New Building Regulation Code Reduces Heat Pumps Emission By 25%: IEA Study

International Energy Agency (IEA) report on, “The Evolution of Energy Efficiency Policy to Support Clean Energy Transitions” outlines the changing energy system and shows why traditional energy efficiency policies must evolve, globally, to ensure clean energy transitions.

In response to the evolving energy landscape, the IEA analysis focuses on leveraging existing policy foundations. For instance, established tax credits or grants aimed at promoting residential heat pump adoption can be rapidly expanded using familiar application processes and rules. Similarly, enhancing outdated or suboptimal energy efficiency standards for buildings, appliances, or vehicles, already in place in many countries, represents a readily attainable opportunity for quick wins.

The buildings sector, globally, is experiencing a surge in energy demand primarily driven by the escalating need for space cooling, propelled by factors such as more frequent heatwaves and elevated living standards in emerging markets. This escalating energy demand is accompanied by a parallel surge in electricity consumption due to the increasing electrification of systems, particularly through the widespread use of heat pumps for space and water heating.

Presently, the global installed heat pump capacity for both space and water heating stands at 1,000 GW. In the Net Zero Emissions by 2050 Scenario, this capacity is projected to reach 3,000 GW by 2030, with heat pumps meeting 25% of space heating demand. The scenario envisions that electricity use in buildings will account for 48% in 2030 and rise to 70% in 2050.

The growing role of electricity in buildings is underscored by the fact that it presently constitutes 35% of energy use in buildings and is on a trajectory of significant expansion. This trend is further affected by the increasing demand for space cooling in response to climate-induced heatwaves and improving living standards in emerging economies.

In power systems where demand-side programs or aggregators are operational, the integration of smart sensors, meters, and controls in buildings and appliances facilitates communication with the grid. This two-way communication enhances energy load management through efficient electricity consumption, incorporating behind-the-meter generation, storage, and participation in demand response.

The benefits of smart interfaces extend to both consumers and manufacturers/providers. Smartphone apps, for example, empower consumers to remotely control their heating systems or display graphical representations of heating loads. In the European Union, the Smart Readiness Indicator, embedded within the Energy Performance of Buildings Directive, quantifies the energy flexibility capability of buildings, offering a meaningful metric for stakeholders.

Noteworthy examples of progressive demand response policies include California’s Building Energy Efficiency Standards, requiring the installation of demand response automated systems, and Korea’s Energy Pause program, targeting residential demand response for small consumers and households below 200 kW.

The evolution of demand response policies in the buildings sector is exemplified by the development of the European Union, ‘Energy Performance of Buildings Directive’. With each update, this directive has incorporated advancements, from Energy Performance Certificates to a focus on near-zero-energy buildings, building automation, control systems, EV charging infrastructure, and the latest inclusion of a Smart Readiness Indicator. The anticipated 2024 update foresees the integration of demand response requirements and MEPS for buildings.

Industrial reporting policies can encompass capacity-building measures, such as training and upskilling, in energy and emissions reporting. This not only enhances the reliability of data collection and reporting at the site performance level but also benefits the overall industrial sector in terms of assessment, benchmarking, and competitiveness. Certain policy frameworks, like the EU Energy Efficiency Directive, may mandate information gathering through energy audits or energy management system reporting for enterprises exceeding specific thresholds. While these measures target energy efficiency and savings, reporting itself is not universally mandatory.