Periodic Reporting for period 2 - ORFEE (Originating Retrofits Financing for Energy Efficiency)
Período documentado: 2021-10-01 hasta 2023-01-31
In order to develop the range of high-performance energy works, the Hauts-de-France, Ile-de-France, New Aquitaine, Grand-Est, Occitanie and Centre-Val de Loire regions, as well as Bordeaux Metropole, have developed and implemented the concept of third-party financing companies that offer technical engineering services and support in carrying out the works, which include a financing offer.
It is in the interest of the STFs to focus their operational processes on the areas of support for households, carrying out works, etc., which will be the first objective of the Office for Renovations and Financing for Energy Efficiency, a body common to the STFs.
The ORFEE will be a resource centre to consolidate the STFs' business model: pooling their developments and coordinating their operational processes to reduce their costs, centralising their feedback to better disseminate it, etc...
The design of ORFEE will also allow STFs to strengthen their financial structure:
Thus, loans granted by STFs to households should be transferred without recourse to a fund managed by the EIB or a financial intermediary, some time after completion of the works. The proceeds of the assignment of receivables could then be reused by each STF to grant new loans, without this financial operation altering the contractual relations of the STFs with individuals and co-ownerships.
The objective is twofold: on the one hand, to derecognise the STFs' receivables from households and co-ownerships in order to limit the increase in their balance sheet and optimise their equity capital, and on the other hand, to meet the demand from investors who want to comply with the "Ecological and Energy Transition for the Climate" label implemented in France - or other equivalent labels in Europe.
The ORFEE should also strengthen the attractiveness of the STFs' offer by enabling them to provide private individuals and co-ownerships with a guarantee of the quality and performance of the works: this operational guarantee should cover, in the event of poor performance, the resumption of the faulty works.
It is in the interest of the STFs to focus their operational processes on the areas of support for households, carrying out works, etc., which will be the first objective of the Office for Renovations and Financing for Energy Efficiency, a body common to the STFs.
The ORFEE will be a resource centre to consolidate the STFs' business model: pooling their developments and coordinating their operational processes to reduce their costs, centralising their feedback to better disseminate it, etc...
The design of ORFEE will also allow STFs to strengthen their financial structure:
Thus, loans granted by STFs to households should be transferred without recourse to a fund managed by the EIB or a financial intermediary, some time after completion of the works. The proceeds of the assignment of receivables could then be reused by each STF to grant new loans, without this financial operation altering the contractual relations of the STFs with individuals and co-ownerships.
The objective is twofold: on the one hand, to derecognise the STFs' receivables from households and co-ownerships in order to limit the increase in their balance sheet and optimise their equity capital, and on the other hand, to meet the demand from investors who want to comply with the "Ecological and Energy Transition for the Climate" label implemented in France - or other equivalent labels in Europe.
The ORFEE should also strengthen the attractiveness of the STFs' offer by enabling them to provide private individuals and co-ownerships with a guarantee of the quality and performance of the works: this operational guarantee should cover, in the event of poor performance, the resumption of the faulty works.
Building a resource centre (ORFEE) for Third Party Finance Companies:
- To enable the sharing of resources: methods, skills, feedback, etc. in order to promote the development of Third Party Financing Companies in France.
- To pool the development of Third Party Finance Companies (studies, procedures, development of IT tools, etc.)*
-> The association Serafin was created on 1/01/2022 to play this role.
Optimising the financing offered by Third Party Financing Companies for energy renovations:
- Reliable sources of funding for third-party financing companies to guarantee their offer of financing for the works.
- Facilitate the use of European funds (ERDF) by the Regions
- Collaborate with banks for a "green label" for energy renovation loans
-> The relevance of the creation of a new structure "banque de la rénovation" was analysed
Defining a reference framework for the quality of renovation work:
- Design and implement the compliance and quality control framework for energy renovation works
- Designing an insurance offer to guarantee the quality of the renovations
- Issue 1,500 quality guarantees associated with offers from third-party financing companies over 3 years (2021 - 2023)
-> The framework was designed and is tested for implementation in third-party financing companies
- To enable the sharing of resources: methods, skills, feedback, etc. in order to promote the development of Third Party Financing Companies in France.
- To pool the development of Third Party Finance Companies (studies, procedures, development of IT tools, etc.)*
-> The association Serafin was created on 1/01/2022 to play this role.
Optimising the financing offered by Third Party Financing Companies for energy renovations:
- Reliable sources of funding for third-party financing companies to guarantee their offer of financing for the works.
- Facilitate the use of European funds (ERDF) by the Regions
- Collaborate with banks for a "green label" for energy renovation loans
-> The relevance of the creation of a new structure "banque de la rénovation" was analysed
Defining a reference framework for the quality of renovation work:
- Design and implement the compliance and quality control framework for energy renovation works
- Designing an insurance offer to guarantee the quality of the renovations
- Issue 1,500 quality guarantees associated with offers from third-party financing companies over 3 years (2021 - 2023)
-> The framework was designed and is tested for implementation in third-party financing companies
The design of ORFEE will also allow STFs to strengthen their financial structure:
Thus, loans granted by STFs to households should be transferred without recourse to a fund managed by the EIB or a financial intermediary, some time after completion of the works. The proceeds of the assignment of receivables could then be reused by each STF to grant new loans, without this financial operation altering the contractual relations of the STFs with individuals and co-ownerships.
The objective is twofold: on the one hand, to derecognise the STFs' receivables from households and co-ownerships in order to limit the increase in their balance sheet and optimise their equity capital, and on the other hand, to meet the demand from investors who want to comply with the "Ecological and Energy Transition for the Climate" label implemented in France - or other equivalent labels in Europe.
The STF members of the ORFEE consortium plan to carry out 13,100 energy renovation works between 2020 - 2024 => investment of €396m
The number of STF energy retrofits is projected to increase by 10% in 2022 and 18% in 2023.
Thus, loans granted by STFs to households should be transferred without recourse to a fund managed by the EIB or a financial intermediary, some time after completion of the works. The proceeds of the assignment of receivables could then be reused by each STF to grant new loans, without this financial operation altering the contractual relations of the STFs with individuals and co-ownerships.
The objective is twofold: on the one hand, to derecognise the STFs' receivables from households and co-ownerships in order to limit the increase in their balance sheet and optimise their equity capital, and on the other hand, to meet the demand from investors who want to comply with the "Ecological and Energy Transition for the Climate" label implemented in France - or other equivalent labels in Europe.
The STF members of the ORFEE consortium plan to carry out 13,100 energy renovation works between 2020 - 2024 => investment of €396m
The number of STF energy retrofits is projected to increase by 10% in 2022 and 18% in 2023.