Public Housing Sweden clarifies the consequences of upcoming energy renovation requirements
Public Housing Sweden is a trade and interest organization for over 300 public benefit municipal and private housing companies in the country. The number of apartments in the public sector is close to one million – almost 20% of all housing in Sweden, thus a very large property stock and, in addition, with good statistics on the stock.
When Public Housing Sweden in a project clarifies the consequences of upcoming energy renovation requirements according to the EU directive on the energy performance of buildings (EPBD) and highlights various challenges and opportunities, it means that very important general knowledge about energy renovations for the stock of housing, in general, comes to light.
An analysis of the public housing stock, mainly based on energy declarations, has allowed the division of the current stock into the various energy classes A—G.
According to the EPBD, each member state must determine a plan for how the housing stock will reach the zero-emission building level by the year 2050. In this project, Public Housing Sweden interprets the level as the energy performance of new buildings. With this level of energy use as a target and the energy class statistics on the stock as a background, it has been possible to arrive at the number of homes with different degrees of renovation needs.
By the different levels of action, we mean:
- No action: no energy measures are currently needed.
- Minor actions: adjustments, corrections of errors and deficiencies as well as minor measures (for example, additional insulation of attics).
- Comprehensive measures: smaller measures as above, as well as comprehensive measures for the climate barrier and technical installations.
- Very comprehensive measures: deep renovation of the entire climate barrier, as well as the building’s technical installations.
The various energy renovation groups were then costed, and the total renovation costs per dwelling unit were assessed as follows:
| Energy renovation group | Renovation cost (EUR/apartment) |
|---|---|
| No action | 0 |
| Minor measures | 9 000 |
| Comprehensive measures | 70 000 |
| Very extensive measures | 170 000 |
The total energy renovation cost for all Public Housing Sweden´s 874,000 apartments, where some measures need to be put in place, will be close to 50 billion EUR, a considerable amount in size with half the budget for expenses in Sweden’s state budget for the year 2022.
The costs are of different types: Energy renovation 35%, other necessary costs caused by the energy renovation 45% and VAT 25%.
The report from Public Housing Sweden highlights the extensive costs that the EU directive will entail. What is not noticed in the report is that energy renovations also lead to reduced operating costs. With the help of BIM Energy Renovation, you can calculate the financial consequences of energy renovations, considering both the initial investment cost, running costs and positive effects from reduced operating costs. Accepted methods such as pay-back and the net present value method are used to calculate the financial effects.
Finding optimal solutions and doing the right thing regarding energy renovations in property portfolios requires good calculation tools. BIM Energy Renovation is the IT tool that optimizes technical solutions and financial profitability!