U N I V ERS I T Y O F OS LO TIK FACULTY OF SOCIAL SCIENCES Centre for technology, innovation and culture P.O. BOX 1108 Blindern N-0317 OSLO Norway http://www.tik.uio.no ESST The European Inter-University Association on Society, Science and Technology http://www.esst.uio.no Passive houses in Norway. Andreas Halse University of Oslo/Aalborg University Innovation systems, social and ecological change. 2004-2005 Word count: 18552 Synopsis The paper analyzes the introduction of passive houses in the Norwegian house market. Passive houses are houses with extremely low levels of energy consumption for heating, and have not yet been built in Norway, but have started to enter the market in Germany and some other countries. The construction sector is analyzed as a sectoral innovation system. The different elements of the innovation system are studied. This includes government agencies, producers, consumers, finance and education. The analysis shows that passive and low-energy houses are on the verge of market breakthrough. This can partly be explained by economic calculations, and partly by processes of learning and change in the institutional set-up of the sector. The construction sector is a sector characterized by low innovative intensity and little interaction between different agents. Those working to promote passive houses have to some extent managed to cope with these challenges. This has happened by breaking away from the traditional focus of Norwegian energy efficiency policies on technology and the economically rational agents, by instead focusing on knowledge and institutional change at the level of the producers. Table of contents page 1. Introduction 1 2. The passive house 3 2.1 Origins of the passive house 3 2.2 Definition of a passive house 4 3. Systems of innovation 7 3.1 Defining innovation 7 3.2 Origins and variants of the system of innovation concept 8 3.3 The broad understanding of systems of innovation 9 3.4 The role of institutions in the innovation system 12 3.5 The role of organizations in the innovation system 15 3.6 Knowledge and learning in an innovation system 16 4. Methodology 19 4.1 The construction sector as a sectoral system of innovation. 19 4.2 Selecting the informants. 23 4.2.1 The key informants. 23 4.3 Methods of study 25 4.3.1 Gathering information. 25 4.3.2 On interviews 26 5. The elements of the sectoral system of innovation. 27 5.1 The producer 27 5.1.1 Industry Organizations. 27 5.1.1.1 The Federation of Norwegian Construction Industries. 27 5.1.1.2 The Norwegian Homebuilders Association. 28 5.1.2 The architects. 30 5.1.3 Competence and interest among architects and engineers. 33 5.1.4 The suppliers 35 5.2 Public policy 36 5.2.1 National policies 36 5.2.2 Public agencies 41 5.2.2.1 The Norwegian State Housing Bank (Husbanken) 42 5.2.2.2 The National Office of Building Technology and Administration. 47 5.2.2.3 Enova 47 5.2.3 Laws and regulation 49 5.2.3.1 The building code 49 5.3 Passive houses at research institutions and in higher education. 49 5.3.1 The National Building Research Institute and SINTEF. 49 5.3.2 Schools of architecture 51 5.3.3 Schools of engineering 52 5.4 Private-public partnerships. 55 5.4.1 The EcoBuild program 55 5.5 The commercial banking sector. 56 6. Analysis 59 6.1 Economic analysis 59 6.1.1 Analyzing costs 60 6.1.2 Analyzing value 64 6.2 Analysis of the innovation system 66 6.2.1 Breaking through? 66 6.2.1 Interaction between consumers and producer 68 6.2.2 Interested and knowledgeable producers? 74 6.2.2.1 The construction companies 75 6.2.2.2 Architects and engineers 81 6.2.2.3 Financing the passive house 82 6.3 Summarizing the efforts. 83 7. Conclusion 85 List of figures. page Figure 1. Annual savings in a passive house 62 Figure 2. Years needed for investments to pay off 63 List of references Appendix A – list of interviewees Appendix B – basic interview guide 1. Introduction There is an ever-emerging international consensus that global warming is caused by human activities. The international panel on climate change, IPCC, concludes in their 2001 report that emissions of climate gases due to human activity are changing the global climate. The consequences are increasing temperatures and less stable weather systems. The major culprit of the human-made climate gas emissions is energy consumption. Energy produced by any of the non-renewable resources, be it coal, gas or oil, is followed by emission of large amounts of climate gases. This is valid for energy consumed for transport, industrial production, heating or for the production of electricity. Norwegian energy consumption is increasing. The production and consumption of energy has been continuously rising for a long period of time. Only at a few specific intervals in time can reductions in the consumption of energy be observed. Even though almost 100% of the electricity consumed in Norway is produced by hydroelectric plants, and thereby without emitting climate gases, consumption of electricity is reaching a level where additional growth will have to be covered by traditional non-renewable resources. Growth in energy consumption is not equally distributed among different sectors. Energy consumption in private housing is contributing to an increasing part of the national energy consumption, growing by more than 50% during the last 25 years. Increased use of energy for heating is the main source of this growth. 