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Australian Residential Building Sector Greenhouse Gas Emissions 1990-2010

executive summary

report

1999

The Australian Greenhouse Office is the lead Commonwealth agency on greenhouse matters

Australian Residential Building Sector Greenhouse Gas Emissions 1990-2010

executive summary

report

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ISBN 1876536 136 © Commonwealth of Australia 1999 This work is copyright. Permission is given for fair dealing with this material as permitted under copyright legislation, including for the purposes of private study and research. Apart from those uses, no part may be reproduced without prior written permission from the Commonwealth. Requests and inquiries concerning reproduction rights should be directed to the: Manager, Communications Australian Greenhouse Office GPO Box 621 Canberra ACT 2601 This study is available online at the Australian Greenhouse Office website at www.greenhouse.gov.au/energyefficiency/building Design Wingrove Wingrove Design Photos Courtesy of the Housing Industry Association

A u s t r a l i a n R e s i d e n t i a l B u i l d i n g S e c t o r G re e n h o u s e G a s E m i s s i o n s 1 9 9 0 - 2 0 1 0 E x e c u t i v e S u m m a r y R e p o r t 1 9 9 9

FOREWORD Though the full effects of emissions of greenhouse gases on the Earth’s atmosphere are not yet completely understood, the scientific evidence points to a discernible human influence on global climate change. The residential building sector has recognised the need to address greenhouse concerns, and not just from the perspective of climate change, but also to improve the

The Australian Greenhouse Office is pleased to present this study as a valuable sectoral contribution to the broader greenhouse debate.

F O R E WA R D

comfort of the built environment for all Australians.

Importantly, it provides the most up to date and comprehensive baseline data of greenhouse gas emissions for the residential building sector. I hope that members of the building industry will find this study stimulates not only further discussion on the greenhouse problem, but supports the development of initiatives designed to address these concerns. iii Without doubt the building industry has the challenge of becoming more environmentally sensitive while remaining economically efficient. It is a difficult challenge, for the issues are diverse and complex. I would like to commend the authors of the study, Energy Efficient Strategies, as well as acknowledge the contribution of the Steering Committee representing industry and government organisations.

Gwen Andrews Chief Executive Australian Greenhouse Office April 1999

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Acknowledgements The study was produced for the Australian Greenhouse Office by Lloyd Harrington and Robert Foster of Energy Efficient Strategies with assistance from Energy Partners George Wilkenfeld & Associates and additional contributions from Graham Treloar, Deakin University Mark Ellis & Associates

A u s t r a l i a n R e s i d e n t i a l B u i l d i n g S e c t o r G re e n h o u s e G a s E m i s s i o n s 1 9 9 0 - 2 0 1 0 E x e c u t i v e S u m m a r y R e p o r t 1 9 9 9

Australian Residential Building Sector Greenhouse Gas Emissions 1990-2010

1

Study Objectives

3

Major Issues

4

Energy forms and end uses

4

Operational versus embodied energy

5

Projection issues

5

Short term versus long term results

6

Voluntary versus mandatory solutions

6

Project Scenarios

8

Key Project Findings

10

Greenhouse gas emissions in 1990

10

Business as usual projections to 2010

10

Quantitative assessment of an equitable committment for the building sector

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Quantification of the emission gap

11

Project Conclusions

13

Thermal comfort levels

13

Existing housing stock

13

Longevity of building shells

13

Land subdivision

13

Building shell - Performance measures versus prescriptive measures

13

Embodied energy

14

Appliance issues

14

Recommended Further Research

15

CONTENTS

CONTENTS

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A u s t r a l i a n R e s i d e n t i a l B u i l d i n g S e c t o r G re e n h o u s e G a s E m i s s i o n s 1 9 9 0 - 2 0 1 0 E x e c u t i v e S u m m a r y R e p o r t 1 9 9 9

AUSTRALIAN RESIDENTIAL BUILDING SECTOR GREENHOUSE GAS EMISSIONS 1990-2010

protect Australian jobs and industry. As a result, the Government is seeking “realistic, cost-effective reductions in key sectors where emissions are high or growing

ABOUT THE REPORT

strongly, while also fairly spreading the burden of action This study estimates energy consumption and greenhouse

across the economy”. The Prime Minister also noted

gas emissions in the residential sector over the period

that “[The Government is] prepared to ask industry to do

1990 to 2010, with the primary aim of providing a basis

more than they may otherwise be prepared to do, that is,

for the determination of an equitable contribution by the

to go beyond a ‘no regrets’, minimum cost approach

building sector to greenhouse gas emission reductions.

where this is sensible in order to achieve effective and

The study looks closely at all end uses (including electrical

meaningful outcomes”.

appliances and equipment, water heating and cooking) but there is particular attention given to space heating and cooling in residential buildings: the interaction of the thermal performance of the building shell, heating and cooling regimes and the type, fuel mix and energy efficiency of space heating and cooling equipment.

