Energy efficiency

Energy efficiency is an integral part of development guidelines in all energy sectors. Special attention should be paid to the energy efficiency in the sectors of direct consumption, building construction, industry and transportation, since the biggest results may be achieved in these sectors. By implementing the energy efficiency measures the increase in energy consumption is reduced, which leads to reduced need to build new capacities and import the electricity and increases the security of supply. Increasing energy efficiency with achieved energy savings contributes to minimizing use of fossil fuels and emission of harmful gases, development of economy, increased number of job opportunities, and hence better competitiveness.

In considering the possibilities and potentials of energy efficiency improvement and rational energy management in all consumption sectors in the RS, the current situation in building construction sector -residential and non-residential buildings, transportation and industry was analyzed. Based on findings and collected data, possible concrete measures for increasing energy efficiency in some consumption sectors were identified, and with analyzing impacts and consequences of their implementation. The emphasis is given to necessity to create an institutional and legal framework which is one of the basic prerequisites for successful implementation of energy efficiency measures. All available experiences from other countries show without exception that it is extremely difficult, almost impossible, to initiate the implementation of energy efficiency measures (EE) without incentive measures, which require greater investments.

Energy efficiency in buildings construction

Energy efficiency in buildings is the area with the greatest potential.

Energy efficiency in industry

The greatest potential for using of electricity is measured in the efficiency of electric motor drives.

Energy efficiency in traffic

It is necessary to increase the market potential for the penetration of more environmentally friendly technologies, primarily those that are directly correlated with greenhouse gas emissions.

Energy efficiency in buildings construction

Energy efficiency in buildings construction is an area that has the greatest potential for reducing total energy consumption, which directly leads to a more comfortable and quality life in buildings, longer useful life of a building and contributes to the protection of environment and reduction of harmful gases emission.

Buildings construction sector is particularly important in the energy consumption because:

  • participates with more than 50 % in total final consumption of energy in the RS, with a steady increase in consumption as a reflection of increasing living standards,
  • has a huge potential for energy and ecological savings,
  • buildings, due to long useful life, have long and continuous impact on the environment and energy consumption

Projects aimed at increasing energy efficiency in the building construction can act as a kind of urban and architectural incentives, and as the opportunity to apply innovative technical and technological solutions for:

  • improving the quality of construction, quality designing of energy concept;
  • construction of modern low-energy buildings;
  • modernization and energy renovation of existing buildings ;
  • increasing standards and comfort in buildings;
  • reducing maintenance costs during the useful life of buildings
  • applying innovative technologies and solutions;
  • developing an integral approach to design;
  • a long-term approach to building analysis, taking into account its entire useful life;
  • reducing energy consumption and protection of the environment.

The main goal of energy efficiency in buildings is to establish mechanisms that will permanently reduce the energy needs when designing, constructing and using new buildings, and in the reconstruction of the existing ones, as well as to remove the barriers that impede the introduction of energy efficiency measures into the existing and new residential and non-residential buildings.

The successful implementation of energy efficiency measures in buildings construction of the RS will be based on:

  • change in legal framework and its harmonization with the European regulations,
  • increasing mandatory level of thermal protection in new and existing buildings,
  • increasing efficiency of heating, cooling, ventilation and air-conditioning systems,
  • increasing efficiency of lighting systems and energy consumers,
  • energy control and energy management in existing and new buildings,
  • defining the target value for the total annual consumption in buildings per m2 or m3,
  • introducing the energy performance certificate as the system for labelling buildings and adapting an unique methodology for energy audit,
  • continuous education and promotion of energy efficiency improvement measures

Building construction sector in the RS, which includes households and the service sector, is the largest single consumer of final energy, participating with 51.8 % in the final energy consumption in 2005, or 26.58 PJ (46.9% households + 4.9% service sector).

The expected consumption in buildings construction sector without the application of energy efficiency measures in 2030 would amount 43.30 PJ, while with the application of measures in residential and non-residential buildings the same would amount 37.40 PJ in 2030. By implementing energy efficiency measures in buildings construction, the final energy consumption in buildings could drop to 42.3 % in 2030, reaching the current European average.

