventilated office buildings. The need for air-
conditioning or the size of the systems installed can be reduced by:
• Controlling solar gains through glazing;
• Reducing internal heat gains;
• Making use of thermal mass and night ventilation to reduce peak
temperatures;
• Providing effective natural ventilation;
• Reducing lighting loads and installing effective lighting controls.

Avoiding excessive glazing

Windows should be sized to provide effective day light while avoiding

excessive solar gains. Large areas of glazing will increase solar heat
gains in summer and
10
Programmable Thermostats – U.S. DOE, Energy Efficiency and Renewable Energy
Network, Consumer Energy Information,
[Link]/library/[Link]?bid=austin&prd=10.
11
P. W. James, et al., “Are Energy Savings Due to Ceiling Fans Just Hot Air?” Florida Solar
Energy Center (FSEC), [Link]/en/publications/html/FSEC-PF-306-96/[Link].
 SUSTAINABLE ENERGY REGULATION AND POLICYMAKING TRAINING
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heat losses in winter making it more difficult to provide a comfortable

internal environment.

Use of shading

Solar gains can be reduced by the use of external shading, mid

pane blinds (where blinds are integrated between the panes of the
double or triple glazing unit) or by internal blinds. Internal blinds are
the least effective method of con- trolling solar gains as the heat will
already have entered the space. External blinds are the most effective
but may be difficult to maintain and are less easily adjusted for
controlling glare. Mid pane blinds often provide an effective com-
promise. They can be raised when solar gains and glare is not an
issue or low- ered when required. High angle summer sun can be
controlled on south facing elevations by the use of overhangs and fixed
shading devices. Solar gains to east and west glazing are more
difficult to control and will require adjustable shading devices.

Solar control glass

Glazing is available with a range of selective coatings that alter the

properties of the glass; ideally glazing should be selected with the
highest light transmittance and the lowest solar heat gain factor. This
will help provide daylight while reduc- ing solar gains. All major glass
manufacturers provide data on the properties of their products,
including those with coatings as described here.

Selecting equipment with reduced heat output

Selecting office equipment with a reduced heat output can reduce

cooling demands and by ensuring equipment has effective controls
that automatically switch it off when not in use. The use of flat screen
monitors can significantly reduce heat gains, while at the same time
reducing energy use for the equipment and using office space more
effectively. These benefits usually compensate for the higher cost of
flat screen monitors.

Separating high heat load processes from general

accommodation

Where a building includes energy intensive equipment such as

mainframe com- puters, these are best located in a separate air-
conditioned space, avoiding the need to provide cooling to the whole
building.
 MODULE 18: ENERGY EFFICIENCY IN
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Making use of thermal mass and night ventilation to reduce

peak temperatures

Thermal mass is the ability of a material to absorb heat energy. A lot

of heat energy is required to change the temperature of high-density
materials such as concrete, bricks and tiles. They are therefore said to
have high thermal mass. Lightweight materials such as timber have
low thermal mass.

Thermal mass is particularly beneficial where there is a big difference

between day and night outdoor temperature. Correct use of thermal
mass can delay heat flow through the building envelope by as much
as 10 to 12 hours, producing a warmer house at night in winter and a
cooler house during the day in summer. A high mass building needs
to gain or lose a large amount of energy to change its internal
temperature, whereas a lightweight building requires only a small
energy gain or loss. Allowing cool night breezes and/or convection
currents to pass over the thermal mass, draws out all the stored
Reducing heat gains from lighting
energy.

Heat gains from lighting can be reduced by making best use of day
lighting and by providing energy-efficient lighting installations with
good controls.

Predicting the impact of passive cooling strategies

Computer simulation tools can be used to predict the likely comfort

conditions in buildings and optimize glazing and shading
arrangements.

Reducing the energy requirements for ventilation

When the cooling demand is sufficiently reduced by implementing

the above measures, it may be possible to reduce heat gains so that
air-conditioning is unnecessary and comfort conditions can be
maintained through the use of nat- ural ventilation. The energy
required for ventilation can be minimized by:

• A building design that maximizes natural ventilation;

• Effective window design;

• Use of mixed mode ventilation;

• Using efficient mechanical ventilation systems.

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Building design

The most effective form of natural ventilation is cross ventilation,

where air is able to pass from one side of a building to the other. For
this to work effectively it typically dictates that buildings are no more
than 12-15 m in depth. However, in deeper plan spaces, natural
ventilation can be achieved by introducing central atria and making use
of the “stack effect” to draw air from the outer perimeter and up
through the centre of the building.

Figure VI. Cross ventilationa

Control
of
complet
e air
flow
pattern

Wm
ax<
5H
12
m
Figure VII. deStack
effecta pth
is
the
pra
ctic
al
ma Hot air flowing out of the building
xi draws in low-level fresh air
mu
m

Fresh cool air flows in at low level, picks up

heat, rises and flows out at high level

a
Building Research Energy Conservation Support Unit for the Energy Efficiency
Best Practice programme Good Practice Guide 290 Ventilation and cooling option
appraisal—a client’s guide.
 MODULE 18: ENERGY EFFICIENCY IN
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page 18.25

Effective window design

Windows should allow ease of control by building occupants and

controlled ventilation that will not blow papers off desks, or cause
draughts.

Night ventilation can be an effective method of maintaining comfort

conditions in summer. Where night ventilation is used, it is important
that building occu- pants understand how the building is intended to
be operated, or that effective control measures are introduced, as it is
counter intuitive to open windows before leaving a building at night.
Other factors to consider include maintaining secu- rity, and
controlling wind and rain. In some cases, high ambient noise levels or
air pollution may prohibit the use of natural ventilation.

Mixed mode ventilation

Mixed mode ventilation strategies allow natural ventilation to be used

for most of the year or to serve parts of a building. Mechanical
cooling is used to deal only with peak design conditions in summer or
to serve areas of the building that experience a higher build up of heat.

Reducing energy use for mechanical ventilation

The main use of energy for both mechanical cooling and for air
conditioning is the fans needed to circulate the air. Fan energy use for
mechanical ventilation can be reduced by:
• Designing the system to reduce pressure drops;
• Selecting efficient fans;
• Utilizing variable speed fans to respond to varying load
requirements;
• Avoiding excessive air supply volumes.

Reducing energy use for lighting

This can be accomplished through:

• Making maximum use of daylight while avoiding excessive solar
heat gain;
• Using task lighting to avoid excessive background luminance levels;
• Installing energy-efficient luminaires with a high light output to
energy ratio;
• Selecting lamps with a high luminous efficacy;
• Providing effective controls that prevent lights being left on
unnecessarily.
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Maximizing the use of daylight

Introducing natural light into buildings both saves energy but also
creates an attractive environment that improves the well-being of
building occupants. The provision of effective daylight in buildings can
be assessed using average day- light factors and by ensuring that
occupants have a view of the sky.

The average daylight factor will be influenced by the size and area of
windows in relation to the room, the light transmittance of the glass,
how bright internal surfaces and finishes are, the depth of reveals,
and presence of overhangs and other external obstructions which
may restrict the amount of day lighting entering the room.

Window design has a key impact on day lighting. As a rough rule of

thumb, a window will introduce effective daylight into a room to a
distance twice the head height of the opening. The use of high ceilings
and clerestory windows can be effective in providing good daylight.
Sunpipes and skylights can be used to intro- duce daylight to
windowless areas.

Energy-efficient lighting system

An efficient lighting installation should be able to provide the required

illumi- nance level for a particular use with minimum energy
consumption. Efficient lights should be able to provide illuminance
levels of 500 lux12 on a working plane for less than 12W/m2 of installed
Lighting controls
power.

Lighting controls should be designed so that small groups of lights

can be con- trolled individually with the controls provided adjacent
to the work area. Perimeter lighting should be controlled separately to
core lighting so that perime- ter lights can be switched off when there
is adequate daylight. Absence detec- tion should be provided to rooms
that are used intermittently. This should switch lights off automatically
after a room or space has been unoccupied for a set period of time.
Daylight sensors and timed switches should be used to prevent
external lighting being left on unnecessarily. Daylight sensors can also
be used to switch off internal lighting when daylight levels are
sufficient.
12
The lux is the SI unit of illuminance. It is used in photometry as a measure of the
intensity of light per square metre. Achieving an illuminance of 500 lux might be
possible in a home kitchen with a single fluorescent light fixture with an output of
12,000 lumens. To light a factory floor with dozens of times the area of the kitchen
would require dozens of such fixtures.
 MODULE 18: ENERGY EFFICIENCY IN
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Reducing energy used for heating water

This can be achieved by:

• Installing time controls, and setting them to correctly reflect the
hours of hot water requirement;
• Setting sanitary hot water thermostats to the appropriate
temperature—no more than 60oC for normal requirements (but
ensure the water does not drop below 56oC);
• Switching off electric heating elements (immersion) when hot water
from the boiler is available;
• Switching off any associated pumps when hot water is not required;
• Replacing any damaged or missing insulation from all hot water
pipe work and cylinders, except where the pipes are providing useful
heat into the space;
• Identifying a suitable hot water system.

Hot water provision is either provided via a central generation plant,

with a dis- tribution network to provide hot water to the required areas
within a building, or by localized provision at the point it is required.
Combined heating and hot water systems and separate heating and
hot water systems are the two types of cen- tralized hot water
systems. In the case of localized hot water systems, water is heated
and stored locally or is provided on demand. The most significant
reduc- tion in energy use for hot water can be achieved by providing
solar water heating.
Reducing consumption of office equipment and
appliances

Most businesses rely on a range of office equipment in order to

function. From the basic essentials such as computers, monitors,
printers, fax machines and photocopiers to projectors, scanners and
teleconference facilities, it is widely rec- ognized that these items have
become integral to daily activity.

Office equipment is the fastest growing energy user in the business

world, con- suming 15 per cent of the total electricity used in offices.
This is expected to rise to 30 per cent by 2020. There are also
associated costs that are often overlooked, specifically those of
increasing cooling requirements to overcome the additional heat this
equipment produces. As ventilation and air conditioning are major
energy consumers themselves, it makes good business sense to
ensure they are only used when absolutely necessary.

Typical measures to reduce consumption which also apply to

household appli- ances are:
 SUSTAINABLE ENERGY REGULATION AND POLICYMAKING TRAINING
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• Switching off – switching off or enabling power down mode reduces

the energy consumption and heat produced by equipment, which in
turn lowers cooling costs;
• Upgrading existing equipment – some energy-efficient appliances
may cost more to buy but will recoup savings over the lifetime of
the equipment;
• Matching the equipment to the task – bearing in mind current and
predicted requirements and purchase equipment that meet these;
• Taking advantage of energy labelling schemes – some well know
energy labelling schemes are Energy Star, European Ecolabel
Scheme, Energy Saving Recommended and The Market
Transformation Program.

Box 3. Energy Star energy efficiency equipment and

appliance labelling
Energy Star labeled products are the same or better than standard
products, only they use less energy. To earn the Energy Star, they must
meet strict energy effi- ciency criteria. Energy Star is a US programme
for office equipment, appliances, commercial foodservice products,
home electronics, home envelope products, lighting, residential
heating, cooling and ventilation equipment, new homes and other
products. It is widely used and accepted across the commercial sector.

Energy Star models have the following benefits:

• Computers – use 70 per cent less electricity than computers without
enabled power management;
• Monitors – use up to 60 per cent less electricity than standard
models;
• Printers – use at least 60 per cent less electricity and must
automatically enter a lower power setting after a period
of inactivity;
• Fax machines – use almost 40 per cent less electricity and may have
the capa- bility to scan double-sided pages, reducing both
copying and paper costs;
• Refrigerators are at least 15 per cent more efficient than standard
models;
• TVs – consume 3 watts or less when switched off, compared to a
standard TV, which consumes almost 6 watts on average;
• Light bulbs (CFLs) – use two-thirds less energy than a standard
incandescent bulb and must meet additional operating and
reliability guidelines;
• Furnaces – are 15 per cent more efficient than the standard.
 MODULE 18: ENERGY EFFICIENCY IN
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Figure VIII. The Energy Star

label

Good housekeeping and people solutions

The level of achievable energy savings from office equipment is down to

the every- day management by staff. A simple energy conservation
programme for an organ- ization would consider:
• Setting up an energy policy for the organization;
• Appointing an energy champion;
• Involving staff;
• Setting targets;
• Using notices and reminders;
• Conducting walk-rounds;
• Taking meter readings.

