Periodic Reporting for period 3 - FinEERGo-Dom (Financing scheme for Energy Efficiency and Renewable energy Guaranteed in Deep renovations of building stock)
Berichtszeitraum: 2022-06-01 bis 2023-11-30
One of the ways of achieving the ambitious EU level goals is increasing the number of building renovations. There is a huge energy efficiency potential in multifamily buildings from the 50’till the early 70’s/80’s. Due to the pressure to create housing quickly, architects designed buildings using standardised methodologies and prefabricated components, without energy efficiency requirements. Research shows that, in Eastern Europe alone, an estimated 120 million families live in such multifamily buildings, over 2.5 billion square meters.
To answer the needs of multifamily building renovation in Eastern Europe the innovative guaranteed financial mechanism (LABEEF) for energy efficiency and renewable energy in deep renovations in buildings was implemented in Latvia and replicated under the FinEERGo-Dom project in 5 other countries – Poland, Slovakia, Romania, Bulgaria and Austria.
Introducing the “BEEF” mechanism and making more funding available more quickly for energy service companies by the FinEERGo-Dom project responds to the need to scale up buildings’ deep renovations urgently. Implementation of this mechanism will improve the lives of thousands of citizens across Central and Eastern Europe and minimise energy consumption. Energy Performance Contracting (EPC+) in deep renovation investments guarantees the savings and ensures safe, healthy and sustainable buildings.
This mechanism’s core tool is a multi-stakeholder platform that follows each step of renovation implementation from initial concept to aggregation while ensuring the highest levels of legal and financial security, transparency, and respecting each stakeholder's needs.
The main objective of the FinEERGo-Dom project is to successfully replicate LABEEF financing scheme/ the innovative guaranteed financial mechanism in Poland and Austria and accelerate replication in Slovakia, Romania and Bulgaria.
To answer the needs of multifamily building renovation in Eastern Europe the innovative guaranteed financial mechanism (LABEEF) for energy efficiency and renewable energy in deep renovations in buildings was implemented in Latvia and replicated under the FinEERGo-Dom project in 5 other countries – Poland, Slovakia, Romania, Bulgaria and Austria.
Introducing the “BEEF” mechanism and making more funding available more quickly for energy service companies by the FinEERGo-Dom project responds to the need to scale up buildings’ deep renovations urgently. Implementation of this mechanism will improve the lives of thousands of citizens across Central and Eastern Europe and minimise energy consumption. Energy Performance Contracting (EPC+) in deep renovation investments guarantees the savings and ensures safe, healthy and sustainable buildings.
This mechanism’s core tool is a multi-stakeholder platform that follows each step of renovation implementation from initial concept to aggregation while ensuring the highest levels of legal and financial security, transparency, and respecting each stakeholder's needs.
The main objective of the FinEERGo-Dom project is to successfully replicate LABEEF financing scheme/ the innovative guaranteed financial mechanism in Poland and Austria and accelerate replication in Slovakia, Romania and Bulgaria.
The key stakeholders in partners' countries have been identified and the engagemant action plan was designed. FinEERGo-Dom partners have created Advisory Committees in each replicating country, and organised the regular workshops to successfully implement and maximize the use of the project results.The training materials packages dedicated to Financial Institutions, Homeowners, and Policy Makers were produced and delivered during trainings organised by project partners.
The SUNShINE Platform was designed to support all phases of an EPC project in four languages for replicating partners’ use. It is designed to engage a range of stakeholders in various project phases: Planning, executing the renovation, and maintaining and monitoring the renovated building. The platform serves as a collaborative space for such stakeholders.
The benefits of the platform include:
• Facilitating collaboration between registered organisations (building owners, ESCOs, banks, maintenance companies, auditors, etc.) for improved communication.
• Providing residents with a centralised access point to service providers.
• Collecting building and project data for relevant statistical analysis.
• Reducing administrative costs (especially for ESCOs) by centralising information and simplifying communication during projects.
Partners have translated the Latvian BEEF guidelines and EPC agreement to local languages. The documents have been analysed and adapted to the context of countries' legislation.
Each replicating country prepared the basis for implementation of financial instruments (including guidelines), estimated budget for implementation and operation and risk management procedure were developed. The guidelines have also been published on the SUNShINE platform and are available to all stakeholders.
In Poland the Priority Programme “ Renovation with guaranteed savings – EPC Plus” was established by NFOSiGW and the 1st call for applications was carried out.