The useful consumption of thermal energy in building construction is very high and averages over 200 kWh/m2. In 2005 the total housing stock in the RS was approx. 31 million m2 of residential floor area, of which 90 % were family houses and 10 % apartments. It is anticipated that the total housing stock will be 44 million m2 of the residential area, of which 70-80 % will be family houses and 20-30 % apartments by 2030. The total non-residential building stock amounted 5.4 million m2 of non-residential area in 2005, or ca. 4.6 m2 per capita. The total stock of non-residential buildings is projected to be 13.5 million m2, or ca. 11.6 m2 per capita by 2030.

Without active implementation of energy efficiency measures, energy consumption in buildings construction sector will continue to rise, with both heating and cooling energy, due to increasing standards. It is assumed that, by implementing energy efficiency measures through the law, the total thermal energy consumption will be limited to a maximum of 40-60 kWh/m2 for new residential and non-residential buildings by 2030. The energy renovation of existing buildings, especially those constructed before 1987, represents the greatest potential for energy savings.

In order to achieve planned savings in building sector in the RS by 2030, it is estimated that 136 960 of old residential units or a total of 12.25 million m2 of floor area should be renovated. With each energy renovation, thermal energy demand would be reduced by 60 %, due to better thermal protection and introduction of more efficient technical systems in buildings.

By above energy efficiency measures, the final energy consumption in households would be reduced by 15 % by 2030, compared to the scenario with no energy efficiency measures implemented. But, in comparison with the baseline year 2005 the same would increase by only 22 %. The total share of energy consumption in buildings-households and services, in the final energy consumption would approach the European average today, which is about 40 %.

It is important to point out that the scenario with increasing energy efficiency measures will not be achievable without applying legislative, institutional and organizational measures and an organized system for incenting non-commercial measures. Incentives should focus on thermal insulation measures in buildings with a pay-back period longer than 4 to 5 years.

The Energy Efficiency Fund will be established for the system of incentives, which would encourage those activities and energy efficiency measures which are beneficial for the society, i.e. which result in positive externalities, and would not be realized independently by investor and/or are not profitable according to financiers. Incentives should be realized in the form of loans, subsidies, favorable interest rates, donations.

The construction of new low-energy buildings will be encouraged, along with energy renovation of existing buildings. The expected investment for increasing energy efficiency in an ordinary building constructed before 1987, in order to achieve savings of 60 %, is estimated at 100 BAM per square meter on average. With the average investment of 100 BM per m2, this would mean that the total investment in energy renovations would amount ca. 1.2 billion BAM by 2030.  Assuming that 30 % of the total investment would be stipulated, that would mean allocation of funds for promotion of energy efficiency of ca. 375 million BAM by 2030 or on average ca. 16-20 million BAM annually.

Considering that the housing sector accounts for over 85 % of total buildings construction sector, the greatest potential for energy savings lies precisely in that sector. It is assumed that the services sector will itself recognize potentials of energy efficiency, and further develop energy management plans. Hence, it should be noted that rapid growth of services sector and increase of the area to 30 % is expected, which implies that newbuilding should be planned as energy efficient and low-energy buildings.

It should be also noted that the public-purpose building sector will be the first under an obligation to provide energy certificates and inform public on how much energy is being consumed in such buildings, and what should be done in order to reduce that consumption. In this regard, the Republic of Srpska should develop specific programs to increase energy efficiency in public-purpose buildings, as well as plans for systematic energy renovation of existing buildings.

In creating a legal framework, the emphasis should be on:

  • passing the Law on Energy efficiency;
  • development of Action plan for implementation of the EU Directive on energy performance of buildings,
  • adoption of new Technical Regulations which will determine a much stricter level of thermal protection and energy consumption management in buildings in conformity with EPB (Energy Performance of Buildings) and standard ЕN 13790,
  • adoption of new Technical Regulations which will regulate the obligation of energy certification of buildings; i.e. the classification of buildings based on energy consumption
  • adoption of new Technical Regulations which will regulate the education of independent energy experts to conduct energy audits and energy certification of buildings,
  • adoption of the National methodology for energy audits,
  • continuous education of various target groups and informing the public

Furthermore, the problem of reducing energy consumption in the residential and non-residential buildings sector should be approached in an interdisciplinary way, overcoming pure cooperation between some disciplinary approaches in defining and resolving the problem. The organized monitoring, analysis and solving of energy efficiency problem in buildings construction sector must relate to entire useful life of observed building, i.e. from production costs of building material to energy costs of construction, then during usage and maintenance of building, until the moment when, due to deterioration or some other reasons, the whole building or its parts should be removed and converted into usable or unusable construction waste.

