18 December 2013

Concrete targets but technology-neutral approach: The key for cost-optimal building renovation

A study by the Fraunhofer Institute for Building Physics (IBP) and the Research Centre for Real Estate Business Administration (FBI) of TU Darmstadt, conducted on behalf of Eurofuel’s German member, the Institute for Heating and Oil Technology (IWO), indicates that choosing a technology-independent approach is the best cost-optimal way to achieve building renovation and reduce primary energy savings. A technology-independent approach allows property owners to decide freely on the energy saving measures they want to carry out, as long as the targets are ultimately achieved. This is the path taken so far in the German Energy Saving Ordinance. Alternatively, in a technology-based approach, the legislator imposes the type of measures and the timeframe for their implementation on owners, which is the case for instance with the German Renewable Energy Laws.

To achieve Germany’s objective of 80% energy savings by 2050, the study shows that the overall cost for the society would be 22% lower with a technology-independent approach (€ 1.7 trillion against 2.1 trillion). For individual owners, the bill could be up to 33% lower than with a technology imposed by the legislator.