STATUS IN DECEMBER Current status of Implementation of the EPBD I. ENERGY PERFORMANCE REQUIREMENTS

Implementation of the EPBD in Portugal STATUS IN DECEMBER 2014 1. Introduction The national implementation of the Energy Performance of Buildings Directive (Directive 2010/31/EU EPBD) started in 2007, based on three decrees published in 2006. The legislation was revised in 2013 to transpose the tighter requirements of the EPBD. The revision process had contributions from nearly 100 different stakeholder institutions, resulting, among others, in the improvement of the methodologies and the certification process based on extensive experience gained over the last years. As of November 2015, the new legislation has been in force for two years, and despite an initial adaptation period, the market seems to have adjusted to the changes. The requirement to have an Energy Performance Certificate (EPC) when advertising a building for sale or rent was a major change that contributed to increasing the number of EPCs issued every month. But the change was not only through legislation. ADENE, the Portuguese Energy Agency, has developed a strategy in order to upgrade the National Building Energy Certification System (known as SCE). These changes included the development of a new online platform to issue EPCs, a new EPC layout, a new website, and the publication of support documentation and guidelines for experts. The main goal was to better adapt the SCE to market needs. This report presents an overview of the current status of the EPBD implementation and the plans for its evolution in Portugal. It mainly focuses on energy performance requirements and EPCs, including quality control mechanisms, training of Qualified Experts (QEs) and information campaigns. 2. Current status of Implementation of the EPBD I. ENERGY PERFORMANCE REQUIREMENTS This section presents an outline of the transposition and implementation of the EPBD energy performance requirements in Portugal. It also describes the costoptimal procedure for setting requirements, the action plan towards Nearly Zero Energy Buildings (NZEBs) and plans for the implementation of the Energy Efficiency Directive (2012/27/EU EED) Articles 4 and 5. I.i. Progress and current status Energy efficiency requirements for residential buildings in Portugal were first introduced in 1991, and for nonresidential buildings in 1998. In 2006, the building codes were revised for all buildings due to the transposition of the Directive 2002/91/EC. These codes were again revised to transpose Directive 2010/31/EU. The process started in 2010, the technical committees completed their job by the end of 2012, and the legislation came into force one year later. The following sections describe how the national requirements evolved from 2006 to 2014, addressing the most relevant aspects of the revised building codes. AUTHOR Rui Fragoso, Pedro Mateus, ADENE NATIONAL WEBSITES www.adene.pt/sce, www.dgeg.pt, www.casamais.adene.pt

2 I M P L E M E N T A T I O N O F T H E E P B D I N P O R T U G A L S T A T U S D E C E M B E R 2 0 1 4 I.ii. Format of national transposition and implementation of existing regulations The calculation methodologies are based on using a reference building for comparison, and include the parameters presented in Table 1. The reference building is considered to be of the same type as the building under evaluation, but with reference values for the building components and technical systems Table 2, without the contribution of renewable energy and energy efficient solutions (heat recovery, etc.). The energy performance requirements established for residential buildings are set in terms of useful energy demand needs for heating and cooling. The total primary energy for heating, cooling and Domestic Hot Water (DHW) is also limited to a maximum value. There is a minimum renewable energy contribution required for DHW, based on a minimum solar thermal panel area for each building occupant. Non residential buildings have an energy performance requirement which limits the maximum primary energy for heating, cooling, DHW, and lighting. Table 3 presents the average values in terms of energy needs and primary energy and the corresponding requirements for buildings built before the EPBD, under Directive 2002/91/EC and after the publication of Directive 2010/31/EU. Table 1: Requirements included in calculations. Table 2: Minimum requirements evolution for residential buildings, envelope, ventilation and renewables.

