Blog

May 30, 2023

Energy from the grid is what buildings need

By Wojciech Dąbrowski | Polish Electricity Association - PKEE 29-08-2023 Advertiser Content An Article that an external entity has paid to place or to produce to its specifications. Includes

By Wojciech Dąbrowski | Polish Electricity Association - PKEE

29-08-2023

Advertiser Content An Article that an external entity has paid to place or to produce to its specifications. Includes advertorials, sponsored content, native advertising and other paid content.

Paid Content An Article that an external entity has paid to place or to produce to its specifications. Includes advertorials, sponsored content, native advertising and other paid content.

[PGE]

Print Email Facebook Twitter LinkedIn WhatsApp Telegram

Reducing emissions from buildings is crucial for the European Union to achieve climate neutrality. Currently, buildings account for 40% of energy consumed and 36% of energy-related direct and indirect greenhouse gas emissions. In the EU, heating, cooling and domestic hot water account for 80% of the energy that households consume. These emissions result partly from the direct use of fossil fuels in buildings (e.g., oil and gas used in boilers for heating) and partly from the consumption of electricity and heat in buildings (e.g., electricity consumed by water heaters, lighting, electrical devices, cooling systems, etc).

Wojciech Dąbrowski is the President of the Management Board of Polish Electricity Association (PKEE) and PGE Polska Grupa Energetyczna

One of the key instruments of the EU legislation aimed at achieving a fully decarbonised building stock by 2050 is the Energy Performance of Buildings Directive (EPBD). In December 2021, the Commission proposed a revision of the Directive to align the existing regulatory framework with higher ambitions and increase social involvement in climate protection activities. The Council of the EU and the European Parliament agreed on their positions and started negotiations which will continue in the coming months. One of the key issues is to properly reflect the potential of energy from power grids and district heating networks.

Electricity grids are greener and greener

The EU’s energy sector is an example of a success story in reducing greenhouse gas emissions. The average GHG emission intensity of total electricity generation in the EU-27 was 45% lower in 2021 than in 1990 – decreasing from 501 g CO2e/kWh to 275g CO2e/kWh over the period. What is more, the trend is quite consistent – there was a reduction at a level close to 2% per year on average. This is mainly thanks to the implementation of the EU and national policies, a switch from coal to lower emission power generation such as renewable energy sources.

Figure 1 Greenhouse gas emission intensity of electricity generation. Source: European Environment Agency

The EU law specifies rules for the energy sector to move further towards climate neutrality. The Renewable Energy Directive (RED) sets an ambitious binding target of the share of renewables in gross final energy consumption for 2030 at the level of 42.5% along with additional indicative targets to increase it up to 45%. The power sector will play a key role in achieving those goals.

The Council in its position on EPBD includes an option to supply zero-emission buildings with electricity from power grids by referring in general to carbon free sources. The European Parliament’s position allows the use of electricity from the grid in order to supply zero-emission buildings, but only by way of exception and only together with the specific form of power purchase agreements (PPAs). The current discussion on the electricity market design reveals that PPAs markets are not developed in many EU countries, as they have chosen other RES support mechanisms. Zero-emission buildings should be allowed to cover their energy needs using zero-emission electricity from the grid as grid connection is currently the main and cost-efficient way to supply buildings, at the same time allowing for the required level of supply security and quality.

District heating systems on the way to net zero

RED also introduces a target for the gradual increase of the use of renewables for district heating and cooling purposes. Moreover, the Energy Efficiency Directive (EED) sets a strict schedule for the transition of efficient heating and cooling systems. To keep the “efficient” status, the systems must ensure a certain share of renewables and waste heat. These requirements are increasingly strict over time. From 2050, efficient systems will use only renewable energy and waste heat, which will be achieved with massive investments needed to replace the existing infrastructure. Fortunately, the European Parliament and the Council reflected this in their positions on EPBD proposals which may enable further development of district heating systems. Keeping them in the final text will be crucial for the future of these systems.

Green is green. Decentralised vs. centralised – why not both?

When observing the work on the EPBD revision, we can notice that some policy makers try to ensure that zero-emission buildings should use energy generated on-site rather than energy from the network (for electricity and heat). At the same time, they seem not to acknowledge all benefits stemming from centralized energy production which is much more cost-efficient. Taking into account the recent energy crisis, cost-effective solutions should be preferable to avoid overburdening the customers. Moreover, focusing only on generation on-site would drastically limit the amount of clean energy available to reach zero-emissions in buildings and seriously jeopardize Europe’s ability to meet its ambitious deadlines. The EPBD, setting the goal of zero-emission buildings, should leave the choice of how to power buildings with clean energy to building owners. Owners and tenants, guided by their own interests, will choose the most cost-effective solution.

There is no doubt that the energy sector will continue its way towards climate neutrality at a fast pace. Electricity grids and efficient heating and cooling systems already provide clean energy for customers, and in the coming years energy supplied by them will strive for zero-emission. Green buildings should be allowed to use this kind of supply. It is essential to ensure the possibility of covering the energy demand of zero-emission buildings through any efficient and climate-friendly sources in a technologically neutral way.

Print Email Facebook Twitter LinkedIn WhatsApp Telegram