Setting up an energy policy

Commitment to energy efficiency has to come from the top and should
be backed up by a personalized mission statement and energy policy.
It is also important to appoint an energy champion. In very small
businesses, this may be the owner or manager but in larger
companies, an appointed staff member will often improve
involvement and awareness across the whole organization. Show
management commitment by developing a procurement policy
whereby energy- efficient products are specified when purchasing.
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Involving staff

All staff are important in saving energy, so they must be made aware of
wastage areas and be trained to operate equipment and controls
correctly. Motivate staff— ask for opinions and encourage people to
review their own working practices to increase energy savings. The
best ideas usually come from those that use the equipment on a daily
basis. Competitions, campaigns and team projects are great ways to
get buy-in. Reinforce the benefits of improving the working area and
give staff a sense of ownership of energy management.

Setting targets

Tell staff how much energy is currently being a consumed and set a
realistic savings target. As the energy-saving programme gathers
momentum, it will be possible to track progress and highlight energy
savings.

Using notices and reminders

Use notices and reminders on turning off equipment. They can also be
used to highlight how this makes the working environment more
pleasant.

Conducting walk-rounds

Carrying out regular good housekeeping walk-rounds in your building

to find out where energy is being used. Note down when equipment is
being used and act on any wastage or maintenance measures needed.
As patterns of energy use vary throughout the day, it is advisable to
carry out a series of walk-rounds at differ- ent times to get a better idea
of where and when energy is being wasted. Walking round your office
after everyone has left, before everyone comes in and when offices
are empty during the day, gives an idea of what equipment tends to
be left on out of office hours.

Take meter readings

Meter readings can give a picture of the energy usage in the office.
Meter read- ings can be used to determine electricity use during and
after office hours. These figures give an idea of the energy used every
hour the office is empty and to find out how much energy is used
when no one is in the building. In most offices, the overnight energy
consumption should only be a small percentage of the over- all energy
use.
 MODULE 18: ENERGY EFFICIENCY IN
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Exercise

From the measures mentioned above, list:

1. Those easiest to implement in your country.
2. Those with the highest potential savings.
 MODULE 18: ENERGY EFFICIENCY IN
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5. FINANCING ENERGY
EFFICIENCY IN BUILDINGS

There is a tendency in many businesses and public sector enterprises

to under- value cost reduction where this itself requires investment.
This happens when the organization fails to see the connection
between the investment and the ben- efits derived from it. Conventional
financial management information systems do not make visible the
benefit the business derives from energy saving investments.

Financial appraisal involves finding and evaluating the best projects to

invest in whatever they are and wherever they arise. It gives energy
savings the priority they merit when compared with other aspects of
cost reduction or business expansion. The six key steps in financial
appraisal of energy efficiency invest- ment in buildings are:
• Locating the buildings which have the potential;
• Identifying the area in each of these buildings where a saving can
be made and identifying the measures required to release these
savings;
• Establishing the costs and the savings for each measure and
calculating the key financial indicators, such as payback period and
net present value;
• Optimizing the financial return measured by these indicators for each
project, and the portfolio of projects;
• Establishing how much investment capital is available and
identifying new sources of capital;
• Deciding which projects make best use of the organization’s available
capital.

The most common reason for the failure of financial appraisals is that
they are too optimistic and in most cases do not give a true financial
picture of a project, either through overstating the benefits or
understating the costs. Costs for energy saving projects in buildings are
usually easier to establish than savings. A good energy monitoring
system will make it easier to predict the effect of a proposed project on
5.1. Energy
energy use effi ciency fi nancing
and cost.
mechanisms
After appraising the required energy efficiency measures, the next
challenge is sourcing the necessary capital to implement them.
Listed below are several options for financing energy efficiency
measures for buildings.
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Internal funds

Energy efficiency improvements are financed by direct allocations from

an orga- nization’s own internal capital or operating budget. The most
direct way to pay for energy efficiency improvements is to allocate
funds from the internal capital or operating budget. Financing internally
has two clear advantages over the other options: it retains internally all
the savings from increased energy efficiency, and it is usually the
simplest option administratively. All or some of the resulting sav- ings
may be used to decrease overall operating expenses in future years
or retained within a revolving fund and used to support additional
efficiency invest- ments. Many public and private organizations
regularly finance some or all of their energy efficiency improvements
from internal funds.

Debt financing

Energy efficiency improvements are financed with capital borrowed

directly by an organization from private lenders and include municipal
bonds. Direct borrowing of capital from private lenders can be an
attractive alternative to internal fund- ing for energy efficiency
investments. For both public and private organizations, this approach
avoids tapping internal funding, and financing costs can be repaid by
the savings from increased energy efficiency. Additionally, municipal
govern- ments often issue bonds or other long-term debt instruments
at substantially lower interest rates than private corporate entities. As
in the case of internal funding, savings from efficiency improvements,
less only the cost of financing, are retained internally. Debt financing
is administratively more complex than internal funding.

In general, debt financing should be considered for large projects that

involve multiple buildings and pose relatively little risk in achieving their
energy savings targets. When considering debt financing, organizations
weigh the cost and com- plexity of the type of financing against the size
and risk of the proposed projects.

Lease or lease-purchase agreements

Energy-efficient equipment is acquired through an operating or

financing lease of 5-10 years with no up-front costs. Leasing and lease-
purchase agreements pro- vide a means to reduce or avoid the high,
up-front capital costs of new, energy- efficient equipment. These
agreements may be offered by commercial leasing corporations,
management and financing companies, banks, investment brokers, or
equipment manufacturers. As with direct borrowing, the lease
should be designed so that the energy savings are sufficient to pay
for the financing charges.
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Financing leases are agreements in which the lessee essentially

pays for the equipment in monthly installments. Although payments are
generally higher than for an operating lease, the lessee may purchase
the equipment at the end of the lease for a nominal amount.

Guaranteed savings leases are the same as financing or operating

leases, but with an additional guaranteed savings clause. Under this
type of lease, the lessee is guaranteed that the annual payments for
leasing the energy efficiency improve- ments will not exceed the energy
savings generated by them. The building owner pays the contractor a
fixed payment per month. However, if the actual energy savings are
less than the fixed payment, the owner pays only the amount saved
and receives a credit for the difference.

Energy performance contracts

Energy efficiency measures are financed, installed and maintained by a

third party that guarantees savings and payments based on those
savings. Energy perform- ance contracts are generally financing or
operating leases provided by an energy service company (ESCO) or
equipment manufacturer. What distinguishes these contracts is that
they provide a guarantee on energy savings from the installed retrofit
measures, and they usually also offer a range of associated design,
instal- lation and maintenance services.

Under an energy performance contract, the ESCO provides a service

package that typically includes the design and engineering, financing,
installation and main- tenance of retrofit measures to improve energy
efficiency. The scope of the improvements can range from work that
affects a single part of a building’s energy-using infrastructure (such
as lighting) to a complete package of improve- ments for multiple
buildings and facilities. Generally, the service provider will guarantee
savings as a result of improvements in both energy and maintenance
efficiencies.

An energy performance contract must define the methodology for

establishing the baseline costs and cost savings and for the
distribution of the savings to the parties. The contract must also
specify how the savings will be determined and address contingencies
such as utility rate changes and variations in the use and occupancy of
a building.

Utility incentives

Rebates, grants, or other financial assistance offered by an energy

utility for the design and purchase of certain energy-efficient systems
and equipment usually
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as a result of the implementation of a policy to promote energy

efficiency. Some utilities offer financial incentives for the installation of
energy-efficient systems and equipment. These incentives are
available for a variety of energy-efficient products including lighting,
heating, ventilation and air-conditioning systems, energy management
controls and others. The most common incentives are equip- ment
rebates, design assistance and low-interest loans (see box 4). In
general, the primary purpose of utility incentives is to lower peak
demand. Overall energy efficiency is an important but secondary
consideration. Incentives can be in several forms:

Equipment rebates

Offering rebates on the initial purchase price of selected energy-

efficient equip- ment. An electricity consumer for instance who switches
from incandescent lights to efficient compact fluorescent lights could
get a refund on the tax they paid through the electricity utility
company for the lights through a reduction on their electricity bill by a
similar amount.

Box 4. Energy efficiency commitment of the United Kingdom

The Energy Efficiency Commitment (EEC) was introduced in April
2002, by the Department of Environment, Food and Rural Affairs
(Defra), and set a three-year energy savings target for domestic energy
suppliers to help reduce carbon emis- sions by improving energy
efficiency in households. The EEC is administered by Ofgem, the Office
of Gas and Electricity Markets.

This energy-saving target is met through measures such as offering

cavity wall and loft insulation, using energy-efficient boilers, appliances
and light bulbs. At least half of these savings are aimed at low-income
consumers in order to alleviate fuel poverty.

As a result of the EEC, the U.K.’s fuel utility companies set up an energy
efficiency commitment fund. The money contributed by the fuel
companies is used to fund various energy efficiency schemes for
homeowners and tenants. Some schemes are UK-wide, whilst others
are run locally. Some are run directly by the fuel com- panies, whilst
others are carried out in partnership with local councils, housing
associations and other relevant agencies.

The first EEC period from 2002 to April 2005, saw energy suppliers set
an overall three-year target of 62 TWh total energy savings. The total
was exceeded, reach- ing 86.8 TWh savings. The current EEC period
began in April 2005 and has a three- year energy savings target of 130
TWh. It is estimated energy suppliers will have to invest approximately
£1.2 billion in order to meet the challenge.
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Design assistance

Provision of direct grants or financial assistance to architects and

engineers for incorporating energy efficiency improvements in their
designs. This subsidy can be based on the square footage of a
building, and/or the type of energy effi- ciency measures being
considered. Generally, a partial payment is made when the design
process is begun, with the balance paid once the design has been
completed and installation has commenced.

Low-interest loans

Provision of loans with below-market rates for the purchase of energy-

efficient equipment and systems. The source of funding could be
through loans from development banks accessed through government
for this aim or from an energy efficiency fund levied from utilities.

Local authority and national assistance

Matching grants, loans or other forms of financial assistance may be

available from the local or state governments. In countries with energy
efficiency policies, a variety of state-administered programmes for
building efficiency improvements are often available, some of which
are funded through grants and programmes and national energy
programme funds.

Box 5. Salix: working with the public sector to

reduce carbon emissions through investment
in energy efficiency measures and
technologies in the United Kingdom
Escalating energy prices and the urgency attached to climate change has
increased the need to significantly scale up the implementation rate of
energy saving meas- ures and technologies in the United Kingdom.
Salix is an independent company set up by The Carbon Trust—a
government-funded company—which helps the United Kingdom’s
business and the public sectors cut carbon emissions. Salix was
established in 2004 to work with the public sector to reduce carbon
emissions through investment in energy efficiency measures and
technologies. Due to the success of its pilot, the Local Authority Energy
Finance Scheme, Salix is extending the range and scale of its operations
by increasing the number of local authorities that it currently works with
as well as opening the scheme to a larger number of qualifying public
sector bodies.
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By combining grant funding and its expertise, Salix gives organizations

an oppor- tunity to both improve energy efficiency and reduce energy
costs while taking a leadership role in tackling climate change. Salix
will provide a grant of typically
£200,000 to kick-start an energy efficiency drive affecting all
components of the partner’s estate. The partner organization will be
required to supplement this grant to make up the total “invest to save”
ring-fenced fund.

Monies dedicated to implementing energy saving projects will be

provided by this fund through interest-free internal “loans”. Loans are
repaid using a minimum of 75 per cent of annual savings. Once the
project loan has been repaid to the fund the project recipient will
continue to benefit from the ongoing energy savings. As repayments
are recycled into the fund they become available for re-investment,
hence creating a self-sustaining fund.

The United Kingdom’s Carbon Trust also offers interest-free energy

efficiency loans to small or medium-sized enterprises (SMEs) that have
been trading for at least 12 months. SMEs can borrow from £5,000 to
£100,000 unsecured, interest free and repayable over a period of up to
four years.

Figure IX. The Salix funding mechanism

Internal “loans” for

energy efficiency
projects

Salix
fundin
g Ring-
fenced
sustainabl
Energy
e fund
Partne efficienc
r y
fundin projects
g

£ Energy savings
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Review question

List and describe four mechanisms for financing energy efficiency in

buildings.

