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This policy set aims at improving energy performance in existing residential buildings by introducing heat metering and energy-efficient retrofitting as well as the heat pricing system reform in the North China heating area. Implemented policies include target and planning, financial incentives, provision of information, and legal requirements. By the end of 2011, the retrofitted floor area reached 310 million m2, resulting in energy savings of 293MJ/m2 per heating period. By 2020, the target is to retrofit a total of 1.3 billion m2 of floor area.
This policy set was targeted at the retrofitting of 150 million m2 of floor area in order to save 2 million tce of annual energy consumption during the 11th Five-Year period. This target floor area equals ca. 5 % of the pre-1997 heated residential floor area in urban northern China. By 2020, the target is to retrofit a total of 1.3 billion m2 of floor area. Another 14 Mtce of annual energy savings is expected from the heat supply reform including the heat pricing reform for the 2.7 billion m2 of urban buildings that have district heating systems.
This target has been further disaggregated into targets for provincial governments. The retrofitting consists of three focuses: installation of heat meters and temperature control equipment, retrofitting heat generation and heat supply network, and energy-efficient retrofitting to the building envelope. MOF and MOHURD have released Policy 1 and Policy 6 to provide financial support for the heat metering and energy-efficient retrofitting for existing residential buildings in the heating areas in North China. The incentive is 55 RMB/m2 for energy-efficient retrofitting in the severe cold zone and 45 RMB/m2 for retrofitting in the cold zone. The incentive covers about 15 to 20 % of the overall retrofitting cost. It is provided by the central government to the provincial governments as a first, who then allocate it to the individual projects. Policies 2-4 have been designed and released by MOHURD to address the overall implementation strategy (Policy 2), the technical guide for energy-efficient retrofitting (Policy 3), and the assessment of heat metering and energy-efficient retrofitting projects (Policy 4). MOHURD, NDRC, MOF and General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) jointly released Policy 5 to further push the heat metering reform.
By the end of 2010, the 15 provinces and cities in the North China heating area had accomplished retrofitting projects of 182 million m2, which achieved two mtce in energy saving per year, i.e. around 90 kWh/m2/year, which is 40 % of the pre-retrofit energy consumption, 5.2 million tons of CO2 emission, and 400,000 ton of SO2 emission. By the end of 2011, the retrofitted floor area had further increased to 310 million m2. An additional benefit was that thermal comfort for the residents had increased significantly: The indoor temperature of the retrofitted projects increased by 3-6℃, some of them increased by more than 10℃.
|1||财政部关于印发《北方采暖区既有居住建筑供热计量及节能改造奖励资金管理暂行办法》的通知||Interim Measures of Management of Financial Subsidy for Heating Metering and Energy Efficiency Retrofit of Existing Residential Buildings in Northern Heating Areas|
|2||关于推进北方采暖地区既有居住建筑供热计量及节能改造工作的实施意见||Opinion on Implementation of Heating System Measurement and Energy Conservation Retrofit for Existing Residential Buildings in Northern Heating Areas|
|3||关于印发《北方采暖地区既有居住建筑供热计量及节能改造技术导则》（试行）的通知||Notice on the Issuance of 'Technical Guidance for Heating System Measurement and Energy Conservation Retrofit for Existing Residential Buildings in Northern Heating Areas (Interim)’|
|4||关于印发《北方采暖地区既有居住建筑供热计量及节能改造项目验收办法》的通知||Notice on the Issuance of 'Acceptance measures of Heating System Measurement and Energy Conservation Retrofit project for Existing Residential Buildings in Northern Heating Areas’|
|5||关于进一步推进供热计量改革工作的意见||Opinion on Further Promoting Heating System Measurement Renovation|
|6||关于加大工作力度确保完成北方采暖地区既有居住建筑供热计量及节能改造工作任务的通知||Notice on Strengthening Working to Accomplish the Target of Heating System Measurement and Energy Conservation Retrofit|
The building area in urban northern China increased from less than 3 billion m2 in 1996 to over 8.8 billion m2 in 2008. Due to government’s energy efficient efforts, including a much higher energy efficiency for new buildings, the average energy consumption by heating in this region had decreased from 24.3 kgce/(m2·a) in 1996 to 17.4 kgce/(m2·a)in 2008 (THUBERC 2011).
