ESCO models for the retrofit of existing buildings in China

Report bundle / Buildings Energy Efficiency Codes / China, 中国
Authors: GBPN

The global building sector accounts for approximately 30% of total energy consumption and CO2 emissions, which translates into approximately 10 billion tonnes of direct and indirect CO2 emissions using CO2 emissions data from in 2011. 

Given this impact, “green building” and energy efficiency renovation strategies of the 12th 5-year plan plays a key role in supporting the Chinese transition to a low carbon economy.

GBPN conducted a study on the factors affecting the use of ESCO models for the retrofit of existing buildings in China, identifying current barriers to the development of the Chinese ESCO market, while also researching best-practice examples of ESCOs globally and investigating the feasibility of introducing those examples to China. 

The main barriers identified to the development of the ESCO market for renovated buildings in China include: insufficient market drivers, poor access to finance, lack of consistent standards, large variance in the quality of ESCO companies due to a low threshold for recognition as an ESCO by the government. The report also recommends a number of other market stimuli and enablers. 

Government policies are critical in stimulating the uptake of the ESCO model by providing strong guidance to the market. In China, more emphasis is now being placed on the importance of strong building codes and supporting policy packages including awareness raising, but there is room for further improvement focusing in particular on stimulating the ESCO market.

Full report available in Mandarin only.

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Deep retrofit or Deep Energy Retrofit implies replacing existing systems in a building with similar ones that are of higher quality and performance, which leads to a better energy performance of an existing building. The primary energy consumption includes energy used for heating, cooling, ventilation, hot water, lighting, installed equipment and appliances. After the deep retrofit the buildings consume 50% less primary energy compared to the status of theexisting building/s the retrofit (Definition mainly used in US). [Source: GBPN, 2012]

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