Energy Efficiency in Buildings Starts with Insulation

Although the country imports a significant amount of energy, we waste half of the energy we use for heating and cooling in our homes. Yet real savings in residential buildings begin with insulation. The only way to reduce natural gas bills—which have increased even more with recent price hikes—by 50 percent is to have thermal insulation applied to the buildings we live in. In addition to improving security and comfort, thermal insulation creates a major efficiency opportunity with energy consumption and natural gas bill savings of up to 50 percent. 31 percent of energy consumed in Turkey is used in buildings. 80 percent of energy consumed in buildings is used for heating and cooling purposes. This increase in consumption has led to a rise in energy imports in our country, which imports 74 percent of its energy. According to TURKSTAT data, energy imports that reached approximately USD 27.2 billion in 2016 increased by approximately 37 percent in 2017 to approximately USD 37.2 billion, and increased by a further 15.6 percent in 2018 to approximately USD 43 billion.

TRY 6 Billion in Savings Possible in 5 Years

Today, as a country, we need to implement insulation practices in accordance with regulations and standards to achieve secure and healthy buildings. The 'Urban Transformation Action Plan' announced by the Ministry of Environment and Urbanization on 12 September should be used as an important opportunity to bring the insulation regulations applied in our country to the same level as EU countries. According to the '2018 Energy Balance' report announced by the Ministry of Energy and Natural Resources, energy consumption in our country in 2018 was approximately 108.5 million TOE. If 300,000 residences per year are insulated in accordance with current regulations under the new action plan, the annual energy savings achieved would correspond to approximately 97.5 million cubic metres of natural gas for heating and approximately 314 million kWh of electricity for cooling. When heating and cooling are considered together, the savings amount achieved would be at approximately 220,000 tons of oil equivalent (TOE). When evaluated based on oil prices, the annual economic magnitude resulting from efficiency gains is approximately TRY 425 million per year. Therefore, over a period of 5 years, savings of over TRY 6 billion would be achieved.

5.6 Million Residences in Turkey Require Insulation

Thermal insulation applications have been mandatory since 14 June 2000. Even if we assume that all buildings constructed after this date were manufactured with insulation, only approximately 20 percent of our total building stock falls within the scope of thermal insulation regulations. As of 2017, there are 9.1 million buildings in Turkey, with residential buildings comprising 87 percent of these structures. The number of households exceeds 22 million. When buildings demolished as part of urban transformation, those that have had individual insulation applied, and newly constructed efficient buildings are taken into account, it appears that approximately 5.6 million residences require insulation. Additionally, thermal insulation is applied to approximately 150,000 existing residences per year. With the thermal insulation regulation coming into effect, buildings constructed after 2009 have at a minimum class C or higher insulation, which reduced energy consumption in residences from 68.7 percent to 59.9 percent. In order for our country to achieve its energy efficiency and environmental targets, steps need to be taken regarding older buildings that were manufactured before thermal insulation regulations. Therefore, implementation of the urban transformation action plan and a consumer-oriented insulation campaign is very important. By making all buildings in Turkey thermally insulated, we could reduce our country's total energy bill by approximately 15 percent. We Can Achieve USD 9 Billion in Savings Every Year When we make all existing buildings in our country insulated, we can achieve significant energy efficiency. The average Turkish energy imports for the past 10 years is USD 45 billion. When we include the energy we produce with our own resources, Turkey's current total energy cost is around USD 60 billion. By simply making buildings energy efficient (at least class C buildings), we have the potential to achieve USD 9 billion in savings annually. Additionally, energy has the largest share in Turkey's total imports. Energy imports create a deficit in foreign trade. Therefore, the USD 9 billion in savings achieved annually in buildings would make a significant contribution to the country's economy. Turkey is the country with the fastest growing building stock on the European continent. While the EU is transitioning to nearly zero-energy buildings, when we look at our current standards, the annual amount of energy permitted to be spent on heating a single square metre of area in our country is well above that of developed countries. When we compare U values defined in developed countries with U values recommended in our country, we see that we need to shift toward more efficient solutions as a nation. Making all buildings in Turkey more environmentally friendly and energy-efficient structures should be our priority objective.

