Transcript Support Instruments for EER in Germany

Housing Initiative for Eastern Europe – IWO e.V.
for the Support of Market-oriented Structures
in the Housing and Construction Sector in Eastern Europe
“Strategies and Instruments Supporting Energy
Efficient Refurbishment (EER) in Germany”
Knut Höller, Britta Schmigotzki
IWO e.V., Berlin / Germany
Tallinn, 29. November 2006
Structure of Presentation
1.
IWO e.V. – tasks and structure
2.
German experiences in energy efficient refurbishment of prefabricated
housing estates – „The Berlin Strategy“ - after reunification
3.
German strategy for energy efficient refurbishment (EER) – today’s
approach
Company Profile:
Housing Initiative for Eastern Europe – IWO e.V.
IWO (Initiative Wohnungswirtschaft Osteuropa) e.V. – Housing Initiative for
Eastern Europe – is an association of private and public partners who aim at a
market-oriented and ecological development of the housing and construction
economy in transition countries, mostly in Eastern Europe.
Finance
Housing
Industry
complex approach
Public Authorities
Energy
Education & Training
Academy: EAIB GmbH
IWO, located in Berlin, is an officially registered non-governmental and nonprofit organisation.
German experiences in energy efficient refurbishment
„The Berlin Strategy“
Initial situation after 1990:
 Eastern part of Berlin: 632,000 dwellings, of these 360,000 built after 2
WW
 273,000 dwellings in prefabricated multi-family buildings. 800,000 people,
i.e. 2/3 of the inhabitants in Eastern Berlin, live in these flats. They are
located mainly in the districts Marzahn, Hellersdorf, Lichtenberg and
Hohenschönhausen
 Berlin government quickly decided that the maintenance of the existing
stock and the immediate refurbishment with new support instruments
should by applied instead of adopting a policy of wait and see.
German experiences in energy efficient refurbishment
„The Berlin Strategy“
The main elements in the strategy:
1.
Legal assignment of the property and reorganisation of the housing
administration/housing economy.
2.
Improvement of the residential environment
3.
Renovation and modernisation of the building stock

Main difference to situation in CEE: No Privatisation. Housing stock
administrated by municipal companies. Rental housing stock!!!
„The Berlin Strategy“:
Improvement of the residential environment
„The Berlin Strategy“:
Renovation and modernisation of the building stock
The approach:
 At the beginning of the 90s the Berlin Senate ordered extensive
structural studies, to determine the renovation and modernisation
need of the different buildings types.
 A „measure/cost-matrix“ was developed relating 17 building series with
21 renovation measures, and stating an average price for the measure
and the overall sum per flat. Prices varied from 7,000 €/flat (newer
buildings) to 34,000 €/flat (QP 59). The matrix was the basis for the
Berlin support guidelines.
 Measures listed included:
- improvement of thermal insulation and heating system,
- new sanitation,
- new windows and balconies,
- renovation of elevators as well as
- modernisation of the housing entrances and staircases.
„The Berlin Strategy“:
Renovation and modernisation of the building stock
In October 1993, the pilot phase of the programme supporting the
refurbishment of prefabricated housing estates started ...
„The Berlin Strategy“:
Renovation and modernisation of the building stock
... and from 1994 on, the renovation programme was implemented on a
large scale (over a period of 10 years).
„The Berlin Strategy“:
Renovation and modernisation of the building stock
„The Berlin Strategy“:
Renovation and modernisation of the building stock
Methods and instruments:
 Cooperation of players (esp. housing companies, district administration,
planners, architects): development of integrated district concepts which
enable the individual quarters in the district to develop special identities.
 Communal district management
focussing especially on the
participation of inhabitants and
other important actors in the
district.
„The Berlin Strategy“:
Renovation and modernisation of the building stock
Basic principles of financing:
 Nearly all refurbishment measures were financed with long-term loans
with reduced interest rates
 Every credit was secured by mortgages
 When necessary: additional state or municipal guarantees were
provided
 Two levels providing support:
- Federal Government
- Municipality of Berlin
„The Berlin Strategy“:
Renovation and modernisation of the building stock
Financing / Main support programmes:
a.
The „KfW-dwelling modernisation prgramme“ of the Kreditanstalt für
Wiederaufbau (KfW), provided reduced interest rate loans which were
supported by the German government. Alltogether, loans of around 3
Billion € were used for the renovation of the housing stock in Eastern
Berlin.
b.
The „Prefabricated buildings renovation programme“. In accordance
with the so-called „InstModRL“ the Berlin government provided long
term interest subsidies for buildings, where renovation costs could not
be covered by rents and with KfW-loans alone. Approximately 650
Mio. € were provided in the form of long term interest subsidies by the
Berlin government.
„The Berlin Strategy“:
Renovation and modernisation of the building stock
Consequences for the residents:

The costs for the complex refurbishment of the buildings amounted to
23,000 Euro per flat

Measures have been refinanced through the rents

Rents have been increased by 11 percent annually

The average rent in refurbished dwellings included approx. 135 Euro
costs for the refurbishment

On average, the rents in renovated buildings amount to 25 percent of
the net household income
„The Berlin Strategy“:
Renovation and modernisation of the building stock
Overall results:

60 % of the stock has been extensively refurbished
25 %
“
has been partly refurbished
15 %
“
has not been refurbished

Between 1993 and 2003 around 6.2 Billion € have been
invested in the renovation and modernisation of the
prefabricated building stock in Eastern Berlin, that is on
average 23,000 € per flat, of which ~8,500 € used for energy
efficient measures.
German strategy for EER in the housing stock - today
Strategies and Instruments
1. Legal: e.g. Energy Conservation Ordinance EnEV
2. Financial:
- Financing programmes by KfW
- Financing programmes by regional governments and
municipalities
3. Information and Transparency
4. Research and increase of know-how
German strategy for EER in the housing stock - today
Main Financing Instruments
1. Promotion mainly by the Federal Government through the
(Kreditanstalt für Wiederaufbau (KfW) - Reconstruction Loan
Corporation)
2. Promotion by
- reduced-interest loans
- grants
- tax-relief
Promotion of EER by KfW programmes
What is the KfW?
Kreditanstalt für Wiederaufbau (KfW) = “Reconstruction Loan
Corporation”:
 Owned by federal government (80 %) and federal states (20 %)
 KfW Förderbank = KfW Promotional Bank
 Funding areas: housing construction, modernisation, energy
conservation
Conveyance principle
Capital market
(AAA)
co-operative
banks/
savings banks
„conveying
bank“
private
companies
owner
owner
owner
budget funds
e.g. BMVBS
commercial
bank
cooperatives
12
Promotion of EER by KfW programmes
Financing Principles
 Long-term, low-interest financing for projects that reduce CO2
 Interest rate is set considerably below capital market level
 Interest rate fixed for 10 years – reliable basis for calculation
 Financing of up to 100 % of the investment costs
 Partial dept relief for the KfW loan once the level of a low-energy
house has been attained
 Possibility of combination with other promotional funds and with
other KfW programmes
Promotion of EER by KfW programmes
Eligible Applicants and Programmes
Applicants:

Whoever wants to invest in owner occupied or rented residential
buildings (Private individuals, Housing companies, Housing
cooperatives, other investors, municipalities, districts etc.)
Relevant Programmes:
a.
CO2 Building Rehabilitation Programme: 4 fixed packages of extensive
energy refurbishment measures - high interest rate reduction
b.
Housing Modernisation Programme: certain energy efficient measures
(ÖKO-Plus) or modernisation in general (STANDARD) – comparatively
low interest rate reduction
Promotion of EER by KfW programmes
Volume of the CO2 building rehabilitation programme
 Total amount approx. 1.4 billion EUR state support per year, of these
- 1.0 billion EUR for CO2 Building Rehabilitation Programme, divided in
* 600 million EUR reduced interest loans for residential buildings
* 200 million EUR grants for residential buildings
* 200 million EUR for schools, kindergarten etc.
 From 2001 to 2005 approx. 5 billion EUR have been granted for loans in
the programme, for the energy efficient refurbishment of 304,820
dwellings.
 2005: Average size of daily (!) received application amounted to 5 million
EUR.
German strategy for EER in the housing stock - today
Current state of the programme:
 Improved conditions since February 2006 lead to the approval of loans
amounting to 7.5 billion EUR until August 2006.
 Due to the huge demand for the programme, an additional amount of 350
million EUR has been approved by the budget committee of the German
Parliament.
 Currently discussion about re-launch of modified programme from
January 2007 on.
“Strategies and Instruments Supporting
Energy Efficient Refurbishment in Germany”
Thank you very much for your attention!!!
Contact:
Initiative Wohnungswirtschaft Osteuropa (IWO e.V.)
Knut Höller / Britta Schmigotzki
Friedrichstraße 95
10117 Berlin (Germany)
Phone: +49 30 20 67 98 02
Fax: +49 30 20 67 98 04
[email protected]
www.iwoev.org