Demonstration projects for energy efficiency in new buildings and refurbishment in several countries in the Middle East and North Africa region have shown energy savings between 20% and more than 95% compared to conventional practice. Only about half of the pilot projects are economically viable at current (often subsidised) energy prices, but through learning effects and the adoption of only the most energy efficient measures, cost-effectiveness can be improved for most future projects. Generally, cost-effectiveness is more difficult to attain in countries with subsidised energy prices. The way the buildings have been constructed, the payback time range is between two and 60 years, where the average payback time is around 23 years, but can be reduced significantly as stated above.
Economic growth and increasing populations are two significant factors that drive the energy consumption and prices of Southern Mediterranean countries risking civil unrest. As 60% of the energy consumption by these countries results from the building sector, the European Commission introduced the MED-ENEC programme, which aims to facilitate energy efficiency and renewable energy measures in partner countries (Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Occupied Palestinian Territories, Syria – currently postponed (as of Nov. 2012) – and Tunisia) with demonstration projects for energy efficiency in buildings. The programme was launched in 2006 under the European Neighbourhood Policy, to safeguard stability, security and prosperity in the EU’s neighbouring countries. Programme implementation and overall co-ordination has been commissioned to GIZ, ADEME and ECOFYS. Local actors in each of the partner countries help with the implementation process.
The general idea behind the identification of demonstration buildings is to show the feasibility of environmentally friendly technologies in a given context – finally, leading to large-scale market penetration, at best. Apart from other things, MED-ENEC offers assistance in selecting cost-effective energy saving measures, provides information about funding possibilities, offers technological expertise and awareness raising instruments in order to “promote the success story” of a project (MED-ENEC 2010, p. 3). Moreover, the project website (www.med-enec.com) has been frequently visited (20,000 visitors already during the first project phase), not least because over 200 companies related to energy efficient construction are listed in the MED-ENEC-business (http://www.med-enec.com/database/business) and -finance (http://www.med-enec.com/database/finance) databases. Apart from the website, regional workshops and information exhibitions facilitate network and mutual learning effects.
The first phase of MED-ENEC (2006-2009) identified ten low-energy buildings projects. In terms of energy efficiency, the project was successful and for some of the demonstration buildings very much so, as energy savings between 20% and more than 95% compared to conventional practice were realised. However, various problems remained. The payback time with some projects was too long and transaction costs were relatively high. During the second project phase, with a budget of €5 million, MED-ENEC turned to large building projects. “Large Building Projects or Programmes allow for new market development and business opportunities in the energy efficiency and renewable energy sector”, in particular. Moreover, the consortium of GIZ, ADEME and ECOFYS has the opinion that large building projects and their respective awareness raising campaigns may more easily convince the public that energy savings are beneficial (MED-ENEC 2010, p.3).
Demonstration projects are frequently used throughout the world in order to show feasibility. Rarely programmes are designed, implemented and information shared on a regional, or even inter-continental level. Another multinational example is the demonstration programme on Zero Energy Housing by the Asia-Pacific Partnership on Clean Development and Climate, involving the Partnership’s seven partner countries Australia, Canada, China, Japan, Mexico, South Korea, and the USA (www.zeroenergyhousing.org). More than 200 housing units were built as net zero or plus energy homes in these countries and details can be seen in an onlline map of projects at the link given above.
In Germany, various demonstration projects have been conducted such as the Efficiency Plus House, which is a building type that produces sufficient energy for the building as well as for an electric vehicle (BMVBS 2011). In Australia, “Solar Cities” use combinations of energy efficiency measures and solar technologies mainly to “[d]emonstrate the environmental and economic effects of combining cost reflective pricing with the widespread use of solar technology, energy efficiency and smart meters” (IEA 2012).
Rising population figures and rising electricity prices put high pressure on the partner governments’ energy supply and policies as both factors may affect prosperity and stability in the long run. In spite of this, construction of new buildings is dominated by conventional low-cost concrete and steel practice and taking energy-efficient design and construction into account only to a very small extent. In most of the partner countries, there is also a gap between urban centres, which use a lot of energy inefficiently, and rural areas, in general having restricted access to energy and, thus, having a low consumption.
