Sustainable Business with phiyond: Key Milestones
News publ. 09. Oct 2024
News publ. 31. May 2023
A socially acceptable heating transition by 2045 requires considerable investment. Which brings up the question: Who is going to pay for it? The INVEST project, funded by the Federal Ministry for Economic Affairs and Climate Action (BMWK), is exploring precisely this issue. The aim of the project is to develop financing models for the heat transition, especially for low-income households.
The project team, consisting of experts from adelphi research, RWTH Aachen University and the University of Stuttgart, is currently conducting case studies in the cities of Stuttgart, Berlin and Aachen. The aim is to work out financing models for socially responsible renovations in round tables together with residents, financing institutions, energy and construction service providers. It is important that the financed renovations do not burden low-income households with rent increases, but at the same time the financing model remains as attractive as possible for owners and investors.
At the Berliner Energietage, the team presented the current project status and then discussed it with the participants. The initial focus was on the financing gap identified for the renovation of existing buildings. Proposals to mobilise private capital included, among other things, sales opportunities for building materials, higher CO2 prices and an expansion of subsidies.
Another question that moved the participants: what is the silver bullet for energy-related renovations, contracting or funding – or a mixture of both? And how could such a mixture be designed? Here the participants pointed out that the profitability of the projects should be considered individually and risk profiles could help to identify the need for funding. In addition, municipal heat planning should also be taken into account in contracting projects. Participants also discussed whether tenants could participate financially in the heat transition, for example through shares in so-called local climate accounts. The participants were largely in agreement that a combination of thermal renovation, photovoltaics and greening can make sense both energetically and financially.
Just a few days earlier, adelphi research held a round table in the Rollberg Settlement in Neukölln as part of the project. Representatives of the local housing association STADT UND LAND, a local tenants’ initiative, the municipal district office, federal administration and the borough management came together to discuss the contextual conditions of the Rollberg Settlement and the building situation with the adelphi research team. As in all of the first round tables of the project, the conversation was not about proposing concrete solution, but rather about the project team understanding the district and the building and living situation better and bringing the project closer to the stakeholders.
The different perspectives of the various stakeholders at the round table were very informative for the further course of the project. The housing association STADT UND LAND has brought their project of densification and district development closer to everyone involved. Tenants, on the other hand, were keen to make it clear that basic needs must be met in the neighborhood and expressed concerns about rent increases and evictions. Both sides had in common that energy issues were less important to them. Rather, they were concerned with improving the quality of life in the district – for example, by repairing elevators, creating accessibility or carrying out maintenance work.
A rather unexpected discussion arose around serial renovations. On the one hand, all ring buildings in the Rollberg Settlement are built the same, which makes serial renovations easier. On the other hand, the buildings themselves are individual and the corresponding components are not available cheaply in serial production. The discussion revealed that serial renovations do not necessarily result in cost savings. Another critical point was that deep renovations can render affected dwellings uninhabitable during the construction period. This requires the housing association to provide comparable transitional housing for the tenants and a withdrawal guarantee, which can increase costs and extend the time frame of the project.
This round table revealed what has also been shown in the other discussion rounds carried out so far as part of the project: the heat transition can only succeed in dialogue. This is the only way that new, better solutions can emerge from different perspectives that would otherwise remain closed.
Contact: Jan Fjornes, Consultant in the energy team at adelphi research