Feasibility study of energy-efficient buildings : today's solution to curb future energy demand

Abstract

The present situation in Malta is that we rely heavily on fossil fuels for our energy generation and the use of alternative energy is still insignificant, and yet there is plenty to be explored. Lately, the price increase relating to the electricity tariff has become a hot issue on a national level. There is no other alternative than that of educating consumers to reduce their consumption and, most importantly to resort to energy-efficient solutions. So far, the absolute majority of buildings in Malta have been built using the least expensive material, with the aim of reducing capital costs. No concern is given to the long-term energy bill of these buildings and therefore no energy-saving measures are incorporated at the design stage. As a result, such buildings have proved to be too cold in winter and too hot in summer, to keep a reasonable level of comfort. Way back in 2002, the EU has issued the Energy Performance of Buildings Directive (EPBD) with the aim of promoting the improvement of the energy performance of buildings. Malta responded to this EU directive by issuing Legal Notice 238 of 2006 (Minimum Requirements on the Energy Performance of Buildings Regulations). Since 2003, the Housing Authority in Malta has voluntarily committed itself to building energy-efficient Housing Projects, with the first project being realised at 'Tal-Ftieh', Birkirkara, Malta. This dissertation assesses the financial feasibility of some of the adopted energy-efficient measures in this Housing Project, which can be easily adopted for other buildings. The study is based on current market prices of these technologies and projects the savings of each respective measure are also calculated according to the latest water and electricity tariffs (applicable from January 2010). Different investment appraisal techniques, including the simple payback period, the net present value and the discounted payback period, were used. The results of the financial evaluation are further substantiated through the sensitivity analyses in which different scenarios are presented and studied. A table of priority list of measures has been produced which is instrumental in assisting developers or users to choose the most appropriate measures that match their needs. In the final chapter, conclusions are drawn up together with the recommendations addressed to policy makers with the aim of reaching the main EU's target of reducing annual consumption of primary energy by 20% by 2020. One day the use of renewable energy will not remain a matter of choice but will become a necessity in order to ensure a sustainable energy future for us and generations to come. This day in now.