Energy Performance of Buildings - Creating the conditions to make renovation faster, deeper, smarter, service- and data-driven

Topic description

Objective:

This topic contributes to the goals of the EU Renovation Wave strategy^[1] and aims to help implement current and future buildings policies, notably in view of the revised Energy Performance of Buildings Directive (EPBD)^[2], but considering as well aspects of the New European Bauhaus initiative^[3].

This topic addresses several areas that are key for the achievement of the ambitious EU targets for the decarbonisation of buildings. It aims to develop and deploy approaches that bring actors, markets, frameworks and innovative solutions together to increase the attractiveness of building performance up-grades and to reduce the administrative, logistic and financial burden that still goes along with (deep) retrofitting of buildings. The topic also aims to address the need for quality data to make verification and financing more robust and to help deploy services that valorise building energy efficiency and smartness. Proposals should, where appropriate, explore synergies, while linking to, building on, complementing or promoting the market uptake of results from projects funded under other EU programmes, notably Horizon 2020 and Horizon Europe.

Proposals are expected to focus on one of the three scopes (A, B or C) established below. In their introduction, proposals should clearly identify one scope against which the proposal shall be evaluated. In case a proposal addresses elements of more than one scope, this should be duly justified.

Scope A: Facilitating large-scale deep renovation

Proposals should stimulate volume and demand of deep renovation, by aggregating demand, linking demand and supply, by incentivising uptake of industrialised prefabrication solutions with reduced on-site construction time, by rolling out tools such as building renovation passports or by improving coordination of the supply chain. The topic welcomes action in all markets regardless of their readiness or maturity, and in particular in less mature markets. Proposals should explain and adapt the proposed activities to the context in which they will be acting.

Applicants are referred to the proposal for a recast of the Energy Performance of Buildings Directive^[4] which provides legal definitions for concepts such as “deep renovation”, “staged deep renovation” or “zero emissions building”.

Proposals should address one of the following areas/aspects:

1. Remove market barriers and stimulate the development of business models for the implementation of large-scale deep renovation projects, e.g. at district or neighbourhood level, and including the roll out of industrialised prefabrication solutions, where relevant, to reduce construction costs, time, material use and potential supply-side disruptions. Proposals should make the whole renovation process easier and more attractive for all those involved, from construction stakeholders and investors to building owners and occupants. Proposals should facilitate demand mobilisation and aggregation and the links between supply and demand, e.g. interaction between building owners managers and suppliers. Proposals should not focus on technology development, but on rolling-out market-ready technology and packages and target specific building typologies that allow for a fast and large-scale deployment. Proposals can also address standardisation of building renovation solutions and circularity-related aspects where relevant. On top of technical solutions, business models, financing solutions, performance guarantees, design and procurement processes should be taken into account.
2. Roll out renovation passports for buildings (recast EPBD), providing a clear strategy for staged renovation with the objective to transform the building into a zero-emission building by 2050, helping owners and investors plan the best timing and scope for the interventions, and linking to finance and funding schemes. Proposals should align with the EU and national frameworks and address the interrelation with Energy Performance Certificates. Proposals should also coordinate with existing support and funding schemes and one-stop-shops or renovation support services for homeowners.
3. Remove barriers linked to the lack of coordination between the different actors and trades involved in the supply side of renovation works (in particular SMEs and individual craftspeople), and the capacity needed in the sector to deliver the renovation wave objectives. Actions should incentivise collaboration and result in the establishment of partnerships and consortia able to deliver business models and long-lasting collaboration models between MSMEs (Micro, Small and Medium Enterprises) which effectively reach the building and homeowners and enable deep renovations with guarantees (including the switch to efficient renewable-based heating and cooling), reducing risks and transaction costs for companies. This could include standardising contractual aspects, e.g. liabilities in case of low quality work, training different trades to deliver joint quotes and projects for deep renovation, ensuring a more robust information sharing between companies, showcasing integrated offers for deep renovations to potential customers, etc. Proposals should also integrate aspects related to quality and guarantees, giving confidence to present and future customers, including for example potential linkage of performance guarantees to payments and procedures for post-completion evaluation of works to integrate lessons learnt. Proposals should ensure uptake of the results in the targeted local, regional and/or national markets, and for the sub-sector of the building stock tackled, for example through the involvement of professional organisations and/or other relevant stakeholders.

Scope B: Regulatory and administrative frameworks

Actions are expected to promote evolutions in order to remove barriers to building energy renovation and to stimulate more ambitious levels of energy savings and integration of on-site renewable energy in renovations, in order to reach the target of a carbon-neutral building stock by 2050.

