Promote energy efficiency buildings and strengthen international cooperation

1
Promote energy efficiency buildings and
strengthen international cooperation

• Shen Longhai
• Senior Advisor, NDRC Energy Research Institute
• Director, EMCA
• December 2007

2
Overview

• -- Importance and urgency of energy conservation
  in China
• -- Adopt EPC concept and speed up energy
  efficiency upgrade in existing buildings
• -- Enhance international cooperation in energy
  conservation

3
Importance and urgency of energy conservation in
China

• 1. China faces rising constraints imposed by
  the shortage of energy resources supply, growing
  supply-demand contradictions, and serious
  environmental pollution.

4
Importance and urgency of energy conservation in
China

• Tasks Saving energy,
• Reducing pollution,
• Tackling global climate change,
  
• Building a well-off,
  conservation-oriented, environment-friendly
  society with sustained economic growth.

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Importance and urgency of energy conservation in
China

• 2. Chinese government attaches great
  importance to energy conservation.
• Energy conservation one of Chinas basic
  national policies.
• Working to reduce energy use per unit of GDP
  output value by some 20 within five
  years(2006-2010).
• Worked out 1st medium- and long-term energy
  conservation plan.
• Planned various programs and took various
  measures to improve energy efficiency in the 11th
  five-year period.

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Importance and urgency of energy conservation in
China

• 3. China is implementing economic polices aimed
  at saving energy and reducing pollutants.
• Appropriated RMB 21.3 billion to fund 10 key
  energy conservation projects in 2007.
• Offering incentives to encourage technology
  innovations for energy conservation.
• Expanded scope of implementing policy and
  discriminatory electricity price policy favorable
  to use of renewable energy.

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Importance and urgency of energy conservation in
China

• 4. China is implementing 10 key energy
  conservation projects nationwide in the 11th
  five-year period.
• Energy Savings 240 million tce .

8
Importance and urgency of energy conservation in
China

• China is implementing the energy
  conservation activity of 1,000 corporations that
  are the largest energy consumers in the country.
• The energy consumption of 1,000
  corporations reached 797 million tce in 2006,
  accounted for one third of total energy
  consumption in China.
• Energy Savings 100 million tce in the
  11th Five-Year period.

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Importance and urgency of energy conservation in
China

• 5. Chinas Energy Conservation Law takes effect
  next year.
• Revised the 1997 law in October to add one
  chapter comprising seven articles on energy
  conservation in buildings.
• These articles stipulate that energy conservation
  standards should be followed in the design and
  construction of buildings, energy use should be
  controlled in public and large buildings, and
  solar energy or other renewable energy systems
  should be installed in new and existing
  buildings.

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Adopt EPC concept and speed up energy efficiency
upgrade in existing buildings

• EPC is a multi-win, new energy conservation
  mechanism.
• Facility owner and ESCO enter into agreement on
  implementing energy efficiency project.
• Facility owner pays ESCO through energy savings.
• There are three EPC models currently adopted in
  China
• Energy saving share
• Energy saving guarantee
• Outsourcing

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Adopt EPC concept and speed up energy efficiency
upgrade in existing buildings

• Chinas three pilot ESCOs created in partnership
  with World Bank and GEF focus on energy saving
  projects in industrial sectors.
• EMCA members have completed more projects on
  building energy efficiency upgrade than those on
  industrial energy efficiency upgrade.

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Adopt EPC concept and speed up energy efficiency
upgrade in existing buildings

• As China grows, building energy consumption
  continues to rise.
• In 2004, the energy consumption in buildings
  accounted for 22.3 of the total energy
  consumption in China.

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Adopt EPC concept and speed up energy efficiency
upgrade in existing buildings

• Low EE in buildings
• ----The annual energy consumption for heating in
  cities/towns in North China is 130 million tce.
• 14-25 kgce/m2, 2-3 times of the developed
  countries.
• ----The large public buildings with less than 4
  of the total area account for 22 of the total
  electricity consumption in cities and towns in
  China. The electricity consumption is 70-300
  kwh/yr unit area, 1.5-2 times of the developed
  countries.

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Adopt EPC concept and speed up energy efficiency
upgrade in existing buildings

• 2.0 billion square meters of new buildings are
  built in China each year and more than 90 of
  them are heavy energy consumers.
• Difficulty in making upgrades for improved energy
  efficiency out of the existing 43 billion square
  meters of buildings, only 4 have taken energy
  conservation measures.

