4. Business strategies & Renovation clusters

Innovative business strategies and clusters will be addressed by way of identifying and harmonizing the governance of all agents integrating the value chain of building renovation, starting new business strategies, developing valuation and strategy tools, fostering an innovation culture among the different stakeholders and mapping potentials for circular economy.

4.1.1 Knowledge exchange platform "Climate and construction" & Policy recommendations

Issue/Challenge
The building sector is a major contributor to global greenhouse gas emissions, particularly through the widespread use of concrete. Timber, as an alternative material, offers advantages in renovation due to its lower carbon footprint and lighter weight, making it easier to extend existing buildings. Currently, timber is a niche product, with wooden multi-story buildings in Switzerland accounting for less than 7% of new builds, though it is more common in renovations. To address this, we conducted an innovation system analysis to identify barriers, underutilized support factors, and international best practices, aiming to create policy recommendations for the Swiss timber construction sector and political system.

Description
During our research, we identified several Swiss groups working on increasing wood use in renovation and construction. However, these groups often work in isolation, with little exchange. To address this, we found 7 relevant parallel projects, contacted them, and created the "Climate and Construction" platform for cross-project collaboration.
The platform allows researchers to: i) connect, ii) share goals, progress, and results, iii) coordinate with stakeholders, and iv) organize joint activities. It includes regular meetings, an MS Teams channel, an email list, and a shared micro-board. Initially focused on wood as a climate-friendly alternative, the platform is open to other climate solutions. Launched in June 2023, it brings together 8-15 researchers from 5 projects, meeting 3-4 times a year with 1-2 presentations per meeting.

4.1.2 Policy briefing: accelerating renovation rates through fossil heating system phaseout - a comparison of cantonal policies and incentives

Issue/Challenge
As part of its Climate Protection Act, Switzerland aims to reduce emissions from buildings by 82% by 2040 and 100% by 2050. Here, the focus on phasing out fossil fuel-based heating systems is important since 56% of homes are still heated by oil or gas heating systems, and the target is to have a 100% fossil-free heat supply by 2040. Renovation plays a pivotal role in meeting the ambitious targets, since the scope of renovation extends beyond mere heating replacement, and usually includes renovations of various aspects of building infrastructure, notably insulation. If done correctly, renovation of heating systems can impact considerably the renovation rate of buildings, contributing significantly to reaching the emissions reduction targets of the Climate Protection Act for the building sector.

Description
This policy briefing compares the policies around fossil fuel heating systems replacement across the 26 cantons and analyses the influence of these policies on the renovation trends of buildings at the cantonal level. Based on this comparative analysis, we provide policy recommendations for the cantons going forward.

4.2 One-Stop Shop Energy Renovation - Best Practice Guidelines

Issue/Challenge
A one-stop shop (OSS) for renovation entails the provision of a comprehensive range of renovation services under a single roof. This Renowave-Solution aims to streamline the implementation of this concept in Switzerland.

Description

• Demonstrate how the OSS approach can add value to the different stakeholders to gain their interest.
• Identify and address the perceived barriers and preferences of potential customers and associated companies regarding OSS for renovation.
• Develop a comprehensive strategy for implementing a one-stop shop. Defining the specific characteristics of an OSS and how they can be tailored to align with the unique needs of each project and organization.
• Investigating how a one-stop shop can contribute to the circularity in the construction sector.

4.3 Valuation and strategy tool for building retrofit

Issue/Challenge
In general, we are improving PwC’s valuation and strategy tool (“PwC tool”) for building retrofit. We are specifically considering the financial implications of regulation topics (Mehrwertabgabe, Lärmschutz). Further, we are developing a version “light” of the PwC tool and a corresponding guideline for a broader audience.

Description
Development of improvements in the PwC valuation and strategy tool:

• 3-5 case studies of the implementation partners AVA, GRU, and REF were presented and then analyzed by the PWC tool. The results from the tool were discussed by the project team.
• Discussions within SP 4.3 about Input Mask parameters (see picture 1 above) have already improved the PwC tool.
• Renovation strategies with differing depths lead to different project valuations (cf. NPVs in Picture 2 above), which serve as a basis for discussing and deciding a development project.
• For the PwC light tool, we reduce the number of input parameters. Additionally, we formulate a corresponding guideline. With this at hand, a broader audience shall be capable of better investment decisions on the project development level.

4.4 Holistic renovation concepts 

Issue/Challenge
In the current market situation, a deep energy district renovation project is costly, requires much information from various professionals, is complicated to conceive and difficult to implement, and energy savings are not guaranteed. To overcome these problems, adapting successful practices from energy master planning to the renovation of districts is required.

Description
This solution focuses on Energy master planning platform (EMP) as a tool for minimizing the impact on the connected centralized energy networks, by offering options for increasing onsite load-matching and self-consumption, technologies for short- and long-term storages, and providing energy flexibility with smart controls.

• Sympheny optimization tool with optimization-based energy master planning will be improved by extending its process and collaborative platform.
• An optimization-based approach is applied in each of the case studies to support the respective EMP process. Site characteristics, specific constraints and objectives of the planners, and local and national boundary conditions will be accounted for.
• EMP will be reconceptualized as a continuous, iterative process. With each stage and substage of the site's life cycle, the assumptions, constraints and parameters underlying the EMP will be reconsidered and the energy concept re-optimized.
• A report will explain how energy master planning will be reconceptualized as a continuous, iterative and participatory process. The assumptions, constraints and parameters underlying the energy master plan will be reconsidered and the energy concept re-optimized considering these developments.