Subsequent negotiations resulted in an international agreement to the Kyoto Protocol to the Framework Convention on Climate Change, under which Australia will have an obligation, inter alia, to reduce its greenhouse gas emissions to 108 per cent of the 1990 level by 20082012. This compares with a business-as-usual scenario

Space heating and cooling accounted for 39 per cent of

prior to the Prime Minister’s Statement of 28 per cent

total residential operational energy consumption in 1998.

emissions growth for the economy as a whole, and around

The three main energy sources used in the residential

40 per cent for energy-related emissions, based on

sector are electricity, natural gas and wood. While only a

projections available at that time.

small part of residential electricity consumption is used for space heating and cooling, the vast majority of natural 1

gas and wood consumption in Australia is used for space heating. Because such a large share of the energy is from the less greenhouse gas-intensive energy sources, space heating and cooling account for a lower share of greenhouse gas emissions than of energy use. Even so, heating and cooling account for nearly 15 per cent of residential sector greenhouse gas emissions. Building shell thermal performance has a large impact on the heating and cooling requirements for residential buildings, so improvements in thermal performance are likely to lead to reductions in greenhouse gas emissions. In his statement of 20 November 1997, “Safeguarding the Future: Australia’s Response to Climate Change”, the Prime Minister announced a package of measures to reduce Australia’s greenhouse gas emissions. He noted that this package of measures was designed both to ensure that Australia plays its part in the global effort required to reduce greenhouse gas emissions and to

For the building sector, the Prime Minister’s Statement specified: “The Commonwealth will work with the States, Territories and key industry stakeholders to develop voluntary minimum energy performance standards for new and substantially refurbished commercial buildings on the basis of energy efficiency benchmarks. If after 12 months, the Government assesses that the voluntary approach is not achieving acceptable progress towards higher standards of energy efficiency for housing and commercial buildings, we will work with the States and industry to implement mandatory standards through amendment of the Building Code of Australia.”

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This project has been commissioned by the Australian

It is estimated that water heaters were responsible for

Greenhouse Office (in consultation with the building

28 per cent of residential greenhouse gas emissions in

industry) to determine baseline greenhouse gas emissions

1998. This study has found that 52 per cent of greenhouse

attributable to the residential building sector of the

gas emissions attributable to the residential sector come

economy and to provide a firm, quantitative basis for the

about as a result of electrical appliances selected by

subsequent development of specific greenhouse response

residents or persons outside the building sector, and

measures by industry and government.

therefore cannot be directly affected by changes made

greenhouse gas emissions result from cooking.

greenhouse gas emissions attributable to the residential sector in 1998 come about as a result of householders’

By quantifying the impacts of a range of building

need to heat and cool dwellings. The amount of energy

sector influenced possibilities, this study provides a

used for this purpose over the life of a dwelling depends

basis for establishing the contribution that the residential

largely on its design and materials, and other factors

building industry can make to the national objective of

determined at the time of construction. Therefore the

reducing greenhouse gas emissions, in line with

housing industry has a key role to play in influencing

Australia’s obligations.

ABOUT THE REPORT

within the building industry. The remaining 5 per cent of This study has found that about 15 per cent of the

future demand for residential sector heating and cooling, and on the related greenhouse gas emissions. Its influence also extends to other fixed systems and appliances installed at the time of construction, most notably water heating, and to a lesser extent some fixed space heating appliances and cooking appliances, as well as the fuel choice for these end uses. 2

A u s t r a l i a n R e s i d e n t i a l B u i l d i n g S e c t o r G re e n h o u s e G a s E m i s s i o n s 1 9 9 0 - 2 0 1 0 E x e c u t i v e S u m m a r y R e p o r t 1 9 9 9

STUDY OBJECTIVES

The business-as-usual projections with measures implemented or announced to date (BAU+) includes

The study objectives are as follows:

those program measures that have been introduced during the period 1990 to November 1997 (the date of

1. Quantify energy related greenhouse gas emissions

the Prime Minister’s statement). This scenario reflects

attributable to the residential buildings sector in 1990;

the actual market situation during the period from 1990

STUDY OBJECTIVES

to 1998 and is used as the primary basis for future 2. Estimate business-as-usual emission growth

projections. The business-as-usual projections without

projections from 1990 - 2010, with and without

measures implemented or announced to date (BAU-) is a

emissions-reduction measures implemented or

hypothetical case which is used to assess the energy

announced to date, taking into account changes in

and greenhouse impact of those program measures

consumer behaviour;

introduced during the period 1990 to November 1997 (program impact = BAU+ less BAU-).

3. Provide a quantitative assessment of an equitable greenhouse emission reduction commitment for the

Energy labelling of appliances commenced in Australia in

building sector, taking into account baseline and

1986. As this program was in place well before 1990, it

projected emissions growth to 2010 and the Kyoto

is included in both the business-as-usual with and without

Protocol commitment for Australia as a whole; and,

scenarios. It is now very difficult to disentangle the impact of energy labelling for appliances from the current trends

4. Quantify any “gap” between the proposed emissions

in energy consumption.

reduction commitment to 2010 for the building sector

3

and the projected emissions growth with measures

This study takes into account changes in user

implemented or announced to date.

behaviour where this affects energy consumption. However, evaluations of historical programs suggests

This study covers Class 1 and Class 2 buildings as defined by the Building Code of Australia - this primarily includes private residential dwellings which are separate (eg stand alone houses) and attached (eg flats, town houses, terrace houses). Residential parts of commercial establishments

that government programs which provide information with the sole objective of influencing daily energy-using behaviour, as distinct from influencing product or dwelling choice, have not had (and are unlikely to have) any significant long term impact on energy use.

are not included. The Prime Minister’s statement of November 1997 The quantification of baselines and the projection of emissions follows, as closely as possible, the relevant Australian Methodologies for the Estimation of Greenhouse Gas Emissions and Sinks, as published by the National Greenhouse Gas Inventory Committee.

included a requirement for electricity suppliers to increase their generation from renewable sources by an average of 2 per cent by 2010. The projected impact of this program has been factored into the greenhouse gas intensity projections for each state. As this program affects all sectors which use electricity (ie is not specific to the residential sector or building shells), it is assumed to form part of all scenarios developed for this study.

