A new analysis has revealed within 15 years a significant proportion of the building stock in Germany can be renovated cost-effectively while achieving energy savings…
Germany’s building stock can be renovated cost effectively to ensure significant energy savings at little cost. This is according to a new analysis from the Buildings Performance Institute (BPIE).
The BPIE said the creation of a comprehensive policy framework could revolutionise Germany’s building stock. This could be achieved through a series of measures aimed at lowering transaction costs, increasing energy price signals, and through the use of targeted subsidies.
By April 2017 all EU countries must submit a national renovation strategy as part of Article 4 of the Energy Efficiency Directive. The first version of this strategy had a May 2014 deadline. This failed to achieve its purpose, as it mainly set out existing policies.
In November 2015, the Energy Efficiency Strategy for Buildings was announced. This required economic drivers to be addressed, rather than subsidies only. By applying the right policy levers, Germany can develop affordable, but deep renovation measures that would improve building performance.
The analysis revealed that all buildings, excluding those 20 years or younger, could be renovated with a positive pay-back within the next 15 years. To do so, the current existing policy framework would have to be amended, but it would allow the nation to move closer to achieving its long term goal of decarbonising the building sector.
Like all European member states, Germany has its own CO2 reduction targets to meet by 2020, aiming for minus 40 per cent. The BPIE analysis said the country could undertake affordable renovation measures, which would improve carbon output, with the right policies in place.
The analysis, which was undertaken in collaboration with TU Vienna and the Fraunhofer Institute ISI, used the Energy Savings Cost Curves (ESCC) to reach its findings. The ESCC plot revealed the cost effectiveness of renovation from the perspective of the investor or building owner.
The BPIE said investor confidence would be a key factor in pushing renovation. There also neede to be suitable policies in place such as feed-in-tariffs or tax reduction for property owners who undertake renovations.
The report called for greater financial support, with money targeted where it is most needed. It said KfW, which provides a financial support system, could be expanded further to stimulate renovation of some building types. This could be aimed at properties that have high energy saving potential but would not necessarily undergo renovation due to limited return on investment.
Additionally, training programmes alongside targeted advice could increase awareness about renovation options and lower transaction costs.
