![[Translate to Englisch:]](/assets/group/_processed_/6/b/csm_Genf_Stockimage_1902b4233b.jpg "[Translate to Englisch:]")
The energy transition in the real estate sector is in ongoing development in Switzerland, with major targets to reduce CO2 emissions in the coming years. This article focuses on the canton of Geneva and what are known as HCIs (heat consumption indices), taking a practical example relating to a property in our portfolio in Geneva.
The debate on retaining HCIs or perhaps replacing them with recommendations based on the Cantonal Energy Certificate for Buildings (CECB) is in full swing in Geneva this autumn and coincides with several new developments on the political stage.1 Nevertheless, we have decided to present this study to you, as the energy renovation of the building will need to be started soon - either to meet the HCI thresholds or to achieve a minimum rating under the CECB.
What is the HCI?2
The Geneva Energy Act (LEn) and its implementing ordinance (REn) set maximum values for the heat consumption of each building. This is known as the HCI or heat consumption index. Specifically, it is an index showing the heating consumption of a building (heating and hot water), expressed in megajoules per square metre of space per year (MJ/m2/year). This is calculated by dividing the annual thermal energy consumption of the building by the energy reference area. The calculation is mandatory for all heated buildings in the canton.
As of 1st September 2022, the limit was set at 450 MJ/m2/year (125 kWh/m2/year). If the limit is exceeded, the building must undergo an energy renovation. This includes carrying out an energy audit and implementing optimisation measures, particularly for the technical systems. If the threshold of 450 MJ/m2/year is exceeded, various levels of application are specified to fall again below the threshold value:
- IDC < 550 MJ/m2/year: only optimisation measures (optional energy audit);
- IDC </= 800 MJ/m2/year: optimisation measures and energy audit;
- IDC > 800 MJ/m2/year (significantly exceeding the threshold): energy renovation of the building is mandatory.
In addition, a gradual reduction of the threshold for exceeding the IDC by a significant amount is planned:
- from 1st September 2022 to 31 December 2026: 800 MJ/m2/year (222 kWh/m2/year);
- from 1st January 2027 to 31 December 2030: 650 MJ/m2/year (180 kWh/m2/year);
- from 1st January 2031: 550 MJ/m2/year (153 kWh/m2/year).
Past average HCIs and milestones in relation to the Geneva portfolio, energy master plan, 2020–2030
What is the challenge with our building?
Our investment foundation owns a building in Geneva that is mainly used for residential purposes. This property is in a classic architectural style, old and also listed. The building is heated by gas, and its façade is not insulated. Our average HCI over the last three years was 638 MJ/m2/year. This is a pretty poor figure, but does not significantly exceed the threshold (i.e. <800 MJ/m2/year). Consequently, an energy audit and optimisation measures are required to bring it below the limit of 450 MJ/m2/year. In addition, from January 2031 the new level for significant exceeding the threshold will be 550 MJ/m2/year;2 this will be overshot, implicating a comprehensive energy renovation of the building.
What solutions are we proposing?
As the property is a relatively recent acquisition, we did not have all the data required to optimise the HCI of this building. First, we had to draw up plans to calculate the energy reference area. This then enabled us to commission an external provider to issue a CECB+ with various optimisation proposals (an energy audit).
The result of the CECB+ was fully in line with our rather high HCI, namely class G for the efficiency of the building envelope, class E for overall energy efficiency and class G for direct CO2 emissions. Three optimisation options were therefore proposed to us. Due to the ongoing discussions about potentially abolishing the HCI in favour of requirements based on the CECB, we carried out two analyses, based on projections after completing HCI and CECB renovation work.
- Variant A: optimisation => CHF 175 000*
Variant with minimum effort, but greatest impact on the HCI. IDC expected to be 378 MJ/m2/year, energy efficiency of the building envelope: CECB D.
(essentially: targeted insulation measures, replacing some windows with low energy efficiency, optimising the heating system, installing solar panels and converting to a single-flow ventilation system).
- Variant B: achieving CO2 neutrality => CHF 390 000*
Variant with moderate effort. HCI expected to be 226 MJ/m2/year, energy efficiency of the building envelope: CECB C.
(essentially: in addition to targeted measures, insulating some façades, replacing some windows with low energy efficiency, optimising the heating system by installing an air-to-water heat pump, installing solar and photovoltaic panels and converting to a single-flow ventilation system).
- Variant C: HEP renovation => CHF 440 000*
Variant with extensive effort to achieve an HEP3 label with corresponding exemption from property tax for 20 years. IDC expected to be 197 MJ/m2/year, energy efficiency of the building envelope: CECB B.
(essentially: insulating all façades, replacing some windows with low energy efficiency, optimising the heating system by installing an air-to-water heat pump, installing solar and photovoltaic panels and converting to a single-flow ventilation system).
- Alternative: sell to a third party.
*Please note that these amounts do not include taxes and may increase or decrease by 25% depending on the progress of our analysis.
Based on these findings, we now need to clarify whether we want to carry out this work (and if so to what extent) or simply sell the property to a third party – naturally in line with our Group sustainability targets.
What could happen next?
The development in the canton of Vaud with the revision of the Energy Act (currently in the consultation stage4) and the introduction of requirements based on the CECB are subject to timing comparable to the political context in Geneva. Harmonising the requirements of the cantons of Vaud and Geneva seems quite appropriate to us. Simplifying the approaches would make it possible to provide more clarity to the various specialist groups concerned.
The recent vote in Geneva in favour of abolishing the IDC needs to be carefully incorporated into our strategy, even if the situation remains at a standstill for a few months until a political consensus is reached. What matters is finding the right balance in setting the timing requirements for renovation, which should be neither too strict nor too slow. The key question is whether the Geneva HCI will be retained or, more likely, replaced by systematic use of the CECB, requiring energy-efficient renovation of the most energy-intensive buildings (F and G, energy efficiency of the building envelope). As this decision will continue to be debated over the coming months, we will keep you informed of the selected strategy in a future communication.
1 https://www.laradioplus.com/
2 https://www.ge.ch/ and https://immoscope-ge.ch/
3 High energy performance
4 Projet_de_loi_LVLEne.pdf
Contact