Buildings Sector Energy Efficiency & Renewable Energy Investments
Office buildings are a major energy user in the commercial business sector and play a major role in efforts to increase energy efficiency. Energy represents as much as 30 percent of a building's operating costs. Now consider this: undertaking energy efficiency measures can reduce energy consumption - and thus, utility bills - by 30 percent or more. These savings add directly to the bottom line. Increased asset value is another benefit derived from energy efficiency measures. For every $1 invested in energy efficiency, asset value can increase by an estimated $3. That means that energy efficiency can be used as a low-risk, high-return investment. Savvy business managers are coming to appreciate that energy efficiency is an excellent means to spur internal growth, especially in income properties where any reduction in operating costs directly translates into an increase in net operating income (NOI). In tight real estate markets where the ability to grow through investments in building or buying may at times be constrained, increasing NOI is a viable alternative. Finally, most energy efficiency measures also improve the comfort and attractiveness of the indoor environment. This is common sense. Lighting retrofits, for example, reduce energy consumption and improve visual acuity. Better vision, in turn, helps workers complete tasks and reduce eyestrain. Likewise, upgrades in heating, ventilating and air conditioning equipment reduce energy costs and improve indoor air quality – all of which are known to increase comfort levels.Eligible projects in the Buildings Sector include:
- replacement of old and low efficient boilers by new efficient ones with or without fuel switching
- implementation of on-site micro-cogeneration/tri-generation
- rehabilitation of heat substations and implementation of heat meters
- balancing of heating systems, implementation of individual heat control devices
- implementation of Building Management Systems
- replacement of existing windows with new, double-glazed windows, low-emission glazing
- thermal insulation of the building envelope (external walls, roofs, basements)
- replacement of existing heating system with a new one (thermal insulation of pipes, tanks and machinery equipment)
- installation of heat recovery from air ventilation system and/or processes (e.g., installation of economizers for pre-heating purposes)
- replacement of existing low efficient energy using processes (e.g. cooking, washing, drying) with new, high efficient ones
- replacement of existing lighting with high efficient one, dimming, daylight sensors, presence sensors, algorithmic lighting, grouping of luminaries
- free cooling
- compressor replacement/rehabilitation
- additional shading (jalousies, structural elements, etc.)
- frequency modulation of pumps, fans, drives and motors
- variable air-volume air-conditioning systems
- installation of rolling doors
- implementation of renewable energy systems in buildings (e.g. solar thermal collectors, biomass boilers, geothermal energy utilisation for heating and/or cooling with or without heat pump, surface water energy utilisation for heating and/or cooling with heat pump, solar heating and/or cooling)
Buildings Sector projects should achieve an ESR equal or greater than 30% as measured on an annual basis, all things being equal.
Not Eligible are the following projects:
- Investments in new buildings that are already subject to energy efficiency standards set at country level
- Investments in real estate solely with the aim of making short or medium term profit on sales are excluded.
- Purchase, rent or leasing of land and existing buildings