Discussion question

Outline how at least two of the finance mechanisms outlined here

would be applied in your country highlighting how they would be
affected and which organizations would be involved.
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6. DEVELOPING AND
IMPLEMENTING POLICY ON
ENERGY EFFICIENCY IN
BUILDINGS
To ensure effective implementation of energy efficiency in buildings
involves the development and formulation of an energy efficiency
policy and the enactment of a legal and institutional framework.

The formulation of an energy efficiency policy should be developed by

the rele- vant ministry13 in partnership with relevant stakeholders. The
policy is owned by the ministry and guides the ministry on what it
would like to achieve, how long it will take and what it should do to
achieve it. The energy efficiency policy does not have to be exclusive
to buildings and can cover energy efficiency in build- ings, industry as
well as supply and demand-side management if policies for these do
not already exist. The drafting of a law to implement and enact the pol-
icy is the only guaranteed means to ensure its application. An “Energy
Efficiency for Buildings Act” will:
• Establish an energy efficiency agency or bureau and define its
functions and powers;
• Establish or identify a body to facilitate and enforce efficient use of
energy in buildings;
• Establish penalties for failure to comply to the energy efficiency
building stan- dards14 and set up a body or office with powers to
adjudge compliance;
• Establish an appellate tribunal and appeal framework to hear appeals
of those who have been adjudged and penalized.

6.1. The formulation of an energy

effi ciency policy
Policy is formulated on a need basis, and therefore policymakers require
a clear picture of the contribution of buildings to the country’s total
energy consump- tion, the future impact of urbanization and increase
in the number of new build- ings vis-à-vis energy demand and the
potential for energy savings from large-scale implementation of
energy efficiency measures in existing and future buildings.

13
Ministry of Energy, but requires participation from the Ministry Public Buildings of
Works (respon- sible for monitoring the building industry).
14
Penalties for failure to comply with standards can be established during the formulation
of the pol- icy or by the regulator. Under India’s Energy Conservation Act, those who
fail to comply with the energy efficiency provisions are liable to a penalty of up to $US
230 for each failure and an addi- tional $US 23 per day in the case of continuing
failures. In Bulgaria, the penalty is $US 330-2000.
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Policymakers also need to understand the potential benefits of more

energy- efficient buildings, these benefits being:
• Improving the security of supply and reducing the need for
imported energy;
• Reducing the needs for new investments in energy generation;
• Having a favourable social effect, bringing down energy bills and
needs for subsidies;
• Reducing the adverse impact of energy production and energy
use on the environment.

In most developing countries there is little or no information on the

energy con- sumption of buildings or the potential energy savings.
There are methodologies that have been developed to collect this
data, but they have to be adapted to the local situation. This
information gap is a major barrier to making a convinc- ing argument
towards the formulation of an effective policy. Therefore an initial data
collection and information-sharing phase is required to kick-start
the process.

During the policy formulation phase, the relevant ministry should

involve key stakeholders from architectural associations, local
authorities, energy consult- ants, developers, electricity supply and
distribution companies and other energy service providers. The policy
should:
• Outline the need for and benefits of energy efficiency in buildings;
• Estimate potential savings both in terms of energy use and reduction
of capacity;
• Set achievable targets and timelines;
• Outline an approach to achieve the targets and monitor them;
• Consider the requirements for technical and informational support
needed by building owners, building energy managers, developers,
architects and engineers;

Consider the financial support instruments for undertaking energy

efficiency measures.

6.2. Implementing policy on energy

effi ciency in buildings
To implement policy, certain bodies need to be set up to operationalize
it. These would consist of an agency whose role is to develop and
recommend a frame- work for the policy, a regulator to facilitate and
enforce the policy, an adjudicat- ing body to mete out penalties and an
appellate tribunal to hear appeals against the orders of the adjudicating
body. These bodies are set up by an act of parlia- ment, through which
their functions and powers are defined.
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The energy effi ciency agency

The role of the agency would be to develop and recommend a

framework for application of the policy, create awareness, provide
guidance and information to stakeholders, and actively promote energy
efficiency in buildings.

The functions of the agency would be to:

• Recommend the application and exemption i.e. which buildings
based on application, size, and/or energy consumption the policy will
target or exempt;
• Develop standard methodology for assessing the energy
requirements of exist- ing or proposed buildings and specify the
manner and intervals of time in which energy audits shall be
conducted;
• Develop energy efficiency benchmarks to gauge the level of
efficiency of a building and to set energy efficiency
targets/requirements for buildings;
• Develop a certification and labelling criteria for buildings and
appliances to prescribe guidelines for energy conservation building
codes;
• Arrange and organize training of personnel and specialists in the
techniques for efficient use of energy in buildings;
• Promote research and development in the field;
• Strengthen consultancy services in this field;
• Formulate and facilitate implementation of pilot projects and
demonstration projects for promotion of efficient use of energy in
buildings;
• Promote use of energy-efficient processes, equipment, devices and
systems;
• Promote innovative financing of energy efficiency projects;
• Give financial assistance to institutions for promoting efficient use of
energy and its conservation;
• Levy fee, as may be determined by regulations, for services
provided for promoting efficient use of energy in buildings;
• Specify, by regulations, qualifications for accredited building energy
auditors;
• Register and maintain a list of accredited building energy auditors;
• Prepare educational curriculum on efficient use of energy and its
conserva- tion for educational institutions, boards, universities or
autonomous bodies and coordinate with them for inclusion of such
curriculum in their syllabus;
• Implement international cooperation programmes;
• Create awareness and disseminate information for efficient use of
energy in buildings.
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also ensure contributions and participation from experts and key

stakeholders. The energy efficiency agency is also best placed to
make recommendations of suitable penalties and incentives.

The energy effi ciency regulator

The energy efficiency agency could also double up as the regulator, but
it has to be structured so that both arms are complementary. In some
developing coun- tries, a regulatory body for electricity or energy
already exists and could be man- dated to be the energy efficiency
regulator as well instead of establishing a new body. The regulatory
body would have authority to:
• Specify and prescribe the energy efficiency norms and standards for
buildings and appliances;
• Specify the application and exemption i.e. which buildings based on
applica- tion, size, and/or energy consumption the policy will target
or exempt;
• Specify equipment or appliance or class of equipments or
appliances, for which the law/act applies;
• Prohibit manufacture, sale, purchase or import of equipment or
appliances specified unless such equipment or appliances conforms
to energy consump- tion standards;
• Specify certification and labelling of buildings and appliances;
• Direct any designated consumer to get an energy audit
conducted by an accredited energy auditor;
• Direct any designated consumer to furnish to the designated
agency, infor- mation with regard to the energy consumed and
action taken on the recom- mendation of the accredited energy
auditor;
• Direct any designated consumer to designate or appoint an energy
manger in charge of activities for efficient use of energy and its
conservation and sub- mit a report, in the form and manner as may
be prescribed, on the status of energy consumption at the end of
the every financial year to the designated agency;
• Direct every designated consumer to comply with energy
consumption norms and standards;
• Prescribe energy conservation building codes for efficient use of
energy;
• Amend the energy conservation building codes to suit the regional
and local climatic conditions;
• Direct every owner or occupier of the building or building complex,
being a designated consumer to comply with the provisions
of energy conservation building codes for efficient use of
energy and its conservation.
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The regulator could also be required to:

• Make available all compliance material for buildings and create
awareness and disseminate information on this material;
• Appoint inspecting officers for the purpose of ensuring
compliance with energy consumption standards specified;
• Arrange and organize training of personnel and specialists;
• Encourage preferential treatment for application of energy-efficient
measures and use of energy-efficient equipment or appliances;
• Constitute a fund for the purpose of promotion of efficient use of
energy and its conservation to be credited all grants and loans that
may be made by the government or any other organization or
individual for the purposes of this Act.

The energy effi ciency adjudicating body

The functions of this office would be to:

• Set penalties (fine or jail) and how they would be applied in
case of failure to comply to energy efficiency standards;
• Holding inquiries, establishing and meting out penalties.

The appellate tribunal

The tribunal would be responsible for:

• Developing an appeal framework to hear appeals of those who
have been adjudged and penalized:
• Hearing and judging on appeals against the orders of the
adjudicating officer/body.

Review question

List five functions of the energy efficiency agency.

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Discussion questions

1. What would be the most suitable model in your country

with regard to the bodies required to operationalize an “Energy
Efficiency in Buildings Policy” and their functions?
2. How would you set up an energy efficiency fund in your
country? Where would the funds be sourced from and what
criteria would you use to allo- cate the funds?
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7. POLICY TOOLS TO
PROMOTE BUILDING
EFFICIENCY
The most effective programmes are designed not only to ensure that a
particu- lar target level of energy efficiency improvement is realized
but also to assure that the market is prepared continually to introduce
better and better techno- logies for energy efficiency.

This process of continuous improvement in energy efficiency should

be antici- pated in the developmental process for energy efficiency
codes by requiring that the codes be reviewed periodically—such as
every three or four years—and updated to include requirements for
the use of newer technologies that are cost- effective and feasible.

Legislative and policy options that have had some record of success in
promot- ing energy efficiency in buildings include:
• Codes and standards for new construction and performance-based
economic incentives to go beyond the standards;
• Long-term incentives with ambitious energy efficiency targets;
• Normative labels to distinguish the most energy-efficient
buildings and equipment;
• Informative labels that provide the information necessary to
measure energy efficiency and annual energy costs for operation;
• Education and outreach to promote market acceptance of energy
efficiency technologies and energy-efficient designs, most notably
efficiency demonstra- tion centres;
• Government-funded research and development on energy efficiency in
buildings.

7.1. Codes and standards

Codes refer to mandatory energy efficiency requirements for new
construction in buildings. New construction refers either to an
entirely new building being erected, or the construction of a new
energy-using system (such as a lighting system or an air conditioning
system) in an existing building. Standards refer to minimum
mandatory requirements for equipment used in buildings, such as air
conditioning units, furnaces or boilers, water heaters, office
equipment, appli- ances, etc.
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Before adopting codes and standards, the regulator must first

develop testing protocols and methodologies to determine how much
energy the whole building uses, how much each of the energy-using
components contribute to the total energy use and benchmarks for
new and existing buildings. Ideally, compliance with these protocols
will yield databases listing the performance of each prod- uct or
building offered for sale, and labels publicizing the tested
performance.

Residential and non-residential buildings

All of the major energy-related choices—the thermal conductivity of

insulation, the thermal transmission qualities of windows, the heat
capacity of building materials, the solar heat transmission qualities
of windows, the visible light transmission of windows, the air and
water movement output of fans and pumps, the efficiency of motors,
heat transfer efficiencies of heaters for air and water, etc.—must be
determined by standardized measurements. Before advanced
energy-efficient equipment requirements can be determined for either a
manda- tory or a voluntary programme, test protocols and labelling
rules must be estab- lished and enforced.

For building energy efficiency, the most effective codes offer two options
of com- pliance, called prescriptive and performance-based.

Prescriptive standards set requirements for the components of a

building, for example, the thermal conductivity of insulation or the
efficiency of a heating or cooling device. They do not offer the designer
the flexibility to vary from many of these minimum specifications.

Performance-based standards, on the other hand, set maximums on

the energy consumption or annual predicted energy cost of a building
taken as a whole. They allow the designer to specify less energy
efficiency in some components in return for more efficiency in others.
They are more economically efficient because they allow the designer
or builder to optimize the selection of efficiency measures to minimize
first costs. They also tend to lead to innovations in which the efficiency
measures actually used are better than the ones that were required in
the pre- scriptive standards.

In addition to establishing protocols for testing buildings and

components and regulating minimum acceptable levels of performance,
the regulator must develop plans for implementation and enforcement
of the standards. These can be more difficult to establish at first, since
the goal is to establish a positive feedback cycle in which companies
and individuals that comply receive positive reinforce- ment in the
marketplace, where those that are out of compliance face potential
penalties. Once it is established that a code will be enforced, it is not
difficult to
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maintain these positive expectations, but a jurisdiction must plan to

make signifi- cant initial efforts to enforce the code with credibility.

