ENER22 Energy efficiency and energy consumption in the household sector Key message Over the period 1990-2009, energy efficiency in the household sector increased by 24% in EU-27 countries at an annual average rate of 1.4%/year, driven by the diffusion of more efficient buildings, space heating technologies and electrical appliances. Over the same period, the final energy consumption of households increased by about 8%, at an annual average rate of 0.4%. Electricity consumption grew much faster at an annual growth rate of 1.7%. During the years 2005-2009 energy efficiency increased by 5%, or 1.3%/year. Rationale Energy efficiency and energy consumption are intrinsically linked. Increased energy efficiency can lead to significant reductions in energy consumption provided that measures are in place to discourage the occurrence of rebound effects. Reducing energy consumption in the household sector as a result of energy efficiency progress and behavioural changes can lead to significant reductions in environmental pressures associated with energy production and consumption. Key policy question: how fast energy efficiency is improving in the household sector? Key assessment: energy efficiency in the household sector Over the period 1990-2009, energy efficiency in the household sector increased by 24%, at an average rate of 1.4% per year (Figure 1). Part of these improvements occurred in the area of space heating due to better thermal performance of buildings encouraged by mandatory efficiency standards for new buildings, and a larger penetration of high efficiency boilers (e.g. condensing boilers). All EU countries have developed thermal regulations for new dwellings, some of them as far as the seventies 1. These standards require a theoretical maximum heating unit consumption for new buildings. However, the magnitude of this impact varies with the countries, depending on the number of standards upgrades, their severity and the number of new dwellings (i.e. the share of recent building in to total stock). Figure 9 shows an estimate of the impact of building standards in the unit consumption of dwelling since 1990 for a selection of countries 2. The introduction of new dwellings with better insulation since 1990 contributed to decrease the unit consumption per dwelling at different levels: 12% for Sweden, around 35% for France and Netherlands, 40% for Poland, 50% for Denmark and 70% for Germany. The other factors responsible for the decrease of the unit consumption should be the retrofitting of existing dwellings and the introduction of new more efficient heating appliances (namely, condensing boilers and heat pumps), as well as behavioral savings. For the EU-27 as a whole, new dwellings built in 2009 consumed about 40% less energy than dwellings built in 1990, because of new building codes3 (Figure 9). For large appliances, the improvement in energy efficiency results from technical improvement driven by EU mandatory Directives on labelling and voluntary agreements with equipment manufacturers. As a result, the share of the most efficient appliances (A, A+, A++) has increased significantly: from 6% in 1997 to 94% in 2009 for refrigerators and from 3% to 95% for washing machines, for example4. Over the period 2005-2009, the average energy efficiency improvement rate at EU level was 1.3% per year. Energy efficiency progress has been lower in 2009 at EU level (0.6 %). There exist large discrepancies among countries: from few improvements for Hungary, Greece to great improvements for new members such as Slovenia, Poland and Romania with an annual average rate of energy efficiency improvement above 2% over the period 2000-2009 (Figure 7). Over the period 2005-2009 there is also an acceleration in energy efficiency progress for EU15 countries such as UK (improvement of 4%/year), 1 Including for instance France, the Netherlands, Denmark, Austria, Sweden. This estimate was based on a modelling assuming for new dwellings that their unit consumption is equal to the theoretical consumption as implied by the standards. This approach overestimates the impact of building regulations as it is well known, but not well quantified , that the actual unit of new dwellings is higher than this consume more than this theoretical consumption, because of non compliance and rebound effects (the fact that in well insulated dwellings occupants tend to have a higher indoor temperature than in less insulated dwellings). 3 Estimation based on the relative performance of new buildings built with new regulations, based on building codes, compared to the performance of new buildings built in 1990. 4 Source: GFK 2 ENER22 Households energy consumption and emissions 1 France (improvement of 2.2%/year), Ireland (-2.5%/year), Germany (-1.9%/year). Differences between countries can be explained by the high energy efficiency potentials available in these countries due to outdated infrastructures (e.g. buildings, heating supply systems, etc). Key policy question: is the energy consumption in the household sector decreasing in Europe? Key assessment: household energy consumption Between 1990 and 2009, the final household energy consumption increased by 7.5% in the EU-275, at an annual average growth rate of 0.4%. Over the same period, final household electricity consumption increased faster, at an annual growth rate of 1.7%. Over the period 2005-2009 the final energy consumption decreased by 2.6% (-0.6%/year). Between 2008 and 2009, the