Prof. Dr. Ing. Costantinos S. Psomopoulos, MIET
Energy Efficient Buildings and Small Scale RES towards Sustainable
Communities - Smart Green Funding for Successful Projects
Green communities are based on energy efficient buildings and RES.
Energy Efficient Buildings are requiring very small amounts of energy
to operate and provide comfort to people.
RES are producing the required energy for the operation of energy
efficient buildings with minimum environmental impact.
Many technologies have been developed in order to minimize the
energy consumption of buildings and to improve / maximize the
energy production from RES to cover the operational and comfort
needs of the users.
But all required money for implementation
Energy Efficient Buildings and Small Scale RES towards Sustainable
Communities - Smart Green Funding for Successful Projects
Location in South Europe in the sun’s belt,
where the solar irradiation is very high.
Malta :
High potential for PV systems and solar cooling.
Average temperature is 18o to 19o C.
3,000 hours of sunshine.
All the above verify the high potential for RES, high
cooling and low heating requirements in the buildings
sector.
But all these = money for implementation
Energy Efficient Buildings and Small Scale RES towards Sustainable
Communities - Smart Green Funding for Successful Projects
Buildings sector status :
Malta has carried out cost‐optimal studies for residential and non‐residential buildings.
The studies have identified reference typologies for new buildings and existing ones, taking into consideration a wide
spectrum of building typologies and construction systems. Thus, mirroring practically all parts of the current building
stock.
Energy efficiency measures applied to the reference buildings, included measures related to heating, cooling, Domestic
Hot Water (DHW) and lighting, together with contribution from Renewable Energy Sources (RES).
An elemental analysis was carried out to determine the cost‐optimal level of building elements (e.g., parts of the building
fabric), or systems in major renovations or replacement.
Results revealed that the current minimum requirements were cost‐optimal for some elements (e.g., roofs), while lower
than cost‐optimal level for other elements (e.g., glazing).
Where it is possible to install solar RES, these are cost‐optimal in all situations affecting overall energy demand
considerably.
But all possible actions require money (big amounts) to renovate and achieve targets
Energy Efficient Buildings and Small Scale RES towards Sustainable
Communities - Smart Green Funding for Successful Projects
Funding always come from those that have the money:
Private Funds,
Energy Contracting Services (using Banks),
Banks,
State / Government, National Funding
EIB (European Investment Bank)
European Structural and Investment Funds (ESIF): EUR 454bn
 European Regional Development Fund (ERDF)
 Cohesion Fund (CF)
 European Social Fund (ESF)
 European Agricultural Fund for Rural Development (EAFRD)
 European Maritime and Fisheries Fund (EMFF)
Cohesion policy (ERDF, CF, ESF):
EUR 352bn over 2014-2020 concentrated in less developed regions
Energy Efficient Buildings and Small Scale RES towards Sustainable
Communities - Smart Green Funding for Successful Projects
But how all this can be expanded and increased?
Stimulate actions and Reduce risks!!!!!!
Banks lend money to businesses and home owners. Then the banks
aggregate the loans and sell them to pension funds and other
investors. This gives the banks capital for new projects, and the
investors steady long-term revenues.
Energy Efficient Buildings and Small Scale RES towards Sustainable
Communities - Smart Green Funding for Successful Projects
What is the impact of ambitious, binding energy efficiency, legislation?
 It drives forward energy saving
 Binding legislation reduces risk and gives a long term vision and
perspective.
 Binding legislation means more business for investors: The key point is
that risk carries a cost, and binding energy efficiency legislation reduces
that cost.
Energy Efficient Buildings and Small Scale RES towards Sustainable
Communities - Smart Green Funding for Successful Projects
You have around 1,300,000€, what you can do?
1st choise one big renovation e.g. (from build-up site)
 Zaramaga - social housing renovation challenge in
sustainability with 30 apartments (global renovation cost
(VAT and taxes excluded): 1,258,060 €
 Renovated envelope (U-value average: 0.25 W/m2.K)
 Heating system and Hot water system with condensing gas
boiler
 Ventilation system with heat recovery, allowing natural
ventilation in summer
 Solar photovoltaic system
 Building management system
 Total primary energy consumption: 25.2 kWh PE/m2.year
(before renovation it was 328.4 kWh/m2.year)
 Energy saving in heating and DHW: around 70%
Energy Efficient Buildings and Small Scale RES towards Sustainable
Communities - Smart Green Funding for Successful Projects
You have around 1,300,000€ what you can do?