I M P L E M E N T A T I O N O F T H E E P B D I N P O R T U G A L S T A T U S D E C E M B E R 2 0 1 4 3 Table 3: Energy performance indicators and corresponding requirements. I.iii. Cost optimal procedure for setting energy performance requirements The revised 2013 requirements presented in Table 3 were a major step towards improving the energy efficiency of buildings. These requirements were established considering the comparative methodology framework for calculating cost optimal levels published by the EC. The first report presented dealt with new residential buildings (apartments and single family houses) for different climates in Portugal, and the main goal was to test the methodologies for a range of materials, solutions and technical systems (e.g., insulation thickness, glazing types, heat pumps, etc.). This report concluded that the legislation requirements are close to the cost optimal levels as presented in Table 4 and that it is not necessary to change them. For non residential buildings, the study focused only on office buildings, the most representative building typology. The report concluded that the legislation requirements are outside the cost optimal levels range and that the reference building characteristics should be updated in order to have the legislation requirements within the cost optimal levels range. Most of the requirements will be tightened again in 2016 following the planned update of the national legislation. The building code is structured in a way that allows for a quick and easy update of requirements if necessary. Thermal comfort is ensured by the envelope requirements and by limiting the energy needs, making it cheaper for occupants to control their environments. Table 4: Cost optimal energy performance for residential buildings and office buildings in Lisbon.

4 I M P L E M E N T A T I O N O F T H E E P B D I N P O R T U G A L S T A T U S D E C E M B E R 2 0 1 4 In residential buildings, it is assumed in the energy calculations that there is a minimum requirement of 0.4 air changes per hour in order to guarantee the indoor air quality. For non residential buildings, minimum outside airflow rates are set depending on the building use, floor area and number of occupants. I.iv. Action plan for progression towards Nearly Zero Energy Buildings (NZEBs) The national action plan for the progression to NZEBs is supported by the revised legislation. The adopted definition of the NZEB establishes a relation with cost optimal evaluations. NZEBs are defined as buildings that cumulatively offer: a) components compatible with the upper level (most efficient) of cost optimal evaluations; and b) implementation of renewable energy that covers a very significant fraction of the remaining building needs. This energy must be produced on site (whenever possible) and/or, alternatively when local production may be insufficient, e.g., in urban areas as nearby as possible. This definition still needs to be complemented by additional numerical targets, e.g., with the share of renewables and U values for the envelope (or primary energy targets). Given that the NZEB definition is not yet completed, it is still not possible to provide examples and to know how many NZEBs are built in Portugal, although relevant buildings have been designed considering the NZEB principles. The legislation states that the building stock should progressively include NZEBs and that, by 31 December 2020, all new buildings will be NZEBs. New buildings occupied and owned by public authorities will be NZEBs after 31 December 2018. Although NZEBs are not fully defined yet, buildings with the A + label should be near NZEB level. I.v. Implementation of the Energy Efficiency Directive (EED) regarding building renovation and the exemplary role of public buildings Building renovation has been a longstanding government priority and different actions have been undertaken to promote it. The Portuguese National Renovation Strategy (under EED Article 4) focuses on several aspects related to building renovation, e.g., the current status of the current building stock (up to 452 million m 2 of built area. For residential and nonresidential), the evaluation of cost optimal approaches based on the current legislation, and steps to take until 2020. Certain flexibility to the requirements is allowed to building renovation, so that different cost optimal solutions can be considered in accordance with the building characteristics and differentiated between new and renovated buildings. Additionally, there is a link between the National Energy Efficiency Action Plan (NEEAP) and the Renovation Strategy, basically on programmes dealing with energy efficiency in buildings, integration of thermal Renewable Energy Sources (RES), e.g., solar thermal and biomass, as well as renewable energy in homes and offices. Financial incentives are also being considered, mainly in the form of programmes supported by European Union funds that will enhance building renovation through the implementation of energy efficiency measures and renewable energy systems in buildings. For residential buildings, there is a 311 M credit line available. Regarding public buildings, an Energy Efficiency Programme for Public Administration (ECO.AP) was launched. This programme aims to achieve a 30% improvement in energy efficiency in public service and public administration buildings by 2020. ECO.AP is an evolving program that sets energy efficiency measures to be implemented to buildings of public service, agencies and public equipment. It aims to change behaviours and promote the rational management of energy services, notably by hiring Energy Services Companies (ESCOs). The pilot phase includes 300 buildings. II. REQUIREMENTS FOR TECHNICAL BUILDING SYSTEMS (TBS) II.i. Coverage of heating, domestic hot water, airconditioning and large ventilation systems The legislation published in 2013 introduced new requirements for Technical Building Systems (TBS). These requirements focus on the need to transpose the EPBD and promote the building energy efficiency as a whole (rather than at an individual system level). Some of the requirements go beyond the EPBD, e.g., the introduction of energy efficiency requirements for lifts. The requirements are mostly supported by the European standards whenever available.