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Figure 2: Residential Energy Share by End Use 1998

MAJOR ISSUES Energy forms and end uses Electricity is the major energy source for residential buildings, accounting for about 48 per cent of all energy in 1998. Natural gas is the next biggest fuel, accounting for about 35 per cent of energy while wood accounts for about 14 per cent. In terms of greenhouse gas

1% SPACE COOLING 4% COOKING 27% WATER HEATING 30% ELECTRICAL APPLIANCES & EQUIPMENT 38% SPACE HEATING

emissions from residential, electricity dominates accounting

Figure 1: Residential Energy Share by Fuel 1998 Figure 3: Residential Greenhouse Gas Emission Share by End Use 1998

3% LPG 14% WOOD 35% NATURAL GAS 48% ELECTRICITY

MAJOR ISSUES

for 84 per cent of emissions.

2% SPACE COOLING 5% COOKING 12% SPACE HEATING 28% WATER HEATING 53% ELECTRICAL APPLIANCES & EQUIPMENT

Electrical appliances, cooking and water heating account

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for 61 per cent of residential energy consumption and 85 per cent of residential greenhouse gas emissions. Space heating and cooling account for the balance: about

Figure 4: Residential Heating & Cooling Energy by Fuel 1998

39 per cent of energy consumption and 15 per cent of greenhouse gas emissions. (These estimates cover the use of electricity, natural gas, LPG and wood, but not the minor fuels such as oil and briquettes, which, while small in magnitude, are mostly associated with space heating). In energy terms, space heating is the single largest end use in the residential sector, but the third largest with

3% ELECTRICITY COOLING 3% ELECTRICITY HEATING 3% LPG 35% WOOD 56% NATURAL GAS

respect to greenhouse gas emissions, behind appliances and water heating. The energy consumption required for heating and cooling in residential buildings is a function of both climate and the design and thermal performance of the building shell. It is also heavily influenced by user behaviour (occupancy

Figure 5: Residential Heating & Cooling Greenhouse Emissions by Fuel 1998

levels, proportion of the building that is heated or cooled) and the efficiency of heating and cooling appliances, so quantifying the impact of building shell performance contains significant uncertainties. The energy consumption of electrical appliances, cooking and water heating is largely unaffected by the design and thermal performance of the building shell. Climate has some secondary impact on the operation of refrigerators, freezers and hot water systems and this effect has been incorporated into the end use estimates as far as is

4% LPG 10% WOOD 15% ELECTRICITY COOLING 15% ELECTRICITY HEATING 56% NATURAL GAS

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possible. Climate also has other secondary effects such as

Projection issues

the temperature selected for clothes washing (eg warmer states tend to select cold washing more frequently as the

Energy consumption is projected over the period 1990 to

cold water supply is warmer) and the frequency of clothes

2010. The analysis was carried out in late 1998, almost

dryer use - these impacts have also been incorporated

half way through the projection period, and outputs have

into the model where data is available.

been calibrated to actual energy consumption data at state level (as collected by ABARE) since 1987, so there is a reasonable level of confidence in the projections.

MAJOR ISSUES

Operational versus embodied energy This study concentrates on the “operational” energy used

However, there will inevitably be some uncertainties

to provide a range of energy services such as hot water,

regarding projections, including:

heating and electrical appliance services. There is also a large amount of embodied energy consumed directly or indirectly to manufacture and supply materials and goods used in the construction of a dwelling.



population and household forecasts



future penetration and ownership of appliances



future characteristics of new appliances sold (size, energy efficiency)

Embodied energy can be equal to as much as 20 years of operational energy for a typical new house. Most of



this energy is effectively consumed at or before the time

future characteristics of new dwellings (size, insulation and efficiency)

of construction, and most of this is accounted within



the industrial and construction sectors of the economy.

changing patterns of user behaviour (frequency and duration of use for appliances in general but particularly

In addition, over a typical building life of up to 100 years,

with respect to space heating & cooling)

a further 20 years of operational energy can be embodied through refurbishments and renovations. Hence embodied

It is also necessary to use average values for variables,

energy can be of the order of 40 per cent of the total

where in reality there will be a frequency distribution around

operational energy consumed over a 100 year period.

the average values for all households. Therefore the values

A detailed quantification of embodied energy is not within

reported in this study will not necessarily be representative

the scope of this study, but the issues related to embodied

of any particular household. Historical shares of end use

energy are explored in some detail and some examples

energy and greenhouse gas emissions by fuel type are

of the interaction between embodied and operational

shown in Figure 6 to Figure 9.

energy for a range of construction materials and approaches are included.