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Adopt EPC concept and speed up energy efficiency
upgrade in existing buildings

• The annual energy saving potentials for
  buildings is 380 million tce by 2020,
• of which from heating supply is 280
  million tce
• from residential buildings
  is 90 billion kwh/yr(32 million tce)
• from public buildings is 210
  billion kwh/yr(68 million tce).

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Adopt EPC concept and speed up energy efficiency
upgrade in existing buildings

• Energy saving targets for buildings during the
  11th Five Year Plan Period
• the total energy saved from buildings will be
  120 million tce.
• of which
• ----Energy saving from newly constructed
• buildings 58.4.

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Adopt EPC concept and speed up energy efficiency
upgrade in existing buildings

• ----Supervision of energy saving from large
• Public buildings 9.2
• ----Reform on heating supply system and
  retrofitting of existing residential buildings
  for energy saving in North China 15.8
• ----Application in large scales of renewable
• energies in buildings 8.3
• ----Green Lighting 8.3

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Adopt EPC concept and speed up energy efficiency
upgrade in existing buildings

• The 10 key energy saving projects are in large
  part related to building energy conservation.
• China is determined to achieve the goal of
  saving 100 million tce of energy on buildings in
  the 11th five-year period.

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Enhance international cooperation in energy
conservation

• 1. Strengthen information exchange and personnel
  training on building energy conservation
• Information exchange with developed countries,
  training, and capacity building by ESCOs.
• Energy conservation promotion and training in
  under-developed regions and rural areas.

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Enhance international cooperation in energy
conservation

• 2. Explore and promote new models of
  implementing comprehensive building energy
  conservation projects
• Most energy saving projects in China involve
  single technology or single product (i.e.
  lighting, central air condition, solar energy,
  etc).
• Need to strengthen international cooperation to
  promote comprehensive, diversified funding (i.e.
  EPC combined with CDM or DSM) for such projects
  to maximize benefits.

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Enhance international cooperation in energy
conservation

• 3. Strengthen international cooperation and
  research in renewable energy integrated into
  buildings and expand use of renewable energy.
• The revised energy conservation law encourages
  use of solar energy or other renewable energy in
  new and existing buildings.
• Increase international cooperation in standard
  setting on renewable energy integrated into new
  buildings and use of renewable energy in energy
  equipment upgrades in existing buildings.

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Enhance international cooperation in energy
conservation

• 4. REEEP should reinforce its support for energy
  conservation, energy efficiency building in
  particular.
• REEEP should further support Chinas efforts
  to conserve energy in buildings, develop medium-
  and small-sized ESCOs, and promote EPC concept in
  mid-western regions and rural areas.

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Enhance international cooperation in energy
conservation

• Business and Finance theme of REEEP
• ----Capacity building to the financial institute
  to implement the RE and EE projects.
• ----Build up no-government funds to incentive the
  development of RE and EE.
• ----Set up a RETs investment facility,such as
  China IREDA.
• ----CDM for RET and EE in China, including ESCO
  in China.
• ----Study on Financing Mechanism of distribution
  of BIPV and LS-PV In China.

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Enhance international cooperation in energy
conservation

• Policy and Regulation theme of REEEEP
• ----Integration of the RE and EE technology into
  building.
• ----Assist to the planning at provincial level
  both for RE law and EE law.
• ----Cooperation across countries in the region.
• ----How to enforce the implementation of building
  energy efficiency standards in China.

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Enhance international cooperation in energy
conservation

• Commissioned Projects of REEEP
• Chinese experience of the implementation of the
  RE and EE policy and the impact to other
  countries.
• Rural renewable energy and energy efficiency
  planning and policy towards the rural enterprises
  and the residential.
• Energy efficiency in buildings areas what to do
  for new and existing buildings respectively?
• Solar hot water system RD information exchange
  among China, India and Africa countries.

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Contact me

• ESCO Association of China Energy
  Conservation Association( EMCA)
• Add Room 12B-03, Gate 7, Dachen Plaza,
  No.28 West St. Xuanwumen, Beijing, 100053, China.
• Tel [phone]
• Fax [phone]
• Website www.emca.cn
• e-mail slh_at_emca.cn

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• THANK YOU