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Save your bUildiNg by SavINg Energy – towards 202020m2 of deeply renovated multifamily residential buildings

Objective

Deep renovation – the idea of capturing the full economic energy efficiency potential of existing buildings with focus on building envelopes – leads to remarkable energy savings. As nearly all of Latvia’s stock of multifamily residential buildings continues to rapidly deteriorate due to harsh weather conditions and lack of proper maintenance, the idea is attractive.
Realizing this potential requires designing, financing and implementing complex energy efficiency investments, but today nearly all apartments in Latvia are privately owned. Practice shows that individual owners are inadequately organized to manage their collective property. Combined with a lack of awareness and technical knowledge, limited availability of funding, high risk perception and reluctance for debt financing, the barriers overwhelm most people.
A concept that addresses these constraints is Energy Performance Contracting (EPC). A key feature of EPC is that the provider, an energy service company (ESCO), guarantees energy savings.
SUNShINE supports public and private ESCO's and leads to an innovative investment scheme with a pipeline of projects worth €30m, guaranteed savings over 26GWh/year, and 202020m2 of deeply renovated buildings. A major objective is to demonstrate the financial viability of deep renovation via suitable financial engineering of public funds and private capitals.
The proposed approach is simple, yet very innovative: most ESCOs have limited balance sheet capacity and are not able to support much long term debt. So re-financing is usually achieved by selling future cash flows (receivables) by a forfaiting transaction. After this transaction the ESCO continues to guarantee energy savings for the entire EPC term (15-20 years). Unfortunately, in emerging EPC markets like Latvia, there are not enough track records, so banks are not yet ready to offer these services to ESCOs. The project delivers the same service by establishing a special purpose fund for EPC.

Field of science

  • /engineering and technology/environmental engineering/waste management/energy efficiency

Call for proposal

H2020-EE-2014-4-PDA
See other projects for this call

Funding Scheme

CSA - Coordination and support action

Coordinator

RIGAS TEHNISKA UNIVERSITATE
Address
Kalku Iela 1
1658 Riga
Latvia
Activity type
Higher or Secondary Education Establishments
EU contribution
€ 202 185

Participants (6)

RENESCO SIA
Latvia
EU contribution
€ 357 932,50
Address
Noliktavas Iela 3-2
LV-1010 Riga
Activity type
Private for-profit entities (excluding Higher or Secondary Education Establishments)
EKU SAGLABASANAS UN ENERGOTAUPIBAS BIROJS
Latvia
EU contribution
€ 158 896,25
Address
Noliktavas Iela 3 2
1010 Riga
Activity type
Other
FUNDING FOR FUTURE BV
Netherlands
EU contribution
€ 263 555
Address
Stetweg 43 B
1901 JD Castricum
Activity type
Private for-profit entities (excluding Higher or Secondary Education Establishments)
EKODOMA
Latvia
EU contribution
€ 203 515
Address
3-3 Noliktavas Street
1010 Riga
Activity type
Private for-profit entities (excluding Higher or Secondary Education Establishments)
SIA SALASPILS SILTUMS
Latvia
EU contribution
€ 186 270
Address
Miera Iela 31A
2169 Salaspils
Activity type
Private for-profit entities (excluding Higher or Secondary Education Establishments)
ECO.NRG SIA
Latvia
EU contribution
€ 183 637,50
Address
Vienibas Gatve 87C-1
LV-1004 Riga
Activity type
Private for-profit entities (excluding Higher or Secondary Education Establishments)