Innovative and tailored Financing Schemes for
Social Housing Refurbishment in Enlarged Europe

Building Examples

Latvia | Czech Republic | Poland

Latvia

Although quite a few energy efficiency projects have been implemented in residential sector, most of them do not have monitoring of the results especially the earliest projects. One of the main reasons is lack of energy meters in buildings in 1990-ies and the additional costs related to monitoring and evaluation. Some of the earliest projects have been monitored by Riga Technical university researchers and consulting companies experts. Since 2003 all buildings that received co-financing for energy audits by state and private sector and are managed by the Housing Agency has an obligation to report annually on energy consumption and implemented energy efficiency measures.
The main measures implemented are insulation of walls, roofs, basement ceilings, change or sealing of windows, insulation of heating pipes, installation of heat meter allocators etc.

Earliest projects were implemented in the scope of different international programms as pilot projects. In 1999 the first project in Kuldiga was implemented by local apartment owner cooperative and the first commercial loan was taken for energy efficiency project in apartment dwelling. For this project as well as for almost all projects that followed and were initiated and implemented by local apartment owner cooperatives the main driver leading to success were champions – persons from the building who were leading through the process from the very beginning and convinced the rest of apartment owners and tenants. The same tendency still has been recognized in other successful projects in Latvia today. Proven success of first projects and rising energy prices are additional reasons that have important role during decision making process.
One of the most successful example among municipalities in Latvia is Valmiera where municipality gives financial support to energy efficiency measures in apartment buildings (for more details see Chapter 4) and several buildings have implemented EE measures.

Energy Efficiency project in apartment dwelling in Darza street 13, Valmiera

In 2005 in Darza street 13, Valmiera the following energy efficiency measures were performed: Latvia
  • Insulation of walls;
  • Insulation of basement ceiling;
  • Insulation of attic;
  • Closing of unused waste pipes;
  • Change of heat insulation of main heating system pipes.


Total investment is 75116 Ls (107,300 EUR) and 28.2 EUR/m2. It is financed by commercial bank loan. If the heat tariff is at present level (2005/2006) 19.81 Ls/MWh (28.30 EUR/MWh), simple pay-back time is 21.9 years.

Before renovation energy audit was performed. Data from energy audit and data gathered after energy efficiency measures are installed see in Table 6.1.

Table 6.1. Data from Darza street 13, Valmiera
  Before renovation (data from energy audit) After renovation
Average energy consumption for heatingg demand recalculated to standard year*, MWh/year 587.88 414.64**
Specific heat consumption, kWh/m2year 166 177
Average room temperature, oC 20 21

* - number of heating days: 203; outdoor temperature in heating season: 0 oC, average room temperature: +18 oC.
** - provisional data because data were gathered during the last month of heating season 2005/2006


As the data in Table 6.1. show, heat energy consumption has decreased by 173.2 MWh/year or 49 kWh/m2year.

Fig.6.1. illustrates heating energy consumption before and after energy efficiency measures were implemented.
energy consumption before and after energy efficiency 
measures
Fig.6.1. Heating energy consumption recalculated for standard year.

Fig.6.2. illustrates heating energy consumption dependance from outdoor temperature. heating energy consumption dependance from outdoor temperature

Fig,6.2. Building heating energy consumption depending on outdoor temperature (recalculated to 30 day month)


Energy Efficiency project in apartment dwelling in Dzintaru street 2, Kuldiga

In 2005 in Dzintara street 2, Kuldiga the following energy efficiency measures were performed:
    Latvia
  • Insulation of walls;
  • change of windows in stair cases and partly in apartaments;
  • change of main entrance doors;
  • Change of heat insulation of main heating system pipes;
  • Balancing of heating system;
  • Change of radiators;
  • Installation of heat metering allocators.
Total investment is 90400 Ls (130,000 EUR) and 43.4 EUR/m2. It is financed by commercial bank loan. If the heat tariff is at present level (2005/2006) 29.20 Ls/MWh (41.70 EUR/MWh), simple pay-back time is 35.9 years.

Before renovation energy audit was performed. Data from energy audit and data gathered after energy efficiency measures are installed see in Table 6.2.

Table 6.2.Data from Dzintara street 2, Kuldiga
  Before renovation (data from energy audit) After renovation
Average energy consumption for heatingg demand recalculated to standard year*, MWh/year 375.43 289.25**
Specific heat consumption, kWh/m2year 133 102
Average room temperature, oC 18 19

* - number of heating days: 203; outdoor temperature in heating season: 0 oC, average room temperature: +18 oC.
** - provisional data because data were gathered during the last month of heating season 2005/2006


As the data in Table 6.2. show, heat energy consumption has decreased by 86.18 MWh/year or 30.5 kWh/m2year.