The energy consumption from winter heating in North China is currently more than 150 million tce per year, representing over 50% of the building energy consumption. Moreover, the indoor thermal comfort is poor and heating is very inefficient. The billing of heating costs is mostly based on the heating area and not the consumption based on actual need.
The aim of this general policy set is to improve the energy efficiency of existing residential buildings by introducing the heat metering and energy-efficient retrofitting as well as the heat pricing system reform. In detail:
Policy 1: It specifies the target groups for gaining the subsidy: energy-efficient building envelope, installation of heat meters and temperature control equipment, retrofitting of heat generation and heat supply network, and other measures related to heat metering and energy-efficient retrofitting. Besides, it also provides the rewarding principles and detailed calculation method, instalment and subsidy use, as well as supervision and management requirements.
Policy 2: It formulates the overall implementation strategy of energy-efficient retrofitting and heat metering reform. Firstly, it stresses the work principle and targets for the heat metering and energy-efficient retrofitting work for each province and city in North China. Secondly, it lists concrete tasks to be done to achieve the targets, including investigating current energy consumption, formulating implementation plans for the reform, retrofit implementation, improving ex-post evaluation, and summarizing and disseminating lessons learnt. Finally, it also specifies the supporting measures needed for the reform, such as institutional reform, pursuing multiple financing sources and developing a market mechanism, improving organisational structure, formulating technical standards.
Policy 3: It provides a technical guide for heat metering and energy-efficient retrofitting for existing residential buildings in the heating areas in North China. The contents of the guide include building energy efficiency diagnosis, basic principle of building energy efficiency retrofitting, retrofitting regulations, and methods of achieving the energy efficient building envelope. Heating system retrofitting, heat metering and the testing and evaluation of retrofitting results is also included.
Policy 4: It directs the assessment of heat metering and energy-efficient retrofitting projects, including the reference, condition, scope, and procedure of accepting the projects.
Policy 5: MOHURD, NDRC, MOF and AQSIQ are jointly responsible for releasing Policy 5 to promote heat metering reform. Seven tasks were specified in this policy: (1) to widely promote heat metering prices and charges based on consumption; (2) to improve the supervision of heat metering installation in new building; (3) to finish the target of 150 million m2 existing residential building retrofitting work set by State Council; (4) to reinforce the responsibility of the heat supply company; (5) to complete the heat metering technology system; (6) to strengthen the quality supervision and inspection of the heat metering products; (7) to strengthen the management for energy efficiency of the heat supply network.
Policy 6: To ensure the accomplishment of the target for the 11th Five-Year period as set in Policy 1 by the end of 2010, MOHURD and MOF released Policy 6 at the beginning of 2010 to push progress by specifying the work requirements of existing building retrofitting for the local construction and financial bureaus: so as to ensure the accomplishment of the rest of the retrofitting work in 2010 with good quality, and to conclude the retrofitting mode by the 12th Five-year period, etc.
It is a national policy with regional focus.
This policy set focuses on retrofitting of existing residential buildings in North China. Policy set 1 (mandatory building energy code), policy set 3 (volunteer building energy label) and policy set 4 (volunteer green building label) also apply to the retrofitting projects.
In addition, the industry standard ‘Technical specification for heat metering of the district heating system’ (JGJ 173-2009) was one of the bases for Policy 4.
Along with the development of technology in the field of building energy efficiency and heat metering, the methods of subsidy distribution and acceptance checking should be updated, such as the ‘weighting’ allocated to retrofitting focus, progress coefficient.
More support should be given to the development of energy performance contracting (EPC).
The following pre-conditions are necessary to implement this policy type
Agencies or other actors responsible for implementation
The policy set assigned tasks to a number of existing agencies: Local construction administrative departments, building energy efficiency consulting organizations, construction contractors, building research institutes, heating supply companies etc.
