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TABLE OF CONTENTS

TABLE OF CONTENTS INTRODUCTION THE EUROPEAN UNION POLICY CONTEXT TECHNOLOGICAL DEVELOPMENT LEGAL FRAMEWORK FINANCIAL ENGINEERING CITIZENS’ INVOLVEMENT ENERGY PRODUCTION AND DISTRIBUTION SYSTEMIC PROJECT MANAGEMENT CONCLUSION

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Disclaimer: the sole responsibility for the content of this report lies with the authors. It does not necessarily reflect the opinion of the European Union.

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A guide for integrated energy efficient renovation of social housing
Cities’ advice for greater EU support to green social housing
CASH (Cities’ Action for Sustainable Housing) is a network of 11 partners (10 cities- Utrecht, Tatabanya, Sonderborg, Les Mureaux, Brindisi, Bridgend, Frankfurt, Yambol, Eordea, Echirolles and one region – Region Rhône-Alpes) led by the city of Echirolles in France. The ambition of the CASH project is to propose new solutions and promote new policies for the sustainable renovation of social and affordable housing units in the European Union. The network has organised local technical seminars and meetings in order to exchange experiences and collect good practices on issues such as the legal framework related to refurbishment of social housing, the involvement of citizens, the technical and financial aspects of energy efficiency investments.

1. Technological developments
Technological possibilities for energy efficient renovation are developing fast. Availability of techniques is not a guarantee that they always will be used in the best and most effective way. CASH partners have made some suggestions regarding energy refurbishment of social housing in cities. General justification: Any renovation plan includes the choice of approach, target, energy sources, technical installations, devices and their adequate sizing. It also requires the implication of stakeholders throughout the process. The renovation approach, whether global or on a step by step, is indeed a major issue. Many stakeholders, in particular communities and social landlords, often ask themselves if they should act on a limited number of buildings to achieve expected EE renovation targets (80 kWh/m².year) or if they should intervene on few of the components (i.e. insulation and glazing or energy supply and equipment, etc.) over a large number of buildings. Careful decision should be taken so as to keep along with the municipal energy reduction goals, available financial resources, other obligations to fulfil, as well as the time lag between major renovations (average of 20 to 30 years).

C i t y H all of Ec hir olles wher e the kic k- of f meeting of the CAS H net wor k was held in S eptember 2 010 .

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Concrete suggestions: -M  ake a survey on the heat energy demand (heating and domestic hot water DHW). -L  ook for potentials of reducing demand (through insulation, water saving devices…). -M  ake a comparison calculation of different heating systems (only boiler, boiler and CHP, heat pump, biomass heating systems -stoves, boilers…-, district heating), comparing not only acquisition, installation and maintenance costs, but fuel dependency and emissions (CO2 and others) - keeping in mind that prices for different fuels may develop differently in the future. -M  ake a long term 15-20 years calculation. To avoid ad-hoc decision making, Social landlords and house owners should make a structural renovation plan, where technical, social and economic aspects as well as environmental aspects play a role. The grey (hidden) energy, including the energy required in transporting and in recycling the different materials / technology at the end of their life cycle, should be taken into account in their selection.

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3. Financial instruments
In order to improve the financing possibilities for energy efficient large-scale renovation operations, the CASH network has proposed a series of recommendations, presented as the ‘Frankfurt resolution’. General justification: It has been estimated that the comprehensive energy renovation cost for a dwelling, is in average 23,000 Euro1 (in France). In order to reach the European CO2 reduction goals for housing, approximately 70 to 180 million housing units in the European Union (EU) need to be renovated according to low energy consumption standards. This would require from 1,500 to upwards of 4,000 billion Euros of energy refurbishment investments in the residential sector before 2050, which represents roughly 27% of the energy consumption in the EU. How can this be achieved? To reach national and international climate and energy goals, more funds and greater contributions are needed from Europe and from national governments for all homeowners. The available financial instruments should be: based on long-term planning, be better coordinated. Concrete suggestions: - National and regional revolving funds (supported by additional fees on rent or energy bills) can be an important instrument, favouring long-term and large-scale projects. - Independent third-party managing entities should be created or supported to organize technical, financial and organizational aspects and monitor the measures. They could act as a facilitator between landlords/owners of the housing units and tenants. The role can be taken by local/regional foundations or energy service/supply companies or even by tenants’ organizations. - To implement energy improvement in an integrative and optimum way, measures to reduce other running costs for water, electricity and waste -“the second rent”should be included. - European funds such as the European Regional Development Fund (ERDF) should not only be provided for energy measures in general, but should also be focused on social housing with an integrative approach (energy, living environment, maintenance and integration).

2. Legal Framework
Based on the barriers, needs and enabling factors, CASH partners have identified recommendations for an effective energy efficiency legal framework, agreed in the following ‘Brindisi Manifesto’. General justification: As we showed in the introduction, there are many EU legislative texts that applied to the renovation of social housing in cities. Not only the EU directives on energy or the Structural Funds regulation but also for instance the Public Procurement Directive or national regulations on rent setting. Cities and Managing authorities have to implement this legislation and gain expertise of how to make it positive for local projects. Concrete suggestions: - Create local clusters on green social housing. Local clusters may be developed for the whole supply chain of energy efficient renovation from supplier, planners, architects via installer, to users. In such a cluster Quality management can be developed, using energy labelling. - Flexible mechanism for rents to fit to local context (deprived neighbourhoods) and a form of protection from rent increase for existing social rents should be ensured.

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4. Citizens’ involvement
Key recommendations for an effective citizen involvement in Energy Efficiency (EE ) renovation process and in the reduction of energy consumption are provided by CASH partners through the “Bridgend resolution”. General justification: Combating climate change needs ambitious policies and Urban Climate Policy can only be effective with citizen participation, for the following reasons. Firstly, in the housing sector much energy can be saved, not only with technical measures, but also with behavioural change. Studies show that around 10% of energy can be saved only by routine behaviour change (switching off lights, lowering temperature, etc.). Secondly, many technical energy efficiency measures will be less effective if the related behavioural change is not carried out. Thirdly, there is the “investment-behaviour”. The choice to invest in buying energy efficient household appliances is depending on the knowledge and awareness of the public. For these three reasons citizens’ involvement is an indispensable and essential part of any climate change policy. Concrete suggestions: CASH partners give the following advice: It is important to involve citizens at all stages of a policy, for instance : - from the planning phase and during all stages of the renovation process for the co-conception of energy efficient renovation to ensure an appropriation of the equipment and systems and the proper functioning of the renovated EE buildings. - In the co-creation of schemes with tenants not only to improve the energy efficiency of homes but to improve citizens health and their environments in neighbourhoods to give ownership and empower tenants to include energy efficiency measures and change behaviours. To reach that objective, CASH partners suggests for instance to use of a mixture of innovative tools favouring exchanges between all stakeholders, such as independent energy advisors, trained champions, ambassadors of energy, trained to change behaviour and attitudes and educate citizens in realising the benefits of energy efficiency renovation.

5. Energy production and distribution
Key recommendations for efficient energy production and distribution systems for social housing are provided by CASH partners through the Sønderborg declaration. General justification: Energy efficient renovation deals not only with technical aspects of insulation, heat and ventilation systems, but with the energy sources and their distribution to the housing units, affecting costs paid by tenants and CO2 emissions. How the renovation can take place, the technical possibilities and the efficiency of the measures are often related to the energy forms and sources that are available for the building. The carbon emission per unit of energy varies strongly between different energy mixes, as well as the cost per energy units. That is why CASH partners have suggested to use strategic energy planning in order to choose the most suitable energy scenario for a given city (for instance low cost energy scenario or lowest impact energy scenario?) and most suitable energy sources. Fossil energy supply is characterized by low per kWh construction costs and high production costs, which represents variable energy costs for the end user. Renewable energy supply is characterized by higher per kWh construction costs but very low production costs and the costs per energy unit. Concrete suggestions: - Diversification of several green energy sources is important and should be encouraged. - Green Combined Heat Power cogeneration should be promoted, because it is a flexible and efficient method for energy transformation. Cogeneration offers tremendous efficiency and cost savings (more than 30% of total primary energy compared to separated production) and can be implemented by energy companies (contracting), the social land lords or tenants associations. - Communities of tenants can be involved in the production and distribution of renewable energy, to keep transport lines short and fixed costs low. - European directives and funding should take into account, that social housing building blocks and areas which need to be modernized may be the nucleus of local energy distribution grids, thus giving better practical and economic conditions for the implementation of cogeneration units and transforming the supply from fossil fuels to renewables. - Regions should use more than 10% of their European regional development fund (ERDF) allocation for the modernization of the energy production field linked to social housing

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6. Social housing energy efficient renovation project engineering
Key recommendations for an efficient social housing energy renovation project are provided by CASH partners through the Yambol declaration. General justification: During the 2 years of the implementation phase of the CASH project, several topics impacting the energy efficient renovation of social housing were covered, including technological, legal, financial, social and energy production components. It is however essential to ensure the appropriate use of these ingredients through the adequate participation of the different groups of energy renovation actors and the development of synergies between them. Such an optimization of the engineering and management of a social housing energy efficient renovation (SHEER) project should contribute to raising the efficiency and lowering the cost of SHEER operations which deal with low income tenants &/or owners and which have to be replicated on a large scale, social housing representing 12% of European housing stock and 20% of CO2 emissions. Concrete suggestions: - Develop a new model ensuring a systemic approach of SHEER project integrating social, political, environmental, legal and financial components and competences. - Set-up an independent project management body specifically created for the project, integrating critical stakeholders. - Involve as many strategic stakeholders as possible in the planning phase - Take into account the different timescales of the stakeholders and ensure actions in line with the different needs. - Ensure the use of technology: energy efficient, simple to use, requiring low and easy maintenance, applicable to large-scale operations, with competitive price - Match the funding schemes with the timeframe / rhythm of the project and allow adjustments according to the project evolution. - Provide the end users with project details at the different stages to increase transparency and to improve public consultation.

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The European Union policy context
Cities consume between 60 to 80% of energy production worldwide and account for a roughly equivalent share of global CO2 emissions1. How cities grow and operate influences energy demand and thus greenhouse gas emissions. Lifestyles, spatial form and public transport availability but also the way housing is built and used are crucial. Taking this reality into consideration, the European Union has adopted a wide range of initiatives (pieces of legislation or soft measures) that have an impact on the way cities can contribute to the mitigation of and adaptation to the global climate warming. Residential buildings which count on average for 40% of the energy consumption and 30% of CO2 emissions in cities are a key sector to deal with, if cities are to deliver the necessary energy revolution that will allow a better mitigation of and adaptation to climate change. One can classify the EU initiatives in the field of housing and energy in 2 categories:

• Initiatives that impose new standards and therefore will bring about short-term costs • Initiatives that will help cities cope with this short term costs
The first category is made essentially of the legislation related to the energy efficiency and energy performance of buildings. The recently adopted Energy Efficiency Directive (EED) is deemed to be an important step forward to reach the objective of 20% reduction of energy consumption in the EU by 2020 compared to 2005. Some of the most important new provisions with an impact for housing are the following: - Member states are required to implement a set of binding, flexible measures and set a national energy efficiency target - which would have to be 20% energy savings for the EU as a whole by 2020. - Energy companies are requested to reduce their energy sales to industrial and household clients by at least 1.5% each year;

1 http://www.oecd.org/gov/citiesandclimatechange.htm

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- A 3% renovation rate for public buildings which are “central government-owned and occupied”; - An obligation on each EU member state to draw up a roadmap to make the entire buildings sector more energy efficient by 2050 (commercial, public and private households included); - The new directive also includes additional measures on energy audits and energy management for large firms, cost-benefit analysis for the deployment of combined heat and power generation (CHP) and public procurement. - An article (art.15) refers to the financing mechanisms that have to be set up in order to fulfil the new obligations (in particular national energy efficiency funds) Another Directive has a direct impact on how housing is built, renovated and used: the Energy Performance of Buildings Directive (EPBD). The EPBD is the main legislative instrument at EU level to achieve energy performance in buildings taking into account outdoor climatic and local conditions, as well as indoor climate requirements and cost-effectiveness. The main elements are : - Extension of minimum requirements to all new and renovated buildings - Strengthening Energy Performance Certificates (EPC) by: Independent control system for EPCs Publication of the EPCs in all commercial announcements Extension of display (>500m2, 2015>250m2) - Methodology for calculating cost-optimal levels of minimum energy performance requirements - Introduction of “nearly zero energy buildings” (NZEB) for new building by 2018 To have an overview of the implementation of those 2 directives2, we have put the timeline below (MS = Member States) The second category of EU initiatives in the field of climate change and housing refer to the legislation and soft measures that are supposed to help cities coping with the new standards in terms of energy efficiency. The EU structural funds fall under this category as the new provisions3 give new opportunities for regions and cities to support social housing in particular in the field of energy efficiency. There are at least 3 areas where investment in housing could be co-financed by the European Regional Development Fund4:

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1 Energy efficiency:
Former objective 2 regions (the most developed EU regions in the EU) will have to dedicate at least 20% of their operational programmes to investment in supporting the shift towards a low-carbon economy in all sectors. In particular investment should be made to support energy efficiency and use of renewable energy in the housing sector; there is therefore no ceiling any more for investment in energy refurbishment in housing, which means that a region is free to invest as much ERDF as they want on energy refurbishment in housing. One have to note that reference is made of housing sector in general, which means that every kind of housing (including cooperative housing) is eligible to support.

2 Social infrastructures:
The European commission foresees the possibility to invest in social housing under 2 circumstance: (a) investing in health and social infrastructure which contribute to national, regional and local development, reducing inequalities in terms of health status, and transition from institutional to community-based services; (b) physical and economic regeneration of deprived urban and rural communities;

2 For further information see also : http://www.powerhouseeurope.eu/policy _work/eu_impact/

3 At the time of writing, the new legislation was still subject of negotiation between the European Parliament and the Council of Ministers. Minor changes might therefore come up from what was proposed by the European Commission. 4 http://ec.europa.eu/regional_policy/sources/docoffic/official/regulation/pdf/2014/proposals/regulation/ erdf/erdf_proposal_en.pdf

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3. Urban development:
The regulation stresses that at least 5% of the ERDF resources allocated at national level shall be allocated to integrated actions for sustainable urban development delegated to and directly managed by cities. It means that cities will manage at least 5% of the ERDF national pot directly to support urban development/renewal. Furthermore cities will be allowed to support pilot projects and studies to test innovative solutions linked to sustainable urban development. There is therefore a great scope of cooperation between cities and affordable housing organisations. The European Social Fund also gives new funding opportunities for climate change related initiatives in the housing sector, since it could support the “shift towards a low-carbon, climate-resilient, resource-efficient and environmentally sustainable economy, through reform of education and training systems, adaptation of skills and qualifications, up-skilling of the labour force, and the creation of new jobs in sectors related to the environment and energy”5 Beyond the Structural Funds, we have to mention a “soft” initiative which works as a catalyst of the efforts of cities to cope with the energy efficiency challenge: the Covenant of Mayors. After the adoption, in 2008, of the EU Climate and Energy Package, the European Commission launched the Covenant of Mayors to endorse and support the efforts deployed by local authorities in the implementation of sustainable energy policies. In order to translate their political commitment into concrete measures and projects, Covenant signatories notably undertake to prepare a Baseline Emission Inventory and submit, within the year following their signature, a Sustainable Energy Action Plan outlining the key actions they plan to undertake. Beyond energy savings, the results of signatories’ actions are manifold: creation of skilled and stable jobs, not subject to delocalisation; healthier environment and quality of life; enhanced economic competitiveness and greater energy independence. There are currently more than 4000 cities that have signed up to the Covenant of Mayors, including most of CASH partners. To summarise the policy context, we can say that cities are acting in between new collectively agreed constraints from the EU and new opportunities as well. CASH partner cities have developed during the project recommendations addressed to the managing authorities of the funds and more generally EU decision makers on how to make the best use of EU opportunities in that field. The following section presents these recommendations.
5 http:/ec.europa.eu/regional_policy/sources/docoffic/official/regulation/pdf/2014/proposals/regulation/esf/ esf_proposal_en.pdf

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TECHNOLOGICAL DEVELOPMENT

• What to do? • Which technology to use? •W  hich energy- efficient renovation approach to adopt? • Is certification needed? • Is labelling important?

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Content

Introduction & subject significance
A network of 11 European city and region partners involved in the European URBACT “Cities Action for Sustainable Housing – CASH” project, upon the lead of Echirolles city (France), is working on issues of energy efficiency (EE) and sustainable renovation of social housing. In that frame, the aspects of technological development, legal framework, financial engineering, citizen involvement, energy production and project engineering are being analysed during thematic seminars. Each leads to the production of a mini-guide presenting the state of the art on the subject, key issues, advice with associated experiences in partner cities and sources of information. This edition, covering the theme of technological development is the 1st in a series of 6 mini-guides.
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STATE-OF-THE-ART The envelope of the building Envelope air-tightness The technical installations Energy production and transformation Monitoring Some hints to help choosing energy system and technological aspects KEY ISSUES DISCUSSED Certification Energy performance labels Renovation approach EXAMPLES FROM PARTNERS Energy renovation plan of social housing, Rhône-Alpes Region, France Decision making tool: renovation in a portfolio strategy, Utrecht, The Netherlands “Shared energy skill center”, Les Mureaux,France CONCLUSIONS & RECOMMENDATIONS MORE TO LEARN

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Which technology to use? Which renovation approach to adopt? Is certification needed? Is labelling important? This Mini Guide on Technological development helps pinpoint: the key elements to focus on (heating systems, insulation, glazing, ventilation…) when renovating, as well as, the renovation type and the approaches, all issues tackled by the European directive 2010/31 EU on the energy performance of buildings. Its purpose is to give practical support to cities interested in identifying effective measures to enhance energy performance of existing housing stock.

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STATE-OF-THE-ART
The main objective of this overview of main technological development and techniques is to provide local communities with key elements to consider and choices to make when planning energy renovation. It will cover: • the envelope of the building and the envelope air-tightness; • the technical installations; • energy production and transformation; • monitoring.

While performing wall insulation, control of moisture balance and condensation in walls is key. Since the impact of thermal insulation on water vapour dissemination is low, vapour diffusion retarders available as membranes or coating are used.
Its disadvantages: it reduces residential area, it often requires occupants to move temporally and it wears an additional risk of moisture problems.

• New is the use of “Ultra-light-weight aerated concrete”. Next to having a low thermal

The envelope of the building
Energy efficient (EE) material and appliances for walls, roof, ceilings and windows, are synthesized hereafter:

Wall
• The effective insulation or inertia is key. Most common is the insulation of the
outer walls. Insulation panels are typically made of polystyrene foam, but mineral fibre has much better fire protection values (compulsory for high rise buildings). Natural insulation products, such as cellulose flakes, wood fibre mats, hemp, sheep’s wool, etc., do not underperform when compared to man-made ones. Instead they are often far better in terms of performance, durability, in addition to providing health benefits. Furthermore, they present a lower carbon footprint and grey energy and Offer the characteristics to allow protection from the cold during winter and optimum heat protection during summer. In presence of cavity walls, cavity can be filled with insulation material as perlite. New is to fill the insulation material cavities with gas (e.g. CO2) or vacuum. However this technology has to make its proof: uncertainty of keeping the vacuum over time exists, insulation cannot be punched and vapour migration over the aluminium cover is still an unknown factor. With regard to Silica-aerogel based insulation, they are only available in semi-transparent glazing.

conductivity, this material is also hygroscopic (moisture buffer) and has low water vapour resistance. While performing wall insulation, control of moisture balance and condensation in walls is key. Since the impact of thermal insulation on water vapour dissemination is low, vapour diffusion retarders available as membranes or coating are used. They reduce the rate at which water vapour can move through the building envelope and prevent air leakage through the envelope. Multiple layers of paint in existing housing units act already as vapour diffusion retarders.

Roof
The roof is most exposed to environmental influences. For individual houses it is the first criteria to be considered. High insulation thicknesses are highly recommended. In addition, a special importance has to be given to high air-tightness otherwise this can lead to moisture damage, especially in the wood construction.

Top floor ceiling
For the insulation of the top ceiling, insulation boards (mineral wool, foam...) or beds (perlite, cellulose) are possible. The insulation is placed on the ceiling and/or between existing beams. To prevent cold air flow around the insulating material, joints must be avoided and insulation boards should be laid with staggered joints. For uneven surfaces with many penetrations, the bedding of perlite or cellulose flakes offers a possible technique. Green roof installation can reduce cooling loads on a building by 50% or more, but they have to be correctly built to avoid water leakage and material degradation and their maintenance cost have to be integrated.

• Ventilated curtain wall is an alternative to the thermal insulation

panels. It consists of a sub-structure (wood or aluminium profiles) attached to the outer wall, with insulation material inserted in between and an air gap remaining for ventilation between insulation. This technique allows avoiding moisture and mold. • Internal insulation offers an alternative for houses with facades worth preserving and is less expensive than external insulation.

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Basement ceiling
To reduce the heat losses from the basement, insulating plates can be attached to the basement ceiling. For uneven or vaulted basement ceilings, airtight cloths can be attached acting as air chambers so as to form a natural insulation layer.