Certain categories of buildings may be exempted from these standards,

e.g. build- ings and monuments designated officially as protected,
places of worship, tem- porary buildings with a planned time of use of
two years or less, non-residential agricultural buildings with low energy
demand, buildings whose useful floor area is below a certain range
(e.g. less than 1,000 square metres)

New constructions

Standards for new construction can be adopted legislatively or

administratively. Where legislative adoption has been used, the
legislative body has often adopted the local requirements of a national
or international model, rather than having the details worked through
the legislative process.

Authority is often delegated to an administrative agency which is

provided with general instructions or criteria that code revisions must
meet. These typically require that the code incorporate all energy
efficiency measures that are tech- nologically feasible and cost
effective to the consumer over the lifetime of the building.

A second general process is for the agency to allow public comment on

draft stan- dards and require the agency to respond to this
commentary. Public comment identifies areas with problems for
implementation in advance and can create a more positive attitude
among the design and construction community towards eventual
compliance. The authorizing legislation usually specifies what agencies
are responsible for implementing the energy standard. It may or may
not be the same agency that adopts it.

Implementation will require a programme of outreach and education to

enforce- ment officials, building designers and the construction
industry. At a minimum, this includes a means for disseminating
current and updated versions of these standards and a process for
compiling and publicizing interpretations of the stan- dards as they are
made.

Implementation should also include the development and

dissemination of design manuals that show how to construct
buildings or details such that they comply. The design manuals should
almost motivate the designer to meet or do better than the energy
code.

There also needs to be an agency to provide fast-response telephone

and e-mail answers to questions concerning the meaning of the code.
Frequent training of
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code enforcement officials as well as building industry officials has

proven nec- essary. Government as part of the legislation authorizing
the standards can pro- vide funding for training. But usually other
funding sources have been used. Some form of third-party inspection by
government officials or independent private sec- tor inspectors is
necessary to assure quality control.

In many countries, building inspectors at the local level already certify

building compliance with construction codes with respect to fire safety,
electrical safety, etc. These officials can also enforce energy codes. But
they will require frequent training as well as motivation to get them to
do so. Some jurisdictions, instead of relying on building code
inspectors, allow or require the use of independent third-party private
sector inspectors. In this case, the energy agency must estab- lish
standards for technical expertise, professional conduct and financial
inde- pendence of the inspector from the builder in order to assure
that the private sector inspectors are doing their job.

Refurbishing and renovations

There are two ways to affect energy efficiency in existing buildings.

The first is to require that energy efficiency measures be installed when
a major renovation or reconstruction is taking place. This could include
something as minor as a new tenant moving into an existing
commercial building and installing a replacement lighting system; in
this case, the codes require that the new lighting system com- ply with
the same energy efficiency standards as if it were an entirely new build-
ing. Similarly, when a component in a building is replaced in a
fashion that requires a building permit, the component can be
required to have the same energy efficiency as it would for a new
building (or even a somewhat different level of efficiency).

A second way of addressing the problem of existing buildings is to

require retro- fits at a particular time, typically, point of sale. In this
case, the code requires the owner to undertake construction projects
that would not have been under- taken at all but for the energy code, in
contrast to requiring that upgrades already being undertaken be done
in an energy-efficient manner. However, mandatory energy efficiency
standards for retrofit buildings are relatively rare.

7.2. Incentives
Economic incentives complement codes and standards. They depend
on the prior existence of these standards both to establish the criteria
by which superior per- formance can be measured and to establish
levels of efficiency at which eco- nomic incentives are justified. In turn,
incentives can complement standards by
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providing for differentiation in the marketplace between low efficiency,

typical and high efficiency buildings or products. Incentives can also
encourage the wide- spread use of new technologies that may later be
appropriate for standards, but which it is impossible to require at a
given time due to questions of availability or universality of
application.

Although incentives are often more effective than regulation, they

must be bal- anced against the need to provide a financial revenue
source for the incentives. Standards require a dramatically smaller
investment by the government in pro- ducing a given level of energy
efficiency. They also guarantee that at least a basic level of efficiency will
be met in all cases covered by them.

Legislation establishing programmes for energy efficiency

incentives must provide a funding mechanism for the incentive as
well as an administrative mechanism for spending the money in the
most effective way.

7.3. Certification and labelling

Labels can typically be distinguished as normative or informative.

Normative labels

Normative labels mark products or buildings that achieve an

“exemplary” or rec- ommended level of energy efficiency higher than
the typical level of efficiency. Normative labels can be established as a
freestanding government programme, or as private sector
programmes.

Government policy can make use of normative labels by requiring that

products purchased by the government directly or on government
contracts qualify for the appropriate label.

Informative labels

Information labelling as a policy tool can be a meaningful part of

energy effi- ciency policy. It could encompass new and existing
buildings or could be limited to new buildings only. The European
Union, for example, has recently required that all buildings be rated
for energy efficiency over the next several years. However, the EU is
yet to implement a standardized test protocol with which to do such
ratings. These ratings would apply to all buildings, both existing and
new.
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Box 6. Energy benchmark pool for commercial buildings in

Frankfurt
The energy agency of Frankfurt organized an energy benchmark pool
for commer- cial buildings. Users, owners and investors of buildings are
invited to analyse and optimize the energy use of their buildings in
small groups of up to 10 participants and the results are published
anonymously. The aim is to enforce competition of energy-efficient
buildings in Frankfurt and to give owners and investors clear figures to
describe energy efficiency for their planners.

Facilitation of a benchmark process with the owners, users or investors

of a com- mercial building:

• Step 1: Introduction workshop (questionnaire and determination of

the bench- mark process);
• Step 2: Data collection through the participants;
• Step 3: Data analysis through the energy agency;
• Step 4: Discussion of the analysis, experience and information
exchange and best practice presentation in up to three workshops;
• Step 5: Collection and public presentation of the (anonymous)
results;
• Step 6: Continuous experience exchanges twice a year.

The results from the process were:

• On average, 25 per cent of the total energy demand of the buildings

was iden- tified as a saving potential with a payback time of
less than five years.
• Typically 10-15 per cent of the total demand could be saved only by
optimizing the running time of the equipment without any
investment
• For the first time, the electricity demand in 10 big office buildings in
Frankfurt was analyzsed in great detail (parts of lighting,
HVAC, office equipment, etc.) showing large deviations in specific
demands as well as high saving potentials.

The implementation of the defined potential energy saving initiatives

is still in process.

Lessons learned

A huge improvement in the energy efficiency awareness of the

responsible man- ager is one of the positive aspects of project
implementation. It is necessary to hold a process that is attractive to
both the technical and financial departments.
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8. CONCLUSION

With the current rate of urbanization and the subsequent increase in

energy demand, energy efficiency in buildings has a significant role to
play in contribut- ing to energy security in developing countries. With
the increasing cost of com- plexity of new energy sources and the
escalating cost of energy, governments should share the burden and
cost of ensuring security of supply with end-users through energy
efficiency.

Technological improvements in building design and appliances offer

new oppor- tunities for energy savings. Furthermore, many of these
technologies are yet to be adapted to African environments and other
developing countries suggesting a huge potential for savings.
Resistance to change and the cost of implementing energy savings
means that unless a policy and regulatory framework is set up, there
is unlikely to be any change.

The lack of information on energy consumption trends in buildings and

the oppor- tunities and potential for energy savings is a significant
barrier. These numbers are imperative to develop effective policies and
set realistic and achievable targets.

Policy formulation should be consultative and involve key

stakeholders from architectural associations, local authorities, energy
consultants, developers, elec- tricity supply and distribution companies
and other energy service providers. An effective policy for energy
efficiency in buildings should:
• Outline the need for and benefits of energy efficiency in buildings;
• Estimate potential savings both in terms of energy use and reduction
of capacity;
• Set achievable targets and timelines;
• Outline an approach to achieve the targets and monitor them;
• Consider the requirements for technical and informational support
needed by building owners, building energy managers,
developers, architects and engineers;
• Consider the financial support instruments for undertaking energy
efficiency measures.

An appropriate institutional framework is necessary to implement

policy. These institutions would have the functions of developing and
recommending a frame- work for the policy, facilitating and enforcing
the policy, meting out penalties and hearing appeals against penalties.
These institutions are set up by an act of parliament, through which
their functions and powers are defined.
 MODULE 18: ENERGY EFFICIENCY IN
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LEARNING
RESOURCES

Key points covered

The module covers the following key points:
• The building sector is an important contributor to any country’s total
energy consumption. Globally, the building sector is responsible for
more electricity usage than any other sector—42 per cent. While
building sector energy con- sumption is generally greater in
developed countries than in developing coun- tries, it is still an
issue (and a growing issue) for developing countries, particularly
for those with restricted generating capacity.
• While the building sector is a major energy consumer, including
residential, commercial and industrial buildings, very considerable
energy savings are possible—with many being achievable at a
relatively low cost.
• There are many different energy flows within any given building—
into and out of the building. Methodologies are available to
measure a building’s energy performance.
• Energy efficiency measures for buildings are approaches through
which the energy consumption of a building can be reduced while
maintaining or improv- ing the level of comfort in the building. They
can typically be categorized into:
- Reducing heating demand;
- Reducing cooling demand;
- Reducing energy requirements for ventilation;
- Reducing energy used for lighting;
- Reducing energy used for heating water;
- Reducing electricity consumption of office equipment and
appliances;
- Good housekeeping and people solutions.
• To ensure effective implementation of energy efficiency in buildings
involves the development and formulation of an energy efficiency
policy and the enact- ment of a legal and institutional framework. To
implement policy, certain bod- ies need to be set up to
operationalize it. These would consist of an agency whose role is to
develop and recommend a framework for the policy, a regu- lator to
facilitate and enforce the policy, an adjudicating body to mete out
penalties and an appellate tribunal to hear appeals against the
orders of the adjudicating body. These bodies are set up by an act
of parliament, through which their functions and powers are
defined.
• There is a tendency in many businesses and public sector
enterprises to undervalue cost reduction where this
 SUSTAINABLE ENERGY REGULATION AND POLICYMAKING TRAINING
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when the organization fails to see the connection between the

investment and the benefits derived from it. Conventional financial
management information systems do not make visible the benefit
the business derives from energy sav- ing investments. However, as
the different real-life experiences presented in the module and case
studies show, energy efficiency in buildings can yield significant
financial benefits. Financial appraisals need to be conducted (and in
the right way) to demonstrate a project’s potential to save energy
and hence save money for the building’s owner/operator.

Answers to review questions

Question: What are energy efficiency benchmarks and what is

their role when determining the energy efficiency of a
building?
Answer:
Energy efficiency benchmarks are representative values of energy
consumption for common building types against which a building’s
actual performance can be com- pared.
To determine how efficient or inefficient a building is, its energy
consumption is compared with the benchmark for a building of its type,
use and performance in a similar climatic zone

Question: List and describe four mechanisms for financing

energy efficiency in buildings
Answer:
[Link] funds: Direct allocations from an organization’s own
internal capital or operating budget. All or some of the resulting savings
may be used to decrease overall operating expenses in future years or
retained within a revolving fund and used to support additional
efficiency investments.
[Link] financing: Capital borrowed directly by an organization
from private lenders. As in the case of internal funding, savings from
efficiency improvements, minus only the cost of financing, are retained
internally.
[Link] or lease-purchase agreements: Energy-efficient equipment
is acquired through an operating or financing lease with no up-front
costs. Leasing and lease- purchase agreements provide a means to
reduce or avoid the high, up-front cap- ital costs of new, energy-efficient
equipment.
[Link] performance contracts: Energy efficiency measures are
financed, installed and maintained by a third party that guarantees
savings and payments based on those savings. Energy performance
contracts are generally financing or operating leases provided by an
energy service company (ESCO) or equipment manufacturers. They
provide a guarantee on energy savings from the installed retrofit
measures, and they usually also offer a range of associated design,
instal- lation and maintenance services.
 MODULE 18: ENERGY EFFICIENCY IN
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[Link] incentives: Rebates, grants or other financial assistance

offered by an energy utility for the design and purchase of certain
energy-efficient systems and equipment usually as a result of
implementation of a policy to promote energy efficiency.