Figure 6: Residential Energy Consumption by Fuel 1986 to 1998

Figure 7: Residential Greenhouse Emissions by Fuel 1986 to 1998 50

160 Electricity

Electricity

45

140

40

100

Greenhouse Gas Emissions MT CO2-e

120

Natural Gas

80 60 Wood

40

35 30 25 20 15 10

20

Natural Gas

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LPG

Wood

LPG

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Energy PJ

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The stock of residential buildings in Australia is generally

Short term versus long term results

have both wall and ceiling insulation and a further 42 per

impact that the building sector could have on energy

cent have only ceiling insulation. In addition, many of the

and greenhouse emissions by 2010. The study shows

houses with only ceiling insulation appear to have this

that greatly improving the thermal performance of new

installed after construction is complete (ie by occupants

residential buildings from 2000 onward can go a significant

rather than builders). Some 38 per cent of dwellings have

way towards meeting greenhouse gas emission reduction

neither wall or ceiling insulation. One area considered in

targets for this sector in the Kyoto commitment period

this study is the retrofit of ceiling insulation into existing

(2008-2012) if space heating and cooling energy were

buildings without ceiling insulation. This could have a

considered separately.

substantial impact on the thermal performance of the existing building stock by 2010 and could help contribute

However, residential buildings, unlike appliances and

to emission reduction targets. Retrofit of wall insulation is

equipment, potentially have a very long life - of the order

generally considered unfeasible, although there are some

of 50 to 100 years, so any measures implemented will continue to have an impact on energy and greenhouse gas emissions for decades to come. This study only quantifies

specialist companies now operating that can retrofit wall

MAJOR ISSUES

poorly insulated. Only 20 per cent of all residential buildings One focus for this study is to estimate the potential

insulation for selected construction types.

these benefits to 2010. A related issue is that the rate of household formation (and hence new construction of

Voluntary versus mandatory solutions

residential buildings) is of the order of 2 per cent per annum (the net demolition rate appears to be very small -

Programs aimed at increasing the thermal performance of

well below 0.5 per cent). So over the projection period

residential buildings could be either voluntary or mandatory

from 2000 to 2010, where program measures for new

in nature, or a mixture of the two. Voluntary measures can

residential buildings are assumed to come into force, only about 20 per cent of the total housing stock can be

high level of consumer interest and involvement.

affected (ie 80 per cent will be outside the scope of any program targeted at new buildings). While this limits the

The relatively large number of parties involved in the

potential contribution by 2010 of programs established

building industry suggests that widespread compliance

before that date (even if they start almost immediately),

with voluntary programs, especially where these may

such programs will have an expanding impact to 2050

involve a significant cost premium during construction,

and beyond.

may be difficult to achieve. The market reality is that there

Figure 8: Residential Energy Consumption by End Use 1986 to 1998

Figure 9: Residential Greenhouse Emissions by End Use 1986 to 1998

140

30

120

80 Water Heating 60 40

Greenhouse Gas Emissions MT CO2-e

Electrical Appliances & Equipment

100

20

Electrical Appliances & Equipment

25

Space Heating & Cooling

20 Water Heating 15

10 Space Heating 5

Cooking

Cooking

0

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Energy PJ

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work well where there is strong industry cohesion and a

MAJOR ISSUES

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is generally little direct incentive for the building industry

mandatory in any state. While there is strong pressure on

to increase the thermal performance of new buildings.

developers to maximise revenue by fitting as many blocks

The purchasers of buildings rarely specify measures that

into a given area as possible with no regard to orientation,

directly impact on the energy efficiency of the building

things are unlikely to change in this respect. (Indeed,

(such as orientation, glazing, insulation levels) and there is

there are transport energy advantages to higher densities,

intense competition within the industry to minimise costs.

although different building forms may be more appropriate

Builders do not pay the ongoing energy bills, so unless

than detached dwellings: however, transport related

the ultimate occupant commissions the design, is involved

impacts are beyond the scope of this study). Local

prior to construction and/or is aware of building shell

government could play a strong role by mandating energy

energy efficiency issues, there is no direct market incentive

efficiency requirements for subdivisions (especially with

to improve thermal performance. Given the relatively poor

respect to orientation of buildings), although this is likely to

average thermal performance of typical new dwellings in

be more effective if implemented at state or national level.

Australia, it would appear that occupants exert little influence over these aspects. There would be some

Traditionally, where there are requirements regarding the

indirect market pressure if energy-efficient dwellings

building shell, the building industry has tended to favour

commanded a higher price; this is one objective of house

prescriptive measures over performance based measures.

energy rating schemes, but their influence on buyer or

Prescriptive measures are relatively easy for builders to

occupant behaviour is still unclear.

assess, cost and install (eg via a standard check list). The main drawback of prescriptive measures is that,

Mandatory programs can achieve results independently of user involvement, but can also impose higher costs on all house builders and buyers. The issue is whether such costs are more than offset by the total value of the energy saved, and whether the savings are distributed widely enough so that the great majority of affected parties are

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better off (noting that costs are not necessarily borne by beneficiaries). A number of design factors which have a large impact on thermal performance (such as orientation and placement of glazing) can be included during the design process at close to zero cost. However, it is difficult to specify such factors in a prescriptive sense: this is most effectively dealt with through performance based approaches (see below). The inclusion (or otherwise) of key energy efficiency measures at the time of construction is critical: many of these cannot be practically altered after construction is commenced (building orientation,

by necessity, they tend to be overly simplistic and are unable to deal with significant areas of energy efficiency (eg passive solar design = orientation and glazing placement) that often require little incremental cost to implement during construction. Performance measures are often regarded as more difficult as it may mean that the performance has to be assessed by a third party and that a series of iterations may be necessary to meet both the client’s requirements and the thermal performance requirements within the client’s cost constraints. Evidence for this comes from Victoria where builders can comply with building regulations via the inclusion of specified insulation levels or alternatively achieve a minimum star rating1 - to date very few approvals have been done on the basis of the minimum star rating. However, this paradigm within the building industry could change. The mandatory

placement of glazing, wall insulation in most cases).

minimum 4 star requirement in the ACT has forced a

The cost of including other efficiency measures is

change of approach by the local building industry

generally much higher if retrofitted in comparison with

and is now quickly gaining widespread acceptance.

installation during construction. Therefore it is much

Performance based measures have the advantage of

more cost-effective to include an integrated package

providing builders and clients with almost infinite flexibility

of efficiency measures during design and construction

to meet their requirements.

than it is to improve the efficiency of the building shell post construction.

