A closer look into the European Energy Performance Certificates under the lenses of behavioural insights—a comparative analysis

The Energy Performance Certificate (EPC) aims at promoting energy efficiency in the residential sector by allowing prospective buyers and renters to compare dwellings in terms of current and potential energy performance. Yet, the impact of the EPC on the purchase and renovation decisions is limited. The research hypothesis is that the framing of the information is an important determinant alongside the calculation method and the training of the certifiers. By framing of the information is meant the content, the wording and the layout. The present paper analyses how the technical information is translated for the dwellers and focuses on a possible heuristic interpretation of the information. Firstly, a theoretical framework of deliberative and heuristic thinking is presented, with its implication to policymaking. Secondly, the findings of a qualitative inquiry of existing certificates, undertaken in two phases (a comparative analysis and a focus group), are presented. The certificates of nine European countries/regions revealed a wide range of information framings and potential nudges that have been analysed through the ‘lenses’ of behavioural insights. Even if nudging is not a purpose, heuristic thinking might influence the understanding of the information since no message is neutral. Contrary to common misinterpretation that nudging exploits exclusively individual’s heuristic thinking, certain types of nudges address the rationality of people by avoiding an existing bias. These findings were analysed in depth in a focus group with experts. Recommendations are provided in order to render the EPC an effective communication tool with the dwellers.     

Energy performance ratings and house prices in Wales: An empirical study

This paper investigates the effect of Energy Performance Certificate (EPC) ratings on residential prices in Wales. Drawing on a sample of approximately 192,000 transactions, the capitalisation of energy efficiency ratings into house prices is investigated using two approaches. The first adopts a cross-sectional framework to investigate the effect of EPC rating on price. The second approach applies a repeat-sales methodology to investigate the impact of EPC rating on house price appreciation. Statistically significant positive price premiums are estimated for dwellings in EPC bands A/B (12.8%) and C (3.5%) compared to houses in band D. For dwellings in band E (−3.6%) and F (−6.5%) there are statistically significant discounts. Such effects may not be the result of energy performance alone. In addition to energy cost differences, the price effect may be due to additional benefits of energy efficient features. An analysis of the private rental segment reveals that, in contrast to the general market, low-EPC rated dwellings were not traded at a significant discount. This suggests different implicit prices of potential energy savings for landlords and owner-occupiers.     

The effect of energy performance regulations on energy consumption

Governments have developed energy performance regulations in order to lower energy consumption in the housing stock. Most of these regulations are based on the thermal quality of the buildings. In the Netherlands, the energy efficiency for new buildings is expressed as the EPC (energy performance coefficient). Studies have indicated that energy regulations are successful in lowering the energy consumption in residential buildings. However, the actual energy consumption is usually different from the expected energy consumption. This paper explores the effectiveness of energy performance regulations in lowering the energy consumption of dwellings built in the Netherlands after 1996. The effect of the EPC and thermal characteristics on energy consumption was determined by statistical analyses of data on actual energy consumption. The results showed that energy reductions are seen in dwellings built after the introduction of energy performance regulations. However, results suggest that to effectively reduce energy consumption, the tightening of the EPC in not enough. Policies aimed at controlling the construction quality and changing occupant behaviour are also necessary to achieve further energy reductions.     

Decomposition analysis of gas consumption in the residential sector in Ireland

To-date, decomposition analysis has been widely used at the macro-economic level and for in-depth analyses of the industry and transport sectors; however, its application in the residential sector has been rare. This paper uses the Log-Mean Divisia Index I (LMDI-I) methodology to decompose gas consumption trends in the gas-connected residential sector in Ireland from 1990 to 2008, which despite an increasing number of energy efficiency policies, experienced total final consumption growth of 470%. The analysis decomposes this change in gas consumption into a number of effects, examining the impact over time of market factors such as a growing customer base, varying mix of dwelling types, changing share of vacant dwellings, changing size of new dwellings, the impact of building regulations policy and other factors such as the weather. The analysis finds the most significant effects are changing customer numbers and changing intensity; the analysis also quantifies the impact of building regulations and compares it with other effects such as changing size of new dwellings. By comparing the historical impact on gas consumption of policy factors and non-policy factors, this paper highlights the challenge for policy-makers in achieving overall energy consumption reduction.     

