May 20, 2009
Renovation Programme (Apartment Block Renovation Programme)
Summary of the case
Social Housing Energy Efficiency Renovation Programme (SHEER) is carried out by the D.V.D. company located in Budapest, Hungary. Established in 2005, the company has developed a Global Environmental Social Business (GESB) mechanism and completed energy efficiency renovations in around 45 pre-fabricated apartment blocks in Budapest and other Hungarian cities. The target group of the programme is middle-low income households in poor condition. The size of the target group, i.e. the total number of apartment block that are planned to be renovated is approximately 50 (over 2 thousand apartments) in Hungary. The renovations include installation of new heating systems, windows frames, and insulation of walls, basement and roofs. Solar pan-els and passive housing standards are planned to be the next step in the development.
The main objective of the programme is to provide an optimal technical and financial plan for the block houses that will help renovate the buildings, thus reducing environmental impact (GHG emissions), increasing the value of apartments, generating income (through lower energy bills), alleviating poverty and creating jobs. Therefore, the company pursues both environmental and development goals.
The role of the company is develop and manage the renovations by providing financial guarantees, developing portfolio for the banks, recovering loan defaults, collecting common costs and disseminating the information. The company follows a social business model which is reflected in the reinvestment of profit into new projects and benefits for middle-low income tenants who would not be able to implement energy efficiency renovations otherwise.
The programme is successful in the way that 45 apartment blocks have already been fully or par-tially renovated, and the mechanism is ready to be replicated on the EU level. The programme includes innovative services in Hungary, such solar panel installation and implementation of pas-sive housing standards (planned). However, so far there has been no in-depth evaluation and quantification of impacts, although the information on the completed energy audits which quanti-fies the GHG emissions before the renovations and expected emission level after the renovation is available for some of the apartment blocks (displayed on the website). The behavioral aspects do not seem to be properly addressed.