Question: List five functions of the energy efficiency agency

Answer:
• Recommend the application and exemption i.e. which buildings based
on appli- cation, size and/or energy consumption the policy
will target or exempt.
• Develop a standard methodology for assessing the energy
requirements of existing or proposed buildings and
specify the manner and intervals of time in which energy audits
shall be conducted.
• Develop energy efficiency benchmarks to gauge the level of energy
efficiency of a building and to set energy efficiency
targets/requirements for buildings.
• Develop certification and labelling criteria for buildings and
appliances to pre- scribe guidelines for energy
conservation building codes.
• Arrange and organize training of personnel and specialists in the
techniques for efficient use of energy in buildings.
• Promote research and development in the field.
• Formulate and facilitate implementation of pilot projects and
demonstration projects for promotion of efficient use of energy in
buildings.
• Promote use of energy-efficient processes, equipment, devices and
systems.
• Promote innovative financing of energy efficiency projects.
• Give financial assistance to institutions for promoting the efficient use
of energy and its conservation.
• Levy fee, as may be determined by regulations, for services provided
for pro- moting efficient use of energy in buildings.
• Specify, by regulations, qualifications for accredited building energy
auditors.
• Register and maintain a list of accredited building energy auditors.
• Implement international cooperation programmes.
• Create awareness and disseminate information for efficient use of
energy in buildings.
 SUSTAINABLE ENERGY REGULATION AND POLICYMAKING TRAINING
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Presentation/suggested discussion
topic

Presentation:
ENERGY EFFICIENCY – Module 18: Energy efficiency in buildings

Suggested discussion topic:

1. What incentives would you recommend to facilitate energy
efficiency meas- ures in buildings in your country and how would
you implement them?

Relevant case
studies
1. Sustainable energy authority in Australia.

2. Improving energy efficiency in Ekurhuleni Metropolitan Municipal

(EMM) Buildings, South Africa.

3. Efficient lighting in Latvian Academy of Sport Education (LASE),

Latvia.

4. Passive design in local government offices in Ireland

 MODULE 18: ENERGY EFFICIENCY IN
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REFERENC
ES
Directive 2002/91/ec of the European Parliament and of the Council on the
Energy Performance of Buildings, 2002.
[Link]/smartapi/cgi/sga_doc?smartapi!celexplus!prod!
DocNumber&lg
=en&type_doc=Directive&an_doc=2002&nu_doc=91

Energy Efficiency Division of the Philippines Department of Energy (DOE), 2002,

Philippines Guidelines for Energy Conserving Design of Buildings and
Utility Systems. [Link]/downloads/[Link]

Michael Laar and Friedrich Wilhelm Grimme, 2002. Sustainable Buildings in

the Tropics. Institute of Technology in the Tropics ITT, University of Applied
Sciences Cologne: Presented at RIO 02 – World Climate & Energy Event,
January 6-11, 2002. [Link]/proceedings/pdf/159_Grimme.pdf

California Energy Commission, 2005, Options for Energy Efficiency in Existing

Buildings. [Link]/ab549/[Link]

IEA. 2004b. Energy Balances for OECD Countries and Energy Balances for
non-OECD Countries; Energy Statistics for OECD Countries and Energy
Statistics for non-OECD Countries (2004 editions) Paris

Kevin A. Baumert, Timothy Herzog and Jonathan Pershing, 2005, Navigating

the Numbers Greenhouse Gas Data and International Climate Policy,
World Resources Institute
[Link]/climate/pubs_description.cfm?pid=4093

EU Energy Performance in Buildings - Directive Implementation

Advisory Group, Explanation of the General Relationship between
various standards from the European Committee for Standardization
and the Energy Performance of Buildings Directive (EPBD).
[Link]/[Link]

EU Energy Performance in Buildings - Directive Implementation

Advisory Group: Methodologies in support of the Energy Performance of
Buildings Directive: The UK approach to implementation for buildings
other than dwellings. [Link]/[Link]

European Programme for Occupant Satisfaction, Productivity and Environmental

Rating of Buildings 2004: Certification of Existing Building Energy
Performance—The Energy Performance Label.
[Link]

Robert Cohen, Energy for Sustainable Development 2004: Display and

Disclosure. [Link]/Links/[Link]

Building Research Energy Conservation Support Unit for the Energy Efficiency
Best Practice program Good Practice Guide 290 Ventilation and cooling
option appraisal—a client’s guide.
 SUSTAINABLE ENERGY REGULATION AND POLICYMAKING TRAINING
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Department of Trade and Industry New and Renewable Energy Program: 2000.
Extended Renewable Eergy Case Study: Channelling Light To Dark Places.
[Link]/housing/PDFs/[Link]

[Link]
 MODULE 18: ENERGY EFFICIENCY IN
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INTERNET
RESOURCES
[Link]
Carbon Trust is a government-funded company which helps UK business and
the public sector cut carbon emissions. The Carbon Trust website was
developed to demonstrate best practice and make businesses aware of the
cost of carbon emissions and climate change.

The website houses a large online collection of free independent energy

efficiency publi- cations. Below are links to some useful publications.

[Link]/publications/publicationdetail?productid=CTV007
Maximizing energy savings in an office environment—an overview for office-
based com- panies introducing the main energy saving opportunities for
businesses and demon- strating how simple actions save energy, cut
costs and increase productivity.

[Link]/Publications/[Link]?productid=ECG01
9
Energy use in offices—a guide to raise awareness of the potential to
improve the energy and environmental performance of offices and
encourage positive management action. It outlines technical and
management measures to help reduce energy consumption and costs and
provide additional detail to assist diagnosis, analysis, technical and
managerial improvements.

[Link]/Publications/[Link]?productid=GIL124
&meta
NoCache=1
Heating fact sheet—an introductory guide to heating systems and their
components, simple energy saving tips covering heating systems and
controls commonly found in commercial and industrial buildings.

[Link]/Publications/[Link]?productid=GIL126
&meta
NoCache=1
Lighting fact sheet—information on energy saving measures for lighting.

[Link]/Publications/publication
de
[Link]?
productid=GPG290&metaNoCache=1
Ventilation and cooling options appraisal—the focus of the guide is cooling
and ven- tilation strategies that give value for money while ensuring good
quality internal envi- ronments, simple systems which can be readily
understood, managed and maintained and run in an energy-efficient
manner.

[Link]/yourhome/technical/[Link]
Australia’s guide to environmentally sustainable homes—a technical manual
showing how to design and build comfortable homes that have less impact on
the environment.

[Link]/title24/2005standards/[Link]
 SUSTAINABLE ENERGY REGULATION AND POLICYMAKING TRAINING
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enforce California’s energy efficiency standards for residential and non-

residential build- ings. The manual is written as both a reference and an
instructional guide.

[Link]/pdfs/[Link]
Financial aspects of energy management in buildings—a guide outlining the
key steps in the financial appraisal of energy efficiency investment in
buildings.

[Link]/pdf/CIBSE_Briefing.pdf
The Energy Performance of Buildings Directive—a summary of the objectives
and contents of Directive 2002/91/EC of the European Parliament and Council,
on the energy perform- ance of buildings. It came into force on 4 January
2003 to increase awareness of energy use in buildings, and will lead to
substantial increases in investments in energy efficiency measures within
domestic and non-domestic buildings.

The complete directive is available at: [Link]/pdf/EPD_Final.pdf

[Link]/ecact/ecact_main.htm
India’s Energy Conservation Act of 2001—the Act provides for efficient use of
energy and its conservation. It establishes and incorporates a Bureau of
Energy Efficiency, gives power to the Central Government to enforce efficient
use of energy and power of State Government to enforce certain provisions
for efficient use of energy and its conservation, establishes a State Energy
Conservation Fund for the purposes of promotion of efficient use of energy
and its conservation within the State and gives authority to the designated
agency to appoint inspecting officers for the purpose of ensuring compliance
with energy consumption standards specified.

[Link]/downloads/[Link]
Philippines guidelines for energy conserving design of buildings and utility
systems

[Link]/eng/norm/rdocs/[Link]?id=19
0688
Bulgaria’s Energy Efficiency Act

[Link]/index_en.php?mid_val=39
Policy documents for energy efficiency in buildings from Bulgaria’s Energy
Efficiency Agency
 MODULE 18: ENERGY EFFICIENCY IN
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GLOSSARY/DEFINITION OF KEY
CONCEPTS
Blind A blind is a covering for a window, usually attached to
s the inte- rior side of a window. Exterior blinds (for the
outer side of the window) and mid pane blinds
(located in the cavity of the double glazing), are also
available. Blinds hide from sight an external view from
the window or reduce sunlight. Blinds have varying
thermal effects: they can block unwanted heat in
summer and keep heat inside during cold weather.
But in both these applications, they also reduce
light to varying degrees, depending on the design.
Many kinds of blinds attempt varying balances of
blinding external views and allowing sunlight.
Caulkin Refers to the activity of closing up joints and gaps in
g build- ings. The function of caulking is to provide
thermal insulation and noise mitigation. This is
mostly done with ready-mix construction chemicals
sold as caulk.
Climate change This is a tax on energy levied on users in the United
levy Kingdom. Its aim is to provide an incentive to increase
energy efficiency and to reduce carbon emissions.
The levy applies to most energy users, with the
notable exceptions of those in the domestic and
transport sectors. Electricity generated from new
renewables and approved cogeneration schemes is
not taxed. From when it was introduced, the levy
was frozen at 0.43p/kWh on electricity, 0.15p/kWh
on coal and 0.15p/kWh on gas. A reduced levy
applies to energy-intensive users pro- vided they sign
a climate change agreement. Revenue from the levy
was offset by a 0.3 per cent employers’ rate reduction
in National Insurance. However, the 2002 Finance
Act subse- quently increased that rate by 1 per cent,
reversing the reduc- tion. Part of the revenue is used
Condensing A
to condensing
fund a numberboiler ofone that efficiency
energy achieves enhanced
initiatives,
boilers efficiency
including thebyCarbon
incorporating
Trust. an additional heat
exchanger that uses the heat in the exhaust gases
from the boiler to preheat water as it enters the
boiler, and so recapturing energy that would other-
wise be lost. When a condensing boiler is working at
peak effi- ciency the water vapour produced by the
consumption of gas or oil in the boiler condenses
back into liquid water. The con- densation of exhaust
gases releases the latent heat of vapor- ization of the
water, a more significant source of energy than the
transfer of heat by cooling the vapour. The design has
its greatest advantages with gas-fired boilers, because
less water
 SUSTAINABLE ENERGY REGULATION AND POLICYMAKING TRAINING
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is produced in burning oil or solid fuel, but it is still

practica- ble with oil.

Floor The floor area of buildings is the sum of the area of

area each floor of the building measured to the outer
surface of the outer walls including the area of
lobbies, cellars, elevator shafts and in multi-dwelling
buildings all the common spaces. Areas of
balconies are excluded.
Glazin Glazing is a transparent part of a wall, usually made
g of glass or plastic. Common types of glazing used
in architectural applications include clear and tinted
float glass, tempered glass and laminated glass, as
well as a variety of coated glasses, all of which
can be single, double or even triple- glazed units.

Hydroboil The hydroboil is an instant boiling water heater. It is

s up to three times more energy efficient than the
traditional electric kettle (urn) and just as efficient as a
well-managed kettle. It uses less power on stand-by
than a 60-watt light bulb and when connected to the
cold water and power supply, boiling water is
continuously available, around the clock, at a touch of
the tap. It is available in models delivering from 12
to 300 cups of boiling water at one time. The hydroboil
fully con- tains all the steam within the system,
condensing it, thus pre- heating the incoming cold
Indoor The
[Link] climate is a term that summarizes the
climate thermal envi- ronment, the air quality and the
acoustic and light environ- ment of a building. Indoor
climate regulations and guidelines are usually part of
the building code.
Passive Passive cooling refers to technologies or design
cooling features used to cool houses naturally. In building
design, the two principles of passive cooling are: (a)
to prevent heat from entering a building in the first
place; in domestic buildings this usually means
shading from the sun and (b) to purge unwanted heat
from a building, usually by natural ventilation.
Passive solar Passive solar heating makes use of the building
heating components to collect, store and distribute solar heat
gains to reduce the demand for space heating. It
does not require the use of mechanical equipment
because the heat flow is by natural means
(radiation, convection and conductance) and the
thermal storage is in the structure itself.
Retrofi The modification of a building to incorporate new
t functions not included in the original building design.
 MODULE 18: ENERGY EFFICIENCY IN
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Skyligh A flat or sloped window built into a roof structure for day
t lighting
Solar Solar gain refers to the increase in temperature in a
gains space, object or structure that results from solar
radiation. The amount of solar gain increases with
the strength of the sun, and with the ability of any
intervening material to transmit or resist the radiation.

