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BPIE: Europe's buildings under the microscope - PU Europe

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Figure 3B1 – Cost reductions for different levels of renovation over time<br />

Source: <strong>BPIE</strong> model<br />

600<br />

500<br />

Renovation costs €/m 2<br />

400<br />

300<br />

200<br />

100<br />

0<br />

2010 2015 2020 2025 2030 2035 2040 2045 2050<br />

nZEB deep moderate minor<br />

Renovation variables<br />

The three main variables that influence <strong>the</strong> pathways for building renovation are:<br />

• <strong>the</strong> rate of renovation, expressed as a % of <strong>the</strong> building stock in a given year;<br />

• <strong>the</strong> depth of renovation, according to <strong>the</strong> four previously described levels: minor, moderate, deep and<br />

nZEB; and<br />

• <strong>the</strong> cost of renovation, which itself varies with depth.<br />

The costs of each renovation depth assumed in our modelling are <strong>the</strong> ones from Table 3.1.<br />

The assumptions for <strong>the</strong> evolution of <strong>the</strong> renovation rates as well as for <strong>the</strong> depth of renovation are<br />

presented in <strong>the</strong> following paragraphs.<br />

Rate of renovation<br />

Our ambition is to see all EU <strong>buildings</strong> renovated between now and 2050. It can be seen that, in order to<br />

achieve 100% renovation within 40 years, an average renovation rate of 2.5% p.a. needs to be attained.<br />

However, with current rates as low as 1%, levels of activity need to more than double to achieve <strong>the</strong><br />

required annual rate.<br />

The main variables concerning renovation rates and considered by this model are <strong>the</strong> speed at which<br />

renovation activity ramps up, and <strong>the</strong> potential peak renovation rate (or saturation value).<br />

Taking into account <strong>the</strong> above-mentioned assumptions and considering at <strong>the</strong> same time <strong>the</strong> practical<br />

limits of <strong>the</strong> renovation rate, this model proposes three main growth patterns: SLOW, MEDIUM and FAST.<br />

These three growth patterns are benchmarked against a BASELINE which assumes that <strong>the</strong> current<br />

renovation rate remains unchanged over time.<br />

The impact on <strong>the</strong> rate of growth of renovation activity is illustrated in Figure 3B2. It can be seen that an<br />

aggressive pathway (labelled “FAST” in <strong>the</strong> graph) would require a rapid increase in <strong>the</strong> rate of renovations<br />

<strong>Europe</strong>’s <strong>buildings</strong> <strong>under</strong> <strong>the</strong> <strong>microscope</strong> | 109

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