How does the renovation of buildings affect the daily life of the population?

Due to the climatic conditions in Europe, buildings are one of the largest consumers of heat in the European Union (EU). More than a third of the EU's total greenhouse gas emissions is generated to produce this heat. Achieving climate neutrality across Europe by 2050 requires not only the energy efficiency of new buildings, but also the renovation and refurbishment of the existing buildings. With rising energy prices and environmental demands, everyone is looking for ways to reduce inefficient spending - everyone wants to live in an energy-efficient and comfortable building that produces both low bills and a lower impact on the environment, while at the same time ensuring a good quality of life. How does the renovation of buildings affect the daily life of the population? The answer to this question could be obtained at the webinar “How does the renovation of buildings affect the daily life of the population?” organised by the Elektrum Energy Efficiency Centre on 23 February.

Three quarters of the buildings in Latvia are still not energy efficient

Inese Vaidere, the Member of the European Parliament, emphasised that energy prices were currently high and would undoubtedly be affected by the current situation in Europe, especially due to the ongoing military actions in Ukraine.

"Renovation offers a number of practical benefits. Many buildings are outdated, poorly ventilated and underheated, and have increased humidity. All of this is detrimental to the health and safety of the population. In turn, the maintenance of energy-efficient buildings is much cheaper, and renovation of the house also increases the value of the property. Renovation of buildings allows the reduction of heat consumption by more than half. It also reduces dependence on the aggressive neighbouring country’s natural resources - natural gas. Renovation of buildings is also an important part of the European Green Course. It is also important that the energy efficiency requirements for buildings in Europe do not become unbearable for the population of Latvia, especially those with lower income. Despite the benefits of renovation, ¾ of the buildings of Latvia are still not energy efficient; there is a lack of sufficient state support for the renovation of historic buildings," says Inese Vaidere.

Where to get funding?

Significant financial resources are needed to renovate the buildings. Gatis Silovs, a specialist from the Ministry of Economics, told the participants about the support that can be received:

Four priorities are available from European Union Structural Funds:

• climate and energy efficiency (EUR 698.5 million),
• economic transformation and productivity (EUR 520.8 million),
• reducing inequality (EUR 205.5 million),
• digital transformation (EUR 183.5 million).

The Climate and Energy Efficiency section contains a number of programmes designed to improve energy efficiency in different types of buildings and companies. In addition to the support of the Ministry of Economics, there is also the support of the Ministry of Environmental Protection and Regional Development (MEPRD), but MEPRD programmes are mostly intended for local governments.

European requirements stipulate that the renovation of a building must lead to at least 30% heat savings. Statistics show that all renovated buildings achieve such savings. However, it depends on the condition of the building before renovation. It is important to understand that European funding is given specifically to reduce heat consumption.

The programme "Improving the Energy Efficiency of the Businesses" provides funding of more than EUR 166.9 million from three different funds. Funding will be available through the development finance institution ALTUM in mid-2022. Support will be available in the form of loans. Loan amount up to 5 million euros with a loan term of up to 20 years. In the case of successful implementation of the project, a capital discount is provided for repayment of the principal amount of the loan up to 30%, but not more than 1.5 million euros. The target audience of the programme - businesses and industrial companies. It is planned to support approximately 790 businesses. Funding will be available for the purchase of equipment to increase energy efficiency, modernise existing industrial generation capacities, by installing more energy-efficient generation and ancillary process equipment using renewable energy sources (RES) technologies, replacement of internal and external engineering networks and engineering systems in the generation area with more energy-efficient ones, for the implementation of energy technologies.

Also, in the middle of 2022, the funding of EUR 229.6 million for apartment and private house owners with ALTUM will be available under the programme "Energy Efficiency in Residential Buildings - Apartment Buildings and Private Houses". These will also be loans or guarantees with a capital discount to repay the principal loan amount. They are intended for the replacement of heating units and radiators, windows, insulation of attics, basement coverings, facade renovation and insulation and other equivalent activities.

At the same time, grants of EUR 176.1 million will be available under the programme "Energy Efficiency in Public Buildings". The sponsor in this case will be the Central Finance and Contracting Agency of Latvia (CFLA). Funding will be available for measures to improve energy efficiency, measures of smart energy management and use of renewable energy sources in public buildings.