The cost-effectiveness of these or other approaches has not explicitly been analysed in this study, which

1 From 1992-96, the rating was 4 stars (VICHERS); from 1996 this was amended to 3 stars.

If a policy shift towards higher efficiency building shell

concentrates on the energy and greenhouse gas

standards were to be adopted, then building orientation

reductions possible through improved thermal

would be an important factor in achieving this goal.

performance of building shells. It has of course been

Although some states have guidelines for the development

necessary to assume that there are means for achieving

of energy efficient subdivisions that provide for good

such improvements, so the optimum paths to achieving

solar access and facilitate correct orientation, this is not

them can now be explored.

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PROJECTION SCENARIOS

The heating and cooling energy required under each scenario is calculated as follows: ■

to estimate the impact on changes in building shell

from the characteristics of the building stock using the

thermal performance on residential energy consumption.

NatHERS model for the known range of construction

The population, household size and non-heating/cooling

types and climate types.

energy use assumptions (ie BAU+ for appliance characteristics and performance) were common to all

the unconstrained2 heating/cooling demand is calculated



PROJECTION SCENARIOS

Four building shell projection scenarios were modelled

it is assumed that the constraint ratios calculated for

four - the differences lie in the assumptions about change

the years 1990 to 1997 persist: ie if the unconstrained

in the thermal performance of the dwelling stock, and

heating demand in a State doubles, the constrained

the consequent impacts on heating and cooling energy.

heating/cooling demand also doubles.

An additional hypothetical scenario (BAU-) has been developed to estimate the impact of those residential programs introduced from 1990 to 1997. As discussed above, BAU+ and BAU- both include energy labelling for appliances. The projection scenarios are:



the constrained demand must then be met by a combination of energy forms and system types that is common to all scenarios given projected penetrations for main heating types at the state level.

It would appear from the modelling undertaken for this study that many householders are accepting standards

1. BAU+ (business-as-usual with measures) - this assumes

of thermal comfort that are significantly lower than those

that dwellings continue to be constructed to the standards

used in NatHERS. This may be because the dwellings

prevailing today, including existing or agreed minimum standards where applicable: eg minimum building insulation standards in Victoria and 4 star ACTHERS energy rating in ACT. MEPS for refrigerators, freezers and electric storage water heaters are also included in this scenario; 2. BAU- (business-as-usual without measures) - as for BAU+, but excluding those program measures that were introduced or announced during the period 1990 to November 1997; 3. ME (Medium Efficiency) - as for BAU+ with the addition of a 3.5 star effective minimum building shell requirement (as defined in the NatHERS model) for all new dwellings in all states (similar to the SEDA “Smart Homes” program) from 2000; 4. HE (High Efficiency) - as for BAU+ with the addition of a 5 star effective minimum building shell requirement (as defined in the NatHERS model) for all new dwellings in all states from 2000; 5. HE+ (High Efficiency Plus) - as for HE for new dwellings, but also assumes that the thermal performance of existing dwellings is improved by an aggressive ceiling insulation retrofit program.

are simply too difficult and/or expensive to heat or cool adequately, but it should be recognised that thermal comfort requirements and occupancy levels can vary

8

considerably. As the thermal performance of the building stock improves, householders in more efficient homes may decide to take some of the potential energy savings as increased thermal comfort rather than as reduced energy consumption. This is quite difficult to model and there is little data to confirm or otherwise the extent of this effect in Australia. There is some documentation regarding this effect in Europe and the USA within particular segments (typically for low income households), but this data is unlikely to translate to Australia given the different climatic and cultural aspects. However, given the high level of constraint of both heating and cooling demands in Australia, small changes in user behaviour would have a large impact on heating and cooling energy. Benefits still accrue from improvements in the building shell, but these may not occur in the form directly intended (eg in the form of improved comfort instead of greenhouse gas emission reductions). Conversely, there is some evidence that improvements in building shell thermal performance may result in the occupants avoiding the installation of space conditioning equipment (typically cooling equipment) which they may have otherwise chosen to install in a building with poorer thermal performance. These possibilities need to be considered when assessing the quantitative data in this report.

2 The term “unconstrained” refers to the theoretical energy consumption required to maintain a house at comfortable conditions all year (assuming space heating and cooling equipment is installed). This “unconstrained” energy then has to be “constrained” to more accurately reflect actual energy used by typical households for heating and cooling. These terms are explained in more detail later in the report.

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Figure 10: Trends in Household Characteristics & Numbers 170% 160% Total Energy Demand 150% % of 1990 value

Average Floor Area 130% No. Houses 120% 110% 100% Energy /m 2

90%

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1992

1991

80% 1990

PROJECTION SCENARIOS

140%

Interestingly, modelling showed that attached dwellings

Figure 10 shows the recent and projected key

were 36 per cent more efficient on a per square metre

characteristics of households in Australia which affect

basis in comparison with separate dwellings. In 1998,

energy consumption. While the potential (unconstrained)

attached dwellings consisted of 23 per cent of the total

energy consumption per square metre of floor area is

housing stock and this is projected to increase to

estimated to decline by 15 per cent from 1990 to 2010

26 per cent in 2010.

under the BAU+ scenario, this is expected to be more than offset by an increase in household numbers (+38 per cent)

9

and increase in the average floor area (+39 per cent) by 2010. The net impact on total household energy consumption for space heating and cooling (constrained) is a projected increase of +54 per cent under the BAU+ scenario.

