The virtue of ambition
The most environmentally friendly and cheapest energy is that which is not consumed in the first place,” says Thomas Damm, Technical Manager, Sector Department, Air Conditioning and Ventilation Technology, VDMA. This, he says, is why energy efficiency is viewed as key to unlocking the country’s objectives, namely Climate Action Programme’s 2020 interim target of a 40% reduction in greenhouse gas emissions compared to 1990 levels, as well as those under the German National Action Plan on Energy Efficiency (NAPE).
With the building sector accounting for 40% of final energy consumption in Germany, and around one-third of greenhouse gas emissions, Damm says, the sector plays a key role in the country’s comprehensive energy and climate policies. “To this end, the German government has set itself the ambitious goal of achieving an almost climate-neutral building stock by 2050,” he says. “This means that primary energy requirements will be reduced by 80%, compared with 2008.” To achieve this, Damm says, the energy requirement for heating and cooling, as well as for ventilation technology, must be significantly reduced through efficiency measures and the share of renewable energies, in meeting the remaining demand, significantly increased.
With European and national laws impacting air conditioning and ventilation technology, Damm says the challenge for politics and the industry is to decouple CO2 emissions from economic growth. “In Germany, in addition to the Renewable Energy Sources Act (EEG), the German Energy Saving Ordinance (EnEV) is primarily relevant,” he says. “The latter implements Energy Performance of Buildings Directive (EPBD) nationally and defines energy requirements for buildings and the technical building systems and installations contained therein. In addition to air conditioning and ventilation technology, this includes heating technology.”
Citing the September 2018 prohibition of the marketing of high-voltage halogen lamps in the European Union (EU) as an example of the continuous impact political programmes have on technologies’ market viability, Damm highlights the political will in the EU to steer markets toward its environmental agenda. Jens Schuberth, Umweltbundesamt (UBA; The Germany Environment Agency), believes German HVAC manufacturers are
on track when it comes to complying with regulations, due to the time afforded to them prior to the implementation, based on observing new product lines, with features reflecting the new requirements.
Forces driving manufacturers’ compliance
While Schuberth says market compliance is also reflective of Germany’s recognition of EU directives as a member state, Damm adds that voluntary adoption can also be attributed to system operators’ move to cut operating costs. “The continuous increase in the number of central ventilation and air-conditioning units equipped with heat-recovery measures, shows that this can also be done without bans,” Damm says. “Numerous factors can be decisive here — rising energy costs, certification systems for buildings user requirements or financial support measures by the public sector and/or state financial institutions.” Ultimately, Damm says, it is a mixture of instruments, constraints and incentives from stakeholders.
David Miller, Managing Director, Ziehl-Abegg Middle East, provides a manufacturer’s perspective, saying that while, admittedly, the move towards energy-efficient solutions is influenced by political pressure, many customers are also seeing the advantages of investing in such technologies with an eye towards operational savings. “When it comes to design, people are changing their ways,” he says, “which is positive in our point of view.”
Markus-Erich Strohmeier, Senior Executive Vice President, Siemens Building Technologies – Middle East, echoes the need to comply with customer requirements. “When considering cost, we believe it’s important to take into account the lifecycle of the technology and the impact it will have on the efficiency, availability, reliability and operating costs of a customer’s infrastructure during that time,” he says. “Ultimately, we want to ensure that our customers have all the data they need to make an informed choice regarding a product or supplier.”
Bissan Abbas, Managing Director, Techem Energy Services Middle East FZCO, adds that the growing attractiveness of energy-efficient solutions over conventional systems is also driven by rising costs in bigger cities over the years and that compliance with regulations has encouraged stakeholders to thoroughly study ROI to reach a break-even point.
The need for more stringent market surveillance and enhanced efforts towards IAQ
Overall, Damm says that manufacturers view regulations as positive tools for market transformation, towards more efficient products and systems. “It has also been shown in the past that German companies, in particular, with their highly developed products, manufactured with very good quality, have a market advantage — albeit limited in time — over competitors from outside the EU.” This advantage, he stresses, would be even higher if the market surveillance stipulated by the European legislator and given to the EU member states for implementation is carried out.
“However, the system is unfortunately weak and also makes market access possible for products that do not comply with EU law,” Damm says.
