1. Lauri Hietaniemi / 07.03.2007 Regions for economic change – Brussels 7-8 March 2007 Some Aspects of Improving Energy Efficiency (EE) and Increasing the Use of Renewables in the Housing Sector in North Europe Dr. Lauri Hietaniemi, Managing Director, Green Net Finland

2. Lauri Hietaniemi / 07.03.2007 Green Net Finland – Networking organization Mission: to develop networking, businesses, projects and know-how of environmental technology Has the status of Center of Expertise 12/2006 from Finnish government in the national environmental technology (includes energy efficiency) cluster

3. Lauri Hietaniemi / 07.03.2007 Members of Green Net Public sector: Cities Universities Research Centers Companies International co-operation agreements in Baltic Countries, Russia, Ukraine and in Nordic Countries

4. Lauri Hietaniemi / 07.03.2007 Some EE Activities of Green Net Center of Expertise 2007-2013 Keeping International EE Portal www.esprojects.comwww.esprojects.com Published Green Energy from Finland DVD for Experts www.greennetfinland.fi www.greennetfinland.fi Implemented Several Market Studies and Other Projects in New Member States Co-ordinates Nordic project NETS (2006-2008), which will combine and market clean energy solutions from Nordic countries

5. Lauri Hietaniemi / 07.03.2007 Expertise clusters in Finland HealthBio – Cluster of Health Care: Kuopio, Oulu, Metropolitan, Tampere, Turku Cluster of Well Being: Kuopio, Oulu,Metropolitan, Tampere Food Development: Kuopio, Metropolitan, Seinäjoki, Turku Energy Technology of the Future: Joensuu, Jyväskylä, Vaasa, Pori ja Tampere Local IT Solutions: Jyväskylä, Oulu, Pori, Metropolitan, Tampere Digital Contents: Hämeenlinna, Metropolitan, Tampere, Kouvola Turism: Metropolitan, Rovaniemi, Savonlinna, Turku Sea Cluster: Lappeenranta, Pori, Turku, Vaasa, Raahe Nano-, Micro Systems and Active materials: Joensuu, Jyväskylä, Kokkola, Mikkeli, Oulu, Metropolitan, Tampere Intelligent Machinery: Hyvinkää, Hämeenlinna, Lappeenranta, Seinäjoki, Tampere Forest Industry in the Future: Joensuu, Jyväskylä, Kajaani, Kokkola, Mikkeli, Lappeenranta, Turku Expertise Cluster of Housing: Joensuu, Hämeenlinna, Lahti, Metropolitan Environmental technology cluster: Kuopio, Lahti, Oulu, Helsinki metropolitan area (Green Net Finland) The Programme of Expertise 2007-2013 aims R&D co-operation between companies and reseach groups (universities and research centers) to develop know-how, products and services for global markets

6. Lauri Hietaniemi / 07.03.2007 Environmental Technology Expertise Programme of the Helsinki Metropolitan Area Activities 2007-2013: 1.Environmental monitoring 2.Energy efficiency in urban environment (planning model for cities, cases on new real estate areas, promotion of exports) 3.New solutions of energy and fuels for urban transport 4.Development of oil spill prevention technology 5. Supporting SMEs in exporting environmental technology products and services

7. Lauri Hietaniemi / 07.03.2007 Main EU Legislation of EE on Housing Sector End-use Efficiency & Energy Services, EEES (2006/32/EC)- opens markets, audits, service for consumers Energy Efficiency in Buildings, EPBD (2002/91/EC)- minimum EE requirements for buildings Eco-Design of Energy-Using Products, EuP – will save energy in planning phase of different products Energy Labelling of Domestic Appliances- helps customers to save energy Combined Heat and Power(2004/8/EC)- promotes EE in energy production phase > There is a goal to increase EE by 20% before 2020

