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SusTainable bUsiNess models for the deep reNovation of buIldiNGs

Periodic Reporting for period 2 - STUNNING (SusTainable bUsiNess models for the deep reNovation of buIldiNGs)

Reporting period: 2018-10-01 to 2019-09-30

The building sector is one of the key enablers for achieving 2050 low carbon economy goals. Most of the energy savings required to meet these goals must come from existing buildings, but today’s measured rate of refurbishment (1.2%) is much lower than what should be observed to remain in line with Europe 2050 ambitions. There is a need to accelerate the large-scale implementation of energy efficient refurbishment solutions and increase the renovation level to 3% per year until 2030.
The European building sector is however highly fragmented (with over 95% of SMEs) and not yet able to offer holistic solutions for deep renovation at acceptable cost and quality. Renovation processes are seen as costly, time-expensive, disruptive and risky by the consumers. Innovative business models which allow consumers and the market to invest with confidence in the long term need to be developed.

STUNNING overall objective was therefore to engage with the whole community of stakeholders to accelerate the adoption of new business models for energy-efficient buildings.

The project demonstrated that there is no one fit-for-all business model for the energy efficient renovation of buildings, but a variety of possible combinations. In order to efficiently support the deep renovation of buildings, the best “recipe” should take inspiration from successful business models already piloted and replicated in Europe, but also pay attention to local constraints, barriers and enablers.
STUNNING has provided a first clear classification of existing and promising business models that can be used as building blocks for new renovation services, and provided recommendations on how to implement them (based on the analysis of barriers and case studies). Substantial effort was then made towards the promotion of these business models, through workshops, webinars, a final event and the Renovation Hub in particular.
The concept underpinning STUNNING is to build a community of stakeholders around a web-based knowledge sharing platform (KSP) that provides key facts on renovation packages, business models and business cases. Stakeholder engagement activities are then articulated around this platform.

In WP2 (Stakeholder engagement and knowledge sharing platform), actions targeting stakeholders of the renovation sector have been implemented to engage them (workshops, webinars, newsletters, surveys, etc; see also WP6). In parallel, regular publications were made on the Renovation Hub to present the outcomes of WP3, WP4 and WP5 and enable the exchange of information and best practices among stakeholders.

In WP3 (Benchmark of innovative refurbishment packages and business models), a common database structure has been designed. About 371 renovation cases have then been collected and reviewed, including French, Spanish and German renovation cases. A cost-benefit method has been developed to estimate the profitability of renovation projects. An additional Monte Carlo assessment risk methodology has been implemented to identify the main variables that could have an impact on this profitability.

In WP4 (Identification of barriers that slow down replication), various activities have been performed to understand the dynamics behind the market barriers that have impeded the EU to achieve the yearly targeted renovation rates and general objectives of the EPBD. A preliminary analysis of the renovation market mechanisms and trends was conducted through the observation of macroeconomic indicators, along with energy efficiency policy instruments and more generalized data on deep renovations. Through a review of existing literature, partner market knowledge as well as external consultation, interview processes and case studies, the main barriers were then defined and contextualized. Solutions for the alleviation of these barriers where offered.

In WP5 (Promotion of new business models and validation through business cases), initial effort focussed on the creation of a dedicated Business Models’ (BMs) Database (DB) collecting innovative business models for building renovation, that proved their success in different geographical contexts and for specific building typologies. According to the main barriers encountered in the renovation process, the most promising BMs were identified. A set of 14 Business Cases presenting their application in a real environment has been investigated with the aim of evaluating and highlighting their distinctive elements as well as their common features towards potential optimization. General recommendations have been deduced to enable the identification of replicable and adaptable models. The BM were then promoted through the Renovation Hub, the final publication and other specific activities.

In WP6 (Communication, Dissemination and exploitation of project results), the STUNNING website and social media were constantly kept up to date. The partners created and disseminated further printed and digital means of communication, conducted a stronger interaction with stakeholders and potential registrants for the Renovation Hub via webinars, publications, participations to events as well as the organisation of a final conference. The STUNNING final publication ensured the further dissemination of project results in a summarised, attractive and understandable manner. The partners finalised their exploitation strategies for the most promising results (which include the Renovation Hub, the CBA methodology, the BM database and the final publication). A business plan was created for the Renovation Hub, which was identified as the key exploitable result of the project.
Being a CSA, STUNNING builds on existing works and ongoing projects, synthesise the generated information and capitalise on it to promote and support deployment and generalisation of most added-value R&D outcomes. The unique selling value of STUNNING is to ‘package’ and present the collected and generated knowledge in a Knowledge Sharing Platform specially designed for the renovation sector, the Renovation Hub, which will be maintained beyond the end of the project.

The results were:
• A S Knowledge Sharing Platform with quality checked and regularly updated content (Renovation Hub)
• Holistic energy retrofit solutions evaluation approach (Cost Benefit Analysis)
• Review of barriers that slow down the renovation of the building stock
• Innovative business models, illustrated through case studies
• Final publication & policy recommendations

The expected impacts are:
• To accelerate the uptake of cost-effective and adaptable renovation packages thanks to optimized and user-centered business models
• To help select the most suitable refurbishment package/business model combination through decision support tools and databases
• To increase the awareness of the benefits of improving the EE of existing buildings
• To empower local authorities to accelerate the renovation of the building stock, by recommending effective methods for steering and governance (also covering innovation-related public building procurements)
• To enrich knowledge on existing and emerging renovation solutions based on geo-clustering and cost benefit analysis and disseminate it to players of the renovation sector
• To promote better quality standards and performance guarantees

STUNNING also offers a new outlook to help designing future policies that are better targeted to upgrade the efficiency of the building stock.
Renovation Hub
STUNNING approach