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    Improving buildings energy performance - Comparison between simple payback period and life cycle costs analysis

    ProjectAnnex 56 Cost
    TitleImproving buildings energy performance - Comparison between simple payback period and life cycle costs analysis
    Publication TypeCommunications in International Conferences
    Year of Publication2015
    AuthorsFerreira M., Almeida, Manuela G., and Rodrigues A.
    Abstract

    The building sector is one of the Europe’s main energy consumer, making buildings an important target for a wiser energy use, improving indoor comfort conditions and reducing the energy consumption. To achieve the European Union targets for energy consumption and carbon reductions it is crucial to act in new, but also in existing buildings, which constitute the majority of the building stock. In existing buildings, the significant improvement of their efficiency requires important investments. Therefore, costs are a major concern in the decision making process and the analysis of the cost effectiveness of the interventions is an important path in the guidance for the selection of the different renovation scenarios. The Portuguese thermal legislation considers the simple payback method for the calculations of the time for the return of the investment. However, this method does not take into consideration inflation, cash flows and cost of capital, as well as the future costs of energy and the building elements lifetime as it happens in a life cycle cost analysis. In order to understand the impact of the economic analysis method used in the choice of the renovation measures, a case study has been analysed using simple payback calculations and life cycle costs analysis. Overall results show that less far-reaching renovation measures are indicated when using the simple payback calculations which may be leading to solutions less cost-effective in a long run perspective.

    Conference NameICEE 2015 | 2nd International Conference on Energy and Environment
    Date Published2015-06-18
    Conference LocationGuimarães, Portugal - 18-19 June, 2015
    KeywordsEnergy Efficiency, energy savings, Life cycle costs
    RightsopenAccess
    Peer reviewedyes
    Statuspublished
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    About CTAC

    The Centre for Territory, Environment and Construction (CTAC) is a research unit of the School of Engineering of University of Minho (UMinho), recognised by the “FCT – Fundação para a Ciência e Tecnologia” (Foundation for Science and Technology), associated to the Department of Civil Engineering (DEC), with whom it shares resources and namely human resources.

    Currently CTAC aggregates 37 researchers holding a PhD of which 27 are faculty professors of the Civil Engineering Department. Read more


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    Centro de Território, Ambiente e Construção
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    Campus de Azurém
    4800-058 Guimarães, Portugal

    Phone: + 351 253 510 200 (517 206)
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