Presentation on theme: "KfW Development Bank Promoting Energy Efficiency in Buildings"— Presentation transcript:
1 KfW Development Bank Promoting Energy Efficiency in Buildings Claudia LoyAsia Pacific Union for Housing FinanceNew Delhi, 31 January 2012
2 Agenda KfW at a Glance The German Way The International Perspective 1 23The International PerspectiveIndia – Energy Efficiency in New Residential HousingSoutheast Europe – Promoting EE in SME and HousingChina – Energy Efficient Refurbishment of Residential Housing
3 KfW Public Promotional Bank with Wide Array of Functions Domestic PromotionInternational BusinessWe ensure inter-nationalisationWe promote developmentWe promote GermanyPromotion ofSMEs, business start-ups and environ- mental & climate protectionPromotion ofhousing andeducationFinancing of municipal infrastructure projects and promotion in EuropeInternationalproject andexport financePromotion ofdeveloping andtransition countriesPromotion of Environmental and Climate Protection
4 KfW A Strong Environmental and Climate Protection Bank Commitments in 2010:EUR 25,3 billionfor environmental and climate protection EUR 23 billionfor energy efficiency (EUR 11.5 bn)and renewable energies (EUR 11.3 bn)► KfW is the no. 1 Environmental Bank in Germany and one of the world’s leading financing institutions for EE and RE
5 Agenda KfW at a Glance The German Way The International Perspective 1 23The International PerspectiveIndia – Energy Efficiency in New Residential HousingSoutheast Europe – Promoting EE in SME and HousingChina – Energy Efficient Refurbishment of Residential Housing
6 System of Energy Efficiency Promotion Information andConsultingPromotionalProgrammesGives an impulse for investing in energy-efficient construction and rehabilitationRegulations are the basis. In germany the most important regulation within the housing sector is the Energy Conservation Ordinance (called EnEV).The EnEV defines the energy efficiency requirements for new and existing buildingsInstruments are necessary to realize the requirements in the housing sectorTwo main Instruments:Information and Consulting f.e. we have a Energy Performance Certificate for buildings, the energy consultant becomes more and more important in housingPromotion: f.e. promotional programmes of KfW or BAFA (renewable Energies), different municipal and regional programmesLegislation, Rules and Regulations, Technical Standards► German Energy Conservation Ordinance (EnEV)66
7 Making energy demand transparent! One of the essential elements for promoting EE in HousingMaking energy demand transparent!"KfW-Efficiency House" –the performance standard for buildingsin Germany!für Bauherren relevant: „der Wert ist entscheidend, nicht der Weg der Berechnung!“kompetente Beratung über durchzuführende Maßnahmen notwendig.
8 Primary Energy Demand (kWh/m2/a)* KfW Efficiency House StandardPrimary Energy Demand (kWh/m2/a)*BUILDNGSTOC KKfW-115e.g= 115 % of NL**KfW-100e.g= 100% of NLNEWBUILDGSe.gKfW-85= 85 % of NLKfW-70e.g= 70 % of NLThe benchmark is the new building level according to EnEVThe blue bar symbolizes the primary energy demand, we have a range of absolute demand which is allowed for a new Building according to EnEV, depending on the type of building, there is a range from 94 to 55 KwH per square meter and yearReferring to this benchmark we defined the promotional stages :The numbers refer to the demand of primary energy in relation to the new building level according to EnEV :KfW-130 means f.e., within this standard the maximum primary energy demand of the building is 130% of demand allowed for a new building according to the EnEVIn general you can say: the smaller the number the higher the energy-efficiency and the higher our promotion.KfW-55e.g= 55 % of NLKfW-40e.g= 40 % of NL*Acctual values vary, depending on the reference building according to the German Energy Conservation Ordinance (EnCO)**NL = New Building Level according EnCO
9 construct. supervision Promoting EE in housing – KfW in Germany Funding and On-lending systemCapitalmarketLoan (maturity e.g. 30 years)Loan (maturity e.g. 30 years)FundingIndividualhomeownerBankInterestsubsidyRe-financingInterest rate depending on efficiency standardMargin for credit risk and handling 0.75%GermanGovernment+ addl. bonus forconstruct. supervision(max. EUR 1,000)+ addl. repaymentbonus (5% or 12.5%of principal)
10 Promoting EE in housing – KfW in Germany Results YearBudget Subsidies(million €)Loan CommitmentsCO2-reduction(1000 tons p.a.)Housing Units(in 1000)Investments20078503,3365682045,12720081,3007672808,55220092,0358,6771,45261717,72420101,3378,7461,04995321,330
11 Key Elements of Success Financial incentives based on energy performance of building - not individual measuresPerformance Assessment Tool robust and easy to handleAccepted Performance Standards or Label - more important than legal building codesTraining of auditorsHigh energy prices
12 THANK YOU! For more information, please contact: Claudia Loy, Head of Energy Sector and Policy DivisionSilke Hermes,Senior Project ManagerKfW Development Bank,Energy - Asia,KfW Office Building “Westarkade”,Electricity Consumption: 98 kWh/p.sqm/p.a.