Schuberth echoes this, adding that despite energy efficiency inspections on air conditioners having been introduced in Germany as early as 2007, as part of the EU [Energy Performance of Buildings] Directive requirement, this has not been carried out to the extent necessary or expected. The inspections, Schuberth stresses, aimed to identify areas of improvement for building owners, in order to present them with the most economically attractive solution. “Three years ago, Germany started to register all inspections,” he says. “Only one-tenth of the inspections that people expected were carried out. So, there is quite a lack of surveillance and this is a great potential to improve air conditioning and ventilation.”
Another potential area of improvement that Damm believes requires greater attention is IAQ, which, he says, merits the same enthusiasm afforded to energy efficiency. “It is well known and proven that good IAQ is profitable in many ways,” he says, pointing to the indoor comfort in offices, shopping centres and schools, “but currently there are no legal requirements yet related to IAQ in residential and non-residential sectors.
What is there are recommendations from the WHO and the Federal Environment Agency in Germany. However, these are merely recommendations, compliance with which is not mandatory.” Damm says that this is incomprehensible, given that people spend most of their time inside buildings, arguing that much has already been said about the importance of energy efficiency.
Damm stresses that it is important that IAQ and energy efficiency are not considered separately or played off against each other. “The filter industry shows and proves it,” he says. “High-quality air filters enable a higher IAQ, with comparable or lower lifecycle costs over the service life of the filters. And this also applies to higher acquisition costs compared to lower-quality air filters. Improving the efficiency of air filters can help to ensure that IAQ does not remain a stepchild.”
Germany is not sitting on its laurels, as new regulations are underway that could potentially address these gaps. Damm says manufacturers and users are eagerly awaiting the new revision and redesign of legislation for buildings and technical installations, which has been announced by politicians for some time. “Specifically, the existing national legal provisions of the Energy Saving Act (EnEG), the Energy Saving Ordinance (EnEV) and the Renewable Energies Heat Act (EEWärmeG) are to be combined into a new regulation,” he says. “This awaited regulation is called the German Energy Act for Buildings (GEG).”
Schuberth says the lack of market surveillance and inspections could be addressed by the new regulations, recommending more effective controls over the energy performance certificates of the buildings. “There is the idea to have information in the building certificate of existing air conditioners that had to be inspected,” he says. “If the energy performance certificate were to be controlled, they could ask for inspection of air conditioners. It’s quite an indirect way that we hope could have some effect.”
Schuberth says that, additionally, gaps in market surveillance could be addressed by making air conditioners smarter, through the integration of monitoring equipment that detect operational efficiency and report to building owners in the event there are deficiencies. While promising, Schuberth says, this would be mainly applicable to new air conditioners.
Industry 4.0: The inevitability of the Internet of Things
With this recommendation, Schuberth touches on another observable trend in Germany: digitalisation. Citing “Industry 4.0” as the buzzword for 2018 in Germany and Europe, Damm says the advancing digitalisation in production and enhanced communication of devices offers new possibilities towards greater efficiency.
Miller shares a similar observation, reporting that customers are demanding more from their products. “The buzz word is cyber-physical systems,” he says. “Everything speaking to each other and manufacturers offering a lot more feedback that we did in the past.” Miller says this has prompted Ziehl-Abegg to work towards having the capability to connect networks to physical devices, such as sensor fans, frequency inverters and motors, to monitor health and efficiency. “This is an exciting time for us in terms of innovation dictated by our customers and this shift towards energy savings,” he says.
Strohmeier highlights how digitalisation is changing “the way we plan, design, build and operate infrastructure”. He says, “We see technologies, such as augmented reality and virtual reality increasing efficiency over the whole lifecycle of a building. Remote access, maintenance and servicing is gaining increasing relevance, and indoor positioning technology also has the potential to revolutionise the way we manage our infrastructure.”
Strohmeier stresses that Building Information Modeling (BIM) is a key topic that will have significant impact on the HVACR market.
Damm describes BIM as a developing tool for the optimised execution of construction projects. “BIM can and should consider all phases,” he says, “In the best case, BIM accompanies a building or plant from the first stroke of a pen to its demolition.” Damm stresses that through BIM, planning can be done in a cost-effective way to avoid typical building hazards and problems, such as, for example collisions of ducts and tubes, which can be identified early on in the design phase, and addressed by developing and implementing the most suitable solution. He adds that BIM also helps data management to optimise operation and maintenance. “Functioning BIM projects, which are kept up-to-date over the entire period of time, can prevent losses of important information, such as design calculations, design and construction plans or product documentation,” he says. “BIM is a growing system into which all participants must contribute. Anyone who deals with BIM and its possibilities will recognise the opportunities and risks.”
