Lebanon: Thermal Standards for Buildings - Review and Implementation Plan

June 2011

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Lebanon: Thermal Standards for Buildings - Review and Implementation Plan

PricewaterhouseCoopers Private Limited (India) was engaged by the World Bank under selection no 1015728/Lebanon: Thermal Building Standards – Review and Implementation Plan in January 2011.

The scope of work under this engagement was:

Task 1: Review existing thermal standards developed in 2005 and 2010, in light of changed fuel and electricity production costs, and changes in building design and construction practice and energy utilization. Either ratify these standards or define areas in which standards must be updated or revised;

Task 2: Identify and outline any factors related to establishing thermal standards for new buildings, including categorization of standards and application for different types of buildings (residential, commercial, etc), and legal and regulatory structure to promote adoption of that have not been considered in existing standards.

Task 3: Provide advice on best practice in the enactment, enforcement and subsequent implementation of thermal building standards, based on international experience;

Task 4: Identify barriers to implementation of thermal building standards particular to the Lebanese context, including current electricity tariff levels;

Task 5: Develop a roadmap for the implementation of a Thermal Standards Program and enactment and enforcement of thermal standards for new buildings in Lebanon, including consideration of legal and regulatory requirements for mandatory adoption of thermal building standards. This roadmap will address the barriers to implementation identified above, and recommend possible financial and/or other incentives such as CDM to assist with the adoption of thermal building standards;

Task 6: Identify key stakeholders and ensure that the proposed roadmap addresses any stakeholder issues that could affect implementation;

Task 7: Develop training/communication materials and undertake a dissemination / awareness building workshop in order to facilitate the initiation of the implementation roadmap.

Following deliverables have been completed in this assignment

  • Review and recommendations with respect to existing Thermal Building Standards and thermal standard calculation model, taking into account the changes outlined in Task 3.
  • Draft Roadmap for implementation of thermal building standards, appropriate to the Lebanese context and addressing identified barriers to implementation.
  • Stakeholder Workshop in preparation for adoption of standards.

This report incorporates the observations and comments on the stakeholder consultation carried out on 28 June 2011.

The team for the assignment comprises of following:

Inderjeet Singh (Sr. Manager PricewaterhouseCoopers Pvt. Ltd, Gurgaon, India)

VishalGarg (Associate Professor, Center of IT in Building Science, IIIT Hyderabad, India)

JyotirmayMathur (Associate Professor, Dept. of Mechanical Engineering, MNIT, Jaipur, India)

Maya Aleywan (PricewaterhouseCoopers, MENA Region)

Contents

Executive Summary...... 08

1.Rationale and Scope of roadmap for BEEC

1.1Rationale

1.2 Goal

1.3 Scope

2.Current status of energy/thermal standards in lebanon

2.1 Lebanon Energy Scenario

2.2 Institutional Framework

2.3 Regulatory Framework

2.4 Major Efforts and Achievements

3.features of effective building energy efficiency code(s)

