Evaluating the impact of energy efficiency strategies on households’ energy affordability: a Spanish case study

Abstract

The low energy efficiency of the European building stock is both a social and environmental issue. However, plans and studies on energy retrofitting interventions do not usually evaluate the impact of these measures on households’ energy affordability. This paper analyses and compares the effect of alternative retrofitting strategies on thermal energy services’ affordability in Spanish vulnerable households. This analysis was carried out by applying the Required Thermal Energy Expenditure model proposed in previous studies to several 2030 residential building stock scenarios, setting 2020 as a baseline. Therefore, this work proposes a methodological approach to assess the impact of the considered energy efficiency interventions on energy poverty in winter (WEP) and summer (SEP) and carries out both a ‘social cost’ and a cost-benefit analysis. The dwelling’s thermal-enclosure retrofitting stands out as a very WEP-reduction and social-cost effective measure. Instead, replacing old thermal systems with more efficient ones would have a higher impact on SEP. Combining both kinds of retrofitting measures could reduce heating and cooling required expenditures by, respectively, 49% and 59%, and decrease the WEP and SEP share, correspondingly, by 35% and 63%. These results might inform policymakers to enhance the targeting and design of energy efficiency programs.

The low energy efficiency of the European building stock is both a social and environmental issue. However, plans and studies on energy retrofitting interventions do not usually evaluate the impact of these measures on households’ energy affordability. This paper analyses and compares the effect of alternative retrofitting strategies on thermal energy services’ affordability in Spanish vulnerable households. This analysis was carried out by applying the Required Thermal Energy Expenditure model proposed in previous studies to several 2030 residential building stock scenarios, setting 2020 as a baseline. Therefore, this work proposes a methodological approach to assess the impact of the considered energy efficiency interventions on energy poverty in winter (WEP) and summer (SEP) and carries out both a ‘social cost’ and a cost-benefit analysis. The dwelling’s thermal-enclosure retrofitting stands out as a very WEP-reduction and social-cost effective measure. Instead, replacing old thermal systems with more efficient ones would have a higher impact on SEP. Combining both kinds of retrofitting measures could reduce heating and cooling required expenditures by, respectively, 49% and 59%, and decrease the WEP and SEP share, correspondingly, by 35% and 63%. These results might inform policymakers to enhance the targeting and design of energy efficiency programs.