Primary energy benefits of cost-effective energy renovation of a district heated multi-family building under different energy supply systems

The European Union's Directive on energy performance of buildings emphasizes the need to take cost-effectiveness into account when measures are implemented for improved building energy efficiency. In this study, we investigate cost-effective energy renovation measures for a district heated building under different contexts, including varied locations, energy supply systems and economic scenarios. We determine the final and primary energy savings of cost-effective energy renovation packages for the building in the different contexts. The measures analysed include: improved insulation for attic floor, basement walls, and exterior walls; improved windows and doors; resource-efficient taps; heat recovery of exhaust ventilation air; energy-efficient household appliances and lighting. We consider three existing Swedish energy supply systems of varying district heat production scale and tariffs, and also plausible renewable-based energy supply systems. Our analysis calculates the final energy savings of the measures including the cost-effective renovation packages on hourly basis and links these to the different energy supply systems. The cost-effectiveness analysis is based on a double-stage optimization method, considering total and marginal investment costs of renovation measures as well as associated net present values of total and marginal cost savings. The results show that significant final and primary energy savings can be achieved when energy renovation measures are implemented for the building in the different contexts. This study shows that heat demand in existing Swedish building could be about halved while electricity use may be reduced considerably with cost-effective energy renovation measures. The economic viability of the renovation measures is sensitive to the economic regimes especially discount rates and energy price increase. •Cost-effectiveness of energy renovation of a district heated building is explored.•Varied locations, energy supply systems and economic scenarios are considered.•Final and primary energy savings of cost-effective energy renovation is analysed.•Final heat demand could be about halved with cost-effective energy renovation.•Electricity use may be reduced by about 40% with cost-effective energy renovation.