I M P L E M E N T A T I O N O F T H E E P B D I N P O R T U G A L S T A T U S D E C E M B E R 2 0 1 4 5 A set of design requirements is defined for heating and cooling systems and other technical systems, as shown in Table 5. The regulations define minimum efficiency requirements for heat pumps based on the Eurovent energy label scheme. Boilers and gas heaters must also meet a minimum efficiency requirement. Air handling units have to fulfil a minimum Eurovent label based on Standard EN 13053. For ventilation systems there is a requirement set in terms of maximum Specific Fan Power (SFP) according to Standard EN 13779. Heat pumps for heating, cooling and DHW must comply with the European Quality Label for heat pumps. Heat pumps for DHW must have a minimum Coefficient of Performance (COP) of 2.3 based on Standard EN 16147. Electric motors in pumps and fans have to fulfil a minimum energy label according to Standard IEC 60034 30. The legislation also sets minimum requirements for heating, cooling and DHW that pertain to generation, distribution, emissions and control of technical systems. Large ventilation systems are also addressed, with requirements on fan power and heat recovery. II.ii. Regulation of system performance, distinct from product or whole building performance In the previous legislation, the building energy efficiency was mainly imposed through the use of building performance indicators, setting specific maximum energy consumption rates for the whole building and for some specific energy uses, e.g., heating, cooling and DHW. The new legislation keeps most of these requirements and introduces additional requirements for technical systems that directly influence the whole building performance. This situation creates a more demanding scenario for designers, reducing their freedom to adopt less efficient solutions at a system level. II.iii. Applicability to new, replacement and upgraded systems in existing buildings New buildings and buildings that undergo major renovations have to fulfil requirements, although there are exceptions for existing buildings. Also, systems that are replaced or upgraded need to fulfil specific requirements. Exceptions are allowed in the case of buildings where the fulfilment of Table 5: Minimum requirements for technical systems.

6 I M P L E M E N T A T I O N O F T H E E P B D I N P O R T U G A L S T A T U S D E C E M B E R 2 0 1 4 requirements is not possible due to technical, functional, economic or architectural reasons. However, implementation of alternative measures for technical systems is nevertheless mandatory in such cases, and the alternative measures must not lower the energy performance that the building had before the renovation. All constraints must be identified in the design plans and stated on the EPC when available (an EPC is required for all major renovations). II.iv. Applicability to new buildings For new buildings there are no exceptions to the requirements. Given that the building is new, it is possible to properly plan and integrate the systems requirements, as this normally has a limited impact on architecture. II.v. Provisions for installation, dimensioning, adjustment and control It is mandatory that Heating, Ventilation and Air Conditioning systems (HVAC) with a thermal power higher than 25 kw have a detailed HVAC design project made by a qualified engineer. The HVAC distribution pipes, storage tanks and ducts must fulfil a minimum insulation thickness as presented in Table 6. The provisions for building management systems depend on the HVAC systems thermal power as shown in Table 5. The components of the building technical systems should have the 'CE marking' to guarantee that the product complies with the requirements of the relevant European health, safety and environmental protection legislation and their performance should be characterised based on a national or international energy label scheme, if available. II.vi. Encouragement of intelligent metering For new non residential buildings it is mandatory to have intelligent metering of HVAC equipment with electric power above 25 kw. The same applies for boilers with thermal power above 100 kw. New non residential buildings with thermal power above 25 kw must appoint an installation and maintenance technician (TIM) who guarantees the proper system installation. Existing nonresidential buildings with thermal power above 250 kw must also be supervised by a TIM that guarantees the proper maintenance of all systems. The TIM supervises all relevant activities and manages relevant technical information. Another task of the TIM is to promote the installation of energy metering systems in the buildings. Intelligent metering is also encouraged through requirements for the installation of building management systems in new buildings and major renovations. Existing buildings do not have any building management system requirements. II.vii. Encouragement of active energy saving control (automation, control and monitoring) New buildings with an HVAC thermal power above 100 kw must have a building management system, whether or not centralised. If the power is above 250 kw, the building management system has to be centralised and must at least comply with label C according to Standard EN 15232. III. ENERGY PERFORMANCE CERTIFICATES (EPCs) REQUIREMENTS III.i. Progress and current status on sale or rental of buildings ADENE designed, implemented and currently manages the SCE, which is based on a central registry and database with restricted access. QEs are the only persons allowed to issue certificates. They must be recognised architects or engineers with at least five years experience in building energy efficiency. To become a QE, candidates may attend optional training sessions but they all Table 6: Thermal insulation thickness requirements for air ducts, pipes and storage tanks.

