Skip to main content

Energy Efficiency Investments in multifamily houses

Periodic Reporting for period 2 - HousEEnvest (Energy Efficiency Investments in multifamily houses)

Reporting period: 2019-09-01 to 2021-02-28

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 communities of owners 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 is proposed, defined for the integral energy renovation of multifamily buildings in Extremadura, which will have a combination of innovative tools for standardization, pooling, bundling and de-risking which will give security to financial institutions and communities of owners.

HousEEnvest focuses on a regional market and aims to mobilize investments amounting to more than 27 million euros in Extremadura.

The project will address several fundamental challenges to overcome market barriers by developing a series of integrated services.

HousEEnvest will create the entire management structure of the Instrument to mobilize private funds backed by the European Structural Investment Funds (ESI Funds). It will work between 2018 and 2021 and will ensure that the ERDF funds allocated to the guarantee product are properly implemented.
At this stage, HOUSEENVEST has achieved several 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 after the end of the project.

• 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). These partners have agreed to focus on the HOUSEENVEST’s target buildings with the aim to strength the activities from Activating Demand Sector and Exploitation and Post-project sustainability. It means mainly with the aim to increase the number of buildings analysed. In this way, building managers and/or owners can contact directly with HOUSEENVEST in order to include their residential buildings in the HOUSEENVEST programme.

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. Even though the pandemic situation, project partners have worked harder in order to achieve the expected milestones. So much so that the number of building analysed during COVID-19 crisis is similar to number before crisis. This hard work allowed to approve the first investments
HousEEnvest project is addressing 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 is involving 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 has been launched and loans based on the Fund have just 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 offer 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 is working on a permanent structure for assistance and advising to homeowners on building renovation issues. This structure could be integrated in the One Stop-Shop "OSIR" and will continue with the activities promoted by HousEEnvest project.

So, HousEEnvest project actions are expect to demonstrate 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, is expected more that 27M€ mobilize, 300 people with increase capacity and also 100 buildings and 6.000 families involved.
Project logo