Task Group EnergyThe year 2012 saw an ambitious investment program in converting heat plants from coal to natural gas. This has helped to improve Urumqi’s air quality but has led to significant government subsidies for natural gas from Turkmenistan at a price of more than 180 million € in government subsidies annually since the residents pay only one third of the true cost. In a letter to the Vice-Mayor of Urumqi Li Hongbin we suggest to convert a part of these subsidies and to invest them for the construction of buildings that are more energy efficient than the current legal standard (i.e. the 65% energy savings standard for new buildings and 50% for retrofit of existing buildings). Beyond energy, environmental, and economic benefits, this will also lower the dependence from natural gas imports.
We calculate, for example, that over 25 years a 100 m2 apartment in passive house standard (95% energy savings standard) will save government subsidies of about 71,900 RMB (9,000 €). This represents about 36% of the basis construction costs estimated at 200,000 RMB (25,000 €). This money could be used to pay for part of the additional costs that are needed for higher quality construction. For example for the 100 m2 apartment windows that fulfill passive house criteria currently cost about 20,000 RMB (2,500 €), the remaining 51,900 RMB (6.500 €) could be used for other components.
The City of Urumqi is now considering lowering the heat price subsidies, using the savings to pay for the higher costs of energy-efficient buildings.
Download subsidy plan for energy efficient buildings
The year 2012 saw an ambitious investment program in converting heat plants from coal to natural gas. This has helped to improve Urumqi’s air quality but has led to significant government subsidies for natural gas from Turkmenistan at a price of more than 180 million € in government subsidies annually since the residents pay only one third of the true cost. In a letter to the Vice-Mayor of Urumqi Li Hongbin we suggest to convert a part of these subsidies and to invest them for the construction of buildings that are more energy efficient than the current legal standard (i.e. the 65% energy savings standard for new buildings and 50% for retrofit of existing buildings). Beyond energy, environmental, and economic benefits, this will also lower the dependence from natural gas imports.
We calculate, for example, that over 25 years a 100 m2 apartment in passive house standard (95% energy savings standard) will save government subsidies of about 71,900 RMB (9,000 €). This represents about 36% of the basis construction costs estimated at 200,000 RMB (25,000 €). This money could be used to pay for part of the additional costs that are needed for higher quality construction. For example for the 100 m2 apartment windows that fulfill passive house criteria currently cost about 20,000 RMB (2,500 €), the remaining 51,900 RMB (6.500 €) could be used for other components.
The City of Urumqi is now considering lowering the heat price subsidies, using the savings to pay for the higher costs of energy-efficient buildings.