The Cost of Energy Performance Certificate is Very Low

The Energy Performance Certificate, which entered our lives with the Energy Efficiency Law published on 22 February 2007, made it mandatory for all residences in our country to obtain an Energy Performance Certificate by 1 January 2020 with revisions. New buildings must obtain at least a class C Energy Performance Certificate to receive occupancy permits. Reaching class C conditions is only possible through proper insulation of buildings in accordance with regulations. A class C Energy Performance Certificate for new buildings indicates that the building meets minimum regulatory requirements. Classes B and A indicate buildings that progressively exceed regulatory requirements and benefit from renewable energy. Now, when buying, selling or renting a home, one should look not only at its location, view and number of rooms, but also at its certificate. The Energy Performance Certificate, which shows how much energy buildings consume, also determines their class. In the Energy Performance Certificate, building energy consumption and greenhouse gas emissions are classified between A and G. This classification is made considering the minimum requirements defined by regulations in the year the building was constructed. In buildings with a high energy class registered in the certificate, it is clear that thermal insulation, windows and frames, and heating-cooling-ventilation systems are more efficient than other structures. The cost of obtaining an Energy Performance Certificate is lower than DASK insurance. The cost of obtaining this certificate starts from an average of TRY 40 depending on the building's characteristics. Furthermore, there is an adequate number of institutions in our country to issue this certificate.

A Thermal Insulation Campaign Should Initiate a Heat Insulation Mobilization

As İZODER, we are awaiting the implementation of an insulation credit campaign that we have long been working on to support consumer purchasing power. With contributions from İZODER in the preparation phase, Minister of Energy and Natural Resources Fatih Dönmez made the following statement in April regarding the campaign: "Our sector is ready, our civil society organizations are ready, and our bankers are very enthusiastic about financing this. There are some arrangements that need to be made on the side of the Treasury and Finance Ministry. After we complete those, we will offer long-term and very low installment credit to our citizens." Under the campaign, VAT refunds to be implemented are aimed to continue until 2023. Under this campaign, it is envisaged that 300,000 residences will be insulated annually in accordance with current regulations, and annual natural gas savings of 375 million cubic metres are expected. The annual cost to our country of this natural gas saved is approximately TRY 610 million. Under the campaign, VAT refunds of approximately TRY 400 million per year are planned for 300,000 households. Therefore, the state is expected to have gains of TRY 200 million per year through the campaign, for a total of over TRY 1.2 billion. Moreover, employment resulting from insulation applications carried out within the campaign framework is expected to reach approximately 20,000 people. Total gains that could be achieved during the campaign period amount to over TRY 3.6 billion. In this context, we believe that the campaign involving VAT refunds should be implemented as soon as possible to initiate a thermal insulation mobilization in our country.

The Cost of Thermal Insulation is Not High

In a newly constructed building, the cost of thermal insulation is 2 to 5 percent of the total cost. The investment we make in thermal insulation provides approximately 50 percent savings from heating bills and pays for itself in a maximum of 5 years. For a citizen with a 100-square-metre residence, the cost of insulation application ranges from TRY 7,000 to TRY 8,500 depending on factors such as the building's characteristics, the number of building facades, and which thermal insulation board will be applied. Thanks to thermal insulation, which can be applied at a reasonable cost, we have a healthy, safe and comfortable living space in every season. If we make good use of the urban transformation opportunity and construct all buildings with correct insulation practices, we can contribute billions of dollars annually to our country's economy. By making buildings in Turkey thermally insulated, we can reduce our country's total energy bill by approximately 15 percent. Similarly, it should be noted that waterproofing, when properly designed and applied during building construction, is also quite economical. With maximum figures of 4-5 percent of the building's gross cost, it is possible to carry out work that will protect the structure from corrosion and its effects for years.   Levent Pelesen Chairman of the Board İZODER (Thermal, Water, Sound and Fire Insulation Contractors Association)