Policy measures to overcome barriers to energy renovation of existing buildings

Even though there is great potential to reduce greenhouse gas emissions from existing buildings, most political effort in Korea has been focused on the construction of new buildings; few concrete measures have been taken to limit greenhouse gas emissions from existing buildings. This study examined the potential to reduce greenhouse gas emissions from existing residential buildings as a means to cope with global warming. Additionally, several barriers to improving the energy performance of existing dwellings instead of constructing new dwellings were explored. The major barriers to improving the energy performance of existing residential buildings are: (1) a lack of awareness; (2) financial reasons; (3) insufficient information; and (4) the absence of regulatory systems. To overcome such barriers, systems adopted and implemented in developed European countries were considered and their feasibility was verified so that political measures could be suggested to improve the energy performance of existing dwellings in Korea.     

What encourages local authorities to engage with energy performance contracting for retrofitting? Evidence from German municipalities

Municipalities aiming at mitigating climate change by implementing new energy efficiency technologies face budgetary and capacity constraints. Outsourcing through energy service contracting could provide a solution. This paper reports results from a survey of 1298 municipalities concerning barriers to retrofitting public street lighting and the possible role of energy service contracting to overcome these barriers. Using a logistic regression analysis, the authors investigate determinants of opting for energy service contracts in the specific context of LED retrofits. Results point to an advantage of outsourcing in a financially and capacity-constrained environment, which corresponds with the main reasons for engaging in contracting: minimising investments and financial risks. However, municipalities often do not fully grasp the risks associated with retrofitting especially using a novel technology such as LED. In relation to that they underestimate the risk reduction potential of energy performance contracts (EPC). Previous experience with outsourcing increases the probability to engage in servitization although certain existing partnerships, particularly with utilities, prevent municipalities from considering energy performance contracts. Interestingly, engaging an energy consultant has a negative propensity to use energy service contracts, while pre-negotiated standardised contracts for energy performance contracts have a positive influence.     

工业锅炉合同能源管理模式探索

叙述了工业锅炉具有巨大的节能潜力,但节能减排进展缓慢的情况。指出,应用合同能源管理（EPC）为工业锅炉节能改造提供了新思路,根据工业锅炉节能改造项目特点,宜选择EPC的3种类型中的能源费用托管型合同,并应与煤炭、燃油价格指数联动。     

Germany's path towards nearly zero-energy buildings—Enabling the greenhouse gas mitigation potential in the building stock

On 19 May 2010, the European Union adopted a Directive stipulating that by the end of 2020, Member States must ensure that all newly constructed buildings consume ‘nearly zero’ energy. In Germany, drastic reductions of energy demand for space heating have already become a policy target over the last decade, both for new and existing dwellings. In this article, we evaluate the impact of past and future policies on the development of buildings with a very high energy performance (VHEP) and on their primary energy demand and emissions. These dwellings account for 4% of all dwellings which have been constructed since 2001 and 1% of the total building stock. We have defined different policy scenarios, all of which assume a gradual increase of requirements for new and existing buildings and a continuation of the support policies that stimulate both new constructions and ambitious refurbishments. In the most ambitious scenario, the proportion of VHEP dwellings will increase by up to 30% of the total stock in 2020 and the share of nearly zero and zero-energy dwellings will then make up 6%. This will lead to emission reductions of over 50% of the 1990 level and primary energy reductions of 25% compared with today.     

