Transcript Slide 1 - Housing Europe

Financing energy
efficiency in buildings
Roman Doubrava
Directorate-General for Energy
Energy Efficiency
Energy
1900
Mind the gap!
1842 Mtoe
1850
business
as usual
Primary energy consumption* (Mtoe)
1800
1750
1700
1678 Mtoe
1650
status
today
GAP
1600
1550
Projections from 2007
1474 Mtoe
1500
Projections from 2009
-20%
objective
20% Energy saving objective
1450
1400
2005
2015
2010
* Gross inland consumption minus non-energy uses
Energy
2020
Benefits of meeting the 20%
efficiency target are enormous
368
Mtoe
Primary
energy
savings
in 2020
193
billion
EUR
2.6
billion
=
Barrels of
oil we do
not
have to
import
per year
1 000 fewer
coal power
plants
=
Money saved
at
conservative
73
EUR/barrel
per year
=
or
GDP of Portugal
in current prices
(2010)
3
Energy
Costs of not filling in the gap are
too high
• Imports of 1,4 billion barrels of oil result in EUR
107 billion being 'exported'
• Construction of 550 coal power plants and
accompanying infrastructure
• EU GDP will lose the net positive impact of energy
efficiency of at least EUR 34 billion
• 400 000 jobs will not be created
4
Energy
Why focus on buildings? •
EU 27
total
EUBuildings
sector
•
40%
Energy
use
36%
CO2emmissions
Buildings are responsible for about:
– 40% of EU final energy use
– 36% CO2 emissions
– 210 M households, conditioned
floor area: 15000km2 – residential,
6000km2 - commercial
– Construction sector: 9% of EU
GDP, 8% of EU-workforce,
€ 2 trillion annual turnover - hardest
hit by the crisis
Benefits:
– Considerable savings possibilities
– Positive employment impact: up to
2 million jobs created/retained
– Lower energy bills + better living
conditions
– Investments in energy efficiency
trigger economic activity
5
Source: IA recast EPBD, SEC(2008) 2864, Annex 5; IA for
Energy Ecodesign/Energy Labeling; Ecorys 2010; Eurostat
What is the ‘investment’ need?
• Energy savings potential across sectors requires
investment of around 850 billion € (2011-2020)
• Around 85 billion € per year
• Buildings take the lion’s share of around 60 billion
€ per year
6
Energy
What to do (1) – getting the
regulatory framework right
Energy performance of buildings Directive
• Minimum energy performance requirements
• Nearly zero-energy buildings
• Certification and inspections
Eco-design and Energy Labelling Directives
• Minimum performance requirements
• Labelling
Energy Services and Cogeneration Directives
7
Energy
Energy Efficiency Directive
•
•
•
•
•
•
•
Public sector to lead the market transformation (renovation
target, energy efficiency criteria in public purchase)
Energy efficiency obligation schemes or alternative
approaches to be set by MS to ensure measures are realised
Encouragement of energy performance contracting
Accurate and frequent individual metering and billing to
inform consumers
Mandatory energy audits for large companies and promotion
of audits for households and SMEs
Heat and cooling demand plans
Strong obligations for uptake of cogeneration and
promotion of district heating and cooling
8
Energy
EED – direct and avoided costs
400
Costs for investment in energy efficiency
Costs for investment in power and steam generation and distribution
Energy expenditure
Total energy system costs for stationary uses
Billion € '08
200
0
-200
-400
-600
2011-2015
2016-2020
Energy
2021-2025
2026-2030
10
Energy
What to do (2) – Getting the
financial framework right
What is currently available at EU level?
• Cohesion policy funds (2007-2013):
• 4,6 billion € for energy efficiency
• 4% of ERDF can be re-allocated to housing
• Intelligent Energy Europe Programme (2007-2013):
• 735 million € for ‘soft’ energy efficiency/renewables projects
• ELENA Facility:
• 97 million € for technical assistance to mobilise investments
• European Energy Efficiency Fund (EEE-F):
• 265 million € for investments into mature, bankable
efficiency/renewables projects
• 20 million € for technical assistance
Energy
11
Experience with financial instruments and
Public Private Partnerships is growing
• 11 member states have
used part of the ERDF
allocation for setting
up JESSICA urban
development funds
and holding funds
• 297 specific funds
created by Member
states under the
JEREMIE initiative
focusing on SMEs
Energy
Note: EBRD provided financing only in EU-9(BG, EE, HU, LT, LV, PL, RO,
SK, SI)
What will be available at EU level?
• Next Multi-Annual Financial Framework (20142020) proposals:
• Cohesion funding to allocate some €17 billion to
energy efficiency and renewable energy (doubling
current allocations)
• Horizon 2020: €6.5 billion is to be allocated to
research and innovation in "Secure, clean and
efficient energy", including cca €1 billion for the
IEE successor
Energy
Funding is not the main problem,
the question is how we use it
• € 4.6 billion has so far been allocated to energy
efficiency (52% of total budget appropriations)
• But significant scope for better uptake
Energy
And can even return money to the
state
• KfW “energy efficient building and renovation”
programmes in Germany
• Every Euro invested returned 2-5 Euros to state
coffers, mainly through job creation!
Year 2008
2009
2010
Credit volume (mEUR)
5.583
9.015
8.860
Promoted investment (mEUR)
12.181
18.597
21.535
Promoted jobs
191.000
298.000
345.000
Source: Impact on public budgets of KfW promotional programmes in the field of "energy-efficient
building and rehabilitation", Research Centre Jülich, October 2011
Energy
And can even return money to the
state
• SEAI Home Energy Saving (HES) scheme
• Over 100.000 homes since 2009
• Net benefit for society between €106 million to
€518 million (depending on CO2 and energy
prices)
• Support for 3000 full-time jobs in 2010
• Household savings average €450 per year
• Every Euro spent delivers a net benefit of 5 Euro
to society!
Source: Economic analysis of residential and Small-business energy efficiency improvements,
Sustainable Energy Authority of Ireland, September 2011
Energy
Energy saving obligations
• Currently existing in 5 Member States: UK, FR, IT,
DK, BE/Flanders
• Mobilise around €2 billion per year to deliver
energy savings
• Representing a significant percentage of the
target set under the Energy Services Directive:
 More than 50% in the case of Flanders
 41% in the UK
 more than 70% in Italy (combined with subsidies)
Energy
Energy saving obligations
• Cost of delivered savings significantly lower than
price of energy
• If energy savings obligations are introduced in the
EU in line with the provisions of the Energy
Efficiency Directive they will bring between
around €18 billion additional investment in energy
efficiency per year
Energy
Energy performance contracting
• Berlin has made use of energy performance
contracting since 1996
• Over 1300 public buildings have been upgraded
• Cost savings of about 10,5 million € - i.e. a
quarter of the energy cost of the buildings
involved
Energy
Focus on building renovation
• In France the reallocation of 4% ERDF funding to
social housing will lead to:
• EUR 320 million ERDF finance triggering
investment of up to EUR 2,2 billion, affecting 110
400 households
• Creation of 31 000 jobs
• 40% average decrease of heating costs of affected
households (EUR 30 – 90/month)
• Annual increase of purchasing power of EUR 360 –
1000 per household
Energy
Conclusions
• Energy efficiency is not a cost weighing on
national budgets but a huge investment
opportunity returning money to state coffers
• EU-level funding will continue to be available but
stronger involvement of private capital is needed
• A strong regulatory framework is imperative
Energy