A u s t r a l i a n R e s i d e n t i a l B u i l d i n g S e c t o r G re e n h o u s e G a s E m i s s i o n s 1 9 9 0 - 2 0 1 0 E x e c u t i v e S u m m a r y R e p o r t 1 9 9 9

Business as usual projections to 2010

KEY PROJECT FINDINGS

Under the business-as-usual scenario with measures,

Greenhouse gas emissions in 1990

the total greenhouse emissions from residential buildings

Total greenhouse gas emissions from residential buildings in

in 2010 are projected to be 56.7 MT CO2-e. This includes emissions from electricity, natural gas, wood and LPG.

1990 are estimated to be 48.6 MT CO2-e.3 This includes estimated by the model developed by EES for this project. In addition, there were emissions from other fuels such as solid fuels (coal, briquettes), various oil products, town gas and so on. The energy values recorded by ABARE for

KEY PROJECT FINDINGS

In addition, ABARE forecast that a small amount of other

emissions from electricity, natural gas, wood and LPG as

fuels such as solid fuels (eg coal, briquettes), various oil products, town gas and so on will be used in 2010. The energy values projected by ABARE for these additional fuels (4.9 PJ) have been used to calculate greenhouse gas emissions in 2010. These account for an extra 0.4 MT

these additional fuels (11.2 PJ) have been used to

CO2-e in 2010, totalling 57.1 MT CO2-e.

calculate greenhouse gas emissions in 1990. These accounted for an extra 0.9 MT CO2-e in 1990, totalling

Under the business-as-usual scenario without measures,

49.5 MT CO2-e.

the total greenhouse emissions from residential buildings in 2010 are projected to be 58.1 MT CO2-e. Emissions

Note: Some of the greenhouse gas emissions figures and their differences do not add up due to rounding. In addition, the energy and greenhouse values quoted are as estimated by the end use model developed by EES for this project and may not equal the values quoted by ABARE or the National Greenhouse Gas Inventory.4 However the data is broadly consistent with these data sources.

from other fuels are assumed to be the same as the business-as-usual scenario with measures scenario above. Therefore the impact of program measures implemented from 1990 to November 1997 is 1.4 MT CO2-e in 2010 (7.9 PJ), or 2.8 per cent of the 1990 residential sector emissions. These projections include expected changes 10

in consumer behaviour, where these are known. Figure 11 illustrates total greenhouse gas emissions under all 5 scenarios, over the period 1990 to 2010.

Figure 11: Total Projected Residential Greenhouse Gas Emissions 1990 to 2010 60

56 54 BAU52

BAU+

50

ME

48

HE

3 The term CO2-e refers to the net carbon dioxide rom combustion of the specified fuel(s) plus the equivalent global warming potential of associated emissions (methane and nitrous oxide). The CO2-equivalent values are slightly higher than the CO2 value because of the global warming impact of the small amounts of CH4 and N2O emitted

HE+

46 44

during combustion.

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

42 1990

Greenhouse Gas Emissions MT CO2-e

58

4 The Cross Sectoral Analysis for Greenhouse Gas Emissions estimated that greenhouse gas emissions from the residential sector in 1990 were 49.7 MT CO2-e, while this study estimates the value to be 49.5 MT CO2-e in 1990. Differences are due to weather and other effects which cannot be incorporated into the end use model.

A u s t r a l i a n R e s i d e n t i a l B u i l d i n g S e c t o r G re e n h o u s e G a s E m i s s i o n s 1 9 9 0 - 2 0 1 0 E x e c u t i v e S u m m a r y R e p o r t 1 9 9 9

by the building sector could be 108 per cent of the 1990

Quantitative assessment of an equitable commitment for the building sector

emission levels for space heating and cooling, or some 6.9 MT CO2-e.

KEY PROJECT FINDINGS

Greenhouse gas emissions from the residential sector which are attributable to the building sector are assumed

We are not suggesting that “equitable” in this context

to relate only to space heating and cooling. Estimated

means fair or reasonable with respect to the building

greenhouse emissions for space heating and cooling in

sector. This is merely the share of the national emission

1990 were estimated to be 6.3 MT CO2-e. This includes

reduction target assuming that a uniform contribution is

emissions from electricity, natural gas, wood and LPG.

made by all sectors. Ultimately, governments will have to

Emissions from other fuels have been ignored (even though

consider a range of factors such as feasibility and cost

many of these are likely to be related to space heating).

effectiveness of measures within each of the major sectors before settling on specific programs.

Australia’s commitment under the Kyoto Protocol to the Framework Convention on Climate Change is to limit its

Figure 12 illustrates greenhouse gas emissions for heating

total greenhouse gas emissions to 108 per cent of the

and cooling energy only, under all 5 scenarios, over the

1990 value by 2010. Therefore an equitable contribution

period 1990 to 2010.