Rolf Werner, Director Application Engineering, Wieland, weighs in, saying that he believes that Germany is, in fact, lagging behind other countries in terms of automation, especially when it comes to BIM. However, Werner commends the platform’s ability to supply necessary data for an integrated process.
Enablers of energy efficiency
While the country still has some way to go, Damm says German companies’ commitment to sustainability has helped paved the way for manufacturers to be technological leaders, globally. “The applicable regulations and their enforcement in the market have a major influence on the use of sustainable technology outside the EU,” he says. “It is clear to see that numerous states in the Middle East are using ordinances and technical regulations as basis for buildings and technical building systems to become increasingly more efficient.”
To underscore his point, Damm says that in the first half of 2018, North Africa and the Middle East accounted for approximately three per cent of air-handling technologies’ total exports. Damm adds that sales of the German air conditioning, ventilation and refrigeration technology industry are expected to grow by a total of five per cent in 2018. Calling German manufacturers, “enablers” in the sector, Damm says, it is only a matter of time before the efficiency wave also reaches farther regions of the world.
An uncompromising stance
Italy’s relentless compliance with the European Union’s broader environmental targets is in the process of reshaping the HVACR sector in the country, with Andrea Guderzo, General Manager, Clivet Mideast FZCO, emphasising that the decarbonisation of the EU has created a new set of challenges and opportunities for the market in the country, as well as in the rest of Europe.
In agreement was Salah Eldeeb, AREA Export and Sales Manager, Castel, who says that there has been increasing demand for products that can accommodate new refrigerants with lower GWP in view of the F-Gas Regulation. “Everybody is focusing on these new regulations,” he says. “Within 2020, all HCFCs will be abandoned completely, so new projects and productions are going in with the new refrigerants.” Guderzo adds that the regulation has also led to a significant increase in the price of refrigerants and that those containing CFCs have already been withdrawn from circulation. “Today’s refrigerants may no longer be comparable with these, but their potential for harm cannot be ignored,” he says, emphasising that it is necessary to undertake step-by-step phase-down in refrigerants with a high-GWP.
Francesco Mastrapasqua, Marketing Manager, Refrigeration Systems, Epta, adds that the huge increase in price and the dramatic cut in the availability in the market, owing to F-Gas Regulation, has made every stakeholder consider very carefully the refrigerant for future applications. The market conditions created by these regulations, Guderzo says, has been driving innovation among HVACR manufacturers in Italy. As a temporary solution, he says, a number of producers are delivering units addressed to non-EU countries without refrigerants to cut down costs, which, he says, merely postpones the problem. However, Guderzo stresses that most producers are taking a more long-term approach by investing significantly in R&D to adopt new refrigerants, especially R-32, for small capacity units, which, he says is the same direction Clivet is taking. “Our company is facing the refrigerant challenge with great research and development work,” Guderzo says. “The first step is to adopt R32 refrigerant for units with inverter and scroll compressor for the medium- and low-capacity units. In the meantime, a joint task force involving the R&D units of Clivet and Midea, is developing new solutions using R1234ze refrigerant for high-capacity chillers. We are also studying to decrease overall the maximum quantity of refrigerant and the use of other low-GWP gases, especially for the medium-capacity chillers.”
The paradigm shift is especially palpable in the refrigeration sector, where Mastrapasqua says, natural refrigerants are being viewed as key to futureproofing equipment. “The refrigeration market in Italy is placing maximum importance on natural refrigeration solutions,” he says, adding that the company has, thus, ensured its scope of products offers a large variety of natural solutions. “The main technological trend and development have been for small-capacity systems; self-contained product adoption based on hydrocarbons, namely propane; and larger systems, which tend to be based on C02 for direct expansion market in Italy.” There has been strong determination in the market to adopt to this trend, he adds, as they are in accordance with F-Gas Regulation and Eco-Design Regulation. Mirko Travaglin, Marketing Manager Refrigeration – EMEA Region, Carel, seconds this, saying that in Europe, the use of natural refrigerants has mainly been implemented with trans-critical CO2 systems, which has, today, become a standard solution.
