Innovative Regulatory Framework in the Building Sector The German Case

Transcription

1 Innovative Regulatory Framework in the Building Sector The German Case Dr.-Ing. Rudolf Hennes Prinipal Engineer KfW Bankengruppe Berlin,

2 Structure 1. The Framework 2. Which Appoaches Do Exist? 3. KfW Promotion of Buildings 4. Promotion of Innovations 5. Lessons learnt

3 German Climate Policy The Targets and Approaches 2020 minus 40 % GHG Compared with minus 80 % 2020 minus 20 % PEC Compared with minus 50 % Energy efficiency Energy productivity up by 2.1 % p.a Building heat demand 20% by % by 2050 Energy Performance Buildings Directive By 2019/2021 nearly zero emission standard for new buildings, remaining energy to be mostly covered by renewables Renewable energies Increase of Renewable Energy up to 60 % of total final energy and 80 % of electrical power by 2050.

4 How to Promote Energy Efficiency? Tambourine Carrot Stick

5 Regulatory Framework Forms the Foundation for Other Instruments Information and Consulting Promotional Programmes I N S T R U M E N T I N S T R U M E N T Legislation, Rules and Regulations, Technical Standards Energy efficiency requirements for production, services, new and existing buildings KfW R. Hennes 10/2011

6 The regulatory framework and its framework National and European Energy and Climate Objectives European Directives Economy Renewable Energy Sources Act (EEG) Energy Savings Ordinance (EnEV) for buildings Combined Heat and Power Act Renewables Energies Heat Act (EEWärmeG) EU Regulation of efficiency of lighting, pumps etc Available technology Desirable technology Affordable technology Accepted technology Monitoring requirements Technical Standards, ISO, DIN, Calculation Tools, etc.

7 Development of Energy Efficiency in Buildings Development of regulatory minimum requirements of energy efficiency of new constructed houses compared to best practice an research E Primary n e r g i e Energy e f f i z Demand i e n z Solarhouses 1.WSVO Low-energy- houses 2.WSVO 3-liter- houses 3.WSVO Regulatory minimum requirements Best practice research EnEV 2002 EnEV2009 Zero-energy- houses Plus-energy- houses

8 Structure 1. The Framework 2. Which Appoaches Do Exist? 3. KfW Promotion of Buildings 4. Promotion of Innovations 5. Lessons learnt

9 Energy Efficiency Promotion in Housing KfW s Key Principles German Energy Conservation Ordinance (EnEV) is the baseline + Harmonizing of legal framework and promotion + promotional incentives require higher efficiency standards than legal framework KfWs promotion is focussed on a holistic approach + Focussing on energy efficiency and renewable energies + Technological neutral (heating system or building envelope) + Cost efficiency and reduction of energy consumption is crucial KfW-Efficiency House as standard and brand for energy efficiency + consistent standard for construction and refurbishment approved by an energy auditor + makes a difficult regulation easy to understand: The smaller the number the higher energy efficiency. + creates high transparency Higher energy efficiency means higher promotional incentives

10 Promotional Effects Housing Volume impact Start of programme in 2001 More than loans committed so far Aggregated commitment volume of 45 billion EUR 2,1 million housing units promoted Macroeconomic impact CO2 reduction sums up to 156 billion tons since 2006 On average jobs per year safeguarded or created Accumulated savings in heating costs of 1.5 million EUR Budget impact High leverage ratio investments/budget funds Job effects create additional tax revenues

11 Promotional effects

12 Structure 1. The Framework 2. Which Appoaches Do Exist? 3. KfW Promotion of Buildings 4. Promotion of Innovations 5. Lessons learnt

13 The Cutting Edge: Efficieny House Plus (e-mobility) KfW R. Hennes 10/2011

14 Model Schemes KfW R. Hennes 10/2011

15 Promotion of Renewable Energies The BMU is supporting the introduction of efficient technologies for the use of heat from renewable energies by grant through BAFA and KfW, e.g. Heat pumps Solar water heater and storage Geothermal hot water Biogas generation and more The programme conditions demand quite high efficiency standards and monitoring requirements. By this programmes market standards for certain Technologies have been set.

16 Structure 1. The Framework 2. Which Appoaches Do Exist? 3. KfW Promotion of Buildings 4. Promotion of Innovations 5. Lessons learnt

17 Does the framework have an impact on technical progress? Yes May be No Framework 100 W light bulb New buildings Solar water heater in new buildings Retrofit of buildings Efficiency of appliances in existing buildings Yes May be No Promotional Progr. Retrofit of existing buildings Window pane and frame Insulation materials Replacement of burner by condensed gas/oil burner?