I M P L E M E N T A T I O N O F T H E E P B D I N P O R T U G A L S T A T U S D E C E M B E R 2 0 1 4 7 have to pass a required exam offered by ADENE. Most of the QEs attended training sessions as per the new regulations in order to update their knowledge on building codes. Complementary training sessions are often promoted by ADENE to improve qualifications in specific areas, e.g., lighting, HVAC, RES systems and building simulation programmes. In terms of methodology, there were relevant changes to the legislation implementing Directive 2002/91/EC relative to those implementing Directive 2010/31/EU. In apartment buildings, each flat is certified individually. In non residential buildings, only one EPC is issued if the building has a centralised HVAC system. Figure 1 presents, on the left, the first page of the EPC for residential buildings. It also presents two alternative display layouts (A6 and A4 sizes) for nonresidential buildings. The main body of the EPC consists of 4 pages, presenting simple core information that is easily understood by the general public. The remaining pages provide detailed technical information regarding all the building characteristics that influence the energy performance. The energy label includes 3 energy efficiency indicators for heating, cooling and DHW. For non residential buildings, lighting indicators are also included. Each indicator determines if the building is more or less efficient compared to its reference. The energy label classifies buildings on an efficiency scale ranging from A + (high efficiency) to F (poor efficiency) and is based on calculations in terms of primary energy. Nominal CO 2 emissions and the amount of renewables are also listed on the front page of the certificate in a simple and practical way. Page 2 of the EPC for residential buildings informs the consumer about the quality of the envelope components based on a star rating. A higher number of stars represents a better component in terms of thermal performance (see example in Figure 2). Additionally, it is also possible to evaluate the building behaviour during the heating and cooling season and to get an idea about the building heat losses and gains, as shown in Figure 3. This data is calculated during the evaluation procedure and is different for every building or apartment certified. Figure 1: Three ways to display the EPC, in two different sizes. Figure 2: Example of how the EPC displays quality stars for the envelope components, as indicated on the 2 nd page of an EPC. Figure 3: Example of heat losses and gains balance as indicated on the 2 nd page of an EPC.

8 I M P L E M E N T A T I O N O F T H E E P B D I N P O R T U G A L S T A T U S D E C E M B E R 2 0 1 4 Figure 4: Database energy label distribution. Figure 5: Evolution of the total number of EPCs issued for residential and non residential buildings. Figure 6: Evolution of the number of EPCs issued for large nonresidential buildings. Page 3 is dedicated to improvement measures and recommendations identified by the QE. It is possible to get a clear picture of which areas should be addressed during the decision process. Page 4 includes definitions, notes and statistical information about the distribution of energy labels in each residential EPC, as shown in Figure 4. This provides information to the building owner on how efficient the building is when compared to the market average. As a replacement of the mandatory inspections required by the EPBD, a first initiative was developed that introduced, within the new EPC layout, a section including advice to the building users. This section focuses on the importance of the heating, cooling and DHW systems according to the total energy consumption of the building. It also recommends regular inspection and maintenance of this equipment. For new equipment, the importance of properly selecting and sizing and the corresponding benefits are also addressed. The implementation of the EPC has been very successful for buildings being sold. On the other hand, the rental market was slower in taking up the EPC, and only in the last year has it increased. The latest analysis of the EPC database clearly shows that the number of EPCs issued for rentals is on the rise. The current trend in the market shows a shift from the number of building sales and an increase in rentals. The new regulations therefore contain stronger control mechanisms that promote the increase of EPCs for rentals. One of those mechanisms is the obligatory advertisement of the EPC label before the building is rented or sold and when offered to the market. Figure 5 presents the evolution of the total number of EPCs issued every year since they were initially implemented in 2008. Currently, around 15,000 EPCs are being issued every month, covering nearly 90% of the licensing and selling processes that take place in the country. Furthermore, a national database of certified buildings is being developed with up to date information. This will be used for monitoring the progress of the different aspects of the implementation of the EPBD, from basic statistics, e.g., the number of certified buildings, to impact assessment, including estimated energy savings. It is worth noting the large increase in registrations for 2014, due to the start of the mandatory requirement for including the energy label in advertisements for sale and rent. Figure 6 presents the evolution of the number of EPCs issued for large nonresidential buildings, which shows that this is an ongoing process that has been growing positively. For non residential buildings, the EPC layout was developed in order to provide added value information for the energy managers of these buildings. This includes a bar chart that provides the breakdown of the different final energy sources and a bar chart to provide practical information about the energy consumption by energy use for the different parts of the building, as shown in Figure 7. An EPC issued for a non residential building is valid for 6 years. In 2013, 8 non residential EPCs have undergone a Quality Assurance (QA) assessment based on a full check of the input data and results.

