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Construction and renovation policies and measures

4.2 Finland regulatory framework

4.2.4 Construction and renovation policies and measures

Finland’s energy efficiency in buildings is strictly regulated and controlled. It constantly reviews, monitors and evaluates the functionality of its energy efficiency regulation of buildings to ensure

Energy Efficiency of Buildings in Conjunction with Repair and Modification Works. See, ym.fi/enUS/ Section The National Building Code Of Finland, Energy efficiency.

367 iea.org Section Policies and Measures-Energy Efficiency-Finland.

368Smith et al. Ecologic Institute – eclareon 2014.

369 tem.fi/en/energy-efficiency. Section Energy efficiency.

370 tem.fi/en/energy-efficiency. Section Energy efficiency.

371Smith et al. Ecologic Institute – eclareon 2014.

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that the need of the changing operating environment are met.372 In the construction and renovation, the Land Use and Building Act and the Ministry of Environment decrees forms an important part of the National Building Code of Finland which systematically improves the energy efficiency of buildings.373The Ministry of Environment Decree (4/13)374 was introduced in 2013 to promote energy efficiency renovations and improve the energy performance of buildings undergoing renovation or alteration.375 Under this regulation it is obligatory for property owners to “improve the energy performance of buildings under renovations and when changes are introduced that require a permit.”376 This is also extended to the changes on the intended use of a building and when there is considerable technical systems changes.377

Most significantly the Buildings Regulation introduced the “cost-optimal levels of minimum energy performance requirements for renovations.”378 The regulation gives property owners the discretion to decide how extensively can they “renovate their properties and what the best ways are to improve energy performance within the regulations and in accordance with the principles of systematic property management in each case.”379 In order to ensure cost effective renovation, the regulation allows the national requirements for improving the energy performance of buildings to be waived on a case-by-case basis in connection with renovations and changes, if achieving the required standards is not technically, functionally or economically viable.380

The construction and renovation policies and measures ensure that energy efficiency improvements are attained through regulatory, technological innovations, investments and high-quality engineering, that support the common goals. The orders for energy efficiency in new buildings (2012), decree on improving the energy performance of buildings undergoing renovation

372 ym.fi/en-US Section Land Use and Building Act.

373 ym.fi/en-US Section Legislation on the energy efficiency of buildings.

374 iea.org Section Policies and Measures-Energy Efficiency-Finland.

375 iea.org Section Policies and Measures-Energy Efficiency-Finland.

376 Finnish Ministry of Environment. Notification TEM/2626/03.02.02/2013.

377 Finnish Ministry of Environment. Notification TEM/2626/03.02.02/2013.

378 Finnish Ministry of Environment. Notification pursuant to Article 4 of the Energy Efficiency Directive. 2014.

379 Finnish Ministry of Environment. Notification TEM/2626/03.02.02/2013.

380 Finnish Ministry of Environment. Notification TEM/2626/03.02.02/2013.

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(Decree 4/13), subsidies for energy efficiency improvements and promotion of heat pumps in small buildings, Energy Efficiency Agreement of the Property and Building Sector are key legislations promoting energy efficiency in building renovations. Finland regulation provisions allow the waiving of measures to enable the testing of breakthrough technologies.381 In promoting zero-energy construction technologies, these legislations address buildings thermal insulation, zero- energy-efficient building services installations and window technology.382

On public buildings renovation pursuant to Article 5(6) of the EED, Finland adopted an ambitious alternative path.383 The alternative approach has an annual coverage of about 10% of central government buildings compared to the 3% stipulated under Article 5(6) of the EED. Finland’s energy savings in recent years have been on average 30% above384 the 3% renovation-based target set in Article 5.385 Besides monitoring renovations, Finland monitors separately the energy

“efficiency agreement on local governments and the associated energy programmes including local government energy audits” and these measures will bring 3.8% energy saving from the local government while 18% savings will come from the central government by 2020.”386 Alongside the public sector, energy audits in private sector is projected to bring 2.5% energy savings by 2020.387 Energy efficiency is further promoted by procurement legislation in Finland through public bodies in a number of ways. Cleantech procurement advice service388 and the eco-procurement network389 are key players set to offer consultancy service, promote sustainable purchases, energy efficiency information distribution and cooperation between public bodies pursuant of Article 6 EED.

Compliance in public procurement obligations in Finland has been estimated to be over 81% in

381 Finnish Ministry of Environment. Notification TEM/2626/03.02.02/2013.

382 vttresearch.com Section Improving Energy Efficiency Is Revolutionizing Building in Finland.

383 Notification TEM/2626/03.02.02/2013.

384 NEEAP-3 of Finland.

385 Notification TEM/2626/03.02.02/2013.

386 NEEAP-3 of Finland.

387 NEEAP-3 of Finland.

388 motivanhankintapalvelu.fi Section ekohankintaverkosto

389 motivanhankintapalvelu.fi Section ekohankintaverkosto

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“large local governments and 58% in small local governments” in 2012 compared to 44% and 33%

respectively in 2008.390

4.2.5 Metering and billing

Finland has Finnish Act on energy efficiency services (1211/2009) and the Government Decree (66/2009) to address the metering and billing provisions pursuant to Articles 9-11 EED establishing requirements for the provision of meters to consumers.391 Some provisions were revised to meet the EED requirements leading to more than “95% of meters provided to all electricity usage points” and more than “80% remote reading coverage of district heating customers.”392 These provisions are further strengthened by a decree of the Finnish Ministry of the Environment on the energy performance of new buildings that ensures the provision of smart meters.393 As one of the first EU Member States to roll out smart metering in electricity usage, Finland achieved a full roll-out at the end of 2013 bringing considerable compliance with the EED.394 The Finnish Act on energy efficiency services (1211/2009) as incorporated into the Finnish Energy Efficiency Act further ensures that consumption data is provided to customers pursuant to Articles 10 and 11 of the EED. This has further increased the uptake of energy efficiency measures both in private and public sectors.395