Round Table Meeting to discuss Energy Efficiency Potential in Residential Buildings and Key Recommendations from the Experts Oct 4, 2017 New Delhi Development of ECBC-R code for Multi-storey Residential buildings & its implementation

… is a German Federal Enterprise in the field of International Co-operation for sustainable development We are commissioned by German Federal Ministry for Economic Cooperation and Development (BMZ)/ and other Federal Ministries (BMUB/BMWi)

Objective of the round table meeting is to discuss ECBC-R development – vision, relevance, and need ECBC-R Implementation – limitation and opportunities Building material & technology – availability & affordability Approach towards residential building labelling Potential Incentivization Mechanism

Presentation Overview Residential energy use projection Cost implication of energy efficiency Benefits perceived internationally What energy efficiency has for the society?

Residential Energy Use Projection

Residential floor space projection 6x 1. In 2015, the rate of urbanization was 31%. Niti Ayog estimated that the same would increase to 51% by 2047 In 2011, 53 Indian cities had a population more than 1 million. That would rise to around 77 cities by 2030 itself. As per UN report, India is projected to add 300 million new urban residents by 2050 . 2. Per capita residential floor space to rise 35 sqm by 2050 from the 10.8 sqm in 2012 3. Housing for all by 2022 4. 100 smart cities to be developed in India Source: Niti Ayog,UN Report, KPMG and GBPN

Residential Energy Projection Primarily because of three factors – 1) aggressive policy and market-driven approach, 2) high efficient HVAC, Lighting, Fans 3) Around 50% compliance of ECBC and 10% compliance to advance EE codes Primarily because of three factors – 1) Market-driven strategies like voluntary use of star labeled product 2) ECBC-R 2019 – Minimum efficiency requirement. The scenario assumes a 5% use of ECBC envelopes in new buildings Primarily because of three factors – Very high efficient HVAC, Lighting, Fans Very high efficient equipment - 18% of the household appliances in residential sector by 2047 are high efficiency ones. 3) 90% penetration of ECBC and 30% penetration of advance EE code which 25% better than ECBC 1. Compared to 2015, India’s space cooling demand to rise 12 times by 2050. Higher electricity use for appliances as well. CAGR – 5.4%, 6X CAGR – 4.5%, 4.5X 2. 24X7 electricity for all by 2018. This will ensure greater availability of electricity for residents CAGR – 3.7%, 3.5X 6X 3. Demand push - Housing for all by 2022 and 100 smart cities CAGR – 2.8%. 3.5X 3X 4. Exponential increase in population Possible reduction of 58% from the BAU by 2050, if we adopt the very aggressive scenario. Source: GBPN, September 2014

Residential Energy – Potential road map Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Notify ECBC-R in few states (envelope focused) + EE financing +S&L Notify ECBC-R in all states (envelope focused) + S&L Stringent ECBC – R + Retrofit programs +Advance EE equipment Further Stringent ECBC-R + Advance EE equipment Very advanced & stringent ECBC-R + very high efficient equipment Following the Potential Target path could help India save in total 4.6 billion tCO2 emissions (approx.) in next 33 years Possible reduction of 45% from the BAU Possible reduction of 50 % from the BAU ECBC – R 2019 ECBC – R 2025 ECBC – R 2030 ECBC – R 2035 ECBC – R 2040 ECBC – R 2045 ECBC – R 2050

Cost implication of energy efficiency

Energy efficiency may increase cost of construction Examples of few factors that may increase the cost of construction: Insulation materials High performance glass and shading LED lightings and other EE equipment Consultation cost of experts

Energy efficiency may increase cost of construction Examples of few factors that may decrease the cost of construction: Reduced sizing of HVAC due to efficient building envelope and orientation Materials likes AAC blocks or fly ash bricks reduces the labor requirement and further reduces the steel and cement cost because of the decrease in the dead load on the civil structure.

The combined effect of all the factors may lead to just an insignificant cost implication on the construction industry – particularly at the beginning stage of ECBC-R Energy efficiency will not only save money but also make money for those, who apply and utilize it

Benefits perceived internationally

Benefits perceived Internationally Energy efficiency is the economical, ecological and social imperative of the 21st century. Helps to stop climate change and its impact …and enhances the international competitiveness Reduces import dependence on fossil energy sources from crisis regions Eliminates energy poverty from exploding energy costs Creates sustainable jobs Ensures real energy security An increase in energy efficiency...

Benefits perceived Internationally Energy efficiency potential utilised by sector Untapped energy efficiency potential Realised energy efficiency potential 82 % of the economic potential to improve energy efficiency in buildings remains untapped in the period to 2035

Benefits perceived Internationally – CHINA In 1986 China has implemented its first Building Energy Code, which resulted in a 40 % reduction in CO2 Emission

Benefits perceived Internationally – GERMANY Since the 70th, Germany became a leading country promoting new building material and technology 25 %   1.6 trillion INR per year Energy consumption in buildings Energy savings in buildings predicted between 2007 and 2020 McKinsey 2010

What energy efficiency has for the society?

to different parts of Society in India Benefits of ECBC-R to different parts of Society in India     Developers, Investors, Builders Public / Society     Manufacturers & Suppliers of Building Material Professionals & Service Providers       Financial Institutions Policy Makers & Government Home Owners & Residents

Manufacturers & Suppliers of Building Material 1. New business opportunities due to growing market 2. Early birds will have better recognition on the Indian Construction Market (Day 1 and 2 (as insulation people are coming on second day)The market volume for EE and Green Building Material and Technologies will reach INR 19 Trillion (USD 300 Billion)   Manufacturers and Suppliers of Building material getting involved right at the beginning of the campaign will find better recognition on the Indian Construction Market due to the involvement in modern and innovative materials for construction projects It will provide an excellent opportunity for the Indian manufacturers of Building Material and Technology to undergo diverse research exercises to come up with innovative and most appropriate technologies in order to meet the requirements from the ECBC-R 3. Opportunity to undergo research on innovative technologies

Home Owner & Residents 2. Saving daily energy cost 1. Increasing level of living and working comfort 2. Saving daily energy cost ALL DAYS 3. Energy Efficiency Labels will enable house owners to sell or rent-out their buildings/apartments easier and with more profit

Professionals and Service Providers 2. Requirement to improve quality of design and engineering services 1. Involvement as advisors, trainers and energy assessors 3. EE measures on buildings are the base requirement for the effectiveness of future smart city programs DAY 1

Public / Society Saving energy cost (mainly from cooling and heating)   Saving energy cost (mainly from cooling and heating) New Business Models, particular for the Small and Medium Size Industry sector (including many new niche products and services), will create many new job opportunities, which result in better living standards More secured energy supply for the public Better lifestyle and health due to better climatic comfort in buildings and apartments Bringing down energy bills which will have a favourable social effect Will create new markets & products & jobs ALL Days

Overall Impact to power Japan for one year.”   “Efficiency improvements above 2000 levels in IEA member countries saved enough energy in 2015 to power Japan for one year.”  

Session 1 – ECBC-R DEVELOPMENT AND ITS IMPLEMENTATION What kind of Barriers to be expected? Building Technology and Material - Actual Status? Outreach and Campaign – what are the options? Regulatory issues Approval process Monitoring, Reporting and Verification Measurement Bureaucracy

Session 2 – Certification and labelling Benchmarking (different types, zones, etc.) Procedures Professional involvement in the certification process Compliance Tool (automations…) Marketing Building Material and Technology labeling – included? (Marketing Tool)

Session 3 – FINANCING ENERGY EFFICIENCY IN BUILDINGS Financial Taxes Regulatory Gap depreciation Any other kind of incentives

Thank you