Periodic Reporting for period 3 - HousEEnvest (Energy Efficiency Investments in multifamily houses)
Reporting period: 2021-03-01 to 2022-05-31
HousEEnvest project, is the result of two years of work between key institutions of Extremadura region from energy, economic and building sectors, combined with international resources coming from IEB and EU cooperation programmes.
Market analyses developed has identified that the number of financial products destined to the homeowners and, escpecially, to their associations for energy rehabilitation of buildings is almost non-existent. Financial institutions that had some financial product for this type of users were barely identified, and the existing products had the following main characteristics: reduced repayment term and high interest rates between others.
In addition, there are other reasons why there is no greater demand for rehabilitation works as the lack of permanent incentives from public administrations and citizens' lack of knowledge about the economic savings they provide. It should also be note the great management costs of this type of works for the promoters.
This, together with other technical, legal and economic barriers prevent the development of investment in renovation sector.
The analysis of the Extremadura’s building stock provides that the 60% of the buildings, have an average age of over 40 years, which means that they were not built under criteria of energy efficiency since it is not until 1979, with the entry into force of the norm NBE-CT 79, when buildings were to be built under isolation criteria.
Due to the clear need for action in the Extremadura's building stock along with the market failures, HousEEnvest project arises. Composed by a consortium of 9 national partners in which all the key agents of the building energy rehabilitation sector are represented, aims at overcoming existing barriers in the energy rehabilitation market of residential buildings.
For this, a Portfolio Guarantee Fund was proposed and developed. This fund was defined for the integral energy renovation of multifamily buildings and single-familiy houses in Extremadura, which has a combination of innovative tools for standardization, pooling, bundling and de-risking which gives security to financial institutions and homeowners and their associations.
HousEEnvest focuses on a regional market and aims to mobilize investments amounting to more than 27 million euros in Extremadura.
The project address several fundamental challenges to overcome market barriers by developing a series of integrated services.
HousEEnvest creates the entire management structure of the Instrument to mobilize private funds backed by the European Structural Investment Funds (ESI Funds). It has been working between 2018 and 2022 and has ensured that the ERDF funds allocated to the guarantee product are properly implemented. After the HousEEnvest project lifetime, partners have agreed to continue with the core activities of the project.
Market analyses developed has identified that the number of financial products destined to the homeowners and, escpecially, to their associations for energy rehabilitation of buildings is almost non-existent. Financial institutions that had some financial product for this type of users were barely identified, and the existing products had the following main characteristics: reduced repayment term and high interest rates between others.
In addition, there are other reasons why there is no greater demand for rehabilitation works as the lack of permanent incentives from public administrations and citizens' lack of knowledge about the economic savings they provide. It should also be note the great management costs of this type of works for the promoters.
This, together with other technical, legal and economic barriers prevent the development of investment in renovation sector.
The analysis of the Extremadura’s building stock provides that the 60% of the buildings, have an average age of over 40 years, which means that they were not built under criteria of energy efficiency since it is not until 1979, with the entry into force of the norm NBE-CT 79, when buildings were to be built under isolation criteria.
Due to the clear need for action in the Extremadura's building stock along with the market failures, HousEEnvest project arises. Composed by a consortium of 9 national partners in which all the key agents of the building energy rehabilitation sector are represented, aims at overcoming existing barriers in the energy rehabilitation market of residential buildings.
For this, a Portfolio Guarantee Fund was proposed and developed. This fund was defined for the integral energy renovation of multifamily buildings and single-familiy houses in Extremadura, which has a combination of innovative tools for standardization, pooling, bundling and de-risking which gives security to financial institutions and homeowners and their associations.
HousEEnvest focuses on a regional market and aims to mobilize investments amounting to more than 27 million euros in Extremadura.
The project address several fundamental challenges to overcome market barriers by developing a series of integrated services.
HousEEnvest creates the entire management structure of the Instrument to mobilize private funds backed by the European Structural Investment Funds (ESI Funds). It has been working between 2018 and 2022 and has ensured that the ERDF funds allocated to the guarantee product are properly implemented. After the HousEEnvest project lifetime, partners have agreed to continue with the core activities of the project.
During the project lifetime, HOUSEENVEST has achieved the most of the expected results that are influencing the housing renovation sector in Extremadura region. The most successful are the following:
• Extremadura’s Regional Government is dedicating many efforts to residential building renovation. Before HOUSEENVEST there was neither a specific planning nor a support structure for energy renovation; but it is now being created to prioritize the energy rehabilitation projects in condominiums. In this way, the Guarantee Fund has been established for at least 5 years. Thus, the financial structure for the Building Energy Renovation will be operative beyond the project lifetime.
• The involvement of the private sector, not only from the rehabilitation sector (ESCOs, construction companies, etc) but also from the financial sector (banks and other financial institutions) that are disseminating the advantages on energy building renovation. This involvement has been achieved with the support of sectorial associations. In addition, HOUSEENVEST has increased the know-how of these companies in the rehabilitation field with capacity-building activities such as training courses, webinars, or face-to-face and online meetings.
• The high number of buildings analysed, which is providing a detailed situation of residential building stock in the region. These analyses are also used to show the homeowners the buildings’ energy performance with the aim to raise awareness about the need for energy renovation projects.