household energy consumption has decreased by 0.7% due to the economic crisis. On the contrary, electricity consumption continued to increase at 1.6% a year. Gas and electricity are the main energy source in the household energy consumption (39% and 25% respectively in 2009 compared to 29% and 19% in 1990). Oil follows with 15%, ahead of biomass (11%). Heat, from district heating, and coal represent 7% and 3% of the household consumption in 2009 (compared to 10% and 12% in 1990). Space heating represented 68% of total household consumption in 2009 compared to 74% in 1990. The share of electricity for lighting and appliances increased from 10% to 15% in 2009 compared to 1990. Water heating remains stable at 12% in 2009 (Figure 3). Most of the savings in energy consumption in the household sector took place because of improvements in space heating technologies and tighter building codes (see also Figure 9 below). To avoid yearly fluctuations due to climatic variations from one year to the other and have consistent trends, the household energy consumption should be measured at normal climate (i.e. corrected for climatic variations) (Figure 1 and 2). Between 1990 and 2009 household energy consumption per dwelling (climate corrected) decreased by 0.8%/year in the EU-27. From 2005 to 2009, the decrease in energy consumption per dwelling (-1.1%/year) was driven by increasing energy prices (4.3%6 per year on average, all fuels combined). n 2009 the unit consumption per dwelling (climate corrected) decreased significantly (3%) despite a drop in energy prices (-9%): this may be due to the first reactions to the depressed economic situation in most countries (actual income reduction and further expectations. Unit consumption per dwelling has decreased in almost all EU countries from 1990 to 2009 except in 6 countries, mainly southern countries (Malta, Greece, Cyprus, Spain), Finland and Croatia (Figure 3). Specific policy question: what are the main drivers behind the household energy consumption in Europe? Specific assessment: drivers for household energy consumption The observed progress in energy efficiency was due to better thermal performance of buildings, more efficient large electrical appliances (cold and washing appliances) and heating systems (condensing boilers and heat pumps). However, part of this improvement was offset by increased number of electrical appliances, larger homes and the diffusion of central heating7 . The combined effect of these three factors was an increase in the average consumption per dwelling by around 0.4% a year each (Figure 6), offsetting 60% of the energy efficiency improvement achieved through technological innovation. Specific policy question: Is there a relationship between renewable energy and energy efficiency? The case of water heating 5 Data for EU as a whole are based on Eurostat data; data for heat consumption has been severely revised since 1990 by Eurostat in June 2011 (this change has been taken into account but changed the trends compared to the previous versions of the factsheets) 6 Energy prices: weighted average (electricity, fuel, gas prices for domestic users) based on Eurostat data 7 The penetration of central heating was mainly significant in the southern European countries and in Ireland. Central heating (around 85% of EU dwellings in 2009) , which includes district heating, block heating, individual boiler heating and electric heating, implies that all the rooms are well heated, as opposed to room heating, where generally a stove provides heat to the main room only. It is estimated that the replacement of single room heating by central heating increases the energy required for space heating by about 25 % on average. ENER22 Households energy consumption and emissions 2 Energy consumption for water heating represented around 12% of the household consumption in 2009. Energy consumption for water heating per dwellings tends to decrease in countries since 1990 (-1.2%/year since 2000) except for 7 countries, Slovenia, Spain, Belgium, Netherlands, Cyprus, Latvia and Malta. Solar energy is promoted in many countries to substitute conventional energies presently used to produce hot water. Solar water heaters can represent a good economical and environmental solution mainly for southern countries which benefit from a good solar irradiation. The question is how much energy savings the diffusion of solar energy will generate. The answer depends on the methodologies and conventions used. With a top-down approach, the impact of solar heating on the household energy consumption will be measured based on the energy statistics. In this case, the savings come from the fact that one kWh of solar will replace more than one kWh of conventional energy (due to the convention applied in energy statistics to solar heating, namely that there are no losses in conversion). The level of energy saved will depend depending on the type of water heaters replaced (for instance their efficiency). So looking at both energy consumption for water heating and water consumption trends in the households, one could draw some conclusions on the influence of solar heating penetration. In a bottom-up approach used in national evaluations, solar water heaters are considered as an energy saving technology and thus the saving will be much larger8. One such example of a bottom up approach is the methodology applied in France. In France there is an energy saving obligation for energy suppliers