Presentation from the 2013 Atlantic Council Energy & Economic Summit expanded ministerial meeting. Presented by Marina Olshanskaya, UNDP-GEF Regional Technical Advisor, United Nations Development Programme.
Energy Efficiency in Buildings: Europe and Central Asia
1. Energy Efficiency in Buildings:
Europe and Central Asia
Marina Olshanskaya
UNDP-GEF Regional Technical Advisor
Expanded Ministerial Meeting: Energy Efficiency for Economic Growth
Atlantic Council ENERGY &ECONOMIC Summit
Istanbul, November 21, 2013
2. UNDP-GEF Portfolio on Energy Efficient Buildings
•
$ 800 m ($150 m from GEF) for 45
projects
•
Over 40 countries, mainly in Eastern
Europe and Central Asia
1
3. Energy Efficiency at Local, National, Regional Level
BEFORE
Household
Regional /
Global
AFTER
Standards
and labels for
EE household
appliances
Community
Building
Energy
Efficiency
Retrofits
National
Municipality
Energy efficient
district heating
National
Energy
Efficiency
Programs
Global
Program
Framework
for Low
Emission
Buildings
Objective: achieve market transformation and increase uptake of energy efficient
technologies and practices at household, community, municipal and national level
2
4. Buildings - the largest energy
2010
consuming sector in Eurasia
Buildings
Industry
Agriculture
Industry
Agriculture
Buildings
Others
Others
kWh/m2/yr
600
500
400
E
300
K
200
33%
100
35%
33%
35%
0
EU 15
Kyrgyzstan
2%
2%
30%
30%
Final energy consumption by sector in non-OECD Europe
and Eurasia, 2010
with BIG potential for
improvement
Sources: OECD/IEA, UNDP/GEF Project Reports (Kyrgyzstan and Turkmenistan)
3
5. Over 50% energy can be saved cost-effectively
Sources: UNDP/GEF Project Report, Uzbekistan , 4 4
6. in Bulgaria, Uzbekistan, Montenegro - everywhere
BEFORE
AFTER
Source: UNDP/GEF Project Reports
5 5
7. efficiency is not only about energy …
Sources: UNDP/GEF Project in Uzbekistan
6
8. Where are the bottlenecks: market fails
No effective demand for “negawatts”:
• Tariffs remain low, but not everywhere
and not that low
• Tenants - disorganized, ignorant about
EE and often poor
• Municipalities lack capacities
Supply of technologies, services and
financing inadequate:
Electricity prices for households vs energy recovery cost
• ESCOs are few, with poor financial
standing and ability to attract capital
• Financing – does not match risk/reward
profile of building EE projects&clients
• Domestic EE products, materials, skills
are in short supply (and expensive)
Share of household spending on energy in Tajikistan
Sources: UNDP 2013 (forthcoming)
7
9. Solutions: Leadership
Policies and their systematic implementation
• One EE Law is not enough
• Tariffs, Housing Relations, Budget Code,
Building Codes, Public Procurement, etc
Public sector has to lead by example:
• Croatia: Energy Management System covers
11,000 public buildings, annual saving to state
budget - 18 mln US$
•
Energy Charter of Croatia signed by ALL
regional and local authorities
Kazakhstan: National Modernization Program
– public commitment to invest 640 mln $ in
building modernization till 2020
Visit of Kazakhstan President Nazarbaev at pilot
energy efficient building in Karaganda, KAZ
Sources: UNDP/GEF Projects in Croatia and Kazakhstan
8
The scope UNDP-GEF projects vary from local to national and regional with the main focus being on creating enabling policies and market environment for investment in building energy efficiency
Since 1990 - a notable trend is the rise (17%) of final energy consumption in the buildings sector in both absolute and relative terms: by 2010 it reached a 35% share in the total final energy consumption. It is now the largest energy consuming sector in Europe and Central Asia (in OECD the change was less dramatic, building sector used to be and remain largest energy user: 39%)Building energy use is characterized by high inefficiencies, especially in CIS, where it takes 2-4 times more energy to heat same space, as in EU countries with similar climatic conditions. Inefficiencies translate into dissatisfaction with quality of heating and rising energy billsNext slide please
Important to note that benefits of EE goes far beyond energy and monetary saving, as illustrated in the picture of a school in Uzbekistan and conditions there before and after EE retrofit
Next slide please
To correct these fundamental market failures, strong political commitment and leadership at all level, including the highest is needed. This is well illustrated by the following examples. Croatia:The Government, central and local, introduced and established energy efficiency as a policy priority and as a practical tool for effective housekeeping in the whole public sector in the country, including local and county authorities, as well as central government ministries and agencies. With UNDP-GEF support it has implemented Energy Management System covering practically all public facilities in Croatia. The country became a leader in EMS in public sector in Europe (and globally).Grant funds served as seed money, but it was the local funding that actually allowed country wide roll-out and implementation of EMS in the whole public sector.Kazakhstan: The Government adopted National Program on Housing and Utilities Development . It made mandatory the implementation of EE measures in all residential buildings undergoing major retrofits resulting in energy saving of 30-50%/per building. It also allocated state financing for building retrofits in the amount of 640 mln US dollars in 2011-2020. Grant funds served as seed money to demonstrate cost-effectiveness of thermal modernization and help design ESCO model for their implementation. Next slide please