Subsidies can be very helpful for implementing energy efficiency retrofitting work. Policy 1 provides the rewards leading the whole energy efficiency retrofitting work in the North China heating area . Other than the incentives from the central government, provincial governments are also required to release provincial subsidies.
The calculation of the energy performance for the building or its components follows the same test procedures as specified in China’s Regulations for Energy efficiency of building design and operation in new and refurbished buildings (cf. the bigEE China file on these).
A process for ensuring compliance
In addition, according to the process for ensuring compliance, building energy efficiency retrofitting projects follow the same regulation as new building projects: the examination organizations strictly examine the retrofit design documents in accordance with the standards. The carrying out of the retrofitting project will only be given permission after all components in the design are qualified.
Every year the local construction bureaus examine the implementation of building energy efficiency measures during their inspection of building projects, existing building retrofitting and heat metering reform are part of them. Thereafter, MOHURD will select some local projects for annual national inspection based on the local construction bureaus’ report. The regions and cities with problems will be targeted in particular.
The final allocation of the central subsidy depends on:
The target installed in this policy set for the retrofitting was a floor area of 150 million m2 in order to save 16 million tce primary energy during the 11th 5-year period.
The goal was to realize 50% of heating intensity reduction after the retrofitting compared to buildings built in the 1980s and an additional 20% reduction through the heating supply reform by the end of 2010. Since the baseline heating intensity of the existing buildings used is 25 kgce/m2, this implies savings of 12.5 kgce/m2 after the retrofits as well as savings of 5 kgce/m2 after the heating supply reform. This target can be further broken down to an estimated saving of 2 Mtce/year from retrofits for the 150 million m2 and another 14 Mtce/year from the heat supply reform including the heat pricing reform for the 2.7 billion m2 of urban buildings that have district heating systems (Zhou, et al., 2011).
The retrofitting target for the 12th five-year period is 400 million m2, which will result in an improvement of heating and living condition for about 7 million households. The cumulative target is 1.2 billion m2 by the end of 2020.
Actors responsible for design
Policy 1: MOF
Policy 2, 3, 4: MOHURD
Policy 5: MOHURD, NDRC, MOF and AQSIQ
Policy 6: MOHURD, MOF
Actors responsible for implementation
Local construction bureau, financial bureau, Development and Reform Commission, and bureau of quality supervision, inspection and quarantine; building owner, engineering companies, etc.
From 2006 to the end of heating period in 2009, the cumulative floor areas installing heat meters was 360 million m2, as 5% of the total area of central-heating building in urban North China. The area charged according to actual heat consumption was 150 million m2 (Baoxing 2010).
According to the annual inspection by MOHURD, until the end of 2010, the retrofitted projects of 182 million m2 in 15 provinces and cities in the North China heating area achieved energy savings of two Mtce per year and CO2 emission reduction of 5.2 million tonnes, SO2 emission reduction of 400,000 tonnes, which reached beyond the initial target set in 2007 (150 million m2).
Many residents take a part of the impact in the energy efficiency improvement to improve their thermal comfort—and hence living conditions and possibly their health—instead of saving more energy. The average indoor temperature of the retrofitted projects increased by 3-6℃, and some of them increased by more than 10℃. This is a co-benefit of the thermal retrofit policy.
The following measures have been undertaken to overcome the barriers
In a national-wide circular about existing building retrofitting in North China issued by MOHURD and MOF in 2011, it stated that multiple-sourced financing measures should be developed. With the exception of the government subsidy, energy performance contracting and other social financial investments should be identified further.
The target years are 2010, 2015 and 2020
Concrete figures in energy savings/year
The target for the policy during the 11th five-year period to the end of 2010 can be broken down to an estimated saving of 2 Mtce/year from retrofits for the 150 million m2 and another 14 Mtce/year from the heat supply reform including the heat pricing reform for the 2.7 billion m2 of urban buildings that have district heating systems (Zhou, et al., 2011).