above a certain level of sales. The total volume of savings of the obligation is defined by the government. The energy suppliers falling under the regulation, have to prove a volume of savings proportional to their market share. For that purpose, they have to implement actions with their consumers to encourage energy savings investments and will receive in exchange certificates; they are also allowed to buy energy saving certificates from suppliers in excess of their obligation. To define the amount of savings (i.e. certificates) linked to a given action (e.g. promotion of solar water heaters), energy savings have been standardised for a large number of energy saving equipment and action. The savings values have been agreed upon following a process involving various stakeholders on the basis of expert opinions and survey data. The details of the calculations are not public but the value of the standardised savings by equipment and actions are published on the Ministry web site9. The annual savings in year t = ni x ESi in kWh ESi ni = energy savings per m2 of solar water heater in climatic zone i = surface area of solar water heater promoted or installed in year t in zone i Climatic Area H1 H2 H3 kWh/m2 250 300 400 The life time savings are discounted with a discount rate of 4%. This results in the value of 11.56 years for the discounted lifetime for solar water heaters with a standardised life time of 15 years. The savings are presented as kWh cumac to clarify that they are cumulated and discounted. The following table gives the official for individual solar water heaters by climatic zone. Lifetime discounted savings by climatic area (kWh cumac/m2) Area kWhcumac/m2 H1 6400 H2 7700 H3 10000 Based on this methodology, the energy savings realised due to replacement of traditional water heating equipment with solar heating range from 250 kWh/m2/year and 400 kWh/m2/year depending on the climatic zone. 8 This is the case for the measurement of savings linked to solar water heaters in national white certificate schemes or in the NEEAP. The savings will be in a range of 500 to 1000 kWh/m2 depending on the country. 9 http://www.developpement-durable.gouv.fr/Secteur-du-batiment-residentiel.html ENER22 Households energy consumption and emissions 3 Figure 8 presents the percentage of dwelling with solar water heaters in Europe in 2009 according to the solar irradiation. Cyprus and Greece have the most important share of dwelling equipped with solar water heaters (75% for Cyprus, 35% for Greece). Austria is the benchmark for most countries with medium solar radiation (from 3% to 24% dwellings equipped). In most European countries there exist financial incentives (subsidies or soft loans) and fiscal incentives (tax credit) to encourage households to install solar water heaters in their dwellings. Figure 1: Odyssee energy efficiency index (ODEX) (EU-27) Data source: Odyssee Figure 2: Influence of climate on household energy consumption per dwelling Data source: Odyssee ENER22 Households energy consumption and emissions 4 Figure 3: Variation of the consumption per dwelling (1990-2009) Data source: Odyssee (1990-2008 for Cyprus, Greece, Luxembourg, Malta, Slovenia; 1995-2008 for Latvia, Lithuania, 1995-2009 for Estonia, Finland, 1992-2009 for Romania, Slovenia, 2000-2008 for Malta) Figure 4: % Household energy consumption by end-use in the EU-27 Data source: Odyssee; energy consumption at normal climate ENER22 Households energy consumption and emissions 5 Figure 5: Energy consumption by end use per dwelling, 2009 Data source: Odyssee; energy consumption at normal climate Notes: A full breakdown of energy consumption by end-use is not available for four EU countries; for Denmark water heating consumption is included in space heating; the value for Luxembourg is not shown as it is not comparable with the other countries (2.5 times the EU average) . Figure 6: Drivers of the change in average annual energy consumption per household in the EU-27 between 1990 and 2009 Data source: Odyssee ENER22 Households energy consumption and emissions 6 Figure 7: Energy efficiency index by country (2000-2009) Data source: Odyssee Figure 8: Diffusion of solar water heaters • Cyprus (85%) Figure 9: Effects of building standards ENER22 Households energy consumption and emissions 7 Policy context Energy efficiency: delivering the 20% target - COM(2008) 772 final European leaders committed themselves to reduce primary energy consumption by 20% compared to projections for 2020. Energy efficiency is the most cost-effective way of reducing energy consumption while maintaining an equivalent level of economic activity. Improving energy efficiency also addresses the key energy challenges of climate change, energy security and competitiveness. Action Plan for Energy Efficiency: Realising the Potential [COM(2006) 545] This Action Plan outlines a framework of policies and measures with a view to intensify the process of realising the over 20% estimated savings potential in EU annual primary energy consumption by 2020. The Plan lists a range of cost-effective measures, proposing priority actions to be initiated immediately, and others to be initiated gradually over the Plan's six-year period. Further action will subsequently be required to reach the full potential by 2020. Commission Green Paper, 22 June 2005, "Energy Efficiency - or Doing More With Less" [COM(2005) 265 final It outlines the need to adopt specific measures to improve energy