Low-energy buildings in southern and eastern Mediterranean countries

Panel: Panel 4. Residential and commercial sectors: delivering lower energy use in buildings

Author:
Klaus Wenzel, Deutsche Gesellschaft für Technische Zusammenarbeit mbH, GTZ (German Agency for Technical Cooperation), Tunisia

Abstract

This paper presents the experiences and conclusions from a regional project, financed by the European Union, that supports the design, construction and monitoring of 10 low-energy demonstration buildings (Pilot Projects) in 10 southern and eastern Mediterranean countries (more information about MED-ENEC under www.med-enec.com):

High energy savings can be achieved in buildings with a variety of partly mature and partly innovative technologies. Low- and even zero-energy houses and green buildings are technically feasible in the region.
Economic considerations limit the broad application of some of these technologies and thus reduce the technical potential for energy savings in a large-scale dissemination. The most cost-efficient technology mix, according to the type of building, the climate zone, energy prices and the availability of know-how and technologies needs to be identified.
High transaction costs such as substantial initial learning and search costs jeopardize the profitability of low-energy buildings in the region and constrain the development of the respective markets.
When using a cost-efficient technology mix and if mitigating transaction costs, low-energy buildings become attractive in most of the countries with energy savings of 20-60%, incremental costs of 10-15% and short pay back periods.
Donors' and/or government support and incentives are necessary for overcoming the initial high transaction costs and market failures and for boosting energy efficiency in buildings.
Subsidies on energy are the most important single constraint for broad dissemination in some of the countries in the region.
Government intervention is a profitable investment from a macro-economic point of view. The economic and social gains of energy efficiency quickly outscore the cost of support programs.