3.1 Building Energy Efficiency Code

3.1.1 Scope

3.1.2 Compliance Approach

3.1.3 Adoption Approach

3.2 International Best Practices

3.2.1 Technical Scope of Codes

1.Whole building scope

2.Addressing climatic variation

3.Addressing residential and commercial buildings

4.Specific calculation structure

5.Calculation procedure

3.2.2Mechanism for implementation and enforcement of codes

1.Regular updating of BEEC

2.Staged implementation

3.Mandatory compliance

4.Thorough enforcement procedure

5.Penalties for lack of compliance

6.Track compliance rates

3.2.3 Code implementation support

1.Code training and certification

2.Voluntary high performance incentive programs

3.Demonstration projects

3.3 BEEC Development and Enforcement

3.3.1 Code Development

3.3.1 Code Enforcement

3.4 Energy Efficiency Governance

4.barriers in implementation of BEEC

4.1 Political Barriers

4.2 Complexity of procedures

4.3 Market Barriers

5Approach of roadmap for implementing BEEC in lebanon

6.Details of short term roadmap

6.1 Code development

6.1.1 Modification of existing Thermal Standards (TSBL) into Elemental Building Energy Efficiency Code

6.1.2 Specifying Lighting Efficiency through Lighting Power Density

6.1.3 HVAC system efficiency

6.1.4 Solar Water Heating

6.1.5 Covering major retrofitting and extension of existing buildings:

6.1.6 Mechanism for short term code development

6.2 Adoption

6.3 Implementation

6.4 Enforcement

6.5 Financial Estimates

7.Details of medium term roadmap

7.1 Development of code

7.2 Adoption

7.3 Implementation

7.4 Enforcement

7.5 Compliance tracking

8.Clean Development Mechanism

8.1 Approach & Methodology

8.2 Assurance of revenue

8.3 Important aspects of CDM

9.Conclusion

10.Activity schedule

11.References

Appendix 1- COMPARISON OF TSBL 2005 AND TSBL 2010 WITH INTERNATIONAL BEST PRACTICES

Appendix 2- REVIEW AND COMPARISON OF TSBL 2005 AND TSBL 2010

General observations:

Comparison of TSBL2005 and TSBL2010 related to prescriptive and trade-off method:

Comparison of TSBL-2005 and TBL-2010 for performance method:

Comparison of TSBL-2005 and TBL-2010 for compliance forms and tools:

Appendix 3- Recommendations for adopting TSBL 2005 and TSBL 2010 for developing elemental code and BEEC

List of Figures

Page No
Figure 1.1: Phases of Demand Side Management (DSM) in building sector / 12
Figure 3.1: BEEC development and revision cycle / 25
Figure 3.2: Role of voluntary and mandatory programs for energy efficiency / 30
Figure 3.3: Energy Efficiency Governance / 34
Figure 5.1: Roadmap for implementing BEEC in Lebanon / 41
Figure 6.1: From code development to compliance / 42
Figure 6.2: Scope of Committee for development of Elemental BEEC / 43
Figure 6.3: Phased implementation of the elemental code / 49
Figure 6.4: Building Permit System in Lebanon / 54
Figure 6.5: Enforcement of the elemental BEEC / 55
Figure 7.1: Overall structure and working of various groups for development of building energy efficiency code / 60
Figure 7.2: Enforcement of the performance BEEC / 69
Figure 8.1: CDM project cycle / 71

List of tables

Page No
Table 2.1: Reduction in operational efficiencies of some of the Thermal Power Stations in Lebanon / 15
Table 3.1: Benefits of prescriptive approach to different stakeholders / 21
Table 3.2: International Best Practices / 22
Table 33: Institutional options for enforcing building codes / 32
Table 61: Maximum lighting power allowance through building area method / 44
Table 62: Maximum lighting power allowance through space function method / 45
Table 63: Minimum COP values for HVAC systems / 46

Acknowledgments

The report has benefited from extensive review and observations of Ashok Sarkar, SimonStolp (the World Bank), and Pierre El Khoury, Rayan Slim, Rani Al Achkar, Bernard Champanhet (LCEC)

In addition to this, invaluable inputs were received from Lena Dergham, JawadAbiAkl (LIBNOR), Adel Mourtada, Samir R. Traboulsi(LGBC), Raid Assaf (ASHRAE Lebanese Chapter) RabihKhairallah (President of Mechanical Consultants Engineers) and AwenaLebeschu (IFC).

Sharique Ahmad and Ankit Gupta (PricewaterhouseCoopers)contributed to some of the graphics used in the report.

Abbreviations

APEC / Asia-Pacific Economic Cooperation
ASE / Alliance to Save Energy
ASHRAE / American Society of Heating, Refrigerating and Air conditioning Engineers
BEEC / Building Energy Efficiency Code
CDM / Clean Development Mechanism
CDR / Council for Development & Reconstruction
COP / Coefficient of Performance
DSM / Demand Side Management
EDL / ElectricitieDu Liban
EE / Energy Efficiency
ESCOs / Energy Services Companies
GEF / Global Environment Facility
GWh / Giga Watt hour
HCP / Higher Council of Privatization
HERS / Home Energy Rating System
HVAC / Heating Ventilation and Air Conditioning
IEA / International Energy Agency
IES / Illuminating Engineering Society
IRI / Industrial Research Institute
LAS / League of Arab States
LCC / Life Cycle Cost
LCEC / Lebanese Centre for Energy Conservation
LEED / Leadership in Energy and Environmental Design
LIBNOR / Lebanese Standards Institution
MDG / Millennium Development Goals
MENA / Middle East and North Africa
MEW / Ministry of Energy & Water
MW / Mega Watt
NEEAP / National Energy Efficiency Action Plan
OEA / Order of Engineers & Architects
PPP / Public Private Partnership
REEEP / Renewable Energy & Energy Efficiency Partnership
RICS / Royal Institute of Chartered Surveyors
SWH / Solar Water Heating
TSBL / Thermal Standards for Building in Lebanon
UNDP / United Nations Development Program
USAID / United States Agency for International Development
VAT / Value Added Tax
WB / World Bank