efficiency Decision No 1230/2003/EC of the European Parliament and of the Council of 26 June 2003 adopting a multiannual programme for action in the field of energy: "Intelligent Energy -- Europe" (2003-2006) Energy and transport play a large part in climate change since they are the leading sources of greenhouse gas emissions; this is why energy policy is particularly important in the European Union's sustainable development strategy. The EU is increasingly dependent on energy imported from Non-EU Member Countries, creating economic, social, political and other risks for the Union. The EU therefore wishes to reduce its dependence and improve its security of supply by promoting other energy sources and cutting demand for energy. Consequently, it is putting the accent, above all, on improving energy efficiency and promoting renewable energy sources. ENER22 Households energy consumption and emissions 8 Meta data Technical information Data sources: All data figures: Odyssee database, Enerdata, October 2011 update; the Odyssee database covers detailed energy consumption by fuel, end-uses and their drivers for 27 EU countries, EU-27 as a whole, Norway and Croatia. Due to statistical limits, data for EU new member countries are only available (or reliable) since 1997. Description of data/Indicator definition: - Household energy consumption, covers all energy consumed in households for space heating, water heating, cooking and electricity. Figures are reported either aggregated or disaggregated according to the end use categories named and as a total figure or per dwelling or m2 of housing area. Climate fluctuates from one year to another. When the data is flagged as climate corrected, the data is normalized to reflect similar weather conditions. - Consumption in useful energy per degree-day corrects for difference in heating equipment efficiency (which varies according to the fuel uses) and climate. Energy efficiency indices (ODEX) can be defined as a ratio between the actual energy consumption of the sector in year t and the sum of the implied energy consumption from each underlying sub-sector/ end use in year t (based on the unit consumption of the sub-sector with a moving reference year. The evaluation of energy savings in household is carried out at the level of three end uses (heating, water heating and cooking) and five large appliances (refrigerators, freezers, washing machines, dishwashers and TVs). For each end use, the following indicators are used to measure efficiency progress: heating — unit consumption per m2 per dwelling equivalent to central heating at normal climate; water heating — unit consumption per dwelling with water heating; and cooking — unit consumption per dwelling. The average energy consumption per m2 per dwelling equivalent to central heating is used to leave out the impact of the diffusion of central heating. The effect of (heating) behaviour was estimated by assuming that technical progress cannot be reversed Household CO2-emissions covers the direct CO2 emitted by fuel combustion. Geographical coverage: The Eurostat database covers all 27 EU member states plus Iceland, Norway, Switzerland, Croatia and Turkey. Odyssee database covers EU-27 plus Norway and Croatia. Not always data is available for all countries. Temporal coverage: 1990-2009with a focus on the period 2000/2009 for detailed analysis by country (due to non available or reliable data for new EU countries before 1996) Methodology and frequency of data collection: Data collected annually in the framework of the ODYSSEE MURE project Methodology of data manipulation: Change in households final energy consumption per person: (final energy consumption per country2007 /population per country2007) / (final energy consumption per country1990 /population per country1990) – 1 Energy consumption by end use per dwelling: final energy consumption per country / number of dwellings per country. Energy consumption per m2 for space heating : final energy consumption for space heating / (number of dwelling * dwelling size) Energy consumption per dwelling or m2 at normal climate: sum of heating consumption at normal climate and the non heating consumption/ number of dwellings Heating consumption per dwelling at normal climate : energy consumption * HDDn/HDD with HDD: observed Heating Degree Days in current year and HDDn number of degree days for a normal year (long-term average degree days over last 30 years; source Eurostat); number of degree days by country population weighted CO2 emissions space heating per m2, climate corrected: CO2 emissions from space heating per dwelling climate corrected / average floor area of dwellings Odyssee index: see http://www.odyssee-indicators.org Qualitative information 7. Strengths and weaknesses (at data level) Not all data is available for all countries. Availability for data on years earlier than 2008, is higher. Odyssee data is recently updated (October 2010) 8. Reliability, accuracy, robustness, uncertainty (at data level): The reliability of total household energy consumption and related CO2 emissions is reliable due to trustworthy statistics underlying it. Division of the energy consumption among activities (heating / cooking etc.) is less accurate, because it is based on assumptions. ENER22 Households energy consumption and emissions 9 9. Overall scoring – (1 = no major problems, 3 = major reservations): Relevance: 1 Accuracy: 2 ENER22 Households energy consumption and emissions 10