13 Agenda KfW at a Glance The German Way The International Perspective 1The German Way23The International PerspectiveIndia – Energy Efficiency in New Residential HousingSoutheast Europe – Promoting EE in SME and HousingChina – Energy Efficient Refurbishment of Residential Housing
14 Promoting EE Buildings in India Results-based Tool and Label Joint Assessment Tool developed by Fraunhofer Institute and TERI, IndiaBased on the whole-building-approach (Flexibility)Robust energy performance assessment (Comparability)- Easy to use by architects and auditors (Scalability)Easy to compare different EE design, material and technology combinations (Optimization)Basis for Energy Efficiency Label (Communication)
15 Agenda KfW at a Glance The German Way The International Perspective 1 2The International Perspective3India – Energy Efficiency in New Residential HousingSoutheast Europe – Promoting EE in SME and HousingChina – Energy Efficient Refurbishment of Residential Housing
16 South East Europe Promotion of EE in SME and Housing Key Features:EE loan programmes for SMEs & Housing via various partner banksAverage loan size: EUR 115,000 (SME), EUR 2,200 (Housing)No/ only slightly reduced interest ratesTotal loan volume: EUR 215 million (2010)Additional TA for Capacity Building & co-finance of energy auditstarget: minimum of 20% savings on energyTypical Measures for Energy Efficiency in Residential Buildings:High-performance windows;Installation of thermostatic valves; etc.Insulation of walls, roof and basement ceilings and pipeModernization of hot water boilers and meters, heat systems;
17 Agenda KfW at a Glance The German Way The International Perspective 1 23The International PerspectiveIndia – Energy Efficiency in New Residential HousingSoutheast Europe – Promoting EE in SME and HousingChina – Energy Efficient Refurbishment of Residential Housing
18 China Energy Efficient Refurbishment of Housing Blocks Starting Point: GiZ Pilot Scheme 3 pilot buildings in Tangshan (2006 – 2009)30-50% reduction of energy demand for heating by thermal insulation of walls and roofs, double-glazed windows, refurbishment of heating systemsCurrent stage: KfW Program Climate Protection in Urban AreasTangshan: Volume: € m, refurbishment of 800,000 m²Tonghua: Volume: € m, refurbishment of 1,100,000 m²Aim: 50-60% reduction of energy demand for heatingCO2 Reduction of 0,32 m tons per yearagreement on high efficiency standardsChoice of most cost-effective measures Know-how transfer & quality control during planning and implementationBefore refurbishmentAfter refurbishment355 kWh/m²y144 kWh/m²yGER: kWh/m²yGermany: kWh/m²y
19 KfW Development Bank Promoting EE in Buildings Worldwide - Examples HousingPublic BuildingsCommercial BuildingsSoutheast EuropeEUR 30 millionIndiaEUR 50 millionChinaEUR 60 million(in planning)MexicoEUR 85 million (in planning)South AfricaJordanEUR 34 millionAlbaniaTurkeyEUR 20 millionEUR 35 millionCroatiaEUR 25 millionGlobal: EUR 290 millionGlobal: EUR 150 millionGlobal: 150 millionGlobal: approx. sum of ongoing and planned programmes and the respective share under these going into EE buildingsCommercial Buildings: currently under EE Lines of Credit for SMEs, in cold climate high share of loans for isolation of plant buildings (assuming up to 50% of LoC).
