Discussione:3. Overview of the Starting Point of the Proposed Action

Common important user needs and market barriers

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Current situation in the target countries/regions

Residential & commercial buildings account for 40 % of EU’s final energy use. The energy consumption is mostly in buildings where energy is predominantly used for buildings' space and water heating, cooling and cooking (i.e. 78% of total needs for service sector and 88% for residential in 2007). The rest of the energy consumption is to be attributed to the use of electric appliances and lighting.

Substantial progress has been achieved in these sectors bymoving forward with the implementation of key legislation, notably the Energy Performance of Buildings Directive (EPBD) and the Energy Services Directive (ESD). The Commission supported this process by creating Concerted Actions, BUILD UP initative and other fora (e.g. Bucharest Forum) helping Member States with their national implementation.

With the New Buildings Directive (recast EPBD)(2010) the EU suggested an holistic approach as regards energy use in new and existing buildings. All new buildings in the EU by 31 December 2020 will have to be nearly zero energy buildings (before that: cost optimal requirements) but public authorities have to be nearly zero by 31 December 2018. For existing buildings member state shall take measures towards nearly zero energy buildings.

Nevertheless the business-as-usual scenario projects that the final energy use in the residential sector will increase with 4.4% over 2008-2020 period and in the tertiary sector with 1%. The potential for cost-effective energy savings for the two sectors is currently estimated at 21%. Some of it (or 13.4%) will possibly be realized with the current policies but still the two sectors offer the biggest savings potential from the final energy sectors. In addition, most of energy efficiency and savings technologies are cost-effective and on the market but further innovation is still possible. Therefore, is an obvious first step for reaching the EU’s energy but also climate policy objectives. (European Commission, Commission staff working document Impact assessment, Energy Efficiency Plan 2011 , Brussels, 8.3.2011, SEC(2011) 277 final)

The EU Buildings sector is key to reach 20/20/20 targets and it is the sector where progress towards sustainability is cheapest to reach.

Energy efficiency strategies can reduce a building’s energy consumption by 50% to 70% and renewable energy technologies must be used to reach the goal of a net-zero energy building.

Figures set that annual construction rate of new buildings is in the order of 1 % of the building stock, demolition rate 0,5 %, and retrofit 1,8 % . Business as usual won’t be good enough to reach the EU’s climate & energy targets. The EU is not on track to fully realize these cost-effective energy savings.

A combined approach on both the demand and the supply side is needed on the road to “Nearly-zero energy buildings” that integrated different approaches (from legislation to technical solution to qualification of workforce to public awareness) (Christine Lins Secretary General of EREC, Key-note perspectives & the Intelligent Energy – European experience,IEE European Info Day Brussels, 18th January 2011)

Many innovative solutions are directed towards new buildings but only a few are optimised for the existing stock. Moreover, buildings, especially residential buildings, are never considered as a whole. Therefore, there are a lot of components (windows, insulation ma- terials, boilers, lighting, etc.) which are installed, serviced and maintained by different companies without a holistic approach to the overall building operation. The result is a lack of energy efficiency and in some cases functionality once the buildings are refurbished. R&D has to propose integrated solutions taking into account the various constraints of existing buildings. It is assumed that the developments of many innovative solutions (systems composed of insulation and thermal storage materials, renewables, etc.) are relevant for the countries all over Europe. (European Commission, Directorate-General for Research, Industrial Technologies Unit G2 'New generation of products', Energy-efficient buildings PPP Multi-annual roadmap and longer term strategy, Luxembourg, Publication Office of European Union, 2010)