The technical installations
Ventilation
Central mechanical ventilation uses a ventilator, moving the air from the most burdened rooms (kitchen, bathroom and toilet) via a pipe system to the exhaust. The result is a slight negative pressure in the building, which causes filtered outside air to stream, via supply valves in the outer wall, to living areas. Energy savings can be gained by the choice of ventilator, the exhaust grill and by demand controlled or CO2 controlled exhaust. Hygro-adjustable ventilation and double flux ventilation are the most commonly used ventilation systems and are widely available. The first allows energy savings through the reduction of airflow (0,3 vol/h) but without control on indoor air quality (its reduced flow requires the use of indoor materials free of volatile organic compounds and formaldehyde). The second allows energy savings without reducing airflow (0,54 vol/h) through heat recovery from extracted air. New solutions are oriented toward small decentralized devices, with simultaneous or alternated blowing and air extraction providing ventilation for a single room. They can be integrated in windows without requiring any ventilation network hard to install in existing housing units. These are not yet widely available.

Windows
Modern windows with heat-resistant glazing offer a significant reduction in heat loss (about 40 to 70%). This is achieved by an invisible metallic layer (keeping heat inside) and an inert gas filling between the panes. Three-pane insulating glazing (Ug = 0,5 to 0,6 W/m²K) is available on the market, offering additional heat loss reduction of 30% compared to the two-pane windows and is becoming widely used. Their prices vary and can increase considerably the budget of a renovation operation. Not only should the U-value of the glazing be known, but also the one of the entire window influenced by the quality of the frame. Highly insulated frame exist, as the passive house window. If the window frame is covered with insulation up to 2 to 4 cm, an installation nearly free of thermal bridges is guaranteed. New is double vacuum glazing (Ug = 1,4 W/m²K), but they are still very expensive.

Energy production and transformation
There exist several independent energy supply units that can be installed at building and house scales for heating and for domestic hot water (DHW) .

Envelope air-tightness
Attention should be paid to achieve a good balance between energy efficiency (air-tightness and air renewal) and sanitary conditions. Air-tightness (air permeability or leakage rate) of the envelope is an essential issue to keep in mind. Indeed, the control of infiltrations coming from: joinery-wall, joinery-floor and roof-wall junctions, as well as from expansion joints, sheaths, evacuations, electrical conduit, traps, rolling shutter, etc., must be ensured, knowing that they can generate up to 50% overconsumption of heating in well insulated housing units. It is critical that any tape and sealant used should maintain a high flexibility over time to ensure it copes with differential movement and to resist high and low temperatures over the lifetime of the building. It should, as well, perform under high humidity conditions.
Top left in orange indicating infiltration from rolling shutter after insulation, Echirolles, France.

Heating

• Biomass heating

Biomass is a renewable low carbon fuel, producing a fraction of the carbon emissions of fossil fuels if correctly managed. A wide range of biomass fuels can be used: virgin wood, energy crops, agricultural, food and industrial residues. Most widespread for small scale heating systems are wood pellets and chips from round wood. There exist several types of biomass heating systems, the most commons being stoves, available from room heaters of 1.5 kW up to around 12kW, and boilers > 25kW. Biomass-fired boilers can be integrated into existing heating systems, and are therefore a real alternative in renovation projects if adequately selected (high performance and low particle emission). • Condensing boilers Condensing boilers are a further development of the low-temperature boilers. They are the most energy efficient boilers since they use two heat exchangers: one taking the water vapour (hot gasses) produced from burning the hydrogen

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content of the fuel to heat the water coming back from radiators into the condensing boiler, one capturing the heat from the condensation process during the cooling of the water vapour which condenses into liquid water. The effectiveness of this condensing process depends on the temperature of the water returning to the boiler. System design and installation are key (longer chain of distribution giving cooler water). Since condensation boiler is a low temperature device it is recommended by Decrees in many European countries in case of renovation / reconstruction. • Passive and active Solar space heating systems These solar heating systems with air heat collectors (glazed or unglazed) or with liquid collectors, can be > 25 times more cost effective than solar electric systems. Evacuated tube solar collectors mounted on the roof or on another structure should have a high performance so that high temperatures can be achieved even with cold outdoor conditions. • Electric heat pumps A heat pump can provide heating or cooling, moving heat from ‘a natural source’ - at the highest temperature (outside air, soil, groundwater, water body, with constant temperature from 5-10°C), to a ‘heat sink’ - at the lowest temperature. To keep this thermodynamic cycle, the heat pump needs electricity from an electric or gas engine, or from renewable resources. Most cost-effective are air / water heat pumps, but these bivalent systems are less efficient. Air source heat pumps are the least efficient but can still be used in low energy consumption dwellings. They have the disadvantage of high outside temperature differential which leads to lower efficiency. Geothermal heat pumps, since they draw heat from the ground or groundwater which is at a relatively constant temperature all year round, have typically higher efficiency but are more expensive, requiring excavation. A performance coefficient of COP > 4 should be selected (for 1kWh of electricity consumed, 4 kWh of heat are produced). Most efficient systems have a COP of 7. Their capacity has to match heating and cooling demand without being undersized (risk of inadequate cooling) or oversized (risk of inappropriate dehumidification). Heat pumps most need additional heat source to cover peak consumption (cold days, etc.). Intelligent heat pumps (as Syd Energi units installed in Sonderborg, Denmark) with a control unit collecting weather data, households consumption and electricity prices, produce heat when prices are low and provide heat-through their heat-storage device, at peak consumption. • Co-generation units - Combined Heat and Power (CHP) Cogeneration units (Combined Heat Power - CHP) generate heat and electricity simultaneously, the heat resulting from the production of electricity or the reverse. This decentralised energy production system avoids transportation and reduces

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Cogeneration units decentralised energy production system avoids transportation and reduces the carbon footprint. CHP saves more than 30% primary energy and CO2 compared to separate production of heat and power
the carbon footprint. CHP saves more than 30% primary energy and CO2 compared to separate production of heat and power. There exist solutions from micro CHP (<36 electrical kW, 1-5 electrical kW) for single family house, 50 electrical kW for housing blocks and up to several 100-1000 electrical kW district heating nets for social housing districts. CHP units work mostly on natural gas but a wide range of biomass fuels can be used (biogas, wood, sewage sludge…), their system being designed to accept high moisture content material. It is to be noted that CHP is most suitable when there is year round demand for heat to balance the demand for electricity. • District heating More and more social landlords and owners adopt district heating. In the city of Echirolles (France), it heats more than 75% of social housing units. This system distributes hot water (or steam) to connected buildings and individual houses, through highly insulated flow and return pipes and heat exchanger (substation) within each building. The heat is often obtained from a cogeneration plant burning fossil fuels (oil / natural gas) or biomass, although single boiler installation, or geothermal heating or central solar heating can also be used. District heating avoids costs of energy when based on biomass or renewable energy sources and reduces investments in household or building heating equipment. However, it requires important initial investments, thus being less attractive for areas with low population. With CHP, district heating has the lowest carbon footprint of any heating system. In itself district heating is approximately 30% more efficient. However, ownership monopoly issues should be taken into account.

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Domestic hot water (DHW)
• Solar Water Heating systems (SWH)
They can cover up to 2/3 of the hot domestic water heat. Simple devices exist with a storage tank mounted above solar collectors on the roof (‘closed-coupled’ SWH). Others have storage tank ground or floor mounted. In winter there can be sometimes with insufficient solar heat gain to deliver sufficient hot water. The performance of an SWH system may be defined by its solar fraction (corresponding to the fraction of a building’s water heating energy demand he can meet) which depends on the solar characteristic of the system, but also on the water-use pattern and on the solar resource. • Heat pump using exhaust air An integrated hot water heat pump which actively uses up to 70% of the energy from exhaust air (from ventilation systems) to ensure central domestic hot water preparation all year round, independent of the existing heating system.

Some hints to help choosing energy systems and technological aspects
• Make a survey on the heat energy demand (heating and domestic hot water • Look for potentials of reducing demand (through insulation, water saving • Make a comparison calculation of different heating systems (only boiler, boiler
devices…). DHW).

Monitoring
Monitoring devices (i.e.: individual meters, check meters, master meters and digital smart meters) are necessary to measure the impact of renovation on energy consumption, to evaluate the effect of each new technological and technical implementation, to identify possible malfunctions and to get knowledge on the behaviour of the occupants so as to promote energy conservation measures and to keep the energy performance of the housing unit. However, instrumentation should be easy to use, an energy baseline should be available, data must be reliably recorded and stored, measurement duration should be adapted to the monitoring objective and sample size and structure should be representative. Feedback of metering results should be fast, clear and understandable to lead to action and to be directly translated into costs related to the energy bill. Clear communication is needed.

and CHP, heat pump, biomass heating systems -stoves, boilers…-, district heating), comparing not only acquisition, installation and maintenance costs, but fuel dependency and emissions (CO2 and others) - keeping in mind that prices for different fuels may develop differently in the future. • Make a long term 15-20 years calculation. To avoid ad-hoc decision making, Social landlords and house owners should make a structural renovation plan, where technical, social and economic aspects as well as environmental aspects play a role. The grey (hidden) energy, including the energy required in transporting and in recycling the different materials / technology at the end of their life cycle, should be taken into account in their selection.

KEY ISSUES DISCUSSED
Certification of materials and of buildings, aspects of energy performance labels, as well as renovation approaches, were the key issues discussed during the CASH thematic seminar on technological developments held in Utrecht in January 2011. Here are main elements identified:

‘La Bruyère’ BBC level, renovation OPATB program, Echirolles, France.

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Certification
Certification of materials
Even though the environmental aspects of products do not yet play a big role in the certification process of the European Organisation for Technical Approval, specialised databases exist of validated and labelled building materials based on Life Cycle Analyses (carbon emission and energy used during material production, transportation, recycling...). Not all national validations come to the same results, depending on the assumptions made in the calculations and on differences made on how the materials are being used or applied. In the Netherlands a national calculation system is being developed, bringing at least seven other systems together.

Certification of building is not mandatory but allows ensuring that specific energy efficiency (EE) targets are met. There is not one standard European certification tool but several national certification tools.

Certification of buildings
Certification of the building, demonstrates its commitment to energy efficiency, site sustainability and indoor environmental quality. It is not mandatory but allows ensuring that specific energy efficiency (EE) targets are met. There is not one standard European certification tool but several national certification tools. Some are proposing integrated calculation methodology including all the EE aspects, such as heating, technological cooling and lighting installations, position and orientation of the building, heat recovery, etc., and not just the degree of the building’s technical insulation. Some used in the countries of CASH network are presented hereafter:

designers and operators of the sector). While the ITACA Protocol defines the strategic guidelines and supervises the certification system, regions and provinces should define their own procedures of certification and accreditation systems and issue the certificates.

Passive House Planning Package PHPP
Calculating the energy balance of buildings with very low energy consumption is a demanding task - existing regulations, standards and pre-standards lack the required precision. The method developed by Passivhaus Institut in Darmstadt Germany is the widest accepted method, in Europe, to calculate the design process for passive house renovation.

Energy performance labels
Under the European Directive on Energy performance of Buildings (2002/91/EC) to achieve energy performance in buildings, Member States are responsible for: setting the minimum standards as regards the energy performance of new and existing buildings. To meet their commitment and promote the achievement of high energy performance levels, countries have developed a series of energy performance labels (EPL). In the absence of European standards, they have developed their own national standards which are not directly comparable. This is because countries aggregate different components in the building’s total allowed energy budget (i.e. some countries ignore domestic hot water, equipment, lighting, or fans), they control different stages of the energy chain (e.g. net energy demand, delivered energy or primary energy) and have divergent assumptions on system efficiencies (e.g. boilers) and primary energy factors. Moreover, areas and volumes are calculated in different ways in different countries, which complicates simple comparison of requirements that are normalized in relation to floor area or facade areas, such as energy use [kWh/m².year] or air tightness.

GPR Building
“GPR Building” is a performance based tool developed by the municipality of Tilburg and W/E Consultants in the Netherlands. The aim of this quick and easy to use software is to raise building quality and reduce the environmental load of buildings, using five indicators: Energy, Environment, Health, User Quality, and Long Term Value. It allows visualising the effect of every measure on the sustainability and gives achieved CO2 reduction. At the moment “GPR Building” is being extended so it can be used internationally.

ITACA Protocol
The ITACA Institute (Federal Association of Italian Regions) in Italy, developed the ITACA protocol as a tool for the certification of the residential public building. Indicators used are: Site, Consumption of resources, Environmental loads, Environmental indoor quality, Quality of the service and Socio- economic aspects. It helps providing a common baseline for all stakeholders (property owners, builders,

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Also the climate conditions in different countries and regions are different. Some European examples of EPL, based on reducing the long term consumption of the buildings, are: • Passivhaus, in Germany, with less than 15 kWh/m2.year of energy consumption for heating and the same for cooling, • Low Energy Consumption Building (BBC), in France, for buildings with primary energy consumption of 50 kWh/m2.year (level A) for new building and of 80 kWh/ m2.year for renovated buildings or Effinergie integrating the concept of airtightness. Initiatives as the European EPLabel project proposes to harmonise this framework in public buildings across Europe. Whereas the level of Passivhaus is achievable in renovation, the question of impacts on way of living due to building air-tightness constraint should be raised.

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EXAMPLES from partners
-Renovation approach:

Rhone-Alpes Regional Council energy renovation plan for social housing, France
Starting with the challenge of national EE targets set in the new French Environment bill ‘Grenelle 2’, of 80 000 renovations by 2020 in Rhône-Alpes region with an energy consumption performance level <150kWh/m•/year), CASH partner Rhône-Alpes Regional Council (RARC) has adopted an ambitious regional energy renovation plan in favour of social housing, both public and private, for the 2011-2013 period. This plan, built around the regional partnership between RARC, the French Agency for Energy and Environment Management (ADEME) and the regional association of social housing organisations (ARRA-HLM), will provide technical assistance and financial support to public social landlords and co-properties. Objectives of this plan are to generalise the target of high energy performance and to develop a project management integrating a multi-criteria approach (architecture, ventilation, comfort, eco-materials, etc.). Energy requirements have been set up so that flexibility and capacity of adaptation are guaranteed to operators. There are thus 2 approaches sharing the common goal of a minimum energy saving of 35%: 1. a “step by step” approach reaching at least a level <150kWH/m•/year, based on technical solutions or “work packages” compatible with low-energy buildings standard (BBC renovation level < 80kWh/m 2/year), which will not kill future energy saving potential. Priority is given to the enveEnergy lope/shell (a minimum of two actions), with safeguards to satisfy (e.g.: minimum thermal resistance) and some technical consistency to respect (e.g.: mandatory intervention on ventilation if works programme implies replacement of windows); 2. a global approach reaching the BBC low-energy consumption level (<80 kWh/m²/ year) and obtaining the French label BBC Effinergie Renovation. It is a progressive plan, with a pilot operation during the first year (2011), on which basis the activities for the next two years will be revised and optimised. The Rhone-Alpes example shows that high goals can lead to new ways of working and the development and implementation of new technologies.

Renovation approach
Which are the EE renovation targets to achieve by social landlords or co-properties or private owners and what should be the approach: global or step-by-step? While minimum performances are advocated by the European Directive, specific targets to be achieved through renovation vary from country to country and are defined by their legal framework which will be presented in the second CASH mini-guide. Regarding the approach, the answers from CASH partners vary: • Tatabanya (Hungary), favours achieving the best available and most complete building energy refurbishment rather than proceeding to a renovation reaching minimum requirements, since these energy operations are long-term interventions and most often the unexecuted works are never achieved later on. • Rhône-Alpes Regional Council (France), has developed (with key stakeholders) a ‘step-by-step’ approach for Rhône-Alpes region which concentrates on the means (work package) more than on the goals. This progressive approach, not focusing on reaching immediately ‘BBC renovation level’ but remaining compatible with it, allows social landlords investing in renovation operations even if they don’t have the financial means to reach high targets. • Echirolles (France), until now has favoured the global approach with renovation integrating all the elements of the envelope, the energy production and the technical installations (e.g.: recent ‘Village 2’ district rehabilitation program with new and renovated buildings at BBC levels). However, given the present difficult financial context, the assets of a step by step approach are being discussed in the frame of Echirolles – URBACT CASH Local Action Plan.

For more information on technical requirements, see :
► www.logementsocialdurable.fr

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Decision making tool: renovation in a portfolio strategy, Utrecht, The Netherlands
The Dutch housing corporation Mitros uses a decision model for its housing stock, based on return on investment from EE renovation. The principal goal is not to minimise the costs, but to try to raise the value of the housing stock. Next to the market value of the houses, it is also the value for renting them out and the value for the quality of living (‘social return’). Return on investment gained through increased life span and value of the house, is a management criterion too. The returns from renovation can be summarised as follow:
Returns for tenant: lower ‘cost of accommodation’ better climate (health) more comfort/safety (well-being) Returns for the house owner: extension of exploitation (direct + indirect) increase in rent (direct) lower risk of future utilization (direct) value increase (indirect)

Shared energy skill center, Les Mureaux, France
The city of Les Mureaux plans to set up a special energy training facility for craftsmen. The city has identified a shared interest with several training / research organizations in the sector for a common technical platform. The project partners want to realise a new building with the newest energy efficiency technologies so that the technical solutions of the building or equipment can be used for educational purposes and training. The building is planned for realisation in 2014.

CONCLUSIONS AND RECOMMENDATIONS
Technological possibilities for energy efficient renovation are developing fast. Availability of techniques is not a guarantee that they always will be used in the best and most effective way. To cope with this rapidly evolving environment and with this constraint, it is recommended to pay a special attention to the labels and types of equipment and materials, as well as to the installation techniques, in particular for heritage buildings. Certification can be a guide to perform the appropriate choices. The renovation approach, whether global or on a step by step, is also a major issue. Many stakeholders, in particular communities and social landlords, often ask themselves if they should act on a limited number of buildings to achieve expected EE renovation targets (80 kWh/m².year) or if they should intervene on few of the components (i.e. insulation and glazing or energy supply and equipment, etc.) over a large number of buildings. Careful decision should be taken so as to keep along with the municipal energy reduction goals, available financial resources, other obligations to fulfil, as well as the time lag between major renovation operations (average of 20 to 30 years). Moreover, a renovation plan, aside from including the choice of approach, target, energy sources, technical installations, devices and their adequate sizing, requires the implication of stakeholders throughout the process, in particular the tenants, so as to optimize usages and energy efficiency (integrated participative design process). This subject will be covered in one of the following five CASH mini-guides, as well as legal framework, financial engineering, energy production and EE project management.

Making such future oriented calculations urges house owners, tenants and landlords, to search for the latest techniques and technologies for energy renovation. With such model, a rational decision can be made between “Continuation of Utilization”, “Disposition”, “Renovation” or “Demolition / rebuilding”.

2nd conference on Energy efficiency, Les Mureaux, France, May 2011.

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MORE TO LEARN
General
The CASH website with all presentations of the Thematic seminar in Utrecht:
► http://urbact.eu/cash

► www.passiv.de ► www.asiepi.eu or www.buildup.eu

(ASIEPI EP: Comparing Energy Performance Requirements over Europe: Tool and Method, 2010)
► www.norme-bbc.fr (French norms and Grenelle bill) ► www.frankfurt.de/sixcms/detail.php?id=3076&_ffmpar[_id_inhalt]=102231

State of the art
Main reference used for the overview of technologies for housing renovation: • Energieeffizienz im Wohngebäudebestand; Techniken, Potenziale, Kosten und Wirtschaftlichkeit; Institut Wohnen und Umwelt.
► http://www.iwu.de/fileadmin/user_upload/dateien/energie/klima_altbau/ IWU_QBer_EnEff_Wohngeb_Nov2007.pdf

Leitfaden: „Energetische Sanierung von Gründerzeitgebäuden in Frankfurt“; Herausgeber: Stadt Frankfurt am Main, Energiereferat.
► http://ecocitoyens.ademe.fr/ ► www.logementsocialdurable.fr ► www.energiaklub.hu

• W/E Advisers’ presentation: “Energy saving technology, state of the art” on CASH
Website. • La rénovation à très basse consommation d’énergie des bâtiments existants. Olivier Sidler, France, 120 p., 2010.

(Hungarian climate policy institute. Energiaklub concentrates on energy efficiency, renewable resources, climate protection, energy policy.)
► www.lakcimke.hu

Further website sources
► www.institut-negawatt.com ► www.lowenergyhouse.com

(A Hungarian on-line and downloadable publication for owners about energy performance certificate of buildings, energy efficiency interventions and renewable energy sources.)

(England)

► www.kliba-heidelberg.de/publikationen_oekobaufibel.html

(Germany)

► www.pro.baubook.at; www.sev.nl ► http://ec.europa.eu/environment/ecolabel/

(all about eco-labels)

► www.ecologicalbuildingsystems.com ► www.gprgebouw.nl

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LEGAL FRAMEWORK

• W hich key energy efficiency topics are most covered? • W here are the gaps? •A  re enabling factors appropriate and sufficiently covered? • W hat are the barriers to implementing? • S ome interesting bottom-up approaches • R ecommendations for an effective EE legal framework

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Content

Introduction & subject significance
This edition, covering the theme of legal framework for energy efficient renovation is the 2nd in a series of 6 mini-guides for the CASH project.