MED-ENEC is part of the European Neighbourhood Policy, which was launched to safeguard the security and prosperity prospects in Europe’s neighbouring countries.
MED-ENEC promotes the demonstration of energy efficiency and renewable energy in nine southern Mediterranean countries. Large buildings are thus equipped with environmentally friendly technologies. However, apart from demonstrating best practices and feasibility, the project gives multiplying impulses for society/ societies as a whole. In the end, technologies achieve much higher market shares.
The ten demonstration pilot projects were selected through a public competition. Every project received approximately € 100,000 depending on its size and the evaluation result of the competition.
Supra-national
The programme does not foucs on specific technologies or measures but rather uses a whole building strategic approach towards low energy buildings or even ultra low energy buildings (read more on these concepts in our interactive buildings guide).
Energy-efficient design and construction or renovation.
No harmonised general levels of energy efficiency improvement were required; instead projects were encouraged to follow approaches adapted to the national and local situation.
MED-ENEC is part of the European Neighbourhood Policy (ENP), with which the EU has created an energy co-operation with its Mediterranean neighbours and that aims to safeguard prosperity, stability and security in all of its neighbouring countries (including its Eastern neighbours).
In 2003, at the Euro-Med Energy Ministerial Conference, the foundations were laid for a common energy policy. While MED-ENEC is to facilitate the co-operation in the fields of energy efficiency and renewable energy, there are two other projects more specifically aiming at integrating the energy market. The Euro-Med energy market integration programme (MED-EMIP) facilitated the exchange of innovative approaches for energy efficiency, renewable energy and other measures (GIZ 2012a), while the Euro-Med Energy Market Integration Programme (MEDREG) “aims at strengthening co-operation between the EU energy regulators and those of the Mediterranean Partner Countries helping them to develop a modern and efficient regulatory framework” (ENPI 2012).
In addition, there are national policies for energy efficiency in buildings in the partner countries, which will interact with the demonstration project.
The MED-ENEC programme included the international co-operation as an innovative feature.
While it holds true for every country-specific demonstration project/ measure that best practices are to be identified and, later on, copied, the EU pursues a regional approach towards its southern neighbours. First of all, the nine partner countries can benefit from different European expertise and, eventually more importantly, from mutual learning effects from regional workshops or information exhibitions, where stakeholders can also get into contact with each other.
Moreover, the website, which is considered to be quite a success by the GIZ, improves co-operation possibilities between companies that are active in the energy efficient construction sector.
While the policy environment may differ between the partner countries, they are subject to similar climatic conditions, so that innovative approaches can be easily adopted from a technical perspective.
For example, in Jordan the pilot project Aqaba Residence Energy Efficiency (AREE) was supposed to “show energy efficient design and construction in dry hot climate, where summer temperatures rise above 40°C and to inspire adoption of best practices in residential buildings for the future” (MED-ENEC 2012b). The AREE is a residential building with 420m2 floor space. The incremental investment cost compared to a standard building of the same size in Jordan is about €41,000 and will be paid off in 12 years. Payback time can be reduced further considering the learning effect and larger building programmes.
The focus in AREE (Aqaba Residence Energy Efficiency) lies on decreasing energy consumption for cooling. Cost efficient basic measures are; the orientation of the building, evaporation cooling, compact thermal mass insulation for roofs and walls and energy efficient lighting and appliances, for example. The project’s cost compared to a baseline building in Jordan totalled €148,000 compared to €107,000 making the additional investment of €41,000 necessary. The total primary energy consumption of the building in the pilot project was reduced to 52 kWh/m2/yr compared to 342 kWh/m2/yr in the baseline building (see figure). Taking energy prices into consideration, the additional sum invested will be paid off after twelve years only. “It can, however, be reduced to just 4 years, if only the most cost efficient technologies are applied and through learning and scale effects in the framework of large public or private building programs” (MED-ENEC 2012b).