Fig.6.3. illustrates heating energy consumption before and after energy efficiency measures were implemented.
Heating energy consumption recalculated for standard year
Fig.6.3. Heating energy consumption recalculated for standard year.

heating energy consumption depending on outdoor temperature
Fig.6.4. Building heating energy consumption depending on outdoor temperature (recalculated to 30 day month)

Heat metering allocators are installed on every radiator and it is possible to compare energy consumption in different floors.

Fig.6.5. illustrates heat energy consumption in different floors
heat energy consumption in different floors



Energy Efficiency project in apartment dwelling in Zemgales street 32, Olaine
In 2005 in Zemgales street 32, Olaine the following energy efficiency measures were performed:
  • Insulation of walls;
  • Balancing of heating system;

Latvia Total investment is 51373Ls (74,000 EUR) and 37.1 EUR/m2. It is financed by commercial bank loan. If the heat tariff is at present level (2005/2006) 23.98 Ls/MWh (43.30 EUR/MWh), simple pay-back time is 23.8 years.

Before renovation energy audit was performed. Data from energy audit and data gathered after energy efficiency measures are installed see in Table 6.3.



Table 6.3.Data from Zemgales street 32, Olaine
  Before renovation (data from energy audit) After renovation
Average energy consumption for heatingg demand recalculated to standard year*, MWh/year 268.82 174.72**
Specific heat consumption, kWh/m2year 147 95
Average room temperature, oC 17 21

* - number of heating days: 203; outdoor temperature in heating season: 0 oC, average room temperature: +18 oC.
** - provisional data because data were gathered during the last month of heating season 2005/2006


As the data in Table 6.3. show, heat energy consumption has decreased by 94.1 MWh/year or 52 kWh/m2year.

Fig.6.6. illustrates heating energy consumption before and after energy efficiency measures were implemented.
heating energy consumption before and after energy efficiency 
  measures
Fig.6.6. Heating energy consumption recalculated for standard year.

Building heating energy consumption depending on outdoor temperature
Fig.6.7. Building heating energy consumption depending on outdoor temperature (recalculated to 30 day month)

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Czech Republic

Rehabilitation of typical panel house - Project Brno Novy Liskovec

The typical concrete panel building of 1970s of the type T06 B-KDU with eight floors and 32 apartments in Brno-Novy Liskovec was refurbished in the year 2001.

As compared to usual approach when mostly only replacement of windows and thermal insulation of outside walls are done, in case of this project refurbishment included:

  • Thermal insulation of the building envelope;
  • Replacement of windows and entrance doors;
  • Implementation of controlled air ventilation system with waste heat recovery; the unit for waste heat recovery is located on the roof of the house; and
  • Rehabilitation of the interior (new social amenities, water and heat distribution systems).


Refurbished and non refurbished panel building from 70s´Picture 1 – Refurbished and non refurbished panel building from 70s´

Project ownership
The project was financed by the municipality of Brno – Novy Liskovec with the grant provided by the State Housing Fund. The owner of the building is the municipality of Brno – Novy Liskovec.


Objectives
The major objectives were as follows:
  • to extend the lifetime of the house
  • to improve thermal performance of the building
  • to increase the living conform in apartments
  • to demonstrate the technology approach.


Technology implemented
Well insulated building envelop (15 cm of thermal insulation), new wooden windows and entrance doors. To reduce thermal bridges, new system of balcony construction was implemented with disconnection of thermal bridge from the facade. Building is still heated by district heating system but for support of energy savings there was implemented controlled air ventilation system with waste heat recovery. The unit for waste heat recovery is located on the roof of the house.

Financing
Total investments for retrofitting were € 453 000 (e.g. € 16,000 per one apartment) and the project was financed by the municipality of Brno – Novy Liskovec with the grant provided by the State Housing Fund (grant for rehabilitations of panel building). No co-financing from tenants was required.

Saving achived
Energy savings are 51% which means savings of 90 kWh/m2 from original about 200 kWh/m2.). This savings of energy consumption is about 5 000 € per year for space heating.

  Unit Before 1 year after 2 years after
Energy consumption for heating and DHW GJ 1.725 835 844
Energy consumption kWh/m2 200 97 98
Cost savings %   35,4 36,2

Replication potential
The project is rather specific and it is replication should be well assessed. Investment costs are about double as compared to standard project with replacement of windows and insulation of building shell.