I M P L E M E N T A T I O N O F T H E E P B D I N P O R T U G A L S T A T U S D E C E M B E R 2 0 1 4 9 1 2 Currently, 90% of the EPCs in the database have been issued for residential buildings and 10% for non residential buildings. An EPC for residential buildings typically costs from 135 to 465. These figures include the costs for the expert (between 100 and 400 ) and the registration fee at ADENE s database, which for residential buildings ranges from 35 to 65. An EPC for non residential buildings may cost between 2 /m 2 and 5 /m 2 plus the registration fee. The fees for nonresidential buildings range from 150 for buildings with a floor area up to 250 m 2, to 950 for buildings with a floor area above 5,000 m 2. The QA assessment starts with an automatic software check of input data during the EPC issuing process, in order to avoid potential mistakes before even issuing it. After the EPC has been issued, there are another two QA stages: a simple QA check and a detailed QA check. The simple QA check is based on a straightforward visual verification of the form and the EPC, checking its accordance with the defined methodologies, without any complex calculations or additional information requests from QEs, and this is performed on a random sample of the EPCs issued daily. The detailed QA check includes a full data review of calculations and a building audit, in order to check the compliance with the requirements and methodologies. Such an audit involves checking all the supporting documentation prepared and used by the expert (e.g., projects, drawings, reports, photos, etc.) and identification of eventual differences and mistakes that occurred. It has proved to be an important tool in improving the work of the QEs. Until the end of 2014, about 19,000 EPCs have undergone (or are undergoing) a QA assessment. This means that around 2% of the total EPCs issued were audited. In 2013 and 2014, about 1,293 and 2,907 EPCs respectively have undergone some kind of QA assessment. In the worst case scenario, the QA process can lead to a fine, (so far, fines have been imposed on 7 experts). In general, when the QE does not comply with the regulations, he is required to correct the calculations and issue another EPC (with fees paid by the experts themselves, when applicable). In order to evaluate the work of QEs and consumer satisfaction, a mystery client strategy has also been put in place. This strategy was based on selecting QEs that were contacted by homeowners to issue an EPC. The homeowners were previously informed about the need to evaluate the QE's work and were asked to fill in an evaluation questionnaire assessing the expert's work. III.ii. Progress and current status on public and large buildings visited by the public In Portugal, the definition of a public building includes every non residential building owned by private or government bodies. This definition is much wider than the strict interpretation of the EPBD requirements. Every non residential building larger than 500 or 1,000 m 2 (depending on typology) is required to display an EPC at the main entrance, which is valid for 6 years. Currently, there are nearly 6,000 non residential buildings certified and many more in the process of being certified. This has been the building typology where most difficulties were found in implementing the EPBD requirements in Portugal. III.iii. Implementation of mandatory advertising requirement Advertising the energy performance indicator was not a requirement before the EPBD, although some real estate agents have advertised the energy performance of top class buildings. Figure 7: EPC displays of energy consumption by energy use and building typology.