21 KfW Financing with a public mission Founded in 1948 as promotional bank of the Federal Republic of GermanyShareholders: 80% Federal Republic, 20% federal statesHeadquarter: Frankfurt am Main Branches: Berlin and BonnRepresentative offices: around 70 offices and representations worldwideBalance sheet total at the end of 2010: EUR 450 billionAbout 4,530 employees (2010)Top rating: AAA/Aaa/AAAZero-weight under Basel II
22 KfW Development Bank Global Energy Sector Commitments 2006 - 2010 Total Commitments in the Energy Sector (cumulative ): EUR 3,739 millionof which renewable energy: EUR 2,281 millionCommitments for Demand-Side Energy Efficiency since 2006: Asia 31 %Europe/Caucasus 27 %Latin America 23 %
23 Promoting EE Buildings in India Energy Efficient New Housing Programme Loan (Eur 50 million) and Technical Assistance (EUR 1.5 million)to the National Housing Bank (NHB) as apex bank torefinance sub-loans for buyers of energy efficient new urban apartmentsHighest energy savings potential in new apartment blocks for middle income residents: 46-51% depending on climate zone - out of which ► 20-36% Building Envelope ► 16-22% AppliancesInvestments to achieve up to 40% savings financially attractive at 5 yr. payback (Average FIRR 25%)Preconditions for feasibility:- optimization of whole building design at planning stage- early contact to advise architects/developers- robust energy performance assessment tool- training of auditors and energy advisors
24 Promoting EE Buildings in India Promotional Programme Status Early stage of implementation: Agreements signed 12/2010, first disbursement 07/2011, TA tender ongoingFive residential housing developments located in the composite climate zone being evaluated:23 individual buildings assessed and optimized with the Fraunhofer/TERI assessment toolEnergy efficiency certificates under preparation by TERI:Covering 17,000 apartment units to be built in the next 5 yrs withSavings of up to 2000 kwh p.a. per apartment; andExpected total savings of 22,000 tCO2 p.a.Fraunhofer/TERI tool is being amended for the hot-dry and warm-humid climate zones (by November 2011)Wo in Indien: NOIDA/Delhi, Lucknow, NagpurProject 1 Lucknow:kwh/m² p.a. actual bldg 67,00 77,00 42,00 49,00kwh kwh/m² p.a. ref. Bldg 87, ,00 61,00 65,00Project 2 Nagpur:kwh/m² p.a. actual bldgkwh kwh/m² p.a. ref. BldgProject 3 NOIDA:kwh/m² p.a. actual bldgkwh kwh/m² p.a. ref. BldgProject 4 NOIDA:kwh/m² p.a. actual bldgkwh kwh/m² p.a. ref. BldgProject 5 NOIDA:kwh/m² p.a. actual bldgkwh kwh/m² p.a. ref. BldgDevelopers: 3C, SaharaPLIs: HDFC, talks to Dt. Postbank, LIC
25 Promoting EE Buildings in India Promotional Programme – Next Steps & Challenges Next steps under the Programme TA:Establish the „Energy Efficient Housing“ brand and label in the Indian marketTrain energy auditors and architects in the energy assessment of new residential buildings with the Fraunhofer/TERI toolAchieve EE assessment and certification endorsement by public and private institutionsContinuous Challenges to the Promotional Programme:No mandatory minimum EE standard for residential buildingsMultiple ministries and public agencies dealing with the residential building sectorLack of sustainable financial incentives to promote EE residential buildingsEndorsement of tool and label to be seeked by BEE; Indian Green Building Council, GRIHA, etc.Ministries: Ministry of Power/BEE, Ministry of Urban Development; Ministry for New and Renewable Energy; MHUPA Ministry of Housing and Urban Poverty Alleviation, BIS Bureau of Indian Standards and National Building Code
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