Success factors of energy performance contracting (EPC) for sustainable building energy efficiency retrofit (BEER) of hotel buildings in China

Hotel building is a type of high-energy-consuming building and most existing hotel buildings need energy efficiency improvement in China. Energy performance contracting (EPC) is considered a win−win mechanism to organize building energy efficiency retrofit (BEER) project. However, EPC mechanism has been introduced into China relatively recently and many EPCs have not been successful in building energy efficiency retrofit projects. This research aims to develop a set of critical success factors (CSFs) of EPC for sustainable energy efficiency retrofit (BEER) of hotel buildings in China. Semi-structured interviews and a questionnaire survey with practitioners and other professionals were conducted. The findings reveal the relative importance of the 21 number of identified success factors. In order to explore the underlying relationship among the identified critical success factors (CSFs), factor analysis method was adopted for further investigation, which leads to grouping the 21 identified CSFs into six clusters. These are (1) project organization process, (2) EPC project financing for hotel retrofit, (3) knowledge and innovation of EPC, sustainable development (SD), and M&V, (4) implementation of sustainable development strategy, (5) contractual arrangement, and (6) external economic environment. Finally, several relevant policies were proposed to implement EPC successfully in sustainable BEER in hotel buildings.     

Local government influence on energy conservation ambitions in existing housing sites—Plucking the low-hanging fruit?

Greater energy efficiency can be achieved in existing dwellings thanks to longer lifecycles, slow replacement rates, and technical innovations. Many such dwellings are located in dense urban neighbourhoods, where urban renewal projects are undertaken. Local government can encourage the setting of ambitious goals as a stepping stone to realizing energy efficiency goals that achieve high levels of energy efficiency. The research question which this paper addresses is: to what degree do local governments influence ambitions to conserve energy in existing housing sites? To examine this issue, thirty-three sites in the Netherlands were studied using a quantitative analysis. The results show that collaboration between local authorities and local actors increases the level of ambition to conserve energy. However, local authorities intentionally selected sites with poor energy efficiency, so it would be easy to meet ambitious energy conservation targets. Collaboration between local authorities and local actors turns out to be the key factor in selecting those sites. Moreover, there is little sign of genuine ambition. This article contributes to the debate on energy conservation policies in local housing sites. The study provides starting points for systematic, empirical research into the realisation of energy conservation in existing housing, especially in large-scale refurbishment projects.     

合同能源管理在医院建筑节能改造中的应用

既有建筑开展节能改造是我国现阶段落实节能减排目标、实现可持续发展的关键工作内容之一。合同能源管理作为一种新兴的节能改造商业模式,可以充分调动用能单位开展节能改造的积极性,并充分利用市场资源,最终有效落实节能减排目标。对合同能源管理的概念内涵、发展现状、扶持政策、改造技术以及常见的商业模式进行概述,并以实际的医院建筑改造项目为案例,对其采用合同能源管理的改造方案、商业模式以及风险管控进行介绍,旨在为我国的公共建筑特别是医院建筑的节能改造提供参考依据。     

Scaling up energy efficiency: the case for a Super ESCO

In developing countries the implementation of energy efficiency projects has fallen far short of the potential due to a number of institutional and financial barriers. The concept of energy performance contracting (EPC) implemented by energy service companies (ESCOs) has been recognized as a mechanism to overcome some of these barriers. However, despite the fact that the potential for application of performance contracting in developing nations is enormous, the growth of the ESCO industry has been rather slow. In particular, EPC and ESCOs have played a very limited role in implementation of energy efficiency projects in the public sector. This paper identifies barriers to the development of a viable ESCO industry in developing countries and identifies the need for and the potential role of a “Super ESCO” as a means of facilitating large-scale implementation of energy efficiency projects. While there are different definitions of the term Super ESCO, this paper refers to a Super ESCO as an entity that is established by the Government and functions as an ESCO for implementing projects in public facilities and supports capacity building and project development activities of existing private ESCOs. The Government capitalizes the Super ESCO with sufficient funds to undertake public sector performance contracting projects and to leverage commercial financing. The Super ESCO may also act as a financing or leasing organization to provide private ESCOs and/or customers financing for EE projects or leasing for EE equipment. The paper identifies examples of existing and proposed Super ESCOs in developing countries and defines how Super ESCOs may address some of the barriers to large-scale implementation.     