10 I M P L E M E N T A T I O N O F T H E E P B D I N P O R T U G A L S T A T U S D E C E M B E R 2 0 1 4 Figure 8: Example of an advertisement including the energy label. Figure 9: Model to be used in advertisements for the energy efficiency label. Figure 10: Leaflet on energy certification process. Since December 2013, it is a requirement to include the energy performance indicators in all advertisements, and the real estate market has been gradually doing so. The requirement to include the EPC in advertising has been one of the major legislation changes, and seems to be the reason for the increase in the number of EPCs issued in 2014, as presented before in Figure 5. Besides owners, also real estate agents need to guarantee that the EPC label is displayed in advertisements. In order to facilitate the information exchange between the EPC and the advertisement, ADENE, together with the Portuguese real estate association (APEMIP), opened up access to the EPC database for real estate agents. Through this information exchange, it is possible for users to crosscheck information between the databases and to update it. A manual provides guidelines and examples on how to display an energy label in advertisements. An example is presented in Figure 8 and the model for the different energy labels is presented in Figure 9. In spite of all the efforts, several cases of non compliance were identified and reported and, in those cases, real estate agents were asked to provide the minimum amount of information to the public (with the EPC label). Noncompliance may lead to infringement procedures, which may in turn result in fines of up to 45,000, but no fines have yet been imposed. III.iv. Information campaigns To promote and enhance the SCE, ADENE launched an advertising campaign. In the first year (2007) the campaign s slogan, Let's save energy to save Portugal, was displayed on television channels, in the press and on the internet. The promotion of EPCs has been based on ADENE s staff participation at different kinds of events, e.g., fairs, workshops, conferences and seminars all over the country, playing an active role in disseminating the advantages of the EPC and stressing the importance of implementing the improvement measures. In these events, ADENE also displayed an online interactive energy performance simulator for households, "CasA+", at www.casamais.adene.pt. The impact of the information campaign was assessed in 2010. The results revealed that 76% of the inquired participants had already heard about the EPC, and among those that already had an EPC, 75% would recommend friends and relatives to obtain an EPC. This study also revealed the importance of the EPC recommendations for those who implemented them. Currently, the focus has been on presenting the new regulations in conferences and seminars all over the country, including municipalities and various stakeholders. In order to inform homeowners about the energy certification process, a leaflet was developed that presents guidelines to support them on the consumer level, namely hiring a QE and providing the needed documents. Figure 10 presents one of the leaflet pages. Figure 11: Energy label distribution for new and existing buildings.

I M P L E M E N T A T I O N O F T H E E P B D I N P O R T U G A L S T A T U S D E C E M B E R 2 0 1 4 11 III.v. Coverage of the national building stock As of December 2014, more than 800,000 EPCs were issued since the scheme's launch in July 2007 in response to the requirements of the EPBD. Residential buildings represent 90% of the total EPCs issued. Considering that the number of residential building units in the country is close to 5.9 million, according to the National Statistics Institute (INE), it is possible to conclude that currently a little more than 10% of the residential building stock has an EPC. Figure 11 presents the distribution of energy labels of the current building stock. For existing buildings the most common label is C, while for new buildings it is B. In 2014, around 10,655 EPCs for new buildings and 169,452 EPCs for existing buildings were issued. III.vi. Other relevant plans The EPC is being progressively required in tendering processes and for obtaining public funding and, e.g., to apply and receive financial incentives from the national Energy Efficiency Fund (FEE) and from the National Strategic Reference Framework (QREN). Additionally, the EPC will play an important role when it comes to implementing EU structural funds, mainly under the Portugal 2020 initiative, and not only identifying which buildings should be addressed but also validating the implemented improvement measures. IV. INSPECTION REQUIREMENTS HEATING AND AIR CONDITIONING (AC) SYSTEMS In 2006, Portugal officially adopted option a) of Article 8 of Directive 2002/91/EC, establishing a regular inspection of boilers. The inspection of boilers as well as of Air Conditioning (AC) systems was, however, a challenging issue due to the specific climate characteristics of the country. Boilers and AC systems only operate for relatively short periods of time during the year. Thus, the relevant energy consumption is very low. This means regular inspections are not a high priority in terms of cost effectiveness. Considering these difficulties, the transposition of the EPBD in Portugal no longer imposes regular inspections, and instead allows for alternative measures (e.g., provision of advice). IV.i. Report on equivalence Portugal is still working on the equivalence of the alternative measures, given that it was not yet possible to evaluate the impact of the campaigns. IV.ii. Progress and current status on heating systems Inspections are not mandatory, although in order to promote the correct installation and maintenance, buildings with a thermal power above 25 kw are required to have systems installed and maintained by a TIM. The TIM is an experienced engineer or a trained technician that supervises these activities and manages all the relevant technical information. Additional tasks include the design and implementation of a maintenance plan, which is mandatory for buildings with a thermal power above 250 kw. There is a plan to provide targeted advice to users concerning the replacement and maintenance of heating systems with boilers and AC units, other modifications to heating and cooling systems, and alternative solutions to assess the efficiency and appropriate sizing of the boilers or AC units. This plan complements the EPC in delivering information whenever the QE finds a boiler and/or an AC system in the building. Information about this subject will be distributed to relevant stakeholders in the market and technicians dealing with boilers and AC systems, to cover the rest of the existing building stock. Professional associations dealing with these technical systems will also be engaged when necessary. 3. A success story in EPBD implementation The EPC as a key driver for the success of the energy strategy in the building sector The EPC was introduced into the market in 2007. The layout was strongly revised and enhanced in 2013 to become more understandable and to provide added value information that focuses on the relevance of the EPC for a homeowner or building manager. Its importance in the market has been steadily growing. The EPC is now a tool that informs citizens about their buildings' efficiency and how to improve it. Of course, the positive impact of this tool goes far beyond being an informative label for consumers. The EPC feeds a database that has now more than 800,000 EPCs. It is currently used to produce statistical information regarding the energy efficiency of the building stock and its energy efficiency evolution. This is key information to developing energy efficiency policy, and it allows for the development of financial incentives that should be introduced into the market.

