IEA´s Sustainable Buildings Workshop 12/13. Nov 14

Alexander Zhivov USACE Engineer Research and

Development Center, Champaign, IL USA

Rüdiger Lohse KEA- Climate protection and energy agency

of Baden- Württemberg GmbH

• Technical:

– provide framework. selected tools and guidelines to significantly reduce energy

use (by more than 50%) + improve indoor environment quality in government and

public buildings and building communities undergoing renovation

– Gather, research, develop, and demonstrate innovative and highly effective

bundled packages of ECMs (energy conservation measures) for selected

building types and climatic conditions

• Business/economical:

– To develop and demonstrate innovative, highly resource-efficient business

models for retrofitting buildings and community systems using appropriate

combinations of public and private funding (i.e. ESPC and other concepts)

– to support decision makers in evaluating the efficiency, risks, financial

attractiveness, and contractual and tendering options conforming to existing

national legal frameworks

• Applicability/market alignment:

– To engage end users, mainly building owners and other market partners, in the

proceedings and work of the Annex Subtasks.

Objectives of Annex 61 in brief

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Discussion Points / Key Questions:

• Exchange of information and data sharing (incl. project/policy evaluation)

• Agreements and treatment of sensitive data

• Joint projects and integrated modelling /analytical frameworks

Key questions:

• What are barriers to greater collaboration and partnering with IEA?

• How can IEA increase the value preposition to potential partners and

sponsors?

• What organizations want to work closely with the IEA on global modeling?

Break Out Group B – Key questions and discussion points

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1) Modeling- approach for policy making: Global modeling

Results of global modeling must provide significant data for target setting for EE

scenarios in buildings to provide reliable answers and data for the following

questions:

• refurbishment strategy should be conducted in EU/G7 to achieve which

carbon targets (referring f.e. to BPIE´s or GBPN definitions of minor/medium

deep retrofit)

• identify eligible refurbishment scenarios to achieve global carbon targets,

• quantify investment scenarios, costs and financing needs

Expected outcomes:

• Scale up of refurbishment strategies towards deep energy retrofit <DER> in

buildings instead of shallow approaches

• Align DR and DER refurbishment strategies with regard not to spoil

opportunities in building´s life- cycle approach of 30- 40 years

• Brighten discussion of nNEZ building strategies (strategies for PEE/ Final

energy- efficiency is still in discussion/some countries allow PEE targets

which may not reduce end energy targets..

• Quantify finance need to start creating finance and business models

Break Out Group B - Global modeling

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1) Modeling- approach for policy making: Global modeling

Requirements for high value preposition in global modeling/fields of future

research and collaboration

• Strategies should be based on existing building typology, structure and

alignment with m² (national heating demand plans, GIS…)

• Building typologies aligned to best practice/optimized DER measure bundles

• DER measure bundles aligned with national specific investment costs

• Impact on DER measure markets price scenarios

• impact on labour market

• demand for finance

• which financial streams will have to be steered into EE of buildings

Break Out Group B - Global modeling

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2) Modeling- general approach with regard to EE market:

• On the project level modeling has to be seen as a key preparative measure to

encounter EE efficiency in buildings and fundament to enable access of both

public and private financing.

• Theses:

• a) modeling results are not yet appropriate for decision making on expert and

non- expert level and for providing funding- open feed back circuit

• b) modeling is in the majority of small and medium sized buildings not yet a

common approach- complex

Which steps to go next:

Break Out Group B - modeling market approach

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2a) how to increase reliability of modeling results as a key factor for appropriate

decision making and financing

– We must come to modeling structures with integrated feedback systems

(emulation) to permanently verify and adjust model assumptions

– In the case of applications/plug loads metering systems fixed on the

electricity circuits exists, databases collected from these metering

systems exists as well (dezem, Berlin among others).

– Databases with measured data should be aligned with modeling process.

– This could be provided as benchmarks or other values to cross check

modeling results and support draft cost benefit calculations

– Exchange of information and data sharing: What IEA can do: start to build

up databases of evaluated DER projects and recommend strongly the

national partners to provide this asap

Break Out Group B - 2) modeling market approach

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2) Modeling- general approach with regard to EE market: reliable energy

management structures create credible fundaments for DER refurbishments

2b) Energy management: in the past years in some countries best practice of

energy management has been practiced in a way of energy “commissioning” -

examples, what to learn…

• Low- level investment 10- 20%

• Excellent data of pre- refurbishment building

• methodology of E- Commissioning: adjustment of control systems

monitoring, metering, verification,

• Metering concepts- remote controlled metering concepts

• Adjusting HVAC equipment, control systems to the building utilization to

create benefits:

– High indoor climate and comfort

– Energy and energy cost savings as value preposition to be used to equal the costs

of EM/EC implementation

• Simple monitoring and verification methods

• Reliable data to prepare projects for refurbishment

Break Out Group B – modeling market approach

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Modeling – market approach : do we really use the

appropriate business models?

The “owner- directed”/”inhouse”- approach lacks EE incentive mechanisms:

• In EU 95% of building refurbishments are carried out in “owner- directed or in-

house” business models:

– Architects/planners are responsible for planning, procurement, quality

assurance in the construction phase

– Building owner- provides (mostly non- experts) funding, engages bank

loans for funding and is in charge for the building operations after the

accomplishment of the construction phase

– Crafts- /Trades Men: construction, maintenance services

• Experienced malfunctions of “owner- directed/in- house- business

models”:

– Open feed back model with no feed- back and response integrated

– Decision making is typically not referring to life- cycle based criteria

– lacking stimulation to meet calculated efficiency targets and fixed

investment budgets

Modeling- market approach- do we really use the

appropriate business models?

• ESPC – Energy Saving Performance Contracting: virtues of performance

related business model in comparison to “owner- directed” business models:

Strong contract based stimulation for both contract parties to achieve a

high cost effectiveness by providing a better savings/investment ratio

Guaranteed energy and maintenance cost savings between 25 and

40% in US, EU

Bankable energy- and maintenance cost savings create revenue streams

which are reliable positions of the funding of deep retrofit projects

Cost structure and decision making criteria aligned to life- cycle costs

ESCOs are using design and experience based knowledge on different

ECM (1) bundles (HVAC/biomass/CHP..) and are performing with

satisfactory results

EPC in its current approach is not the chosen vehicle for deep retrofit

projects

• One main target of IEA- Annex 61 is the advancement of existing EPC- related

business models for deep retrofit projects

(1) ECM Energy Conservation Measures

3) Proposed exchange of information and data sharing:

to increase the reliability of modeling= confidence building for financing

• What could IEA and national members do:

– set up evaluation of accomplished DER projects on the r+d agenda

– Emphasize metering/verification in research projects, in this case

evaluation of effects of plug loads, lighting, cooking

• Potential collaboration:

– KEA / Annex 61 working members can share data from EM and

evaluation with IEA

– (first important step is commitment)

– Could take place in annual platform workshops

Break Out Group B

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3) Proposed exchange of information and data sharing:

to increase the reliability of modeling= confidence building for financing

– Barriers:

• Funding has to be provided on national level, if not agreed a top- level issue

funding is unlikely

• Are expert platforms already existing? • Availability and access to sensitive data- at least public projects should not

be an issue

• 4) How to increase value preposition?

– Provide information on the international level- which countries provide

which framework

Break Out Group B

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