Intelligent Energy Europe Programme

Project N°: IEE/11/847/SI 2.615935

D2.1 NZEB STATUS REPORT

Project Coordinator: North-West Croatia Regional Energy Agency (REGEA)

The SUSTAINCO project The SUSTAINCO project aims to support ambitious European vision for the energy performance of its buildings. An important activity of SUSTAINCO will be to increase the visibility of front-runners, for both new build and/or renovation, with the aim of capacity and confidence building in the public sector. Most members of consortium are among the best known European energy agencies from Austria, Ireland, UK, Romania and Croatia, all of which have successful track records and numerous on-going or completed projects in area of sustainable buildings. Through focusing on key results from SERVE and other projects access to approaches, case studies and data to achieve cost optimum NZEB solutions will be highlighted. SUSTAINCO is coordinated by: North-west Croatia Regional Energy Agency Andrije Zaje 10, 10 000 Zagreb, Croatia

About this document This document corresponds to Deliverable 2.1 of the SUSTAINCO project and should give an overview of EU and national legislation (SUSTAINCO project partners) regarding energy performance in building sector and funding sources available for implementation of a NZEB or similar building standards. This will help the SUSTAINCO project to define uniform methodology for selection of target groups/project case studies and stakeholders. The paper will also be a source of information about funding sources and schemes that can be used in all partners’ countries and beyond. This document was prepared in June-September 2012 by: Project coordinator with input from all project partners.

Intelligent Energy Europe The SUSTAINCO project is co-funded by the European Union under the Intelligent Energy Europe Programme (Contract No. IEE/11/847).

The sole responsibility for the content of this publication lies with the authors. It does not necessarily reflect the opinion of the European Union. Neither the EACI nor the European Commission is responsible for any use that may be made of the information contained therein.

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1 Introduction

Europe has adopted an ambitious vision for the energy performance of its buildings. By the end of 2020 all new buildings shall be Nearly Zero Energy Buildings (NZEB), with intermediate targets by 2015. In parallel, Member States shall draw up National Action Plans for increasing the numbers of Nearly Zero-Energy Buildings. These plans shall include policies and measures to stimulate the transformation of existing buildings, which are refurbished, into NZEB. In addition, by 2015 all new buildings and buildings undergoing major renovation must have minimum levels of energy from renewable energy sources. Therefore, a major transformation must occur in the building sector during the next few years, in which the role of the public sector is crucial for overall success. NZEB represents a building which has very high energy performance, determined in accordance with Annex I to the Energy Performance of Buildings Directive 2010/31/EU (recast) - EPBD. The nearly zero or very low amount of energy required should be covered to a very significant extent by energy from renewable sources, including renewable energy produced on-site or nearby (see Definitions at the end of this report). Although EPBD requires usage of a NZEB standard, it does not give minimum or maximum harmonized requirements as well as details of energy performance calculation framework. The Directive defines NZEB as a building that has a very high energy performance and requires the calculation of primary energy indicator. Based on the Directive’s definition, NZEB is technically defined through the net zero energy building, which is a building using 0°kWh/(m²a) primary energy. Following the cost-optimality principle of the Directive, nearly net zero energy building definition is proposed as national cost optimal energy use of 0°kWh/(m²a) primary energy. It is up to the Member States to define NZEB definition with local conditions taken into account. This definitions have to be accepted be EC. It is important to determine the reflection of the Directive on SUSTAINCO project partner states regarding NZEB standard implementation in national legislation. In order to show progress in defining NZEB in every partner state, methodology and main challenges in defining NZEB are specified and partner perspective on how NZEB should be defined are compared.

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2 EU policy and plans related to Nearly Zero Energy Building standard

Following its ambitious targets, the EU prepared and adopted a detailed policy and legislation for implementation – presented in the table below.

Key legislation and plans Aims and expected impact

Energy Efficiency Directive (EED) proposal

Implementation of measures for ensuring energy efficiency in production and final consumption Energy savings in distribution by 1,5% of annual energy sold per year Public sector as a row model: Reconstruction of public buildings rate is 3% per year – Public building register by 1. January 2014. Public sector buying products/services/buildings with high energy performance

Regulation (EU) CPD No 305/2011

Definition of condition for the marketing of the construction products (building requirements, energy savings, thermal insulation)

Energy efficiency plan (EEP 2011)

Implementation of instruments for increasing public building refitting (Reconstruction of public buildings rate 3% per year) Financial savings of up to € 1 000 per household every year; Annual greenhouse gas emissions reducement by 740 million tons

2010/31/EU Energy Performance of Buildings Directive (EPBD)

Definition of methodology for energy performance of buildings indicator calculation, energy performance of new/refitted buildings minimum requirements, national plans for increasing number of NZEB, building certification and frequent heating/climatization control, control system for energy certificates and heating/climatization system reports establishment

2009/125/EC Energy related products Directive (ErP)

Eco-design of products in all of its phases, all environmental aspects are taken into account, recycling possibility

2009/28/EC Renewable Energy Sources Directive (RES)

National goals on renewable energy sources percentage in total energy production and in transport (10-49%) by 31. December 2014 for new/refitted buildings and from 1 January 2012. for public buildings

2006/32/EC Energy services directive (ESD)

Energy savings of 9% in 9 years, energy efficiency measures definition in public sector and energy subjects, frequent reporting on savings (every 3 year national action plans), energy audits and individual consumption measurement ensurement for every energy consumer, energy efficiency funds utilization

Energy efficiency action plan (EEAP 2006)

20x20x20 strategy (energy consumption decrease of 20%, energy production from RES increase of 20%, emissions decrease of 20%) by 2020 Energy savings in buildings potential 27-30%