12 I M P L E M E N T A T I O N O F T H E E P B D I N P O R T U G A L S T A T U S D E C E M B E R 2 0 1 4 Concerning economic perspectives, the EPC label also has a significant impact on taxes and building market value. The energy label has been increasingly used by municipalities to reduce taxes for the most energyefficient buildings. These buildings may also increase their market value as a result of the EPC. Preliminary studies indicate that an increase of about 5% to 10% may occur for higher grade buildings. The display of the EPC label in advertisements highly promotes the EPC's visibility and influences the decisions of potential building buyers. This creates pressure on building owners to implement the energy efficiency recommendations included in the EPC, to improve their buildings' labels. One of ADENE s strategies for promoting this is exempting the EPC issuing fee after implementing recommendations. The EPC also has an environmental component, as for buildings it includes annual CO 2 emissions indicators plus the share of renewables, although it could easily include other parameters to provide indicators of a building's sustainability. The conclusion is that the EPC has been a key driver for the success of the energy strategy in the building sector, mainly with a revised, 'more appealing' version. In the near future there are still developments to be implemented, namely to provide more information about the TBS, to adapt the EPC to the NZEBs concept and to display, when available, energy labels for building components. 4. Conclusions, future plans The Portuguese National Building Energy Certification System (known as SCE) has been in place for seven years. During this period, many efforts and developments took place to allow reaching the current high level of Energy Performance of Buildings Directive (EPBD) implementation. Directive 2010/31/EU brought new challenges to the SCE, which inevitably led to its evolution and the improvement of gaps identified during its development. The new legislation, published in 2013, paves the way towards Nearly Zero Energy Buildings (NZEBs) and sets up a roadmap for tightening the energy performance requirements progressively. Nevertheless, the legislation by itself will not be enough to push the market towards the EPBD goals. Thus, several other strategies are being implemented to address this issue. This includes enhanced control mechanisms to promote the full SCE implementation. The NZEB action plan will also be a key tool in reaching real energy savings. However, the challenge will be on how to promote NZEBs in a cost effective way. The continuous increase in energy prices will certainly stimulate the adoption of energy efficient materials and technologies on top of demand for better buildings. In this process, the end user needs to be aware of how efficient the products are. One of the strategies for achieving that relies on strengthening the role of energy labels and proper communication with the public. Building components and systems are a natural target for these labelling systems, and the aim is to go beyond the building labelling practice and expand into the component labelling practice, in close cooperation with relevant market stakeholders. To evaluate the impact of the EPBD implementation into the market, it will be fundamental to monitor the implementation of recommendations proposed in the Energy Performance Certificate (EPC). One of the strategies to achieve this is exempting the EPC issuing fee after implementing recommendations. Another one is the implementation of other means of communication.

I M P L E M E N T A T I O N O F T H E E P B D I N P O R T U G A L S T A T U S D E C E M B E R 2 0 1 4 13 The sole responsibility for the content of this report lies with the authors. It does not necessarily reflect the opinion of the European Union. Neither the EASME nor the European Commission are responsible for any use that may be made of the information contained therein. The content of this report is included in the book 2016 Implementing the Energy Performance of Buildings Directive (EPBD) Featuring Country Reports, ISBN 978 972 8646 32 5, ADENE 2015 More details on the IEE Programme can be found at ec.europa.eu/energy/intelligent This individual report and the full 2016 book are available at www.epbd ca.eu and www.buildup.eu