STATE-OF-THE-ART European policy & regulation Cash partner legal framework Key topics most covered by legal instruments Topics less covered by legal instruments Specificities and strengths of CASH partners KEY ISSUES DISCUSSED Enabling factors Barriers to implementing Needs & required outcomes EXAMPLES FROM PARTNERS Orca-apulia region, Brindisi, Italy Tenants union, Brindisi, Italy Apulia cluster for sustainable buildings, Brindisi, Italy Heating source regulated in urban planning, Frankfurt, Germany Voluntary agreement on local level, Utrecht, The Netherlands CONCLUSIONS & RECOMMENDATIONS ‘Brindisi manifesto’ MORE TO LEARN

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Availability of affordable and energy efficient housing is not only a technical or financial matter. European Directives, national / regional / local laws, decrees, ordinances and policies are forming the framework for cities to work within. This mini-guide describes the existing legal playing field for CASH partners from 9 European countries at the local level and shows how they can manoeuvre within the given possibilities to enhance energy performance of affordable housing for social landlords, low income owners or tenants. It also highlights the gaps, barriers, local needs and the potential solutions for a bottom-up approach more in line with local context.

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STATE-OF-THE-ART
European EE Policy and regulation
At European level the reduction of energy consumption in the building sector is an important policy goal which is reflected in many directives and regulations. Well-known is the 20-20-20 goal (to reduce GHG emissions by at least 20 per cent by 2020; to raise the share of renewable energy to 20 per cent; to improve energy efficiency by at least 20 per cent), which many local and regional authorities in Europe have committed to through the “covenant of mayors” (signed by 6 of the CASH partners). Probably the most relevant regulation for CASH is the EU Directive (2002/91/EC) on Energy Performance of Buildings (EPBD), in force since 2003 and adapted in May 2010. For EU legislations on Energy Efficiency (EE), consult the link: ► http://europa.eu/legislation_summaries/other/l27042_en.htm On 22 June 2011, a new set of measures for increased Energy Efficiency was proposed by the European Commission (Energy Efficiency Plan 2011). There will be a legal obligation for member states to establish energy saving schemes and more efforts from local and regional governments to be made for public buildings. Even though social housing is not explicitly addressed in the new directive, it will be a topic to consider since it is often within the influence of local governments. Moreover, the European Commission is developing a “Low-carbon economy 2050 roadmap” with objectives to reduce greenhouse gas emissions by 80 to 95% by 2050, and further rules can be expected.

Principle of subsidiarity has led to a variety of norms and regulations that relate to national, regional or local context.
As illustrated by the table, this resulted in very different EE legal framework in CASH partner countries although they are all based on the same EU directives - except for EE targets specification, audits and energy performance certificates. Table results are analyzed in the following subsections.

CRRA, Echirolles, Les Mureaux - FR

Sonderborg - DN

Tatabanya - HU

Frankfurt - GE

EE Targets + Energetic requirements of buildings EE DIAGNOSIS & SPECIFICATIONS Audits + Energy performance certificates EPC of buildings + posting Renovation labels Energy sources ENERGY PRODUCTION & DISTRIBUTION Co-generation District heating Condominium / co-properties USERS INVOLVEMENT Tenants contribution to energy renovation Clusters (industries & research institutions) Subsidies for energy efficiency housing units renovation Eco-loans and low interest loans FINANCIAL TOOLS / ENGINEERING Fiscal measures Feed-in tariffs Funds for state & municipal buildings

Cash partner legal framework
To understand how some European countries have adapted their legal framework to cope with these European directives and to pinpoint gaps and national specific contributions, CASH partners have illustrated their national, regional and local legal EE instruments in the form of a table organized by key EE topics, synthesized hereafter – see detailed table on the CASH webpage (http://urbact.eu/cash/, “Project documents”, “CASH Partner legal framework” -. The information gathered has shown how the principle of subsidiarity – central principle in the EU context stipulating that political decisions in the EU must always be taken at the lowest possible administrative and political level and as close to citizens as possible – has led to a variety of norms and regulations that relate to national, regional or local context (cultural, financial, climatic specifics…).

R&D

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Bridgend - UK

Yambol - BG

Utrecht - NL

Eordea - HE

Brindisi - IT

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Key topics most covered by legal instruments
For EE diagnosis and specifications: all CASH member states have translated the EPBD into national legislation. Energy Efficiency targets have been defined, monitoring methods developed and certification systems installed. However, there is no common calculation scheme between member states making it difficult to compare the energy consumption values (e.g.: there are over 25 different types of energy certificates at European level). Regarding levels of target energy values for energy modernization, whereas these are generally rather poor at national level, partners have shown that, in some cases, the local governments have defined more ambitious targets. For energy production and distribution: most countries are working on regulations to promote the use of renewable energy sources, accompanied by financial measures (guaranteed feed-in tariffs, subsidies for solar units or heat pumps...). In some countries (France, Denmark) an assessment on different energy options for big projects is even required by national regulation, so that the choice for energy source is not centrally prescribed, but is dependent on the local situation. For users’ involvement: several partner countries have legal instruments to obtain tenants contribution to energy renovation (Denmark, France, Germany, Hungary and the Netherlands). In Germany 11% of energy modernization costs may be transferred to higher rents and most often, to pay back investments for home improvement, rents are being raised. If and how much the rents in social housing can be raised varies between countries. Some cities (Utrecht, Frankfurt) are developing local rules for this. Because implementation mechanisms are complex and since this tenants contribution issue often raises social problems, in most cases social landlords prefer not to implement them. Frankfurt and some cities in Germany have introduced energy criteria in local rent comparison schemes (“Mietspiegel”). Landlords can justify higher rents, if they prove measures (new heating, insulation) or lower energy demand.

For financial instruments: subsidies (national or local or a combination of both), loans and feed-in tariffs are regulated the most.

Topics less covered by legal instruments
Whereas all EE topics are important, several of them, presented hereafter, seem to be poorly regulated:
Renovation labels: only a few partner countries have regulated labelling aspect, such as France with its high environmental quality (HQE) and low consumption building (BBC). In Germany, the Passive House Institute (www.passiv.de) has developed a calculation scheme independent from national standards with procedures and boundary conditions not influenced by political considerations allowing fast integration of new research results which gives more correct results. Some renovation labels have inspired new national standard construction rules, enforcing EE and bioclimatic assets when constructing a new building (i.e. Thermic regulation RT 2012 in France). Compulsory renovation rules are expected to follow. Cogeneration and district heating: in some partner cities specific energy applications are promoted through legislation, be it cogeneration, district heating or the use of natural gas. Local circumstances, resource availability and economical aspects, influence which option for energy supply is promoted, as in Tatabanya, Eordea or Sønderborg with district heating. Co-properties / condominiums: majority voting is ruled differently. In some cases a quorum requirement is used. In most partner countries this has not been the object of legal instruments or the choice to be made by owners between normal maintenance works and energy investments. The Netherlands is one of the exceptions, with a law obliging the owners of apartments to set up a fund for long term maintenance, with differences made between normal maintenance and extra energy investments. There is no general rule for this in Europe. For Bulgaria, where the situation with ownership of buildings is the most complicated, The Condominium Act, in force, stipulates that a qualified majority of votes is required for decisions concerning basic repair or renovations and in a month’s time, an amendment should indicate that “every owner is obliged to pay monthly fees for the renovation of the

In some countries, an assessment on different energy options for big projects is even required by national regulation, so that the choice for energy source is not centrally prescribed but is dependent on the local situation.

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in national plans of 6 of the 9 CASH countries, no legal instrument regarding this topic has been mentioned by CASH partners.

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The Netherlands is one of the exceptions, with a law obliging the owners of apartments to set up a fund for long term maintenance, with differences made between normal maintenance and extra energy investments.
building”. Clusters: only a few CASH members, such as Sønderborg and Brindisi, have regulated the creation of EE clusters, joining R&D institutions and industries for EE developments. Clusters exist in other partner countries but as supportive measures. Fiscal measures: these economic instruments are always mentioned in EU communication documents and policies as being important for realising the energy efficiency goals. Different from subsidies, economical tools - such as tax regulations, should be available for all actors and make energy-friendly options financially attractive. However, they are very rarely used in social housing EE renovation or are very recent towards low income owners. Green Procurement (environment-friendly purchasing): even though it is included

Specificities and strengths of CASH partners

The detailed CASH partner legal framework table, presented on the CASH webpage, stresses some trends and specificities: Some countries like Italy have developed a series of legal instruments at regional and local levels which deserve to be scaled-up (such as the Brindisi City Council resolution to establish the service chart providing 30% of rental fees to the tenants union for self-management including for EE renovation). Others like France have adopted a more centralized approach with less local and more national regulation. Some countries have developed specific legal instruments for key EE topics: • Hungarian Decree N°389/2007 on feed-in tariffs related to cogenerated electricity; • Tatabanya’s General Assembly Decree N°4/2010 on measuring and setting district heating and N°10/2010 on the district heating modernization programme (Hungary), • German EE label, Apulian Regional Council Resolution N°863, March 23, 2010 on R&D (Italy) and French Tax Instructions N°5B-22-09 establishing Tax credit for EE expenditures on main houses and N°6C-1-10 establishing a property tax relief for energy saving works on social housing units.

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KEY ISSUES DISCUSSED
During the Brindisi seminar, thematic workshops were held on enabling factors, barriers and needs for partners to implement their EE legal framework. Hereafter, are some key elements raised by partners.

Often supportive measures are not diversified enough, or not adapted to the context, and the legal framework not appropriate. This can create barriers to implementing the legislation.
Capacity building and training vary widely, going from schoolchildren to scholars: National educational programme for primary schools in Denmark; teaching programmes in technical schools around the PassivHaus building, including programmes for architects and builders in Germany; university programmes with units on energy in Italy. Information & awareness raising stay the most standard enabling factors but are still insufficient and untargeted: Awareness raising campaigns by municipalities and at national level in Denmark; website with advice on energy saving for private owners and tenants in Denmark and the Netherlands; posting of energy efficiency levels in estate agencies, energy guides and information desk with information for co-properties and individual houses in France; NGO providing information on financing in Hungary.

Enabling factors
Regulatory mechanisms, such as: ‘Volunteer’ modernization and no compulsive measures are found in Germany; posting of energy efficiency levels by estate agencies in France; obligation to add certification to selling act in Italy; co-property being able to act as a legal person in Italy, France and the Netherlands; self-management by tenants in Italy and tenants agreement to adopt a renovation operation in the Netherlands. Financial measures are numerous, as listed hereafter, but are often ephemeral and project based, not adapted to large scale renovation operations : EC structural funds; preferential loans and tax incentives for social landlords in France and for owners in Italy; guaranteed 2-3% interest loans for social landlords at regional level in the Netherlands; low interest rate credits from national funding banks -KfW- in Germany; eco-loans / green loans at 0% interest rate for private owners in France and Denmark; revolving fund for social landlords at local level by an independent organization in the Netherlands; 3rd line tenants contribution in France); possible subsidies from state for low income private owners in France and to reach C level in Hungary; regional financial measures in France; exemption of land tax for social owners in France; exemption of property taxes if level A is achieved in Bulgaria; reduced VAT in France; fiscal measure: tax deduction for some energy units and material in France, Italy and Denmark; white certificates - selling of energy savings by social landlords to energy companies in Denmark and France; creation of a national fund fed by fixed rents – once loans are paid-, managed by government on the basis of social landlords’ requests justified by tenants in Denmark; subsidized rent on the basis of energy savings in the Netherlands; public-private partnership in Italy; financial support for changing old boilers in Germany; risk sharing covered by public entities such as municipalities through guarantees. Technical support, less widespread, can cover: Technical assistance for the certification process, accessing financial support and helping draw up funding requests in France; technical assistance for energy measurements by universities in Denmark; development of district heating by municipalities in Denmark and the Netherlands; use of smart metering to raise awareness in Germany.

Barriers to implementing
Often supportive measures are not diversified enough, or not adapted to the context, and the legal framework not appropriate. This can create barriers to implementing the legislation. Below are aspects of legislation that are seen as barriers by the CASH partners: • Existing legal framework does not cover all the aspects of energy efficient renovation and legal obligations are not always connected to facilitating instruments like capacity building & training or financing. • There can be competitiveness between energy efficient (EE) legal instruments and other legal instruments (i.e. fire security, elevators, building regulations, lead diagnosis, etc.). This could make it hard to agree on how to implement legislation. • Goals set by legislation are not always financially achievable or seen as realistic. • Weak and unstable financial measures in time, as well as the difference of incentives between national and regional or local levels, make it difficult to reach national targets.

Enabling factors exist, as regulatory mechanisms, financial measures, technical support, but many of them are short term based.
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and stakeholders of social housing do not have a strong lobby. • National laws are not always applicable to specific local conditions. Moreover, the scaling-up of local regulation, which have proven to be efficient, to national legislation is difficult. Whereas these barriers are general for many policy areas, there are some additional specific factors for the social housing sector: • Governments may have high EE targets but social landlords could face difficulties to finance renovation, financial instruments being limited (no access to tax deduction and to green loans for some stakeholders…) and not adapted to large scale operations and rents being hard to raise when a high percentage of tenants live on very low incomes or social welfare. Renovation investments charged on rents can generate strong tenants’ opposition driven by their low awareness and involvement in the renovation process. • Mixed properties (social landlord buildings with private owners) do not fit with regulations made for standard average situations and social landlords bear all legal obligations. • Multiplicity of funding sources leads to complex application or transactional procedures.

EXAMPLES from partners
Interesting CASH partners’ examples on how to favour a bottom-up approach to draw up legal instruments reflecting local needs are shared hereafter:

Orca Apulia Region, Brindisi, Italy
The Regional Observatory of the Apulia Region (ORCA) has developed a database on stakeholders’ needs and is using it to support the region in drawing up adapted regional regulation on EE renovation of public social housing. ORCA gathers feedback from tenants, not only through data but mostly by talking with them and orders the data so that it is helpful to the evaluation units. The analysis leads to matching peoples’ needs and the local laws to find out if there are any gaps between them. Then new laws are drawn up or existing ones are implemented with the support of politicians, to promote better practices at local level. ORCA pilot projects for dissemination of good practices are available at:
► www.orca.regione.puglia.it

Needs & required outcomes
The EE legal framework should cover several key aspects: •S  et ambitious technical standards, with realistic targets, whenever insulation of the building envelope or a new heating installation is planned. In some German cities and in the Baden-Württemberg region, the legal framework stipulates that renewable energies (i.e. Solar collectors) must be installed if the roof or heating system is modernized; •C  onnect financing and the legal framework to establish a transparent way to reach an equilibrium between the financial interests of the landlord and of the tenant; develop coordinated multi-actor instruments (technical, social, financial) for low income owners; •P  romote renewable sources of energy supply. There should be a clear framework to support the implementation of heat and electricity from cogeneration and electricity from renewable energies. Feed-in tariffs, which have caused the highest and most cost-effective boom of energy from renewables (as in Germany) should be stable for 15-20 years after installation of the plant. •F  urthermore, it is fundamental to diffuse the various available EE legal instruments to municipalities and to raise the awareness of households of the benefits of EE renovation.

Tenants Union, Brindisi, Italy
The Brindisi Tenants Union promoted two resolutions which were approved unanimously by the City Council, representing a cutting edge in legislation at national level. These resolutions established the chart, called ‘Carta dei Servizi e Commisione Gestione della Carta dei Servizi’, now used by the social landlord IACP (Istituto Autonomo Case Popolari) and the self-management set of rules which regulate the tenants and allows the Tenants Union to receive 30% of rental fees (once used to pay management and administration fees) for self-management. It could be used for EE renovation or other improvements, in agreement with the IACP. Furthermore, the Tenants Union has designed a cartoon to raise tenants’ awareness on the impact of housing legislation… This creative tool should be promoted as a best practice to provide information to citizens on legal framework.
► www.unioneinquilini.it
A Brindisi Tenants Union representative presenting the high impact of their cartoon on legal instruments.

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Apulia Cluster for Sustainable Building, Brindisi, Italy
The Apulia “Cluster for Sustainable Building” is promoting cooperation and educational activities for sustainable development to increase awareness of sustainability in the building process at any level. It brings together industries, companies and universities in the region, informs and gives training on sustainable development and energy-related issues, as well as initiates research and innovation. Stakeholders involved share their experiences, allowing regions to give feedbacks to the higher legislative level and to influence new legislation, through the cluster’s R&D activities.
► http://www.numix-ecoinnovation.eu/doc/pdf_67.pdf

CONCLUSIONS AND RECOMMENDATIONS
At the Brindisi thematic seminar, the partners identified gaps between national legislation and what is locally possible. Based on the barriers, needs and enabling factors, they have identified recommendations for an effective EE legal framework, agreed in the following ‘Brindisi Manifesto’.

Brindisi Manifesto, Recommendations for an effective EE legal framework
Long term vision of the legal instruments

Heating source regulated in urban planning, Frankfurt, Germany
Since 1997 Frankfurt obliges building companies and project developers to connect the buildings to local district heating supplied by cogeneration. The use of other heating systems of fuels is forbidden. This obligation is implemented through local ordinations related to land-use plans in urban planning.
► http://www.frankfurt.de/sixcms/detail.php?id=8686&_ffmpar[_id_inhalt]=50482 ► http://www.frankfurt.de/sixcms/detail.php?id=8686&_ffmpar[_id_inhalt]=50467

Fast politically-motivated changes of legislation should be avoided.

Coherent legal framework at national, regional and local levels Legislation must be consistent, understandable and scalable. Flexible and adaptable legal framework In this sense, voluntary legal instruments (soft law) associated with a higher control level should be favoured. Involving stakeholders in drawing up bills, including citizens, is key to produce coherent legislation that can be implemented locally with the participation of EE actors, social landlords, private owners and tenants. Scaling-up, into national legal instruments, local Decrees and

Voluntary agreement on local level, Utrecht, The Netherlands
Utrecht has signed a voluntary agreement with social housing associations to have them insulate 18,660 apartments from 2011 to 2015. In return, the city council will adapt legal rules which hindered housing associations from splitting up big houses or from selling part of their housing stock.
► http://www.utrecht.nl/smartsite.dws?id=88530&GID=366375&commnr=17013 &sub

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municipal deliberations that have proven their efficiency Individual cities have often difficulties to give feedback on successful local processes to national government or to the EU. By organizing themselves in dedicated organizations and networks (like CECODHAS, Eurocities, Climate Alliance, ICLEI, national municipal associations, etc.) they can have more influence on future legislation. Adopting a global approach to the cost of housing (rent-energy-heating) Being part of the housing costs, heating and energy costs should be integrated in the rent protection systems. Furthermore, claiming “saved energy costs” to compensate energy investments must be made easier for house owners. Adopting a comprehensive, simple and fast approach to funding Funding should be less oriented towards individual projects or pilots, but be more structural support. It should be made less bureaucratic and procedures homogenized and simplified. Providing adaptive mechanism for rents, on the basis of incomes Flexible mechanism for rents to fit to local context (deprived neighbourhood) and a form of protection from rent increase for existing social rents should be ensured. Favoring the creation of clusters Providing appropriate communication and capacity building Municipalities should receive clear and timely information on legislation and on possible sources of funding in a systematic way and receive appropriate training. Educational programmes for stakeholders, in particular architects and builders, are needed and energy efficient Certification of architects / builders should be promoted. Awareness raising campaigns by cities and by tenants unions should be promoted (e.g. Climate Tour in Frankfurt, Apulia Cluster for Sustainable Development, ORCA “Watt/IN” project). Even if the occupants of social housing are not always easy to involve in a renovation process, it is essential that they are, just as all other stakeholders, informed and involved.

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MORE TO LEARN
An overview of relevant legislation and institutional framework can be found in the Background Paper made for the thematic meeting in Brindisi. (See CASH website: http://urbact.eu/cash)

Development of European policy related to Energy Efficiency can be found on the website of DG Energy
► http://ec.europa.eu/energy/index_en.htm ► http://ec.europa.eu/energy/efficiency/action_plan/action_plan_en.htm ► http://ec.europa.eu/energy/strategies/2011/roadmap_2050_en.htm ► www.epbd-ca.eu

Other sites
Covenant of mayors: ► www.eumayors.eu ► Developments of European and national housing policies: ► www.powerhouseeurope.eu ► www.housingeurope.eu

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FINANCIAL ENGINEERING

•W  hat are the modalities to reduce the ’investment costs and income’ gap? • H ow can the landlord / tenant dilemma be solved? • W hat are the barriers to implementation? •W  hat are potential solutions for an efficient financial engineering?

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Content

Introduction & subject significance
This 3rd Mini-Guide on Financial Instruments is based on the exchange of experience between CASH partners, in the preparation of and during the 3rd transnational thematic seminar held in Frankfurt, Germany, September 7 to 9, 2011. It analyzes existing financial instruments for energy efficient (EE) renovation available in the 9 European countries of the CASH partner cities. Besides underlining successful instruments in use in CASH partner cities, the guide also highlights obstacles and presents recommendations for developing financial engineering adapted to long-term and large-scale EE renovation operations.