A solid ecosystem of partners has been created in Bulgaria, consisting of public authorities, financial service providers, the Bulgarian ESCO (Alliance for Energy Efficiency), and the Bulgarian project teams BeSmart, SHAREs, SHEERenov H2020. Based on the experience of the FinEERGo-Dom project the Bulgarian OSS model offering a wide range of technical assistance services was established and started operation. A part of the FinEERGo-Dom consortium, BULBEEF was established by Funding For Future (F3) to manage privately financed Building Energy Efficiency Facilities (BEEFs), facilitating access to long-term financing for energy efficiency deep renovations in social and multifamily buildings as well as public buildings. BULBEEF provided forfaiting services, among others. In Slovakia, a pipeline of potential EPC projects has been established.The Slovak EPC market recognises the benefits of EPCs and the BEEF model, and with the lessons learned from the FinEERGo-Dom project, further work can be done to develop financial mechanisms and programmes dedicated to building renovation. The efforts made in Austria and Romania within the FinEERGo-Dom project to prepare the ground for the implementation of an instrument to support the implementation of EPC projects in multifamily buildings, for the creation of BEEFs and for the identification of potential projects, have contributed to a solid recognition of the conditions for this type of investment. Meetings, trainings, workshops organised by the project partners increased knowledge and understanding of the activities for energy efficiency measures, EPC plus contracts and ESCO solutions. In addition, these interactions have effectively increased stakeholder awareness of the importance and potential of these initiatives.
The SUNShINE Platform was designed to support all phases of an EPC project in four languages for replicating partners’ use. It is designed to engage a range of stakeholders in various project phases: Planning, executing the renovation, and maintaining and monitoring the renovated building. The platform serves as a collaborative space for such stakeholders.
The benefits of the platform include:
• Facilitating collaboration between registered organisations (building owners, ESCOs, banks, maintenance companies, auditors, etc.) for improved communication.
• Providing residents with a centralised access point to service providers.
• Collecting building and project data for relevant statistical analysis.
• Reducing administrative costs (especially for ESCOs) by centralising information and simplifying communication during projects.
Partners have translated the Latvian BEEF guidelines and EPC agreement to local languages. The documents have been analysed and adapted to the context of countries' legislation.
Each replicating country prepared the basis for implementation of financial instruments (including guidelines), estimated budget for implementation and operation and risk management procedure were developed. The guidelines have also been published on the SUNShINE platform and are available to all stakeholders.
In Poland the Priority Programme “ Renovation with guaranteed savings – EPC Plus” was established by NFOSiGW and the 1st call for applications was carried out.
A solid ecosystem of partners has been created in Bulgaria, consisting of public authorities, financial service providers, the Bulgarian ESCO (Alliance for Energy Efficiency), and the Bulgarian project teams BeSmart, SHAREs, SHEERenov H2020. Based on the experience of the FinEERGo-Dom project the Bulgarian OSS model offering a wide range of technical assistance services was established and started operation. A part of the FinEERGo-Dom consortium, BULBEEF was established by Funding For Future (F3) to manage privately financed Building Energy Efficiency Facilities (BEEFs), facilitating access to long-term financing for energy efficiency deep renovations in social and multifamily buildings as well as public buildings. BULBEEF provided forfaiting services, among others. In Slovakia, a pipeline of potential EPC projects has been established.The Slovak EPC market recognises the benefits of EPCs and the BEEF model, and with the lessons learned from the FinEERGo-Dom project, further work can be done to develop financial mechanisms and programmes dedicated to building renovation. The efforts made in Austria and Romania within the FinEERGo-Dom project to prepare the ground for the implementation of an instrument to support the implementation of EPC projects in multifamily buildings, for the creation of BEEFs and for the identification of potential projects, have contributed to a solid recognition of the conditions for this type of investment. Meetings, trainings, workshops organised by the project partners increased knowledge and understanding of the activities for energy efficiency measures, EPC plus contracts and ESCO solutions. In addition, these interactions have effectively increased stakeholder awareness of the importance and potential of these initiatives.
The overall objective of FinEERGo-Dom project was to improve and implement energy efficiency finanancing schemes with guaranteed savings in deep renovation of multifamily buildings. According to the objectives of the project, the National Fund "NFOSiGW" supported by KAPE and partners, building on documents and procedures developed for the private and public sector under the Latvian Baltic Energy Efficiency Fund, created a Priority Programme with a budget of 10 mln PLN (€2.3 million) for 10-30% subsidies for building renovation investments. Within project duration one pilot investment started. Based on the results of the pilot phase of this programme realized under FinEERGo-Dom project, the Programme will continue after the project duration and the 2nd call of application is to be announced for multifamily and public buildings with a budget of 100 million PLN.
FinEERgo-Dom project identified main challenges and barriers in implementation of EPC projects in multifamily buildings.
All project interactions, including one-to-one meetings, trainings, webinars, workshops and conferences had an impact on boosting the EPC market in replicating countries.
As a result, the project gives a good insight into the context of the EPC market and provides specific recommendations for each replicating country. The identified risks and key obstacles, the lessons learnt and developed recommendations allow for further improvements of the financing system for multifamily buildings in Europe.
FinEERgo-Dom project identified main challenges and barriers in implementation of EPC projects in multifamily buildings.
All project interactions, including one-to-one meetings, trainings, webinars, workshops and conferences had an impact on boosting the EPC market in replicating countries.
As a result, the project gives a good insight into the context of the EPC market and provides specific recommendations for each replicating country. The identified risks and key obstacles, the lessons learnt and developed recommendations allow for further improvements of the financing system for multifamily buildings in Europe.