Instruments for Successful Energy neutral housing developments Lessons for Eindhoven from the Danish and UK municipalities Master Graduation research In Partial fulfillment of the requirements for the degree of Master of Science in Construction Management & Engineering Student Sahul Reddy Kadarpeta Chairman graduation studio Prof. dr. Ir. Wim Schaefer Supervisors Prof. dr. ir. Bauke de Vries, TU/e Dr. Qi Han, TU/e Presented on 26 August 2010 Energy neutral housing developments ii Energy neutral housing developments EXECUTIVE SUMMARY ABSTRACT Netherlands has set national energy targets for year 2020. In this context at the local level Eindhoven Municipality has set its ambition to go energy neutral in housing sector by 2020 and decided to develop new energy neutral housing areas. Lack of strict regulations and appropriate forms of support aimed at relevant stakeholders involve has attributed to the lack of acceptance for energy neutral housing in the housing market. Further lack of a defined role for municipality to promote stakeholder participation has affected the realization of energy neutral housing developments. Desk research shows that Denmark & UK have introduced effective regulatory & support instruments to promote their energy ambitions in housing sector. Danish municipalities have played a unique role to promote stakeholder participation in energy efficient housing developments. These instruments found from research are prioritized for Eindhoven scenario as per stakeholder preferences using Analytical Hierarchy process. Using scenario analysis a proactive participatory role is found necessary for the Eindhoven municipality to promote stakeholder participation in energy neutral housing development process. Key words: Energy Neutral Housing, Support & Regulation Instruments, Role of Municipalities, Analytical Hierarchy Process, Scenario analysis INTRODUCTION Eindhoven municipality has expressed its vision to go energy neutral in the built environment, specially housing sector, by 2020. Proven technology to realize energy neutral housing developments is available, but however practical realization of energy efficient housing developments has not been achieved yet. The research by Beerepoot, 2007 shows that a broad scale adoption of energy efficiency measures fails to occur in the existing Dutch housing sector, which has resulted to the lack of structural cooperation between different actors in the mainly project‐based building sector. The Dutch policy instruments have failed to instigate the adoption of energy efficiency, renewable energy & carbon reduction measures for energy neutral developments. The research conducted by Hans, Ingmar, 20081 on Groningen’s CO2 neutral ambitions shows that serious investments and/or collaborations of all stakeholders is necessary for such projects to become practically feasible. The energy neutral housing ambition of Eindhoven is being affected due to lack of strict regulations & support instruments, lack of effective collaboration between stakeholders which have resulted in lack of market demand for energy neutral houses. Thus Eindhoven municipality is looking learn from the right examples which have been proven in practice and also from active developments currently taking place. So the main question of the research arises, “What kind of regulatory & support instruments are needed to promote effective participation of stakeholders in energy neutral housing 1 Groningen energy neutral? A scenario study, TU Delft. iii Energy neutral housing developments developments and what role should municipality play to promote collaboration among stakeholders and realize energy neutral housing developments?” METHODOLOGY The following research methodology (figure I) was followed step by step to find the answer for the question. This research mainly consisted of Data collection, Survey and scenario analysis. Data collection Desk research is conducted to collect the data & information on the Danish regulatory & support instruments focussed on improving the energy efficiency of households and promoting renewable energy usage in housing sector. The Danish municipalities have played a proactive participatory role in the planning, implementation and realization phases of the projects. UK on the other hand has employed numerous financial support instruments to promote carbon reduction using microgeneration technology and decentralized energy sources. Hence from the desk research the instruments regulating & supporting energy efficiency measures, carbon reduction measure, usage of renewable energy and financial incentives are found out. Data analysis The data collected is analyzed to relate it to the Eindhoven scenario. Initially a survey is conducted to find the instruments prioritized & preferred by the local stakeholder groups and then a scenario analysis is conducted on Blixembosch Noord Oost development to validate the fact that the role of municipalities found from research can be employed played by municipality for successfully promoting stakeholders in energy neutral housing developments. Figure I: Research overview Survey A survey questionnaire is designed to find the weights of the instruments found from research using pairwise comparison approach of Analytical Hierarchy Process. Pairwise comparisons are used to determine the relative importance of each alternative in terms of each criterion. 25 responses were obtained from the 50 sent to stakeholder groups of Municipality, Project developers, Energy consultants & consumers. The prioritized iv Energy neutral housing developments instruments based on all 25 stakeholder responses are found out along with the preferred instruments of each individual stakeholder groups. Scenario analysis To find the effect of the varying preferences of stakeholder groups and the role played by Eindhoven municipality on a practical energy neutral housing development scenario analysis is conducted. This analysis is used to explain the effect of varying preferences of different stakeholder groups found from the survey and the role adopted by Eindhoven municipality when implemented in reality. Scenarios are reflected on Blixembosch Noord Oost energy neutral housing development using Global scenario analysis. CONCLUSIONS The research shows the most important instruments required (figure II) for promoting stakeholder participation in Eindhoven’s energy neutral housing developments. Instruments need to be implemented to regulate energy efficiency of households and at the same time financial incentives focussed on promoting renewable energy generation in new households are required. Community owned cooperatives are found important for decentralized renewable energy generation. A participatory role is required to be played by Eindhoven municipality in different phases of project to promote effective collaboration between stakeholders and ensure their participation in energy neutral housing developments. Figure II: Role required to be played by Eindhoven Municipality v Energy neutral housing developments DISCUSSION The research considers the preferences of stakeholders as the as the only criteria to evaluate the instruments required for Eindhoven scenario. More studies to evaluate these instruments in terms of legal, financial and technical feasibilities are needed to be carried out. The instruments found from Denmark & UK experiences are adopted for only energy efficient and carbon neutral housing developments. This research presumes that a combination of these instruments will equally promote the energy neutral developments. This can lead to conflicting views, but in my perspective it is valid since the energy efficiency and carbon neutral are integral features of energy neutral housing concept. Therefore the developments in these fields will indirectly influence energy neutral developments. vi Energy neutral housing developments ACKNOWLEDGEMENT The vision and unwavering encouragement shown by my supervisor and mentor, Prof. Dr. ir. Bauke de Vries has been an invaluable contribution to this research study. He has been an excellent critic for my ideas which helped me hone my reasoning skills. I would like to acknowledge my assistant supervisor Dr. Qi Han for her diligence, support and friendly advice throughout this graduation period. I express my limitless gratitude to Prof. dr. Ir. Wim Schaefer for providing this wonderful opportunity to work on a futuristic ambitious graduation theme. A special thanks to all the sponsors of this graduation studio. This study would not have been possible without the support and the creative environment facilitated by TU/e. Words fall short in conveying my thankfulness towards my family for the affectionate moral support they have shown me over the years. Hi fives to all my friends for their suggestions, support and entertainment over these past six months. I owe Google a big one since the background research focussed on Eindhoven would have not been possible with their magic tool, the Google Translator. vii Energy neutral housing developments This thesis is dedicated to my late Grandmother who has inspired me with her hard fought life. viii Energy neutral housing developments CONTENTS 1. RESEARCH FRAMEWORK .................................................................................................. 5 1.1 Introduction ...................................................................................................................... 5 1.2 Research Context ............................................................................................................