Directive 2004/8/EC on the promotion of Cogeneration

High efficiency cogeneration (more than 5% of savings (10% for new systems) compared to classical technologies due to combined process of heat and electrical energy production

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3 Overview of national legislation and plans regarding NZEB standard implementation in countries participating in SUSTAINCO project

3.1 Austria

According to the Austrian constitution, building legislation falls into the responsibility of the regions (the 9 regions/states, ger. Länder). Therefore, the implementation of the EPBD is done primarily by the regions and the regional parliaments have to adopt the respective legislation. In the Austrian regions, especially due to the pioneering roles of the two regions represented in the SUSTAINCO project (Styria and Upper Austria), ambitious energy efficiency requirements for buildings, the use of renewable heating and energy performance certificate have a long tradition. Therefore, the NZEB approach (the combination of high-efficiency building with a high share of renewable energy) is very welcome. For jointly developing building legislation, the Austria regions have a co-operation platform, the so-called OIB (Austrian Institute of Construction Engineering). Within the framework of this institute, the experts from the 9 regions cooperate in technical aspects, aiming for a harmonised implementation of European Directives in all regions. An important instrument in this process is the so-called "OIB-Richtlinie 6" (OIB guideline number 6) which lays down a number of technical and pre-legislative issues relevant to the implementation of the EPBD (e.g. calculation procedures, technical building requirements, contents and lay-out of the building certificates etc.) The recent version of the OIB guideline (OIB Richtlinie 6, adopted in 2011) responded to the requirements of the EPBD with new calculation rules, requirements for the heat demand, the cooling demand and the final energy demand for buildings as well as a calculation method for primary energy demand, CO2 and for the total building energy efficiency factor ("Gesamtenergie-Effizienz-Faktor"). The total building energy efficiency factor is new and takes into account the thermal quality of the building and the use of renewables. The OIB RL also sets new rules for the energy performance certificates, including how primary energy demand, CO2 and total energy efficiency are presented on the certificate. In all 9 regions, the preparations for the legislative processes were started to implement the adopted OIB RL6 in the respective building laws and thereby making it legally binding. Currently, the experts are working on an addendum to the OIB RL 6 which includes the definition of the NZEB and the national plan with a step-by-step tightening of the requirements (in 2 year steps) of the NZEBs for the heat demand, the primary energy demand, CO2 and the total building energy efficiency until 2020 taking into account cost optimal levels. Two aspects of the EPBD implementation (connected to the energy performance certificates) fall into the responsibility of the national government as they do not concern the building law but civil law (implementing Art. 12 Par. 2 and 4 of the EPBD). For this, the national government has adopted the "Energieausweis-Vorlage-Gesetz 2012" (EAVG 2012) which will enter into force on 1 December 2012 (and then replace the current legislation in this field). When a building or an apartment is offered for rental or sales in a print or electronic media, the heat demand and the total energy efficiency factor have to be stated. In the course of a sales or a rental of building, an energy performance certificate has to be handed over (here the new law foresees stricter penalties).

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Current NZEB status in Austria is indicated in the table below.

NZEB standards in Austria

Implemented Not implemented Implementation in progress

Implementation of NZEB standards in Austria will be carried out through national/regional legislation regarding energy performance of buildings including corresponding regulations and ordinances listed in table below. National level

OIB Richtlinie 6 (2011) Energieausweis-Vorlage-Gesetz 2012 (EAVG) BGBl. 27 from 2012

Regional level

Building laws of the 9 regions (mostly called "Bauordnung" or "Baugesetz")

Financial and other support schemes available in Austria for the development of NZEB projects are indicated in the table below.

Financial and support schemes Short description

National

Kommunalkredit Public Consulting (www.umweltfoerderung.at) National Climate and Energy Fund (www.klimafonds.gv.at)

Investment subsidies for renewable energy projects, energy efficiency and environmental protection and for thermal retrofitting of residential and non-residential buildings

klima:aktiv (www.klimaaktiv.at) Information platform on relevant topics, e.g. on construction and retrofitting

Regional

Upper Austria (www.land-oberoesterreich.gv.at) Styria (www.verwaltung.steiermark.at)

A range of funding schemes for residential and non-residential buildings and for renewable heating

Energy agencies supported by regional governments: O.Ö. Energiesparverband (www.esv.or.at) LEV – Landesenergieverein (www.lev.at)

In Upper Austria and Styria, energy agencies support the implementation of NZEB buildings by carrying out information, promotion and training programmes

Energy advice programmes

Energy advice services offered on regional level carried out by energy agencies or departments of regional governments to support investment decisions related to NZEBs (technical implementation, support schemes, etc.)

EU

Several support programmes, e.g. IEE – Intelligent Energy Europe, FP7 – Seventh Framework Programme

European Programmes which also support NZEB related projects

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4.1 Croatia

According to Croatian National Strategy for Energy Development and the first National Energy Efficiency Action Plan (NEEAP), national indicative energy efficiency target until 2016 is set to 9% of average annual energy consumption calculated according to the available data for the time period 2001-2005, as the minimal target required by the Directive 2006/32/EC. The absolute amount of EE target is 19,77 PJ which is an ambitious target when it is known that the building sector in Croatia, with share of 42% of total final energy consumption in 2009 is the most energy intensive sector. According to Ordinance on building energy certification, all public buildings in Croatia over 1,000 m2 must display an Energy Efficiency Certificate (EEC) that shows the thermal energy consumption of the building using the familiar A to G energy rating and graphics. Each EEC, also includes an advisory report with list of relevant energy efficiency measures. In spring 2012, the Ministry of Construction and Physical Planning – MGIPU announced that introduction of the NZEB standard will be one of the most important activity in increasing overall energy efficiency in Croatia. Appropriate conditions for introducing NZEB in Croatia could only be set up through integrated building projects demanding all stakeholders cooperation, overcoming of the regulatory barriers, financial support to the end-users and preparations by thermal insulation and RES manufacturers. Highlight will be set on public sector as the leading example. As the first step in method in achieving NZEB standards, new methodology for energy audits will be determined. Instead of annual heating requirements calculation (amount of heat that heating system produces for one year to bring the building to maintain indoor design temperature in the building during the heating period), methodology for primary energy consumption calculation will be defined. After completing specified actions, it will be possible to define NZEB and plans to increase the number of NZEB buildings (based on cost optimality principle). Current NZEB status in Croatia is indicated in the table below.