To push the existing building retrofitting in the 12th five-year period, MOHURD and MOF held the ‘working meeting of heating metering and energy-efficient retrofit for existing residential buildings in heating areas in North China’ on June 9, 2011. It has been confirmed that the retrofitting target for the 12th five-year period is 400 million m2, which will result in an improvement of heating and living conditions for about 7 million households. The cumulative target is 1.2 billion m2 by the end of 2020. In addition, in this meeting, MOHURD and MOF allocated subsidy to Beijing, Tianjin, Jilin, Inner Mongolia, and Shandong based on agreed retrofitting targets.
The target years are 2007 and 2011.
Concrete figures in energy savings/year
In 2009, about 69.84 million m2 of building area was retrofitted, realizing primary energy savings of 750,000 tce per year and CO2 reduction of 2 million tonnes. The indoor temperature of the retrofitted projects increased by 3-6℃, and some of them increased by more than 10℃ (MOHURD, 2010).
In 2010, about 86.23 million m2 of existing building area was retrofitted (MOHURD, 2011).
The project has only been implemented from 2008, so the sum of the areas retrofitted from 2008 to 2010 (182 million m2) represents the cumulative number for the entire 11th five-year plan. MOF (2012) states that, from 2007 to date, the finished retrofitting area is 310 million m2, resulting in energy saving of 10 kgce/m2 per heating period.
Achieved additional, yearly energy savings in kWh/year
An energy saving of 10 kgce/m2 per heating period is around 40 % of the pre-retrofit heating energy consumption, which averages 25 kgce/m2 per heating period.
According to the annual inspection by MOHURD, up to the end of 2010, the retrofitted projects of 182 million m2 in 15 provinces and cities in the North China heating area achieved energy savings of two Mtce per year and CO2 emission reduction of 5.2 million tonnes, SO2 emission reductions of 400,000 tonnes, which reached beyond the initial target set in 2007 (150 million m2). Still, this is only around 6 % of the pre-1997 residential building stock in the target area. If the 2020 target of 1.2 billion m2 of retrofitted buildings is met, this will be around 40 % of these older buildings which exist today.
According to the presentation of Minister Qiu of MOHURD in the working meeting in Sep. 28, 2011, by the end of 2010, 80 cities had released policies on quantity-based heat pricing, which have been implemented on 317 million m2 floor area.
If it is energy efficiency service, such as Energy Performance Contracting: how many % of energy savings have been achieved on average of all projects?
The incentive is 55 RMB/m2 for energy-efficient retrofitting in the severe cold zone and 45 RMB/m2 for retrofitting in the cold zone.
This is about 15 to 20 % of the total retrofitting cost, taking the Sino-German ‘China Existing BEE Retrofit’ Co-operation Project as an example. The investment, including repair and energy efficient cost, in this pilot project was 287 Yuan/m2, with contributions by the government, GIZ, heat supply company and the residents being 52%, 25%, 17% and 6% respectively. The energy savings of two buildings in this project were 40.4% and 38.2%.
Approximately 10% of the subsidy (6 RMB/m2) was initially given to the provincial government. The remainder was provided after the assessment of the actual energy-saving at the end of the year.
MOF (2012) states that, from 2007 to date, central government has provided 18 billion RMB for the energy efficiency retrofitting of existing residential buildings in 15 provinces and cities and the Xinjiang Production and Construction Corps.
According to the annual inspection by MOHURD in 2009, the average household heating cost was estimated by MOHURD to decrease more than 10% after implementing quantity-based heat pricing.
As stated above, for the retrofitted buildings, average energy savings are 40 % or 10 kg tce/m2/year.
In both cases, energy cost savings vary between different cities, and no overall average data is available.
Central government has provided 18 billion RMB for energy efficiency retrofitting of existing residential buildings in 15 provinces and cities and the Xinjiang Production and Construction Corps from 2007 to date. The finished retrofitting area is 310 million m2, resulting in energy savings of 10 kgce/m2 per heating period. Thus, the total energy saving of existing building energy efficiency retrofitting in North China is 3.1 billion kgce per heating period. The policy is regarded to be cost-effective.