The impact of Energy Performance Certificates on the rental and capital values of commercial property assets

This paper focuses on the effect of energy performance ratings on appraised capital values, rental values and equivalent yields of UK commercial property assets. The study is based on a cross-section of 708 commercial property assets. Incorporating a range of potential confounding factors such as unexpired lease term, vacancy rate and tenant credit risk, we use hedonic regression procedures to estimate the effect of EPC rating on rental and capital values. The study finds no evidence of a significant relationship between environmental and/or energy performance and rental and capital values. A small subset of 24 BREEAM-rated assets is also tested for significant price effects but a statistically significant effect is only confirmed for equivalent yields. Similarly, there was no evidence that the EPC rating had any effect on Market Rent or Market Value with only minor effects of EPC ratings on equivalent yields. The preliminary conclusion is that energy labelling is not yet having the effects on Market Values and Market Rents that would be expected if high EPC ratings were associated with substantial cost savings that are fully reflected in capital values and/or were readily available and taken into account by prospective tenants and buyers.     

Electricity end-uses in the residential sector of Brazil

The residential energy consumption has been studied in many countries as it usually accounts for a large percentage of the total energy consumption. Energy end-uses have also been a matter of concern as they can assist energy system planning. The objective of this paper is to assess the actual scenario of electricity consumption and estimate electricity end-uses in the residential sector of Brazil for different bioclimatic zones. The analysis is based on a survey performed by 17 energy utilities enclosing a total of 17,643 houses or flats over 12 states in Brazil. The survey was performed to obtain electricity consumption data for all household appliances found in houses and flats. The electricity end-uses were estimated by performing weighted averages according to the location of the dwellings in each bioclimatic zone. Results indicate that the largest end-uses are for refrigerator and freezer together, which account for about 38–49% of the electricity consumption in dwellings in Brazil. Air-conditioning and electric shower are the end-uses that are more dependent on the climatic conditions. The main conclusion that can be made from the analysis is that air-conditioning should be a major concern in the residential sector of Brazil in the near future as its ownership is still low, but its electricity consumption is already significant mainly over summer.     

Energy performance contracts in the municipal sector in Norway: overcoming barriers to energy savings?

In this paper, we investigate which factors are significant for the uptake of energy performance contracts (EPCs) in Norway’s municipal sector, based on qualitative case studies. An EPC consists of a set of energy efficiency measures provided by an energy service company. The model used in Norway guarantees that savings produced by a project will finance its full cost. Estimates indicate that an EPC is a promising way of substantially increasing savings. We find that a committed individual in the administration is essential for the adoption of an EPC. Such individuals have the technical and/or economic competence to see the potential for energy savings and the organizational competence for moving an EPC through to the political level. Further, we find that the guarantee that accompanies an EPC is well suited for addressing the logic of politicians, and is crucial when the final decision is made. These findings indicate that a standard economic understanding of energy savings is not sufficient. Efforts to increase energy savings might benefit from being targeted at the contexts where measures are to be implemented and at the logic of those making energy-saving decisions.     

Using the Homes Energy Efficiency Database as a research resource for residential insulation improvements

In devising viable energy efficiency policies that can reduce the greenhouse gas emissions of existing dwellings (e.g. UK׳s Green Deal), data are required on current insulation levels and its influences. One such data source is the seldom used UK Energy Saving Trust׳s Homes Energy Efficiency Database (HEED), which this paper investigates using Norfolk UK local authorities as a case study. The HEED׳s reactive and longitudinal data collection strategies contribute to underlying biases, which is the likely reasoning for its differences with the English Housing Survey and UK 2001 Census. These differences had a cascading effect in that they manifested themselves in the indicative financial and carbon assessments undertaken. Similarly, sampling concerns also implicated correlations surrounding influences of current dwelling insulation levels. Providing one is transparent about potential biases and data concerns, the HEED can play a substantial role in guiding policy decisions and understanding dwelling stock characteristics (e.g. what makes dwellings ‘Hard to Treat׳). In particular, its vast (national) geographic coverage yet high resolution enables local context to be explored: a factor that this study shows to significantly shape insulation levels.     