By contrast, in Algeria, the intention of the project was the construction of an 80 m2 rural house saving more than 50 % of energy compared to conventional practice, which would be easily possible to reconstruct in line with Algeria’s housing programme. Due to the highly subsidised energy prices and the 40% higher investment cost, this first demonstration project is not economically viable.
Agencies or other actors responsible for implementation
The European Commission launched and funded the project. However, the actual implementation of MED-ENEC is commissioned to the German Agency for International Co-operation (GIZ), to the French Environment and Energy Management Agency (ADEME) and the consultancy company ECOFYS, which works in the fields of energy, energy efficiency and climate change.
In each partner country, local partners have been selected:
Algeria: Centre National d''études et Recherches Intégrées du Bâtiment (CNERIB); Centre de Développement des Energies Renouvelables (CDER)
Egypt: Egyptian Solar Energy Society (ESES); Egyptian Energy and Environmental Society (EEES); Egyptian Environmental Affairs Agency (EEAA)
Israel: Towns Association for Environmental Quality (TAEQ)
Jordan: Centre for the Study of the Built Environment (CSBE)
Lebanon: ALMEE; Centre Hospitalier du Nord
Morocco: Ecole Nationale d''Architecture (ENA)
Palestine: Palestinian Energy Authority; Union Construction and Investment (UCI); Mena Geothermal
Syria: General Company for Engineering Studies and Consulting (GCEC); General Institute for Housing (GIH); National Energy Research Centre (NERC)
Tunisia: Faiez Rouissi, partner, architect and project developer; Centre International des Technologies de l'Environnement de Tunis (CITET); Solar Energy Systems (SES)
Turkey: R&R Bilimsel ve Teknik Hizmetler Ltd. Sti; BETEK
Funding
The European Commission funded the project with €5 million from 2009 to 2012.
Other pre-conditions
The results of the first phase of MED-ENEC were quite satisfying in several countries but less so in others, mainly because of relatively high transaction costs for the single projects. Thus, due to these lessons learnt, the second phase addresses large building projects (MED-ENEC 2012).
The ten pilot projects, selected through a public competition, of the MED-ENEC Project “were established to demonstrate best practices and new technologies as well as integrative approaches for the use of energy and the use of renewable energies in the building sector in the MEDA countries” (MED-ENEC 2013). Every project received approximately €100,000 depending on its size and the evaluation result of the competition. Implementation started during 2009 in all countries and construction process is now completed in Algeria, Egypt, Israel, Jordan, Lebanon, Palestine and Turkey. Morocco, Syria and Tunisia are in the final stages of construction.
Quantified target
MED-ENEC did not have a quantified target in terms of overall energy savings or similar.
International co-operations
The programme is actually designed to foster co-operation in order to exchange ideas and innovative approaches between various countries in North Africa and the EU.
Actors responsible for design
The European Commission is responsible for the design of MED-ENEC.
Actors responsible for implementation
MED-ENEC is implemented by the GIZ, ADEME and ECOFYS from the EU’s side. Local actors from the respective country help with the implementation process.
Monitoring
The project monitored the energy consumption by end use, construction costs, and life-cycle costs for both the (hypothetical) conventional new building and the energy-efficient one, respectively for the existing building before and after renovation.
Evaluation
Energy savings and payback times were calculated for each building during the planning phase and after realisation.
Please see figure below for the individual data of the ten buildings.