2st choice many small actions flats (Greek case study) Projects up to 15k€-25k€ in total.
 Full funding of Energy Audits and Works supervision up to 1000€/apartment
 Full funding of interest for the bank loan for a period up to 3 years
 Partly funding of the renovation works and equipment based on family’s income between 25% - 75% for the poorest
ones (average 30%).
 You can renovate over 80 apartments or houses.
 Case study: one apartment of 169m2 in Athens build in 1978 with 17k€ (in 2013) present energy savings in
consumption of over 45% from 428kWh PE/m2.year to 230 kWh PE/m2.year with new window frames with low U
value (total 30.8m2 with a U value of 1.9 W/m2.K) roof insulation of 220m2 and solar water heater.
The owner paid the 75% of 15k€ plus 2k€ for the exceeding 15k€ (which was the maximum funding amount) in 36
months. All the costs, except the 2000€, were paid directly by the bank facilitating the procedure. So, the owner have
paid 2000€ at the end of the process + 312,5€/month for 36 months
Energy Efficient Buildings and Small Scale RES towards Sustainable
Communities - Smart Green Funding for Successful Projects
Through these two examples, it is obvious that the way to Greener Communities through Energy Efficient Buildings is not
unique.
Big projects requires : big funding, higher risks, very good results, but few buildings.
Impacts can be demonstrated and these buildings can become reference ones or demonstration ones.
Ideal for innovative technologies that are trying to find way in the market.
Small and smart designed projects can have significant impact :
1. Significant number of buildings / apartments / houses or even parts of buildings can be renovated and become
energy efficient.
2. Large number of beneficiaries with small budgets.
3. You can reduce the energy poverty inside society.
4. You increase indirectly the income of families and small business – thus, you help your economy
5. You can reach the ambitious targets easily as you act in a large number of buildings with rather moderate savings
instead of a large project. Yet, in this way the total savings are much greater.
6. You can increase and enhance labor market as the constructions concern many buildings instead of a few large
buildings.
Energy Efficient Buildings and Small Scale RES towards Sustainable
Communities - Smart Green Funding for Successful Projects
What about RES and especially Solar energy (as Malta presents
high potential)?
In order to reach up the renewables targets you have two ways:
1. Big projects require: large funding, huge landscapes to be
installed, large network requirements in case of Solar or onshore wind energy. Off-shore wind farms require funding, large
sea areas and electricity networks too.
2. Large number of small RES systems that can be installed in
existing buildings, reducing to zero the land requirements, and
minimize the electricity network upgrading demand to reach
the new capacity. Furthermore, each installation requires
minimum investing capital.
Energy Efficient Buildings and Small Scale RES towards Sustainable
Communities - Smart Green Funding for Successful Projects
Which are the most attractive ways of funding the implementation of RES?
To reach up the renewables targets there are two basic ways using long duration contracts e.g 20-25 years:
1. Big projects that require big funding, so the implementation requires sophisticated approach that includes bank
loans, guaranties in prices, fixed or semi fixed tariffs considering the best methods applied already in EU and
avoidance of the problematic ones.
2. Small RES systems (<10kWp) that can be installed in existing buildings are quite easier. The cost of PV
installation has extremely dropped in recent years, it is lower than 1.5k€/kWp (turn key solution in many
cases).
 Bank loans with low interest, as these ones have very small risk, with fixed tariffs or linked ones with the
systems price, are quite attractive in case of long (20 years) contracts.
 Direct investments by building owners, in case that the tariffs can be more attractive than the savings
themselves.
 Net – metering, when the option will be to reduce your energy bills that you are paying in power suppliers.
 Combined with storage and creating networks of electricity autonomous facilities that use the network
connection as backup.
Energy Efficient Buildings and Small Scale RES towards Sustainable
Communities - Smart Green Funding for Successful Projects
We need to address the need for energy efficient and RES in order to give a better world to our children.
What it can be easily concluded towards Sustainable Communities:
1st Funding is required and needs to be smart and big
2nd Think big for achieving the goals but do not promote only big projects
3rd Act small with multiple low funding requirement projects, involving many potential beneficiaries
4th Many small project can provide multiple benefits for the society and the economy and the environment
compared to few big ones.
Prof. Costantinos S. Psomopoulos, PhD, MIET
[email protected], [email protected]