NZEB standards in Croatia

Implemented Not implemented Implementation in progress

Implementation of NZEB standards in Croatia will be carried out through national legislation regarding energy performance of buildings including corresponding regulations and ordinances listed in table below. National level

Physical Planning and Building Act ZPUG (according to EPBD, CPD) (NN 76/07, 38/09, 55/11, 90/11, 50/12)

Technical regulation on energy economy and heat retention in buildings (NN 110/08, 89/09) Ordinance on Energy Certification of Buildings (NN 36/10, 135/11) Ordinance on the Requirements and Criteria to be met by Energy Auditors and Energy Certifiers of Buildings (NN 113/08, 89/09) Energy audits of buildings implementation methodology (10 June 2009) Technical regulation on heating and cooling systems in buildings (NN 110/08) Technical regulation on ventilation systems, partial air conditioning and air conditioning of buildings (NN 03/07) Technical regulation for chimneys in construction works (NN 03/07) Technical regulation for windows and doors (NN 69/06)

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Energy efficiency in the final consumption law ZUKE (according to EPBD, ESD, ErP) (NN 152/08)

Ordinance on energy audits of buildings (NN 05/11) Ordinance on energy audits of buildings authorization (NN 05/11) Ordinance on unique information system for energy efficiency (under construction) Ordinance on indicative energy savings target in the final consumption calculation and determination methodology (NN 40/10) Ordinance on measuring and verifying energy savings methodology (under construction) Ordinance on treatment of investments in energy efficiency measures implementation for budget users (under construction)

Financial and support schemes available in Croatia for NZEB projects development is given and shortly described in table below.

Financial and support schemes Short description

National

Fund for Environmental Protection and Energy Efficiency (www.fzoeu.hr)

Grants for public sector and interest-free loans for private sector investors

Croatian Bank for Reconstruction and Development (HBOR) (www.hbor.hr)

Special programmes for financing environmental protection, energy efficiency and renewable energy projects

Feed In Tariffs (FIT)

Microgeneration tariff paid by energy suppliers to householders and businesses with electricity generating technologies such as PV, wind, hydro etc. Unit rates increases each year for new installations.

EU

European Investment Bank (www.eib.org) and European Bank for Reconstruction and Development (www.ebrd.com)

For investors in the energy efficiency and renewable energy sector

Western Balkans Sustainable Energy Direct Financing Facility (WeBSEDFF) (www.websedff.com), Green for Growth Fund Southeast Europe (GGF) (www.ggf.lu) and Croatian Private Sector Support Facility (CroPSSF) (www.cropssf.hr)

For private sector investors

EU pre-accession aid - the Instrument for Pre-accession Assistance (IPA) (http://ec.europa.eu/regional_policy/thefunds/ipa/index_en.cfm) (http://www.2007-2013.eu/by_scope_ipa.php)

Promotion of energy efficiency measures and implementation of demonstration projects (major capital investments in energy efficiency are not supported)

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5.1 Ireland

In 2007, a Government White Paper Delivering a Sustainable Energy Future for Ireland: The Energy Policy Framework 2007-2020 was published. It sets Irish energy policy in the EU and international perspective that has placed climate change and energy security as global priorities. By 2020, it is proposed deliver a 20% saving in energy and a 20% reduction in energy demand through various means. In the Public Sector, a target of 33% energy saving across the sector has been set. This will be achieved via Energy Efficiency Programmes, progressively rolled out since 2008. Exemplar projects have and will be established, using bioenergy heating, renewable electricity and CHP. Guidelines for all capitally funded social housing are being revised and updated to ensure they are socially, environmentally and economically sustainable, during both the construction phase and the lifetime of the building, taking into account diverse factors such as building orientation, topography, optimizing sunlight, daylight and solar gain. Exemptions from planning for specific classes of micro-renewable technologies at a residential level have been introduced to allow households to install solar panels or erect small wind turbines (with some conditions) but without having to apply for planning permission. Financial support schemes have been introduced to support retrofitting of buildings in terms of energy efficiency and renewable energy. In order to maximize energy efficiency and conservation, a Building Energy Rating (BER) system of certification was introduced for new dwellings from 1st January 2007. BER certification was required for new non-domestic buildings from 1st January 2008 and for all existing buildings for sale or rent from 1st January 2009. From 1st January 2009, a Display Energy Certificate (DEC), must be put up in all public buildings over 1,000m². Following a recently successful pilot study involving over 5,000 homes and businesses, consultation is currently underway on rolling out a programme to oversee the introduction of Smart Meters into new and existing dwellings by 2016. To achieve the goals set out in the White Paper, the National Renewable Energy Action Plan (NREAP) and The National Energy Efficiency Action Plan 2009-2020 (NEEAP), set out the necessary deliverable actions required. It should be noted, that whilst there are no specific Irish support measures for Near Zero Energy Buildings (NZEB) in the strategic goals of the White paper or the actions set out in NREAP and NEEAP, all three documents are conducive to introducing the concept into Ireland. Current NZEB status in Ireland is indicated in the table below.