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Lebanon: Thermal Standards for Buildings - Review and Implementation Plan

Executive summary

Lebanon is working towards medium term reconstruction, recovery and reforms program to align itself with the Millennium Development Goals (MDG). Recovery and reconstruction was one of the prime representations of the country at the Paris III conference in January 2007.

The Government elect (since November 2009) has adopted a policy note and an action plan in order to increase cost effective reliable availability of electricity in the country.

One of the major requirements for reliable supply is timely capacity addition to meet the growing demand; the flip side is that new investments can happen subject to operational efficiency and profitability of the entity responsible for supply of electricity in the country. The country has not witnessed increase in electricity tariff for more than a decade although the cost of import of fossil fuels (used for electricity generation) has increased by more than 300% which has severely impacted the operational margins of ElectricitieDu Liban(EDL). Although international community has offered assistance to Lebanon in revival of its electricity sector, there has been an overarching requirement of considering environment performance of the system at par with reliable availability for consumption.

There are two possible approaches that can help curb the emissions as well as add to the energy security of the country:

-Addition of new generation capacities with better performance (low GHG emission) and /or induction of renewable energy facilities

-Reduction in consumption of energy in certain target sectors (Energy efficiency)

Building sector consumes a major portion of electricity in any country (around 40% in Lebanon) with modest recoveries and performance control over the equipments implemented and used in the building establishments unless specific performance standards are adopted at country level.

The United Nations Development Program (UNDP), through the funding from Global Environment Facility (GEF) executed the project for development of Thermal Standards for Buildings in Lebanon (TSBL) between 2002 -2005.

The major activities under this funding initiative were:

-Establishing climatic zones in the country

-Carry out economic feasibility study of energy efficiency interventions in the buildings along with energy analysis

-Development of thermal standards for various kind of buildings

-Development of technical guide and software tool for practicing engineers and implementing agencies

Along with this, a major portion of the funding was used for capacity building, stakeholder consultation, technical workshops and conferences along with specific studies and development of regional coordination.

The thermal building standards developed as an outcome of this study could not get implemented in Lebanon for various reasons. In the year 2010, the construction sector licensing body, the Order of Engineers and Architects (OEA), through French Agency for Environment prepared a revised version of the thermal standards for buildings in Lebanon and approached Lebanese Standards Institution (LIBNOR), the statutory entity for standardization, for adoption in the country.

The adoption / implementation of thermal building standards require:

-Relevance of the standards for the growing building sector in Lebanon

-Modalities of implementation of standards

-Stock taking of concerns of stakeholders

-Roadmap for short and medium term and integration with the existing laws and legislations in the country.

The World Bank (WB) in conjunction with the Lebanese Centre for Energy Conservation (LCEC), and as part of a broader program support for energy efficiency in Lebanon decided to bridge the gap between the TSBL and its actual implementation through this assignment “Lebanon: Thermal Building Standards Review and Implementation Plan”, which may in-turn outline the fitment of the thermal standards and actual requirements / preparedness of the implementation structure in the country.

This assignment has following inter related objectives:

-Address fundamental requirements for an effective implementation of TSBL in Lebanon

-Review of the thermal standards developed in 2005 and 2010 and report their appropriateness for implementation and defining areas in which standards must be updated

-Help prepare Lebanese institutions and allied stakeholders for a successful implementation of a thermal building standards program by identifying barriers to implementation and developing the roadmap to address these issues.

During the course of development of assignment objectives, it was deliberated that implementation of TSBL in its present form may not be sufficient to meet the objectives of the National Energy Efficiency Action Plan (NEEAP) which details out various energy efficiency measures for the country with ambitious target of 1.4 mtoe over 20 years [NEEAP 2010].

