Residential buildings as expanded territory for ESCOs

Panel: 3. Local action

This is a peer-reviewed paper.

Authors:
Nelson Brito, University of Coimbra - Dept. of Mechanical Engineering, Portugal
Paula Fonseca, ISR – University of Coimbra
Manuel Gameiro da Silva, ADAI-LAETA / DEM
Aníbal Almeida, ISR-University of Coimbra
Francisco Lamas, ADAI-LAETA / DEM
Gonçalo Brites, ADAI-LAETA / DEM
Bruno Cardoso, ADAI-LAETA / DEM
Rute Castela, Graal/Grail - Portugal

Abstract

To meet the targets for a Low Carbon Economy in 2050, all new and existing buildings will have to significantly reduce their energy consumption, and/or progressively transition towards low carbon energy supplies. Although the EPBD-“recast” has set targets for new buildings and future definition of “cost effective thresholds” for existing ones, the work developed so far in IEA EBC Annex 56 shows that deep renovation actions still face significant barriers.

Energy Service Companies (ESCOs) already evolved strategies and methodologies for their native hunting ground, industry and large scale service buildings, where high energy consumptions yield acceptable paybacks, decisions are centralized and risks known. Although these methods are still being perfected for assessment, design, validation and optimization, the competitor’s population is growing and the fattest preys scarcer: this expected curve of growth and decline will surely hamper new investments, and delay the needed results.

This paper proposes that there is a place for ESCOs in European historic city centres - almost one in each city - where architectural constraints limit the installation of energy conservation measures like insulation and renewable energies. The provision of Energy Efficiency Services by ESCOs in the residential buildings is still limited despite the considerable potential for energy savings: long-term and complex contracts, disperse ownership, small consumption and low investment capacity compromise the financial viability of projects.

Considering the renovation options for an ancient residential building located in the historic centre of Coimbra, a UNESCO site and a highly constrained context, an analysis of costs and impacts of large-scale “deep retrofit” actions is presented. ESCOs’ capacity to explore barriers as challenges, and to perform “deep assessments”, is then used to demonstrate area based/neighbourhood approaches that can reduce costs, alleviate energy poverty risks and foster engaged communities through widespread socially inclusive participation in the energy efficiency goals.