NZEB standards in Ireland

Implemented Not implemented Implementation in progress

National Renewable Energy Action Plan (NREAP) was submitted to the European Commission in 2010 under Directive 2009/28/EC. It lays out an overall national target of 16% of energy to come from renewable sources by 2020. The plan sets out targets for energy from renewable sources under the following headings: electricity, transport and heating. The National Energy Efficiency Action Plan 2009-2020 (NEEAP) was published in 2009 in response to Directive 2006/32/EC on Energy End Use Efficiency and Energy Services. NEEAP outlines Ireland’s commitment to a 20% reduction in energy demand by 2020. The policies and measures relevant to NZEB and an overview of NEEAP and how it might affect NZEB in Ireland are summarized in the table below.

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National level

National Renewable Energy Action Plan (NREAP) measures

ReHeat (Financial – Grant aid) Greener Homes Scheme (Financial) Part L of the Second Schedule of Building Regulations 1997-2011 (Regulatory) Statutory Instrument (SI) 83 of 2007 and SI 235 of 2008 (Regulatory) Smart metering pilot programme (Technical/Soft)

National Energy Efficiency Action Plan 2009-2020 (NEEAP) measures

Centralised advice and monitoring services (Support structures for Public Sector organisations to integrate energy management and energy efficiency initiatives.) Building Regulations for Non-Domestic Buildings. (Regulatory) Inspection of air-conditioning systems (Regulatory) Building Regulations for Domestic Buildings.(Regulatory) Grant support for energy retrofit (Financial) Demand side energy saving (Regulatory)

Sustainable Energy Act 2002

S.I. No. 346 of 2006: European Communities (Inspection and Assessment of Certain Air-Conditioning Systems) Regulations

S.I. No 666 of 2006: EUROPEAN COMMUNITIES (ENERGY PERFORMANCE OF BUILDINGS) REGULATIONS 2006

S.I. No. 235 of 2008 PLANNING AND DEVELOPMENT REGULATIONS 2008

SI No 5 of 2010 FINANCE ACT 2010

Building Regulations – Technical Guidance Document Part L (2011): Conservation of Fuel & Energy

S.I. No. 147 of 2011 EUROPEAN COMMUNITIES (RENEWABLE ENERGY) REGULATIONS 2011

S.I. No. 366 of 2011 EUROPEAN UNION (ENERGY LABELLING) REGULATIONS 2011

SI No 3 of 2012 ENERGY (MISCELLANEOUS PROVISIONS) ACT 2012

SI No 9 of 2012 FINANCE ACT 2012

S.I. No. 158 of 2012 SUSTAINABLE ENERGY ACT 2002 (SECTION 8(2)) (CONFERRAL OF ADDITIONAL FUNCTIONS — RENEWABLE ENERGY) ORDER 2012.

The Carbon Neutral Framework for dwellings is planned while the NZEB framework for Buildings other than Dwellings is planned for 2018. In 2011 the Sustainable Energy Authority of Ireland (SEAI) published its Roadmap for Residential Energy Use in Ireland. It predicts future energy demand based on a number of scenarios but on average 60% reduction in energy demand across the housing stock is planned. Financial and support schemes available in Ireland for NZEB projects development is given and shortly described in table below.

Financial and support schemes

Short description

National

ReHEAT Large scale renewable energy heating projects (Discontinued)

Better Energy Workplaces

Public and Private Non Residential Buildings (On-going support with a focus on ESCO, EPC solutions)

Better Energy Homes

Residential Buildings (Support for single measure upgrades but not specifically NZEB approach)

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6.1 Norway

The Norwegian Government intends to take a number of steps to reduce greenhouse gas emissions and promote technological advances. This is described in the Norwegian white paper on climate efforts nr 21-2012 and the Government will focus on energy-efficient housing. “The policy set out in this white paper will transform Norway as a whole, across all sectors, into a more climate-friendly society. We will make changes in most sectors, from industry to housing and transport. We plan a forward-looking process that will enable Norway to make the changeover to a low-carbon society. We will make it easier for people to make climate-friendly choices in their day-to-day lives, and will support industry in developing the necessary technology.” The Government will present the Action plan for energy efficiency, with the aim of reducing overall energy use in the building sector considerably by 2020. Energy use requirements in the building regulations will be tightened to passive house standard in 2015 and to close to zero-energy standard by 2020. The use of mineral oil-fired boilers by private households will be phased out. When it comes to the status of NZEB in Norway there is as yet no agreed definition of what this is. Therefore it is also difficult to report on the precise progress. Current NZEB status in Norway is indicated in the table below.

NZEB standards in Norway

Implemented Not implemented Implementation in progress

Implementation of NZEB standards in Norway will be carried out through national legislation regarding energy performance of buildings including corresponding regulations and ordinances listed in table below. National level

National standard NS3700:2010

Criteria for passive houses and low energy houses - residential buildings, contain criteria for passive and low energy houses. The standard includes definitions, requirements for heat loss, heating needs and energy supply and minimum requirements for building components and leakage figures and further requirements to testing procedures, test methods and reporting of energy performance upon completion for residential buildings can be defined as passive and low energy houses in the Norwegian climate.

National standard NS3031:2007

“Calculation of energy performance of buildings” and TEC 10 -“Regulation on technical requirements for construction (Construction Technical Regulation)” requires that at least 60% of the heating requirements in buildings larger than 500 m2 must be covered by other energy than direct electricity and fossil fuels. For buildings less than 500 m2, 40% must be covered by alternative fuels.

National standard NS 3701:2012

Criteria for passive houses and low energy buildings - Non-residential buildings. The standard sets requirements for professional buildings that can be defined as passive and low-energy buildings in Norwegian climate. The standard includes definitions, requirements for heat loss and heating needs, cooling needs, energy needs to lighting and energy supply as well as minimum requirements for individual building components. The standard also provides requirements leakage figures, test procedures, methods of measurement and reporting of energy performance upon completion of professional buildings.

