Warm homes for All

1. Warm homes for All

2. Energy poverty is one of the most alarming phenomena of our times • 87 million people live in poor quality dwellings • 54 million people cannot keep their home adequately warm • 161 million face disproportionate housing expenditure Effective tools needed to motivate Member States • 70% of the EU’s existing building stock is highly inefficient -> we need to renovate 3 % of the buildings stock/year • Opportunity, not a burden.

3. Affordable housing providers are eradicating energy poverty • Targeting energy efficiency of buildings at the energy deprived • direct effect on energy performance, environment quality • on growth (creating jobs, living in social homes increases purchasing power) • social cohesion (integration in a culturally diversified society) • measures help to save costs in other policy areas (health- renovated homes improve heath of their tenants and improve living circumstances

4. Data from the “Housing Europe COP21 Offer”

5. Fair Energy Transition • Inclusive • Affordable • Sustainable

6. Density is the answer but how? Most experts agree increased density can help the city: • Meet housing needs • work more sustainably and efficiently • improve living conditions The question is how to densify?

7. Infill & careful upgrading • A regeneration doesn’t always mean demolition and dramatic re-planning. • Infill & careful upgrading can: • uplift density • adapt tenure models • upgrade public realm • AdoRes seen by housing providers as a way to finance energy retro-fit while maintaining affordability

8. Challenges in the Social Housing Sector • Fair Energy Transition • Affordability • Work with community

9. Messages on EU Energy legislation • Adoptevidence-based national strategies for the renovation of buildings • Supply and demand, regulation and finance key elements, while affordability for both tenants & owners should be the objective (EPBD) • Neighbourhood = right level to design sustainability measures such as electro mobility (EPBD) and energy self-consumption (RED) • Look beyond buildings • Cost effectiveness of measures crucial • Guarantee for timely, effective implementation and increase of social acceptance (EED) • Promoteuse of RES in particular via decentralized energy production systems (RED) • Relevantskills can unlock the potential of this integrated approach • in fields of demand (building owners), supply (renovation companies), finance (loans & subsidies) and regulation (split incentives)

10. Ingredients of good renovation mix Refurbishment of public, cooperative and social housingneeds: • integration of EE with RES, when relevant and cost effective • industrialisation of the supplychain(use of prefabricated panels for instance) • adequatefinancingmixingloans, subsidies and contribution of tenants • involvement of tenants at all stages

11. Case StudyMarket uptake zero-energy-bill | Innovation project social housing in Netherlands, France and the UK

12. Case Study Day 3 | A new roof on house

13. Case Study Day 6/7 | Pre-fabricated, fully integrated solar PV / solar thermal roof systems

14. Case Study Day 8 | Scaffolding is moved

15. Case Study Day 9 | Final result

16. Structural and Investment Funds • Through energy efficiency and renewables/increasing social inclusion • Larger budget: 6.6 billion to housing (€2 billion in 2007-2013) • €5.24 billion (more than 79 %) will go for energy efficiency renovation of existing housing stock, demonstration projects and supporting measures. • €1.36 billion goes for housing infrastructure • Strategic focus: the key supported sectors are those which allow long-term, smart and sustainable development such as research, innovation, technology, and low-carbon economy. This approach is favourable for us. • Possibility of combining funds: allows to develop more complex projects • Estonia- EstFund, Lithuania-Jessica II

17. The case of Ireland, Portugal, Slovenia, Lithuania

18. Ireland- €84,5 m on energy efficiency • 1. Apartment complexes scheme: targeted at 2,000 older flat complexes in Dublin, Cork & Limerick. The scheme commences with a pilot this year. • 2. Social Housing Energy Efficiency Retrofitting Programme: funding to local authorities that have the greatest social housing targets and whom can return the maximum number of units to a lettable, energy efficient condition at reasonable cost. • Up to end of 2016, 5,475 vacant units were retrofitted in the region with €26.85 million • The average energy efficient work cost per unit in 2014 was €5,543, €5,929 in 2015, and €6,034 in 2016. • 3. The Better Energy Warmer Homes Scheme (€21m in 2017, €40 m in 2016): targets privately owned housing units of low-income households at risk of energy poverty. • improving the energy efficiency of the household at risk, reduce the general energy costs of households. • It is free of charge to low-income households vulnerable to energy poverty. • In 2016, 11,376 low-income households in the S&E region have had their energy efficiency improved

19. Portugal-€315 m for energy efficient renovation • Operational Programs of the North, Center, Alentejo, Lisbon and Azores -promotion of sustainable urban development as their first priority • 1/3 of the amount is allocated to energy efficiency renovation in social housing. • Regional Operational Programs have opened calls for applications with a total allocation of around €82 million. • to support the increase of energy efficiency and the use of self-consumption in social housing, to contribute to the increasing of the quality of the buildings, as well as for improving the well-being of generally underserved population segments, reducing the energy poverty of low income families. • Approved projects: urban rehabilitation of different urban districts and of socially excluded and dysfunctional neighbourhoods • Calvario, Valverde, Fernaode Magalhaes e Coosofi, Infante D. Henrique neighbourhood • €1 million to renovate social housing stock with the support ERDF funding (€814 573).

