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The European Green Deal is a set of policy initiatives guiding Member States towards making Europe climate-neutral by 2050. In 2021, the European Commission augmented Green Deal with its Fit-for-55 proposals to align the EU’s climate and energy legislation with the goal of reducing carbon emissions by 55%, compared with 1990 levels, by 2030.
If we were asked to choose the single most important aspect of Green Deal and Fit-for-55 for commercial building owners to consider, it is the pressing nature of the deadlines. That’s because buildings account for approximately 40% of the EU’s total energy consumption, so much of the reduction mandated under Fit-for-55 will need to come from buildings.
Responding to what may seem like tough targets may be easier than building owners and developer might think, and they can gain added advantage if they install EV charging infrastructure as part of their approach.
By adopting an approach based on EV charging and sector coupling, which better integrates energy generation with consumption, they can provide their buildings with a level of energy self-sufficiency that will help offset ongoing energy price volatility, particularly if they choose to use renewables to ‘self-generate’ power.
Many building owners and developers will already have heard of the EU’s Renovation Wave which is concerned largely with making private and public buildings compliant with the laws and regulations that will deliver the EU Green Deal.
Renovation Wave is important because it sends regulatory signals that guide the implementation of existing laws and shape future laws, so it will influence proposals to revise Energy Performance Certificates and the proposed introduction of Building Renovation Passports designed to set out staged renovations over the lifetime of a building.
By preparing buildings to meet the 2030 and 2050 goals, building owners will also be ‘riding’ the Renovation Wave.
EU directives instruct Member States to legislate and develop regulations, though it’s important to know, also, that the EU’s own regulations have the force of law and are directly applicable in all Member States.
Of the directives and regulations that underpin Fit-for-55, there are four that are particularly relevant for the commercial buildings sector. These are the Energy Performance of Buildings Directive (EPBD), the Energy Efficiency Directive (EED), the Renewable Energy Directive (RED) and the Alternative Fuels Infrastructure Regulation (AFIR).
More renewable energy will be needed on to the grid, so it makes sense to invest in this wherever possible. Solar panels are often convenient, but there are many other sources, including wind turbines where there is sufficient space for them. Ground source heat pumps may be a good option in new-build situations.
When an approach has been determined, designing the new energy system can begin, and it is likely that a combination of decentralised generation assets, such as solar panels, energy storage, and new loads, such as EV chargers, will be most effectively and economically managed via a building energy management software (often referred to as the BEMS).
Faster phase out of petrol and diesel vehicles is a likely outcome of AFIR, and this may push electric vehicle sales faster, increasing the need for charging infrastructure.
Commercial buildings are well placed to help meet demand for EV charging. Estimates from research conducted for us indicates that although more than 90% of all EV chargers will be in homes or apartments buildings by 2030, they will provide less than 50% of the total electricity used to charge EVs. We believe that ‘top up’ charging - also known as ‘power snacking’ – will come from publicly accessible chargers in commercial settings.
An approach to the energy transition based on energy storage, EV charging and renewables prepares commercial buildings not only to meet regulations but also to seize opportunities. It is already possible to save on energy costs as well as earn money by levying fees for EV charging and selling self-generated power back to the grid (where this is possible).
We launched our Buildings as a Grid approach to energy transition in March 2021. The approach provides capabilities that fully align with the policy ambitions of the EU Green Deal, Fit-for-55, and the Renovation Wave. It is suitable for new-build and renovation projects, and it is cost-effective because it can be initiated without grid upgrades and scaled up, as required.
We have designed our Buildings as a Grid approach to be the most comprehensive and integrated energy transition offer on the market for commercial, residential, or mixed-use buildings or sites.
Buildings as a Grid can manage bi-directional energy flows, where they are possible, and this includes the flow of power between EVs and buildings to make the most of EV battery capacity as an energy store. This facet of the Buildings as a Grid approach can be highly effective wherever there is extensive vehicle parking, for example at a workplace, and particularly valuable as part of an EV fleet charging strategy.
Our overarching view on Europe’s rapid shift to carbon net-zero is that it is better for building owners to start their energy transition journey now, rather than wait for new laws and regulations to come into effect. The reason for this is that some laws and regulations are already in place, some are being revised, and others will be introduced in the future.
But there another reason to opt early for an approach based on sector coupling, and it’s this: every building that is prepared for the energy transition brings carbon Net Zero closer.
Opportunities abound, and it is buildings that are prepared for the energy transition that will be best placed to gain the benefits.
Parking spaces cabled for smart EV charging will encourage drivers to switch to EVs, and the increased quantity of chargers will helps deliver a reliable grid because the grid can use large numbers of EVs as flexible resources via their smart-charging capability.
It is our view, of course, that the owners of flexibility assets, such as buildings and EVs, should be remunerated for the services they provide to the grid, and we are vocal in calling for this principle to be established. We also believe that aligning the EPBD with the requirements of AFIR and RED III will be critically important because electric vehicle charging will be a gateway to energy transition for many building owners.