STATE-OF-THE-ART How much money is needed? – The European context Existing modalities to reduce the gap between investment costs and income • Reducing the investment costs • Getting additional income • Financing by a third party (TPF) KEY ISSUES DISCUSSED How are the financial instruments perceived by CASH partners? Barriers Specific needs pinpointed by CASH partners Potential solution for efficient financial engineering EXAMPLES FROM PARTNERS

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The Danish Building Fund, Sønderborg, Denmark National rent scheme and scoring system, Uthecht, The Netherlands Green Deal, Bridgend, UK KfW programs, Frankfurt, Germany Local financial instrument, Brindisi, Italy CONCLUSIONS & RECOMMENDATIONS Funding Investor/user dilemma Networking Recommendations for Managing Authorities MORE TO LEARN
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STATE-OF-THE-ART
How much money is needed? – The European context
It has been estimated that the comprehensive energy renovation cost for a dwelling, is in average 23,000 Euro1 (in France). In order to reach the European CO2 reduction goals for housing, approximately 70 to 180 million housing units in the European Union (EU) need to be renovated according to low energy consumption standards. This would require from 1,500 to upwards of 4,000 billion Euros of energy refurbishment investments in the residential sector before 2050, which represents roughly 27% of the energy consumption in the EU. How can this be achieved knowing that energy costs should be reduced by a factor of 3 to 4 and that 2/3 to 3/4 of the renovation costs are often dedicated to general maintenance measures? The trend is to cover these costs in the long term by the added value of the building and in the short term through higher rents. However, it is often not possible in the case of social housing, to raise the rent and certainly not more than the expected reduction in heating costs. Thus, additional financial instruments are required.

of dividends, and that must be repaid within a fixed period. A Green loan represents a sum of money lent for environmentally-friendly investments (including energy savings), at an interest seeking both financial returns and environmental benefits. Soft loans offer flexible terms for repayment, usually at lower than market interest rates, and are provided customarily by government agencies. The difference with the commercial interest rate is mostly covered by the government. Bank guarantee This tool consists in government taking over the bank guarantee to facilitate access to loans for low-income private homeowners, social housing organizations, or socio economically deprived groups of homeowners. Tax credits and VAT reduction In some countries, investments for energy improvements can be deducted from income tax or have a reduced VAT rate. The German government has associated this tool with a certain level of energy efficiency that must be reached through the investment. Tax credits are less likely to be attractive to lower-income households. In some cases, big social landlords are excluded from tax credit reduction. Investment transfer to rent This represents investments paid back by a higher rent. For this tool to be used effectively, an appropriate legal framework has to be in place. In Denmark and the Netherlands, national regulations are in place. See also the chapter on the owner/tenant dilemma.

Existing modalities to reduce the gap between investment costs and income
Available financial instruments for EE renovation in the 9 countries of the CASH partner cities have been analyzed during the roundtable of the 3rd CASH transnational thematic seminar. They have been categorized into 3 modalities for reducing the gap between investment costs and incomes: • reducing the investment costs, • getting additional income, • financing by a third party.

Getting additional income
European funds The EC supports EE renovation through different funds which are mainly short-term based and project-oriented. Many funds are difficult to access owing to their complexity or criteria. Among the European funds available for actions related to energy efficiency are: • European Regional Development Fund (ERDF) is the most relevant for EE renovation programs with up to 4% eligible.
► http://ec.europa.eu/regional_policy/thefunds/regional/index_en.cfm

Reducing the investment costs
Loan capital, soft loans or green loans Relevant factors of these financial instruments are the interest charged on loans and the time allowed for repayment. Loan capital is the part of an organization’s capital employed that is not equity capital, that earns a fixed rate of interest instead
1 “Energy Retrofitting of social housing through energy performance contracts – A feedback from the FRESH project: France, Italy, United Kingdom and Bulgaria.” See www.fresh-project.eu

• European Investment Bank (EIB) gives energy loans for the public and private sectors, including municipalities –for sustainable, competitive and secure energy - with long-term fixed rates.
► http://www.eib.org/

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• European Energy Efficiency Fund (EEEF) for commercially viable EE and small-scale renewable energy (RE) projects from 5 to 25 M€, targeting municipal and regional authorities and public and private entities acting on behalf of them, such as social housing associations, energy companies, etc.
► http://eeef.eu/

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Subsidies (often related to revenues) provided by local and national governments. These are national grants, accessible to all categories of beneficiaries (social landlords, co-properties and individual properties). Grants specifically targeting energy efficiency may be directed either to the social housing provider or directly to the individual resident. They vary in scale from large regeneration projects down to the household level. The funds mostly cover only a percentage of the real costs and are project based, with only a limited number of projects open to funding. Feed-in tariffs The self-production of energy, by solar panels or wind, can be supplied to the public electric power grid. In many countries, regulations ensure a guaranteed minimum price for this energy. This provides an income stream which can help repay capital loans. It can only be used when energy is being produced, in addition to energy efficiency measures. Market instruments : Energy Savings Certificates and Carbon Trading A ‘White Certificate’, also referred to as an Energy Savings Certificate (ESC), Energy Efficiency Credit (EEC), or White tag, is an instrument issued by an authorized body guaranteeing that a specified amount of energy savings has been achieved. In most cases, the white certificates are tradable. In many countries, energy companies have energy savings goals to achieve. The amount of energy saved in a housing project can be subject to trading.

• European Local Energy Assistance Fund (ELENA) is a technical assistance grant available to local authorities, designed to boost investments in the area of energy efficiency (EE) and renewable energy sources. This grant can be used to cover the technical support necessary to prepare, implement and finance the investment program, such as feasibility and market studies, program structuring, business plans, energy audits, and tender preparation, etc.
► http://www.eib.org/products/technical_assistance/elena/index.htm?lang=en

• The Marguerite Fund is an independent Pan European equity fund for Energy, Climate Change and infrastructure investments, including sustainable energy production and distribution.
► http://www.margueritefund.eu/index.php?pageid=1

• Joint European Support for Sustainable Investment in City Areas (JESSICA) from EIB, promotes sustainable investments and growth in urban areas. It concerns repayable investments in projects forming part of an integrated plan for sustainable urban development. These investments, which may take the form of equity, loans and/or guarantees, are delivered to projects via Urban Development Funds. Topics include: environment, innovation and promotion of sustainable energy sources.
► http://www.eib.org/projects/publications/jessica.htm?lang=en

Financing by a third party (TPF)
Energy Service Company (ESCO) and energy providers This financial mechanism involves the financing by an outside energy service investment company (ESCO) or by an energy provider. These investments are then paid off using the cost savings achieved. The investor installs efficient technology and maintains the system to make sure energy is saved. This might, for example, involve provision of the heating equipment, fuel and maintenance, as well as energy saving measures or investments in renovation operations paid back on energy savings. In some countries, as in UK, there are legal obligations which compel energy companies to contribute to the EE renovation costs. Energy Savings Performance Contract In this kind of contract, the contractor (public or private, or a holding) proposes the owner measures that will produce measurable guaranteed savings, committing itself to reach the level of savings defined in the contract. Projects are partly funded through energy savings and may result in future revenue for the owner.

• Intelligent Energy Europe (IEE) program has targeted funding for creative projects promoting EE, increasing the use of RE sources and energy diversification (up to 75% of project costs)
► http://ec.europa.eu/energy/intelligent/index_en.htm

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KEY ISSUES DISCUSSED
How are the financial instruments perceived by CASH partners?
During a roundtable discussion, partners have classified financial instruments between ‘most successful’ and ‘most complex’. Most successful for the network are funds, grants, subsidies, soft loans, energy obligations and trading. These results are similar to the ones presented in the EuroACE report (2010) which has addressed more than thirty financial instruments. The most complex instruments are the transfer of investments into rents and 3rd party financing. To understand the main gaps in the financial instruments and the differences between countries in the network, the partners have developed the following grid which summarizes the financial sources available to different categories of beneficiaries. (See table below) Key findings from the grid, depicting the situation in 10 cities from 9 European countries: • EU instruments are short-term based. Not designed for co-properties, they are mainly used by social landlords;
Financial instruments in cash partners countries
BENEFICIARIES Yambol - BG Sonderborg - DN Echirolles - FR CRRA - FR Les Mureaux - FR Frankfurt - GE Eordea - HE Tatabanya - HU Brindisi - IT Utrecht - NL Bridgend - UK Yambol - BG Sonderborg - DN Echirolles - FR CRRA - FR Les Mureaux - FR Frankfurt - GE Eordea - HE Tatabanya - HU Brindisi - IT Utrecht - NL Bridgend - UK Yambol - BG Sonderborg - DN Echirolles - FR CRRA - FR Les Mureaux - FR Frankfurt - GE Eordea - HE Tatabanya - HU Brindisi - IT Utrecht - NL Bridgend - UK

• National financial instruments are mostly available to all beneficiaries but are predominantly short-term based, except in Denmark, Germany and the UK, with long-term instruments; • There are differences between countries regarding the contribution of tenants. The following ranking of financial instruments was obtained from CASH partners: • most successful: funds, grants, subsidies and soft loans, as well as energy obligations and trading; • most complex to implement, even if very interesting: third-party financing, transfer of investments into rents, tax rebates and VAT reduction. In third-party financing, energy savings may not be large enough to repay the investments within a reasonable contractual duration.

Barriers
The creation and use of innovative financing schemes depends on how prevailing barriers for financing and implementing EE renovation projects can be overcome. Main barriers identified by the CASH network during workshops are illustrated in the following ‘Barriers matrix’. (See table next page) Most common barriers in the 9 countries, represented in the top of the matrix, are: • Limited funding, not sufficient to meet important national targets. Climate and energy efficiency goals are often set by national governments. The funding to achieve these goals is not high enough or not available at all (see CECODHAS’ comment in ‘Potential solutions’ section). Due to the overall savings on public budgets in European countries, this situation has only worsened. • The available funds are often short-term based and project-oriented, which does not allow mid- and long-term planning needed for large-scale energy efficiency renovations. • Beneficiaries are confronted with complex procedures and application forms for relatively little funding amounts. • Lack of awareness among owners on funding and on the financial aspects of EE renovation, due to insufficient accessible information, is a widespread problem. • There is a lack of coherence between various financial instruments aimed at financing different parts of the renovation process. • Many municipalities are facing a fundamental lack of financing possibilities, thus with limited local action. • It is difficult to reach an owners agreement in co-properties. • There is a lack of control and monitoring of both the use of finance and of the energy usage after the renovation.

Social Landlords FINANCING ENTITIES
Europe State Region Community Banks Private Tenants Others

Co-properties / condominiums

Private owners

0

0

*

Long term

Short term

Main gaps

Not appicable

* Coming project

s Revolving funds

0 Only on limited territory

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Yambol - BG Sonderborg - DN Echirolles - FR CRRA - FR Les Mureaux - FR Frankfurt - GE Eordea - HE Tatabanya - HU Brindisi - IT Utrecht - NL Bridgend - UK

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Barriers - Financial instruments for energy improvement of social housing

energy costs? There is a problem with split incentives, referred to here as the ‘landlord/tenant’ dilemma. The dilemma has many aspects: • in most cases, the costs of EE renovation cannot be neutralized by lower energy costs obtained from reduced consumption, the investor not taking advantage of them directly; • the investment remains unchanged while the revenues from energy savings are uncertain and depend on many factors other than the technical measures only; • other benefits are difficult to quantify: comfort of living for tenants, extended lifetime and added market value of the property for landlords; • the general interest of the society is served through the reduction of CO2 emissions and of energy dependency.
Cash Partners needs - Financial instruments for energy improvement of social housing

Limited funding to meet important national targets/demand > existing funds Ephemertality of funds - Short term based: makes mid term planning difficult Complex and difficult procedures and application forms for little funds / complex EU funding Multiplicity of funding entities for the different renovation works and lack of coherence Owners not well informed about financial opportunities / no notional information platform Municipalities are underfinanced Blocs owned by different owners (mixed & co-properties) need agreement Reduction of state and regional public funding Lack of control and monitoring Risk of no -recovery of investment for district heating Long decision making process to attribute funds Legally binding instruments (i.e. loans) = owners don’t want them No warranty funds for the owners EE Result are not guaranteed High amount of contribution from owners Lack of financial mechanism at national level Bureaucracy Many owners refuse mortgage of their property for credit Disparities of financial measures between regions makes difficult reaching national targets Social landlords not supporting investment for district heating increases tenants expenses Low cash flow social landlords Economic crisis generated banks liquidity problem and difficulties to obtain green loans Tenancy law: tenants have to pay higher rents without knowing if ernergy savings will compensate Insufficient rents for social landlords Many insurances needed Majority of housing built before 1945 are not renovated Not opossible for housing assoc. to get a loan without repayment which is not the case for private Access to mortgage is a problem for coproperties Fragmentation of the asset as a result of sale

Simple, understandable and long term financial products / standardization required Greater contribution from Europe and states Common approach for co-properties Better promotion of financial opportunities / National information platform Availability of starting funds and warrantees More funds for municipalities Need for funds at low cost for all (inculding the private sector and social landlords) Common approach for mixed / co-properties & ability to recharge for EE improvements (not only for improvements)

Very strong barriers

Strong barriers

Easier ways to get EU funds Harmonization of measures between regions One entry point for funding / forming consortia Need for more funding sources coherent between themselves Allow government Village Building Fund to be used for demolition / reconstruction Elevation of regulation ceilings from EU procurement Larger projects Different options for private owners and subsidy scheme Rent index which considers energy measures Better control mechanism of loan programme Tenancy law with cost transfer mechanism based on reduction of energy Need for integration of legal framework and funding scheme Need to broaden eligibility criteria for beneficiaries / year of building construction / max. funding budget / subsidy % (flexibility) Enable social landlords to seek tenants approval to a financial contribution to EE works Direct funding for social housing Local agencies informing and organizing beneficiaries (with means to do it)

Specific needs pinpointed by CASH partners
As depicted in the ‘Needs matrix’ produced by the network, specific needs relate to: social landlords, co-properties and landlord/tenant dilemma. (See table p. 73)

• For social landlords, access to preferential loans and bigger loans should be • Regarding co-properties, the use of an intermediary neutral body to manage the
funding and the savings is seen as a key aspect, as well as the easier access to third-party financing. • As for the landlord/tenant dilemma, the question remains when renovating social housing: who will pay for this work and who will benefit from the saving in facilitated.

Very strong barriers

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In multiple-owner situations (mixed properties, different forms of owner associations, commodity regulations, etc.) the dilemma can be more complicated. There are different approaches to this dilemma: • let the tenants pay a global amount to cover all housing costs, i.e. rent, energy, water, waste... The owner can then adapt the various housing cost elements, without raising the global amount for the tenant. This is mainly possible when there is no individual metering of energy use per apartment; • make all the elements of the costs transparent for the tenant, which should be an incentive to optimize energy efficient behavior; • an equal sharing of costs by tenants, homeowner and government. The UK “Green Deal” follows this principle, involving energy companies as the stakeholder (see ‘Example from partners’ section). In Germany, there has been discussion around a “three thirds” model, in which: • is covered by the tenant through a transfer of the investment to the rent, based on the expected energy savings; • by the investor/landlord, to cover renovation needs (without necessarily integrating energy savings) and for the added value of the property; • by State funding (or other), the State recovering the VAT (19-25% in EU), as well as some money from reduced unemployment and from CO2 savings. In all these approaches, quality control, monitoring, payment regulations and communication are essential. Possible solutions to the landlord/tenant dilemma are partly determined by national legal systems (see section ‘Example from partners’).

69 • involving tenants from the beginning of the energy renovation process (i.e.: in the
co-design), as initiator of energy saving actions;

• national information instrument.

The European level
The recommendation brought by CECODHAS Housing Europe is key. « On 28 February 2012, the European Parliament’s Committee on Industry, Research and Energy approved the requirement of Member States to renovate buildings owned by public authorities and public bodies (2.5% of the area per year). CECODHAS Housing Europe stresses that, in contrast to public authorities, public bodies covered by the obligation of thermal renovation, do not have the ability to self-grant public funds to finance these huge investments. Additionally, in the case of public housing, there is often no way to recover investments due to rent regulation  and to the low-income of tenants. It is also important to note that the energy service contracting model, while promising, has yet to prove itself to be a valid option in the housing sector. Therefore, this legal obligation only makes sense if it is accompanied by an obligation to make funding available. Housing Europe calls on MEPs to rebalance this legal obligation to invest with a legal obligation to make available EU funding, including the priority allocation of Structural Funds for 2014-2020 and the creation of a dedicated green investment fund guaranteed by the EU. » Claire Roumet, Secretary General, CECODHAS Housing Europe

Potential solution for efficient financial engineering
Whereas various financial instruments exist, the solution promoted by the CASH network, which arises from 3 working groups, is a financial engineering solution with the following ingredients: • long term, stable and simple financial instruments (as recommended by the Energy Efficiency Governance Handbook, 2010 and by the Inofin project, 2008), with preferences for revolving funds, preferential loans with fixed long term interest rates quickly accessible to all categories of beneficiaries, secured Third party financing and the obligation for energy companies to reinvest in EE improvements, as well as bank guarantee and initial deposit; • neutral independent coordinating body; • integration of EE improvements with water and waste to combine funding sources and have an integrated approach with a greater impact on carbon reduction;

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EXAMPLES from partners
The CASH partners have shared examples of good practices.

The Danish Building Fund, Sønderborg, Denmark
The Danish Building Fund supports the building and renovation of social housing in Denmark. This national fund started in 1966 and is fed by a percentage of rents (20%). In 2010 the value of the Fund was 100 million Euros. It is used to finance new building activities up to 40% and renovation of houses up to 50% of the costs. The State has a fundamental influence on the way renovations take place and can steer towards EE renovations. The renovation scheme contains a high degree of tenant involvement. Tenants are members of the Local Social Housing Department (through a minimal membership fee). Different renovation scenarios are presented by the social landlord to the tenants who have the right to refuse renovation investments. Decisions are adopted by simple majority. Criticism are that the procedures for funding are time-consuming and that the fund is not ambitious enough (up to Passiv Haus level 2). However, it is an interesting long-term, revolving fund.

time out of the energy savings. A revolving fund will be installed. Strict standards will be put in place to protect consumers. A new requirement on energy companies is to provide support, with an estimated value of £1.3 billion a year, to ensure equal access to the Green Deal – regardless of income or of the type of house. Additional help will be available to ensure the fuel poor get better boilers and fix draughty homes while subsidy will also be provided to help tackle homes that are hard to insulate, including solid wall homes. The Green Deal is expected to kick start around £14 billion of private sector investment over the next decade. It could support at least 65,000 insulation and construction jobs by 2015.

KfW programs, Frankfurt, Germany
In Germany the KfW-development bank has been operating funding programs for energy and modernization of residential buildings for more than 15 years. Their funding tools are soft loans and direct subsidies (Zuschuss). There is a wide range of programs for reducing heat demand, for promoting renewable energies and for the modernization of energy sources and dwellings. KfW’s main rule is that the higher the savings, the lower the interest rate or the higher the subsidy. Additionally, the services of a consulting body to determine savings potentials and to follow-up the works to ensure good results, is also funded. Over the last year, KfW has integrated funding for share properties (Wohneigentümergemeinschaften). On the one hand, KfW’s programs are sometimes criticized because they tend to change rather rapidly. On the other hand, they provide several guidelines for achieving good results and savings, thus contributing to the good use of State money. From the 1 April 2012, heritage-protected buildings can also be financed. KfW’s programs have been evaluated several times for their effectiveness in reducing CO2 emissions and improving living conditions.
► www.kfw.de

National rent scheme and scoring system, Utrecht, The Netherlands
In the Netherlands, the maximum rent of social housing is set by a national scoring system. The higher the quality of the house, the higher the rent can be. A recent adaptation of the system has included the energy label of the house in the scoring methodology, to motivate social landlords to invest in energy improvements. If landlords improve the EE of the house, a higher rent may be charged. On the other hand, if no energy improvement is made until 2014, the scoring will be lower and rents reduced. The scoring for the energy label varies from 0 to 44 points and can be a considerable part of the total score of an apartment or house.

Local financial instrument, Brindisi, Italy
In Brindisi, Italy, the public social landlord IACP (Istituto Autonomo Case Popolari) regulates its relations with tenants through a mixed committee “Commissione di Gestione della Carta dei Servizi”, according to the charter “Carta dei Servizi. Through municipal deliberation, it has been modified to allow the tenants’ Union to receive 30% of the rents (of 30€ min.) for self-management, which could be used for improvements in agreement with the IACP. Discussions are underway to include energy improvements.

Green Deal, Bridgend, UK
In the Energy Act of 2011, the UK Government has announced a “Green Deal”, which intends to reduce carbon emissions from buildings, starting in October 2012 with the following characteristics: Every British home and business will be able to install packages of energy saving technologies, such as insulation, at no upfront cost. Repayments will be made over

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CONCLUSIONS AND RECOMMENDATIONS
In order to improve the financing possibilities for energy efficient large-scale renovation operations, the CASH network has proposed a series of recommendations, presented as the ‘Frankfurt resolution’:

Funding
• To reach national and international climate and energy goals, more funds and
greater contributions are needed from Europe and from national governments for all homeowners. • The available financial instruments should be: based on long-term planning, be better coordinated, non-bureaucratic and accessible to all homeowners. • National information platforms could help to promote financial opportunities to all categories of owners. • National and regional revolving funds (supported by additional fees on rent or energy bills) can be an important instrument, favoring long-term and large-scale projects. • Bank guarantees from the government should be used to make funds and loans also accessible for co-properties and small homeowners. • Independent third-party managing entities should be created or supported to organize technical, financial and organizational aspects and monitor the measures. They could act as a facilitator between landlords/owners of the housing units and tenants. The role can be taken by local/regional foundations or energy service/supply companies or even by tenants’ organizations. • To guarantee the high quality of measures and a low future energy demand, high quality standards should be associated with funding. • “Soft/green” loans or other (revolving) funds must easily be accessible to all homeowners, including social landlords. • Funds should be combined with guarantees for loans so third party engagements will be promoted. • Existing funds for house improvement should be more targeted towards EE.

to reduce other running costs for water, electricity and waste -“the second rent”- should be included. • Financial support programs on a national, regional and local level should bridge the gap towards higher energy standards and limited rent increases for low income households. • A common approach for social co-property landlords and co-property of low income households should be available to overcome the problem of some owners objections. • All technical measures and energy consumptions must be monitored in a transparent and independent manner. Tenants have to be informed in a comprehensive manner. • In many countries, energy companies have an obligation to save energy and they also already manage energy financing for individual households. Therefore, they should play an important role in the owner/tenants dilemma.

