Improving energy efficiency in buildings under the framework of facility management and leasing financing

Panel: Panel 5: Energy efficient buildings

Author:
Klemens Leutgöb, Austrian Energy Agency, Austria

Abstract

Non-residential buildings see a big variety of building management and financing schemes. Two approaches quickly gain shares in the European real estate market: Leasing Financing (LF) and Facility Management (FM). They change the framework for the implementation of energy efficiency measures:

LF influences the decision criteria in new construction and refurbishment;
FM plays a crucial role during the operation phase.

Although LF and FM introduce new parties and thus an additional set of interests, they must not be perceived as obstacles per se: They also offer new ways towards energy efficiency.

Pilot activities in Austria demonstrate the successful integration of advanced energy services into the framework of LF and FM:

At the end of the contract duration, leasing-financed buildings may be confronted with a need for comprehensive refurbishment. Here, leasing can become an important catalyst in preparing the refurbishment project. Integrating energy efficiency measures to the refurbishment activity and guaranteeing thermal-energetic qualities, provide the lessor with the opportunity to prolong and enlarge a running contract. Furthermore, this service reduces his credit risk, due to reduced running (i.e. energy) cost for the lessee.
FM means outsourcing of selected building management functions to an external specialist. The list of requested services can be extended by the identification, implementation, operation and potentially also financing of cost-effective energy saving measures, and by a guarantee on energy cost savings – in other words by integrating elements of EPC-contracts into FM.