Bottlenecks in adoption: training
While the adoption of manufacturers is undeniable, Mastrapasqua says the main bottleneck for more widespread adoption is related to availability of skilled personnel that can ensure the performance and facilitate in the installation, commissioning and overall service of products with natural refrigerants. “There is still a need for training,” he says. “Despite all activities in place, the industry is still not coping with the demand. Still, competence and specific training is somehow a barrier in the adoption.”
Mastrapasqua says the industry, as a whole, has to work together to remedy this, in two aspects. “Aftersales service is one side,” he said. “On the other side is the need to provide simplified technology in our systems to fight against the very complexity of natural systems and provide the market with a product that eliminates all concerns.” Secondly, Mastrapasqua says the industry must take a more proactive stance towards training. Epta has made a move in this regard, with the recent inauguration of the Training Center for Refrigeration Experts, in Italy, which, the company says, is the only professional school in Italy to train future refrigeration technicians according to UNI EN 13313 and the first school in Europe, where a small store has been set up with trans-critical CO2 technology, made available by Epta. Costing over EUR 500,000 of investments and donations, the Training Center, the company says, was set up by the professional institute, ASLAM, together with the Assocold and Assofrigoristi associations, to address growing need for skilled expert to manage new natural refrigerants, which are the solutions of the future.
On the inauguration, Marco Nocivelli, Chairman and CEO of Epta and Chairman of Assocold, says: “Italy boasts a wealth of technical expertise in refrigeration and climate control. Passing that expertise on to young people will make a positive contribution towards increasing the success of the national system as a whole. The creation of the Institute bears tangible witness to our social commitment and our faith in the younger generations. It will allow them to achieve preparation of a high standard for a profession, which is increasingly in demand. The training is geared towards the future and will allow young people to become successful expert technicians that can provide effective responses to the challenges posed by constant technological progress, and by European and international regulations.”
Eldeep echoes the importance of proper training, saying that Castel, as an OEM provider, with 75% of its products compatible for refrigeration and only 25% going to air conditioning segment, is taking on a consultancy role to companies and providing assistance to develop products according to regulations. “We conduct a lot of seminars because of this, not only with the manufacturers but also with installers and maintenance,” he says. This, he says, has been especially vital, owing to the number of retrofits related to refrigerants. “In Italy,” he says, “new products and machines are going towards new refrigerants, but people have to know how they work. That is our role. We have to help them understand how it works and the difference between all the refrigerants for new technology and old technology.”
The need for skilled workforce, Matrapasqua says, is thoroughly recognised by the government, which has implemented a more stringent enforcement scheme for refrigerant management. “In Italy, we had the adoption of a new law, entering into force January of this year for the training and certification of equipment providers and refrigerant installation companies,” he says. “Contractors and services companies have to be certified to be allowed to perform any activity related to the refrigeration system. This is not new for our market in Italy. For several years, we have this requirement of certification; only, the process of training and certification is more strict, structured and more reinforced than ever before.”
The same law, Matrapasqua says, states that any official information related to operations performed on an F-Gas System will be downloaded in the country’s main database. “Whatever you do on an F-Gas system, whether you charge, adjust or check leakage of refrigeration, the details must be properly transmitted to the national database for a better control of these F-Gas refrigerants,” he says. “Laws and regulations on F-gas are more and more strict to ensure perfect control. If you choose natural refrigerants, there are less obligations and controls, so there is very strong discrimination in Italy. Of course, this drives the market to choose much easier refrigerants than F-Gas.”
Mastrapasqua believes that the narrative surrounding refrigerants in Europe is only the beginning of a trend that is already going global. “We believe the market is going to accept, more and more, natural refrigeration and CO2 systems, because they are the only sustainable solution for the future,” he says, with F-Gas, in Europe, and Kigali amendment, worldwide, driving forces in this direction.
Travaglin offers an example, as Carel, taking the key learnings from operations in Europe has released EmJ (Electronic Modulate Ejector) as the latest solution to allow trans-critical CO2 systems to work even in high-temperature climates. “In the Middle East,” he says, “close cooperation between Carel and the main OEMs in the region has created the opportunity to develop the first C02 supermarket, an UNIDO project in Amman, and a new supermarket in Masdar city in Abu Dhabi.”
Mastrapasqua says the industry is working towards making the system available and applicable globally. There will be a natural progression, more or less, everywhere in the world, he says. “Of course, at different times,” he admits, “but sooner or later, this is going to be accepted as the only solution.”