1 An average Norwegian household consumes more than 22000 kWh a year. 50-60% of this is related to keeping houses at a comfortable temperature. It is obvious that applying measures to reduce this need for energy consumption for heating is of great of environmental interest, and of potential economic interest to the consumer. One of the solutions currently being developed is the passive house. A passive house is defined as a house without a heating system. It is designed and constructed in a manner that makes it possible to maintain satisfactory indoor temperatures even without a heating source. Passive houses are currently being built in several different European countries, both commercially as well as on a more scientific basis. Germany and Austria are so far the two countries where the passive house concept has reached the highest degree of penetration, with more than 4000 houses built. In Norway no commercial passive houses have been built as of date. This fact is of great interest. One should think that in a country like Norway, with its high level of energy consumption and rising energy prices, there would be great interest in building houses with no need of an energy source. This paper tries to analyze why this is not the case at the present time. To do this the paper will look at several different issues, with special regards to questions of economy, knowledge, public regulation, norms and research. This will be done by analyzing the role of the different agents involved in the process of constructing a house, be they customers, architects, engineers, government authorities or other agents that are of interest. 2 All together these agents and the relations between them can be seen as being part of an innovation system, the sectoral system of the building sector. This paper will make use of the concept of innovation systems to analyze how a specific innovation originates and is diffused in the building sector. 2. The passive house. 2.1 The origins of the passive house. The idea of developing the passive house concept originally came from the Swedish professor Bo Adamson. During a study trip to China in the mid-80’s he came across the traditional building techniques in area south of the Yang Tse River. Witnessing these techniques inspired a co-effort with Wolfgang Feist to develop the passive house concept. The first passive houses were constructed in Germany in the early 90’s. The number of passive houses constructed increased throughout the decade, and the Passive House Institute was established during the decade (Feist 2005). The passive house concept seems to enter the Norwegian academic realm around 2000. Dokka, Lien and Myhre all agree they first heard about the concept around the turn of the millennium. Since then the interest in the passive house concept has been continuously increasing, as a part of the increasing interest in low-energy housing. 3 Passive houses and low-energy housing is on the verge of market breakthrough. Currently around 3000 low-energy houses are being developed. Out of these 400-500 are passive houses (Rødsjø 2005, Dokka 2005). 2.2 Definition of a passive house. A passive house is a house that manages to keep comfortable temperatures even through the heating season without making use of a specific heating system. The term passive is used because the main source of heating is the sun and the heat emitted from its inhabitants and household appliances, heat that is passively consumed by the house without use of any special appliances (Schnieders 2003). A passive house is defined as a house with a maximum annual space heat requirement of 15 kWh per square meter (Husbanken 2004). The standard was first developed by Wolfgang Feist, and is now set by the German Passivhaus Institut. The standard is solely defined by space heat consumption, not by any specific requirements set to materials or construction techniques used. Even though the standard is defined by space heat consumption, the passive house concept also implies minimizing energy use by other potential sources of energy consumption in the building. Normally this would include domestic hot water and household appliances. As an example, the target of the CEPHEUS1 project was to keep the total energy requirement in the buildings below 120 kWh per square meter per annum (Schnieders 2003). 1 Cost Efficient Passive Houses as EUropean Standards (CEPHEUS). 4