Buildings have a long technical lifetime on the order of 100 years. Also, buildings in general have a 40 year renovation cycle, i.e. buildings on average are refurbished every 40 years. Energy refurbishment cycles on the other hand are much lower at present with around 1.4% of all buildings energetically refurbished every year. This means that it takes around 70 years to improve the energy consumption of all buildings. In order to achieve our long-term climate protection goals, this is much too slow. Building efficiency expert Paul Waide explains in his detailed contribution in the Annex: “If only 1.4% of the building stock is renovated each year and the efficiency improvements from each renovation are modest the building stock would use 86% of the 2010 energy use by 2050. If the renovation rate is increased to 3% the consumption in 2050 would be 62% of 2010 levels but would be rising again. However, if the renovation rate is increased to 3% per annum and current best practice renovation is applied the building stock would consume just 28% of the 2010 level. Were such a rate and depth of renovation to be coupled with a modest decarbonisation of the energy supply the overall emissions associated with the building sector would be reduced by over 80%. Thus the policy message is clear: the rate and depth of energy performance renovations of existing buildings is the largest single factor which will determine whether the EU reaches, or misses, its 2050 climate targets.” Refurbishment of existing buildings needs to be in the central focus of political action as on the one hand the requirements set in the EPBD for new construction are sufficiently strict, and as on the other hand existing buildings represent by far the largest share of the energy savings potential. In this regard, innovative solutions proposed by ESCOs such as the comprehensive refurbishment of buildings through an Energy Performance Contract or Integrated Energy Contracting appear to be effective and very cost efficient. (Directorate general for Internal policies Policy department A: Economic and scientific policy industry, research and energy, EU Energy Efficiency Policy – Achievements and Outlook, Brussels, European Parliament, 2010.)

In Europe by far the majority of energy used in buildings is consumed in the existing building stock. New buildings represent, on average, an annual increase of just 1% of the building stock and that the renovation cycle for existing buildings is not less than 25 years. Both new and existing buildings of all sizes. Existing buildings are critical for Europe if it is to achieve the ambitious target of reducing CO 2 emissions by 60–80% in 2050 compared to 1990 levels (source: OPEN LETTER TO THE 27 EU ENERGY AND ENVIRONMENT MINISTERS, Brussels, 02 November 2009, Architects' Council of Europe (ACE), COGEN Europe, European Alliance of Companies for Energy Efficiency in Buildings (EuroAce), European Council for an Energy Efficient Economy (ECEEE), European Insulation Manufacturers Association (Eurima), International Union of Tenants (IUT) and the Royal Institution of Chartered Surveyors (RICS))

Portugal

PORTUGAL: Owners figures were 74,6% in Portugal where 35% of building are aged before 1970 "Eurostat Housing Statistics (2009)". http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Housing_statistics.

Wuppertal Institute GmbH, Ecofys Germany GmbH, Energy Efficiency Watch - Appendix of the EEW Final Report on the In-depth Evaluation of National Energy Efficiency Action Plans, Wuppertal, Cologne, Berlin, July 2009:

certificates issued by qualified experts. An advertising campaign has been developed for the launch of the SCE. The campaign slogan ‘Let’s save energy to save Portugal’ is being promoted via television channels, the press and the Internet. The calculation procedures are defined in the building regulations for residential buildings and in the HVAC regulations for non-residential buildings. A software tool, produced by INETI for SCE for both residential and small nonresidential buildings became available in September 2006. For residential buildings the calculations may be performed manually, on a spreadsheet, or using any other commercial software package that became available in the meantime, offering enhanced interfaces and databases of materials, construction details, etc. For large non-residential buildings, commercial software tools complying with accuracy requirements based on ASHRAE standard 140-2004 must be used to calculate energy consumption, using detailed hourly simulations on a yearly basis. National databases of hourly annual typical climates were prepared and published for every municipality in Portugal. Their use is mandatory to provide proof of compliance. The ‘National System for Energy and Indoor Air Quality Certification of Buildings’ (SCE) came into force on 1 July 2007. It aims to achieve two primary objectives: ADENE (www.adene.pt), the Portuguese Energy Agency, is the managing body for this process, under the shared supervision of the Directorate- General of Energy and Geology and the Portuguese Environmental Agency. The new requirements are mandatory for building permits requested after 3 July 2006. The type and level of requirement depend on the type of building (residential, office buildings, schools, etc.). The threshold level that triggers an energy audit should be regularly reduced over the years. The certificate is the most visible aspect of the SCE: it classifies the buildings on an efficiency scale ranging from A+ (high efficiency) to G (poor efficiency). It is used for residential and non-residential buildings. To issue certificates, qualified experts must access and use a web based central registration system. This regularly updated national database will be used to monitor progress basic statistics and studies for the future. The timetable for the implementation of the SCE in various types of buildings is divided into three phases: • In the first phase, certification is only required for all new residential and nonresidential buildings with a floor area larger than 1000m2 and requesting a construction permit as of 1 of July 2007. • The second phase includes all new buildings, regardless of their floor area, when a building permit is requested as of 1 July 2008. • Full implementation is as of January 2009, when all buildings will be included in the certification system: new buildings, major renovations of existing buildings, public buildings and all buildings when sold or rented. Certification of new buildings started in July 2007. About 1500 certificates had already been issued by qualified experts by the end of January 2008. DENE co-ordinates the training of qualified experts and is responsible for the Energy Certification module in all courses. These courses are available in the three areas covered by the system and award different qualifications: • Residential and small nonresidential: RCCTE • Large non-residential/ Energy: RSECE-E