Figure 12: Projected Heating & Cooling Greenhouse Gas Emissions 1990 to 2010 9.5

8.5 8.0 7.5 BAUBAU+

7.0

ME 6.5

HE

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

Quantification of the emission gap

2010

HE+

6.0 1990

11

Greenhouse Gas Emissions MT CO2-e

9.0

A range of scenarios have been quantified as part of this project to obtain an assessment of possible program

As discussed above, for the purposes of this study, if an

measures which could be used to meet an “equitable”

equitable contribution by the building sector is assumed to

commitment by the building industry to meeting the

be 108 per cent of the 1990 emission levels attributable to

emission targets. The emission gap for each of these main scenarios is outlined below.

space heating and cooling, or some 6.9 MT CO2-e in 2010, the business-as-usual with measures scenario

Medium Efficiency (ME) - The projected greenhouse

projects that greenhouse emissions will be somewhat

gas emissions in 2010 attributable to space heating and

higher at 8.9 MT CO2-e in 2010, which is +39.4 per cent of the 1990 levels. The emission gap in 2010 is therefore

cooling from electricity, natural gas, wood and LPG under this scenario is 8.2 MT CO2-e in 2010, which is +29.6 per cent of the 1990 levels. The emission gap in 2010 for this

some 2.1 MT CO2-e in 2010, or 23.6 per cent of BAU+

scenario is therefore some 1.4 MT CO2-e in 2010, or 16.7

projected heating and cooling emissions in that year.

per cent of heating and cooling emissions in that year.

A u s t r a l i a n R e s i d e n t i a l B u i l d i n g S e c t o r G re e n h o u s e G a s E m i s s i o n s 1 9 9 0 - 2 0 1 0 E x e c u t i v e S u m m a r y R e p o r t 1 9 9 9

High Efficiency (HE) - The projected greenhouse gas

cooling from electricity, natural gas, wood and LPG under

emissions in 2010 attributable to space heating and

this scenario is 7.6 MT CO2-e in 2010, which is 19.9 per

cooling from electricity, natural gas, wood and LPG under

cent of the 1990 levels. The emission gap in 2010 for this

this scenario is 8.0 MT CO2-e in 2010, which is +25.5 per

scenario is therefore some 0.8 MT CO2-e in 2010, or 9.9

cent of the 1990 levels. The emission gap in 2010 for this

per cent of heating and cooling emissions in that year.

per cent of heating and cooling emissions in that year.

Greenhouse gas emissions for the five scenarios relative to

High Efficiency Plus (HE+) - The projected greenhouse gas

1990 are also depicted in Figure 13, together with the

emissions in 2010 attributable to space heating and

Kyoto target (+8 per cent relative to 1990 emissions).

Figure 13: Projected Heating & Cooling Greenhouse Gas Emissions Relative to 1990 1.50 1.45

KEY PROJECT FINDINGS

scenario is therefore some 1.1 MT CO2-e in 2010, or 13.9

1.40

1.30 1.25 1.20

BAU-

1.15

BAU+

1.10

ME

1.05

HE

GAP Kyoto

12

The results of a range of building shell simulations are

The ‘zero energy’ option plotted on the horizontal axis is

summarised in Figure 14 which indicates the impact of

a hypothetical case where all new houses from 2000 use

improvements in the thermal performance of building shells on

zero net energy for space heating and cooling. Even this

the greenhouse gas emissions for space heating and cooling

“optimistic” scenario is unable to achieve the Kyoto

in 2010. The “with retrofit” option assumes an aggressive

commitment for Australia, mainly because of the limited

ceiling insulation program within existing houses currently

proportion of the housing stock that is affected in the

without ceiling insulation as per the HE+ scenario.

period from 2000-10.

Figure 14: Impact of Building Shell Energy Efficiency on Greenhouse Gas Emissions in 2010 1.50

CO2-e Relative to 1990

1.40

BAUBAU+ is slightly better than 2 Star (1.39) No Retrofit

ME HE

1.30 With Retrofit 1.20 HE+

1.10 Kyoto 1.00 BAU-

2 Star

2.5 Star

3 Star

3.5 Star

4 Star

Effective Minimum Star Rating for all New Houses

Note: The star rating bands are non linear and the rate of change varies with climate zone.

4.5 Star

5 Star

Zero Energy

2010

2009

2008

2007

2006

2005

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

2004

HE+

1.00

2003

CO2-e Relative to 1990

1.35

A u s t r a l i a n R e s i d e n t i a l B u i l d i n g S e c t o r G re e n h o u s e G a s E m i s s i o n s 1 9 9 0 - 2 0 1 0 E x e c u t i v e S u m m a r y R e p o r t 1 9 9 9

PROJECT CONCLUSIONS Thermal comfort levels

Land subdivision Should it be decided that new housing stock will be

PROJECT CONCLUSIONS

required to meet more stringent thermal performance It is clear from this study that present user behaviour

standards, then the need for land subdivision design to

drastically reduces the potential maximum energy

address the issue of solar access and building orientation

demands for both heating and especially cooling.

will be a necessary adjunct to such a program. One of the

However, small increases in required user comfort

most cost effective ways of producing more thermally

levels could significantly impact on energy demand in

efficient housing is through improved orientation and

this area. This potential for increase can be mitigated

glazing placement (ie passive solar design principles).

to a large extent through improved building shell thermal performance standards combined with a public energy saving awareness program.

Existing housing stock

Building shell - Performance measures versus prescriptive measures Whilst prescriptive measures are relatively easy to implement, by their nature they tend to be unsophisticated

The fact that 80 per cent of all housing stock in the year

and their use often results in lost opportunities especially

2010 has already been built by 1998 would indicate that:

in respect of the principals of passive solar design. In Victoria, for example, there are numerous houses that,

1. Improving the existing building stock through various

despite meeting the mandatory insulation requirements,

retrofitting strategies such as installation of ceiling insulation

exhibit poor thermal performance due to poor orientation,

would appear to warrant more detailed investigation.

lack of shading and or lack of winter solar access, all

13

design aspects that often represent a zero incremental 2. More stringent measures to new buildings are warranted to assist in mitigating the relatively poor thermal performance standards of our existing stock.

cost in most cases. The higher the overall thermal performance standard desired, the more likely a performance based measure will produce the most cost effective outcome for the consumer.