Networking
Networking of all stakeholders is essential to overcome obstacles.

Recommendations for Managing Authorities
The management of programs supported by the Structural and Cohesion Funds is the responsibility of the Member States. For every program, they designate managing authorities (at the national, regional or other level) which will inform potential beneficiaries, select the projects and generally, monitor implementation. This paragraph contains recommendations directed towards the Managing Authorities.

• European funds such as the European Regional Development Fund (ERDF)

Investor/user dilemma
• The increase in rents, or the payback of energy investments, should be
compensated by energy savings (lowering of energy costs) to solve the “owner/ tenant” dilemma. • To implement energy improvement in an integrative and optimum way, measures

should not only be provided for energy measures in general, but should also be focused on social housing with an integrative approach (energy, living environment, maintenance and integration). • The combined use of EU funds such as ESF, ERDF, and EAFRD1, etc. and the stability of funds over the long term, should be favored. • The goals and results of the URBACT program and projects should be taken into account. • Significant parts of regional funding should be oriented towards the energy improvement of social housing.

1 European Social Fund, European Regional Development Fund, European Agricultural Fund for Rural Development

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MORE TO LEARN
Affordable Warmth for All A guide to improving energy efficiency in the social housing stock, for social housing providers, residents and supporting organizations. Guidebook produced as part of the FinSH project - Financial and Support Instruments for Fuel Poverty in Social Housing. 2010
► www.ecuba.it/English%20Guide.pdf

Anforderungen an einen Sanierungsfahrplan, Auf dem Weg zu einem klimaneutralen Gebäudebestand bis 2050,
► www.nabu.de

Energy Efficiency Governance Handbook, International Energy Agency, Second Edition, OECD/IEA. 2010 Energy Retrofitting of social housing through energy performance contracts A feedback from the FRESH project: France, Italy, United Kingdom and Bulgaria,
► www.fresh-project.eu

Financing energy saving measures in the Dutch social housing sector - WP2 report to the InoFin project, Energy Research Centre of the Netherlands (ECN), ECN-E—06-049, December 2006 Guideline on Social Housing Energy Retrofitting Financing Schemes in EU New Member States; 2008, report of the InoFin project; Innovative Financing of Social Housing Refurbishment in Enlarged Europe
► www.join-inofin.eu

Background Paper CASH Thematic Seminar Financial Instruments, Frankfurt, 7th, 8th and 9th September 2011,
► http://urbact.eu/cash

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CITIZENS’ INVOLVEMENT

• Why is citizen involvement important? • When and how are citizens involved in the EE renovation process? • How are citizens involved in energy savings? • What are the barriers, gaps and solutions to citizen involvement?

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Content

Introduction & subject significance
This 4th CASH mini guide presents results from the 4th Thematic Seminar on “Citizens’ involvement in Energy Efficient (EE) renovation of social housing”, held in Bridgend, UK, from January, 25-27, 2012, for the following topics: • why is citizen involvement important • when and how are citizens involved in the EE renovation process • how are citizens involved in energy savings (behavioural changes) • what are the barriers, gaps and solutions. Clarity about levels of participation is provided by the widely used Arnstein’s ladder of citizen participation (1969): informing through newsletters, press, web, open houses; consulting to obtain feedback; involving to ensure that public concerns and aspirations are understood and considered; collaborating through partnering for the development of alternatives and solutions; empowering to place final decisionmaking in the hands of the public through citizen juries, tenants boards. Grasping the importance of citizens’ involvement in the EE renovation process is as fundamental as understanding the levels of participation. Citizens’ involvement: • develops a sense of ownership; and improves the acceptance and the implementation of renovation works • gives a greater understanding and helps the development of appropriate behaviours • helps to ensure long term sustainability by increasing residents’ satisfaction • enables people to find solutions to their own problems and increases the quality through the integration of new ideas coming from local knowledge • builds local capacity • agrees actions to feasibility

STATE-OF-THE-ART Citizens’ involvement in the EE renovation process Behavioural changes KEY ISSUES DISCUSSED

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When and how are citizens involved in the EE renovation process? How are citizens involved in energy savings? Barriers and solutions EXAMPLES FROM PARTNERS Bridgend City, UK Echirolles, France Tatabanya, Hungary Frankfurt, Germany CONCLUSIONS & RECOMMENDATIONS ‘Bridgend Resolution’ MORE TO LEARN

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STATE-OF-THE-ART
Citizens’ involvement in the EE renovation process
In the guidelines for Sustainable Energy Action Plans of the Covenant of Mayors, citizen participation is mentioned as a precondition. Several projects have covered the topic on “WHEN are citizens involved in an EE renovation process”, but stayed general and didn’t distinguish between the mode of involvement - “information” versus “decision making”.

5.timely and easily accessible information for users increases their knowledge and commitment to energy savings or behavioural transformation. Even though this network underlines key principles such as the involvement of users from the very beginning of a project and the integration of user groups in the co-creation/design/co-production phase, it does not distinguish the type of involvement -information or decision making - and doesn’t inform on the precise steps of the involvement process. With regard to the HOW, it doesn’t distinguish between tools ‘done for’ and the tools ‘done with’ the users to influence their behaviour.
► http://www.sci-network.eu/

- The SHELTER project
The SHELTER project funded by Intelligent Energy Europe (IEE) described the phases of the renovation process and the involvement of the different stakeholders during these phases. It highlights that the tenants have commonly a minor possibility to participate in the design decisions taken by the social housing organisations (SHOs) and the designers. This means that the potential energy savings can be jeopardised by the inappropriate behaviour of the tenants owing to their lack of participation. Whereas SHELTER’s focus was on tenants participation upstream of the EE renovation process, their recommendation was to “implement actions that make a direct link for tenants between their behaviour and the energy bill”.
► http://www.shelterproject-iee.eu/#

Behavioural changes
Urban climate policy can only be effective with citizen participation. In the housing sector much energy can be saved not only with technical measures, but also with behavioural changes. Projects designed around the behavioural aspects focus in providing information or free services to tenants. Generally the awareness-raising tools are made ”FOR” tenants, versus “WITH” tenants.

- The ENERGY AMBASSADOR IEE project
The Energy Ambassador project generates energy savings in households at risk of energy poverty through the intervention of trained social actors, accurately referring occupants to local and national services for support and providing behavioural advice on heating, electricity and water consumption.

- The SCI-Network
The SCI-Network produced guidance on user involvement in sustainable renovation projects. Their key preliminary findings are that: 1.it is necessary to integrate properly the users into the procurement process to really profit from proper functioning of an EE building; 2.user involvement can be used in all different phases of a refurbishment process including at the very beginning; 3.users represent important stakeholders in the needs assessment from a procurement point of view. Post occupancy evaluation and feedback are crucial; 4.different groups can be integrated in the co-creation/design/co-production of new innovation;

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Tools used to support households were diversified: - Meeting in citizens ‘houses during holidays - Guides translated in languages talked in the district - Hotline - Web - Committee The most effective advice was: - Lowering indoor temperature (ideally to 18°C) - Installing flow regulators to most used taps - Adding roof insulation - Turning-off leisure appliances. However, all the advices was produced FOR citizens. - The Caritas Energy Service project of the Frankfurter Caritas association works with long term unemployed people who are being trained as energy advisors for households with social aid. The energy advisors install water and energy saving materials, thus helping immediate savings of over 20% of electricity. In Germany, more than 70 000 checks in more than 100 cities have been made. In this case, as well, advice developed BY an organisation is provided TO citizens. Caritas-Projekt
► http://www.stromspar-check.de

KEY ISSUES DISCUSSED
The workshop on the “WHEN and HOW are citizens involved in the EE renovation process”
The Workshop highlighted that in almost al cities of the CASH network the following elements are NOT discussed or decided with the citizens (tenants / users…):

• Types and content of the renovation during the planning phase • Design-choices of EE systems, equipment and techniques
Denmark is the only country where legislation requires tenants’ input in the renovation design. In general, main co-production / co-decisions are on: the opportunity of renovation, on the ‘rent-charge couple’, the changes required in the works during the renovation –except in Bulgaria where they can participate in the renovation-, the analysis of charges and of equipment / systems malfunctions during the occupation.

The Workshop on the “HOW are citizens involved in energy savings”
The Workshop underlined interesting actions of co-production of tools with users, to influence in an adapted way their behaviour through the communication of information, personal advice, exchanges and involvement in the decision making. These tools started with an understanding of the users’ socio-cultural behaviours and needs through interactive forums, recommendation books. They encompass the co-production of communication material in users’ languages, tenants’ advisors speaking their mother tongues, users’ committee, networking between users, key actors and elected representatives, users representation in social landlords administration board and the involvement of local district organisations and tenants ‘unions.

The aims of the CASH 4th Thematic Seminar were to explore how to involve tenants, upstream of the EE renovation process, in the decision making and how to develop with them awareness raising tools and programmes influencing energy consumption behaviours. Facilitating the communication between the different actors and developing a communication strategy with clear goals on what the citizen participation were also key objectives.

The Workshop on “barriers & solutions”, identified the following key barriers for the “WHEN”:
Reluctance of main stakeholders (social landlords and designers) considering that users are not experts and that their involvement will represent more work; financing criteria not providing the flexibility required to involve citizens and lack of funding

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dedicated to citizens’ motivation; rigid regulation and very small budget for personnel dedicated to citizens’ involvement; legal obligation for the involvement of tenants in decision making, faced by lack of majority, tenants not being actively involved; weak relationship with elected representatives and social landlords; the ‘will’ to keep cheap rents; no dedicated time in the EE renovation process; long time frame of the process as opposed to users’ time frame targeting quick results which affects their motivation; available information often too complicated and/or its delivery too late; citizens not skilled enough; low involvement in the evaluation of the renovation project leading to energy inefficient behaviours; energy tariffs often not negotiated with citizens. In this context, CASH partners have expressed the need for secure, flexible and long term funding, as well as legal options for citizens’ participation; a well developed communication strategy and plan, providing a platform to understand the needs of citizens and integrating information from citizens, with an array of tools tailored to the target groups; constant links between citizens, SHOs and elected members during all stages of the renovation process, together with continuity and transparency; citizens’ empowerment and training to allow them to fulfill their role in the participation process. Barriers for the “HOW” relate to the sociological composition and education levels of users and investment time required to coproduce tools, as well as bills and guides difficult to understand and lack of understanding of complex EE equipment. More detailed outcomes from these workshops are provided in the following tables. Solutions and recommendations are presented in the “Bridgend Resolution” at the end of the mini guide.
When and how are citizens involved in the EE renovation process?

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INFORMING
PLANNING - DECISION
• Information by the County on the strategy (Bridgend, UK) • Information by City and State, on purposes and benefits of renovation activities, as well as on financial issues (Yambol-Bulgaria, co-properties) • Information by City about available funding sources for renovation for residents (Tatabanya- Hungary, co-properties) • Energy platform project: energy diagnosis made by students to grasp the context (Les Mureaux, France)

CO-PRODUCING
• Diagnosis while walking with residents and City + meeting between Social landlords, City and tenants to exchange on the opportunity of renovation (not on the type and content of the renovation) + tenants ‘ petition supporting landlords in getting state funds (Echirolles, France) • Tenants vote for the approval of the renovation presented to them by the Social landlord -“go or not” decision(Sonderborg, Denmark) • 70% of residents have to agree on the renovation work (Utrecht, Netherlands) • 69% of owners have to agree on the renovation work in a General Assembly (Yambol, Bulgaria – co-properties) • Depending on the scheme, tenants are consulted to negotiate the design proposals but the design is limited by funding and other standard constraints (Bridgend, UK) • Debates and vote on works related to comfort but not on EE renovation designed by architects hired by social landlords. The negotiation is on the “rent-charges” couple (Echirolles, France) • EQB reference table built on a survey done by Social landlords on tenants comfort needs –but not on EE renovation design- (CRRA, France) • Legislation requires tenants’ inputs in the renovation design. Some social landlords coordinate “inspiration trips” with the tenants for the design (Sonderborg, Denmark) • Meetings between tenants and companies to participate in the renovation work plan on the basis of their needs (Utrecht, Netherlands) • Decision of the owners’ General Assembly on the renovation works and on the assignation of the company is mandatory (Yambol, Bulgaria) • Tenants are consulted on the changes required in the works (Bridgend, UK)

DESIGN RENOVATION WORKS

• Information of tenants by Social landlords (Utrecht, Netherlands) • Information meeting between City, Social landlords and tenants to present the renovation design –by legal obligation- and relocation of tenants by proactive social workers (Echirolles, France)

• Social landlords inform tenants about the renovation works while relocating tenants for large renovation works (Utrecht, Netherlands) • Residents are informed about the schedule of the interventions (Tatabanya, Hungary) • Information meetings on works are organised for tenants by Social landlords. During renovation, a reference person can be contacted (Echirolles, France) • Tenants are informed about the works from the inception (Bridgend, UK) • Public meetings are held to inform tenants on the works. The public association “Réciprocité” produces communication tools and inform on the renovation (Les Mureaux, France) • Tenants are informed about their energy consumptions by the social landlords during specific sessions at the entrance of the building and by their electricity and heat bills produced by the companies or by the social landlords in the case of collective heating –but information is often not comprehensive- (Echirolles, France) • Tenants pay their own energy bill and are informed by the energy supply company about their energy consumption (Utrecht, Netherlands) • Project of creating in 2012 a “Service charge observatory” (Les Mureaux, France) • Tenants are informed when problems arise (Bridgend, UK) • Communication for tenants by constructors on the use of new equipment with heating modernisation (Tatabanya, Hungary)

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OCCUPATION / MAINTENANCE

• An annual analysis of heating and electricity charges is performed between the social landlord, tenants’ union, companies and tenants’ representative for their regularisation – “Residence Committee”-. Pressures are being put on district heating company by city and the tenants’ unions to reduce tariffs (Echirolles, France) • Tenants’ union supports tenants ‘ association in coproducing monitoring tools (Utrecht, Netherlands) • “Energy Committee” with city, companies and tenants to improve the situation (Les Mureaux, France) • “Satisfaction survey” performed by social landlord (Bridgend, UK) • Monitoring is subject of regulations adopted by the General Assembly of owners (Yambol, Bulgaria)

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How are citizens involved in energy savings? 1/2 How are citizens involved in energy savings? 2/2

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INFORMING / DONE FOR TENANTS
• Public events • Printed communication tools (flyers, newsletters, posters) + heating bills • Mailing, mail… • Public relation campaigns (TV…) • DVD to allow tenants to watch the information at their own rhythm • Websites + Forums on Internet sites • Green phone • Social networks (facebook…) • Education materials (e.g. “Water management pedagogic package”) • Marketing (goodies/freebies) • Theatre presentations for tenants + role playing with actors (target group analysis for choosing the tools) • Information sessions organised by social landlords • Schools

CO-PRODUCING / DONE WITH OR BY TENANTS
• Communities designing their own material on energy saving actions / co-producing communication material with tenants in their languages • Communication strategy and plan made with tenants since the beginning / activity calendar • Communication strategy for ‘invisible’ tenants developed with their leaders • Surveys, questionnaires…. • Training programme • Schools’ involvement in the co-production of communication material • With them, appropriate communication tools • Involving tenants in the production of social networks

INFORMING / DONE FOR TENANTS
• Tenants’ associations • Visits on demonstration sites • Information visits on the renovation area while works are going on • Social landlords ‘ monitoring grid allowing the detection and the communication of problems • Tenants’ satisfaction survey performed by social landlords • Energy saving examples on website • Ombudsman for tenants / residents complaints • “NRJ saving week”… “walk to school week” • Manual / guide

CO-PRODUCING / DONE WITH OR BY TENANTS
• Workshops • “Communities First-type initiative” • “Residence Committee” grouping tenants of a building to detect problems and elaborate plan of action with social landlord and tenants’ union • “open houses” favouring tenants exchanges of problems and good practices • Networking between key actors, within a building and between areas

COMMUNICATION MATERIAL

EXCHANGES PROBLEMS & GOOD PRACTICES

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OTHERS

• Energy resource centres • Free personal energy diagnosis (e.g. Energy ambassadors programme) • Independent tenants’ advisor • Visits on site by experts • District manager • Hotlines • “Ready workshops” / Tupperware meetings organised by local energy agency • “Positive Families” energy competition • Individual meetings organised by social landlords for an analysis of energy bills • Training sessions performed by tenants’ union • “Display” European campaign / energy saving campaigns

• Opinion and recommendation book • Interactive tenants forums • Tenants advisors trained by social landlords who can speak in mother tongues of tenants

PERSONAL ADVICE

INVOLVING TENANTS IN THE DECISION

• Public meeting • Road shows • Mail shots and leaflet drops • Reporting mechanisms through reports and feedback

• Tenants ‘ Union representation on Social landlord Management Board • Tenants’ association on Steering committee / tenants elected on the Management Board of Social landlords • Negotiation between Social landlords and tenants on rent increase • Involvement of local district organisations • Tenants panels / committees • Tenants participation to draft public plans • Decision making process planning • Legal framework for tenants involvement in the decision of the con struction/renovation budget, in some countries • Legal framework for tenants involvement in the decision making • Institutional support to tenants initiatives • Flexible and long term financial tools or projects • Stable long term link between tenants’ representatives and elected members from the city • Training of tenants to implement simple renovation work • Local referendums • Children as ambassadors • Integrated approach, covering energy consumption with other components (water, waste…) • Champions

• Through Consultants consultation sessions and agents • Ballot opportunities

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EXAMPLES from partners
Bridgend County Borough Council, UK
‘Bridgend CBC - one of the 22 local authorities in Wales (UK) transferred its social housing stock in 2003 to Valleys to Coast Housing (V2C). V2C is a SHO regulated by the “Welsh Housing Quality Standard” (WHQS) produced by the Welsh Government (WG). WG expects all SHOs to improve/renovate their housing stock by 2012 (adequately heated, fuel efficient and well insulated).
► http://wales.gov.uk/topics/housingandcommunity/housing/publications/ whqsrevisedguide/?lang=en

Tenants are given the choice for ‘comfort works’ (as the type of kitchen). EE works choices are linked to WHQS and to funding which is limited to certain types of works, thus restricting citizens’ choices. Prior to EE renovation V2C identifies tenants’ issues and support needs. An ‘open day’ is arranged to introduce tenants to the contractor, to outline the project scope and funding restrictions and to note tenants’ choices on comfort works. Open days are also used for voting demolition. An agreement on structural alterations and finishes is reached through group discussion, however the scheme could proceed without tenant’s approval.

Communities First
Communities First (a WG funded programme to reduce poverty), has assisted in the development of a training programme with V2C to involve citizens in devising community access plans. Voluntary community champions were identified and given the skills in design, planning and communication. Even though the experience was not in the co-design of the EE renovation process, it allowed emphasis of key principles of Community engagement, such as: - establishing driving motivations - exploring wider options - clarifying and reconciling options and motivations - acknowledging geographical / spatial / socio-economic differences - tackling the issue of information asymmetry (unknown knowns, unknown unknowns…blind, secret and missing knowledge) and building trust - testing perception against facts - analysis and feasibility. It also allowed identification of key procedures:

WG has acknowledged the importance of tenant participation to produce efficient and responsive public services and to implement its housing strategy. WG produced the “National tenant participation strategy for wales” in 2007, aimed at, social landlords and other relevant bodies sharing information, ideas and decision-making with tenants and relevant stakeholders, and working with them to agree:

• how their homes and local environment should be managed • what services and service improvements are needed • priorities • how they will work together to achieve these.
► http://wales.gov.uk/topics/housingandcommunity/housing/publications/ tenantstrategy/?lang=en

Bridgend’s V2C SHO
V2C has a management board with one third of tenants ensuring their continuous involvement. V2C developed their “Local tenant participation strategy2011-2014”, with a Community forum fed by the inputs of 3 working groups: ‘Monitoring Group’, Scrutiny Group’ and ‘Policy Group’.
► http://www.v2c.org.uk/

V2C inform their tenants of any changes and engage consultants / architects in the design of EE renovation. On EE renovation aspects, choices are given to tenants on the type of insulation (fibre or polystyrene), but not on the type of boiler or glazing.

