Although many people are aware that the implementation of energy efficiency (EE) measures contributes to reducing energy consumption and thus results in decreased bills, most are unaware that this is just one way of measuring the economic impact of implementing these measures. A strategic approach to energy management can have a significant impact on the value of a property. Through a specific example of the implementation of EE measures under the Energy Efficiency Project for BiH (BEEP), implemented by the FBiH Ministry of Physical Planning, we present to you several hidden benefits, which in turn shows the accompanying benefits of implementing these measures.
Extending the life span of a building
The implementation of EE measures, such as thermal insulation or the installation of new openings or heating systems, extends the life span of a building by about 20 years. The length of its extended life varies with the type of material used and the quality of its construction. However, given that the construction life of a new building is around 50 years, it can be concluded that the implementation of these measures brings significant benefits.
In practice, this is also evident through the example of 9 healthcare facilities included in the BEEP Project, which were mostly built during the 1960s and 1970s. Six of the renovated buildings are over 50 years old, which means that without extending their life by implementing EE measures, their lifespan would expire.
The total improvement of the value of these facilities is around 37.5 million BAM, and given that the total amount invested in the renovations of these buildings equaled 5.5 million BAM, it is evident that the benefits are several times higher than the amount invested.
Improving Security and Reducing Risk
The indirect impacts of implementing EE measures are reflected in improved safety (fire protection, lightning protection, etc.), better internal conditions (air quality, temperature, and airflow), better appearance, and reduced risk of adverse events. For example, the renovation of the lighting system also improves fire protection, the use of LED lighting reduces the risk of fire and energy consumption for cooling. In addition to reducing the risk, the comfort and visual appearance of the buildings are also improved.
In this context, it is important to implement EE measures in public buildings, especially in healthcare facilities, which are used, in whole or in part, 24 hours, 365 days a year and where users are particularly sensitive to comfort and safety conditions.
Reduction of Operational and Maintenance Costs of the Building
Insights into energy data, which represent the functioning of all the equipment in a building, provides a more efficient approach to maintaining the building itself. For example, the implementation of EE measures in the aforementioned 9 healthcare facilities renovated under the BEEP Project resulted in savings of approximately 6.1 million BAM on maintenance costs alone.
Increase in the Value of Real Estate when Buying or Renting
Investing in energy efficiency increases the value of residential buildings by 3-8%, while rental prices, by comparison with similar real estate, increases by 3-5%. Research shows that, in the case of commercial buildings, this increase in value can be even greater, reaching as much as 10% -20%. At the same time, the implementation of EE measures has a positive effect on the rental prices of office buildings, which have increased by 2-5%.
Ultimately, we conclude that implementing EE measures leads to financial benefits, which result in greater savings than the cost of the work itself. Such spending cuts are significant for both household and public budgets.