Energies POSIT IF. 4 years refurbishing condominiums to low energy in the Île-de-France Region Lessons learnt

Transcription

1 Energies POSIT IF 4 years refurbishing condominiums to low energy in the Île-de-France Region Lessons learnt MLEI POSITIF Conference ARENE IdF FEDARENE Energies POSIT IF 20 June 2017 IEE/12/717/SI

2 CONTEXT In the Île-de-France Region 4.7M dwellings of which 72% are collective buildings Priority target of 1M rated in energy classes E, F, G (230 to 450 kwh/m²/annum) (1) Constraints impacting renovation programmes Non-professional management of buildings (co - owners) Diversity of situations Long decision-making processes Lack of trust of companies Financing schemes not adapted to long -term payback investments (over 15 years) (1) The average consumption of the housing stock is 220kWhpe/m²/y (heating and domestic hot water) and 330kWhpe/m²/y when including cooking and specific electricity. 2

3 ENERGIES POSIT IF Shareholding 85% in public ownership: - Île-de-France Region - Paris City - 12 other local authorities 15% in private hands: - Caisse des dépôts et consignations - Caisse d Épargne IdF (bank) Main activity: Third-party financing of renovation collective buildings (private and social) 3

4 OBJECTIVES Increase condominium confidence and expertise Stimulate investment in renovation projects Support high standards in thermal retrofitting: min. 40% energy saving Business based on 3 innovations One-stop shop for energy renovation Guarantee on energy performance Third-party financing condos renovated dwellings 250M investment 4

5 WHAT WE OFFER Architecture energy and financial audit Designing the work programme Works Performance monitoring One-stop-shop, same project manager for entire duration, «coaching» the condominium Technical engineering : architecture, energy Financial engineering : individual financing tables, prefinancing of subsidies, white certificate contracts Communication 5

6 HOW TO MAKE RENOVATION HAPPEN Prove to the co-owners it is good for them collectively + individually Is it profitable? Make it feasible (mostly financially) Communication is key. Share info with the right people at the right time Meetings with General assembly, board, trustees But try to keep it cheap Keep quality high : local authorities bring trust, only good record keeps it 6

7 IS THE RENOVATION OF A COLLECTIVE BUILDING PROFITABLE? How to finance the renovation project? Energy savings Payback time between 15 and 30 years Average residency 7 years 7

8 IS THE RENOVATION OF A COLLECTIVE BUILDING PROFITABLE? How to finance the renovation project? Energy savings Green value of real estate A n A / B - r ated a p artment i s wo r t h a n a ve rage o f 1 2 % m o r e t h a n a F / G - r a t ed o n e. T h i s i s an a ve r age 30k i n c r ease i n t h e va l u e o f a 2 5 0k a p artment. 8

9 HOW TO FINANCE IT? Collective grants R e gion c o u ncil s u b sidy ( C o p ro d u r abl e) W hit e c e r t i f ic ates How to finance the renovation project? Individual grants Ta x c r e dits D i r e c t s u b sidies f r o m n a t ional / local a u t horities, e t c. Remainder S o f t l o ans T h i r d - p a rty f i n a n c i n g 9

10 THIRD-PARTY FINANCING Third-party financing consists of financing the cost of the energy retrofitting through the energy savings generated in the long run. The third-party financing company realises the project and provides the investment needed to implement the renovation works. After the works, the condominium repays the company over the long term, making it possible to have almost zero extra costs for the household. 10

11 THIRD-PARTY FINANCING Path tow ards the implementation of the third -part y financing March Third-party financing approved under French law May IEB framework programme of 400 million loan to support TPF vehicles in the context of the Juncker Plan: 400 million for French regions of which 100M to renovate 8000 to dwellings over the next four years in Ile-de-France August The Energy Transition law allows third-party financing companies to operate thanks to an exception to the banking monopoly The next steps Find a surety company Obtain ACPR (bank and insurance regulator) authorisation 11

