InnoEnergy, together with IREC and AIGUASOL, has developed new business model for facilitating the implementation of large-scale residential retrofitting actions. The study introduces three business models that function as Public Private Partnerships, each of them designed and described to clearly define the business process, the financial fluxes, and each of the different stakeholders and their required skills. The overarching goal of establishing a robust and easily replicable business model that increases residential retrofitting rates across Europe.
Antoni Martínez, senior advisor of InnoEnergy, said: “The residential retrofitting at district level is one of the main strategies of energy saving in our cities; the climatology and the social model of the countries of the Southern Europe present some characteristics that lead us to propose different solutions, although always oriented to reduce energy consumption, improve comfort, and therefore the health of its residents, and maintain or increase the value of housing. The models analysed in this study proposes an innovative approach that contributes to mitigating the risk of all the agents involved.”
Retrofitting actions has the potential to significantly benefit society, not just by improving living conditions and saving energy, but also by increasing property value, promoting the circular economy, creating or maintaining jobs in the building sector, and realizing savings for the health care system (due to healthier indoor living conditions).
Jordi Pascual, senior consultant at AIGUASOL, said: “Even so the technical solutions and the economic conditions are key points for retrofitting actions, the day-to-day experience says us that the main barriers to widely implement building renovation activities are mainly related to structural, organizational and administrative issues. After analysing several models, and with the agreement of different contributors and relevant stakeholders, the proposed Public Private Partnerships models introduces clear structures, roles and fluxes for existing stakeholders, resulting in win-win processes, which should be the basis for their wide implementation”.
The three proposed business models are based on the idea of establishing a Public Private Partnership between the city council and several private actors, including financial entities, while also implementing a participative strategy that involves end users (i.e. district residents) in the project and is explained in further detail within the Residential retrofits at district scale report. Each of the three models envisions new roles for existing private partners, presenting an opportunity for companies to participate in large-scale retrofitting actions. Jaume Salom, Head of Thermal Energy and Building Performance Group at IREC, said: “The report includes a detailed economic analysis which provides key performance indicators from the perspective of all the stakeholders involved. Sensitivity analysis of the main parameters in the economic model proofs the robustness of the model under different scenarios. So, future steps must focus on implementing pilot programmes using these three proposed models.”
To download a copy of the report and access the econometric models click here.