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Among other critical actions, putting the Energy Efficiency First (EE1st) principle into practice requires quantitative evidence on the extent to which demand-side resources (e.g. building retrofits) in various contexts are generally preferable over supply-side resources (e.g. networks). These contexts range from municipal heat planning, over electricity network investment, up to the development of high-level policy strategies for Member States and the European Union (EU) at large. In previous quantitative work, the ENEFIRST project demonstrated for the EU building sector that end-use energy efficiency measures can effectively reduce the need for energy supply infrastructures in transitioning to net-zero emission levels, while also bringing a variety of co-benefits or multiple impacts. The present report provides additional quantitative evidence on EE1st by investigating five model-based case studies. The scope of these case studies is deliberately narrower compared with the EU-wide analysis, providing opportunity for a detailed evaluation of demand- and supply-side resource options in different contexts of building types (residential, non-residential), infrastructures (electricity, district heating, gas) and local conditions (weather, costs, etc.). The key findings of the five case studies are as follows: ❶ Cumulated energy savings based on cost-optimal analysis | If carried out within the next 10 years, single stage building renovations come with a lower cost than stepwise renovations. In both cases, exhausting the potential of deep renovation by achieving the highest energy saving is critical. The results support the instrument of renovation passports for building owners to enable informed renovation decisions. ❷ Building retrofits and district heating systems | District heating networks can be economically viable in scenarios with high refurbishment rates under different climate conditions and city typologies. The network’s ability to combine multiple heat sources balances the impact of high fuel prices. Municipal heat planning can help lower total cost of heat and reduce the risk of energy poverty. ❸ Heat pumps: Efficiency, CO₂ emissions and the value of flexible heat pumps | By using buildings’ thermal mass, residential heat pumps can provide additional flexibility to the power system. Depending on the building type, envelope, and location, the flexibility potential is between 18%-35% of the heat pump energy consumption. The economic profitability strongly depends on the regulation, fees, taxes, etc. ❹ Strategic energy planning in commercial areas | Thermal retrofits for office and education buildings can cost-effectively reduce the need for individual heat supply, distributed generation, heat networks, utility-scale generation, and seasonal heat storage. Advanced retrofit packages can possibly pay off within 13 to 14 years, making building retrofits a critical demand-side resource in the scope of the EE1st principle. ❺ The trade-off between energy efficient household appliances and new electricity generation | Efficient household appliances (e.g. refrigerators) can reasonably substitute for new renewable, fossil and hydrogen-based electricity generation. Cost-effective savings are in the range of 3.8%-19.4%, compared to an inefficient base case. Ecodesign standards and labelling are key instruments to achieve these savings. In conclusion, integrated energy systems modelling is key to make the EE1st principle a reality. Practitioners can use model-based evidence to help formulate strategies and to put together a sound package of policy instruments for EE1st. At the same time, there remain critical challenges to quantitative modelling in the scope of EE1st – including the proper consideration and aggregation of multiple impacts, the selection of discount rates, and others. |