Useful floor This is the total area of all enclosed spaces measured
area to the inside face of the external walls, including
sloping surfaces such as staircases but excluding
areas that are not enclosed such as open floors,
covered ways and balconies.
Vapour Is any material, usually a plastic or foil sheet, that
retarder resists the passage of both air and moisture through
walls, ceilings and floors. It helps prevent interior
moisture from penetrating into and condensing in
unheated attics, basements, crawlspaces and wall
cavities. This is especially important in well-insulated
homes, where there is often a great difference in
temperature between the air in conditioned space and
the air in uncondi- tioned space. The vapour barrier
is placed in between the insulation and the
conditioned space.
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18.67

Case study
1.
SUSTAINABLE ENERGY
AUTHORITY IN
AUSTRALIA

CONTENTS
1. 18.6
Background 9
2. Energy smart 18.6
appliances 9
3. Energy smart 18.6
housing 9
4. Energy smart 18.7
business 0
5. Energy smart 18.7
government 0
6. Energy smart local 18.7
government 0
 MODULE 18: ENERGY EFFICIENCY IN
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1. BACKGROUND

In order to implement a greenhouse gas reduction strategy, the

Government of Victoria has developed the Sustainable Energy
Authority, an agency established to promote energy efficiency and
support and facilitate the development and use of renewable energy. Its
aim is to achieve environmental and economic benefits for the
Victorian community. These initiatives will also act as a significant stim-
ulus for the development of a sustainable energy industry.

The Sustainable Energy Authority of Victoria (SEAV) has established

six Energy Smart Advisory Centers that provide a range of information
products to assist all sectors of the community to select energy smart
appliances; design and construct energy smart buildings; reduce
energy costs through energy saving practices; and utilize renewable
energy. They also distribute independent advice and infor- mation,
media campaigns, seminars and targeted promotions.

SEAV has introduced a range of “Energy Smart” programmes:

• Energy Smart Appliances (Reach for the Stars programme);
• Energy Smart Housing;
• Energy Smart Business;
• Energy Smart Government;
• Renewable energy.

2. ENERGY SMART APPLIANCES

The Reach for the Stars programme is a joint Commonwealth and
state govern- ment initiative to increase the purchase of energy-
efficient, energy smart appli- ances, which reduce energy bills and help
the environment. In October 2000, the Australian Government
introduced the Energy Label for Appliances initiative. It rates
appliances on a scale of five stars, the more stars the appliance has,
the more environmentally friendly it is.

3. ENERGY SMART HOUSING

The Energy Smart Housing programme aims to facilitate house
energy ratings as the energy efficiency benchmark for housing and
the introduction of energy
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performance standards. Activities include development of the First

Rate house energy rating software, provision of user training and
accreditation of third party rating providers. It includes Energy Smart
Builders and Energy Smart Commercial Buildings, which use Building
Greenhouse Rating scheme.

4. ENERGY SMART BUSINESS

The Energy Smart Business programme helps small, medium and

large enter- prises to adopt and integrate sustainable energy
solutions by providing expert technical advice, best practice
information, free seminars, networking opportuni- ties and case
studies.

5. ENERGY SMART GOVERNMENT

The Energy Smart Government programme provides support services

to govern- ment departments and agencies to undertake energy
management programmes. It includes Energy Smart Local Government,
Energy Smart Schools, Travel to Work programmes. The Energy Smart
Local Government programme is helping Victorian municipalities to
reduce energy consumption, recurrent energy costs and green- house
gas emissions within their own operations. It builds upon the results
of earlier benchmarking studies and provides services to develop
energy manage- ment activities. The Energy Smart Schools
programme establishes partnerships with both state and private
schools to introduce improved energy management in the operation of
school facilities. Travel for Work is a programme designed to help
businesses help themselves reduce the costs and environmental
impacts of work-related travel. It also improves employee health
through promoting walking and cycling.

6. ENERGY SMART LOCAL

GOVERNMENT

SEAV provides lot of help to local authorities to develop sound energy

manage- ment and to achieve reductions in recurrent energy costs.
Firstly it provides help
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in developing an energy management programme. The only effective

way to man- age energy consumption and costs is by assigning
responsibility to an internal “energy manager”. The size and
structure of the energy management team depends on the nature of
the local government. SEAV gives advice on appropri- ate team
structure. SEAV also helps with creation of the energy management
programme especially in defining aims, specific targets, priorities, time
frames, responsibilities and budget allocation of resources.

SEAV also provides a series of workshops called the Municipal

Energy Management Support Programme to train municipal staff. It was
designed to help local governments gain an understanding of basic
energy management princi- ples. They also developed an easy to use
Municipal Energy Management Tool, a software package to assist
councils track and report their energy consumption and greenhouse
performance. The software is capable of delivering comparisons with
other councils because it contains benchmarking data.
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Case study
2.
IMPROVING ENERGY
EFFICIENCY IN EKURHULENI
METROPOLITAN MUNICPAL
(EMM) BUILDINGS, SOUTH
AFRICA

CONTENTS
1. 18.7
Background 5
2. Costs and 18.7
implementation 6
3. 18.7
Results 6
4. Key replication 18.7
aspects 7
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1. BACKGROUND

The project of improving energy efficiency in EMM buildings started in

June 2005 with the call on all suitably-qualified entities to submit
quotations to carry out all the necessary work to achieve the set
objective of saving energy and reducing GHG emissions.

The first proposal included the supply, delivery and installation of

solar water heaters, compressors and 10 KW solar photovoltaic panels.
A preliminary analy- sis of a building’s infrastructure, design and
plumbing systems determined that the installation of solar energy
would add more complexity and time to the work. The retrofitting
project was to be completed before the end of the municipal financial
year.

The second proposal was the use of different mechanisms to reduce

energy con- sumption in lighting and heating/boiling water. The
mechanisms included the replacement of conventional incandescent
lights with compact fluorescent light bulbs (CFLs), the replacement of
cool-beam down lighters with light-emitting diodes (LED) lights, the
replacement of urns and kettles with hydroboils, and the installation of
geyser and lighting timers. These measures were determined to be
more cost effective and could be implemented within the set time
frames and allow significant reductions.

The CFLs are very efficient and inexpensive over their lifetime with
high return on savings after the initial investment. They have been
designed to screw into standard light sockets, which allow them to be
used very easily instead of incan- descent light. LEDs are small, solid
light bulbs, which are extremely energy- efficient. The zip hydroboil is
a wall mounted, instant-boiling water heater, which means that boiling
water is available instantly. It cuts down on water bills, as there is no
evaporation due to escaping steam. It also saves electricity/energy
because it consumes less compared to urns and all the water that is
boiled is used. Geyser timers regulate when the water can be heated
by connecting elec- tricity to the geyser at specified times. This saves
energy because water is not heated throughout the day.

Summary of equipment:
• 23 zip hydroboils;
• 2,003 CFLs;
• 90 LED lights;
• Two lighting timers;
• 15 geyser timers;
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• Replacement of 96, eight-foot double fluorescent light fittings with

open chan- nel, five-foot double fluorescent lights with electronic
ballasts.

2. COSTS AND IMPLEMENTATION

The work started in December 2005. The total cost of the project,
including labour and equipment, was R249,120 ($US 41,063). ICLEI
(Local Governments for Sustainability) secured a grant totaling
R242,761 ($US 40,000) from the United States Agency for International
Development (USAID) to fund this project. The unit price of equipment
as quoted by the service providers is shown in the following section.

3. RESULTS

A small-scale retrofit project, such as the EMM’s buildings project,

results in 328,988 kWh of energy saved in one year, representing
economic savings in the order of $US 50,664 per year (using the value
of $US 0.157/kWh for Ekurhuleni Municipal Buildings). A simple
payback period, taking into account the total investment, will be 0.8
years.

Table 1. Equipment costs per

unit
Equipment Cost in South Africa Rand (ZAR) Cost in
$US*
Hydroboils 4,775.00 786.64
75 W (low wattage) CFLs 15.00 2.47
LED lamps 15.00 2.47
Lights timer 450.00 74.21
Geyser timer 450.00 74.21
5-foot double fluorescent 104.50 17.23
lights
*The exchange rate used is for 02/02/2006: $US 1 =
6.06375 ZAR.
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Table 2. Results on energy

savings
Pre Post
retrofit retrofit Energy Percentag
Equipment energy energy savings e of
use use (kWh/year) savings
(kWh/yea (kWh/year
r) )
Lighting 366,694 91,673 275,020 75
(CFLs and LEDs)
Lighting (5-foot 21,024 18,221 2,803 13
double fluorescent
lights with
electronic ballast)
Water heating 214,072 171,256 42,814 20
(Ums replaced
with zip
hydroboil)
Geyser timer 20,878 12,527 8,351 40
TOTAL 622,668 293,679 328,988 53

4. KEY REPLICATION ASPECTS

The creation of the policy on Energy Efficiency in Council Buildings and

on Council Premises, the State of Energy Report, draft Energy
Efficiency Strategy of Ekurhuleni, and the subsequently implemented
retrofitting project are all part of an easily-replicable strategy that can
be used in other South African cities inter- ested in reducing energy
costs and minimizing the negative environmental impacts of their
municipal operations.
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18.79

Case study
3.
EFFICIENT LIGHTING IN
THE LATVIAN ACADEMY OF
SPORT EDUCATION (LASE),
LATVIA

CONTENTS
1. Background 18.81

2. The energy audit 18.81

3. Financing 18.82

4. Implementation 18.82

5. Results 18.83
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1. BACKGROUND

The project was carried out in the framework of the Efficient Lighting
Initiative (ELI) programme, implemented in Latvia between 2000
and 2003 and was designed to accelerate the penetration of energy-
efficient lighting technologies and to develop and encourage the use
of energy service companies (ESCOs). An energy audit in LASE was
carried out in October 2001 in order to estimate and evaluate the
possibilities for lighting system improvement in one of the sport halls
on the campus.

The existing lighting system in this sport hall consisted of 33

spotlights mainly mounting 1000 W halogen bulbs and an additional
six light points using high- pressure bulbs with capacity of 750 W
each. In the balcony of the sport hall there were 10 separate luminaries,
each with 500 W incandescent bulbs. The lighting system was used
seven months a year for 12-15 hours a day—a total of 4100 hours per
year.

2. THE ENERGY AUDIT

The energy audit pointed out several problems, of which the main
were:

• Eight per cent of the luminaries were not in working condition;

• Lighting quality did not correspond to existing local and European
quality standards;
• The existing control system did not contribute to efficient use of the
lighting system;
• There was no evacuation lighting;
• The shock protection bars over the luminaries reduced the quality of
light;
• Low cleaning and maintenance of the system, causing dust
settlement reduc- ing the quality of light;
• Some of the bulbs were replaced with inappropriate bulbs causing
bad inter- connection and as result some of the wires were burned;
• The yearly electricity consumption in the sport hall was 173,120
kWh/year rep- resenting costs of €8,900/year;
• Total installed capacity of the lighting system was 42.5 kW.
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3. FINANCING

Based on the results of the energy audit, which showed project

feasibility and profitability, the administration of LASE agreed to
refurbish the lighting system and announced a call for tender
addressed to energy service companies. LASE was convinced to have
an ESCO mainly for three reasons: the possibility to attract third-party
financing, the possibility to have the operation and maintenance of
the system included in the contract, and in particular the idea of a
guarantee on energy savings.

The project was fully financed through the ESCO. Total project
costs were
€28,500. The ESCO has taken a loan of €14,250 from a Latvian
commercial bank and the rest was covered from its own resources.

4. IMPLEMENTATION

The ESCO has replaced lamp units in the academy sport hall. The new
units have a greater optical efficiency and the new casings have a much
longer lifespan than their predecessors. They are vibration resistant
and keep out dirt. They are also easier to service, which means lower
maintenance costs. Lighting design and computer simulations work
has been done to calculate the right number and wattage of the units
and to make sure that new units are positioned correctly in terms of
their positions and angle. In particular the project included the follow-
ing parts:
• Replacement of old light points with 66 new luminaries with 250 W
capacity for a total capacity of 16.5 kW;
• Automatic lighting control system;
• Electricity consumption control meter with possibility to read the
data on PC from the technical department of LASE;
• Eight motion sensors and one outside lighting sensor;
• Emergency exit lighting;
• Electrical wires have also been changed, which will ensure the
system runs smoothly for years to come.
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5. RESULTS

The project has achieved its main objective, which was to reduce
energy con- sumption and stop the physical degradation of the
lighting system in the sport hall. By using better technology, the
network’s energy use has been cut by 83,720 kWh per year. The
system now has a much better control system—including the possibility
of having different light levels in the hall in function of different
applications and sports played. The project can be judged a success
and also the objective of using third-party financing was achieved, in
spite of the difficulty in involving ESCOs in small-scale projects.