A new energy labeling

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Came into force 1. July 2012, covering the more stringent requirements of energy efficient homes.

Smart Energy Efficient Buildings

Norwegian project that aims at developing new knowledge, integrated solutions, and technology that renders it possible to meet the energy needs related to buildings with considerably reduced resource consumption and environmental impact.

The Norwegian Directorate for Engineering Quality (DIBK)

During the autumn will initiate evaluation projects that will provide the basis for revising the energy requirements of the building regulations in 2015. It also now initiated a project to establish a national interpretation of nearly zero energy level (NZEB), in preparation for being able to set this as a requirement level in 2020 (or 2018 for public buildings).

Financial and support schemes available in Norway for NZEB projects development is given and shortly described in table below.

Financial and support

schemes Short description

National

ENOVA

Ensure that all new buildings and major renovation projects will be built by the passive standard in 2020. Anybody can apply for funding to build or rehabilitate for future sustainable standards. Supports environmentally friendly energy measures in the Norwegian home, and their goal is to make it simpler for households to choose suitable, energy efficient and climate friendly solutions. The tool used to achieve this is primarily financing concrete energy measures and offering active advice. They have no database that provides an overview of NZEB-buildings. Enova has been working with several operators and has established a web portal where all NZEB projects will be registered: www.arkitektur.no/?nid=84523. The Ecobox project database presents 150 examples of sustainable architecture, design and local development in Norway. Each presentation includes photographs, drawings and descriptions of key performance indicators. The base is aimed at everyone in the construction industry who seek inspiration and knowledge on environmentally friendly construction.

Support for the study of passive

A programme with aim to give appliers a solid basis for decision making to select appropriate measures for energy efficiency. This program supports projects in the early stage and will provide a financial contribution to find out what is possible, profitable and appropriate for each particular project to reach the future energy standards.

Support for passive and low energy buildings

A programme created for those who want to build - or rehabilitate - in relation to the standards for passive or low energy buildings. The size of the support is determined by the applicant`s ambition, building category and area. It`s also possible to apply for consultant support to ensure the quality of the chosen solutions.

Support to existing buildings and facilities

A programme offers financial assistance for investment in physical measures intended to reduce energy use. Certainly through the conversion of local heat production based on renewable energy sources. The support is given to specific measures per building or per plant. The program is open for applications for individual buildings and individual plants, or for larger portfolios. The only requirement is that the measures of conversion and energy reduction totally cut the consumption by at least 10 percent and a minimum of 100 000 kWh per year.

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7.1 Romania

According to the National Energy Efficiency Action Plan NEEAP (PNAEE), national indicative energy efficiency target until 2016 is set to 9% of average annual energy consumption calculated according to the available data for the time period 2001-2005, as the minimal target required by the Directive 2006/32/EC. The annual average decrease of energy consumption between 2008 - 2016 should be 1.5%, with 50% greater than the minimum required by Directive 2006/32 / EC. In Romania the energy share of the buildings declined from 38% in 2000 to 32% in 2008 but increased to 35.9% in 2010 due to decrease overall consumption – with a strong decrease in industrial sector. The primary energy consumption per capita in 2010 (1,594 tep) was lower than in 2000 (1,621) and has values below the EU27 average. The primary energy intensity and the final energy had a favourable outcome but still above the EU 27 average values. In Romania, the implementation of the EPBD is the overall responsibility of the Ministry of Regional Development and Tourism (MDRT), together with the Ministry of the Economy and the Ministry of Environment. According to the National Law no. 372/2005 on energy performance of buildings, all public buildings in Romania over 1,000 m2 must display an Energy Efficiency Certificate (EEC) that shows the total energy consumption of the building using the familiar A to G energy rating and graphics. Each EEC also includes an advisory report with list of relevant energy efficiency measures. For new buildings with over 1,000 m2, the public authorities are obliged by the law no. 372, to require the preparation of a feasibility technical study, economic and environmental on the possibility to use of alternative energy production systems through planning certificate given to issuing the building permit. In 18th April 2012, Romanian Government approved the proposal of the Ministry of Regional Development and Tourism (MDRT), the Law for modification and supplementing Law no. 372/2005 of the Energy Performance of buildings; these modifications are necessary for transposition into national law of the changes and additions made by Directive 2010/31/EU on the energy performance of buildings. In conclusion, until the completion of the national legislation with Directive 2010/31/EU approval and drafting rules for achieving the energy audit for NZEB defining standards into national legislation, we could not provide information on NZEB in Romania. Current NZEB status in Romania is indicated in the table below.

NZEB standards in Romania

Implemented Not implemented Implementation in progress

Implementation of NZEB standards in Romania will be carried out through national legislation (modification of the Law no. 372) regarding energy performance of buildings including corresponding regulations and ordinances listed in table below.

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National level

The Law 372/2005

Transposes the EPBD in the Romanian legislation: - The general framework of the methodology for the calculation of the energy performance of

buildings - The application of several minimum requirements regarding the energy performance of new

buildings - The application of several minimum requirements regarding the energy performance of

existing buildings that are being renovated - The energy certification of buildings.

Law No. 199/13.11.2000 "Energy Efficiency Law"

Create the necessary legal framework for the development and implementation of a national policy for the efficient use of energy.

Government Ordinance no. 174/2002

Establishing special measures for the thermal rehabilitation of multi-storey residential buildings and related facilities, performed by type projects during 1950-1985.