Such an integral approach to design is defined as approach that integrates all relevant architectural and construction elements and all energy systems of building into one system, and in order to achieve optimal characteristics in terms of energy efficiency, environmental impact and internal qualities and standards.

Integral planning should start at an early phase of design development. If energy efficient technologies start applying at a later stage of design, the result will be a modest integration of measures which will probably be too expensive for the implementation. For this reason, it is necessary to plan introduction of energy efficiency measures in all development plans and project tasks in order to be implemented as quickly as possible in the newly planned construction.

Energy efficiency in industry

Energy consumption in industry of Republic of Srpska in the past period represented 12% to 25% of total energy consumption in RS, or 18% to 35% share of energy consumption in BiH industry. At the beginning of this decade, that share declined from 34% to 18%, to increase subsequently to 35%. In absolute terms, energy consumption in the RS industry has been increasing since 2002.

Considering the share of energy consumption in industry, the most important industries are: metal production, chemical industry, non-metal minerals industry, mining and quarrying, food, beverage and cigarette production, textile and leather production, paper and graphic production, machine production and other industry.

Final energy consumption, for the most part, accounts for over 50% of the metal production sector.  Zvornik alumina plant is by far the largest contributor in this sector. For the same reason, natural gas is the largest contributor to fuel consumption. Another sector of high consumption is the production of food, beverages and cigarettes, while other individual sectors are significantly less represented. Electricity consumption accounts for the largest share of the food, beverage and cigarette manufacturing sectors.

By comparing the form of final energy consumption, by far the most represented energy-generating  product is natural gas, whose consumption has varied in the previous period. In terms of highest consumption then come liquid fuels, primarily oil. Then comes electricity, while wood waste, coal and other solid fuels were less represented.

The scenario for the development of energy consumption in industry predicts a doubling of final energy consumption by 2030 under scenario S1, by about 3% less growth under scenario S2, and by about 12% less growth under scenario S3. It is assumed that the manufacturing industry has a 4 to 5 times higher share than agriculture, civil engineering and mining. Electricity accounts for less than a fifth of total consumption so far. It is assumed that this percentage will increase, but for energy efficiency measures it is therefore advisable to concentrate on the rational use of thermal energy. Natural gas will retain a leading share among energy-generating products, so the area of application of the measures should focus on the efficiency of thermal aggregates, the reduction of distribution losses and the efficiency of thermal processes.

For electricity, the greatest potential for application of measures is in the efficiency of electric motor drives. Appropriate organizational measures – energy audits, sectoral analyzes and feasibility studies on increasing energy efficiency – are indispensable in the proper energy policy for industry.

According to complexity and investment intensity, the applicable energy efficiency measures can be divided into measures:

  • fundamental rationalization of energy consumption (behavior changes, load management, etc.),
  • revitalization of electrical and thermal infrastructure, reactive power compensation
  • consumer intervention (replacement, repair, etc.),
  • interventions on energy units (repair, upgrading, etc.),
  • construction of a new energy system (new power plant and energy infrastructure)
  • introduction and improvement of complete regulation and automatization

Improvements should be planned in such a way that measures are taken in accordance with the above schedule, since the former imply smaller investments, simpler projects and faster cost-effectiveness. Taking more complex and expensive measures makes full sense only when simpler and cheaper measures have been implemented.

The stages of implementation of energy efficiency projects in industry can be presented in the following hierarchy:

  • Preliminary audit -> information on potentials,
  • Full energy audit -> Recorded actual status and known required measures,
  • feasibility study -> technical and economic analysis,
  • project-> technical details and financial plan,
  • implementation-> energy savings and rational use of energy.

The presence of all the above elements depends on the complexity of the projects, but basically the results of one phase allow for quality preparation of the other. Accordingly, where certain stages of implementation are insufficient or lacking, they need to be supported promotionally, financially and organizationally.

The energy savings potentials can be effectively grouped into the savings at:

  • electric motor drives,
  • lighting,
  • air conditioning,
  • heating.

These groups are generally present when observing all consumer groups. Specific technological processes in the industry that consume larger quantities of electricity should be analyzed separately.

