Energy Efficiency Investments in multifamily houses – HOUSEENVEST

Location: Extremadura Region, Spain

Population: 1,070,586 [Regional Population]

Climate: Mediterranean

Duration: March 2018 – 2022

Sector: Buildings

Funding sources: Public

City networks: N/A

Savings: N/A

Solutions: The development of a financing scheme consisting of a combination of innovative tools for standardization, pooling, bundling and de-risking.

Multiple benefits: HousEEnvest project implies greater visibility of the progress that the region is making in the energy improvement of public and private buildings, promoting energy sustainability and driving decarbonization of rural and urban areas of the region [source].

The HousEEnvest project – formed by a consortium of nine partners – follows two years of work between key regional institutions from the energy, economic and building sectors, combined with international resources from IEB and EU cooperation programs, which have allowed designing one financing scheme made to measure of Extremadura building renovation necessities.

Objective – To demonstrate the viability of an innovative financing scheme for the full energy renovation of multifamily houses in Extremadura, which will also contribute to boosting the construction sector.

Solutions – The HousEEnvest project will develop an innovative financing scheme, with a combination of standardization solutions, with funding engineering and de-risking systems, which together breaks the current existing barriers for full energy renovation of multi-family houses in Spain and many others EU countries [source]. Moreover, the project will also focus on the implementation of a Guarantees Fund created with public investment funds, movement of non-refundable grants through the combination of EFSI funds and private participation.

Funding – The funding for this project comes from IEB and EU. In particular, the EU contribution amounts to EUR 631,305 [source].

Innovation – Through the implementation of an innovative financing scheme, the Guarantees Fund will facilitate the homeowner´s associations the technical, economic and feasibility analysis of investments and access to financing in advantageous situations compared to the current financial offer [source].

Furthermore, HousEEnvest will have results in the Energy renovation of multifamily building, and introduce EU added value through the combination of several proved innovations, which are applied and customized for the multifamily buildings with central heating.

Success factors – In order to reach a successful project implementation, HousEEnvest gathers today 9 representatives of the entire key actors: decision-makers from the Government, public financial companies, association with access to buildings, associations of the construction sector and companies providing technical, legal and economic expertise [source].

Significant outcomes:

After the completion of the project, the following significant outcomes are expected:

• To unlock the energy investment in private buildings, using the made to measure Fund [source];
• To captured untapped high energy efficiency potentials in the energy renovation of Extremadura buildings [source].

Synergies with local policies:

• Agreement for the Sustainable Energy Development of Extremadura 2010 – 2020 establishes a new energy model, based on renewable energies and energy efficiency, as crucial factors towards sustainable development;
• Strategy of Energy Efficiency in public buildings of the Regional Administration of Extremadura 2018 – 2030 sets the target to diminish the CO2 emissions from the Public Real State to foster the transition towards a green and circular economy. One of the intended actions consists of the implementation of intelligent management and control systems for buildings, to optimize the energy consumption;
• Extremadura 2030pursues the construction of a green economy and circular strategy for Extremadura, where a new sustainable energy model will be implemented, with an increase in the production, quality, and consumption of renewable energies.

Political alignment:

• National Integrated Energy and Climate Plan 2021-2030 proposes a reduction of between 20% and 21% of greenhouse gas emissions compared with 1990 levels. It plans to achieve up to 42% consumption of renewable energies out of the total energy use by the year 2030;
• Draft Bill on Climate Change and Energy Transitionattempts the decarbonisation of the Spanish economy by 2050 and gives a decisive boost to renewable energies;
• Royal Decree 413/2014, from 06/06/2014, regulates the activity of electricity production from renewable energy sources, cogeneration and waste;
• Article 4 of Directive 2012/27/EU states that Spain must update and submit, within the framework of the National Energy Efficiency Action Plans, the long-term strategy for mobilising investment in the renovation of the national stock of residential and commercial buildings, both public and private;
• Sustainable Economy Law (2011) aligns with the EU targets of energy efficiency;
• Building Energy Certification (2007) collaboration agreement to carry out an energy certification program for all types of buildings.

Marketability:

• HousEEnvest aims to be a showcase in the unlocking of investment through pooling, when supported by a proper Fund scheme, which can be applied and replicated in other geographies and even other sectors.