District heating companies, municipalities and households with the support of ALTUM will be able to apply for the funding of EUR 56.5 million in the programme "Heating and Cooling" in the form of a combined financial instrument for increasing energy efficiency in the district and individual heating and cooling, for the implementation of equipment using RES and non-emission technologies in district and individual heating.

In turn, electricity generation companies, municipalities, electricity communities and households with the help of ALTUM will be able to apply for EUR 23.49 million in the programme “Promotion of Energy from Renewable Energy Sources - Solar Energy, etc.” The funding is intended for the installation of solar electricity generation equipment, storage facilities and intelligent solutions related to their operation, as well as for building competence and capacity in the field of renewable energy sources and air pollution.

Several myths dispelled

How to renovate a building in Riga? Where to go for help? Jānis Ikaunieks from Riga Energy Agency answered these questions. Riga has set quite ambitious goals - to renovate at least 2,000 buildings by 2030.

Jānis Ikaunieks reveals that after the renovation of standard buildings in Latvia, the heat energy consumption decreases by an average of 55%. After renovation of the building, the expenses for heat energy and repairs will decrease; if all facades of the building have been renovated and insulated, a real estate tax rebate is applied in Riga. The structures of the building are no longer damaged, and the life of the building is extended, the level of comfort of the occupants of the building increases, it becomes more visually attractive, and the value of the property increases. No cold walls indoors, risk of mould reduced.

Jānis Ikaunieks also dispelled several myths. For example;

• "credit liabilities are high and payments increase" - As a result of energy efficiency projects, it is possible to reduce the heat consumption for heating a building by 50-60%, which is used to repay the investment and the loan payment. Therefore, the monthly payment of the population does not increase, or the increase is small. There are other benefits to renovating a building, like a 90% real estate tax rebate.
• "mould will increase after the renovation" - This was indeed the case while back, as the work was not carried out due to the specifics of the ventilation systems of houses built during the Soviet era. Currently, in the process of renovating the building, the ventilation system is being put in order, the risk of condensation is being reduced, the temperature on the wall surface and in the corners is increasing, the comfort temperature grows, and the optimal room microclimate is being ensured.
• "the building does not need to be renovated because it is in good condition" - Civil engineers have long warned that the housing stock in Latvia is outdated and in poor technical condition. When renovating building groups, enclosing structures, joints and cracks are restored and preserved under a layer of thermal insulation - they are no longer exposed to external weather conditions. Therefore, the expected life cycle of the building is increasing. The building is becoming more beautiful, and its value is growing significantly. The investment in the renovation of the building is equivalent to the increase in the value of the building.
• "the quality of the building renovation is poor" - About 1,000 buildings have been renovated in Latvia since 2009. The process of building renovation is being implemented in accordance with the Construction Law; construction standards are being improved for the introduction of quality projects. The construction tender also restricts the choice of materials, the selection of specialists and other matters related to construction. In turn, the construction supervisor ensures a good construction result. Residents of the house can also get involved in the construction process and report to the construction supervisor regarding anything noticed.

Riga Energy Agency offers online consultations, face-to-face meetings and training, support for preparing technical documentation, and full-cycle energy efficiency project management – from the idea to building renovation.

The standard of the future – charging at each building

Ansis Valdovskis, Head of Electric Vehicle Charging Network Development at Latvenergo AS, explained that as the number of electric cars increases, more and more charging points are needed. However, charging points are most often are located near major highways, shopping malls, sports centres. Latvenergo has already established 71 public ports, including in the residential areas of Riga.

Creation of a charging station requires a whole lot of coordination. According to the Law on Residential Properties, up to three decisions may be required - a permit for the use of a common charging station, a permit for the construction of a charging station, preparation of regulations on how to use common land between the owners. There may also be problems with the connection of charging points, as many buildings have insufficient connection capacity; the urban policymakers are of the opinion that parking should be banned near residential buildings, it is not clear who will manage and who will be responsible for the charging station and its infrastructure, how settlements will be made and other problems dealt with.

Of course, they can all be solved, and the installation of a charging station can be included in a home renovation project. Charging stations can be placed next to apartment buildings in the existing parking spaces, or you can create so-called charging hubs.

Elektrum Energy Efficiency Centre with more than 24 years of experience, educates people on various solutions to increase energy efficiency by regularly organising free webinars and events, as well as providing consultations.