RICS research – Energy factsheet –feb 08

Portugal has seen a significant increase in final energy consumption (53% since 1990) Energy and CO2 intensity are above the EU average, although energy consumptionand CO2 per capita are below the EU average Portugal collaborates with Spain in a pan-Iberian market for electricity, an arrangement known as ‘Mibel’ There is a great deal of debate about how the reliance on importation of fossil fuels can be reduced by increasing the use of renewable energy such as biomass, solar and wind power. Final energy consumption in Portugal has increased very significantly between 1990 and 2005 (by just over 50%) Renewable and combustible energy is a significant contributor to supply of energy providing 1321 Ktoe to industry and 1069 Ktoe to residential

In 2001, the public budget for R&D in energy was €1.08 million, of which 64% was used for R&D on renewable energy, 24% on fossil fuels and 12% on energy transmission grids. EU funding accounts for about two-thirds of the national energy R&D budget. the government launched a new energy policy instrument – the E4 Programme (Energy Efficiency and Domestic Energies), consisting of a set of multiple, diversified measures aimed at promoting a consistent, integrated approach to energy supply and demand. By promoting energy efficiency and the use of domestic energy sources, the programme seeks to upgrade the competitiveness of the Portuguese economy and to modernize the country’s social fabric, while simultaneously preserving the environment by reducing gas emissions

The renewable energy source (RES-E) target to be achieved by Portugal in 2010 is 39% of gross electricity consumption.

OECD/IEA, Energy Performance Certification of Buildings, A policy tool to improve energy efficiency, Paris, France, 2010 IEA POLICY PATHWAY ENERGY PERFORMANCE CERTIFICATION OF BUILDINGS International Energy Agency IEA Publications, 9, rue de la Fédération, 75739 Paris Cedex 15 Printed in France by Corlet, November 2010

The key objective for implementation was to save energy while ensuring comfortable indoor conditions A committee was set up to develop a programme for implementation involving different entities with expertise in the area, ranging from research institutes and professional associations to universities and other public institutes such asThe Counsel of the Public Works and Transports (CSOP), the Architects Association (OA), the Engineers Association (OE) and the National Association of Engineering Technicians (ANET).The management of the SCE was assigned to the Portuguese Energy Agency (ADENE), and is supervised by the Directorate General of Energy and Geology (DGEG), and the Portuguese Agency of Environment. This is documented in Decree nº 78/2006, of 4 April, Chapter II –

The implementation of the European EPBD in Portugal was divided into three phases from 2006 to January 2009 when full implementation was in place, to allow for a smoother adaptation of the different market agents and authorities to the new framework. One of the national issues which influenced the development and timescale for implementation was the training of sufficient assessors to ensure that the number of professionals in the field could provide the necessary response to the market.