• Recently, several partners have developed a regional One Stop-Shop (named OSIR) and which is expected to evolve into a broader service (called SICAREx) during the post-project phase.
In this period, HOUSEENVEST has also focused on overcoming the delays on several tasks but, especially in the main bottlenecks of the project:
1. THE LAUNCH OF THE GUARANTEE FUND, made in December 2020.
2. STATUS OF FEASIBILITY STUDIES. The number of buildings analysed is higher than expected.
3. POST-PROJECT SUSTAINABLE PARTNERSHIP. An agreement between the HousEEnvest partners has allowed to continue with the core activities developed in HousEEnvest as well as promoting the building energy rehabilitation.
• Extremadura’s Regional Government is dedicating many efforts to residential building renovation. Before HOUSEENVEST there was neither a specific planning nor a support structure for energy renovation; but it is now being created to prioritize the energy rehabilitation projects in condominiums. In this way, the Guarantee Fund has been established for at least 5 years. Thus, the financial structure for the Building Energy Renovation will be operative beyond the project lifetime.
• The involvement of the private sector, not only from the rehabilitation sector (ESCOs, construction companies, etc) but also from the financial sector (banks and other financial institutions) that are disseminating the advantages on energy building renovation. This involvement has been achieved with the support of sectorial associations. In addition, HOUSEENVEST has increased the know-how of these companies in the rehabilitation field with capacity-building activities such as training courses, webinars, or face-to-face and online meetings.
• The high number of buildings analysed, which is providing a detailed situation of residential building stock in the region. These analyses are also used to show the homeowners the buildings’ energy performance with the aim to raise awareness about the need for energy renovation projects.
• Recently, several partners have developed a regional One Stop-Shop (named OSIR) and which is expected to evolve into a broader service (called SICAREx) during the post-project phase.
In this period, HOUSEENVEST has also focused on overcoming the delays on several tasks but, especially in the main bottlenecks of the project:
1. THE LAUNCH OF THE GUARANTEE FUND, made in December 2020.
2. STATUS OF FEASIBILITY STUDIES. The number of buildings analysed is higher than expected.
3. POST-PROJECT SUSTAINABLE PARTNERSHIP. An agreement between the HousEEnvest partners has allowed to continue with the core activities developed in HousEEnvest as well as promoting the building energy rehabilitation.
HousEEnvest project has addressed the problems identified in the Extremadura's building renovation sector thanks to the achievements made during the project's progress.
The creation of the new finance scheme proposed in the project is addressing the financial barriers by offering specific financial products adapted to the specific requirements of homeowners and their associations and also to the features of the renovation investments. The loans have better conditions than the few financial products currently available.
Although the development of the scheme involved a longer process that planned, several goals has been achieve in this sense: the modification of the OP needed due to the funds' source, the approval of the financing scheme as part of a LAW , the validation by both Governments at regional and national level. Finally, the Guarantee Fund was launched and loans based on the Fund started to be offered to homeowners and their associations. The Guaratee Fund will run for 5 years, at least.
Thanks to the Project Development Assistance Unit (PDA Unit), the project offered free advice and support, with the aim to reduce the lack of knowledge in energy efficiency and rehabilitation by the owners. The feasibility studies and the support offered by the PDA are providing stability, security and assurance to the owners. HousEEnvest has developed a permanent structure for assistance and advising to homeowners on building renovation issue; thanks to an agreement between HousEEnvest's partners and will continue with the activities promoted by HousEEnvest project.
So, HousEEnvest project actions are achiving the following impacts:
- Delivery of sustainable energy investment project and innovate financing solutions
- Every million Euro of support triggers investments worth at least EU 15 million
- Primary energy savings, renewable energy production and investments in sustainable energy
- Demonstration of innovative and replicable products
In addition, HousEEnvest has mobilized 24M€, 1.250 people with increase capacity and also 61.380 families involved.
The creation of the new finance scheme proposed in the project is addressing the financial barriers by offering specific financial products adapted to the specific requirements of homeowners and their associations and also to the features of the renovation investments. The loans have better conditions than the few financial products currently available.
Although the development of the scheme involved a longer process that planned, several goals has been achieve in this sense: the modification of the OP needed due to the funds' source, the approval of the financing scheme as part of a LAW , the validation by both Governments at regional and national level. Finally, the Guarantee Fund was launched and loans based on the Fund started to be offered to homeowners and their associations. The Guaratee Fund will run for 5 years, at least.
Thanks to the Project Development Assistance Unit (PDA Unit), the project offered free advice and support, with the aim to reduce the lack of knowledge in energy efficiency and rehabilitation by the owners. The feasibility studies and the support offered by the PDA are providing stability, security and assurance to the owners. HousEEnvest has developed a permanent structure for assistance and advising to homeowners on building renovation issue; thanks to an agreement between HousEEnvest's partners and will continue with the activities promoted by HousEEnvest project.
So, HousEEnvest project actions are achiving the following impacts:
- Delivery of sustainable energy investment project and innovate financing solutions
- Every million Euro of support triggers investments worth at least EU 15 million
- Primary energy savings, renewable energy production and investments in sustainable energy
- Demonstration of innovative and replicable products
In addition, HousEEnvest has mobilized 24M€, 1.250 people with increase capacity and also 61.380 families involved.