EE improvement is often hampered by market, financial, information, institutional, and technical barriers. According to survey and interviews, while consumer awareness and low energy prices are two major barriers to EE commonly mentioned worldwide, the lack of affordable financing and the perceived riskiness of EE ranked especially high in the EBRD region.EE policy doesn’t deliverEE savings exist, but in small pockets trapped beneath the these barriers rather than beneath the earth’s surface.
Finally, it is important to remember that energy efficiency policies will deliver co-benefits. Low income energy efficiency programmes include measures to:improve the quality of the building shell of a home; improve efficiency of energy-using equipmentThese measures have proved effective in:Reducing energy bills by 25-30 percentAs insurance against fuel price increasesADDITIONAL co-benefits, for household itself, for broader society, and for utilities and the government, include:Quality of life improvements for participantsHealth benefits and greater productivity for participantsLower fuel assistance paymentsProperty value increases from rehabilitationJobs creationSocietal benefits etc…These co-benefits are important to consider for very practical reasons and cost effectiveness is one critical benefit: In Summary, delivering energy services to all of our citizens and in a manner that is environmentally sustainable is critical. Many policy measures will be necessary, but the first and most cost effective will be energy efficiency.
Sustainable Habitats, IPEEC
IPEEC Initiatives in Sustainable Buildings
Amit Bando, Executive Director
November 15, 2012
Efficiency Cooperation: an
Members account for over 75% of world GDP and energy
IPEEC was established in 2009 at the G8 summit in
Italy;Secretariatis located in Paris, France
Facilitates Implementation of Energy Efficiency
IPEEC: a High-level
Provides global leadership on energy efficiency by identifying
and facilitating government implementation of policies and
programs that yield high energy efficiency gains.
Promotes information exchange on best practices
and facilitates initiatives to improve energy efficiency.
Reports to G20 Summit, Clean Energy Ministerial and others.
Partners with industry to promote rapid deployment of energy
IPEEC‟s Work on
Definitions of Energy
& sample distribution
Small group: start-up/
unit in a company
Large scale operation
Early adopters & niches
Rational economic purchase
& market evaluation
Barriers to Energy Efficiency
Market organisation and price distortions prevent customers from appraising
the true value of energy efficiency.
The principal agent problem, in which the investor does not reap the rewards
of improved efficiency (the classic case being the landlord-tenant situation).
Transaction costs (project costs are high relative to energy savings).
Up-front costs and dispersed benefits discourage investors
Perception of EE investments as complicated& risky - high transaction costs
Lack of awareness of financial benefits on the part of financial institutions.
Lack of sufficient information and understanding, on the part of consumers,
to make rational consumption and investment decisions.
Energy tariffs that discourage EE investment (such as declining block prices
and fuel subsidies).
Incentive structures encourage energy providers to sell energy rather than
invest in cost-effective energy efficiency.
Institutional bias towards supply-side investments.
Lack of affordable energy efficiency technologies suitable to local conditions.
Insufficient local capacities to identify,develop, implement and maintain
energy efficiency investments.
Global “clean” energy - total deal value & percentage
share by sector (deal numbers shown in parenthesis)
IPEEC‟s Sustainable Buildings and
Capture the global energy savings potential in the building &
communities sectors by:
1. Identifying & filling information gaps;
2. Disseminating information on building EE through
web platform and capacity building events;
3. Publishing “policy pathways” to ensure effective
implementations of buildings EE policies;
4. Developing peer-to-peer training toolkits;
5. Enhancing collaboration between existing actors &
networks in developing and developed countries.
Building Energy Efficiency
„Design, build, and operate‟ Model – uses the building life cycle.
Analyze the various implementation mechanisms and
assess the impacts of rating tools & programs.
Increase multilateral cooperation in the field of building EE
Facilitate deployment of effective EE rating tools & programs.
Enable greater sharing of the building design, construction &
performance data that are both inputs to & outputs of rating
Co-Benefits of Improved
Governments need to commit and also provide the following:
Overarching policy framework combining mandatory and voluntary
policies and strengthening enforcement.
Remove barriers that distort markets such as energy subsidies.
Promote an integrated “systems approach” instead of a sector
approach (such as the “smart cities”).
And Business needs to:
Move towards an integrated value chain approach where suppliers
extend their service portfolio to offer complete solutions (auditing,
installation, maintenance and financing solutions).
Develop innovative financing vehicles for EE projects by
collaborating with financial institutions & developing expertise in EE
Behavioral change is a key driver of EE improvement.
IPEEC Task Groups:
Integrated Approach to EE
Policy Making/Capacity Building
EMAK - energy
WEACT – capacity
GSEP – energy
AEEFM – finance
Commercial/ Residential Sector
PEPDEE - utilities
SEAD - appliances
EMAK – energy management
SBN - buildings
GSEP – energy performance
City Implementation Tool for
Environmental Actions (CITEA)
Activity Forecast Module
- Macroeconomic Variables
- Saturation, Floor-space,
- End-use & Technology Mix
Energy & Water Intensity
Surveys & other data
- Measures & Best Practices
- Technology-cost Matrix
City Energy &
LBNL presentation at the IPEEC-WEACT Jakarta Workshop, October, 2011
Sustainable Urban Energy
Help 3 pilot cities in South-East Asia (Danang,
Cebu, Surabaya) formulate long term
sustainable urban energy development
• City Energy
• City GHG
• Municipal EE
• Institutional &
•Review of Existing
• City Energy &
• City Government
• EE Action Plan.
World Bank presentation at the IPEEC-WEACT Jakarta Workshop, October, 2011
(ZEH): 10 Key Issues
1. Localized Building
6. Policy Frameworks,
7. Adequate Housing,
2. Financial Mobilization, 8. Infrastructure
3. Building Performance
4. Consumer Education,
5. Training & Capacity
Innovolve presentation at the IPEEC-WEACT New-Delhi Workshop, December, 2011
An Example from
India: the Energy
Building Code (ECBC)
Developed by the Bureau
The ECBC covers:
The Building Envelope,
The Lighting System,
The HVAC System,
Solar Hot Water Heating,
The Electrical System.
of Energy Efficiency
Introduced in May 2007,
Targets new commercial
buildings with connected
load of 100 KW or 120
kVA in the five climatic
zones of the country.
Incremental cost: + 15%
Payback period < 5 years
for Integrated Habitat
•Guidelines for design, construction & operation,
• Performances benchmarks for energy & water use,
• Integration of relevant Indian codes and standards,
• In alignment with government policies & programs,
• ECBC +.
Reduction Compared to
Police Training School,
Some of our Partners
Private Entities / NGOs
International Partnership for Energy Efficiency
9 rue de la Federation, 75739 Paris Cedex 15, France