Is intrinsic energy efficiency reflected in the pricing of office leases?

This paper investigates whether the intrinsic energy efficiency rating of an office building has a significant impact on its rental value. A sample of 817 transactions for offices with Energy Performance Certificates (EPCs) in the UK is used to assess whether a pricing differential can be identified, depending on the energy rating. While previous analyses of this topic have typically relied on appraisal-based and/or asking rent data, the dataset used in this research contains actual contract rents as well as information on lease terms. The results indicate a significant rental premium for energy-efficient buildings. However, it is found that this premium appears to be mainly driven by the youngest cohort of state-of-the-art energy-efficient buildings. The results also show that tenants of more energy-efficient buildings tend to pay a lower service charge, but this link appears to be rather weak and limited to newer buildings. Hence, it is argued that the information contained in the EPC is still not fully taken into account in the UK commercial property market with the possible exception of both the highest and the lowest EPC ratings.

Does energy efficiency matter to home-buyers? An investigation of EPC ratings and transaction prices in England

This paper investigates whether energy performance ratings, as measured by mandatory Energy Performance Certificates (EPCs), are reflected in the sale prices of residential properties. This is the first large-scale empirical study of this topic in England involving 333,095 dwellings sold at least twice in the period from 1995 to 2012. Applying hedonic regression and an augmented repeat sales regression, we find a positive relationship between the energy efficiency rating of a dwelling and the transaction price per square metre. The price effects of superior energy performance tend to be higher for terraced dwellings and flats compared to detached and semi-detached dwellings. The evidence is less clear-cut for rates of house price growth but remains supportive of a positive association. Overall, the results of this study suggest that energy efficiency labels have a measurable and significant impact on house prices in England

Building performance evaluation of domestic energy efficient retrofits in current and future climates

Approximately half of the houses in Northern Ireland were built before any form of minimum thermal specification or energy efficiency standard was enforced. Furthermore, 44% of households are categorised as being in fuel poverty; spending more than 10% of the household income to heat the house to bring it to an acceptable level of thermal comfort. To bring existing housing stock up to an acceptable standard, retrofitting for improving the energy efficiency is essential and it is also necessary to study the effectiveness of such improvements in future climate scenarios. This paper presents the results from a year-long performance monitoring of two houses that have undergone retrofits to improve energy efficiency. Using wireless sensor technology internal temperature, humidity, external weather, household gas and electricity usage were monitored for a year. Simulations using IES-VE dynamic building modelling software were calibrated using the monitoring data to ASHARE Guideline 14 standards. The energy performance and the internal environment of the houses were then assessed for current and future climate scenarios and the results show that there is a need for a holistic balanced strategy for retrofitting.

Energy efficient multi storey residential developments

Worldwide, the current pattern of urban development is unsustainable and metropolitan planning and development strategies deliver poor environmental outcomes in relation to energy production. As a result, an increasing number of governments and private sector development companies are initiating projects that aim to deliver enhanced environmental outcomes rather than a ‘business as usual’ approach. This paper will summarise the findings from a study that explored the link between building orientation and energy efficiencies in sub-tropical and tropical climates. The study used a new thermal modelling software tool developed by CSIRO that responds more accurately to residential heating and cooling energy performance in those climate zones. This software tool responds to industry criticisms regarding cold climate modelling systems that do not make sufficient allowance for natural ventilation. The study examined a range of low, medium and high-density dwelling types and investigated the impact of orientation, insulation, ventilation and shading devices on energy efficiencies. This paper will examine the findings from the medium and high-density case study developments as these are relevant to residential developments in many South East Asian countries, such as Singapore, Hong Kong and Malaysia. Finally, the paper will explore the potential benefits that medium and high-density residential developments have in the development of ‘solar cities’ and ‘solar suburbs’.