Proposals should address barriers linked to the legal and regulatory framework in particular at local and regional level, and in the spirit of the recast as proposed for the Energy Performance of Buildings Directive (EPBD). This could include adapting these frameworks; adapting administrative procedures; adapting procurement rules, adapting existing support schemes and funding frameworks etc. in order to deliver the 2030 and 2050 targets on building renovation.

Proposals should clearly identify the specific barriers and the governance level which will be addressed, the expected outcome and provide an indication of the feasibility and timeline for implementation. The relevant public authorities should be involved in the project activities (not necessarily as consortium members) in order to ensure implementation of the proposed changes, with an indication of the necessary conditions/likelihood for implementing changes. Proposals should support public authorities in estimating the effectiveness of the frameworks and identifying changes to be introduced. Proposals should seek to exchange on examples and best practices with other regions and/or countries.

Wherever possible, proposals should prioritise multi-ownership and multi-apartment buildings.

More specific (non-exclusive) examples of aspects that proposals could address are:

• Adapting the legal framework, permitting rules and administrative procedures to ease the implementation of energy efficiency and on-site integrated renewable energy measures in buildings. Proposals could consider as well aspects related to the modernisation of buildings, including demand-response and infrastructure for sustainable mobility (e.g. EV charging).
• Addressing governance, decision-making and financing in/of co-ownership structures (e.g. building management, homeowners associations and structural barriers in relation to landlord-tenant split incentives, access of co-owners associations as legal entity to loans and contracts, etc.).^[5]
• Adapting public grants, loan, guarantees and technical assistance schemes to support deep renovation (in one go or staged) and avoid lock-in effects.

For actions specifically providing support for the implementation of EU provisions at Member State level and/ or through national authorities, please refer to topic LIFE-2023-CET-POLICY.

Scope C: Buildings energy data and services

Actions are expected to improve the availability, quality and accuracy of buildings data and the access to these for multiple usages and parties including financial institutions; they are moreover expected to explore and foster the use of data for the development and financing of services that enhance the energy performance of buildings and the efficiency of the system. Actions may also develop and deploy approaches for use of better data to improve the reliability and consistency of key instruments, such as Energy Performance Certificates.

Technological, including innovative, solutions may be employed as enablers but must not be at the centre of the action.

Actions should address for example one or more of the following areas/aspects:

• Develop methodologies that make the collection and structuring of data more robust and contribute to the systematic integration and use of conventional and metered including, where relevant, big data. This includes innovative methods and tools to measure and/or estimate and/or calculate energy performance and energy savings, facilitate financing of energy renovation and roll-out of energy services^[6]. This could also address specifically flexibility, including demand response, and non-energy benefits.
• As established in the proposal for a recast of the Energy Performance of Buildings Directive (EPBD), help improve the access of building owners, tenants and building managers to buildings data; help improve access of third parties, notably financial institutions, and service providers such as ESCOs and aggregators, to buildings data, e.g. by supporting evolutions of national regulations related to energy data access or developing data platforms.
• Develop, implement and roll-out approaches that use metered data and integrated data collection/processing for Energy Performance Certificates (EPC) towards a) improving the accuracy and reliability of EPCs and/or b) enhancing the market uptake of EPCs; this includes for example actions that help link the rating of EPCs and the improvement of the rating to the value of a building in view of potential investments.
• Promote and support the use of innovative technologies and digital tools for inspections, notably following constructions and renovations.
• Develop/connect/integrate tools and platforms that would contribute to the coordination and harmonisation of data models, methodologies and standards for the energy performance of buildings.
• Develop services that make use of actual energy consumption data, metered savings and flexibility of active buildings and explore the contribution of active buildings to the efficiency and stability of the energy system.

Proposals must be submitted by at least 3 applicants (beneficiaries; not affiliated entities) from 3 different eligible countries.

The Commission considers that proposals requesting a contribution from the EU of up to EUR 2 million would allow the specific objectives to be addressed appropriately. Nonetheless, this does not preclude submission and selection of proposals requesting other amounts.

Proposals should present the concrete results which will be delivered by the activities, and demonstrate how these results will contribute to the topic-specific impacts. This demonstration should include a detailed analysis of the starting point and a set of well-substantiated assumptions, and establish clear causality links between the results and the expected impacts.

For Scope A:

Proposals submitted under scope A should demonstrate how they will contribute to the following impacts, depending on the area addressed:

• Development of business models for the implementation of large-scale deep renovation projects allowing to reduce costs.
• Roll out of renovation passports for buildings.
• Improved coordination between the different actors and trades involved in the supply side of renovation works (in particular SMEs and individual craftspeople).
• Effective and replicable solutions leading to increased rates of renovation.