18 Some Issues Various issues have been experienced in Germany 1. The announcement of a potential tax scheme in parallel to KfW loan scheme has delayed decisions to begin retrofit measures as investors were not sure, whether they would get a higher support under the tax scheme. 2. The requirements of EnEV and EEWärmeG were not fully harmonized (to be addressed in the next revision of the EnEV). 3. Possible double funding under the programme to promote RE and under KfW single measures required careful design of promotional criteria. A complex regulatory and promotional landscape requires permanent review and finetuning to avoid overfunding and to give the right signals to the decision makers.

19 Conclusions I The regulatory framework can only demand approaches which are based in a broad market. In many cases these are not appropriate to achieve the objectives of the political agenda. The regulatory framework is not effective in improving the energetic performance of the German building stock. However, the regulatory framework is effective in some areas including construction of residential housing (but only at a mediocre standard) The regulatory framework should be output oriented, and avoid overregulation. The regulatory framework has to be periodically reviewed whether it is in line with the changing requirements and improving technologies

20 Conclusions II Hence, to achieve ambitious objectives and to promote innovation, a basket of several approaches has to be implemented under the regulatory framework: Research on new technologies Pilot schemes to test new technologies under real conditions Promotional programmes to give incentives to those how invest in technologies at the better side of the market. Promotional programmes to give incentives to those who invest in areas not sufficiently covered by the framework (e.g. building stock) A system of information and counselling to inform, stimulate, motivate,.

21 Thank you very much!

22 Back-up

23 KfW s Business Model Funding by KfW and on-lending through retail banks Capital market State liability Institution owned by Federal Republic and federal states Funding AAA Rating Refinancing loan retail bank Loan to customer Customer Interest rate Interest rate Interest subsidy Margin for credit risk and handling German Government or KfW Promotional mandate defined by KfW Law Advantages: no distortion of competition Concentration on core competences Diversification of risks 23

24 KfW-Efficiency House standard KfW-Efficiency House standard definition Reduction of the complex legal requirements for energy efficiency to two values Primary condition annual primary energy demand compared to the value of a new building (reference building) Secondary condition structural heat insulation (specific transmission heat loss) likewise compared to the reference building

25 Promotional Stages of KfW Efficiency House KfW Efficiency House Consistent standard for retrofitting and construction Benchmark is legal requirement for new buildings single measures with high efficiency standards for a retrofitting step by step New buildings EnEV: 100 KfW-EH 70 KfW-EH 55 KfW-EH 40 Building stock EnEV: 140 Single Measures KfW-EH 115 KfW-EH 100 KfW-EH 85 KfW-EH 70 KfW-EH 55 Broad Scale Top Runner

26 Promotional Incentives Energy Efficient Construction one interest rate for financing Step up of bonus if efficiency target reached Step up of bonus if efficiency target reached One interest rate for financing 10,0% 5,0% --- Higher energy efficiency means a higher bonus Energy Efficient Refurbishment 12,5% 10,0% 7,5% 5,0% 2,5% Single measures ---

27 Promoting Energy Efficiency in the Residential Sector examples for the combination of renewables and efficiency measures renewables (heating and warm water) gas condensing boiler with solar thermal system Gas condensing boiler with solar system for warm water and heating support or Combined heat and power (fossil fuels) Heating system with wood pellets or Combined heat and power (renewables) Solutions for urban districts Energy Efficiency (building envelope) insulation of walls: 8 cm insulation of roof: 16 cm windows: 1,7 [W/(m²K)]* insulation of walls: 10 cm insulation of roof: 22 cm windows: 1,3 [W/(m²K)]* insulation of walls: 15 cm insulation of roof: 28 cm windows: 0,91 [W/(m²K)]* * W/(m²K):measure of thermal conductivity (the lower, the better the insulation) KfW R. Hennes 10/2011

28 Sie investieren in Anlagen zur Biogasaufbereitung Methanemissionen bis zu 0,5% Stromverbrauch bis zu 0,5 kwh Prozesswärme aus unterschiedlichen Quellen Tilgungszuschuss bis zu 30 % der förderfähigen Nettoinvestitionskosten max. Anlagengröße: 350m³/h (aufbereitetes Biorohgas)