Instruments for Improving Energy Efficiency in Finnish Housing Conference on Energy Saving Measures in High-rise Residential Buildings and Financial Mechanisms Tallinn, May 9, 2005 Ilari Aho Motiva Oy

Presentation outline Housing stock characteristics Framework for energy and construction policy Main policy instruments for energy efficiency Examples

Motiva Ltd Fully government-owned company Develops and carries out projects for the implementation of the national climate change strategy Turnover 4 M, personnel 30 Main clients: Ministry of Trade and Industry Other government ministries European Commission National technology agency TEKES the private sector

Finnish Building Stock (1995) 0,0 50,0 100,0 150,0 200,0 250,0 300,0 < Year of construction Mill. m³ Offices Education Health care Commercial Summer cottages Blocks of flats Row housing Single family houses

Energy consumption for space heating Apartment buildings Year of construction Energy consumption (kWh/m³/year) 3 % 9 % 21 % 39 % 61 % 79 % 91 % 97 %

Young building stock and policy priorities Young building stock means in principle reasonably good technical condition relatively good starting point in energy performance economic life spans not yet at their end Resulting policy priorities strong emphasis on practices for building management and preventive maintenance development of concepts for the upcoming refurbishment period

Energy and climate strategiesLand Use and Building Act Construction Policy Programme Governments Energy Conservation Programme Voluntary Energy Conservation Agreements Energy Audit Programme Technological R&D Programmes Development Initiatives within Individual Property and Construction Companies Branch level development programs Building Code Energy Investment & Renovation Subsidies Experimental Construction, Demonstration Projects Governmental Public-private Private

Voluntary Energy Conservation Agreement for the Housing Sector Joint action programme between the government (MoE, MTI) and building owners aiming at 15 % decrease in specific heat consumption 15 % decrease in water consumption per inhabitant turning the growth trend in building services electricity consumption to a decrease Programme period Aimed primarily at the municipal and private rental housing sector Coverage (Dec 2004): 27 organisations rental apartments = >70 % of target sector, 18 % of whole apartment stock

State-of-the-art analysis Energy energy efficiency plan Energy audits Implementation of efficiency measures Annual reporting Energy conservation agreement Governmental financial support Renovation investments, development of management and procurement practices, training, information, etc, etc Key Elements in Voluntary Energy Conservation Agreements

Energy audits for residential buildings Common models and guidelines developed Trained and informed auditors Cost of audit 1800…3500 /building (incl. VAT 22%) Public support 40 % of audit cost (50 % for organisations within the voluntary agreement scheme) Support scheme started 2003 no systematic follow-up so far estimated number of audits …

Energy audit procedure for residential buildings FIELD WORK ANALYSIS REPORTING overall building inspection assessment of the energy performance of building systems apartment inspections relevant measurements … analysis of measurement and other data building modelling säästökohteiden analyysi audit report, incl. description and assessment of the building and its systems, energy performance assessment, recommendations BASIC DATA client supplies the auditor with basic information and building size, energy and water consumption and other technical background information

Energy renovation subsidies Available since 2003 for buildings with 3+ apartments for additional costs related to improving or replacing windows additional insulation of external walls or roof connecting to district heating or renewing district heat consumer equipment renewing oil boilers and burners converting electric heating to ground source heat pumps or complementing it with air-to-air heat pumps installing ventilation heat recovery, low-emission pellet boilers, solar water heating and apartment water meters balancing of hydronic heating systems and ventilation systems Subsidy level 10…15 % of costs No systematic follow-up so far Support allocated in 2003: 14.8 mill. for appr buildings with apartments

Comprehensive energy refurbishments: an example Rental apartment property owned by the municipality of Oulainen 29 dwellings, 66 residents Dwelling area 1833 m² Year of construction 1971 Energy efficiency measures Additional insulation of facade external mm rockwool insulation Additional insulation of roof blown rockwool New doors and windows Improvement of roof Dwelling ventilation units with heat recovery KOY Kaari-Salpa Oulainen source: VTT Building Technology, 1998

Costs to client 490 /m² Construction 66 % Ventilation 8 % Piping, plumbing 13 % Electrical systems 6 % Other costs 7 % Impact on rent level 1.2 /m²/month (~30%) KOY Kaari-Salpa Results source: VTT Building Technology, 1998 Reduction in energy and water costs 0.7 /m²/month

Concluding remarks Initiatives are driven by the current national climate change strategy Emphasis of policy measures on apartment buildings voluntary measures management and maintenance practices lowering the threshold for longer-term efficiency improvement in conjunction with refurbishment and technical upgrading National energy climate strategy is revised during 2005 may include changes in priorities and in measures applied to the building sector