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Benchmarking of promising experiences of integrated renovation services in Europe

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Prepared in the framework of the Horizon2020-funded project Turnkey Retrofit, this new report presents a wealth of experiences from one stop shops in Europe.

The report aims to identify, analyse and extract lessons learnt and guidelines from several promising home renovation services in Europe with a focus on:

  • target group audience;
  • offered service;
  • relations between involved stakeholders;
  • data required for operating the service;
  • financial model;
  • number of supported renovation projects
  • and triggered investment.

 

There is a clear need for innovative business models that can entice and enable building owners to invest in energy renovations. Buildings are responsible for approximately 40% of energy consumption and 36% of CO2 emissions in the EU, making them the single largest energy consumer in Europe. At present, about 35% of the EU’s buildings are over 50 years old. At the same time, only 0.4-1.2% of the building stock is energy renovated each year.

Renovation of existing buildings can lead to significant energy savings and play a key role in the EU’s clean energy transition. At the same time, the construction sector is crucial to Europe’s economic growth and employment. In 2011, it was responsible for 7% of the EU’s gross domestic product and over 11 million people were directly employed in the building sector, which makes it the single largest contributor to employment in Europe.

 

The renovation value chain differs from other sectors’ value chains, as it involves multiple actors (advisors, installers, bank representatives, etc.) within a single process. The fragmented value chain makes it difficult for the building owner to predict the renovation works, as well as estimate how much it will eventually cost. For example, when retrofitting existing buildings, small-scale contractors or installers often act as “gatekeepers” between suppliers of products and building owners. A high-level overview (see Figure 1) of the traditional construction sector from a life-cycle perspective shows which conventional actors are involved at the different stages such as product manufacturing, design, construction, operation, etc.

Policymakers, researchers and companies have concluded that by simplifying the renovation process for building owners, it is possible to increase demand for energy renovations. Integrated renovation services, which are the main service offered by one stop shops, can be seen as a direct response to the problems that come with a fragmented value chain, where the new business models align the multiple services and actors.

 

A short article pitched for the EU Energy Innovation Magazine and available as pdf below summarises the report.