Terraco, a global leader in Exterior Insulation Finishing Systems, has demonstrated through independent studies that when planning building renovations, it is essential to adopt a deep retrofit strategy that includes energy-efficient measures, such as thermal insulation of external walls and roofs.
The studies show that cooling energy use in buildings can be reduced by up to 47% annually in Middle Eastern and South Asian climates, directly as a result of installing the combined Terraco EIFS and Roof Insulation Finishing Systems, compared to leaving external walls and roofs uninsulated.
Backed by advanced simulation data and analysis from Greenplan Consultants, these internationally certified, energy-efficient insulation finishing systems provide architects, consultants, and developers with a proven route to reduce operational energy demand, lower CO₂ emissions, and deliver buildings engineered for extreme climatic conditions.
The Problem: Cooling Dominates Energy Use
Cooling is the defining energy challenge in the region. In Gulf buildings, it can account for as much as 70% of annual peak electricity consumption, according to international studies.
With urbanization accelerating and summers becoming increasingly hotter and longer, the implications are two-fold:
- Rising operating costs for building owners
- Escalating carbon emissions for governments striving to meet net-zero targets
Compounding the issue, much of the existing building stock predates the introduction of robust insulation codes. Older villas, mid-rise developments and commercial buildings—characterised by a high proportion of uninsulated external walls and roofs—are inherently energy inefficient in hot, dry and humid climates. For these buildings, deep retrofit insulation remains the most direct and cost-effective energy efficiency intervention.
Independent Studies: Quantifying the Savings
To assess the impact of facade and roof thermal insulation systems in buildings in the Middle East and Asia, Terraco commissioned Greenplan Consultants due to their expertise in building performance analysis. Dr. Kenny Allen, Director of Greenplan Consultants, highlighted that:
Our findings underline just how important the building envelope is as the first line of defence for energy efficiency. The addition of Terraco's Insulation Systems to the roof and facade of the modelled buildings (typical existing UAE concrete construction with 400–450 m² floor area) achieved up to 47% overall energy savings, a testament to how Terraco's Insulation Systems can result in significant reductions in annual cooling energy consumption in hot climates.
Three representative cases were analysed using the Building Energy Modelling (BEM) software, DesignBuilder.
Case Study 1: Abu Dhabi (Retrofit – Hot Dry Climate)
- Retrofitting a detached villa with the Terraco Exterior Insulation Finishing System (EIFS) reduced annual cooling energy demand by 31%.
- Adding roof insulation further reduced energy demand by an additional 16%, leading to a combined total energy saving of 47%, with proportional CO₂ reductions.
Case Study 2: New Delhi (Retrofit – Hot Humid Climate)
- A comparable villa achieved 31% energy savings with Terraco EIFS, and 46% when roof insulation was added.
- Annual carbon reductions exceeded 23 tons of CO₂e.
Case Study 3: Dubai (New Build – Hot Dry Climate)
- Two external wall thermal insulation systems were analysed: Terraco EIFS and AAC block, both approved under the Dubai Building Code – Part E: Building Envelope.
- Model 1: Terraco EIFS performs exceptionally well and complies fully with the Dubai Building Code.
- Model 2: AAC block walls* (with enhanced glazing) perform worse in the study, showing 5–6% higher building energy use compared to Model 1 (Terraco EIFS).
*The AAC wall was modelled as a typical infill thermal block wall built between uninsulated concrete columns and beams. These account for approximately 17% of the external wall area and create thermal bridges.
The more efficient option is EIFS, which eliminates the risk of thermal bridging by wrapping the entire structure in continuous insulation without breaks.
These results align with published research in the region, which identifies envelope upgrades and thermal bridge control as primary levers for reducing cooling demand.
Why EIFS Works in Extreme Climates
EIFS is, in essence, a continuous thermal envelope. Terraco systems combine insulation boards—typically Mineral Wool (Terraco EIFS Perma) or EPS/G-EPS (Terraco EIFS Alpha)—with reinforced basecoats and long-lasting decorative finishes.
For hot climates, the advantages are clear:
- Reduced cooling loads: Lower U-values for walls and roofs directly translate to smaller, more efficient HVAC systems, resulting in energy savings of up to 47%.
- Reduced cooling plant costs: With reduced cooling energy demand, a smaller, more cost-effective HVAC system can be installed.
- Elimination of thermal bridges: Beams and columns are fully insulated and wrapped, eliminating weak spots in the thermal envelope.
- Durability under extremes: The exterior finishes used in Terraco EIFS systems have been tested across diverse conditions—from the sub-zero winters of Northern Europe to Gulf summers exceeding 50°C.
- Design flexibility: Facade finishes range from textured coatings (Terracoat) to stone finishes (Terralite), ensuring performance improvements without compromising design intent.
The Bigger Picture: Sustainability and ROI
Envelope upgrades are no longer merely a technical fix—they represent a strategic sustainability measure. By reducing cooling demand, EIFS directly cuts CO₂ emissions, supporting Green Building standards and Environmental, Social and Governance (ESG) objectives across the region.
From a financial perspective, data from the Greenplan study indicates that wall and roof insulation retrofits can achieve payback within seven years. Beyond this point, operational savings continue throughout the building's lifespan, enhancing asset value and resilience against rising energy tariffs.
Conclusion
Independent modelling confirms that when a deep retrofit strategy is incorporated into renovation projects, it is critical to insulate external walls and roofs to ensure long-term energy performance and sustainability. In the study, this approach delivered annual energy savings of up to 47% compared with pre-retrofit energy consumption.
Regarding the renovation of external walls, modelling shows that Terraco EIFS can match—and in some cases outperform—common insulated facade alternatives in new-build scenarios.
The construction sectors of the Middle East and South Asia face a choice: continue with building renovation practices of the past, or future-proof projects by adopting external wall and roof thermal insulation as a first-line strategy for improving energy efficiency.
