Energy Renovation versus Demolition and Construction of a New Building—A Comparative Analysis of a Swedish Multi-Family Building

Abstract

This study addresses the life cycle costs (LCC) of energy renovation, and the demolition and construction of a new building. A comparison is made between LCC optimal energy renovations of four different building types with thermal performance, representing Swedish constructions from the 1940s, 1950s, 1960s, and 1970s, as well as the demolition of the building and construction of a new building that complies with the Swedish building code. A Swedish multi-family building from the 1960s is used as a reference building. LCC optimal energy renovations are identified with energy saving targets ranging between 10% and 70%, in addition to the lowest possible life cycle cost. The analyses show that an ambitious energy renovation is not cost-optimal in any of the studied buildings, if achieving the lowest LCC is the objective function. The cost of the demolition and construction of a new building is higher compared to energy renovation to the same energy performance. The higher rent in new buildings does not compensate for the higher cost of new construction. A more ambitious renovation is required in buildings that have a shape factor with a high internal volume to heated floor area ratio.