Picardie Pass Renovation,the technical and financial instrument designed by the regional Public Service for Energy Efficiency
Private period property in the Region of Picardie (France) accounts for 15% of its greenhouse gas emissions. To rise to the challenge of energy renewal across its property portfolio, the region of Picardie (France) has launched a pilot project with the Public Service for Energy Efficiency (PSEE) christened Picardie Pass Rénovation.
Founded on an innovative economic model, through a dedicated public fund, the PSEE advances the amount allocated to renovation works; beneficiaries repay this advance through financial savings generated on their energy bill.
Breaking with the public subsidy, the PSEE focusses on a virtuous, self-regulated economic model to help significantly reduce energy consumption in residential buildings and bring about local economic expansion.
AN INNOVATIVE AND VIRTUOUS FINANCIAL INSTRUMENT
The first public operator to set up a third-party-financing mechanism, the Picardie PSEE thus seeks to implement an everlasting virtuous circle to bring about the expansion of the regional territory: reduced energy consumption across its property portfolio, combating the energy poverty, revival of the local economy in the construction sector and support for innovation.
- Supporting business and jobs amongst regional construction professionals:
by increasing solvent demand for heat renewal works,
by playing the role of facilitator and the third party of choice, ensuring the quality of works undertaken for beneficiary households.
- Supporting sector professionals as they broaden their expertise and their ability to innovate to attain a sufficient degree of energy performance in renovated buildings.
- Turning energy savings, so financial savings, achieved through its heat renewal operations, into a resource enabling owner households to repay the advance granted, the key to this being a substantial reduction in final energy consumption of 40 to 75%.
A PROJECT FUNDED BY EUROPE
The Picardie Region is benefiting from the ELENA technical assistance mechanism (European Local ENergy Assistance) dedicated to local energy projects, initiated by the European Investment Bank and the European Commission. The ELENA funding is managed by the Executive Agency for Small and Medium-sized Enterprise (EASME), and will be fed by Horizon 2020, the European Research and Innovation Programme, as part of its action to combat climate change.
FOR OWNERS COMFORTABLE DIGITAL DASHBOARDS, ENERGY SAVINGS AND VALUE ADDED TO THEIR PROPERTY
Turnkey technical support coupled with an all-inclusive financing solution, Picardie Pass Rénovation is a drive clearly focussing on private owners and co-owners of period properties.
The mechanism encompasses all phases of the renovation project:
- UPSTREAM, VIA CUSTOM TECHNICAL SUPPORT: information, personal advice, dwelling heat diagnosis, defining of the appropriate works schedule,
- MEANWHILE, VIA PROJECT MANAGEMENT APPOINTED FOR THE WORKS AND AN ALL-INCLUSIVE FINANCIAL SOLUTION: consultation and selection of partner companies through tendering, site tracking, management and payment of bills from companies entrusted with the work,
- DOWNSTREAM, VIA PERSONAL TRACKING FOR 5 YEARS: support for equipment use/maintenance, tracking of energy consumption, teaching on how to be green
FOR THE CRAFTSMEN THE OPPORTUNITY FOR A NEW MARKET AND BROADENING OF SKILLS THROUGHOUT THE SECTOR
By acting on demand and guaranteeing payment for works, the Picardie PSEE will contribute towards the emergence of a sustainable local market for dwelling energy renewal, its ultimate ambition to create hundreds of jobs which do not lead to relocation in the construction sector. More specifically, the Picardie PSEE will be used to:
- INCREASE THE DYNAMISM AND ORGANISATION of professionals in heat renewal by stimulating company groups and launching invitations to tender,
- STRUCTURE AND BROADEN TRAINING OPPORTUNITIES (training platforms at professional training schools in the region, «in pairs» meetings, etc.),
- FORGE EVERLASTING PARTNERSHIPS with local professional networks to optimise local works opportunities and guarantee the energy performance sought.