8. Lauri Hietaniemi / 07.03.2007 Status and findings of EE legislation in EU Implementation is mainly in starting phase in member states after long preparation work. Do we have relevant monitoring system to measure real energy savings of housing within EU? At the same time EU has decided to reach new and more challenging targets (-20% until 2020) to decrease emissions of green house gases. Will this later cause additional requirements in EE of housing? In member states targets will be extremely hard to reach in the years 2010-2020. Probably targets will be unrealistic, because implementation period will be too short to reach desired changes vs live time of buildings and energy production plants

9. Lauri Hietaniemi / 07.03.2007 Source: Jaccard et. Al 1997 Source:Jaccard et. al 1997

10. Lauri Hietaniemi / 07.03.2007 Some challenges to meet So far when we have saved energy in building technology, also other effects took place: -Average living area m 2 /person in apartments and houses is growing -Better indoor air quality increases energy consumption -Increasing distances from work to home will cause additional energy consumption in transport -EE efficiency is not yet an essential part of city planning, where we in fact decide to use a lot of energy -Rising standards of living will cause extra consumption of energy also in homes

11. Lauri Hietaniemi / 07.03.2007 Global technological solutions for CO2 mitigation Significant energy efficiency gains are possible in transport, industry and buildings Decarbonisation of the power-generation is possible by using more nuclear power, renewables, efficient use of natural gas, clean coal with CO2 capture and storage (CCS), hydrogen and fuel cells Source: IEA

12. Lauri Hietaniemi / 07.03.2007 The Energy Saving Potential of Housing in Finland (potential % in all energy saving potentials) -Heat pumps for buildings where now direct electrical heating (25 %) -Decreasing electricity consumption of equipments, lighting and pumps, better automation (15 %) - Tight EE principles when public sector is buying technology (2 %) -Low energy building concept in insulation of new buildings and in retrofitting old houses (6 %) Source: Virtaa tulevaisuuteen, The work of several leading experts to Finnish WWF 2007

13. Lauri Hietaniemi / 07.03.2007 Potential to Produce Energy from Renewables in Finland (potential % in all energy saving potentials) -At the moment 24 % of primary energy (29 % of electricity) is coming from renewables, possible to double mainly by using wood- based biofuels, biogas and solid waste in CHP plants until 2020. (59% saving potential of all renewable methods) - Also important possibilities are wind power (14 %), pellets (8 %) and solar panels and bio heating of small houses (11 %) -Bio fuel potential in cars is also considerable (7 %) - Hydropower in small plants (1 %) Source: Virtaa tulevaisuuteen, The work of several leading experts to Finnish WWF 2007

14. Lauri Hietaniemi / 07.03.2007 Countries in Different Position FINLAND Proposal for A-class building Energy consumption in new Finnish certificate 130 kwh/m 2 /a Possible to reach 50 in 20 years with very modern technology Problem is to find labour force for building operations Best way to proceed is to add more R&D capital for EE research work of housing Important is that public sector could provide realistic EE alternatives for house holders, owners and companies, when they decide investments Auditing work lead by Motiva has been very profitable since 10 years The big energy companies could use more of their huge returns for investments in EE and renewables BALTIC COUNTRIES In Baltic countries 200-300 (A lot of Soviet time buildings without isolation) Possible to reach 150 even with conventional technology Main problem to find capital for investments (limited ability of municipalities to finance public investments) Energy saving agreements (also ESCO) have a big potential Energy auditing will be important in future since not yet started in many new member states

15. Lauri Hietaniemi / 07.03.2007 Conclusions If economy will grow, we need more radical instruments than used today to save energy in housing in Europe. One idea could be higher energy bills for houses/departments which exceed determined living areas/persons (like heavy cars) We need short term and long term strategies to save energy in housing. Targets until 2020 are not enough. More R&D money to EE of housing More funding resources for new member states The potential of renewables varies a lot in different member states

16. Lauri Hietaniemi / 07.03.2007 Green Net Finland ry Managing Director, Lauri Hietaniemi GSM +358 40 5532764 E-mail lauri.hietaniemi@greennetfinland.filauri.hietaniemi@greennetfinland.fi Energy Expert Herkko Lehdonvirta GSM +358 405028300 E-mail herkko.lehdonvirta@greennetfinland.fi Contact Thank you for Your Attention