Twelfth Financial Workshop in Paris, France

Twelfth workshop held to explore the financing of energy efficient step-by-step retrofits

Date: 23th March, 2016

Location: Paris, France

12th Financial workshop in Paris, France, Photos © LAMP


Welcome and Introduction by Simon Camal (LAMP) covering the EuroPHit project, with presentation of:

  • the quality insurance tools

 *PHPP9 with variant analysis

 *Certification of step by step retrofits with Retrofit Plan

 *Online certification platform

  • the financial analysis of case studies in France and from other partners

* investment cost for EnerPHit on single family house near Lyon 380 €/m², total cost slightly lower than low-energy variant

  • retrofit financial guidelines
  • economical analysis of quality insurance via cash flow simulation

          * specific funding for quality insurance needed

          * rate of return of a typical retrofit


Conseil Departemental du Val du Marne expressed its feedback on implementing retrofits to the EnerPHit standard, in one go or step by step:

  • Own 400 buildings, 1 million m², mostly educational buildings (kindergartens, schools, high schools). Energy bills 13 M€/y, 40 buildings connected to district heating
  • Budget for new build and retrofit 70-90 M€/y
  • New way of scheduling works: combine a maintenance strategy (decay analysis) with energy efficiency measures. This led to a new approach of property management: define series of retrofit measures for each building typology.

* For instance, retrofit in 1 step is the best option for kindergartens, from a financial and technical perspective

* Step by step retrofit is preferred for secondary schools. In this case, retrofit in 1 step takes too long or creates high annuities.

  • The authority has set up in 2015 a reduction target for its energy consumption. Danger here is to retrofit quickly to minimal energy efficiency standards, therefore creating lock-in effects. Approach followed is to give priority to quality over quantity, shift operations if needed
  • Question from Caisse des Dépôts: is it compulsory for you to aim at building certification in this context?

* Certification is an important element of the global strategy defined in 2015

* Certification must guarantee a level of quality

* Certify beacon projects to validate feasibility (5 secondary schools +  1 kindergarten)

* Then apply to similar buildings following simple rules on components and lighter quality insurance

  • How to embed energy efficiency in a global maintenance strategy, which includes other urgent issues such as access for disabled, fire protection, adaptation to new functionalities?

* Need to define a base variant with current practice (we know the investment and maintenance cost of the latest retrofits)

* We try to reach Passive House or EnerPHit, and prepare future steps such as renewable integration

  • Additional investment can be minimized considering variability of cost offered in tenders

* Example on a secondary school: Average total cost 22 M€. Deviation cost between tenderers 5-6 M€.


Caisse des Dépôts presented their financial offer and other public funding opportunities for local authorities

  • Prêt Croissance Verte offers soft loan to local authorities who build to Passive House Plus / Premium standards or French concurrent standard BEPOS-Effinergie 2013. This loan is also offered for retrofits without specific energy efficiency target. The idea is to intensify the retrofit market

* Overall budget for buildings: 5 G€ + extra funding from EIB in 2015-2016 : 1.5-2 G€

* Extra funding from the State for retrofit of public buildings at interest rate 0%, budget 1.5 G€

* Improved fixed interest rate compared to reference interest rate “Livret A”, accelerated release of funds in 3 months

* No variation of interest rate, redemption grant or other benefits if retrofit to higher efficiency standards

* EnerPHit is a proof of quality that will be valuable when

* Operations must be economically viable on an evaluation period of 20 years

* Building owners must ask Caisse des Dépôts in advance for large operations, funding only if work order recent

* Possibility to issue contracts with public authorities on secondary schools

  • New French law in preparation: make mandatory for local authorities to conduct energy audits and tender for retrofit measures, with a minimal energy consumption reduction of 25%. A good basis for step by step projects. Need to formalize intrinsic energy performance (corrected from weather variations and occupant contingency)


Caisse des Dépôts stated their needs when analyzing projects aiming at high energy efficiency

  • Certification is important for their analysis: need to rely on a third-party expertise
  • Do components inserted in EnerPHit projects have a higher lifetime?
  • Investigations about improving financing terms following energy performance, interest in KfW schemes, but current priority is the quantity of projects


Feedback on other financing schemes

  • CD Val de Marne have used white certificates on several operations. Financial gains equal money spent on subcontractor dealing with certificates, so no net financial gain observed
  • A one-stop-shop model of type Design-Bid-Build-Operate-Maintain has been experimented on a 1 secondary school.

* Define clearly duration of operation

* Good to have a unique contact legally responsible

* Contractors don’t want to include specific energy use (white goods…)

* Contractors only interested if good return rate, no will to tackle difficult situations like asbestos

  • Presentation by LAMP of leverage effect of public financing in buildings (study by Prognose): a department of Caisse des Dépôts focusing on investment studies similar topics, how to communicate on macro-economics effects of such policies


Financing renewable energy integration

  • Caisse des Dépôts chose to condition its eco-loan on new build to project which integrate renewable energy production
  • CD Val de Marne take part in a call for “plus energy communities” showcasing best practice to broaden renewable energy integration
  • CD Val de Marne install PV on roofs, invest in system and leave operation and maintenance to a contractor. The contractor covers its O&M costs by revenues of PV electricity sold to grid.
  • LAMP showed some figures regarding cost of photovoltaics: example of 150 €/m² including maintenance on a large office building
  • Caisse des Dépôts asked if passive house certification rewards renewable integration on a local scale, even if not directly on building. LAMP explained that the new primary energy renewable assessment method and the Plus/Premium certification scheme foster renewables on a local scale.


You can download presentations from Financial workshops or browse other downloadable EuroPHit materials here.