宝钢合同能源管理的应用潜力与实践

宝钢作为大型高耗能国有企业,肩负着节能减排的重任。自建厂30多年来,通过技改、科研、维修工程等多种渠道在节能减排方面取得了显著成效。合同能源管理这一新的节能机制,作为公司现有节能项目实施渠道的扩展,为节能减排工作注入新的活力与潜力。文章在概述宝钢合同能源管理工作基础上,重点对宝钢开展过程中遇到的问题进行分析总结,并对其它钢铁企业合同能源管理工作提出建议。     

Planning globally,protesting locally: Patterns in community perceptions towards the installation of wind farms

The evidence is compelling that extended use and production of energy are globally responsible for the serious deterioration of physical environment and climate change. The further penetration of renewable energy sources (RES) emerges as a crucial factor contributing to the mitigation of global warming. Within this framework wind energy is expected to have a leading role for Greece's compliance with the EU environmental targets of 2020. However, the installation of wind parks in specific regions with high wind potential is seriously constrained by the reaction of local communities. Using a survey the present research dissects public acceptance for existing and proposed wind farms in the region of Southern Evia, Greece. Results indicate an overall support for wind energy and confirm the growing inconvenience with NIMBYism, especially in areas with existing wind parks in operation, as a theoretical framework explaining resistance to planned wind energy investments. By contrasting self-reported ex ante- and ex post-perceptions of impacts and benefits we highlight the role of experience in community acceptance of wind energy installations. Our statistical models prescribe the profile of those most probably in favour of existing installations, new installations in other parts of Evia or new installations elsewhere in Greece. Finally, we introduce the ‘Not-In-My-Front-Yard’ (NIMFY) syndrome suggesting that the impact of visibility on public acceptance is far from being a simple concept as it is linked to both a physical landscape context and socio-economic parameters.     

The relevance of global energy governance for Arab countries: The case of Morocco

Global climate and energy governance have led to the creation of a wide range of international and regional institutions, initiatives and financial mechanisms dedicated to fostering renewable energies. Furthermore, a low-carbon economy has evolved in recent years. The objective of this paper is to assess the potential benefits and merits of these institutions, initiatives and mechanisms from the perspective of the Middle East and North Africa (MENA) region. The central questions are if and how these organizations, initiatives and finance mechanisms could support a country from MENA in its efforts to implement large-scale capacities for renewable energy production. For this purpose, Morocco was chosen as a case study. The findings in this paper indicate that the existing institutions and financial mechanisms do not sum up to a coordinated governance approach, although the main needs of a country or region appear to be addressed. The existing institutions and financial mechanisms vary significantly in their ability to support countries, especially those taking the lead in renewable energy implementation.     

Evidence of an indirect rebound effect with reversible heat pumps: having air conditioning but not using it?

Regional energy efficiency programmes are of particular interest as they tackle local constraints which are not always targeted by national energy policy. Within this framework, an energy efficiency programme for existing dwellings has been implemented in a southern European region, providing financial incentives for a combination of energy efficiency actions (heat pump combined with insulation and/or solar water heater). Ex-post evaluation results of this pilot programme are reported in this study. More than 200 households were surveyed regarding their individual energy consumption as well as house and household characteristics. Likewise, the survey highlights household behaviours concerning both space heating and air conditioning, before and after refurbishment. A 3-year billing analysis is used to calculate the energy savings attributed to the operation. Evaluations are carried out taking into account critical parameters like climate differences between years or direct (enhanced space heating comfort) and indirect (use of air conditioning) rebound effects via a statistical model. Moreover, an uncertainty assessment of energy savings was realized on the basis of three scenarios (low, median and high). This study is particularly focused on the use of air conditioning by households, data rarely found in the literature, whereas the consumption linked to air conditioning should increase in the residential sector especially in southern regions. These results help in answering questions about the installation of heat pumps in existing single-family houses with respect to energy savings as well as direct and indirect rebound effects.