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NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance for Sustainable Energy, LLC.

Building Efficiency

Part 1: Overview

Sandra Reategui

29 September 2010

Mexico City

WEACT is a subtask of the

InternaFonal Partnership for

Energy EfficiencyCooperaFon (IPEEC)

Worldwide Energy Efficiency AcFon through

Capacity Building and Training (WEACT)



NATIONAL RENEWABLE ENERGY LABORATORY

Training Objective for Building Module

Provide par+cipants withthe tools needed to create a

policy acFon plan forbuilding efficiency, through:

• Review of building efficiency policytypes

• In‐depth review of select policies,including examples

• Discussions based on your experiences

• Steps needed to design and implementbuilding efficiency policies

• On‐line resources, described in thepresenta+ons and hand‐outs

2




Training Session Outline

Overview of policy opFons

In‐depth policy review

Policy design

Policy implementa+on

Group exercise

3




What is building energy efficiency?

Building Energy Efficiency(technical definiFon)

• The extent to which the energyconsump+on per m2 of floor area of the

building measures up to establishedenergy consump+on benchmarks for thatpar+cular type of building under definedclima+c condi+ons

Building energy consumpFon

benchmarks

• Representa+ve values for commonbuilding types against which a building’sactual performance can be compared

4




Why do we want building efficiency?

Buildings consume 40% of global energy

Many benefits

• Cheaper and faster than increasing energy supply

• Improved comfort

• Energy security

• Poverty allevia+on

• Job crea+on

• Improved produc+vity

• Environmental benefits

5




Why do we need building efficiency policies?

Many market barriers to efficiency

• Informa+onal

• Ins+tu+onal

• Behavioral

• Economic

To address so many barriers, needcomprehensive set of policies

But policy barriers exist too

• Although can draw lessons from like markets,local markets require local solu+ons

• Efficiency is hard to measure; requiresconsistent and credible data

6




Policy Types

Building codes

Incen+ves

Informa+on programs

Training and capacity building

Public leadership programs

7




Building Codes

• Prescrip+ve (minimum performance requirements for

building components; limited flexibility, easy to follow)

• Performance (maximum energy consump+on for wholebuilding; more economically efficient; more innova+ons)

Examples

• Effec+ve if enforced, addresses many barriersPros

• Enforcement, workforce training, mo+va+ngcompliance, can be highly poli+cal, largely ignores

exis+ng buildings

Keychallenges

• Base codes on 30‐year least lifecycle cost

• Increase market for low‐ and zero‐energy homes

• Require renova+ons to meet new codes

Next steps

8




Incentives

• Reduce upfront costs: grants, tax credits, subsidies

• Improve access to financing: loans, interest rate buy‐

down, energy performance contracts, PACE

• Address split incen+ves: green leases

• Non‐financial: recogni+on programs, expedited permi]ng,

dispensa+on from other codes (e.g., height restric+ons)

Examples

• Cost o_en key barrier; works well in policycombina+ons

Pros

• Possible budget expense

Keychallenge

• Energy performance contracts

• Remove fiscal disincen+ves (e.g., fuel cost taxdeduc+ons)

Next steps

9




Information Programs

• Awareness Raising: pilot programs; demonstra+on sites;

mandatory audits; public adver+sements

• Labeling and Cer+fica+on: building energy performancedisclosure; commissioning; high‐performance labels;

benchmarking

Examples

• Reach large audience; addresses new and exis+ngbuilding stockPros

• Improved informa+on ≠ ac+on; audit quality;

cer+fica+on is building‐specific

Key

challenges• Require efficiency audit and ra+ng (e.g., EU Building Pass)

• Encourage or require commissioning of new buildings

• Raise awareness of the value of dedicated energy

managers

Next steps

10




Trainings and Capacity Building

• Efficiency included in basic building‐related curricula

• Trainings for standard se]ng, code enforcement,audits, data collec+on and evalua+on, buildingenergy management, integrated building design, and

financing op+ons

Human CapacityBuilding

examples

• Crea+on of energy agencies to implement

efficiency programs

InsFtuFonalCapacity Building

example

• Addresses a key barrier in many countriesPros

• Can be complex and +me‐consumingKey challenge

• Train and accredit building design and construc+on

specialists in integrated building systems

• Create networks of experts; provide training & webinars

• Train and deploy outreach agents

Next steps

11




Public Leadership Programs

• Stronger codes for public buildings

• Efficiency goals & requirements to track and reportprogress

• Training and technical assistance for building managers

• Energy performance contrac+ng

Examples

• Large poten+al for energy savings and markettransforma+on, par+cularly for ESCOs; cost‐effec+ve use of public money

Pros

• Training building managers, ESCO capacityKey

challenge

• Ins+tute aggressive efficiency standards forgovernment buildings

• Expand the capacity for sub‐na+onal public agencies

Nextsteps

12




Policy Combinations

Policy porolios—more valuethan the individual measurescombined

• Policies reinforce each other

• Market barriers are mul+ple—needmul+ple policies to overcome even one barrier

Examples• Mandatory audits & capacity building for auditors & financial

incen+ves (rebates, ESCO financing…)

• Labeling & financial incen+ves

• Building codes and subsidies or awards

• Public leadership programs and policies to support energyperformance contracts

13




Policy Combinations: IEA Recommendations

14

Among IEA’s 25 efficiency recommendations, 5 addressbuildings:

1. Mandatory and strengthened building codes for newbuildings

2. Support for passive energy houses and zero energybuildings

3. Incentives to retrofit existing buildings

4. Share information through building certificates

5.

Improved standards for windows and other glazedareas

http://www.iea.org/papers/2008/cd_energy_efficiency_policy/0_introduction/EffiRecommendations_web.pdf




Discussion Questions

What building policies do you want tolearn more about?

Which policies (1‐2) are the easiest toimplement in your country and would haveapplicability throughout the region?

Which policies (1‐2) offer the most cost‐effec+ve energy savings in your countryand could apply elsewhere in the region?

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