A research project on the Portuguese implementation of certification called “Energy Efficiency in Buildings Programme” was supported by the government. A website with results is still available at www.p3e-portugal.com showing the calculation methodologies. ADENE developed an integrated web-based system,maintained on their website, which allows easy access for building energy assessors, owners andusers. It contains the following: -Information for the property developer, building owner and user. - Registry of assessments, certificates and advisory reports. - Registry of assessors. - Quality assurance procedures. -Administration and finance system. The system acts as a national database of energy use in buildings, which helps to monitor the progress of the European EPBD implementation and provides data for future possible tightening of Building Regulations. It facilitates periodic quality control checks on assessors and certificates. Assessor audits will be undertaken at least once every five years; 10% of certificates are checked. Energy calculation procedures are defined in the Building Regulations for residential buildings and in the HVAC regulations for non-residential buildings. Buildings are twice assessed with the calculation methodology to show compliance with Building Regulations, first when requesting a building permit and again after completion by a trained assessor following completion to provide a building energy rating. This is to ensure that buildings are fully designed in accordance with energy efficiency concepts, which are more cost effective than making changes later on. The system checks and analyses some of the information given in the certificates; samples are also checked by ADENE’s staff and subcontracted entities. Currently 4% are checked, but the intention is to increase to about 10% per year. It is possible to view a building’s energy performance rating, the validity of the certificate and the identification of the assessor Certificates display the following information: - Address, official number and image of building. - Building energy rating for the building (e.g. B- and illustrated on scale from most efficient A+ to least efficient G in kWh/m2/yr). -CO2 emissions for the building (e.g. 18 kgCO2/m2/yr illustrated in four bands from best to worst). -Indoor air quality expressed as a minimum quality required and data on concentration of pollutants in indoor air. -Assessor registration number. -Upgrade recommendations for new and existing estimates of cost, payback period and the impact on energy rating, if implemented, are indicated on the back of the certificate In Portugal, public buildings are defined as every non-residential building, owned by private or government bodies, which means that all nonresidential buildings larger than 1 000 m2 are required to display an energy certificate based on calculated energy. This must be reviewed every six years. Indoor air quality certificates must be reviewed every two to three years, depending on the building typology. Training is given by a variety of training providers, both existing universities and approved commercial training providers. However, ADENE co-ordinates the training and is responsible for the Energy Certification module in all courses. Assessors are qualified to work within the areas of the system: RCTTE (residential and small non-residential buildings) and RSECE (large non-residential buildings). Within large non residential buildings, an assessor may train and qualify in either RSECE-E (energy) or RSECE-QAI (indoor air quality). To register with the SCE as an assessor for all buildings types, an applicant must have relevant pre-qualifications, such as an architect or engineer with at least five years experience, or be certified as having successfully completed an assessor’s training module developed by Adene, and have passed the national assessor examination. Assessors are registered for five years; renewal is subject to continual training and good practice. The high level of expertise of the assessors is crucial to deliver appropriate recommendations for improving the energy efficiency of these buildings. Only assessments in the register of the SCE’s assessor database are deemed to be valid. Assessments can only be lodged by a registeredassessor. The assessor will not operate outside of the areas for which s/he is registered. Qualified assessors work as individuals or as part of public or private organisations. Currently there are 1 330 assessors, 71% with a qualification for RCCTE, 14% for RSECE-ENERGY and 15% for RSECE-QAI (indoor air quality). It is hoped to have trained 2 000 assessors by the end of 2010, which will be sufficient to supply market demand. The requirements of the European EPBD and the implementation process have been the subject of a national advertising campaign that targeted all sectors of the industry. The campaign slogan “Let’s save energy to save Portugal” has been promoted on television, the press, information seminars, the internet and construction billboards. ADENE has a dedicated area on their website that provides information and guidance for licensing authorities, building professionals, property owners and developers and building users. This is available at www.adene.pt Source: Paulo Santos (ADENE), June 2010.

Link to relevant actions beyond the target countries/regions

There are a lot of interesting previous and ongoing initiatives at European level that are relevant for RINNOVATE proposal. However, an in-depht search of IEE database projects and documents, revealed that the renovation issue is mainly referring to promote and facilitate the use of new models of cooperation, inspired by integrated design, for the energy renovation of social housing (RESHAPE, EISAV/EIE/05/045/2005, SHELTER, IEE/09/707/SI2.558240), to promote renovation through quality supply chains and energy performance certification standards (REQUEST, IEE/09/870/SI2.558308) or related to Energy Saving Contracting project (EUROCONTRACT, EIE/04/211/S07.38673) and Performance contracting (FRESH) IEE/08/668/SI2.528421 ). Some projects are mainly oriented to training on renewable energy solutions and energy efficiency in retrofitting (REE_TROFIT, IEE/09/886/SI2.558310) or to provide information about good examples of energy efficient buildings in use, in order to reduce prejudices and lack of knowledge of many key actors of the building market (EULEB,EIE-2003-172 EULEB) Other interesting initiatives are in general more concerned to provide both the knowledge and the necessary tools for the efficient management of buildings (ENERBUILDING, EISAS/EIE/06/196/2006 ) or for energy saving (POWER HOUSE EUROPE, IEE/07/779/SI2.500397) both in new and renovated buildings or focused on applying the EPBD to improve the energy performance requirements to existining buildings (ENPER EXIST, EISAV/EIE/04/096/2004)