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Stimulating innovation

Supporting legislation

Energy renovationThe Trump Card for the New Start for Europe

Yamina SahebKatalin Bódis

Sándor SzabóHeinz Ossenbrink

Strahil Panev

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Dr. Heinz Ossenbrinkheinz.ossenbrink@ec.europa.eu

Dr. Yamina Sahebyamina.saheb@ec.europa.eu

Dr. Sándor Szabósandor.szabo@ec.europa.eu

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Dr. Heinz OssenbrinkHeinz.ossenbrink@ec.europa.eu

Head of Renewables and Energy Efficiency Unit atthe Institute for Energy and Transport (IET) of theJoint Research Centre (JRC) of the EuropeanCommission.

His work is dedicated to the scientific support of EUlegislation for Renewable Energies and Energy Efficiency.More recently, he is developing the unit's portfolio ingeo-processing and the use of spatial data and GISmapping for energy analyses.

Heinz holds a PhD in Nuclear Physics from Hahn MeitnerInstitute, Berlin.

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Dr. Yamina Sahebyamina.saheb@ec.europa.eu

Policy and Scientific Officer at the Renewables andEnergy Efficiency Unit at the Institute of Energyand Transport of the Joint Research Centre (JRC)of the European Commission (EC).

Her work is dedicated to analyses of energy efficiencypolicies and developing methodologies to assess theirimpact. Prior to joining the JRC, she worked as seniorbuildings energy efficiency policy analyst at the IEA.

Yamina holds a Ph.D in Energy Engineering, Master’sdegrees on Landscape Architecture and DevelopmentEconomics and an Engineering degree in Buildingtechnologies.

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Dr. Sándor SzabóSandor.szaboec.europa.eu

Team Leader at the Renewables and EnergyEfficiency Unit at the Institute of Energy andTransport of the Joint Research Centre (JRC) of theEuropean Commission (EC).

His work is dedicated to economic and financial analysisof renewable energies and energy efficiency policies.More recently, he developed and coordinated theAFRETEP project on rural electrification and renewableenergies.

Sándor holds a Ph.D in economics from CorvinusUniversity in Hungary and a Master's degrees inenvironmental science from Hull University UK, andUniversity of Amsterdam.

The JRCJRC is the European Commission's in-house science service

It provides independent customer-driven scientific and technical support for the conception, development, implementation and monitoring of EU policies.

o Established in 1957

o 7 institutes in 5 countries

o 3000 staff

o Over 1030 publications in 2014

Would Energy renovation address Juncker'spriorities?

78 January 2016

1. A New Boost for Jobs, growth and investment

2. ….

3. A Resilient Energy Union with a Forward-looking Climate Change Policy

1. Energy Union (energy security) 2. Energy prices3. Number one in Renewables4. Enhance energy efficiency beyond 2020 objective

''…when it comes to buildings, and I am in favour of an ambitious, binding target to this end…''

4. …5. …6. …7. …8. …9. …10.…

A new boost for Jobs, growth

and Investment

88 January 2016

The building sector as a such doesn't exist in the statistics

98 January 2016

Construction sector

Construction of buildings Specialised construction activities Civil engineering

Development of building projects

Construction of residential and non-residential buildings

Plumbing, heat, electrical and air conditioning installation

Floor and wall covering

Painting and glazing

Plastering, joinery installation

Building completion and finishing

Non-financial business economy

10

2011/ EU 28 Value added

(EUR billion)

Share of the value

added of the

non-financial

business economy

Number

of persons employed

(million)

Share of employment

in

the non-financial

business economy

Total construction 501 8% 13.1 10%

Construction of

buildings 144 2.3% 3.7 2.8

Specialised

construction activities 283 4.7% 7.8 6%

Total building sector 427 7% 11.5 8.8%

Specialised construction activities that include renovation work and energy retrofits add almost twice value than the

construction of new buildings and employ three times more people than the supply of energy for the same value added

Energy supply to

buildings

215 3.5% 2.13 1.6%

Specialised construction activities that include

renovation work and energy retrofits are the stabiliser of the building sector

11

94% of enterprises in the building sector were enterprises with less than 9 persons employed

8 January 2016

13

The building sector employs more people in the less developed regions in each Member State

The economic role of the building sector goes beyond the building work itself

148 January 2016

Building materialEquipment, machines:Construction, sales, lease

Building material outlets

Knowledge organisation, etc.(research, law, taxes…)

Real Estate, banks, etc. (evaluation, financing…)

Concept design, plans, audits

Project Management

Operation,Maintenance

Building work: envelope and technical equipment including RE

Public Administration

Supply

GeneralSupport Andservices

Buildingservices

Execution

Raw Material

Quand le bâtiment va, tout va!*

“The health of the economy is tied to the activity in the building sector”

15

* Martin Nadaud at the French Parliament in 1850

A Resilient Energy Union with a

Forward-Looking Climate

Change Policy

168 January 2016

Final energy consumption of the building stock increased by 14% between 1990 and 2012

17

188 January 2016

Heating Central and Eastern Europe is highly dependent of Russian gas

198 January 2016

MSs with GDP/capita lower than EU average have the highest share of low-income owners of their buildings

208 January 2016

MSs with GDP/capita lower than EU average have the highest share of owned-occupied buildings from 1945-1980

218 January 2016

MSs with GDP/capita lower than EU average have the highest share of population unable to keep homes warm

228 January 2016

MSs with GDP/capita lower than EU average have the highest share of population with arrears on utility bills

238 January 2016

Decarbonisation of electricity production is of high importance in MSs with GDP/capita lower than EU average

The scale of the challenge

248 January 2016

Energy renovation cost should be lower than 25% of the value of the home

258 January 2016

Savings potential in residential buildings by construction period

27

A balance between investment needs and incrementalcosts

The higher the discount rate, the less attractive energy renovation is to investors

The road to phasing out inefficient buildings is bumpy

Setting baselines is difficult because energy consumption data are locked.

Energy renovation costs are not transparent.

Accreditation of energy renovation companies is scarce

Market actors are fragmented and building clusters of companies is not obvious.

70% of the EU population is owner-occupier but bundling projects is still not a common practice

Deepness of the renovation is undefined which doesn't push for technological innovation.

Post monitoring and evaluation is not always a requirement of financing energy renovation.

An Energy Renovation Facilitator & a Risk Sharing Pool are needed to create an energy renovation market

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The EU Energy renovation plan involves combining existing EU 2020 policy frameworks

31

Thank you for your attention

The report is available online at:

http://iet.jrc.ec.europa.eu/energyefficiency/publication/energy-

renovation-trump-card-new-start-europe

Yamina Saheb

Yamina.Saheb@ec.europa.eu

EC DG Joint Research Centre (JRC)IET - Institute for Energy and TransportIspra - Italy

http://www.jrc.ec.europa.eu