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- securing support from key people - identifying community champions / potential community leaders - setting-up working groups to build ownership - identifying aims and objectives - conducting citizen survey - identifying initiatives, schemes and measures - meeting in community territory convenient for citizens - facilitation and presentation in a language adapted to the target group - participation through brainstorming and through activities adapted to different age groups and the public - consulting people constantly and explaining technical and legal constraints - listening to citizens in their own languages - ensuring engagement and post-implementation engagement. Rockwool based near Bridgend, produces sustainable insulation products created from natural -mainly mineral wool- and recycled products, for Wales the UK and world-wide. Rockwool not only puts emphasis on the environmental aspect of its production but has integrated in its approach the involvement of citizens and has stressed that early communication is critical in the insulation process through: • open days at local level • residents ‘ days out • fish & chips supper • community based charities / cultural groups • newsletter with maps of works and photographic imagery of the renovation area with varying colour schemes on the walls;
► http://www.rockwool.co.uk/

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UK Energy Saving Trust
As regards the HOW to lead citizens in reducing CO2 emissions, the UK Energy Saving Trust non-profit organisation has been created by the British government and the private sector to provide information and advice to people across the UK, looking to save / generate energy and reduce their energy bills. It has developed a “Better working together” programme engaging counties across the UK and Wales. The Trust works in partnership with Bridgend City on the topic of smart integrated metering and on engaging citizens in: • technological changes in their homes • easy and repeatable behaviours • promoting local champions to demystify technology • exemplar homes to provide the opportunity to talk to ‘real’ persons. It also has programmes on: • potential savings • innovative products & systems • thermal bridging, air tightness and ventilation. The Trust produces a series of guides and has a training programme of entrepreneurs on how to deal with their clients. Its “East advice call centre” answers around 1 Million calls a year from consumers, local authorities and housing organisations. However, main clients are home owners rather than tenants from SHO. Furthermore, the cultural component of citizens is not taken into account in the choice of technology or in adapting advice.

Providing client support with tenants’ liaison (on site communication) is necessary to ensure the quality of work through solving citizens’ requests and gaining their understanding and adherence. Training unemployed, often from neighbourhoods to be renovated, for insulating lofts (pilot project) and working with organizations in creating jobs and training people are other innovative activities.

Echirolles, France
Through the example of ‘Village 2 district EE renovation operation 2003-2012’ the Echirolles Local Support Group illustrated WHEN and the HOW are citizens involved in the EE renovation process. It showed that citizens are involved since the beginning of the process, but only through consultation and information, except if tenants contribute to the financing of the renovation through rent increases. Tenants are involved:

Rockwool manufacturer

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Tools used to act on energy consumption behaviours (“HOW”), are mainly produced by SHO and public agencies and sometimes by the tenants’ union. The few tools co-conceived with citizens relate to collective heating. Main tools developed FOR citizens are: • communication material: mails, guides, flyers, brochures, newsletters, websites, panels and sometimes theatre; • personal advice: consultation, Tupperware meetings, training tenants’ representatives (mainly by tenants’ union), competition between families;

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• exchanges of problems and good practices through workshops and meetings.

Tatabanya, Hungary
The district heating Co., co-owned by Tatabanya municipality, is developing several measures to support homeowners and co-properties’ owners in reducing their energy consumption and reducing CO2 emissions: • Development of a heating modernisation fund to connect households to the district heating network - from 1700 to 2400 Euros with a rate of contribution of 25-33% - In the first two years, 10% of the targeted apartments have been connected, counting for 31% energy savings; • Measurement appliances setting on radiators • Information and personal advice, through: - support in filling the Heating fund application form, support from experts to residents’ association… - forums (co-properties, tenants…) - web: with information on actions performed and in course (description of co-properties modernised and monitoring of their energy consumption), demonstrating that despite the old behaviour of local people (old coal town) the interventions have a positive impact reducing their energy consumption.
► http://www.trf-kft.hu

Frankfurt, Germany
The ecologic renovation project “Heinrich-Lübke-Siedlung” of the city’s housing company ABG Frankfurt Holding has integrated citizens’ involvement since the planning phase. It has organised workshops (60 participants out of 1600 tenants invited) to discuss the project at the planning phase. The project aiming at 90% CO2 emissions reduction was presented to tenants, informing them about the photovoltaic panels to be installed, the renovation of the heat distribution network and the green spaces planned. Beside these information actions on the EE renovation process, it is in the organization of the green spaces that tenants were actively involved.
► http://www.heinrich-luebke-siedlung.de/

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CONCLUSIONS AND RECOMMENDATIONS
Key recommendations for an effective citizen involvement in EE renovation process and in the reduction of energy consumption are provided by CASH partners through the BRIDGEND RESOLUTION: CASH partners, assembled in Bridgend on the 27 th of January 2012 and agreed that citizen participation and involvement is fundamental to the energy efficient renovation process and should be mainstreamed into policies and strategies in making renovation sustainable.

efficiency measures and change behaviours - use of an integrated approach to renovation using tools to improve sustainable development in the cities (energy savings, social development, economic efficiency and fairness, cooperation between all stakeholders).

3/ HOW do we involve citizens?
- use of a mixture of innovative tools favouring exchanges between all stakeholders, such as independent energy advisors, trained champions, ambassadors of energy, trained to change behaviour and attitudes and educate citizens in realising the benefits of energy efficiency renovation. - target all age groups involved in energy efficiency renovation - target the everyday issues of citizens to help them get involved - design communication plans and activities with citizens, in which we select a mixture of tools tailored to the target group (work with community leaders, citizen panels and representatives, tenant resident groups and forums) - ensure citizens are represented on SHO Boards - empower and train citizens to fulfil their role in the participation process - cities and SHO guarantee transparency throughout the whole process for citizens in providing simple and understandable tools - need of independent organization to support citizens - develop and use monitoring tools with all the stakeholders - provide an experience sharing and expression platform to understand the needs of citizens. Each platform should be city or region scaled. - have secure, flexible and long term funding to allow citizen involvement - source leaders / champions to raise awareness of energy efficiency renovation and to transmit and disseminate information - raise awareness of the impact of energy efficiency renovation to enable citizens to understand how they can reduce their carbon footprint and energy bills.

1/ WHY is it important to involve citizens?
- houses, dwellings are the most private domains of citizens. Any changes should not be done without their involvement. ‘It is their home’ - participation from the conception of an idea can bring new and innovative ideas to the project, ensuring not only the citizen benefits but the community in which they live - it can improve the understanding, acceptance and implementation of renovation work - it can bring new and unexpected ideas to the project - it supports community capacity building, ownership and empowerment. - motivating citizens is essential for behavioural change - citizens can understand the importance of energy efficiency renovation and how this can reduce energy bills, improve comfort and safety and give piece of mind. - it can change attitudes and behaviour of citizen’s.

2/ WHEN do we involve citizens?
- from the planning phase and during all stages of the renovation process for the co-conception of energy efficient renovation to ensure an appropriation of the equipment and systems and the proper functioning of the renovated EE buildings - throughout the evaluation process - when developing legal instruments / policies to ensure citizen’s participation and engagement - during all stages of the renovation process to ensure constant links with social housing organizations and elected representatives - in the tariff negotiation at the financial design and occupation stages - In the co-creation of schemes with tenants not only to improve the energy efficiency of homes but to improve citizens health and their environments in neighbourhoods to give ownership and empower tenants to include energy

As a conclusion
Citizen’s involvement:
- is a necessary condition to make sustainable renovation (energy efficiency, fuel poverty, social inclusion…) - will be an integrated part of our local action plan and we encourage all other cities and stakeholders to do so.

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Recommendations for Managing Authorities
In October 2011 the European Commission adopted legislative proposals for cohesion policy for 2014-2020. The Commission promotes integrated urban policies and proposes a methodology regarding Community Led Local Development, which: is community-led by local action groups, is designed taking into consideration local needs and includes networking and co-operation. In the CASH project an integrative way of working is being encouraged, especially with the involvement of citizens and tenants. The community led local action plans (LAPs) in CASH are being developed by Local Support Groups involving key local stakeholders including tenants. As described in this mini guide, CASH partners have identified different barriers and needs regarding citizens’ participation to energy efficient renovation, in particular the possibility for citizens to be involved in early phases, for a co-conception. CASH LAPs are integrating this aspect. More projects have to be developed and supported that tackle this barrier and that follow the CASH recommendations made in this mini guide. The Managing Authorities are strongly encouraged to support projects – in particular CASH LAPs - where integrated activities with citizens participation take place in the social housing sector, contributing to a low carbon economy.

MORE TO LEARN
The place of inhabitants
► www.housingeurope.eu

International Association of Public Participation
► www.iap2.org

Public Participation in Europe, An international perspective; EIPP June 2009
► www.participationinstitute.org

UK government website to support citizen participation with methods and tools:
► www.peopleandparticipation.net

SCI-Network: Guidance on user involvement in sustainable renovation projects T.B. Salcedo, A. Straub and H.J. Visscher, Delft University of Technology, SHELTER Report D 3.1 - Energy renovation process, Overview of SHELTER Social Housing Organisations, Coordination of professionals
► www.shelterproject-iee.eu

Climate Change Policy
Combating climate change needs ambitious policies and Urban Climate Policy can only be effective with Citizen Participation, for the following reasons: Firstly, in the housing sector much energy can be saved, not only with technical measures, but also with behavioural change. Studies show that around 10% of energy can be saved only by routine behaviour change (switching off lights, lowering temperature, etc.). Secondly, many technical energy efficiency measures will be less effective if the related behavioural change is not carried out. Thirdly, there is the “investment-behaviour”. The choice to invest in buying energy efficient household appliances is depending on the knowledge and awareness of the public. For these three reasons citizens’ involvement is an indispensable and essential part of any climate change policy.

The Environment Agency of Bristol published a paper that contains a review of a variety of public participation techniques, with their main advantages and disadvantages (p. 28).
► http://publications.environment-agency.gov.uk/dispay.php?name=STRE135-E-E

FINSH: Project Affordable Warmth for all, Chapter 4

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ENERGY PRODUCTION AND DISTRIBUTION

• W hy is strategic energy planning key for social housing ? •W  hat are the critical steps and ingredients for successful strategic energy planning? •R  educing energy dependency through diversified green local energy sources • The role of green cogeneration and the concept of decentralized power • T he importance of demand reduction

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Content

Introduction & subject significance
The CASH project is about energy efficient renovation of social housing. Energy efficient renovation deals not only with technical aspects of insulation, heat and ventilation systems, but with the energy sources and their distribution to the housing units, affecting costs paid by tenants and CO2 emissions. • How the renovation can take place, the technical possibilities and the efficiency of the measures are often related to the energy forms and sources that are available for the building. The carbon emission per unit of energy varies strongly between different energy mixes, as well as the costs per energy unit. When an inefficient boiler is being replaced, the available energy infrastructure and energy sources play an immediate role in deciding the most environmentally and cost friendly and effective solution. In this 5th mini guide of the URBACT-CASH project - based on the exchanges during the 5th transnational thematic seminar in Sonderborg, Denmark (May 9-11, 2012) -, the different aspects of: types, availability, costs, efficiency etc. of energy sources, production and distribution, will be discussed.

STATE-OF-THE-ART Energy transition KEY ISSUES DISCUSSED Strategic Energy Planning Roles and obligations of energy producters and distributors Challenges, barriers and solutions EXAMPLES FROM PARTNERS Sønderborg ProjectZero, Denmark Sønderborg Green District Heating, Denmark Sønderborg EUC Syd training center, Denmark Frankfurt CHP program, Germany Tatabánya CHP and district heating system, Hungary CONCLUSIONS & RECOMMENDATIONS Recommendations for EC and Managing Authorities MORE TO LEARN

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STATE-OF-THE-ART
Energy transition
Ambitious climate targets leading to carbon zero (set by many cities and states) can only be reached when both renewable energy and energy efficiency will be implemented. Several studies, as in Frankfurt and Sønderborg (see illustration) demonstrate that fact. As stated by Leif Sønderborg Peterson, to develop the energy systems of the future and increase energy security, we need an integrated process that will optimize the entire system, from energy production, conversion, transportation and distribution, to efficient end-use with significant reductions in energy consumption (2012). Regarding the energy sources, he states that: for many countries, energy security concerns are accompanied by a preference for renewable options which can reduce their dependence on imported oil and gas, as well as helping to reduce global greenhouse gas (GHG) emissions. Solar energy, which can be used to generate heat and electricity, produces 22% of the world’s electricity. Wind energy, which covers currently 1.6% of global electricity consumption, has the potential of cost-effectively covering 30 to 50% of the electricity consumption. The coming decade is seeing the introduction of wind power in the built environment. Hydropower is a mature technology. Biomass presently covers approximately 10% of the world’s energy consumption. Its potential is estimated to cover up to half of the world’s energy needs in 2050. However, biomass production should not compete with food supply. Geothermal energy is used in 76 countries for heating and cooling and in 24 countries to produce electricity and suitable aquifers offer promising potential. He underlines that to date R&D work on energy storage has focused on electricity and that there is considerable technical and economic potential for heat storage; there is a need for a smart grid which will link production and end-use at the local level and that new end-use technologies have to be widely introduced including highly insulated houses, smart equipment, energy storage and local energy supplies. Finally, he pinpointed the too insignificant welfare gains to motivate end-users and suggests, as well, variable tariffs and taxes to stimulate flexible demand and ‘demand shifting’.

KEY ISSUES DISCUSSED
Strategic Energy Planning
During the 5th transnational Thematic Seminar in Sønderborg, CASH partners have placed energy efficiency in a bigger framework and looked at the whole chain, from energy production, distribution, conversion and storage, to the end-users.

Energy Strategy
The development of an energy strategy represents a seven-step process, as explained by Mr. Christian Eriksen and Mr. Peter Rathje, respectively Coordinator and Managing Director of Project Zero, the public-private foundation created to coordinate the planning process of Sønderborg’s 2029 Carbon neutral Energy Strategy.
Source: Sønderborg’s Energy Strategy http://urbact.eu/cash

This seven-step process consists in: • Getting a big picture by understanding what is the population, the industrial and the economic growth in the area - in all sectors - for the short, mid and long term, to define the demand. • Creating a baseline, identifying what kind of energy is produced and used at the present time – with heavy consumption by sector: housing, industries, transportation, agriculture… - and the import / export scheme, to establish a carbon baseline, as well as, making the inventory of local resources and of potential renewable

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energy sources (keeping biomass at the lowest, as a temporary solution due to its competition with food) and evaluating the distance between energy source and end users. Some of the CASH partners (Frankfurt, Bridgend, Sønderborg, Rhône-Alpes) have already executed a potential study for renewable energy sources in their area –see CRRA – France, map on wind resource:

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Decentralized power and cogeneration
The asset of co-generation in a Sustainable energy action plan was addressed by Dr. Werner, Head of Frankfurt am Main Energy Office. He stressed the importance for municipalities to produce their own electricity and not depend on big power companies - concept of “Decentralized power”. For that effect they can use combined heat and power generation systems (CHP / co-generation) producing electricity and heat simultaneously. Whereas at conventional large power stations 60 to 70% of available energy is lost before it gets to the electricity socket, co-generation uses 90% of the waste heat generated in the production of electricity for district heating. District heating can easily be conceived with co-generation, even more in social housing units which are blocks predestined to have cogeneration central systems. Green co-generation using renewable energy sources as geothermal, waste, biomass energy, as in the case of Sønderborg district heating, should be favoured.

• Doing a scoping exercise, deciding on geographical boundaries of the Strategic

Energy Plan, understanding what produces CO2, identifying and mapping the main stakeholders so as to take into account their specific values and to determine the scope of the Plan. This means understanding who own the energy companies – private sector, municipality, citizens -, what are the environmental responsibilities and the business model of the big and small industries and enterprises, to influence their value system. It also means, having them on-board, together with parliamentarians for legal aspects, the mayor and members of the council to ensure continuity, as well as with citizens segmenting them by age, income, culture to cover the different motivations;

• Elaborating the Strategic Energy Plan, pointing out core activities of the project

Workshop
The criteria for strategic energy planning identified by participants to the thematic seminar, for given energy scenarios, are as follows:

integrating all the parameters (energy but also water, waste…) - keeping in mind to be market driven -, having the Region on board to help share the same vision with the same value system creating an “area” thinking and fixing a challenge; together to have the Plan becoming a common ‘WE’ issue between all stakeholders. Advertising in newspapers on a continuous basis.

CARBON NEUTRAL scenario:
(these criteria were common to all scenarios)
• Shifting to local green energy sources and becoming less fossil dependent • Diversifying green energy sources and becoming less fossil dependent • Diversifying green energy sources • Reducing the demand through EE renovation and more efficient behaviours.

• Identifying what are the best practice,
looking at the existing competencies;

SECURED ENERGY scenario:
• Reducing energy bills – huge funding issue • Adapting the legislation • Acquiring technical knowledge

• Implement the Strategic Energy Plan,

ensuring measurement and correction;

• Monitoring the process and updating the
Strategic Energy Plan on the basis of what has changed through the reiteration of the planning process, with a 2-year review and a 4-year new road map.

Map of Wind potential of the Rhône-Alpes region, Source: CETE, Lyon, France, June 2012

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LOW COST ENERGY scenario:
• Using density of area to spread the costs • Lowering maintenance costs • Ensuring fair and stable prices, not systematic low prices • getting investments from big consumers of the area.

are ultimately passed back to the end user/ customer. The Energy Efficiency Obligation results in more energy savings than would be obtained from an equivalent rise in the price of energy alone. A disadvantage is that public obligations for private companies are, despite the success stories, not everywhere implemented and need a constant monitoring and enforcement. Energy distribution is more often still in the hands of the government, historically owning the infrastructure. It can also be owned by the users as for the heat distribution networks in Denmark. The available distribution network is decisive for the energy options for the end users. And once a distribution infrastructure is available, economics requires its optimal use. Availability and ownership of distribution networks are relevant not only for energy efficiency but also for options for the future energy transition process (legal, financial and technical possibilities). Changes of cost structure aspects were analysed on the basis of fix and variable costs. They are related to the type of enterprise (public or private) due to the provision of expected return on the assets to banks and investors which is higher in the private sector. They are related, as well, to the kind of energy sources: - Fossil energy supply is characterized by low per kWh construction costs and high production costs, which represents variable energy costs for the end user. - Renewable energy supply is characterized by higher per kWh construction costs but very low production costs and low marginal cost to generate additional kWh, which offers lower and more stable energy costs for the end user. Other aspects, such as the fluctuation in the availability of the primary energy source - highlighting the importance of favouring energy mix-, as well as grey energy costs and environmental impacts, have to be taken into consideration.

LOWEST ENVIRONMENTAL IMPACT scenario:
• Improving public enquiries • Fix environmental quality target • Developing labels and quality standards • Educating and quality training • Improving production ways, storage and distribution • Developing an integrated energy strategy with urban planning • Key energy sources to promote: wind, solar and biogas • Economic viability • Associating environmental and health specialists in the strategic energy planning
process.

The exercise demonstrated that slightly different priorities can lead to completely different activity plans. While setting up partnerships one should be aware of the goals and starting points of the potential partner. To support cooperation between partners with different starting points, two methods are recommended: look for common interests and find activities that have positive effect for all partners.

ROLES AND OBLIGATIONS of energy producters and distributors
Energy production is in general not in the hands of cities. To fulfil the obligations for supplying energy at affordable prices, cities have to negotiate with different stakeholders, in particular with energy companies. A help here is that in most countries in Europe energy companies have the legal obligation to promote energy efficiency with their customers (e.g.: UK Green Deal - allowing supplier subsidy, the cost being covered by savings on the electricity bill-). The Energy Efficiency Obligation avoids spending public money to stimulate energy efficiency. There is now around € 2 billion per year being spent by energy companies in the EU to deliver energy efficiency. This figure represents between 1 and 5% of the energy bill to customers. The costs incurred by energy companies

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It is crucial to find common goals and activities to get a real commitment. The acceptance by the different stakeholders - large industries representing big consumers, power companies including “black producers producing coal, oil…, clean technology companies, public stakeholders such as municipality, region, ministers, social housing organizations (SHO) who are also big consumers, citizens and NGOs who can influence the project - of the vision, of the target, of the process and of the load to share is crucial. Differences in working culture or in procedures of decision making and in agendas can be a barrier for close cooperation and it is advised to let partners do those things that they are good at. Their representation through the creation of an independent body to get their appropriation of the project is essential.

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Workshop
In line with the previous chapter, it is relevant to know the position and priorities of partners with regard to the energy strategy. In a workshop the CASH partner explored the consequences of different models of ownership of energy production in the negotiation process, as illustrated in the table below:
ADVANTAGES • Innovation, because expertise is at hand, and innovation is economically stimulated. • Private companies have in general a costefficient structure. • The city has the freedom to choose suppliers for the consumers. • Private companies can offer different tariffss for different customers. • Stable price. • Creation of green jobs. • More influence for the consumers. • Local interests are possible. • Possibility to reinvest money in new technology. • Possibility to reinvest profit into EE activities, because money stays available for the community. • Local interests can be promoted. DISADVANTAGES • Profits are for the company and will not be available for the community. • Consumers have little influence in what is provided. • There is a risk for low interest in renewable energy.

PRIVATE OWNED

MODEL OF OWNERSHIP

• THE INITIAL FINANCING TO LAUNCH THE PROCESS is difficult to get. Without

• Monopoly of the association People can’t choose alternative suppliers.

PUBLIC OWNED

• Monopoly in pricing. • Risk for low innovation.

an initial investment one cannot start and convince others to commit financially Getting the initial financing through the connection to higher level of government (regional and national) and involving national agencies to give the Strategic Energy Plan a regional scope is essential;

CONSUMER OWNED

• THE POLITICAL ACCEPTANCE is difficult to get since it depends on short term aspects.
Focus should be put on energy sources availability and cost, yearly targets based on energy balance, secured energy supply ,creation of green jobs, citizens’ involvement…

Challenges, barriers and solutions
In the chapters above the playing field has been described. The positions of the main actors and their role have been analysed. This chapter describes challenges for an effective energy strategy. Barriers and possible solutions have been identified. General barriers and solutions • The DATA needed to establish the baseline and the energy balance can be difficult to collect. Availability, accessibility, quality, formats, type and scoping –national, regional, local-, timeframe, property, as well as inconsistencies and missing data and number of specialists involved in the integration process, are all aspects that must fit. An important partner in data collection is the energy company to get access to the data concerning energy use of households. If direct access is not made possible, a solution can be to transfer the data analysis and to ask the energy company.

