Life-cycle costs: International perspectives on improving energy efficiency in the building sector
Sharing knowledge, improving decision-making
How can investors, planners and building owners apply life-cycle costing in the building sector? This question is answered by a new website, to which dena has made a significant contribution as part of the project ‘Support for international activities in the building sector’. Using case studies from Canada, China, Germany, the European Union and Pakistan, it demonstrates how life-cycle costing (LCC) contributes to more energy- and cost-efficient decisions.
Using life-cycle cost analysis to implement energy efficiency cost-effectively
Life-cycle costing takes into account the total costs of a building over its service life – not just the initial price. A holistic view across the entire life cycle, from planning through to use and finally demolition, helps policymakers, investors and building owners to make informed decisions.
Why? A large proportion of a building’s costs arise during its service life, for example in relation to operation, maintenance and energy costs. In Germany, running costs account for 80 to 90 per cent of a building’s total costs. By contrast, planning, construction and demolition account for only 10 to 20 per cent. Planning energy efficiency measures at an early stage can therefore lead to lower overall costs over the lifetime of a building, which in most calculations is around 50 years.
International case studies: From theory to practice
Five case studies were selected within the Energy Efficiency in Buildings (EEB) Task Group of the Energy Efficiency Hub: Canada, China, Germany, the European Union and Pakistan. The Energy Efficiency Hub is a voluntary collaboration between 17 governments, with its secretariat based at the International Energy Agency (IEA).
These case studies illustrate different approaches to the issue. They also demonstrate that considering life-cycle costs is a useful tool for stakeholders in the buildings sector to make more energy- and cost-efficient decisions.
The website provides fact sheets on the five case studies. These provide an overview of the following categories.
- Policy context
- Market assumptions
- Methodology
- Data availability
- Certifications
- Tools
- Challenges in implementation
- Examples of good practice
Relevant publications