Government Ordinance no. 22/2008

On energy efficiency and promoting the use of renewable energy to end consumers

Technical Standards

The Methodological Norms for Application of Law 372/2005 set the requirements for the energy performance of buildings, the energy audit and the energy performance certificate, as well as for the assessment of the heating systems and of the acclimatization systems. Standard for thermal expertise and existing buildings energy and heating and hot water preparation therefor, norm NP 048/2000; Standard for development and issue the energy certificate of existing buildings, development methodology and granting existing building energy certificate, norm NP 049/2000 Standard for achieving energy audit of existing buildings and heating and hot water preparation intalations, norm NP 047/2000 Standard for thermo-hygro-energy performance of existing residential buildings envelope, to the rehabilitation and upgrading, indicative NP 060/2002

Financial and support schemes available in Romania for increase energy efficiency of the buildings are given and shortly described in table below. Financial and support schemes Short description

National

The Romanian Energy Efficiency Fund (www.free.org.ro)

Financial institution providing commercial financing of investments projects aiming the rational use of energy

Rehabilitation Program addresses to the owners` associations that want to increase the energy performance of the housing blocks (www.mdrt.ro)

For housing blocks built on the basis of a project elaborated in the period 1950-1990, regardless of their heating system.

“Green House” (www.afm.ro)

Program for installation of heating systems using renewable energy, including replacement or supplement conventional heating systems. For households and for public authorities and institutions

EU

Several support programmes, e.g. IEE – Intelligent Energy Europe, FP7 – Seventh Framework Programme

European Programmes which also support NZEB related projects

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8.1 Spain

During the past few years, there has been a series of improvements in the specific legislation regards the energy efficiency in the building sector. These actions correspond to the implementation of the European Directives (such as EPBD), although their transposition to the national regulations is still in progress. Regarding these changes, the approval of the Technical Building Code (CTE), the revision of the Regulation on Building Heating Installations (RITE) and the approval of a Building Energy Certification procedure for new buildings significantly stand out. The government has announced the new Building Energy Certification procedure for the existing buildings, which is soon to be soon approved. None of these improvements could be strictly specified as a part of NZEB standards implementation process, but they should be described as paving the way to the Spanish NZEB standards implementation in the near future. The common purpose of all these changes is cutting back the energy consumption in a building sector by 20%, with a subsidy of at least 22% of the necessary investment to be made. The introduction of the NZEB standards in national legislation is coordinated by IDAE, the national agency responsible for promoting energy efficiency and the increased use of renewable sources of energy in Spain. Some of their actions in Catalonia are delegated to ICAEN, the Catalan energy agency. Given the compulsory implementation of the EPBD recast, current requirements set up for the building sector will have to be tightened in order to meet the requirements defined in EPBD. According to this, the Spanish normative will be tightened gradually in order to achieve the NZEB objective by 2020. In that sense, the revision of both the CTE and RITE requirements has already started. In addition, in Spring 2012 IDAE was working together with other regional energy agencies and relevant NZEB experts in Spain in order to develop a precise definition of a “nearly zero-energy building” for the different Spanish climatologic areas, taking into account the heating and cooling demands, etc. Current NZEB status in Spain is indicated in the table below.

NZEB standards in Spain

Implemented Not implemented Implementation in progress

The current Spanish legislation regarding energy performance of buildings is listed in the table below. National level

Royal Decree 314/2006 of 17th March approving the Technical Building Code (CTE) Royal Decree 47/2007, of 19th January, approving the Energy Certification Procedure for new buildings Royal Decree 1027/2007, of 20th July, approving the Thermal Building Regulations

Pending of approval / Under revision

Energy Certification Procedure for existing buildings (to be approved during 2012) Revision of the Technical Building Code (CTE) Revision of the Regulation of Thermal Installations in Buildings (RITE)

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There are some financial and support schemes in Spain to improve energy efficiency and implement the use of renewable energies on both new and existing buildings. Even if these measures could not be specified as NZEB measures, they are detected as those that boost the sector to the NZEB goal.

Financial and support schemes

Short description

National

Action Plan 2008-2012 (PAE4 2008-2012)

Energy Saving and Efficiency Plan, which envisages incentives to improve energy efficiency in different sectors, including measures for new and existing buildings For existing buildings:

- thermal reconstruction of building envelope; - improvement of the energy efficiency in HVAC installations; - improvement of the energy efficiency in lighting installations; - promotion of refitting of the existing buildings with a high

energy certification; For new buildings:

- up to 15 – 50 €/m2 for new buildings with high energy rating (A or B);

State’s Housing and Rehabilitation Plan 2009-2012

Incentives to the state subsidized dwellings The subsidies can rise up to:

- 3500 €/home for A rated dwellings; - 2800 €/home for B rated dwellings; - 2000 €/home for C rated dwellings;

Royal Decree-law 6/2010 which

Measures to boost economic recovery and employment - Deduction of the Tax Revenue for improvement works on

residential housing; - Reduction of the Spanish Value Added Tax for renewal and

repair works of the main residence;

Funding lines directly managed by IDAE to integrate renewable energies in buildings: Biomcasa, Geotcasa and Solcasa

These funding lines are articulated through qualified energy services companies (ESCO). Interest rates:

- Biomass: Euribor + 1.5% - Geothermal: Euribor + 2.2% - Solar energy: Euribor + 2.2%