• New skills and capacities that may not be available before. Training can be used

to develop skills at stakeholders and target groups. When training is not available then external knowledge must be introduced. This may be needed only in the start-up phase, but should anyhow be calculated as additional costs.

• THE LEGAL FRAMEWORK, due to the difficulty of changing existing inadequate

legislation and to the lack of legal framework to develop specific sectors of green energy sources (as coastal wind turbines in the case of Sønderborg);

• THE FLEXIBILITY IN THE PLANNING AND FORECASTING. Room must be left
to take into account changes of behaviour, of technologies and of legal framework - Plans should be flexible and iterative;

• THE FEASIBILITY of developing potential green energy sources considering nature
conservation requirements, neighbour proximity, cultural landscapes preservation… (E.g. wind turbines in Sønderborg).

• The BUY-IN by the different stakeholders. Involving stakeholders as partners may
not be possible if the stakeholders do not see the advantage of cooperation for their own goals.

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EXAMPLES from partners
Sønderborg ProjectZero, Denmark
ProjectZero is the vision for creating a carbon neutral Sønderborg municipality by 2029, based on CO2 neutral growth and sustainable urban development, with the creation of “green” jobs. The ProjectZero concept is based on energy efficiency combined with the County´s own green energy sources. Stakeholders from the whole municipality are involved in the Project Zero organization, which is a public-private partnership in charge of coordinating the planning process of the energy strategy.

The geothermal facility with the waste and wood chip incineration Heat Power Station, is now supplying since mid-2012 more than 10.000 households, businesses and industrial customers in the centre of Sønderborg. Coupled with thermal solar heating facilities (6000 m2 solar collectors) and other sources, the network will be expanded to supply approx. 60 % of households on the Island of Als with green, CO2-neutral district heating. Broager District Heating Company has been running a solar heating plant since late 2009. The plant has proven so successful that the company now is looking to expand their facilities and become 100% based on renewable energy in cogenerating heat and electricity for their customers and the grid. Gråsten District Heating Company is currently underway with a project that will construct the world’s largest combined thermal solar heating and absorption heat pump plant, reducing their current CO2-emissions by more than 90%. Plans are made for expanding the new plant to cover a larger supply-area and fully replace fossil fuels. The long term plans are to link up the different district heating “islands” located at urban areas throughout Sønderborg Municipality into a large, intelligent, green district heating network supplying CO2-neutral heat and hot water.

Key issues of ProjectZero are:
• Energy consumption reduction by 40% compared to baseline 2007 through energy • Conversion to local multiple renewable energy sources including efficient use of the
efficiency retrofit;

areas manure and waste from farming, geothermal heat, wind, solar heat and photovoltaic and using green combined heat and power generation systems; • Creation of an intelligent, dynamic energy system, in relation of the district heating network; • Creation of economic growth and new jobs by increasing demand for energy retrofit and craftsmen (strategy to create 500 new local jobs in the construction industry).
► http://www.projectzero.dk/

Sønderborg EUC Syd training center, Denmark
EUC Syd is a vocational regional technical college with core competencies in energy efficiency and strategic energy planning and is involved in Project Zero. EUC Syd is developing technical skills on inverters, photovoltaic, heat pumps, building construction, etc. It presents itself as “Zero house – Zero construction - Zero academy”. EUC Syd has trained 140 agents from Sønderborg Municipality responsible of building management and maintenance, as well as 150 energy counsellors screening buildings for energy renovation, in cooperation with the Danish Institute of Technology.

Sønderborg Green District Heating, Denmark
Sønderborg Fjernvarme district heating company is a consumer-owned non-profit utility company, where each consumer has a vote. It produces energy using green energy sources and distributes the energy. The energy sources have evolved from 100% oil in 1963, to a combination of oil, natural gas and waste incineration in 1985. In 1996 oil and natural gas were used in a combined heat and power station (cogeneration CHP) also powered with waste incineration and in 2012 a geothermal plant and wood chip boilers were added.
► http://www.geothermi.dk ► http://www.sonderborg-fjernvarme.dk

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An objective is to create new ways of teaching and learning in the fields of new energy producing and energy saving technologies. The plan is to establish a national and international training centre for renewable energy.

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CONCLUSIONS AND RECOMMENDATIONS
Key recommendations for efficient energy production and distribution systems for social housing are provided by CASH partners through the Sønderborg declaration:

Frankfurt CHP program, Germany
Combined heat and power (CHP) generation systems are an essential element in the energy transition.. Co-generation is flexible and can change the relation of produced power – heat. A system that integrates solar/wind with heat networks and CHP can buffer the irregular availability of wind and solar energy. Frankfurt has more than 200 cogeneration units for housing blocks installed. Connecting these small nets through the district heating network will improve flexibility and efficiency. The objective of the city is to work on a ‘District heating net map’, integrating green CHP. Its aim is to produce its own electricity, with social housing blocks predestined to have cogeneration central systems, and not depend on big power companies – concept of “Decentralized power”. CASH partners Frankfurt and Rhone-Alpes are partners in the IEE funded project “CHP goes green”.

Energy Strategy
• Social housing should be part of the climate policy of the whole city. • A clear vision and an energy strategy for the whole city and region are a precondition • For a successful energy strategy it is important to have an overview of the present
for the transformation of energy supply and distribution for social housing.

Tatabánya CHP and district heating system, Hungary
About 20,000 housing units (75.5% of the whole local housing stock) are connected to the district heating system in Tatabánya, Hungary. This system is provided by the local central heating company named KOMTÁVH_ Zrt. (District Heating Joint Stock Company of Komárom-Esztergom County) owned mostly by the Municipality (96.4%). The heat feeding the district heating is supplied by the local CHP Power Plant Company named Tatabánya Power Plant Ltd. owned at 51% by the municipality. This context enables the realisation of municipal energy policies related to the heating energy distribution for local housing. The local natural gas based CHP power plant is developing a programme for changing the energy source for renewables. The company granted 523 million HUF (1.8 million EUR) subsidy in the framework of the new national ‘Széchenyi Plan’ for the conversion to biomass based system. In addition it granted also about 247 million HUF (840 000 EUR) subsidy for the creation of a boiler for hot water. The total investment cost is 2.8 billion HUF (9.65 million EUR). The project has just started and will be finished in 2014. Hence the natural gas dependence will be reduced for 10%.

situation, potentials and problems, as well as of the different stakeholders and their interest. • One of the objectives of a clear vision and an energy strategy should be the creation of more green jobs. • Setting the goals of the Energy Plan should be done in close cooperation with different stakeholders. • The ‘Buy-in’ of stakeholders is key. The process of active building and creating ownership is needed to gather many actors behind a common strategy. • Understanding the position and, interests of potential partners is essential to negotiate a common strategy. • Technical, legal, organizational and social frameworks are just as decisive as the political support.

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Renewable energy and Climate Change
renewable energy sources is essential for all cities. Social housing and its energy supply must fit in this development: - Fossil energy supply is characterized by low investments costs -now that the production infrastructures exist - and high and insecure variable energy costs for the end-user. - Renewable energy supply is characterized by high investment costs and low costs for the actual energy use. - As a consequence the energy pricing for end users will be moving from low fixed costs with high variable costs towards higher fixed cost and lower variable costs. For social house owners it will be more difficult to use the reduction of energy costs as a motivation for behavioural change of tenants, or for covering the costs for energy efficient renovation. • The CASH cities express the need for external support to guarantee a stable fair cost and pricing system so as to ensure the right to energy to all citizens. • Energy supply for social housing must contribute to a secure, affordable and healthy housing situation. Preferences for renewables must be favoured securing renewables in the near future as opposed to fossil fuels. • No strategy towards a low carbon economy can succeed without a strong effort for reducing the demand through energy efficient renovation and changes in behaviours.

• The transformation from fossil energy towards a low carbon energy supply with

- with large heat storages (as in Denmark) is very helpful to integrate and balance the fluctuations of wind and solar electricity. • Communities of tenants can be involved in the production and distribution of renewable energy, to keep transport lines short and fixed costs low. • Combined heat and power is essential for community heating (and vice versa) and should be implemented with a communication and common decisions or common property of the local community of social housing tenants and should be supported by the European Community.

Recommendations for EC and Managing Authorities
• European directives and funding should take into account, that social housing
building blocks and areas which need to be modernized may be the nucleus of local energy distribution grids, thus giving better practical and economic conditions for the implementation of cogeneration units and transforming the supply from fossil fuels to renewables. • Energy modernization of social housing which comprises energy savings, cogeneration and renewable energies is a cross-sectorial issue and should be recognized in several directives and funding schemes. • The EU directives about energy performance of buildings (EPBD), energy efficiency and energy services (including CHP) should take into account, that the modernization of social housing may be a main structural factor of implementing savings of energy and cogeneration and ‘greening’ the energy sources. • In the Intelligent Energy for Europe (IEE) programme there should be a funding focus on modernization of social housing to meet energy, climate, health and social targets. • In EU regional development fund (ERDF), more than 10% should be eligible for the modernization of the energy production field linked to social housing, not only for energy and climate targets but for basically better and healthier living conditions and better social coherence. • In EU social funds (ESF) the training/formation and the creation of new jobs should be a funding focus for the modernization of the energy production field linked to social housing. Sønderborg, 11 May 2012

Ways to get there
• Diversification of several green energy sources is important and should be • Green Combined Heat Power cogeneration should be promoted, because it is a
encouraged.

flexible and efficient method for energy transformation. Cogeneration: - offers tremendous efficiency and cost savings by simultaneously producing heat and electricity - saves more than 30% of total primary energy compared to separated production, - may reduce the total energy costs for tenants, - can be implemented by energy companies (contracting), the social land lords or tenants associations, - with district heating nets is a basis for the easier switching from fossil energies to renewable energy (biomass, geothermal heat, municipal waste, solar thermal energy)

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MORE TO LEARN
An explanation on the social housing system in Denmark. KAB is a major organization in the Danish non profit housing sector.
► http://www.youtube.com/watch?v=ktsghMTds7w

Detailed information on Project Zero in Sønderborg:
► in Danish > http://www.projectzero.dk/ ► in English > http://uk.brightgreenbusiness.com/

CHP Goes Green, and IEE funded project on the role of Combined Heat Power in promoting renewable energy. Both CASH partners Frankfurt and Rhône-Alpes are partners in this project.
► http://www.chp-goes-green.info/

Energy efficiency obligations – the EU experience; ECEEE briefing for DG Energy on EU energy efficiency obligations on energy companies and their importance in meeting climate change and energy security challenges; March 2012, European Council for an Energy Efficient Economy.
► http://www.eceee.org/EED/energy-efficiency-obligations

Energy Strategy Sønderborg 2010
► www.sonderborgkommune.dk

Non-fossil energy technologies in 2050 and beyond, by Leif Sonderberg Petersen, in International Sustainable Energy Review, Volume 6, Issue 1, 2012.

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SYSTEMIC PROJECT MANAGEMENT

•W  hich are the critical ingredients to optimize a social housing energy efficient renovation project? • How could the existing involvement of the key actors in the different project phases be optimized? • W hat are the barriers and solutions to project management? • W hat are the coordination and control mechanisms? • What are the differences in project management between social landlords and co-properties?

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Content

Introduction & subject significance
During the 2 years of the implementation phase of the CASH project, several topics impacting the energy efficient renovation of social housing were covered, including technological, legal, financial, social and energy production components. The objective of this 6th mini-guide is to provide recommendations to improve the overall project cycle management, which can be reached ensuring the appropriate use of these ingredients through the adequate participation of the different groups of energy renovation actors and the development of synergies between them. Such an optimization of the engineering and management of a social housing energy efficient renovation (SHEER) project should contribute to raising the efficiency and lowering the cost of SHEER operations which deal with low income tenants &/or owners and which have to be replicated on a large scale, social housing representing 12% of European housing stock and 20% of CO2 emissions. Which coordination mechanism / body is required? What is the role of cities – in charge of CO2 reduction policies - in this engineering and what relationship should they have with the coordinating body and with local, regional and national entities? What stakeholders’ training is needed? What communication plan and monitoring tool should be adopted? These important issues were discussed by CASH partners, during the 6th transnational seminar held in Yambol, Bulgaria on September 2012, based on their experiences of SHEER project management and of barriers and challenges they are facing.

STATE-OF-THE-ART Project management KEY ISSUES DISCUSSED

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workshop 1: barriers and solutions encountered in SHEER project management workshop 2: coordination and control mechanism workshop 3: optimizing the involvement of key actors in SHEER phases and promoting synergies between them EXAMPLES FROM PARTNERS Valleys to Coast social landlord, Bridgend, UK A regional standard for energy renovation of social housing, Rhône-Alpes Region, France: Utrecht Municipality, The Netherlands Echirolles, France CONCLUSIONS & RECOMMENDATIONS Key recommendations for Social housing efficient energy renovation project management are provided by CASH partners through the Yambol declaration from September 2012. MORE TO LEARN
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STATE-OF-THE-ART
As recognized universally, Project management -applied to any field- is the discipline of defining, planning, securing through risk analysis, executing, controlling and monitoring project steps up to project closure.

The critical ingredients to optimize SHEER operations, in all dimensions, are:
• social and political buy-in / ownership of key stakeholders • choice of technology on the basis of its efficiency, simplicity to use and reproducibility • legislation adapted to local needs, allowing the implementation of optimal solution • appropriate financial engineering, allowing stable, affordable and simple financing • appropriate know-how of multidisciplinary stakeholders.
This engineering of social, scientific, practical and economic variables is the cornerstone of SHEER. It can be achieved through the participation of the different groups of energy renovation actors at the appropriate phases, their adequate training, and through the development of synergies between them. directly accessible and participative EE process over vast operations and of locally available, diversified green energy sources

Project management methodologies may vary, but in general they all use the following steps:
1.  Initiation: idea for a desirable outcome defined with the users 2.  Planning and Design: detailed project description defining and planning activities –
their relationship-, time, cost and resources on the basis of project constraints and risks

3.  Execution: building the project team and implementation of the work defined in the
project management plan

4.  Controlling and Monitoring: measuring the on-going project activities, monitoring the
project variables against the project baseline and identifying corrective actions to address risks and problems

5.  Closing: concluding all activities, analysing the final outcome and signing off the
project with key stakeholders.

In the context of SHEER project, this methodological approach corresponds to the following phases of energy efficient (EE) renovation process:
1. I nception, program of requirements and feasibility study (Initiation) 
esign tendering and design (Planning and Design) 2. D  onstruction tendering and Construction (Execution) 3. C  efects inspection and Completion (Controlling and Closing) 4. D  xploitation (Monitoring) 5. E However, having these steps correctly identified and logically organized is not sufficient to ensure the efficiency of a SHEER project and the minimization of its cost.

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The key actors present in the SHEER phases have been identified thoroughly by the “SHELTER Promoting Energy Renovation” Intelligent Energy Europe project (2010-2013), which has analysed the cases of 6 social landlords’ renovation processes in Belgium, Bulgaria, France, Italy and UK. They have identified seven main types of actors involved:

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KEY ISSUES DISCUSSED
Workshop 1: barriers and solutions encountered in SHEER project management
The main barriers highlighted by CASH partners in SHEER project management relate primarily to the financial aspects, the awareness and involvement of stakeholders throughout the process, the role of the cities as public authorities and the quality of the result. Specific barriers were encountered in partner cities from Eastern countries in which social housing has undergone tenure changes with public stock transferred into private ownership characterized by low income owners. For each of these barriers, the CASH network has proposed solutions based on partners’ field experiences, which are presented below.

• Social landlords / Social housing organizations (SHO) • Tenants • Designers, architects, engineers, consultants • Construction companies including installation companies • Maintenance companies • Manufacturers • Investors: banks, municipalities, governments, energy companies.
SHELTER has presented the phases in which these actors are involved, using the 6 cases. The CASH network has gone a step further and has analysed, on the basis of current CASH partners’ cases:

BARRIERS
• Long time frame of SHEER operations; •  Rigid financial frame (once approved it can’t change with project evolution); • Loans-conditions: availability, timescale, bad credit rating, cost…; • Equal treatment for funding between the public social landlords and the private • Misunderstanding of EE benefits by the stakeholders • Weak role of cities in SHEER process: weak institutional role in SHEER
low income owners

• W hat are the barriers encountered by CASH partners in SHEER project • What are their recommendations regarding coordination and control mechanisms? • H ow the existing involvement of the key actors in the SHEER phases could be
improved and how synergies could be promoted between them? management and potential solutions?

The goal of this analysis was to optimize the engineering of the above mentioned social, scientific, practical and economic variables and obtain a major shift in energy consumption in the social housing sector, while keeping the investment costs at a minimum and rent/charges couple stable or even lower.

operations and not enough communication with social landlords and with private owners to ensure linkages with municipal energy policies and to help them carry out the process; • Bad quality of renovation work due to lack of training of companies on SHEER requirements (construction companies, maintenance companies, etc…) and on the necessary coordination between work types / professions; •  Risk of gaps between the design and the results, particularly regarding the real energy savings; •  Communication gap between city, companies and owners (mostly low income owners); • Low income owners reject the idea of loans -even low interest bank loans under government guarantee-; • Poor motivation of low income owners.

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SOLUTIONS
Stakeholders’ involvement:
• Bring together stakeholders to work on a shared action plan with shared targets • Involve as upstream as possible the stakeholders of the implementation phases • Bring associations to work on the site after the renovation work to help tenants • Identify referent citizens among active citizens of the community and use existing
adapting to their new living environment; -in particular, involve construction companies in the design phase; (as URBACT Local Support Groups)

Quality and training:
• Promote quality through: the elaboration of specific regulation and quality
accreditation for private landlords, regular review and inspections, as well as through local, long term performance and quality contract between Social landlords and municipalities, specifying energy performance, maintenance, monitoring criteria –quality of work, tenants satisfaction, energy consumption…; • Favour the use of “Energy efficient (EE) renovation skills centers” to train the workers; • Train the different stakeholders involved in the SHEER process on EE renovation aspects -in particular within municipalities so as to have adequately skilled people to ensure the links with cities’ policies and energy strategy- and provide specific training to tenants on the use of the new equipment / systems • Use only best proven techniques avoiding electronic devices complex to control and maintain: elaborate a guide to help choosing appropriate technology energy efficient, simple to use and to maintain and integrate maintenance aspects upstream.

associations to motivate low income owners to engage themselves in EE renovation explaining them the interest of contracting a preferential loan.

Role of municipalities:
• Make cities play the role of facilitators for financial and technical aspects • Develop links between SHEER programmes and city policies (energy and social
policies, as well as, urban policies…) through the establishment of shared: targets, standards, renovation / demolition options, location and type of renovation…; • Ensure, as a first step, that the building fulfils the minimum conditions to be renovated through the development of a municipal database with information on buildings’ conditions.

Improving the urban environment and fighting stigma:
• Get rid of the negative image of social housing linked to the stigma of deprived
neighbourhoods through the marketing of renovation actions, the sharing of good practices and of positive experiences between tenants from different neighbourhoods, a greater social diversity favoured by EE renovation type and through education.

Communication:
• Promote communication between stakeholders: within departements, as well as,
between city, social landlords and private owners; • Ensure efficient transfer of information throughout the project and between all stakeholders.

Workshop 2: coordination and control mechanism
Regarding the coordination aspect of SHEER process, CASH partners recommend the constitution of a coordinating body with decision-making power, similar to a Steering Committee, integrating the following key players: • Project owner (Social landlords or private owners); • Project manager (controlling the process and ensuring linkages between stakeholders), which should be independent to avoid conflict of interests in the SHEER project management; • Citizens representatives and/or tenants ‘union; • Municipality: with representatives of Housing, Social and Urban planning services, as well as relevant elected members. There is no necessity of a permanent coordinating body which would add more bureaucracy, but of a reactive temporary body which could meet at key milestones along the project cycle and take critical decisions. However, a full time project manager should be assigned.

Funding:
• Ensure the participation of investors after the design phase, during the construction
and the maintenance phases to provide financial flexibility and readjust the funding scheme with realities of the project evolution if needed; • Ensure an equal access to preferential loans &/or other financial sources to Social landlords and to low income owners (public/private sectors) and design financial instruments covering all aspects of SHEER at the appropriate timescale and offering flexibility to allow adjustments with project evolution. • Balance the spending over the SHEER process to avoid penalties linked to the irregular rhythm of the different stages of the project.

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The coordinating body would be actively supported by an advisory board, similar to a URBACT Local Support Group, whose function would be to provide advice at key stages along the SHEER process, made up of: • Bodies involved at any level in urban renewal; • Representatives of national agencies linked to EE; • Energy companies (gas, heating, electricity…); • Third party investors / financing body. Other critical ingredients for the control and coordination • an independent Peer review of EE renovation proposals –with: city, experts from national entities related to the topic, financial entities, social landlords and tenants-. It should be organized at an early stage to ensure the selection of optimum scenario, while adding quality to the project through the integration of peers’ experiences / know-how. The Peer review should be kept during the SHEER project life; • a communication plan should be elaborated from the inception of a project and managed by the city. Continuous communication should be provided to the different stakeholders. It should develop a sense of ownership and help avoid conflicts.

