Energy-efficient refurbishment and renovation: the keys to accessing financial assistance and successfully transitioning

As part of the government’s climate neutrality targets, Luxembourg municipalities will soon be subject to new regulatory requirements regarding the renovation and energy rehabilitation of their building stock. LSC360, a pioneer in multidisciplinary consulting in Luxembourg, offers them comprehensive support to help them move towards resilience, in line with the objectives of the Climate Pact. Interview with Max Spanier, Energy Efficiency Service Coordinator, and Ralf Koehler, Senior Project Director and Decarbonisation Strategy Service Coordinator.

What are the new regulatory requirements imposed by the government regarding the renovation and energy rehabilitation of municipal buildings?

MS: Last year, the Integrated National Energy and Climate Plan (PNEC) updated its energy consumption and CO₂ emission requirements for public buildings. For local authorities, this translates into an annual reduction of 1.9% in final energy consumption across the entire municipal building stock, but also into the requirement to renovate at least 3% of the total energy reference area of their buildings each year. This means that renovated buildings must comply with the new nZEB (Nearly Zero Energy Building) renovation standard, guaranteeing high energy performance and minimal consumption, mainly covered by renewable sources. In addition, it has also become necessary to apply the Climate Pact’s catalogue of actions, which includes energy audits, municipal energy planning, building monitoring and systematic improvement of thermal performance. Through these frameworks, municipalities are guided, both legally and strategically, to accelerate renovation, improve energy performance and systematically decarbonise their public infrastructure.

What subsidies are granted to these municipalities?

RK: There is a wide range of national aid schemes available to municipalities, mainly through the Ministry of Environment, Climate and Biodiversity and the Climate and Energy Fund of the Klima-Agentur. These subsidies cover municipal energy and climate plans, energy renovation, energy audits, climate adaptation measures, life cycle assessments (LCA), and monitoring of indoor air quality in schools. In concrete terms, municipalities can receive 50% subsidies, especially for municipal energy plans and adaptation strategies. Photovoltaic installations, which were previously eligible for subsidies up to 30 kW, will now be able to reach higher limits, which will increase their appeal for large municipal buildings and sites. Life cycle analyses of buildings are also part of the funding programme for municipalities and are subsidised up to 100%. These can be included in the renovation of their buildings, from assistance to construction work, depending on the measure and scope. Aid rates generally range from 50% to 100%, with ceilings usually between €2,500 and €30,000, depending on the measure and the programme. Unfortunately, local authorities are not always aware of this and miss out on this opportunity.

Why are so few local authorities aware of this financial assistance?

RK: There is a lot of information available from several different sources, particularly in the context of the Climate Pact programme. Many other funding programmes come from different sources, which means that local authorities do not have an overview of the subsidies available. Despite some progress, the administrative rules remain complex, the guidelines are frequently updated and the information is scattered. These subsidies are very attractive, but unfortunately they are unclear and not very visible. At LSC360, we are able to advise them in order to clarify this and identify the specific needs of each local authority in order to find the appropriate financing plan.

MS: In other words, certain administrative procedures must be followed in order to obtain these subsidies. This is why local authorities need a partner to remind them of the steps to follow and prevent them from signing contracts without being fully informed, for example.

How does LSC360 help them obtain these subsidies?

MS: With these new subsidy programmes, we will offer framework contracts to municipalities in order to provide them with comprehensive advice. It is advantageous for them to have a single point of contact who can take charge of the entire project, and our Energy Efficiency service offers just that: it provides the technical basis necessary to obtain subsidies through energy analyses, building diagnostics and renovation planning.

RK: In addition, our Decarbonisation Strategy service combines climate strategy development, technical diagnostics and targeted subsidy advice with a single framework for managing climate issues. We prepare complete dossiers, structure investment-ready projects and ensure compliance with administrative and technical requirements in line with funding frameworks. We guarantee structured support to secure national and European funding. These two related services enable municipalities to identify relevant programmes, interpret eligibility criteria, integrate subsidies into climate-energy and renovation roadmaps, prepare and coordinate applications, and ensure administrative and regulatory compliance.

How does LSC360 support Luxembourg municipalities during the climate transition?

RK: LSC360 has nearly 50 years of engineering experience in the environmental and sustainable development sectors. Our role is crucial in Luxembourg’s climate transition. We help municipalities to successfully transition by providing strategic planning and project implementation, always in close collaboration with local stakeholders and in line with the objectives of the Integrated National Energy and Climate Plan (PNEC).

MS: In addition, local authorities must now ensure that their building stock complies with national climate policy frameworks, in particular the Climate Pact and the PNEC. The strategies adopted are specifically designed to meet the regulatory requirement to renovate at least 3% of the energy reference surface area of municipal buildings each year. The regulatory requirements are broken down into phased and financially plannable roadmaps, making it possible to prioritise the buildings to be renovated, coordinate measures over time and realistically achieve the performance targets set. In addition, the Decarbonisation Strategy service promotes public-private partnerships by connecting municipalities and businesses for projects related to energy, renovation or the circular economy, in direct collaboration with the Energy Efficiency service. LSC360 supports nine municipalities under the Climate Pact, some for more than five years, and we have seen progress in governance, data quality and implementation capacity. Some of them are now aiming for the “Gold Audit”, the highest distinction in the Climate Pact.

How can these municipalities contribute to the energy transition in Luxembourg?

MS: Municipalities can have a major impact on reducing energy consumption, as they own a lot of buildings and, to date, building stock accounts for a large percentage of energy consumption. It may be worthwhile renovating these buildings to reduce energy consumption. With the Climate Pact, we have a strategy to help these municipalities and guide them towards the transition in the long term. Municipalities have advantageous financial opportunities, particularly thanks to the aid they can receive, which we believe is a good combination. More and more new government obligations and updates are appearing, and this can be difficult financially, as budgets may be limited. This is why they need support from consulting firms, which can help them carry out the necessary studies to develop sustainable concepts.

RK: Many municipalities are highly motivated to use greener resources, mobilise their technical expertise and exploit available data. That is why we are focusing our efforts on the requirements of the Climate Pact and the new national resilience strategy, LETZ-Prepare. More and more municipalities are expressing an interest in working with us to reduce their energy consumption, produce locally from renewable resources and become more self-sufficient. It is important for us to encourage municipalities to work with new sustainable solutions such as electricity storage, for example, to secure energy supplies over the long term.

Article published in LG271

Photo: Yves Cortum