Proposals should quantify their results and impacts using the indicators provided for the topic, when they are relevant for the proposed activities. They should also propose indicators which are specific to the proposed activities. Proposals are not expected to address all the listed impacts and indicators. The results and impacts should be quantified for the end of the project and for 5 years after the end of the project.

The indicators for scope A include:

• Increased renovation rates.
• Increased deep renovation rates.
• Number of deep renovations with reduced costs.
• Number of buildings equipped with a renovation passport.
• Number of companies benefiting from improved coordination for deep renovation projects.

For Scope B:

Proposals submitted under scope B should demonstrate how they will contribute to the following impacts, depending on the aspects addressed:

• Adapted legal frameworks, permitting rules and administrative procedures to ease the implementation of energy efficiency and on-site integrated renewable energy measures in buildings.
• Improved governance, decision-making and financing in/of co-ownership structures.
• Adapting existing support schemes and funding frameworks to deliver large-scale deep renovation.

Proposals should quantify their results and impacts using the indicators provided for the topic, when they are relevant for the proposed activities. They should also propose indicators which are specific to the proposed activities. Proposals are not expected to address all the listed impacts and indicators. The results and impacts should be quantified for the end of the project and for 5 years after the end of the project.

The indicators for scope B include:

• Increased renovation rates.
• Increased deep renovation rates.
• Number of legislations, policies, frameworks or strategies created/adapted.
• Number of public authorities adapting their policy and/or legal and administrative frameworks, and associated population.
• Number of public authorities adapting their funding frameworks, and associated population.
• Number of co-ownerships supported by the activity, where relevant.

For Scope C:

Proposals submitted under scope C should demonstrate how they will contribute to the following impacts:

• Improved availability, quality and accuracy of buildings data.
• Improved access to and use of buildings performance data by financial institutions, service providers and building owners/operators, e.g. to deploy innovative financing schemes and/ or dedicated financial products.
• Improved reliability and consistency of Energy Performance Certificates; increased up-take of EPCs in the market, including stronger consideration in the valorisation of buildings and buildings portfolios.
• Better quality and cost-effectiveness of inspections and of the assessment procedures carried out for the Energy Performance Certificate.
• Up-take of improved methodologies to measure and monetise primary benefits and co-benefits of innovative services, such as environmental and health externalities.

Proposals should quantify their results and impacts using the indicators provided for the topic, when they are relevant for the proposed activities. They should also propose indicators which are specific to the proposed activities. Proposals are not expected to address all the listed impacts and indicators. The results and impacts should be quantified for the end of the project and for 5 years after the end of the project.

The indicators for scope C include:

• Number of methodologies and interoperable data models taken up by stakeholders, including market and public/ policy-relevant stakeholders.
• Number of references evidencing the use of improved buildings data by market and public/policy-relevant stakeholders.
• Number of third parties, including financial institutions and energy service companies, benefitting from access to building performance data.
• Number of more accurate and reliable Energy Performance Certificate-schemes and assessment procedures/ tools tested and/or deployed.
• Number of references evidencing the use of more accurate and reliable Energy Performance Certificates by public and/or market stakeholders, including financial institutions.
• Number of stakeholders, notably public, using and feeding into platforms designed to host and integrate data models and standards in the area of energy performance of buildings.
• Number of innovative inspection procedures and tools developed, tested and/or deployed.
• Number of consumers (residential, commercial, public) offering or benefitting from new and smart service offers.

Proposals under scopes A, B and C should also quantify their impacts related to the following common indicators for the LIFE Clean Energy Transition subprogramme:

• Investments in sustainable energy (energy efficiency and renewables) triggered by the project (cumulative, in million Euro).
• Primary energy savings triggered by the project (in GWh/year).
• Renewable energy generation triggered by the project (in GWh/year).
• Reduction of greenhouse gases emissions (in tCO₂-eq/year).

[1]Communication from the Commission to the European Parliament, the European Council, the European Economic and Social Committee and the Committee of Regions, A Renovation Wave for Europe - greening our buildings, creating jobs, improving lives, COM(2020) 662 final.

[2]Proposal for a Directive of the European Parliament and of the Council on the energy performance of buildings (recast), COM(2021) 802 final.

[3]https://new-european-bauhaus.europa.eu/index_en.

[4]COM(2021) 802 final.

[5]In case the action specifically focuses on vulnerable consumers, applicants are referred to topic LIFE-2023-CET-ENERPOV.

[6]Activities related more specifically to benchmarking, tagging, monitoring and disclosure of data on energy efficiency investments and financial performance thereof are addressed more specifically under the topic LIFE-2023-CET-PRIVAFIN.