Name of the project | Purpose/type of buildings | Size in m2 | Investment in energy efficient and conventional building | Energy savings in % compared to conventional building | Payback time | Energy prize (€ cents (kWh) | ||||
Rural Low energy house in Algeriers (Algeria) | Residential building | 80 m2 | 39,500 € conventianl building - 57,417 € energy efficient building | Over 50% | Over 60 years | NA | ||||
South Sinal Governorate Project (Egypt) | Administrative building / Student accommodation | 567 m2 | 10,000€ conventional building – 95, 532 for energy efficient building | 50% | 30 years | NA | ||||
The TAEQ Green Training and Community Center (Israel) | Public building | 1,482 m2 (shall be expanded to 2,101 m2) | 618,476€ conventional building – 866,500€ energy efficient building | 80% | 10 years | NA | ||||
Aqaba Residence Energy Efficiency (AREE) (Jordan) | Residential building | 420 m2 | 107,100 € conventional building - 147,739€ energy efficient building | Over 80% | 12 years | NA | ||||
Renovation of the Centre Hospitalier du Nord (Lebanon) | Hospital | 6,000 | Investment of 54,800€ brings yearly energy savings of 39,840€ | 80% | 1-2 years | NA | ||||
Rabat Casablanca – National School of Architects (Morocco) | Residential Building | 180 m2 | 70,000 conventional building – 87,325 energy efficient building | 75% | less than 10 years | NA | ||||
Three story residentail villa RAmallah / Al Bireh, West Bank (Palestine) | Residential Building | 340 m2 | 231,422 conventional building – 272,409 energy efficient building | 25% | not feasible, with only most efficient measures 6 years | NA | ||||
Five story apartment block, New Youth Residential Complex (Syria) | Residential Building | 480 m2 | 553,183 € conventional building – 746,250 € energy efficient building | 60% | Not feasible, only with most efficient measures 10 years | NA | ||||
The Green Hill Resort (Tunisia) | Hotel | 148 m2 | 48,725€ for conventional building – 156,130€ for energy efficient building | 95% | not feasible | NA | ||||
RMI Turkey Scientific Research and Training Centre | Office and Laboratory building | 1763 m2 | 852,400 €conventional building – 1063,200 € energy efficient building | 30% | 12 years | NA |
Design for sustainability aspects
MED-ENEC focused on energy efficiency and did not specifically promote other aspects. Although, through energy savings, buildings save 600 tonnes of CO2 annually (GIZ 2012b).
Co-benefits
MED-ENEC may have a positive effect on the labour market.
The following barriers have been experienced during the implementation of the policy
Energy subsidies make market penetration of energy-efficient building technologies less attractive. Such subsidies should gradually be phased out.
The following measures have been undertaken to overcome the barriers
Relatively small projects in each country resulted in high transaction costs. “To overcome the economic barriers, the second phase of MED-ENEC addresses Large Building Projects. New urban developments provide a wide range of opportunities for improving EE, from zoning, to urban planning, architectural design, construction and to installation technologies. Many steps can be taken to reduce the energy consumption cost and CO2 emissions. The economies of scale provide cost benefit advantages and allow for new business development in the energy efficiency and renewable energy sectors” (MED-ENEC 2012).
Evaluation year: Project Phase 1: 2006-2009
Achieved energy savings in pilot projects as compared to conventional building baseline in respective countries:
Algeria: 201 KWh/m2/yr
Egypt: 361 KWh/m2/yr
Israel: 347 KWh/m2/yr
Jordan: 290 KWh/m2/yr
Lebanon: 328 KWh/m2/yr
Morocco: 201 KWh/m2/yr
Palestine: 36 KWh/m2/yr
Syria: 158 KWh/m2/yr
Tunisia: 246 KWh/m2/yr
Turkey: 170 KWh/m2/yr
Achieved energy savings in pilot projects as compared to conventional building baseline in respective countries:
Algeria: 201 KWh/m2/yr
Egypt: 361 KWh/m2/yr
Israel: 347 KWh/m2/yr
Jordan: 290 KWh/m2/yr
Lebanon: 328 KWh/m2/yr
Morocco: 201 KWh/m2/yr
Palestine: 36 KWh/m2/yr
Syria: 158 KWh/m2/yr
Tunisia: 246 KWh/m2/yr
Turkey: 170 KWh/m2/yr
Please see figure below for more detail.