20. Project to improve the living conditions in social housing in the city of Leiria • €235.727,17 (€200.368,10 from ERDF, €37.734,96 national funding) • 2016 – 2018 • Renovation measures in 13 social dwellings in Leiria The Social District of Almoinhas is located in the Union of Parishes of Marrazes and Barosa, the most populous of the entire county of Leiria. Aim: to create decent living conditions in the social housing buildings of the Municipality and to guarantee the reception of families in the vacant dwellings, through rent on a supported income basis. • The project under the objective of ‘Promoting social inclusion and combating poverty’ is part of the vision that the current problems of degradation need to be resolved, and the neighbourhood’s housing stock need to be significantly improved.

21. Slovenia-€5 million projected to finance energy poverty • MAs are working on a definition on energy poverty (consultation on-going) • However, is not strictly necessary for the implementation of the program so they go ahead Activities are also planned in the area of promotion, education & awareness-raising. Preference given: to households facing inability to pay energy bills, have cold and humid living conditions, the emergence of health problems due to poor conditions, illnesses, households with low energy efficiency. Eligibility conditions: to be defined soon. Implementation in 2018: about 50 households (achieving 10% of objectives). The operations will have to be completed no later than 31st October 2022.

22. Lithuania-€320 million for energy efficient renovation • District-wide renovation, renovation under the Energy Service Company (ESCO) model, more inventive promotion and management of complex renovation. • Targeted economic energy saving potential: 5.2TWh in residential buildings and their engineering systems. • Jessica II (€320 million) with the aim of modernizing 37 000 apartments: • 2014-2020 • The three pillars: ERDF, public guarantee, large private investments. • Beneficiaries: Housing associations handling multi-apartment buildings • Possibilities of upscaling the available funding by attracting EFSI are being actively explored.

23. Other implemented projects 1) LogiOuest(Nantes, France) • 194 social dwellings were refurbished-USH (warmer and more affordable homes within less than 3 years) • Overall annual energy savings of 59.000 Euros and an upgrade to energy class B 2) “Los Limoneros” (In Malaga, Spain) • Retrofitting- focused on the improvement of the energy efficiency and comfort levels for the residents. • Investment for energy retrofitting of less than 30.000 Europs/dwelling. • Co-financed by the 75% ERDF and 25% from the City Council.

24. Horizon 2020 • € 30 956 million1 to help making renewable energy more affordable ->funds are available to support energy efficient buildings, industry and heating and cooling STORM (Sweden-Netherlands) • Innovative district heating & cooling network controller • Increasing the use of waste heat and renewable energy sources • 2 million eur -2 demonstration sites LEMON (Italy) • 15 million € of energy investments in 622 private and public social housing dwellings to achieve 40% energy savings • National and ERDF funds combined

25. PDA and EEEF Project Development Assistance • Helps public and private project promoters to develop sustainable energy investment projects • Project between€6 million to €50 million • Energy Efficiency, low-carbon technologies and smart cities and communities European Energy Efficiency Fund (€265 million) • Debt and equity instruments to mainly local, regional public authorities • Contributes to energy efficiency and foster renewable energy in the form of PPP • Investments should contribute to energy savings and reduction of greenhouse gas emissions

26. EIB loan Juncker Plan (EFSI) • Social and affordable housing is one of the EIBs priorities • UK, Ireland, France, Belgium and the Netherlands for many years • EIB encourages project proposals in new countries • Recently started investing in Malta, Poland, Spain, Portugal and Ireland • An opportunity to finance quick and cost-effective construction of new dwellings • Long-term investment schemes (as loan) • Cooperation with national public banks/other agencies • EFSI 2.0 to earmark 40% for infrastructure and innovation window for projects in line with COP21 commitments Investing in the sector is not “risky” but rather long-term with low return on investment. Low-cost capital funding needed

27. Recent Projects-EIB loan • €30 million for Energy renovation Fund in Latvia • €46 million for municipal investment schemes in Plock, Poland • €56 million to build 349 new minimum energy apartments in the Stockholm region, Sweden • € 180 million for the urban investment programme in the City of Örebro, Sweden • €50 million to rehabilitate 13 000 units to provide temporarily housing to the asylum seekers, France • € 120 m for refugee accommodation in Brandenburg, Germany • 1 billion GBP for the construction of 20 000 affordable homes, United Kingdom

28. Examples of EFSI support • € 500 million support for the construction of 12,000 energy efficient housing (intermediate) in France • € 150 million for a risk-sharing instrument for renewable energy loans In France and Germany (social housing could benefit) • € 250 million to the Urban Renewal Strategy of the city of Lisbon, Portugal • €125 million EFSI for the construction of 2 198 rented social housing units in Barcelona, Spain • €40 million for the construction of 524 energy efficient rented social housing units in Navarre, Spain

29. CEB loan • Social housing is one of the eligible sectors • Often finances sustainable/affordable housing for vulnerable populations, including large families, young or low-income people, refugees • Eligible: construction/refurbishment of housing and the conversion of existing buildings for residential use in order to provide decent and affordable housing Portugal-rehabilitation of run-down neighbourhoods & ensuring affordable housing. • A €15 million loan agreement • In housing units built more than 30 years ago, located in urban rehabilitation areas.

30. Mobilising the necessary funding remains a challenge Long term payback time on investment-> reducing interest of private investors For smart use of the funds-we need a better understanding of the project management and financial support One wayforward: the guarantee of energy performance and the golden rule • 20 to 30 yearguarantee of a maximum energyconsumption for the wholedwelling • Need for a sustainable business model (monthlyfixed payement by tenants; role of renewableenergy) • Golden rule: the overallcost of living should not behigherafter the renovationthan an average of previousyears