Implementing energy efficiency in Swedens existing housing stock - - PowerPoint PPT Presentation

Implementing energy efficiency in Sweden’s existing housing stock

Anna Joelsson Leif Gustavsson Mid Sweden University

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Focus of presentation

Do currently used policy measures encourage house owners to implement changes in accordance with national goals?

3 perspectives

The societal economic perspective on cost and environment The house owners’ economic situation The house owners’ perception

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Methodology

1. Using reference houses 2. Implementing measures to house envelopes 3. Implementing changes to supply systems 4. Including current policy measures 5. Studying effects on resource use, emission and cost 6. Studying effects on the house owners annual heating cost

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1 The reference houses

• Built in 1974 and 1976
• Heated area of 100-306 m2
• Heat demand of 28-47 MWh/year
• Resistance heaters (electric radiators)
• Resistance heaters, hot water boiler and drainage system need

to be replaced. Window frames need to be painted.

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2 Demand side measures

• Extra insulation on the attic floor
• Extra insulation on the outside of the basement walls
• Ground insulation in the foundation
• Replacement of the existing windows

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3 End-use supply conversion

Resistance heaters Heat pump Pellet boiler District heating

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Results - Societal economic view

• House envelope measures reduced the heat demand by 20-25%
• District heating and heat pumps reduced the primary energy use by

70 % and 54%, respectively

• …and reduced the CO2 emission by 93% and 94%
• Biomass-based systems gave low CO2 emission
• Conversions to district heating, heat pump and pellet boiler reduced

the societal economic cost

• Pellet boilers and district heating less profitable for smaller houses

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Swedish energy goals

• Phase out electric heating
• Phase out heating with oil
• Increase energy efficiency
• Increase use of renewable resources
• Reduce CO2 emission

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4 Assumptions

house owners economic situation

• Annualised investment costs
• 3 % real discount rate
• Remaining lifetime of house: 50 years
• Changes to demand side before supply side
• Comparing purchase of electricity and heat from 2 suppliers
• Including effects from subsidies, electricity tax and real estate

tax

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Subsidies

• Conversion from resistance heaters

– Installing heat pump, district heating or biomass based system – 30 % of the investment cost, up to €3240 – Both material and labor included in the cost

• New windows

– U-value 1.2 or lower – 30 % of the investment cost exceeding €1080 up to €1080 – Both material and labor included in the cost

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Swedish customer electricity tax

2.2 c/kWh 2.8 c/kWh

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Real estate tax

• Real estate tax of 1% of the assessed value
• Installation of heatpump or new windows increse the assessed

value

• Original real estate tax for house B medium size was

€1070/year

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Annual customer heating cost

Investment subsidies

RH=Resistance heaters PB= Pellet boiler DH=District heating HP= Heat pump AI=Attic insulatio FI= Foundation insulation W=New windows

Östersund, tax 2.8 c 500 1000 1500 2000 2500 3000 3500

RH PB DH HP RH PB DH HP

Reference AI AI+W AI+W+FI

Heating cost (€/year)

excluding subsidies including subsidies

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Annual customer heating cost

Electricity tax

500 1000 1500 2000 2500 3000

RH PB DH HP RH PB DH HP RH PB DH HP Reference house AI AI+W AI+W+FI Heating cost (€/year)

Jämtkraft, tax 2.2c Jämtkraft, tax 2.8c Jämtkraft, zero tax

RH=Resistance heaters PB= Pellet boiler DH=District heating HP= Heat pump AI=Attic insulatio FI= Foundation insulation W=New windows

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Annual customer heating cost

Energy supplier influence

500 1000 1500 2000 2500 3000

RH PB DH HP RH PB DH HP Reference AI AI+W AI+W+FI Heating cost (€/year)

Jämtkraft, tax 2.8c Vattenfall, tax 2.8c

RH=Resistance heaters PB= Pellet boiler DH=District heating HP= Heat pump AI=Attic insulatio FI= Foundation insulation W=New windows

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Total customer cost

RH=Resistance heaters DH=District heating PB= Pellet boiler HP= Heat pump

RH PB DH HP RH PB DH HP

500 1000 1500 2000 2500 3000 3500 4000

Cost of purchased energy Electricity tax Inv estment in heating system Inv estment in house env elope Real estate tax increase

Cost (€/year)

Jämtkraft, tax 2.2 c/kWh Vattenfall, tax 2.8 c/kWh

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House owners’ perception

Results based on surveys by Mahapatra and Gustavsson 1 local survey in area with electric heating 1 national survey

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House owners’ perception

• House owners with RH are more dissatisfied,

but also less likely to change – Lock-in effect due to high investment cost

• 80 % do not plan to change heating system

– Do not feel the need

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House owners’ perception

Most important performance factors ”Best” system

• Annual cost

HP

• Investment cost

PB

• Fuctional reliability

DH

• Indoor air quality

DH

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House owners’ perception

What system would you recommend to someone else? Locally Heat pump 41 % District heating 38 % Pellet boiler 2 % Nationally Heat pump 54 % District heating 15 % Pellet boiler 10 %

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Conclusions

• The economic benefits not enough for customers to feel the need of a

new heating system

• Subsidies reduced annual cost by less than 7 %
• Subsidies might be a trigger to search for information
• Subsidies can be useful to break lock-in with resistance heaters
• Subsides affect investment cost – investment cost also important for

house owners

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Conclusions

• Electricity tax encouraged energy efficiency measures and made pellet

boilers and district heating competitive

• Reduction of electricity tax in some areas counteracts the national

goals

• Reasonable with economic instruments to promote systems in line with

environmental goals

• Increased real estate tax is contradictive

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Conclusions

• The energy supplier is important for the customers’ economic situation
• The energy supplier may influence the effects of policy measures
• The energy supplier might have the power to influence the customers

attitudes towards the systems

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Issue for discussion

How to encourage house owners to implement the presented changes that increases energy efficiency and reduces the CO2

emission?

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Conversion from oil boiler

Mitigation cost

• 200
• 100

100 200 300

OB HP PB OB HP PB OB HP PB OB HP PB Reference house AI AI+BI AI+BI+Windows Mitigation cost (€/tonne C reduced) CST NGCC BST BIG/CC

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Conversion from NG boiler

Mitigation cost

• 200
• 100

100 200 300

NGB HP PB NGB HP PB NGB HP PB PB Reference house AI AI+BI AI+BI+Windows Mitigation cost (€/tonne C reduced) CST BIG/CC BST NGCC