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9.1 UK

The UK Climate Change Act 2008 sets a target for 80% reduction in carbon emissions by 2050 (and 34% by 2020). This includes a target for minimal emissions from existing homes by 2050. Carbon and energy standards for new buildings are made increasingly stringent, and new homes built after 2016 will have to be zero carbon, but it is estimated that 80% of the homes that will be standing in 2050 have already been built. The focus therefore must be upon retrofit and renovation of existing homes. In England, Building Regulations relating to energy in buildings (both domestic and non-domestic) are outlined in Part L (Conservation of fuel and power) and where domestic dwellings are concerned (L1a), these relate to the increasingly stringent emission reductions prescribed by the Code for Sustainable Homes. In December 2011, responsibility for Building Regulations in Wales passed to Welsh Ministers; at this time, the 2010 Building Regulations still apply but any future reviews and changes will be undertaken separately in Wales. Key points in these regulations are the original CO2 reduction targets based on Target Emission Rate (TER) of 2006 Building Regulations, which is determined by the floor area of the property. Currently, discussions are on-going as to whether to include ‘allowable solutions’, rather than insisting on Zero Carbon Homes, as specified by Code Level 6. Allowable solutions have yet to be confirmed, but may include: going beyond minimum carbon compliance (exceeding fabric energy efficiency and/or on-site electricity or heat production), giving credit for low energy appliances or building controls to reduce energy demand, exporting low carbon or renewable heat from the development, credit for contribution by the developer towards low or zero carbon infrastructure, etc. It is hoped that a final definition of NZEB will be available later in 2012, along with details of any eligible 'allowable solutions'. Building Regulations L1b, relating to existing dwellings, has requirements relating to refurbishments. When renovating more than 25% of a given element of a building, there is a range of requirements to improve the energy efficiency of that element, where appropriate. Public buildings are also increasingly the target of national legislation to improve energy performance - since 1 October 2008 all public buildings in the UK over 1,000m2 must display a Display Energy Certificate (DEC) prominently at all times – the DEC shows the actual energy consumption of the building using the familiar A to G energy rating and graphics. Each DEC is accompanied by an advisory report that is designed to help building owners and occupiers to improve the energy efficiency of their buildings so that future DEC’s show a better rating. There are financial penalties for not displaying the DEC and having possession of a current advisory report. In addition, all local authorities are required to monitor and report the CO2 emissions from their own operations including energy use in buildings (formally known as National Indicator 185) and this data is now required to be provided to central government as part of the single data reporting list. Many public buildings also fall under the remit of the Carbon Reduction Commitment Energy Efficiency Scheme (CRC) which is a mandatory cap and trade scheme in the United Kingdom that will apply to large non energy-intensive organisations in the public and private sectors. Organisations participating in the scheme, including local authorities and other public sector bodies are required to submit annual energy use data and pay fines on any emissions over agreed limits. A league table is also produced as an incentive for action.

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Current NZEB status in the UK is indicated in the table below. NZEB standards in the UK

Implemented Not implemented Implementation in progress

Implementation of NZEB standards in the UK will be carried out through national legislation regarding energy performance of buildings including corresponding regulations listed in table below. National level

Building regulations Part L (Conservation of fuel and power) – linked to Code for Sustainable Homes requirements:

L1a (new domestic dwellings), 2010 (with 2010 amendments);

L1b (existing domestic dwellings) 2010 (with 2011 amendments);

L2a (new non-domestic buildings) 2010 (with 2010 amendments);

L2b (existing non-domestic buildings) 2010 (with 2011 amendments). Building regulations Part E (Resistance to the passage of sound) Building regulations Part F (Ventilation) Building regulations Part G (Sanitation, hot water safety and water efficiency) Building regulations Part J (Heat producing appliances) Building regulations Part N (Glazing safety) Building regulations Part P (Electrical safety)

Financial and support schemes available in the UK for development of NZEB projects is given and briefly described in table below.

Financial and support schemes Short description

National

Feed In Tariffs (FIT) Microgeneration tariff paid by energy suppliers to householders and businesses with electricity generating technologies such as PV, wind, hydro etc. Unit rates degress each year for new installations.

Renewable Heat Incentive (RHI)

Similar to FIT, but applicable to heat generating technologies (biomass, heat pumps etc), funded by Government. Domestic scale installations will have output ‘deemed’ rather than measured to calculate payments.

Renewable Heat Premium Payment

One-off grants available to householders for installations of renewable heat generating technologies (as RHI) to incentivise installation before RHI is launched for domestic sector in autumn 2012.

Green Deal

Primarily a loan finance scheme which householders and businesses can use for installation of energy efficiency and renewable energy measures; repayments are via fuel bills and should not exceed the savings achieved through installation. Eligible measures include those recommended on the revised Energy Performance Certificate and householders and businesses must also have an ‘occupancy assessment’ to calculate realistic savings.

Energy Company Obligation (ECO)

Linked to Green Deal, ECO will offer further financial assistance to households in energy poverty, similar to current obligations on energy companies, where measures such as wall and loft insulation are offered free of charge.

Carbon Trust loans Interest free (Wales) and low interest (England) loans to purchase specific energy saving equipment, where loan amount available depends on savings and payback.

EU

European Investment Bank (www.eib.org) and European Bank for Reconstruction and Development (www.ebrd.com)

For investors in the energy efficiency and renewable energy sector

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4 NZEB status of SUSTAINCO project partner countries

Summarizing the available data, the current NZEB status in countries participating in SUSTAINCO project is indicated in the table below. SUSTAINCO partner country NZEB standard in period June-September 2012

Austria Implemented Not implemented Implementation in progress

Croatia Implemented Not implemented Implementation in progress

Ireland Implemented Not implemented Implementation in progress

Norway Implemented Not implemented Implementation in progress

Romania Implemented Not implemented Implementation in progress

Spain Implemented Not implemented Implementation in progress

UK Implemented Not implemented Implementation in progress

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5 Conclusions and Recommendations

