Current Policy on Energy
CURRENT POLICY DEVELOPMENTS
The main energy saving policy due for adoption is the Energy Performance of Buildings Directive. The Directive will apply to almost all buildings, residential and non-residential, both new and existing. Member States are allowed to exempt certain categories of buildings, such as buildings of historical or architectural importance, religious buildings, and buildings of low occupancy or size. The requirements of the Directive are outlined in Box 8.1
Probably the best-known requirement
mandatory provision of energy certificates or labels to prospective purchasers of buildings or tenants. This is set to have high visibility and to have an impact on the property sector. A rough estimate
suggests that in Ireland over 100,000 sale or rental transactions per year will be affected (SEI, 2004).
The concept of “energy rating” of buildings has been in operation on a voluntary basis for several years in Ireland and other EU countries, most notably Denmark, and was signalled in the
National Climate Change Strategy in 2000. But as well as being mandatory, the scope of the Directive is considerably wider.
Box 8.1: Energy Performance of Buildings Directive
The main provisions of the Directive are as follows:
1. It sets out a general framework methodology for calculating the energy performance of buildings. Provision is made for a review of this methodology.
2. It requires Member States to set minimum energy performance standards (both for new build and major refurbishment) using a methodology based upon the general framework methodology. These standards are to be reviewed regularly. 3. For new buildings over 1000m2, the feasibility of alternative
energy measures is to be considered.
4. For buildings over 1000m2 undergoing renovation, energy performance is to be upgraded as far as is technically, functionally and economically feasible.
5. For almost all buildings, an Energy Performance Certificate (or energy rating) is to be supplied by the owner to a prospective buyer or tenant when constructed, sold or rented. This certificate may include a CO2 indicator.
6. The Certificate is to be accompanied by recommendations for cost-effective improvements to energy performance. (However, there will be no legal obligation on vendors or prospective purchasers to carry out the recommended improvements).
7. For buildings of over 1000m2 “occupied by public authorities
and by institutions providing public services to a large number of persons”, an energy certificate is to be posted in a prominent place.
8. Regular boiler inspection for particular classes of boiler or alternatively the provision of advice on best practice in boiler use and replacement. Inspection of large air-conditioning systems.
9. Assistance from the Commission for measures taken by Member States to provide information on heating systems and best use of energy in buildings.
www.sei.ie
T boile
A al for the EU Direct
end-use efficiency and energy services and the subsequent green paper esigned to launch debate (introduced above, CEC, 2005). The
he Directive will be transposed into national law on 4 January 2006, with an additional period of 3 years to apply fully the provisions on energy performance certificates and inspection of
rs and air-conditioning systems.
major new policy is the propos ive on energy
Eu
s (sometimes called ESCOs or ene
ns trading mechanism be
Ownership of energy saving items in the home (Scott, 1997). Cost-benefit analysis of upgrading energy efficiency of the
und ta sam le rec e con m
8.4
ropean Commission proposed in December 2003 to improve the way in which energy is used to achieve its purposes, such as heating, lighting and motive power. The Commission also proposed to promote the market for energy service
rgy service companies). Mandatory targets and obligations were proposed, including annual energy end-use savings targets of 1 per cent, in absolute terms or compared to business-as-usual in the case of economic growth (1.5 per cent in the public sector). Other proposals in the directive include the creation of conditions for the development of a market for energy services and for the delivery of other energy efficiency measures to end users such as reader-friendly meters and energy bills as suggested by O’Malley et al. (2003). Apart from these worthwhile proposals to help overcome the problems of awareness and information, the targets would appear to be better achieved by less cumbersome means such as by carbon taxes or by extending and improving emissions trading.
The details in the proposed directive on energy efficiency and energy services are revealing. The need for a framework and procedure for defining and measuring the ‘energy savings’ and for agencies to oversee the framework, verify the savings and report the results achieved points to the fact that energy use is determined by millions of micro-decisions. Influencing these is made simpler when the underlying pricing problem is addressed.
Indeed the Green Paper on Energy Efficiency or Doing More With Less highlights the lack of appropriate incentives and financing mechanisms and lack of information. In its list of key actions that might be taken is a suggestion of “… improving taxation, to ensure that the polluter really pays, without however increasing overall tax levels.” The Green Paper invites discussion on a number of pertinent questions, such as could the emissio
better harnessed to achieve energy efficiency.