A comparison between cost optimality and return on investment for energy retrofit in buildings-A real options perspective

Tadeu, Sérgio Fernando; Alexandre, Rafael Frederico; Tadeu, A.; Antunes, Carlos Henggeler; Simões, N.; Silva, Patrícia Pereira da

doi:10.1016/j.scs.2015.11.002

Cited by 54 publications

(44 citation statements)

References 20 publications

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“…The global costs method is used in Poland and in many European countries to establish the requirements of thermal protection of the buildings [21,[23][24][25][26][27][28][29][30][31][32][33]. The For the analysed buildings only in case of bio-mass boiler application the energetic optimum, assumed by global cost method, lies in the area of the used energy at the level of EU 15 .…”

Section: Cost's Optimal Resultsmentioning

confidence: 99%

The use of multi-criteria optimization to choose solutions for energy-efficient buildings

Basińska

2017

Bulletin of the Polish Academy of Sciences Technical Sciences

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Abstract. The goal of this paper was to optimize the building envelope and technical equipment in the building through the mitigation of the global cost value, and then to evaluate the influence of the chosen assumptions on the primary energy index. The analyses carried out using global cost method allow for finding the cost optimal solution but only for the some range of primary energy index variability. In order to find the optimal solutions it was proposed to use the multi-criteria optimisation, assuming the following as basic criteria: a global cost value and investment prices increase (economic criteria), a primary energy index (energy-related criterion), an emission of carbon dioxide (environmental criterion). The analysed case study refers to the technical solutions for the residential buildings with the usable energy demand at the level of 40 and 15 kWh/m 2 /a. The presented method might be applied to different types of buildings: those being designed and those being the subject of the thermo-modernisation. The results demonstrate that the proposed model allows for classification of the alternative technical solutions regarding the designing process and the building's technical equipment. The carried out analyses indicate the economic possibility to achieve the low energy building standard and show the need to concentrate the activities related to the installation technology and used energy source.Key words: global cost methodology, low energy buildings, European Union Directive, multi-criteria optimization. focused on the applied mechanical systems in the scope of heating, ventilation, air conditioning (HVAC) and the sources of the energy supplying the building. The goal of these activities is to re-shape the building and its technical equipment in such a way to limit the energy usage. As a result it should lead to the limitation of CO 2 emission. The basic aim of this paper is to present the method of the economic, energy-related and ecological evaluation of the building and its mechanical equipment. The main goal of this paper was to optimize the building's envelope and its technical equipment. The problem of the multi-criteria optimization was solved, including the minimalisation of the global cost, primary energy index, emission of carbon dioxide and the increase of the investment costs in relation to the basic scenario. The options of the possible technological activities aiming for achieving the standards of the low-energy building were compared and then the best solution for the Polish economic conditions was indicated. The analyses referred to the building components, creating the building's envelope as well as to the components of the mechanical systems (HVAC) and the energy sources supplying the building's technical systems. The primary aim was to provide a comparison of the proposed solutions with the basic scenario (BASE).The proposed method was used to indicate the integrated activities (construction technology, mechanical system, energy sources) aiming for the improvement of the technology...

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Section: Cost's Optimal Resultsmentioning

confidence: 99%

The use of multi-criteria optimization to choose solutions for energy-efficient buildings

Basińska

2017

Bulletin of the Polish Academy of Sciences Technical Sciences

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“…In order to take a decision based on more precise information, a deeper analysis of potential building renovations is recommended. To this end, one factor that should be considered in future research is the increase in the property value after being renovated [34,35]. Popescu et al [36] calculated an average increase of 2%-3% after thermal retrofitting, according to the results from a In order to take a decision based on more precise information, a deeper analysis of potential building renovations is recommended.…”

Section: Discussion Of the Resultsmentioning

confidence: 99%

Perspectives on Near ZEB Renovation Projects for Residential Buildings: The Spanish Case

et al. 2016

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EU regulations are gradually moving towards policies that reduce energy consumption and its environmental impact. To reach this goal, improving energy efficiency in residential buildings is a key action line. The European Parliament adopted the Near Zero-Energy Building (nZEB) as the energy efficiency paradigm through Directive 2010/31/EU, but a common technical and legislative framework for energy renovations is yet to be established. In this paper, the nZEB definition by COHERENO was adopted to evaluate several energy renovation packages in a given building, which is also representative of the Spanish building stock. Global costs are calculated for all of them following EPBD prescriptions. Two economic scenarios are analysed: with entirely private funding and with the current public financial incentives, respectively. The results show the divergence between optimum solutions in terms of costs and of minimum CO 2 footprint and maximum energy saving. Moreover, in the absence of enough incentives, some inefficient renovations could achieve a global cost close to the optimal cost. The optimum solution both in terms of energy performance and global costs was carried out and described.

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“…Generalizing the issue, it is interesting to remember that some critical points on the cost-optimal method itself were discussed. For instance, Tadeu et al (2016) consider that the global cost indicator is not enough for describing the point of view of an investor and it must be complemented with additional information. Becchio et al (2015) stressed the need to include in the global cost formula other benefits related to energy-design of buildings (as indoor comfort conditions, reduction of CO 2 emissions, embodied energy, real estate market value).…”

Section: Literature Reviewmentioning

confidence: 99%

Identification of cost-optimal and NZEB refurbishment levels for representative climates and building typologies across Europe

et al. 2017

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The energy consumptions of the building stock are playing a central role in the energy policy of the European Union. While the Member States are applying the Directives in force, the European Commission is working to update the regulatory framework. Specifically, it is necessary to achieve the great unrealized potential for energy savings in existing buildings. With this aim, the nearly zero-energy building (NZEB) target was introduced, and a comparative methodology framework to calculate cost-optimal levels of minimum energy performance requirements was proposed. This study focuses on the issue of building renovation, and it presents the results obtained with the application of a cost-optimal calculation method for identifying proper retrofit measures to reach costoptimal levels and NZEB levels. The assessment takes into account an exhaustive set of passive and active renovation options and it was extended to various building types of 60s-70s (residential and non-residential) in a wide range of representative European climatic conditions. A very relevant energy-saving potential was found for all cost-optimal benchmarks, and in many cases, the obtained NZEB refurbishments have resulted interesting also from an economic point of view.

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A comparison between cost optimality and return on investment for energy retrofit in buildings-A real options perspective

Cited by 54 publications

References 20 publications

The use of multi-criteria optimization to choose solutions for energy-efficient buildings

The use of multi-criteria optimization to choose solutions for energy-efficient buildings

Perspectives on Near ZEB Renovation Projects for Residential Buildings: The Spanish Case

Identification of cost-optimal and NZEB refurbishment levels for representative climates and building typologies across Europe

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