Economy Scale Impacts of Large-Scale Retrofits The literature review distilled the economy-scale benefits of large-scale retrofits that have been identified in either local or international studies and programs including: 1. 2. 3. 4.
Greenhouse gas emission reductions Health benefits Impacts on the energy grid Job creation and GDP effects
4.2.1 Greenhouse Gas Emission Reductions Energy efficiency is often seen as the easiest and most cost-effective way to reduce greenhouse gas emissions in the short term. It is important to note that the value of energy efficiency is not only determined by the quantity of energy that can be saved, but the timing of those energy savings as energy market costs vary significantly over the course of the day with costs typically highest when demand peaks. (Lilley et al, 2009) A study by Langham et al in 2010 looked at the reduced infrastructure costs of energy efficiency in buildings in Australia and found that subject to a carbon price of $32 per tonne of carbon dioxide, emissions savings from cost effective energy efficiency measures could be increased by a further 36%, reducing total 2020 building sector emissions to 7% below 2010 levels. The Kreditanstalt Für Wiederaufbau (KfW) is a German government-owned financing institution. KfW energy-saving programmes from 2006-2009 have saved heating costs of €1 billion per year, resulting in reduced carbon dioxide (CO2) emissions of almost 4 MtCO2/year. CO2 savings through the support programmes (low-interest loans and investment subsidies through KfW and Market Incentive Programme (MAP)) are estimated at around 1.2 MtCO2 per year. Over the lifetime of the investments, the various measures are estimated to have led to long-term savings of around 72 MtCO2.
4.2.2 Health Benefits Numerous studies report significant health and well-being improvements due to improving the energy efficiency of housing, and these benefits are frequently reported to be much greater than the energy use and cost benefits (IERC, 2021; MEEA, 2021; Telfar Banard et al, 2011, Thomson et al, 2013, Chapman et al, 2009, Prevar et al, 2010, Gilbertson and Green, 2008). Vulnerable groups that benefitted particularly are the elderly and infants, and people with chronic illness. Quantifying the exact health and wellbeing benefits is complex, however, a report by the International Energy Agency states that they could equate to 75% of the overall benefits and return on investment (IEA, 2014). Improved thermal comfort and reduced mould, damp, and draughts, means better conditions for those suffering from asthma, allergies, cardio and, in particular, respiratory illnesses. Mental health improvements were also reported (Gilbertson and Green, 2008). Reduced energy poverty frees up funds for improved medical care and medicines and reduces stress.