12 FOCUS ON EIB LOAN Transaction feasible thanks to the guarantee provided by the EFSI to EIB Amount: 100 million Maturity: 22 years Tranches (draw-down): Max 32 (minimum 0.5 million) Eligibility : thermal retrofitting projects in condominiums and social housing sectors Project size: up to 25 million (total project cost) Financial contribution of the EIB credit line: up to 75% of the project cost 12

13 MAJOR ACHIEVEMENTS 8 condominiums have started the works phase (2000+ apartments) About 38 M works Creation of 608 jobs Another apartments in audit or design phase Energies POSIT IF is a reference for several French regions 4 out of 13 regions have created a public / private third-party financing company High success rate: between 64% and 86% (5% on other projects) 13

14 LESSONS LEARNT & SUCCESES Very positive to be a public private company on the condominium sector: it brings trust Build partnerships with existing companies on the market: it will make your offer faster and more accepted (subcontracting of studies) Very important to offer the condominiums a single contact point during the whole project (5 years!) Strong political support from the left wing regional government that initiated the project and the right wing governemnent that won regional election in Dec Our company is small: we need to network, share experiences and possibly share staff 14

15 LESSONS LEARNT, WHAT WE DID NOT -YET- SUCCEED ON Third party financing (TPF) has been long to implement because the legal national framework, check it TPF is still hard to implement because of surety obligation Decision making process is very long in condominiums: we still need to find way to shorten the whole business cycle (3 years of studies, 2 years of works) We have solutions for TPF financing on the medium term (4 years) but we need to find long term financing solutions If private sector does not address certain sectors, this is often because it is not a mature market yet Doing what has never been done always takes longer than you think 15

16 CASE STUDY 16

17 Paris suburb LES THIBAUDIÈRES BOUSSY-SAINT-ANTOINE (91) 350 appartments, 16 buildings Buildings in very bad condition Decreased real estate value High energy bill / low comfort About one third of «low» and «very low» income households 17

18 Surface de murs Panobloc : 1450 m² EXEMPLE : LES THIBAUDIÈRES BOUSSY-SAINT-ANTOINE (91) Maître d oeuvre: Grin architectes Entreprise de pose : Ecologgia Bâtimen Date de livraison des panneaux: Septe Niveau de performance énergétique : M Work programme 11 M Insulation by wood panel insulation Type de Panobloc : PR-11R, Panobloc Epaisseur du Panobloc : 330 mm Roof and floor insulation Changing windows and doors Renovating ventilation system commercial@techniwood.fr 18

19 FINANCING PLAN - EXAMPLE 3% 2% 14% Family of 4 living in a 3-bedroom apartment Cost: % Region subsidy Tax credit Remaining amount White certificates Collective loan (2,6%) Net cost = 97/month over 15 years* After 15 years = -62 /month * After energy savings deduction

20 FINANCING PLAN - EXAMPLE 27% 2% 14% Low income family of 4 Living in a 3-bedroom apartment Cost: % 81% Region subsidy Tax credit Remainder amount White certificates Low income subsidy Collective loan (2,6% interest) Net cost = 27/month over 15 years* After 15 years = -62 /month * After energy savings deduction

21 Public third-party financing makes large-scale energy renovation of buildings possible Join us! 21

22 THANK YOU FOR YOUR ATTENTION Raphaël Claustre T h e s o l e r e s p o n s i b i l i t y f o r t h e c o n t e n t o f t h i s p r e s e n t a t i o n l i e s w i t h t h e a u t h o r. I t d o e s n o t n e c e s s a r i l y r e f l e c t t h e o p i n i o n o f t h e E u r o p e a n C o m m i s s i o n, w h i c h i s n o t r e s p o n s i b l e f o r a n y u s e t h a t m a y b e m a d e o f t h e i n f o r m a t i o n c o n t a i n e d t h e r e i n. 22