It is therefore proposed to develop a prescriptive code for the country so that energy efficiency can be incorporated in the ongoing and near future construction. This prescriptive code can be used in short term and add minimum efficiency levels of equipment in the current thermal standard. In the medium term the performance based Building Energy Efficiency Code (BEEC) can be developed and implemented. Simultaneously efforts can be made to transform the market to take over from the present condition to matured international best practices.

This study has thus been expanded from comparison of the two TSBL (2005 and 2010) to proposing a roadmap for the country to graduate to a comprehensive building code.

The roadmap for BEEC in Lebanon has been proposed considering the fast pace implementation / construction of new buildings in the country vis-à-vis the availability of resources, tools and techniques and preparedness of the country to switchover from the status of limited regulation in terms of building Energy Efficiency (EE) to a performance based BEEC.

The possible energy savings through efficient building envelope range between 10 – 50% depending upon the building size, climate, internal load and allied parameters. Usually in large buildings, the energy saving potential through building envelope is only upto 20% whereas additional energy saving potential of similar magnitude can be obtained through use of efficient lighting, Heating Ventilation and Air Conditioning (HVAC) and Solar Water Heating (SWH) systems. Hence, the scope of elemental BEEC is proposed to include requirement of efficient lighting, HVAC and SWH systems along with building envelope.

Short Term Road Map

For an initial period of two years, the short-term roadmap has been proposed with a target of implementing an elemental BEEC to capture immediate opportunities of improving energy efficiency in building sector. For this purpose, the approach for modifying the existing TSBL (2005 and 2010) for inclusion of prescriptive requirements for energy efficiency lighting, HVAC and solar water heating system have been presented in this report. To begin with, elemental BEEC may be adopted for public / Government buildings and later may be mandated for all the buildings.

Medium Term Road Map

It is proposed that after first two years, staged replacement of the
prescriptive elemental code by a performance based BEEC takes place. Similar to the
staged implementation of the elemental BEEC, the performance based
BEEC should also be implemented in multiple stages i.e. first for
government buildings and then for all buildings. Needless to mention
here that until the performance based code becomes mandatory for any
particular type of buildings, they would need to comply with the
elemental code. Thus, life of the elemental code extends beyond two
years and continues till the time performance based BEEC becomes
mandatory for all building types.

Considering the overlap of activities for the two versions of BEEC and
importance of both, the elemental BEEC and performance base BEEC; a medium term
roadmap for implementation of performance based building energy
efficiency code has also been proposed and presented separately in
this report. The time-frame for implementation of medium term roadmap
has been proposed as three years starting from the end of second year.
In medium term roadmap, it is intended that the country would work
towards establishment of testing facilities, policies for performance
monitoring and inspection (post implementation of buildings) through
trained officials and can look forward to meeting the global best
practices of BEEC.

The details of the short & medium term plan can be summarized as follows:

Short Term / Medium Term
Duration / 2 years / 5 years
Target / Mandating Elemental BEEC / Mandating BEEC
Purpose / Quick response to market / Stabilizing as per international best practices
Feature / Prescriptive approach through use of standardized equipments (Standards & labelling program of LIBNOR) / Performance based approach with actual quantification of efficiency improvement – whole building performance evaluation

The implementation of BEEC would also result in direct reduction of primary and secondary energy consumption. The present Kyoto regime permits development of such initiatives as candidate Clean Development Mechanism (CDM) opportunities which can help overcome the investment barriers and reduce payback period by providing direct returns to the investors through transaction of Green House Gas (GHG) emission reductions. The possibility of development of CDM projects for building efficiency gains projects is also covered in this report.

1.Rationale and Scope of roadmap for BEEC

1.1Rationale

Lebanon was involved in a long civil war until 1990 followed by regional and national instability that has resulted in a rather neglected growth of energy sector. The country is majorly dependent on service sector activities with energy intensity of 0.20 toe / $ 1000 which is about 33% more than the global average. [Isabella 2011]

Lebanon is highly dependent on service sector, recovering from war and is banking on the reconstruction of infrastructure along with a spur in new construction activities. In addition to this, the country is dependent on fossil fuel for more than 95% of its electricity demand with inefficient generation facilities that can meet around 60% of the demand of its 4.2 million people [Isabella 2011].