Energy performance requirements for buildings in Europe have been set and continuously changing for more than 30 years. The ambitious energy goals were usually imposed through successful pilot building projects and the same energy performance levels have then been transferred to the building practice by top runners of the building industry. Innovations have been developed that allow reducing the energy demand continuously and an important range of builders have adopted this as their standard energy performance level for buildings, which enabled the governments to tighten the general minimum energy performance requirements. Considering available data on NZEB status in seven countries participating in SUSTAINCO project, it could be concluded that only one of them (Spain) has not yet started the process of transformation of the national legislative framework for adoption of NZEB standard, but this is expected soon. The best progress in adoption of NZEB standard has been made in Austria, with adoption of OIB giudeline (OIB Richtlinie 6, adopted in 2011) in all nine regions of the country (adopted in the respective building laws, making it legaly binding). In two year time an addendum to the OIB RL 6, which will include the definition of NZEB, is planned to be enacted. The most of the countries including Croatia, Ireland, Romania and UK have implemented 20/20/20 target in their National action plans according to the EPBD Directive 2006/32/EC and have started working on implementing EPBD Directive 2010/32/EC requirements (defining the new methodology for energy audits and certification, the cost-optimality calculation by the end of 2012, the plans to increase the number of NZEB buildings). Although Norway is not one of the EU Memeber States, the Action plan for energy efficiency is planned to be introduced by Government, with the aim of reducing overall energy use in the building sector considerably by 2020. Energy use requirements in the building regulations will be tightened to passive house standard in 2015 and to close to zero-energy standard by 2020. Regarding financial institutions in countries participating in SUSTAINCO project which finance renewable energy and efficiency energy projects for public and private sector, most of the countries have national support schemes already in place. Regarding regional support schemes only Austria has developed support schemes for residential and non residental buildings funding. Most of the countries have feed-in tarifs in place giving subsidies through national institutional funds for implementing RES measures in private households. All countries participating in SUSTAINCO project have financial framework ready to adopt new funding sources, like Structural and Cohesion funds regarding support to NZEB projects in national or regional level. On the other hand, sole responsability for insuring this funding sources lies on Government capability to plan ahead, insuring that the operational programmes for energy sector are in place.

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6 Definitions

For the purpose of this report (as in the EPBD), following definitions shall apply: 1. "building" means a roofed construction having walls, for which energy is used to condition

the indoor climate; 2. "nearly zero-energy building" means a building that has a very high energy performance,

as determined in accordance with Annex I. The nearly zero or very low amount of energy required should be covered to a very significant extent by energy from renewable sources, including energy from renewable sources produced on-site or nearby;

3. "technical building system" means technical equipment for the heating, cooling, ventilation, hot water, lighting or for a combination thereof, of a building or building unit;

4. "energy performance of a building" means the calculated or measured amount of energy needed to meet the energy demand associated with a typical use of the building, which includes, inter alia, energy used for heating, cooling, ventilation, hot water and lighting;

5. "primary energy" means energy from renewable and non-renewable sources which has not undergone any conversion or transformation process;

6. "energy from renewable sources" means energy from renewable non-fossil sources, namely wind, solar, aerothermal, geothermal, hydrothermal and ocean energy, hydropower, biomass, landfill gas, sewage treatment plant gas and biogases;

7. "building envelope" means the integrated elements of a building which separate its interior from the outdoor environment;

8. "building unit" means a section, floor or apartment within a building which is designed or altered to be used separately;

9. "building element" means a technical building system or an element of the building envelope;

10. "major renovation" means the renovation of a building where: (a) the total cost of the renovation relating to the building envelope or the technical building

systems is higher than 25 % of the value of the building, excluding the value of the land upon which the building is situated; or

(b) more than 25 % of the surface of the building envelope undergoes renovation; Member States may choose to apply option (a) or (b). 11. "European standard" means a standard adopted by the European Committee for

Standardisation, the European Committee for Electrotechnical Standardisation or the European Telecommunications Standards Institute and made available for public use;

12. "energy performance certificate" means a certificate recognised by a Member State or by a legal person designated by it, which indicates the energy performance of a building or building unit, calculated according to a methodology adopted in accordance with Article 3;

13. "cogeneration" means simultaneous generation in one process of thermal energy and electrical and/or mechanical energy;

14. "cost-optimal level" means the energy performance level which leads to the lowest cost during the estimated economic lifecycle, where:

(a) the lowest cost is determined taking into account energy-related investment costs, maintenance and operating costs (including energy costs and savings, the category of building concerned, earnings from energy produced), where applicable, and disposal costs, where applicable; and

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(b) the estimated economic lifecycle is determined by each Member State. It refers to the remaining estimated economic lifecycle of a building where energy performance requirements are set for the building as a whole, or to the estimated economic lifecycle of a building element where energy performance requirements are set for building elements.

The cost-optimal level shall lie within the range of performance levels where the cost benefit analysis calculated over the estimated economic lifecycle is positive;

15. "air-conditioning system" means a combination of the components required to provide a form of indoor air treatment, by which temperature is controlled or can be lowered;

16. "boiler" means the combined boiler body-burner unit, designed to transmit to fluids the heat released from burning;

17. "effective rated output" means the maximum calorific output, expressed in kW, specified and guaranteed by the manufacturer as being deliverable during continuous operation while complying with the useful efficiency indicated by the manufacturer;

18. "heat pump" means a machine, a device or installation that transfers heat from natural surroundings such as air, water or ground to buildings or industrial applications by reversing the natural flow of heat such that it flows from a lower to a higher temperature. For reversible heat pumps, it may also move heat from the building to the natural surroundings;

19. "district heating" or "district cooling" means the distribution of thermal energy in the form of steam, hot water or chilled liquids, from a central source of production through a network to multiple buildings or sites, for the use of space or process heating or cooling.

7 Abbreviations

NZEB - Nearly Zero-Energy Building (National cost optimal energy use of > 0 kWh/(m²a) primary energy) NN – Official Gazette in Croatia EE – Energy Efficiency RES – Renewable Energy Systems EEC – Energy Efficiency Certificate