A Building Performance Contract for Leuven

Start date
January
2021
Status
Lead
Leuven 2030
partners
AGSL, Factor 4
ThemES
Buildings, Energy, Financing

Large buildings also tend to generate steep energy bills in most cases. A proper retrofit should therefore reduce consumption and thus the bill. However, energy-saving measures don't always produce the expected results and a performance contract can address this. A performance contract lays down the envisaged energy reduction in a binding agreement with the contractor. The aim of this breakthrough project is to assemble a consortium of building owners in Leuven who put a large-scale performance contract on the market. In this way, we want to substantially bring down the energy consumption of non-residential buildings in Leuven.

Your contact person

Jan Aerts
Programme manager retrofitting non-residential buildings
jan.aerts@leuven2030.be

Who takes part?

Who are all the partners in the project?

Lead
Leuven 2030
partners
AGSL, Factor 4

Role of Leuven 2030?

In this breakthrough project we assume the following role(s):

Lead
Facilitator

Place in the Roadmap?

This breakthrough project is part of the following programmes of the Roadmap:

How does it work?

First we start looking for partners. Both small organisations and large building owners are welcome. However, not every building is suitable for a performance contract. It is therefore important that feasibility studies are first conducted to provide a definitive answer. These studies consider at least the following parameters. Is the energy bill high enough to achieve a substantial reduction? This is important as the contractor is (partly) compensated from these savings. Is the partner prepared to outsource the maintenance of the building for a longer period (typically 10 to 15 years)? Is the use of the building more or less fixed for the coming years? Rapidly changing use of a building makes it difficult to establish a baseline for the intended energy savings. When we have assembled a sufficiently large consortium of suitable partners, we make formal agreements with all partners and start drawing up a joint tender. This is then put on the market.

Jan
2021
Jan
2021

Idea of a performance contract for Leuven takes shape

Mar
2021
Mar
2021

Search for suitable building owners starts

Jun
2021
Jun
2021

3 feasibility studies completed, others being drafted

Feb
2022
Feb
2022

End target date for assembly of the consortium

Mar
2022
Mar
2022

Preparation of tender and formalisation of agreements between partners

Jun
2022
Jun
2022

Publication of tender

Idea of a performance contract for Leuven takes shape

Jan
2021
Jan
2021
Mar
2021
Mar
2021

Search for suitable building owners starts

3 feasibility studies completed, others being drafted

Jun
2021
Jun
2021
Feb
2022
Feb
2022

End target date for assembly of the consortium

Preparation of tender and formalisation of agreements between partners

Mar
2022
Mar
2022
Jun
2022
Jun
2022

Publication of tender

Why is this project important?

The heating and electricity consumption of non-residential buildings such as offices, schools or hospitals is responsible for approximately 36% of Leuven's carbon emissions*. Proper retrofits of large buildings in Leuven are therefore crucial to achieve a climate-neutral city. However, this kind of work does not always produce the expected results. The aim of this project is to put a large-scale performance contract on the market with a focus on:

  • Guaranteed energy savings. The contractor is compensated for this and pays damages if the results do not meet the agreed objectives.
  • The opportunity for small organisations to participate. Typically, performance contracts are put on the market by one building owner with several buildings (e.g. a city). By assembling a consortium we also want to give small organisations the opportunity to participate.
  • The integration of residual value. This allows measures to be included that are typically not recovered within a period of 10 to 15 years, such as façade insulation, joinery, etc.
  • Assembling a network of building owners. This allows other sustainability themes inherent to owning a large building to be discussed, such as the use of circular materials.

*CO₂-inventory Covenant of Mayors

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The path of the past couple of months

January
2022

We're still very much looking for ambitious building owners big and small to join the consortium.

June
2021

The first three buildings have been screened and deemed to be suitable.

March
2021

The search for suitable building owners is initiated. Due to COVID-19 this is done largely online. This does not simplify the search for partners. An ambitious project such as this requires a high level of mutual trust. Moreover, the COVID situation means that many organisations are reconsidering the use and occupation of their buildings. The experiences with homeworking, distance education and teleconferencing have highlighted new possibilities in some areas.

January
2021

Following the L.E.U.V.E.N. -project, the idea of a large-scale performance contract for Leuven emerges. AGSL and Factor 4 are partners who help to shape the idea concretely.

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