Public awareness of “green” and “energy efficient” residential property : an empirical survey based on data from New Zealand

Purpose – The purpose of this paper is to examine the buyer awareness and acceptance of environmental and energy efficiency measures in the New Zealand residential property markets. This study aims to provide a greater understanding of consumer behaviour in the residential property market in relation to green housing issues ---------- Design/methodology/approach – The paper is based on an extensive survey of Christchurch real estate offices and was designed to gather data on the factors that were considered important by buyers in the residential property market. The survey was designed to allow these factors to be analysed on a socio-economic basis and to compare buyer behaviour based on property values. ---------- Findings – The results show that regardless of income levels, buyers still consider that the most important factor in the house purchase decision is the location of the property and price. Although the awareness of green housing issues and energy efficiency in housing is growing in the residential property market, it is only a major consideration for young and older buyers in the high income brackets and is only of some importance for all other buyer sectors of the residential property market. Many of the voluntary measures introduced by Governments to improve the energy efficiency of residential housing are still not considered important by buyers, indicating that a more mandatory approach may have to be undertaken to improve energy efficiency in the established housing market, as these measures are not valued by the buyer. ---------- Originality/value – The paper confirms the variations in real estate buyer behaviour across the full range of residential property markets and the acceptance and awareness of green housing issues and measures. These results would be applicable to most established and transparent residential property markets.

Will insulation always bring benefits in energy saving and thermal comfort?

Building insulation is often used to reduce the conduction heat transfer through building envelope. With a higher level of insulation (or a greater R-value), the less the conduction heat would transfer through building envelope. In this paper, using building computer simulation techniques, the effects of building insulation levels on the thermal and energy performance of a sample air-conditioned office building in Australia are studied. It is found that depending on the types of buildings and the climates of buildings located, increasing the level of building insulation will not always bring benefits in energy saving and thermal comfort, particularly for internal-load dominated office buildings located in temperate/tropical climates. The possible implication of building insulation in face of global warming has also been examined. Compared with the influence of insulation on building thermal performance, the influence on building energy use is relatively small.

The influence of glass types on the performance of air-conditioned office buildings in Australia

Windows are one of the most significant elements in the design of buildings. Whether there are small punched openings in the facade or a completely glazed curtain wall, windows are usually a dominant feature of the building's exterior appearance. From the energy use perspective, windows may also be regarded as thermal holes for a building. Therefore, window design and selection must take both aesthetics and serviceability into consideration. In this paper, using building computer simulation techniques, the effects of glass types on the thermal and energy performance of a sample air-conditioned office building in Australia are studied. It is found that a glass type with lower shading coefficient will have a lower building cooling load and total energy use. Through the comparison of results between current and future weather scenarios, it is identified that the pattern found from the current weather scenario would also exist in the future weather scenario, although the scale of change would become smaller. The possible implication of glazing selection in face of global warming is also examined. It is found that compared with its influence on building thermal performance, its influence on the building energy use is relatively small or insignificant.

Estimation of energy saving of commercial building by living wall and green facade in sub-tropical climate of Australia

This paper investigates energy saving potential of commercial building by living wall and green façade system using Envelope Thermal Transfer Value (ETTV) equation in Sub-tropical climate of Australia. Energy saving of four commercial buildings was quantified by applying living wall and green façade system to the west facing wall. A field experimental facility, from which temperature data of living wall system was collected, was used to quantify wall temperatures and heat gain under controlled conditions. The experimental parameters were accumulated with extensive data of existing commercial building to quantify energy saving. Based on temperature data of living wall system comprised of Australian native plants, equivalent temperature of living wall system has been computed. Then, shading coefficient of plants in green façade system has been included in mathematical equation and in graphical analysis. To minimize the air-conditioned load of commercial building, therefore to minimize the heat gain of commercial building, an analysis of building heat gain reduction by living wall and green façade system has been performed. Overall, cooling energy performance of commercial building before and after living wall and green façade system application has been examined. The quantified energy saving showed that only living wall system on opaque part of west facing wall can save 8-13 % of cooling energy consumption where as only green façade system on opaque part of west facing wall can save 9.5-18% cooling energy consumption of commercial building. Again, green façade system on fenestration system on west facing wall can save 28-35 % of cooling energy consumption where as combination of both living wall on opaque part of west facing wall and green façade on fenestration system on west facing wall can save 35-40% cooling energy consumption of commercial building in sub-tropical climate of Australia.