The use of heat in industry is related to the specific technological process of a particular industry. Water is the most commonly used medium. Only the process industry uses other fluids in its technology as heat transfer media. Here one should look at the efficiency of thermal units – mainly boilers, depending on the fuel used, then also at the media distribution losses and the rationality of use of heat energy in the very production process.

Conducting energy audits in industrial plants has proven to be an extremely effective measure of increasing energy efficiency.

The elements of conducting an energy audit of generating plants, based on monitoring and analysis of the use of heat and electricity for different categories of consumers, most commonly refer to these areas of energy use:

  • lighting,
  • electric motor drives,
  • fans and pumps,
  • compressed air systems,
  • steam systems,
  • other production processes specific to individual industrial plants (cooling, drying, specific heat processes, other separate industrial processes).

It should be taken into account that aluminum production and processing is an energy-intensive industry, where approximately 22.3 GJ of energy per ton of alumina is specifically consumed. The position of this industry emphasizes particular consideration in considering energy

rationality.  Energy consumption in food, beverage and cigarette industry, the next highest consumption sector, is difficult to specify, for many processes are involved and just until recently power consumption in this industry was not considered to be considerable. However, analyzes show that in developed countries, food industry consumes about 10% of the total energy required for the entire industrial sector. Heat-saving measures are particularly important here.

Previous analyzes show that, among industrial enterprises in the RS, in most cases it is not considered that there is a need for efforts to increase the rational use of energy. Especially in the case of thermal energy, over 90% of the situation is considered not to have this need, while in the case of electricity in just over 15%, the situation is considered to be in need of improvement.

In order to remedy the situation in this area, the RS Government will take concrete measures to raise awareness of the importance of rationalizing energy consumption in industrial entities.

Energy efficiency in transport

The transport sector accounts for about 20% of the EU’s total primary energy consumption. Of this, 98% of the total energy consumption in the sector comes from fossil fuels. Being the fast-growing sector in terms of power consumption, traffic also represents one of the main sources of greenhouse gases and is largely dependent on the import of fossil fuels. Therefore, the implementation of energy efficiency policies in this sector is justified and necessary in order to achieve a sustainable, competitive and modern system.

In short, the goal is to establish a single, efficient and effective transport system that will:

  • ensure high mobility of people and services,
  • protect the environment, improve energy security, promote the minimum working standards of the transport sector and protect passengers and citizens,
  • the transport sector should contribute to ensuring global energy security,
  • increase the quality of jobs as well as of employees in the transport sector,
  • take care of the protection of citizens as users and providers of transport services,
  • be innovative in supporting the realization of the first two objectives: mobility and protection, by increasing the efficiency and sustainability of the growing transport sector.

The stated objectives are absolutely consistent with the Lisbon Strategy guidelines for EU development. They are, of course, of a long-term nature and represent a balance between economic growth, social well-being and the environmental protection.

EU road and air transport has already started to feel the benefits of achieving the set goals, while more significant activities are expected in the near future for rail and water transport.

It is necessary to increase the market’s potential for penetration of more environmentally friendly technologies, primarily those that are directly correlated with greenhouse gas emissions.

The transition to more environmentally friendly forms of transport should be achieved primarily where real prerequires already exist, and especially in long-distance, urban and congested corridors’ traffic. At the same time, all forms of transport will need to become more environmentally friendly, safer and more energy efficiency.

In the end, intermodality will lead to the optimal and sustainable use of available transport resources.

The existence of a clear political will and the definition of exact goals for the implementation of energy efficiency policy in RS transport is crucial for their realization.  The Directive 2006/32/EC on energy enduse efficiency and energy services, which proclaims encouragement of more efficient power use in all sectors of its production, including traffic may serve as a reference guideline in defining the goals of the RS. The objective of increasing energy efficiency was defined in accordance with the Directive as a reduced average annual increase of the reference scenario by 1% in the period 2008-2016.

The implementation of the defined goals will certainly require timely implementation of the appropriate measures.  In order to identify concrete measures and propose the optimal dynamics of their implementation, it is necessary to evaluate the measures from the aspect of optimal allocation of the funds needed for their implementation (achieving the maximum effect of energy efficiency with minimum necessary financial, infrastructural and organizational resources).

Institutional capacity will also need to be engaged in order to implement energy efficiency measures. These measures should be informational, educational, legislative, fiscal, infrastructural and organizational.