Longevity of building shells Building shells generally have a very long life and energy efficiency program measures implemented now will have a very long term impact, well beyond the year 2010, which is the limit of this study.

A u s t r a l i a n R e s i d e n t i a l B u i l d i n g S e c t o r G re e n h o u s e G a s E m i s s i o n s 1 9 9 0 - 2 0 1 0 E x e c u t i v e S u m m a r y R e p o r t 1 9 9 9

Embodied energy

Appliance issues

Embodied energy clearly represents a significant

Some appliance related issues have the potential to have a

proportion of a dwelling’s life cycle energy and

large long term impact on greenhouse gas emissions from

greenhouse gas emissions. Policy options that effect

residential buildings:

reductions in this area could have a significant net impact, ■

hot water service fuel selection and efficiency - the

consumed prior to or during construction. Any measures

hot water service is often selected by the builder during

designed to abate greenhouse gas emissions could not

construction and can be considered, de facto, to be part

be considered to be comprehensive if they did not

of the building shell related equipment (replacement

address this issue.

systems are almost always the same fuel). The fuel source for hot water is critical; electric systems typically have greenhouse emissions of the order of 4 times higher per unit of energy service in comparison with natural gas for mainland states. For natural gas units, the variation in the task efficiency from best to worst is

PROJECT CONCLUSIONS

especially given that a large proportion of this energy is

almost twofold. ■

uncontrolled combustion for wood heating - while the share of uncontrolled wood combustion heaters (eg open fire places) and their usage patterns are unclear at this stage, greenhouse gas emissions for these types of heaters is significant (relative to controlled combustion, which is close to zero) and they can also be associated with poor air quality in urban areas. The lack of flue control for many of these systems can also result in reduced thermal building shell performance. These issues warrant further investigation and consideration.

14

RECOMMENDED FURTHER RESEARCH

A u s t r a l i a n R e s i d e n t i a l B u i l d i n g S e c t o r G re e n h o u s e G a s E m i s s i o n s 1 9 9 0 - 2 0 1 0 E x e c u t i v e S u m m a r y R e p o r t 1 9 9 9

RECOMMENDED FURTHER RESEARCH While this study used existing data sources, there were a

this important end use. The influence of non-thermal

number of areas where data was sparse or non-existent.

factors would also provide greater understanding with

This section outlines areas where further data collection

respect to modelling.

will improve the potential modelling for similar projects in future.

One area not specifically investigated in this study but which could have significant greenhouse gas emission

Standby losses for electrical appliances and equipment

impacts is fuel substitution. The end use with the greatest

appear to be a large and growing end use in the residential

potential impact is water heating. For example, preliminary

sector. Very little is currently known about the nature of

calculations suggest that substituting all existing electric

standby losses. It is recommended that collection of data

water heaters with natural gas or LPG could potentially

on the number, magnitude and type of standby losses in the residential sector be undertaken in the near future. This could be done as part of a growing international effort to limit standby losses.

reduce residential greenhouse gas emissions by some 7 MT CO2-e in 2010, or 12 per cent of the total BAU+ case. This alone could bridge the total residential sector gap of 4.2 MT CO2-e in 2010. However, the infrastructure to achieve this is unlikely to be available within the required

A further study of the more significant building elements would be required to quantify the impact of embodied energy and related greenhouse gas emissions in terms of the life cycle analysis of residential buildings. A baseline study for embodied energy of residential buildings (and 15

another for other building types, such as commercial buildings) is recommended. A report on policy options relating to embodied energy of residential buildings (and another for other building types, such as commercial buildings) is also recommended. Strategies need to be developed for informing and educating design teams, changing the market-place and empowering consumers,

time frame. There is also some limited fuel switching potential within the cooking end use (of the order of 1 MT CO2-e of potential in 2010), although infrastructure and user preferences are likely to be problematic. Fuel substitution in the space heating segment is more limited (less 1 MT CO2-e of potential in 2010 - assuming that reverse cycle air conditioners are not substituted). Further studies are warranted in this area, with particular attention being paid to the likely expansion of the natural gas distribution system within each state and the potential for increasing the saturation of natural gas water heating and space heating in households already supplied with natural gas.

enabling the design, construction and operation of residential buildings with optimised life cycle greenhouse

While wood is a significant and growing source of energy

gas emissions.

for space heating in the residential sector, the continued use of uncontrolled combustion in a limited number

Current poor levels of public awareness, especially within

of households has the potential to produce significant

the industry, of the significance of embodied energy in the

greenhouse gas emissions, create pollution problems in

life cycle energy equation of residential buildings is seen

urban areas, and may have a detrimental impact of thermal

as an impediment to gaining public support for initiatives

performance of buildings. These issues require further

in this area. Options for raising the profile of embodied

detailed examination and quantification before specific

energy issues therefore need to be explored.

actions are implemented.

Further data collection and analysis of appliance usage patterns will provide an improved data set from which to undertake future analyses of energy consumption patterns and projections and their related greenhouse gas emissions. In particular, more data on the use of heating and cooling equipment and the relationship with building shell design and climate would greatly enhance the understanding which underpins the modelling of