The table below shows a comparison of the situation before and after
project implementation.

Table 1. Comparison of old and new lighting system in LASE

Old system New system
Operating time 4,064 hours/year 4,064
hours/year
Installed capacity 42.5 kW 16.5 kW
Electricity consumption 173,120 kWh/year 89,400
kWh/year
Energy savings 83,720
kWh/year
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18.85

Case study
4.
PASSIVE DESIGN IN
LOCAL GOVERNMENT
OFFICES
OF IRELAND

CONTENTS
1. 18.8
Summary 7
2. The 18.8
scheme 7
3. 18.8
Technology 7
4. Project 18.8
team 9
5. 18.8
Financing 9
6. Local conditions for renewable 18.8
energy 9
7. Overcoming 18.9
barriers 0
8. Results and 18.9
impacts 1
9. 18.9
Replication 1
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1. SUMMARY

The design of Fingal County Hall, completed in 2000, incorporates

passive design principles including daylighting, passive heating,
passive cooling and natural ventilation as well as ground source heat
pump technology. A building of this type would generally rely on
mechanical ventilation and air conditioning but by using passive
techniques the need for mechanical ventilation and air condition- ing
has been minimized. The capital costs of such services were reduced
from the typical figure of 30 per cent of total building cost to 17 per
cent. In addition, operational costs (lighting, heating and air
conditioning) have been reduced.

The design of the building was taken from the winning entry in a
competition held amongst interested architects and so even before
construction the process of promoting sustainable design had begun.

This is an example of an initiative where a local authority, as building

owner and occupier, has lead by example to promote and develop
passive design in local architectural practices and reduce energy
consumption in its own buildings.

The local authority has also benefited from the public relations which tend
to follow these projects and the work of environmental officers has been
made easier by sus- tainability issues having been placed more visibly

2. THE SCHEME
within the authority’s agenda.

Fingal County Council, as a new local authority anxious to assert a

clean green image, decided from the outset in 1995 to put sustainable
design into practice in its own new headquarters in Swords, Co. Dublin,
Ireland. As an owner-occupier, Fingal County Council was interested in
both the initial cost of the building and its operating costs. Completed
in 2000, the design of the building and its serv- ices employ passive
design principles and ground source heat pump technology.

3. TECHNOLOGY

Incorporating passive design into a building can improve energy

performance in three areas: lighting, cooling and building heating.
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“Day lighting” involves the use of devices and techniques to capture

and direct light into the building, whilst avoiding glare. As electric
lighting in a typical office building can account for up to 20 per cent of
total energy usage, the use of day- light should be carefully considered.
A combination of orientation, shallow build- ing plan, light shelves, the
curved profile of the exposed ceiling slab and recessed roof lights serve
to reflect day light into the building. The office bars maximize south-
facing natural daylight.

Passive cooling involves the use of shading devices, natural ventilation

and ther- mal mass. The shallow plan design lends itself to a natural
ventilation strategy and façade elements provide the means for its
implementation. Both the stair- well at the end of each office bar and
the atrium contain ventilation louvres at the upper level to provide
stack-effect ventilation. The thermal mass of the exposed concrete
ceiling slab is cooled by night ventilation during the summer and
absorbs heat from the room throughout the day. Nighttime pre-
cooling of the building is controlled in office areas by motorized office
windows and the stairwell stack dampers.

Passive heating involves the collection, retention, storage and

distribution of heat, and also avoids overheating. While the south-facing
orientation of the office sections will provide a degree of solar gain
from low winter sunshine, the ther- mal mass of the exposed concrete
slab absorbs peak afternoon casual gains (heat from people, lighting
and office equipment) and retains the heat so reducing the following
morning’s pre-heat.

A heat pump is an environmental energy technology that extracts heat

from low temperature sources (ground, water, air), upgrades it to a
higher temperature and releases it where it is required for space or
water heating. A ground source heat pump delivers heat to the
atrium’s under-floor heating system. For its heat source, water is
drawn from a borehole drilled to a depth of 160 m below ground level.

There are no light switches within the office areas. The lighting above
each desk group is controlled by occupants using their telephone.
Mechanical ventilation was deemed necessary for the toilet areas, the
canteen and lower ground floor. The latter includes a heat recovery
system. The council chamber is the only area requiring mechanical
cooling. To reduce the energy used, a displacement venti- lation
system has been installed to take advantage of free cooling when
avail- able. Heating is provided by high-efficiency gas-fired
condensing boilers with thermostatic radiator valves for local occupant
control.
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4. PROJECT TEAM

Fingal County Council, as owner occupier of their new building, lead the
project with an holistic view of costs since it had an interest in both
the initial cost of the building as well as its operating costs.

The project team needed for the construction of a passively designed

building does not differ dramatically from that of a conventional
building apart from an interest in life-cycle costs on the part of the
owner and architects/engineers who are aware of passive design
principles. Both these essential factors were pres- ent in this project,
with the right architects being located through the innovative means of
using a design competition.

5. FINANCING

By using passive techniques, the costs of mechanical ventilation and

air condi- tioning services were reduced from the typical figure of 30
per cent of total building cost to 17 per cent. In addition, operational
costs have been reduced. Estimates from the UK DETR suggest that a
naturally ventilated building consumes 50 per cent of the energy of an
air-conditioned building.

The cost of constructing a passively designed building of this sort

need not be more than for a conventional construction. Any additional
costs associated with the passive design may be offset by the
reduced costs of mechanical services. Lower operational costs are
another important factor where the building owner and occupier are
the same organization.

6. LOCAL CONDITIONS FOR

RENEWABLE ENERGY

Ireland has a relatively low penetration of renewable energy

technologies. However, driven by national policy, government
buildings are increasingly designed with environmental issues and the
minimization of energy requirements in mind.
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The real driving force behind this initiative was the desire on the part
of Fingal County Council to make a fresh start in a new building and
help develop a green image.

Ireland has a relatively mild, temperate climate with large amounts of

diffuse sun- light year-round, making it well suited to the use of
passive design principles.

7. OVERCOMING BARRIERS

The primary barrier to the increased use of passive design is lack of

awareness and experience which means that it is rarely part of a
design brief. There is also a reluctance to make investments in
unfamiliar technologies.

The fragmented nature of the construction industry also inhibits their

use. The client often knows little about building design and may not
intend to own the building after its construction. The financial benefits
of sustainable design gen- erally accrue to the occupant in terms of
lower operating costs, but it is rarely the client who commissions the
building.

The financial cost and commercial value of employing passive design

is difficult to accurately quantify at design stage and is rarely quantified
by post-occupancy evaluation of building performance. Consequently,
there is a lack of hard data to promote the widespread application of
sustainable design.

These barriers were overcome because the client was a local authority
so that:

• The client team included architects and engineers who were aware of
passive solar design principles;

• The client was also the owner and occupier of the building and
was, there- fore, interested in the total life-cycle costs of the
building;

• Government strategy was implemented which seeks to promote

sustainable design, including leading by example.

By placing sustainable design as a central part of the original design

brief, the local authority drove the sustainable design agenda. By
using an architectural competition as the means of selecting the
architects, the local authority was able to select architects with
experience and interest in this area.
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8. RESULTS AND IMPACTS

Mechanical ventilation and air conditioning tend to be electrically-

driven and operational throughout the building’s occupied life, which
makes them both expensive to operate and, depending on the
combined efficiency of national power generation plant, a significant
source of greenhouse gas emissions. Removing them from the
building design and replacing them with passive designs will have a
significant impact over the life of the building. For instance, it is esti-
mated that air-conditioned office buildings consume approximately 250
kWh/m2 per annum, while naturally ventilated office buildings
consume 120 kWh/m2 per annum. Similarly, with day lighting reducing
the need for artificial lighting, the life-cycle impact will be substantial.

Occupants’ response to their environment is influenced by the quality of

the envi- ronment, the perceived level of individual control, the quality of
the management of services and response to complaints, and the
desire to be close to a window. Buildings that make good use of
natural light and ventilation, in which occupants have the opportunity to
make local adjustments, often prove to be more accept- able work
environments. This building provides occupants with local control of
lighting, heating and natural ventilation, and also satisfies the desire to
be close to a window.

9. REPLICATION

This building illustrates that comfortable conditions can be achieved

within high density, heavily glazed office spaces in the Irish climate
without recourse to mechanical ventilation or air conditioning. The well-
publicized energy-saving fea- tures of the building have served to
raise awareness amongst building design- ers and procurers. The
local authority planners who occupy the building are intimately
familiar with the features and their effectiveness and are in a position
to influence the design of other buildings.1

1
For further information contact: Stephen Dunn, ([Link]@[Link]),
Building Services Manager, Fingal County Hall, Main Street, Swords, Fingal, Co. Dublin,
Republic of Ireland, +353 1 890 5000 or Chris Croly (CM-Croly@[Link]), Building Design
Partnership (BDP), Blackhall Green, Dublin 7, Republic of Ireland, +353 1 474 0600.
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SUSTAINABLE ENERGY REGULATION AND POLICYMAKING

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Energy Efficiency

Module 18:
ENERGY EFFICIENCY IN BUILDINGS

Module 18

SUSTAINABLE ENERGY REGULATION AND POLICYMAKING

FOR AFRICA

Module overview
• Overview of energy efficiency in buildings and its benefits
• How to approach EE in buildings
• Different opportunities and measures for improving
EE of buildings
• Key aspects of suitable policies to support EE in Buildings
• Financing options and mechanisms
• Discussion on the process of developing
and implementing policies on EE in buildings and
summary of some policy tools
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Module aims
• Introduce the concept and benefits of energy
efficiency (EE) in buildings
• Give an overview of the methodology to determine the
EE of buildings
• Present opportunities and measures for reducing
energy use in buildings
• Describe mechanisms for financing EE measures
• Summarize legislative and policy tools successful
in promoting EE in buildings
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SUSTAINABLE ENERGY REGULATION AND POLICYMAKING

FOR AFRICA

Module learning outcomes

• To appreciate the significance and benefits of
EE in buildings
• To have a general understanding of the methodology
used to determine the EE of buildings and an overview of
different measures for improving energy use in buildings
• To have an overview of the different mechanisms
for financing EE measures
• To have conceptualized an approach to setting out
and implementing policy to support EE in buildings
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SUSTAINABLE ENERGY REGULATION AND POLICYMAKING

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Why Buildings?
• Globally the building sector accounts for more
electricity use than any other sector: 42%;
• We spend more than 90% of our time in buildings;
• Africa’s rate of urbanization is 3.5%, the highest in
the world;
• Currently 40 cities in Africa with populations of more
than a million;
• It is expected that by 2015 seventy African cities will
have populations of one million or more.
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What is the Energy Efficiency (EE)

of a Building?
The extent to which the energy consumption per
m2 of floor area of the building measures up to
established energy consumption benchmarks for
that particular type of building under defined
climatic conditions.

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Why is EE in Buildings Important for

Governments?
• Where the demand for energy services is growing rapidly
– Capital costs of efficiency are lower than comparable investments
in increased supply
– No additional operating costs of efficiency measures compared to
substantial operating costs for supply-side options
– Energy efficiency investments have shorter lead times than energy
supply investments
– By setting energy efficiency targets for buildings, governments
share the burden and cost of ensuring the security of
energy supply

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SUSTAINABLE ENERGY REGULATION AND POLICYMAKING

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Benefits from EE in Buildings

• Energy efficiency measures are meant to reduce
the amount of energy consumed while maintaining
or improving the level of comfort in the building;
• Among the benefits arising from energy
efficiency investments in buildings are:
– Reducing energy use for space heating/cooling and water heating;
– Reduced electricity use for lighting, office machinery and domestic
appliance’;
– Lower maintenance requirements;
– Enhanced property value.

