Building for the Heat: How Terraco’s Exterior Insulation Finishing Systems (EIFS) Can Dramatically Reduce Energy Use in the Middle East and South Asia

Featured on ArchDaily, Terraco, a global leader in Exterior Insulation Finishing Systems, has shown that when planning the renovation of buildings, it is essential to adopt a deep retrofit strategy that includes energy efficient measures like 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 as a direct result of installing Terraco’s combined 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 a proven route to reduce operational energy demand, lower CO₂ emissions, and deliver buildings engineered for extreme climatic conditions.

Bluewater EIFS Terraco Project — Modern residential construction in the UAE demonstrates the need for advanced thermal envelope solutions in hot, arid climates where cooling can account for up to 70% of peak electricity consumption.

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. With urbanisation accelerating and summers becoming hotter and longer, the implications are clear: rising operating costs for building owners and escalating carbon emissions for governments striving to meet net zero targets.

Much of the existing building stock predates robust insulation codes. Older villas, mid rise developments, and commercial buildings with large areas 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 efficiency intervention.

Thermal imaging showing heat gain in uninsulated façade — Thermal imaging reveals heat gain patterns in uninsulated buildings. A continuous thermal envelope reduces cooling loads.

Independent Studies: Quantifying the Savings

Terraco commissioned Greenplan Consultants to assess the impact of façade and roof thermal insulation systems in Middle East and Asia climates. According to Dr. Kenny Allen, Director at Greenplan Consultants: “Our findings underline 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 façade of the modelled buildings achieved up to 47% overall energy savings.”

Three representative cases were analysed using DesignBuilder Building Energy Modelling.

Case Study 1 – Abu Dhabi (Retrofit, Hot Dry Climate)

EIFS reduced annual cooling energy demand by 31%.
Adding roof insulation delivered an additional 16% reduction.
Combined total energy saving: 47%.

Case Study 2 – New Delhi (Retrofit, Hot Humid Climate)

EIFS achieved 31% energy savings.
EIFS plus roof insulation: 46% energy savings.
Annual carbon reductions exceeded 23 tonnes CO₂e.

Case Study 3 – Dubai (New Build, Hot Dry Climate)

Compared Terraco EIFS vs AAC block wall options approved under Dubai Building Code Part E.
EIFS complied fully and performed best in the study.
AAC block walls with enhanced glazing showed 5–6% higher building energy use than EIFS, in part due to thermal bridges at columns and beams.

EIFS eliminates thermal bridging risk by wrapping the entire structure in continuous insulation, without breaks.

Terraco EIFS Perma Installation on Facades — EIFS installation showing the application of continuous mineral wool insulation boards creating a seamless thermal envelope around the entire structure, eliminating weak spots and thermal bridges that compromise energy efficiency.

Why EIFS Works in Extreme Climates

EIFS is a continuous thermal envelope. Terraco systems combine insulation boards, reinforced basecoats, and long lasting decorative finishes.

Reduced cooling loads: lower U values for walls and roofs reduce HVAC demand. Savings up to 47% in the studies.
Lower plant costs: smaller, more efficient cooling systems can be installed.
No thermal bridges: beams and columns are fully wrapped.
Durable finishes: proven from sub zero winters to Gulf summers above 50°C.
Design flexibility: finishes include Terracoat textured coatings and Terralite stone effects.

The Bigger Picture: Sustainability and ROI

Envelope upgrades are a strategic sustainability measure that directly support Green Building standards and ESG objectives. Data from the Greenplan study indicates wall and roof insulation retrofits can achieve payback within seven years, with continued operational savings over the building’s life.

Trilogy Apartments exterior finished with Terraco systems — Trilogy Apartments, Pretoria: Terraco EIFS Alpha across 14,000 m² and Terracoat Sleek across 25,000 m².

Conclusion

In extreme climates, the exterior of a building is not only a design feature. It is the primary line of defence against excessive energy consumption. Independent modelling confirms that deep retrofit strategies that include insulating external walls and roofs can deliver annual savings up to 47% compared with pre retrofit energy consumption. In new build scenarios, Terraco EIFS can match or outperform common insulated façade alternatives while controlling thermal bridges.