THE BUILDING OWNER’S DECISION-MAKING PROCESS

Upscaling investments in energy efficiency renovation

Strategy definition and investment planning represent the first step of a building owner’s decision-making process for large-scale multi-building renovation.

At this stage, Bax & Company informs the BO’s investment decisions with a data-driven backcasting approach. The focus is shifted from a single building to scaled processes and taking EE targets as the starting point to develop effective renovation strategies.
By delivering portfolio-level investment strategies in 8 different countries within the replication programme, the investment planning service has demonstrated the value of multi-building renovation and the replicability of the DREEAM approach across Europe.

BAX & COMPANY’S INVESTMENT PLANNING SERVICE

BUILDING STOCK ASSESSMENT

The current status of the BO’s building portfolio is assessed based on a crosscutting dataset of technical, operational and financial data points at dwelling-level. Properties are categorised by archetype and construction period as well as for their energy performance. The portfolio analysis is visualised for easier interpretation through map and graphs that allow identifying and prioritising opportunities.

RENOVATION OPTIONS

For each target group consisting of buildings from the same archetype, construction period and energy performance, standard renovation packages are designed to link investments with potential energy savings. Renovation packages are built as a combination of measures leading to a certain improvement in energy performance, reflected in better EPC and energy/CO2 savings.

INVESTMENT PATHWAYS

Applying a “backcasting” approach, energy efficiency targets are considered the starting point for the development of investment strategies which realistically link the building owners’ financial capacity with the renovation measures to be implemented. Through this step target scale renovation opportunities are identified and economic/environmental impacts of different strategies assessed.

FINANCING

Scaled renovation programmes, where sustainability and long-term ambitions are integrated into housing provider strategies can unlock lower-cost financing. BaxCo finally assesses different financing opportunities and link BO’s portfolio renovation strategies with relevant low-cost financing programmes.

THE VALUE OF INVESTMENT PLANNING

The investment planning services supports board-level decision-making about EE portfolio investments, thus demonstrating the value of multi-building renovation.

TAILORED STRATEGIES FOR BUILDING OWNERS

The investment planning service aligns with your organisation's priorities and existing development plan to promote long-term, positive investment.

IMPROVED ACCESS TO LOW-COST FINANCING

Long-term planning unlocks better financing terms and access to national and European programmes versus the current short-term financing based on available cash-flow.

ECONOMY OF SCALE

By demonstrating the value of a multi-building renovation, the service unlocks economy of scale: reduced costs of technology per unit, lower operational and capital costs.

UPSCALING RENOVATION AMBITIONS

The analysis is particularly valuable for building owners with a novel sustainability push and/or under financial constraints who need to upscale their investments in EE renovations. Sustainability targets are addressed at the board level for strategic decisions.

ENHANCED VALUE AND PERFORMANCE

Overall system performance is improved by considering different technologies and aspects (economic/environmental) and programme implementation by following a long-term strategy.

WORKING WITH BUILDING OWNERS ACROSS EUROPE

Working alongside DREEAM building owners, engaging with 30 housing associations and piloting the DREEAM replication service with 10 of them – this all led to a service that responds to current building owners’ needs and address the challenges hindering the upscaling of EE renovation.

IMPACT

700000

In the replication programme, we have worked with housing providers who collectively own over 700 000 dwellings spread across 8 European countries.

Out of these, 300 000 dwellings were analysed and investment scenarios were simulated for 150 000.

Going beyond business as usual, the investment pathways proposed could increase housing providers’ CO2 savings by an average of 40%.

Thanks to the service, a Dutch municipality has developed an energy efficiency renovation programme of €77.6 million to increase the energy quality by at least 2 label steps.