To date, more than 650 local companies and craftsmen have joined the Picardie Pass Rénovation mechanism; almost 40% of them have already been selected.
FOR LOCAL AUTHORITIES A MECHANISM FOR RENOVATING PRIVATE PERIOD PROPERTIES ACROSS THE TERRITORY AND COMBATING THE PRECARIOUS NATURE OF ENERGY
The Picardie PSEE directly involves voluntary local authorities in implementing Picardie Pass Rénovation. PSEE partners and third parties trusted for how they are managed, they are becoming the relays on the ground for:
- NOTIFYING AND DETECTING potential beneficiaries,
- DEPLOYING SUPPORT close at hand at the heart of territories,
- MOBILISING local companies and craftsmen.
For the PSEE, energy renewal for period properties in rural settings is a significant imperative, especially in towns with fewer than 2,000 inhabitants. Accordingly, household energy bills are 23% above the national average. The authorities may also benefit from the mechanism for renewal of their municipal housings.
FOR PLAYERS IN INNOVATION POTENTIAL FOR EXPERIMENTING AND NEW OPENINGS
The Picardie PSEE is forging partnerships with innovative regional ecosystems, to help speed up the territory’s energy transition, including:
- CO-OPERATION with CoDEM Picardie, a transfer centre which specialises in the development of innovative products for construction and renovation, including a 3D laser scan solution for complex heritage renovation projects,
- PARTICIPATION in the TBH Alliance project which concerns the installation of domestic digital dashboards for the first few beneficiaries from Picardie Pass Rénovation, enabling them to display and track their electricity consumption.
Picardie Pass Rénovation is granting owners an advance on works, for an average of € 42,000. Once the works have been done, the owner will repay the public body an amount less than or equal to the post-renovation energy savings (on average 56% of savings, for a posted target of 54 to 75%-reduced final consumption). This advance on energy savings is granted at a rate of 2.5%, given over a period of 15 years, for equipment, and up to 25 years for building insulation works.
WHO IS FINANCING PICARDIE PASS RENOVATION?
- ELENA subsidy: € 1.8 M covering overheads
- Picardie Region allowance: € 8 M covering initial renovation projects
- Caisse des dépôts et consignations/ European Investment Bank loan: € 47 M
PARTNER OF TRIPLE-A PROJECT
TU Delft, Antwerpen, Mechelen, EOS Oostende, Universiteit Gent, Eandis, Rotterdam, Breda, PSEE Picardie, and Kent County Council work together in “Triple-A: stimulating the Adoption of low-carbon technologies by home-owners through increased Awareness and easy Access”.
Triple-A, coordinated by TU Delft, is funded by the European Interreg 2 Seas programme and cofinanced by the European Fund for Regional Development (ERFD) under grant agreement No 2S02-029, for the period January 2017 – December 2020.
Triple-A is currently in the initiation phase, it will fully start as of end May this year.
PICARDIE PASS RENOVATION AMONGST THE EUROPEAN BEST PRACTICES
- Energy Efficiency Financial Institutions Group, final report, February 2015
- Innovative Financing Schemes in Local and Regional Energy Efficiency Policies, FEDARENE, June 2015
- Increasing capacities in cites for innovative financing in energy efficiency, CITYNVEST project (Horizon 2020), December 2015
TO FIND MORE ON ENERGY EFFICIENCY IN BUILDINGS IN EUROPE
- European Sustainable Energy Week, organisée chaque année à Bruxelles
- EASME, l’agence exécutive pour les petites et moyennes entreprises, qui gère une partie du Programme Horizon 2020
- La Direction Générale de la Commission européenne en charge de l’énergie
- La Banque européenne d’investissement, responsable du mécanisme ELENA
- La fédération européenne des régions et des agences pour l’énergie et l’environnement
- L’initiative européenne de la Convention des maires pour le climat et l’énergie
- L’initiative de soutien européenne pour les actions locales et régionales d’énergie durable « Managenergy »