Social house in the city of Rumburk
The city of Rumburk is on the altitude of 387 m above the sea level located on the Northern border of the Czech Republic. Due to cold winds blowing from the north, there is a colder climate than it would be expected for such altitude. The number of degree-days of 3700 is slightly higher than an average of the Czech Republic (3500). The average heating period is 244 days.

The social house consists of 2 houses with 4 floors and 66 flats and flat roof. The house was built in 1978 using common technology of concrete panels for outside and load bearing structure while partitions were built using porous concrete panels. The owner of the house is the municipality of the Rumburk city.

In the year 1997 the Czech Energy Agency provided grant to demonstrate possible improvement of energy characteristics of the house. In addition, the flat roof was replaced by double-sloping roof and new flats were built in.

Technology implemented
The pilot project included the following items:

  • Outside walls - Thermal insulation of frontal and gable walls were insulated using 70 mm thick polystyrene boards,
  • Doors and windows - Old windows were replaced by new plastic ones with U = 2,1 W.m-2.K-1 with silicon sealing EUROSTRIP, doors have brush insulation.
  • Roof - Old flat roof was replaced by double-sloping roof and new flats were built in. The thermal insulation is done using 150 mm thick polystyrene boards.
  • Inner space – floor above not heated underground space was insulated using 50 mm thick polystyrene boards.


Financing
Basic data on rehabilitation of social house in Rumburk are presented in the following table. Total investment costs were CZK 9 million (Euro 300,000), e.g. CZK 135,000 per one flat, of which about 1/3 was covered by grant and the rest came from the municipality budget.

Saving achived
An implementation of energy saving measures resulted in reduction of specific energy consumption per unit of floor area by about 45%. Nevertheless specific consumption for space heating is still 95 kWh/m2.

Table 1: Data on rehabilitation of social house in Rumburk
  Data before rehabilitation Data after rehabilitation Difference
Heated living area (m2) 2.979,8    
Heated total area (m2) 3.611,9 5.417,9 1.806,0
Number of flaks 66 84 18
Energy consumption for space heating (GJ/year) 2.258,6 1.859,6 1.085
Specific consumption for space heating (kWh/ m2) 174 95 79
Specific consumption for space heating 100% 55% 45%


Refurbished and non refurbished panel building from 70s´Picture 2 – Refurbished panel building from 70s´












Replication potential
Combination of house rehabilitation with building new roof flats gives very good economic results and can be recommended.

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Poland

The following description is related to the refurbishment project of an typical multifamily social house performed 2003. The comprehensive refurbishment program was implemented during one construction season. The loan taken by the home owner association was fully paid in December 2005. The project is monitored till now.

Project 1 Name: Bukietowa, Warsaw
Owner of the building Home Owner Association (60% private dwelling owners, 40% commune owned dwellings)
Year of construction 1963
Number of dwellings 2397 m2
Number of inhabitants 48
Energy performance before refurbishment 94
Energy performance before refurbishment 231 kWh/m2
Scope of measures 110 kWh/m2
Refurbishment cost total Replacement of central heating installation, insulation of walls, insulation of roof, insulation of windows above the staircases
Refurbishment cost per apartment 100 000 euro
Refurbishment cost per m2 2083 euro
Private funds (provided by dwelling owners) 42 euro
Commercial loan 28%: 28 000 euro
Bonus from the state 72%: 72 000 euro + interest
(25% of the capital of the loan) 18%: 18 000 euro
SPBT 9,88 years
Reduction of energy consumption calculated in energy audit 41,69 %


This was one of over 4000 projects in social houses performed under the existing financing scheme described in chapter 5.

The success of this project was driven by following factors:
  • the board of HOA consist of persons, who actively took care on the building, they decided 2002 to resign on the communal housing administration and chose the professional, licensed housing manager
  • since the own sources of HOA amounted to “0”, the board proposed to the assembly increase of the monthly renovation charge from 0,4 euro/m2/month to 1 euro/m2/month;the assembly has accepted the increase by majority of votes
  • during 2002 and 2003 the amount of appr. 40 000 was collected and was spent for the energy audit, technical documentation and was presented to the commercial bank as required minimum own sources
  • the bank agreed to give the loan, which was secured by proxy to the bank account (no mortgage)
  • the energy audit was prepared correctly and has been positively verified by the BGK bank
  • there was enough sources in the thermorenovation fund for the bonus


The first official monitoring of performed projects has been done by the Ministry of Construction May 2005. The results of comparison between planned and achieved results of refurbishment (in 13 selected multifamily buildings) showed that the average energy savings reached 35% and the correctness of calculations in energy audit is +/- 5%.

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