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PLANNING SHO Governing bodies / Municipality Investors Designer / consulting firm Tenants Associations Constructions companies Manufacturers Maintenance companies

DESIGN

CONSTRUCTION

MAINTENANCE

Existing situation

Desired situation / involvement missing

Table 1: Stakeholders’ involvement in SHEER project managed by social landlord

• In the planning stages of a project managed by a social landlord, a ‘concept’ is

Workshop 3 : optimizing the involvement of key actors in sheer phases and promoting synergies between them
OPTIMIZING THE INVOLVEMENT OF KEY ACTORS
Differences exist in the stakeholders involved in an EE renovation project performed by a social landlord and/or by an owners’ association in Western countries and by private owners in Eastern countries. These cases have been analysed so as to be more specific and pertinent when establishing recommendations to optimize the involvement of actors in SHEER phases and to promote synergies between them.

a) Project Management Process by social housing landlord (e.g. cities as Bridgend-UK, Echirolles-France and Utrecht-The Netherlands)
In general, in projects managed by social landlords the existing involvement of actors can be depicted as follows (in dark green in Table 1):

created, based on surveys and observations of the needs of property. Discussions are then held by the social landlord with governing Bodies / municipality and associations involved in the neighbourhood and/or in the topic, to advance ideas within the project. In some cases, designer/consulting firms and investors are party to the discussion. Schemes rarely include construction companies, manufacturers and tenants. • During design stages, designer, professionals and governing bodies/municipality are included to fully develop the design of the renovation project and to plan the works, ensuring all necessary approvals are obtained. Tenants are consulted on the final design, mostly regarding comfort aspects, to analyse what requires improve. • During the tendering and the beginning of the construction phases, investors and funding bodies, construction companies, manufacturers and designers are included in finalising proposals for the project. This is to ensure that what is planned could be afforded. • During the construction phase, the work is undertaken in trio between the social landlord, the construction companies and the manufacturers. Tenants are informed on the construction workflows. • At the end of projects, during the maintenance phase, tenants are usually trained to use the new technologies, manufacturers for warranty protection, governing bodies for monitoring, construction companies for defects rectification final account and future defects liability periods of typically 12 months.

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b) Case of blocks of flats owned and managed by social housing landlords that contain long leaseholders who have bought flats within the blocks:
In some countries, the social landlord has strict legal control on how to undertake improvements with a very strong emphasis on early inclusion of co-owners in works’ planning. Initially the requirement for the works needs to be established and communicated to co-owners, (during the feasibility stage). Co-owners may ask for their own contractors to bid for the works. If the social landlord recieives no comments it can go to full design and tendering of the works. If there are comments, the social landlord has to consider them. When a tendered price has been established the social landlord has again to write to co-owners with a statement of estimated prices and may then contract for the works with the construction companies if no further comments are received. At the end of the project (Final Account’ phase) the social landlord writes to the co-owners with an Invoice/Bill for the final amount that they must pay. In other countries, the social landlord has to obtain a large majority of both tenants and co-owners (70%) to agree to the improvements, before the social landlord can contract for the works.

Proposed future improvements for sections a) & b):
To improve the SHEER process managed by social landlords, as illustrated in light green in Table 1, we may wish to extend the inclusion of tenants, manufacturers and construction companies in the earlier stages of the renovation, from the inception phase and, in particular, into the design phase. This will allow better planning of the concept of the scheme, while optimizing the energy efficiency of the buildings and behaviours and reducing the costs. Constructors should be involved in the design phase to bring their field knowledge so as to optimize the design and reduce maintenance, as well as renovation costs. Manufacturers should be involved in the design to help, for example, choosing suppliers for specific equipment before tendering. Maintenance companies involvement in the design phase could help optimize the choice of technologies and provide evaluation of the charges. Tenants should be able to exchange with designer and constructors so that the SHEER project meets tenants‘ needs and maximizes appropriate behaviours. They should be in contact with the municipality during all phases to facilitate the dialogue with the different stakeholders. Exploring the idea of more direct communication between construction companies and tenants in the teaching of the use of equipment is also recommended.

Furthermore, involving investors at earlier stages allows greater understanding of needs and ensuring coherence between the funding mechanisms and the needs, as well as, to have their approval on some demolition schemes. Involving them in the construction phase allows ensuring, through the monitoring of expenses, that the social landlord can afford what is planned and that there is no overspend. It might allow adjusting financial frame based on SHEER project evolution. It also creates confidence between investors and social landlords, facilitating the funding of further works and stabilizing the cost of financing. Relationship between governing bodies/municipality and social landlords should be continuous to ensure a strong link between SHEER projects and municipal energy policy, as well as an appropriate representation of the different groups of tenants. Municipal teams are elected by the population on the basis of policies, including the Municipal energy policy and should make sure results will be achieved. They should guarantee to citizens the success of SHEER projects and should thus ensure multi-stakeholders consultation, as well as, tenants’ involvement at all phases, acting as facilitators and as safeguards during exchanges. Their involvement in the construction and in the monitoring phases will allow guaranteeing results. It play the role of facilitators for financial and technical aspects.

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c) Project management process by Co-Properties
The striking differences in the case of a SHEER project managed by a co-property corporation, is: • In the planning, design and construction phases, the co-property’s corporation, the investors and the designer work in trio; • Tenants are almost not involved in the process except to inform them on the construction workflows and for maintenance during post-construction phase; • municipalities are often absent from the process, except if they contribute to the financing mechanism, in which case they are considered as a funding entity.
PLANNING Co properties’ corporation Investors / funding entities Designer Tenants Constructions companies Manufacturers Maintenance companies DESIGN CONSTRUCTION MAINTENANCE

A relatively high percentage of owners’ agreement is needed for a complex renovation (from 50% + 1 vote to 100% depending on the rules of the call for proposals or the rules of the bank). The other barriers are: • Low income owners’ culture against loans; • Access to flats impeded by owners; • Inexistence of municipal database with blocks characteristics and conditions describing the building capacity for an EE renovation and no budget for pre-diagnosis; • No legal EE renovation incentives for low income owners. If the EE renovation project is decided by the owners, it is managed by a Joint representative body - owners’ association organizing the main interventions related to the building, including EE renovation. The general assembly of the owners is the forum for decision making procedures related to the building (e. g. reconstruction / renovation…). The involvement of the different stakeholders in the phases of an EE renovation managed by a Joint representative body is illustrated in Table 3.

Existing situation

Desired situation / involvement missing
PLANNING Design tendering Feasibility study DESIGN CONSTRUCTION MAINTENANCE

Table 2: Stakeholders’ involvement in SHEER project managed by a co-property corporation
Program of requirements

Construction tendering

To improve the SHEER process managed by Co-properties’ corporations, it is key to include tenants, construction companies and manufacturers into earlier phases, at least since the design phase, to allow optimizing buildings’ energy efficiency and reducing EE renovation costs. d) Project management process by Co-Properties of Eastern European countries as Hungary and Bulgaria In most Eastern European countries, the public stock has been transferred to private ownership characterized by low income owners. The percentage of private ownership is traditionally high - around 90% - and the rate of completely municipally owned block of flats is low. The blocks of flats are over 40 years old, with different levels of maintenance. Such a complex situation makes energy efficient renovation expensive and external subsidy necessary (e. g. the European Regional Development Fund -ERDF grant). Usual financing bodies are: the State, the municipality and the owners and sometimes it is necessary to involve other external financing bodies (banks etc.).

Inception

Stakeholders

Government bodies Owners Joint representatives Local District Heating company Representative of experts Constructions companies Designer / consulting firm Investors

Existing situation

Desired situation / involvement missing

Table 3: Project management process by co-properties in Eastern-European countries

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Exploitation

Completion

Defects inspection

Future Improvements for c):

Construction

Design

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If the EE renovation project is a municipal decision, it is managed by a Project management body - a municipality funded non-profit company managing all the main steps of the process and supported by the Joint representative body. The decision making body is the Municipality and the Mayor and local experts - chief architect, climate manager, energy manager etc.- are all representatives of municipal departments. If the EE renovation project is financed by ERDF, other stakeholders should be taken into account: - Managing Authorities: National Development Agency, Regional Development Agency. - Intermediate bodies for applications: first level controller etc. Future improvements, illustrated in light green in Table 3, are:

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EXAMPLES from partners
Valleys to Coast social landlord, Bridgend, UK
In Valleys to Coast (V2C) SHEER projects, involvement of stakeholders starts early. At the planning phase V2C invites discussions with Governing bodies, designer and investors to get shared ideas and ensure appropriate support. Depending on the type of project, manufacturers are involved since the feasibility study to choose suppliers for specific equipment before tendering (e.g. when requiring equipment with low maintenance). During the design phase, V2C includes designer / consultant firm, professionals, tenants and governing bodies/municipality to make improvements, ease the design approval and optimize workflows. V2C can have a tender with construction companies at that phase to optimize the design. For specific projects with limited timeframe, manufacturers can be chosen. Sometimes, tenants are involved since the feasibility study to give their opinion on design details, as well as investors to have their approval on some demolition schemes. During the tendering and construction phases, V2C includes investors and funding bodies, construction companies, manufacturers and designers to finalise proposals and ensure what is planned to do can be afforded. During the construction phase in V2C ‘private investors’ closely monitor the actual expenditure against the initial budgeted plans. This requires good realistic timescales in V2C planning and allows avoiding over spending money against plans. Failure to deliver closely to plans may mean that investors lose ‘confidence’ in V2C skills to ‘control projects’ which may then lead to them not funding further work in the future or raising the cost of finance as they consider there are ‘risks’ to lend money. At end of projects, tenants are included again for usage of new technologies, manufacturers for warranty protection, governing bodies for monitoring, construction companies for defects rectification, final account and future defects liability periods of typically 12 months. Investors are always involved in the construction and maintenance phases, allowing re-pricing the interest on the loan / penalties.

• involving the owners / Joint representatives in the early period of inception

can contribute to a successful renovation procedure. • involving the designers, architects and constructors in the planning phase by an agreement based on a public procurement procedure could reduce the conflicts between these actors and the procurer. • Involving the investors during the program of requirements phase can optimize the choice of the financial frame/instrument; • Integrating an independent project management body responsible for all the main issues dedicated to the renovation can also improve the success of an EE renovation project and ensure a constant link with the different stakeholders, in particular construction and design firms. The City of Tatabánya has created such a project management non-profit ltd.

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Rhône-Alpes Region, France: A regional standard for energy renovation of social housing
In Rhône-Alpes region, 5,000 social housing have to be renovated each year to fit in with the national energy legislation requirements. To help fulfil this demanding program, Rhône-Alpes regional council, the regional federation of social landlords (ARRA-HLM) and the regional agency for energy and environment (ADEME) and other organizations set up together a regional standard to improve the quality of thermal renovation of social housing: the Environmental Quality of Buildings (EQB) standard. Launched in 2010, this standard allows subsidies granting and technical assistance to social landlords or private owners who match its criterion. It proposes a global approach of the renovation (architecture, energy, material, charges, accessibility, health, etc.) which is based on technical, energetic and social diagnosis. This standard is of great support for the social landlords in terms of project management. Rather than being a basic budget line in the financial planning, it leads them towards a global project management. The expected energy efficiency of the renovated building has to be precisely assessed - the subsidy level promotes high quality operations. The social landlords have thus to build a real energy strategy, by targeting an energy efficiency level and describing precisely the technology that will be used on the renovated building. Here are some required steps for the project management: • Getting professional references of the team in charge of the project conception • Realization of preliminary studies (social, architectural, technical as well as a precise energetic study) • Production of an energetic and environmental assessment related to the proper requirements of EQB standard • Including the maintenance firm in the renovation project (for energy assessment, choice of the technologies, evaluation of the charges) • Designation of a person in the conception team responsible for the issues related to air tightness • Selection of work companies regarding also skills and experience rather than price alone, and giving a specific training of the selected company about the project specificities • Designing an energy savings monitoring program. Not solely restricted to the energetic aspects, the EQB standard requires the establishment of participative consultation committees with inhabitants all along the project cycle. After the works, social landlords have to help them using the new devices in their homes.

In order to improve the quality of the renovated buildings, social landlords are also expected to increase the accessibility for disabled people. This global costs approach allows optimizing the overall building maintenance costs. The project management is thus complex and demanding to achieve best-quality operations. Therefore a technical assistance has been set up to answer the social landlords’ questions, through a website and a hotline – they are much used indeed. Building on the EQB standard success, the next step would be to spread these good practices for project management to all the social landlords in Rhône-Alpes, in order for them to use it systematically when leading a thermal renovation operation.

Utrecht Municipality, The Netherlands
The municipality of Utrecht has set the goal to be climate neutral in 2030. To achieve this, Utrecht has worked both with social landlords and with residents for the private homes. The municipality is designing the SHEER projects with social landlords through a “Gentleman Agreement” and is involved in all phases. One of the projects in the Programme Utrechtse Energie (Utrecht Energy Programme) concerning private homes is ‘The E-team in action’. In this project the municipality cooperates with a team of 15 residents of two town districts in order to promote energy-efficiency in private homes. These so called energy ambassadors, who work on a voluntary basis, stimulate their own neighbours and district residents to save energy in their houses.
► http://www.utrecht.nl/smartsite.dws?id=363948.

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Local governments in The Netherlands nowadays are reconsidering their relationship with the public sphere; the project is an example of a new approach to societal issues. Other important partners in the project are:  rganizations for energy consultancy; they give energy advice to the house 1. o owners; 2.  Financial organizations, developing attractive financial products to make the energy-saving measures affordable;  he social housing organizations, responsible for the housing of citizens with 3. t lower incomes; 4. several industrial companies which are taking care of energy saving measures, such as isolation, establish solar panels etcetera. Together with the municipality all partners cooperate in a consortium. The challenge is to explore the best public-private cooperation (a kind of ‘joint venture’) between local government, citizens and ‘the market’ to become a sustainable town.

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CONCLUSIONS AND RECOMMENDATIONS
Key recommendations for Social housing efficient energy renovation project management are provided by CASH partners through the Yambol declaration from September 2012:

Develop a new model ensuring a systemic approach of Social Housing Energy efficient renovation project engineering: integrating social, political, environmental, legal and financial components and competences.

Management
• Set-up an independent project management body specifically created for the • Set-up a Monitoring committee with critical stakeholders involved at key stages of • Keep the project objectives in mind throughout the project • Keep motivation throughout the process • Keep the project cycle as simple and flexible as possible and keep the timescale
under control. the project project, integrating critical stakeholders

Echirolles, France
Developing synergies between stakeholders is a major issue tackled by the City of Echirolles, France, in its public and private EE renovation projects. The following diagram synthesises the synergies favoured among key stakeholders to optimize the timeframe, the cost, the efficiency and the sustainability of such projects.

Process and partnership
• Ensure the “buy-in” of key stakeholders • Involve as many strategic stakeholders as possible in the planning phase • Involve the construction companies, field experts, energy specialists and • Involve investors upstream to favour their better understanding of the needs. • Involve politicians / elected members since the inception • Take into account the different timescales of the stakeholders and ensure actions • Favour transverse work within entities involved in the process.
in line with the different needs manufacturers at the design phase to optimize EE and reduce costs

Citizens’ involvement
• Involve tenants and existing local association in the decision making since the
inception phase so as to favour better appropriation, better understanding and behaviour • Improve the relationship between tenants, municipality and designers • Ensure a dedicated budget for tenants participation.

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Quality
• Involve energy specialists from the inception • Integrate quality requirements / criteria upstream • Ensure the use of technology: energy efficient, simple to use, requiring low and • Set-up lower EE renovation limits • Ensure there is a balance with the other needs (eg: waste and water
management). easy maintenance, applicable to large-scale operations, with competitive price

MORE TO LEARN
T.B. Salcedo, A. Straub and H. J. Visscher, 2012, “Energy Renovation Process, Overview of SHELTER Social Housing Organisations – Models of Coordination” D 3.2, SHELTER – Promoting Energy Renovation, Intelligent Energy Europe project 2010-2013. Bernard Wallyn, 2009, Energy Renovation project Sterrenveld, Wezembeek-Oppem, in Sustainable Energy Saving in Existing Housing Now – Antwerp 14-10, 2009. J. Davidson Frame, 2002, The new Project Management - tools for an age of rapid change, complexity, and other business realities, Jossey-Bass editor. Other web references:
► http://www.pmi.org/About-Us/About-Us-What-is-Project-Management.aspx ► http://www.projectsmart.co.uk/introduction-to-project-management.html ► http://www.managementstudyguide.com/project-management.htm ► http://www.mpug.com/Pages/WhatisProjectManagement.aspx

Financing
• Anticipate global cost (on a long term basis) • Better consider the financial implications of each idea / action and communicate • Match the funding schemes with the timeframe / rhythm of the project and allow • I n the case of third party financing, ensure that social landlords have the
appropriate in-house knowledge to ensure the control of the investor’s activities. adjustments according to the project evolution about them

Education
• Promote education as a tool to get trained stakeholders with the required skills at
every level / phase of the renovation process (use the educational systems) • Train the municipal staff in EE renovation • Train energy ambassadors to facilitate communication with tenants • Train social landlords’ staff on energy performance contracting to ensure control and monitoring.

Communication
• Provide and implement a Communication plan during the process with the different • Ensure the communication to social landlords of the municipal policy on EE • Provide the end users with project details at the different stages to increase • Remove the stigma of deprived neighbourhoods.
transparency and to improve public consultation stakeholders

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CASH GUIDE conclusion:
Get ready for 2014!
The European Union wants to be back on track to reach the objective of 20% reduction of energy consumption by 2020. It is not only a question of political credibility. It is also for cities an opportunity to mitigate and adapt to climate change and thus create new sources of growth. Cities should see the EU as an ally in this quest, not as a costly constraint. The EU indeed provides many new opportunities to support green social housing and thus increasing both the environmental performance and social inclusion in cities. To seize these opportunities requires a bit of preparation especially for the implementation of the Structural Funds programming period 2014-2020. Member States and Regions will indeed prepare their Partnership agreements and Operational Programmes from early 2013 onwards. They should rely on the expertise of cities involved in other EU initiatives such as URBACT II or the Covenant of Mayors, and cities all over Europe should benefit from CASH partners’ know-how on green social housing and articulate programmes and projects around the six dimensions of technological issues, legal framework, financial engineering, citizens’ involvement, energy production aspects and systemic project management.

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ALSO AVAILABLE
“Cities’ action for sustainable housing” 11 CASH partners’ local action plans :

URBACT WEBSITE
http://urbact.eu/cash Outputs in other languages:
English, french, german, italian, bulgarian, hungarian, greek, dutch, danish

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ECHIROLLES WEBSITE
http://www.ville-echirolles.fr/developpement-durable

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Lead Partner Thierry Monel, Ville Echirolles, France t.monel@ville-echirolles.fr Tel: 33 (0) 4-76-206060 Lead Coordinator Sophie Moreau, Ville Echirolles, France s.moreau@ville-echirolles.fr Tel: 33 (0) 4-76205600 Bridgend (UK) Elaine Williams elaine.williams@bridgend.gov.uk Brindisi (Italy) Valerio Costantino arch.costantino@gmail.com Frankfurt (Germany) Werner Neumann werner.neumann@stadt-frankfurt.de Les Mureaux (France) Brigitte Bonafoux bbonafoux@mairie-lesmureaux.fr and Laeticia Bideau-Maruejouls lmaruejouls@mairie-lesmureaux.fr Eordea (Greece) Kostas Nikou knikou@gmail.com Sonderborg Inge Olsen iols@sonderborg.dk

Tatabanya Tamas Galgovics galgovics.tamas@tatabanya.hu Utrecht Inge Van der Klundert i.van.de.klundert@utrecht.nl Yambol Mariya Paspaldzhieva paspaldjieva@abv.bg Conseil Régional Rhône-Alpes Claire Prédal cpredal@rhonealpes.fr

Echirolles Elected member in charge of CASH Stéphanie Abrial stephanie.abrial@iepg.fr Echirolles Elected member in charge of Housing Carole Simard c.simard@ville-echirolles.fr Lead Partner Technical support team Stephane Durand, Sustainable Development Department s.durand@ville-echirolles.fr Sylvain Bove, Financial Officer s.bove@ville-echirolles.fr

Document prepared by: Sophie Moreau - Lead Coordinator, Jan Dictus - Lead expert, with the contribution of CASH local Coordinators, Lead Partner team and CASH partners Photography credentials: Lead and local CASH coordinators Photography cover : Nadine Barbaçon - contact@uneuro.org Layout: www.sharewood-creative.com Translated by: Accent Mondial.

URBACT is an European exchange and learning programme promoting sustainable urban developpement. CASH (Cities’ Action for Sustainable Housing) is an URBACT network of 11 partners
(10 cities- Utrecht, Tatabanya, Sonderborg, Les Mureaux, Brindisi, Bridgend, Frankfurt, Yambol, Eordea, Echirolles and one region Region Rhône-Alpes) led by the city of Echirolles in France. The ambition of the CASH project is to propose new solutions and promote new policies for the sustainable renovation of social and affordable housing units in the European Union. Cities have become major policy players in the area of climate change policy and sustainable energy policy, for at least 2 simple and interlinked reasons: first, cities use a significant proportion of the world’s energy and secondly, cities have significant energy and CO2 savings potential . In this book we present the eleven Local Actions Plans designed by the partners of URBACT CASH project, as a local contribution to the social and environmental issue of climate change.

URBACT CASH PROGRAM

PARTNERS

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