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Energy in Buildings
Natural Energy Gains
Renewable
Energy
Building Net
Building Gross Energy Use
Energy Needs Delivered
Energy

Internal Heat Gains

Exported
System Losses Energy

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Energy in Buildings (2)

• Natural Energy Gains: Passive solar heating, passive cooling,
natural ventilation flow, and daylight.
• Internal Heat Gain: Thermal energy from people, lighting and
appliances that give off heat to the indoor environment.
• Delivered Energy: Amount of energy supplied to meet the
buildings net energy demand. Could be supplemented by
on- site renewable energy
• Exported Energy: Fraction of delivered energy that, is sold to
external user
• System Losses: System losses result from the inefficiencies in
transporting and converting the delivered energy
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Energy in Buildings (3)

• The amount of energy a building will need to
purchase in order to attain the required indoor climate is
dependant on:
– The properties of the building;
– How efficiently the delivered energy is used to meet the buildings
net energy demand;
– How efficiently energy is used by people in the building;
– The percentage of the buildings energy requirement that is
supplied by renewable energy.

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SUSTAINABLE ENERGY REGULATION AND POLICYMAKING

FOR AFRICA

Determining Energy Consumption

of Buildings
• The Energy performance of a building is based on
the building properties and the energy required to attain
the indoor climate standard. It is a factor of the:
– Intrinsic energy performance - The delivered energy needed
based on the use of the building, the indoor
environment, the external climate, and the
buildings properties.
– Actual energy performance - The energy used over the last year,
obtained from energy audits, metering and sub-metering.

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Building Energy Consumption

Benchmarks
• Benchmarks are representative values for
common building types against which a
building’s actual performance can be compared;
• The main purposes of benchmarks are:
– To identify if a buildings energy performance is good, average or
poor with respect to other buildings of its type;
– To identify potential savings, shown by the variance between the
actual data and the benchmarks.
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Questions/Activities

What are energy efficiency

benchmarks and what is their role
when determining the energy efficiency
of a building?

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Certifying Energy Efficiency

• An Energy Efficiency Certificate is a summary
of a building’s energy audit. It is meant to give
information on the building’s energy consumption and its
energy efficiency rating.
• The purpose of Energy Efficiency Certificates is to:
– Inform tenants and prospective buyers on the expected running
costs;
– Create public awareness;
– Acts as a prerequisite of measures to improve its energy efficiency;
– To effect incentives, penalties or legal proceedings

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Certifying Energy Efficiency (2)

• Buildings are given two ratings based on the intrinsic
and actual energy performance:
– Asset Rating: A rating of the standard of the building fabric and
building services equipment and is based on theoretical
values.
– Operational Rating. This will be influenced by the quality of the
building (as measured by the Asset Rating), but also by the way the
building is maintained and operated. It is based on the
normalized actual metered energy consumption.

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EE Measures for Buildings

• Approaches through which the energy consumption
of a building can reduced. They can be categorized into:
– Reducing heating demand
– Reducing cooling demand
– Reducing the energy requirements for ventilation
– Reducing energy use for lighting
– Reducing energy used for heating water
– Reducing electricity consumption of office equipment and
Appliances
– Good housekeeping and people solutions

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Reducing Heating Demand

• Heating demand can be reduced by:
– Limiting the exposed surface area of the buildings
– Improving the insulation of the building fabric
– Reducing ventilation losses
– By selecting efficient heating systems with effective controls.

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Reducing Cooling Demand

• Energy use in typical air-conditioned office buildings
is approximately double that of naturally ventilated office
buildings. The need for air-conditioning or the size of the
systems installed can be reduced by:
– Controlling solar gains through glazing;
– Reducing internal heat gains;
– Making use of thermal mass and night ventilation to reduce peak
temperatures;
– By providing effective natural ventilation;
– Reducing lighting loads and installing effective lighting controls.
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Reducing the Energy Requirements

for Ventilation
• The energy required for ventilation can be minimized by:
– A building design that maximizes natural ventilation;
– Effective window design;
– Use of mixed mode ventilation;
– Using efficient mechanical ventilation systems.

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Reducing the Energy Requirements

for Ventilation (2)

The Stack Effect

Cross Ventilation

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Reducing Energy Use for Lighting

• This can be accomplished through:
– Making maximum use of daylight while avoiding excessive solar
heat gain
– Using task lighting to avoid excessive background luminance levels
– Installing energy efficient luminaires with a high light output to
energy ratio
– By providing effective controls which prevent lights being left on
unnecessarily

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Reducing Energy Use for Lighting (2)

• Natural light provides healthier
working conditions than
artificial light—and it is
free;
• Large modern buildings often have
many areas being starved of
natural light;
• Therefore the challenge is to
channel natural light to
areas without
windows;
• Sunpipes can be used to introduce
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daylight to windowless areas.

SUSTAINABLE ENERGY REGULATION AND POLICYMAKING

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Reducing Energy Use for Heating

Water
• Installing time controls and setting them to reflect the hours of
hot water requirement;
• Setting sanitary hot water thermostats to the appropriate
temperature;
• Switching off electric heating elements (immersion) when hot
water from the boiler is available;
• Switching off any associated pumps when hot water is not
required
• Replacing damaged or missing insulation from hot water pipe
work and cylinders;
• Identifying a suitable hot water system.
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Reducing Consumption of
Office Equipment and
Appliances
• Office equipment currently consumes 15% of the
total electricity used in offices;
• This is expected to rise to 30% by 2020;
• There are also associated costs of increasing
cooling and ventilation requirements to overcome the
additional heat that office equipment produces.
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Reducing Consumption of
Office Equipment and
Appliances (2)
• Typical measures to reduce consumption which
also apply to household appliances are:
– Switching off or enabling power down mode reduces the energy
consumption and heat produced by equipment.
– Upgrading existing equipment. Some energy efficient appliances
may cost more but they will recoup savings over their
lifetime.
– Matching the equipment to the task. Bear in mind current and
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predicted requirements and purchase equipment that
meet these.
– Taking advantage of energy labeling schemes
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Good Housekeeping and People

Solutions
• The level of achievable energy savings from office equipment is
down to the everyday management by staff. A simple energy
conservation program for an organization would consider:
– Setting up an energy policy for the organization;
– Appointing an Energy Champion;
– Involving staff;
– Setting targets;
– Using notices and reminders;
– Conducting walk-rounds;
– Taking meter readings.
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Questions/Activities (2)

From the measures mentioned, which are:

1. The easiest to implement in your country.
2. The ones with the highest potential for savings.

Discuss
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Financing EE in Buildings
• Financial appraisal involves finding and evaluating the
best projects to invest in whatever they are and wherever
they arise. It gives energy savings the priority they merit
when compared with other aspects of cost reduction or
business expansion.

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Financing EE in Buildings (2)

The seven key steps in financial appraisal of energy efficiency
investment in buildings are:
• Locating the buildings which have the potential;
• Identifying the areas where savings can be made ;
• Identifying the measures required to release these savings;
• Establishing the costs and the savings for each measure and calculating
the key financial indicators;
• Optimizing the financial return measured by these indicators;
• Establishing how much investment capital is available and identifying
new sources of capital;
• Deciding which projects make best use of the organization’s available
capital.
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Financing EE in Buildings (3)

Options and mechanisms include:
• Internal funds;
• Debt financing;
• Lease or lease-purchase agreements;
• Energy performance contracts;
• Utility incentives (equipment rebates, design
assistance, and low-interest loans)
• Local authority and national assistance
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SUSTAINABLE ENERGY REGULATION AND POLICYMAKING

FOR AFRICA

Questions/Activities (3)

1. List and describe 4 options/mechanisms for

financing energy efficiency in buildings.
2. Outline how at least 2 of the financing
options/ mechanisms discussed could be applied
in your country and highlight how they would be
effected and which organizations would be involved.

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The Formulation of a Policy for EE

in Buildings
• Policy is formulated on needs basis and therefore
policy- makers require a clear picture of:
– The contribution of buildings to the countries total energy
consumption;
– The future impact of urbanization and increase in the number of
new buildings vis-à-vis energy demand;
– The potential for energy savings from large-scale implementation
of energy efficiency measures in existing and future
buildings.
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SUSTAINABLE ENERGY REGULATION AND POLICYMAKING

FOR AFRICA

The Formulation of a Policy for EE

in Buildings (2)
• Policy formulation phase should involve key
stakeholders from architectural associations, local
authorities, energy consultants, developers, electricity
supply and distribution companies and other energy
service providers.

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The Formulation of a Policy for EE

in Buildings (3)
• The policy should:
– Outline the need for and benefits of EE in buildings;
– Estimate potential savings both in terms of energy use and power
demand;
– Set achievable targets and timelines;
– Outline an approach to achieve the targets and monitor them;
– Consider the requirements for technical and informational support
needed by building owners, building energy managers,
developers, architects and engineers;
– Consider the financial support instruments for undertaking energy
efficiency measures.
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SUSTAINABLE ENERGY REGULATION AND POLICYMAKING

FOR AFRICA

Implementing Policies for EE

in Buildings
• To implement a policy certain bodies need to be set
up. These would consist of:
– An agency to develop and recommend a framework for the policy;
– A regulator to facilitate and enforce the policy;
– An adjudicating body to meet out the penalties;
– An appellate tribunal to hear appeals against the orders of the
adjudicating body.

• These bodies are set up by an act of the parliament

which defines their functions and powers.
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SUSTAINABLE ENERGY REGULATION AND POLICYMAKING

FOR AFRICA

Questions/Activities (4)
1. List 5 functions of an Energy Efficiency Agency
2. What would be the most suitable model in your
country with regard to the bodies required to
implement a policy for EE in buildings?
3. What would their functions be?
4. How would you set up an EE fund in your country?
Where would the funds be sourced from and what
criteria would you use to allocate the funds?
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SUSTAINABLE ENERGY REGULATION AND POLICYMAKING

FOR AFRICA

Policy Tools to Promote EE in

Buildings
• The most effective programmes are designed:
– To ensure that a particular target level of energy efficiency
improvement is realized;
– To assure that the market is prepared continually to introduce
better technologies for energy efficiency.
• This process of continuous improvement in
energy efficiency should be anticipated in the
developmental process for energy efficiency codes.
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Policy Tools to Promote EE in

Buildings (2)
• Legislative and policy options that have had some
record of success in promoting energy efficiency in
buildings include:
– Codes and standards for new construction and performance-based
economic incentives to go beyond the standards.
– Long-term incentives with ambitious energy efficiency targets;
– Normative labels to distinguish the most energy efficient buildings
and equipment:
– Informative labels that provide the information necessary to
measure energy efficiency and annual energy costs for
operation.
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SUSTAINABLE ENERGY REGULATION AND POLICYMAKING

FOR AFRICA

Policy Tools to Promote EE in

Buildings (3)
• Legislative and policy options that have had some
record of success in promoting energy efficiency in
buildings include:
– Education and outreach to promote market acceptance
of energy efficiency technologies and energy efficient
designs, most notably efficiency demonstration centers;
– Government-funded research and development on
energy efficiency in buildings.
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SUSTAINABLE ENERGY REGULATION AND POLICYMAKING

FOR AFRICA

Questions/Activities (5)

What incentives would you recommend to

facilitate Energy Efficiency measures in
buildings in your country and how would you
implement them?

Discuss
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SUSTAINABLE ENERGY REGULATION AND POLICYMAKING

FOR AFRICA

The Potential of EE Savings

• Energy Efficiency in buildings has considerable potential for energy
savings as45000
evidenced
GWh by
15% of Annual theUseCalifornia
Electricity in California in 2003 experience
40000

35000

30000

25000

20000

15000

10000

5000

0
1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

Appliance Standards Building Standards Efficiency Programs

Savings achieved within California’s existing building stock.

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The Potential of EE Savings (2)

• California has held per capita electricity sales steady for the past 30
years while the rest of the US experienced a 50% growth and
slower economic growth.
Per Capita Electricity Sales
14,000
United States
12,000 California

10,000

8,000
KWh

6,000

4,000

2,000

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SUSTAINABLE ENERGY REGULATION AND POLICYMAKING

FOR AFRICA

CONCLUSIONS
• Technological improvements in buildings design
and appliances offer new opportunities for energy savings;
• Many of these technologies are yet to be adapted in
Africa and other developing countries, suggesting a
huge potential for savings;
• Resistance to change and the cost of
implementing energy savings means that unless a policy
and regulatory framework is set up, it is unlikely there will
be any change.
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