Innovate final publishable report about the why, how and what of this European experimentation
2020
The final publishable of the H2020 INNOVATE project give an insight into the activities performed during the project lifetime, provides recommendations for one-stop shop newcomers as well es recommendations for all governance levels - local/ regional, national and European.
Innovate final publishable report about the why, how and what of this European experimentation
The final publishable of the H2020 INNOVATE project give an insight into the activities performed during the project lifetime, provides recommendations for one-stop shop newcomers as well es recommendations for all governance levels - local/ regional, national and European.
Innovate final publishable report about the why, how and what of this European experimentation
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ON-BILL SCHEMES TO DELIVER THE RENOVATION WAVE AND ECONOMIC RECOVERY
Accessible, easy and sufficient funding is key to speed up renovations in the EU. The EU Renovation Wave strategy, published in 2020, estimates the additional investment to double current renovation rates at around €90 billion per year. Public capital can cover some of the additional financing, but private capital must also be mobilised. This is where innovative financing schemes become essential. On-bill mechanisms can be a valuable tool in that respect: they are tools for involving the private sector in energy efficiency financing that can help resolve some of the existing barriers to energy efficiency investments linked to the regulatory environment, end users’ ability to finance renovations and utility companies’ involvement in renovation projects.
Supporting energy efficiency measures in the residential sector. The case of on-bill schemes
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Related Webinars
Handbook: Deep renovation of multifamily residential buildings using Energy Performance Contracting
This handbook presents in a clear and simple manner both the theory and application for the renovation of multifamily buildings based on Energy Performance Contracting. The handbook addresses building built in series since the 50s, corresponding to more than 50m m2 in Latvia alone. It ofers solid grounding on building renovation and advice on improving building energy performance.
ON-BILL SCHEMES TO DELIVER THE RENOVATION WAVE AND ECONOMIC RECOVERY
Accessible, easy and sufficient funding is key to speed up renovations in the EU. The EU Renovation Wave strategy, published in 2020, estimates the additional investment to double current renovation rates at around €90 billion per year. Public capital can cover some of the additional financing, but private capital must also be mobilised. This is where innovative financing schemes become essential. On-bill mechanisms can be a valuable tool in that respect: they are tools for involving the private sector in energy efficiency financing that can help resolve some of the existing barriers to energy efficiency investments linked to the regulatory environment, end users’ ability to finance renovations and utility companies’ involvement in renovation projects.
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The paper proposes an in-depth description of on-bill mechanisms, their possible frameworks, the barriers to their implementation as well as the impact they may have on the core business of utilities. The study is based on a review of the existing literature integrated with the results of on-field interviews and discussions with the aim to obtain a full picture of on-bill schemes in a European replication perspective. Methodologically, the paper is based on structured desk research and on-field feedback obtained from selected stakeholders. Additionally, a SWOT analysis is developed highlighting that on-bill schemes may result very convenient for power utilities and energy retailers. Furthermore, on-bill schemes can help to address the issue of the split incentives. In conclusion, on-bill schemes can be considered a valid tool to support energy renovation in the residential sector, but they do not represent a global solution since their application is not tailored for all the contexts.
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