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EC-LINK NEWS

EC-Link Green Finance Pilot Project: 
Existing Building Comprehensive Energy Efficiency Improvement
11 Aug, 2020

EC-Link Technical Support Summary 

EC-Link provided significant support to this project, which helped the project development and increased its bankability through a Pre-feasibility study process. The EC-Link project also identified the green financing resources and steered the project preparation to meet specific requirements of Shandong Green Development Fund. The detail Technical Support included: a) developing the project to maximise green impact and to document this impact so as to meet the eligibility criteria of downstream green financing, through rigorously documenting the results of the Pre-Feasibility Study; and b) stakeholder capacity building and trainings on green finance.  

Project Information 

Project Name, Type and Sector

Existing Building Comprehensive Energy Efficiency Improvement Building energy efficiency, retrofitting project.

Location

Qingdao city, Shandong Province, People’s Republic of China 

Project Rationale

The project solves a critical problem for Qingdao which is high level of energy consumption for heating and cooling in its building stock. This energy saving scheme by retrofitting buildings will achieve significant impact on reduction of GHG emissions and pollution. The focus area of the project will be aligned with one of the main transport corridors under the Green Public Transportation Demonstration Project creating the backbone of a Green Corridor.

There are strong policies support from national, provincial and city government levels. Qingdao is a pilot in both low carbon and adaptation initiatives of the national government and there is strong policy commitment at the local level for implementation of the policies and plans already in place relating to both energy efficiency and adaptation.

Description

The project is designed to improve energy efficiency and living standards of the existing buildings in Qingdao city. According to statistics, there are 25 million square meters of public buildings in Qingdao that have not been retrofitted for improved energy efficiency and there are 40 million square meters of old residential buildings with both a low level of thermal comfort and high energy consumption. Retrofitting these buildings has a high potential for large energy savings. The Qingdao local Urban-Rural Housing Bureau has initiated a pilot comprehensive energy efficiency improvement project for these existing buildings, for the purpose of energy saving and improving residents living conditions and now wishes to scale up this effort. The project will start in a phase 1 stage to retrofit 15 million square meters of public and residential buildings in coming 5 years. The building retrofitting will meet government criteria on energy efficiency and conservation and will utilize green building technologies - for instance prefabricated building technology and heating supply upgrading technology. The co-benefit of this project will be significant reductions of CO2, SO2, NOx and other particle pollutants. In addition, the energy conservation transformation will drive the development of relevant upstream and downstream green industries.

Key Climate Impacts  

Through the above large-scale energy conservation transformation in existing buildings and promotion of comprehensive energy efficiency, the project would provide:

  • Improve the buildings energy efficiency by more than 20%.
  • Reduction of 288,000 tCO2e per year. Some 5.76 million tCO2e over a 20-year building life.
  • Bring other co-benefits throughout the whole project cycle of 10 years:
  1. Save the Standard Coal by 70,000 tons in total 
  2. Reduce the Sulphur Dioxide emissions by 6,000 tons 
  3. Reduce the dust NOx by 3,200 tons 

Summary of Investment

This project has two major components: 

  1. Façade retrofitting 
  2. Upgrading heating systems

The estimated investment of this project is 2.25 billion RMB, as 281.01465023 million EUR  in total.

Summary of Development Outcomes 

  • The project will benefit more than 700,000 persons. Through energy-saving renovation of existing buildings, the project will improve the comfort and reduce the energy expenditures of residents and public building users and administrators;
  • The energy conservation transformation will drive the development of associated green industries, promoting the development of SMEs focused on this business line and of relevant upstream and downstream industries within the market economy;
  • The project retrofitting shall provide jobs to the construction workers and employees work for construction upstream and downstream industries, which estimated 30,000 people will be benefited.

Implementing Plan and Structure

The project is designed to retrofit 15 million square meters of public and residential buildings in coming 5 years, to achieve the objective of improving the energy efficiency. The building retrofitting will meet government criteria on energy efficiency and conservation and utilize green building technologies – for instance prefabricated building technology and heating supply upgrading technology. 

The implementation scheme will be retrofitting 2million, 3million, 3million, 3million and 4million sqm in each year respectively.  The project sponsor will utilize an “Engineering Gross Contract” for implementing the project. 

The project Implementation cycle will be 8 years, which including 3 years for implementing energy saving transformation and 5 years of construction and operation period.   

  • 3 months; Based on energy consumption monitor platform and field research and communication, further confirm the scope of energy-saving reform project in implementing areas (Shibei, Shinan, Laoshan Districts) 
  • 6 months; Feasibility research analysis, coordination and discussion with external institutions, handling of procedures and documents;  
  • 3 months; carry out energy-saving scheme demonstration for existing buildings, including technical scheme, progress plan, implementing control flow.
  • 2 years; construction of regional public buildings, designedly implement energy-saving retrofitting for different buildings, including 20 public buildings and 1 million square meters of old communities; 
  • 5 years; operation maintenance and energy-saving revenue recovering investment capital stage, by achieving maximum energy-saving, carbon-reduction and consumption-reduction, achieving the target of energy-saving revenue.

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