Vertical vegetation design decisions and their impact on energy consumption in subtropical cities

Vertical vegetation is vegetation growing on, or adjacent to, the unused sunlit exterior surfaces of buildings in cities. Vertical vegetation can improve the energy efficiency of the building on which it is installed mainly by insulating, shading and transpiring moisture from foliage and substrate. Several design parameters may affect the extent of the vertical vegetation's improvement of energy performance. Examples are choice of vegetation, growing medium geometry, north/south aspect and others. The purpose of this study is to quantitatively map out the contribution of several parameters to energy savings in a subtropical setting. The method is thermal simulation based on EnergyPlus configured to reflect the special characteristics of vertical vegetation. Thermal simulation results show that yearly cooling energy savings can reach 25% with realistic design choices in subtropical environments. Heating energy savings are negligible. The most important parameter is the aspect of walls covered by vegetation. Vertical vegetation covering walls facing north (south for the northern hemisphere) will result in the highest energy savings. In making plant selections, the most significant parameter is Leaf Area Index (LAI). Plants with larger LAI, preferably LAI>4, contribute to greater savings whereas vertical vegetation with LAI<2 can actually consume energy. The choice of growing media and its thickness influence both heating and cooling energy consumption. Change of growing medium thickness from 6cm to 8cm causes dramatic increase in energy savings from 2% to 18%. For cooling, it is best to use a growing material with high water retention, due to the importance of evapotranspiration for cooling. Similarly, for increased savings in cooling energy, sufficient irrigation is required. Insufficient irrigation results in the vertical vegetation requiring more energy to cool the building. To conclude, the choice of design parameters for vertical vegetation is crucial in making sure that it contributes to energy savings rather than energy consumption. Optimal design decisions can create a dramatic sustainability enhancement for the built environment in subtropical climates.

The development of a simple multi-nodal tool to identify performance issues in existing commercial buildings

Australia’s building stock includes many older commercial buildings with numerous factors that impact energy performance and indoor environment quality. The built environment industry has generally focused heavily on improving physical building design elements for greater energy efficiency (such as retrofits and environmental upgrades), however there are noticeable ‘upper limits’ to performance improvements in these areas. To achieve a stepchange improvement in building performance, the authors propose that additional components need to be addressed in a whole of building approach, including the way building design elements are managed and the level of stakeholder engagement between owners, tenants and building managers. This paper focuses on the opportunities provided by this whole-of-building approach, presenting the findings of a research project undertaken through the Sustainable Built Environment National Research Centre (SBEnrc) in Australia. Researchers worked with a number of industry partners over two years to investigate issues facing stakeholders at base building and tenancy levels, and the barriers to improving building performance. Through a mixed-method, industry-led research approach, five ‘nodes’ were identified in whole-of-building performance evaluation, each with interlinking and overlapping complexities that can influence performance. The nodes cover building management, occupant experience, indoor environment quality, agreements and culture, and design elements. This paper outlines the development and testing of these nodes and their interactions, and the resultant multi-nodal tool, called the ‘Performance Nexus’ tool. The tool is intended to be of most benefit in evaluating opportunities for performance improvement in the vast number of existing low-performing building stock.

Greening Buildings : How can the performance of existing commercial buildings be improved?

Efforts to improve the performance of commercial buildings have often focused on encouraging green design, construction and building operation; however, the business case is not very compelling if considering the energy cost savings alone. In recent years green building has been driven by a sense that it will improve the productivity of occupants, something with even greater economic returns than energy savings. Reducing energy demand in commercial buildings in a way that encourages greater productivity is not yet well understood as it involves a set of complex and interdependent factors. This project investigates these factors and focuses on the performance of and interaction between: green design elements, indoor environment quality, tenant/ leasing agreements and culture, occupant experience, and building management practices.

