Risk Reduction For Building Energy Efficiency Investment

NEWSLETTER

March 2020 - First Issue

Investing in EEB: how to deal with risk? With the aim of de-risking investments in the field of energy INSIDE efficiency in buildings, EEnvest will develop a comprehensive Investing in energy technical-financial due-diligence efficiency in buildings - 1 mechanism to provide investors with reliable information on financing Interview with EURAC - 2 opportunities in the building renovation sector, therefore Demo case buildings - 4 promoting the injection of equity capital of existing buildings. Activities - 5 EEnvest will build bridges between technical and financial communities Consortium - 5 through the creation of a web-based search and match platform connecting building owners, designers and potential transaction financers, as well as private investors. The quality and security of the data shared through the platform will be guaranteed by a blockchain-based data exchange validation system.

www.eenvest.eu /eenvest @eenvest_eu 2 Second page

Interview with What is EURAC’s role in the project?

As project coordinator, EURAC is Annalisa responsible for the scientific and financial management of the project. This means bringing nine European partners into line Andaloro, with each other to develop a solid technical-financial evaluation framework for investments in the area of EURAC energy-efficient renovation of buildings. Besides being the leading organization in the project, we also perform other key Research tasks, like verifying data quality, clustering datasets to allow consultation, defining technical risk typologies and linking them EURAC Research is the Coordinator of with the related mitigation measures, EENVEST Consortium. EURAC is an applied making recommendations for risk research center located in , South limitation and mitigation in the form of (). Founded in 1992 as a private guidelines. Finally, we set up and association, it currently has eleven institutes coordinate the work of the local groups in organized into four main areas of research: the demo-case buildings. Autonomies, Mountains, Health and Technologies. The Institute for Renewable We at EURAC have a long-lasting Energy conducts applied research on experience in developing innovative advanced energy systems, based on or technologies for the energy renovation of including sustainable energy sources. buildings and we can count on the fruitful collaboration with actors along the whole The institute also offers support to public value chain. Up to now, we have entities, private developers and designers in concentrated most of our efforts on the the elaboration of complex energy models technical side of energy efficiency, yet we to be used as decision support tools, believe in the importance of a structured operating at building, urban and regional cooperation with the financial sector. level. Within EEnvest, we commit to ensure smooth information flows from the technical to the financial side of the renovation actions to enhance the bankability of building renovation projects. What’s more, we can leverage on the experience and the tools developed during past projects, for example the investment evaluation framework for the photovoltaic sector designed within the Annalisa ANDALORO Solar Bankability project. Senior Researcher / Energy Efficient Buildings Group We will work hard to bring Intitute for Renewable cross-disciplinary cooperation to its Energy maximum and involve stakeholders from outside the project consortium in order to maximize EEnvest impacts in the long term. www.eurac.edu Third page 3

What is at stake in the energy efficient What is the potential of the EEnvest renovation of buildings? Project?

Resilience to climate change has We believe that EEnvest will bring disruptive become a prominent concern for change in the process of investment everyone, and energy renovation of evaluation related to energy efficiency. Our buildings has a major role to play. As ambition is to foster the inclusion of technical people spend most of their time inside parameters into economic evaluations, thus buildings, providing means to ensure providing investors with easy-to-understand comfortable and healthy indoor and trustworthy indicators that allow for an conditions is crucial to us and everyone informed decision-making process. working in the field. However, energy efficiency cannot be addressed by simply EEnvest will provide the means to extract adopting a technical approach to commercial value from energy efficiency problem solving. The economic and promote the allocation of private sustainability of the project must be capital in this market. Making the existing ensured, and EU targets for building stock more efficient is a duty for the decarbonization urge to inject private years to come and an important step equity capital into this market. towards achieving energy neutrality in Energy-efficient renovation of buildings Europe. EEnvest wants to support this process opens up a whole new range of by overcoming the limitation of public possibilities, not only for the technical funding availability and mainstreaming industry and the design community, but private financing in energy efficiency. also for credit institutions and the whole financial sector. In a changing context as the one we are living in now; this cannot be neglected.

NOI TECH Park, EURAC Research Offices 4 Fourth page

Demo case buildings

EEnvest’s technical financial due-diligence method will be tested on two demo-case buildings located in Italy and Spain, the two market areas analyzed by the project. Some preliminary information on the two cases is presented in this newsletter.

Aerial view of the Italian demo site location within the city of , source Prelios, Integra

The Italian demo case The Spanish demo case

The Italian demo case is a commercial office The Spanish demo case is a residential building located in the city of Rome and building located in the city of Olot, owned by the International Fund for Catalonia. The main objective of the project Agricultural Development (IFAD). The is to renovate the whole building with high building was audited by an external energy efficiency measures in order to third-party energy auditor in 2017 and a set achieve an A-rating in the Energy of renovation actions is already planned for Performance Certificate. Besides this main the next months, with the ambitious aim of objective, other measures will be cutting current energy consumption up to implemented to reduce the use of other 37%. This goal is achieved combining a set of resources, like water, and to improve measures related to energy use in building comfort for families. The owner of the asset systems. The asset is currently managed by will rent the apartments to local citizens after Prelios Integra, member of EEnvest’s Advisory the renovation is completed. Board.

Spanish demo case building Italian demo case building picture, source Prelios, Integra picture Fifth page 5

Activities: EEnvest 1st project meeting in Glasgow

The first project meeting of the EEnvest project identification of the possible target users of the was hosted by IES in Glasgow on 10-11 platform. December 2019. During the meeting, partners presented the activities carried out in the first six Since the EEnvest platform is the most months of the project. The General Assembly marketable result of the project, all partners has also seen fruitful participation of EASME, in agreed to involve potential users as beta testers the person of Stavros Stamatoukos, EEnvest from the very early stage. Project Adviser. The consortium is already working on the vision Analyses and assessments of technical risks for the exploitation of project results, engaging related to energy efficiency actions for in a fruitful business model and exploitation buildings were presented, taking into account workshop led by R2M during the project the two EEnvest demo cases: a residential meeting. R2M is leading partner for building in Spain and a commercial building in communication, dissemination and exploitation Italy. In addition, the draft structure of the activities. The next project meeting is scheduled EEnvest platform was discussed among for July 2020 and will be hosted by Politecnico partners, who are now working on the di Milano, Italy.

CONSORTIUM

EURAC Research GNE Finance SINLOC Energinvest IES (Italy) (Spain) (Italy) (Belgium) (United Kingdom)

R2M Solution Politecnico di MIlano UIPI Ecrowd! (France) (Italy) (Belgium) (Spain)

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This project has received funding from European Union’s Horizon 2020 research and innovation programme under grant agreement n° 833112