Successful Energy efficiency renovation projects thanks to One-Stop-Shop Assistance

Île de France Energies is an example of One-Stop-Shop created to support the energy renovation of condominiums, and implement the energy transition in the Region.

Energies POSIT’IF was created in 2012 as public-private partnership by the Île-de-France region. It is now called Île-de-France Energies. The mission of the SEM is to assist condominiums and small social landlords with their energy efficiency renovation projects, acting as a third-financer for a part or the totality of the project cost. Île-de-France Energies aims to:

  • Support the energy renovation of condominiums in Ile-de-France;
  • Support the actors of the building sector (public and private) in gaining skills on energy efficiency improvements.

The initiative was created to promote, organise, support and implement the energy transition of the Île-de-France region. It acts as an integrated service provider offering technical design, implementation and operations, financing and insurance services to owners of multifamily residential apartment buildings. The target audience of the service are 1 million multifamily apartment buildings or Condominiums (homeowners’ associations, social housing companies) with an EPC certificate of E, F or G (230 to 450 kWhep/m2/year), which represents 47% of the total residential houses in those classes. The target is achieving the label “BBC Effinergie renovation” (low energy retrofit) which is 104 kWhep/m2/year in the Region.

The aim is to use a significant amount of energy savings to pay for the investments. Île-de-France Energies acts as a public ESCO to integrate the different steps of the process, with an aim to reduce transaction costs (information, strengthening of the capacity of the home owners, feasibility studies, quality control, follow-up, etc.). Île-de-France Énergies’s shareholders are representing various entities comprising 14 collectivities from the Ile de France Region(61%) and the city of Paris (10%) 2 financial entities (including the Caisse des Dépots et Consignation for 9,7%), and benefits from a support of the EU.

The SEM covers all aspects of a renovation project:

  • Provision of advice and information;
  • Support to the finalization of the financing plan;
  • Possibility of third-financing;
  • Design and implementation of the energy renovation works;
  • Operation / maintenance and guarantee of energy performance.

Service offering

The OSS offers two operational business models.

  • In the first option, the condominiums collaborate with it on developing the plan and potentially in arranging financing. The actual implementation remains in this case in the hands of the condominium.
  • Alternatively, the OSS develops the financing and implementation/operation plan. It provides third-party financing (loan directly from the OSS or a bank loan) and can assist in the accession of other funds/grants. It also acts as an intermediary between the owners and the technical partners. The OSS accompanies the  condominiums from A to Z in their energy retrofitting works (including the follow up and the financing of the projects) and in exchange they pay a monthly fee for these services. The fee takes into account the energy savings; however it may still be higher due to the selected payment period and/or renovation measures that did not generate energy savings.

Network and operational capacity

The semi-public company  Île-de-France Energies counts with  director, technical expert, financial expert and project manager. It outsources and coordinates the architects, engineering companies, energy service companies,  and contractors.

The board of directors takes decisions on the investments. Furthermore, the Project Development Unit offers an Energy audit to identify the energy savings potential and financial implications. It establishes a mandate from the co-owners to the property management association (syndicus) and a contractual agreement that covers the energy renovation project. Structured partnerships have been developed with professional stakeholders in the energy efficiency and renewable energies sector and the building sector, with companies that meet the necessary qualification, expertise and commitment criteria for ensuring the quality of energy retrofits.

Financial model

In terms of financings, there are two cooperation models between the condominiums and Île-de-France Energies:

  • Île-de-France Energies can provide its financial engineering services to the condominiums. It develops a global financing plan for the building energy renovation which consists of individual financing plans adapted to each home owner. Individual financing plans can include self-financing of the apartment owners, grants and subsidies (national, regional or local) for which they are eligible and a bank loan. Condominiums can also take a collective loan involving all interested home owners. The condominiums pay the OSS for the renovation works as well as a fee to for its services. Ile de France Energies acts as an intermediary between the condominiums and technical partners that carry out the renovation works. However, it does not provide any additional financial sources.
  • Île-de-France Energies can as well provide its financial engineering services and additional financing sources to the condominiums. In this case, it develops a global financing plan for the condominiums; it seeks the third-party financing sources (in form of a bank loan) on behalf of the condominiums and provides them with additional financial sources from its own budget. It acts as an intermediary between the condominiums, technical partners and banks. The condominiums are in direct contact only with Ile de France Energies. They pay monthly (or semesterly) instalments and a service fee to the OSS which then pays back to the banks. The beneficiaries reimburse the renovation costs through regular payments (installments) which take into account the financial savings generated thanks to reduced energy consumption. However, the payments are not always equal or lower than the financial savings achieved. The condominiums may decide to pay higher installments and so shorten the pay-back period or, in some cases, the installments are high due to too high renovation costs that include measures that do not generate (or generate too little) energy savings.

Key success factors

In 2015, Île-de-France Energies reported accompanying 21 co-owner associations at different stages of development (audit, project assistance, design and implementation) covering about 3200 individual homes for a total investment of over 50 millions euros VAT incl. With an overall capital of 5.32M devided between diverse actors, Île-de-France Energies was in contact with 25 condominiums after 9 months of operation. 8 are negotiating a renovation contract, representing 1,700 housing units and € 25 M of investments. The project pipeline has increased to 60 condominiums, with a total of 18 contracts signed. In 2015 more than €30 M of works are to be signed, covering the renovation of 2553 apartments. Currently, the project has ended, but the ESCO/OSS is still operational.

Since 2013 Île-de-France Energies has carried out studies
for 55 condominiums, representing 7 200 appartments.

  • 3 100 have approved a renovation programme
  • 25 % of the households are low income
  • Renovation lead to an average 48 %, equal to 64 M€ investment and created or maintained 1019 FTE jobs
  • Île-de-France Energies is a reference for several French regions :6 out of 13 regions have created / are creating a public / private third-party financing company.

There are several reasons that can explain the success of this initiative: the strong political decision of the initiator (region Ile-de-France) and its partners, the continuous dialogue with national public authorities which helped overcoming legislative and fiscal barriers in the renovation of condominiums and social hosuing and lastly, the facilitation and promotion of the project by crucial actors such as consultants, local energy info points and agencies.

In the future, the SEM will support local authorities as well for the energy renovation of public buildings.


About


Country :
France
Region :
Île-de-France
Time frame :
2012 - 2016
Website :
www.iledefranceenergies.fr
Organisation Name Position Contact
AREC Marie-Laure Falque Masset marie-laure.falque-masset@iau-idf.fr
Ile de France Energies Raphaël Claustre Mowat raphael.claustre@idf-energies.fr