Collaborative resource development for energy efficiency education

BACKGROUND There is a growing volume of open source ‘education material’ on energy efficiency now available however the Australian government has identified a need to increase the use of such materials in undergraduate engineering education. Furthermore, there is a reported need to rapidly equip engineering graduates with the capabilities in conducting energy efficiency assessments, to improve energy performance across major sectors of the economy. In January 2013, building on several years of preparatory action-research initiatives, the former Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education (DIICCSRTE) offered $600,000 to develop resources for energy efficiency related graduate attributes, targeting Engineers Australia college disciplines, accreditation requirements and opportunities to address such requirements. PURPOSE This paper discusses a $430,000 successful bid by a university consortium led by QUT and including RMIT, UA, UOW, and VU, to design and pilot several innovative, targeted open-source resources for curriculum renewal related to energy efficiency assessments, in Australian engineering programs (2013-2014), including ‘flat-pack’, ‘media-bites’, ‘virtual reality’ and ‘deep dive’ case study initiatives. DESIGN/ METHOD The paper draws on literature review and lessons learned by the consortium partners in resource development over the last several years to discuss methods for selecting key graduate attributes and providing targeted resources, supporting materials, and innovative delivery options to assist universities deliver knowledge and skills to develop such attributes. This includes strategic industry and key stakeholders engagement. The paper also discusses processes for piloting, validating, peer reviewing, and refining these resources using a rigorous and repeatable approach to engaging with academic and industry colleagues. RESULTS The paper provides an example of innovation in resource development through an engagement strategy that takes advantage of existing networks, initiatives, and funding arrangements, while informing program accreditation requirements, to produce a cost-effective plan for rapid integration of energy efficiency within education. By the conference, stakeholder workshops will be complete. Resources will be in the process of being drafted, building on findings from the stakeholder engagement workshops. Reporting on this project “in progress” provides a significant opportunity to share lessons learned and take on board feedback and input. CONCLUSIONS This paper provides a useful reference document for others considering significant resource development in a consortium approach, summarising benefits and challenges. The paper also provides a basis for documenting the second half of the project, which comprises piloting resources and producing a ‘good practice guide’ for energy efficiency related curriculum renewal.

Design a zero energy house in Brisbane, Australia

Due to the increasing energy demand and global warming effects, energy efficient buildings have become increasingly important in the modern construction industry. This research is conducted to evaluate the energy performance, financial feasibility and potential energy savings of zero energy houses. Through the use of building computer simulation technique, a 5 stars energy rated house was modelled and validated by comparing the energy performance of a base case scenario to a typical house in Brisbane. By integrating energy reduction strategies and utilizing onsite renewable energy such as solar energy, zero energy performance is achieved. It is found that approximately 66 % energy savings can be achieved in the household annual energy usage by focusing on maximizing the thermal performance of building envelope, minimizing the energy requirements and incorporating solar energy technologies.

Embodied energy of service trading in Hong Kong

Purpose Energy is a resource of strategic importance for high density cities. International trade reshapes the urban economy and industrial structure of a city, which will indirectly affect energy use. As an international trade hub, Hong Kong relies on the import and export of services. Energy performance in the international trading of these services needs to be properly understood and assessed for Hong Kong’s urban renewal efforts. Design/methodology/approach This study evaluates Hong Kong’s embodied energy in service trades based on an input-output analysis. The three criteria used for assessment include trading areas, industry sector, and trade balance. Findings Analyzed by region, results show that Mainland China and the USA are the two largest sources of embodied energy in imports of services, while Mainland China and Japan are the two largest destinations of exports. In terms of net embodied energy transfer, Hong Kong mainly receives net energy import from Mainland China and the USA and supplies net energy export to Japan, the UK and Taiwan. Among industry sectors, Manufacturing services, Transport and Travel contribute most significantly to the embodied energy in Hong Kong’s imported services, while Transport and Travel contribute most to the energy embodied in exported services. Originality/value This study identifies the characteristics of energy consumption of service trading and establishes a feasible approach to analyze energy performance of service trade in energy-deficient Hong Kong for the first time. It provides necessary understanding and foundation for developing energy strategies in a service-based, high density urban economy.