Project Phase 1: 2006-2009
Energy use of the pilot project building and energy savings in percent as compared to conventional building baseline of the respective country:
Algeria: the building needs 159 KWh/m2/yr, using 56% less energy as compared to conventional buildings
Egypt: the building needs 408 KWh/m2/yr, using 47% less energy as compared to conventional buildings
Israel: the building needs 63 KWh/m2/yr, using 80% less energy as compared to conventional buildings
Jordan: the building needs 52 KWh/m2/yr, using 84% less energy as compared to conventional buildings
Lebanon: the building needs 1,425 KWh/m2/yr, using 20% less energy as compared to conventional buildings
Morocco: the building needs 71 KWh/m2/yr, using 74% less energy as compared to conventional buildings
Palestine: the building needs 135 KWh/m2/yr, using 25% less energy as compared to conventional buildings
Syria: the building needs 95 KWh/m2/yr, using 63% less energy as compared to conventional buildings
Tunisia: the building needs 6 KWh/m2/yr, using 95% less energy as compared to conventional buildings
Turkey: the building needs 228 KWh/m2/yr, using 34% less energy as compared to conventional buildings
The actual costs range from €57,417 to €1,063,200. Additional costs compared to conventional building baseline range from approx. €17,000 up to nearly €250,000. The share of additional investments can be between one fifth of conventional building baselines or nine times as high.
Algeria:The calculated payback time for the ten demonstration projects in the first phase ranged from 2 to 90 years (cf. Annex). For half of the projects, payback times were up to 12 years, while for the other half they were higher.
Data on achieved energy cost savings is only available for one pilot project.
Algeria: -
Egypt: -
Israel: -
Jordan: -
Lebanon: €39,840
Morocco: -
Palestine: -
Syria: -
Tunisia: -
Turkey: -
The calculated payback time for the ten demonstration projects in the first phase ranged from 2 to 90 years (see figure below). For half of the projects, they were cost-effective with payback times up to 12 years, while the other half was not.
Being aware of high transaction cost during the first project phase, the EC concluded to emphasise during the second phase larger building projects.
Name of the project | Purpose/type of building | Size in m2 | Investment in energy efficient and conventional building | Energy savings in % compared to conventional building | Payback time | Energy prize (€-cents(kWh) |
Rural Low energy house in Algiers (Algeria) | Residential building | 80 m2 | 39,500 € conventional building – 57, 417€ energy efficient building | Over 50% | Over 60 years | NA |
South Sinal Governorate Project (Egypt) | Administrative building/ Student accommodation | 567 m2 | 10,000€ conventional building – 95, 532 for energy efficient building | 50% | 30 years | NA |
The TAEQ Green Training and Community Center (Israel) | Public building | 1,482 m2 (shall be expanded to 2,101 m2) | 618,476€ conventional building – 866,500€ energy efficient building | 80% | 10 years | NA |
Aqaba Residence Energy Efficiency (AREE) (Jordan) | Residential building | 420 m2 | 107,100 € conventional building - 147,739€ energy efficient building | Over 80% | 12 years | NA |
Renovation of the Centre Hospitalier du Nord (Lebanon) | Hospital | 6,000 | Investment of 54,800€ brings yearly energy savings of 39,840€ | 20% | 1-2 years | NA |
Rabat Casablanca – National School of Architects (Morocco) | Residential building | 180 m2 | 70,000 conventional building – 87,325 energy efficient building | 75% | less than 10 years | NA |
Three story residential villa Ramallah / Al Bireh, West Bank (Palestine) | Residential building | 340 m2 | 231,422 conventional building – 272,409 energy efficient building | 25% | Not feasible, with only most efficient measures 6 years | NA |
Five story apartment block, New Youth Residential Complex (Syria) | Residential building | 480 m2 | 553,183 € conventional building – 746,250 € energy efficient building | 60% | Not feasible, only with most efficient measures 10 years | NA |
The Green Hill Resort (Tunisia) | Hotel | 148 m2 | 48,725€ for conventional building – 156,130€ for energy efficient building | 95% | Not feasible | NA |
RMI Turkey Scientific Research and Training Centre | Office and Laboratory building | 1763 m2 | 852,400 €conventional building – 1063,200 € energy efficient building | 30% | 12 years | NA |
Source: MED-ENEC (2013)
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