Electronic Building Passport - Final Report: Project 2 National Energy Efficient Building Project Phase 2

The National Energy Efficient Building Project (NEEBP) Phase One report, published in December 2014, investigated “process issues and systemic failures” in the administration of the energy performance requirements in the National Construction Code. It found that most stakeholders believed that under-compliance with these requirements is widespread across Australia, with similar issues being reported in all states and territories. The report found that many different factors were contributing to this outcome and, as a result, many recommendations were offered that together would be expected to remedy the systemic issues reported. To follow up on this Phase 1 report, three additional projects were commissioned as part of Phase 2 of the overall NEEBP project. This Report deals with the development and piloting of an Electronic Building Passport (EBP) tool – a project undertaken jointly by pitt&sherry and a team at the Queensland University of Technology (QUT) led by Dr Wendy Miller. The other Phase 2 projects cover audits of Class 1 buildings and issues relating to building alterations and additions. The passport concept aims to provide all stakeholders with (controlled) access to the key documentation and information that they need to verify the energy performance of buildings. This trial project deals with residential buildings but in principle could apply to any building type. Nine councils were recruited to help develop and test a pilot electronic building passport tool. The participation of these councils – across all states – enabled an assessment of the extent to which these councils are currently utilising documentation; to track the compliance of residential buildings with the energy performance requirements in the National Construction Code (NCC). Overall we found that none of the participating councils are currently compiling all of the energy performance-related documentation that would demonstrate code compliance. The key reasons for this include: a major lack of clarity on precisely what documentation should be collected; cost and budget pressures; low public/stakeholder demand for the documentation; and a pragmatic judgement that non-compliance with any regulated documentation requirements represents a relatively low risk for them. Some councils reported producing documentation, such as certificates of final completion, only on demand, for example. Only three of the nine council participants reported regularly conducting compliance assessments or audits utilising this documentation and/or inspections. Overall we formed the view that documentation and information tracking processes operating within the building standards and compliance system are not working to assure compliance with the Code’s energy performance requirements. In other words the Code, and its implementation under state and territory regulatory processes, is falling short as a ‘quality assurance’ system for consumers. As a result it is likely that the new housing stock is under-performing relative to policy expectations, consuming unnecessary amounts of energy, imposing unnecessarily high energy bills on occupants, and generating unnecessary greenhouse gas emissions. At the same time, Councils noted that the demand for documentation relating to building energy performance was low. All the participant councils in the EBP pilot agreed that documentation and information processes need to work more effectively if the potential regulatory and market drivers towards energy efficient homes are to be harnessed. These findings are fully consistent with the Phase 1 NEEBP report. It was also agreed that an EBP system could potentially play an important role in improving documentation and information processes. However, only one of the participant councils indicated that they might adopt such a system on a voluntary basis. The majority felt that such a system would only be taken up if it were: - A nationally agreed system, imposed as a mandatory requirement under state or national regulation; - Capable of being used by multiple parties including councils, private certifiers, building regulators, builders and energy assessors in particular; and - Fully integrated into their existing document management systems, or at least seamlessly compatible rather than a separate, unlinked tool. Further, we note that the value of an EBP in capturing statistical information relating to the energy performance of buildings would be much greater if an EBP were adopted on a nationally consistent basis. Councils were clear that a key impediment to the take up of an EBP system is that they are facing very considerable budget and staffing challenges. They report that they are often unable to meet all community demands from the resources available to them. Therefore they are unlikely to provide resources to support the roll out of an EBP system on a voluntary basis. Overall, we conclude from this pilot that the public good would be well served if the Australian, state and territory governments continued to develop and implement an Electronic Building Passport system in a cost-efficient and effective manner. This development should occur with detailed input from building regulators, the Australian Building Codes Board (ABCB), councils and private certifiers in the first instance. This report provides a suite of recommendations (Section 7.2) designed to advance the development and guide the implementation of a national EBP system.