Introduction
In 2024, Greece made a bold leap towards a greener, more sustainable future for its public infrastructure with the launch of the ELECTRA programme. This ambitious initiative is designed to transform the energy performance of public buildings, positioning the public sector as a leader in energy efficiency and climate responsibility. At the heart of ELECTRA lies a set of innovative financing mechanisms—most notably, Energy Performance Contracting (EPC)—that promises to accelerate deep renovations, leverage private capital, and guarantee measurable results.
This blog post explores the vision, structure, and especially the groundbreaking financing tools of the ELECTRA programme, highlighting how EPC is reshaping the landscape of public sector energy upgrades in Greece.
The Vision and Goals of the ELECTRA Programme
The ELECTRA programme was conceived to help Greece fulfill both its national and European obligations for energy efficiency in public buildings. The public sector, with its vast building stock, has a unique opportunity—and responsibility—to lead by example. ELECTRA’s primary objectives include:
- Demonstrating public sector leadership in improving the energy performance of its buildings, setting a standard for the private sector and society at large.
- Contributing to national energy efficiency targets as set out in Law 4342/2015, which transposes the EU Directive 2012/27/EU into Greek law.
- Meeting the annual renovation target of 3% of the useful floor area of central government buildings, as required by Article 7 of the same law.
To achieve these aims, ELECTRA sets a minimum post-renovation energy class of “B” for participating buildings, in line with the Greek Building Energy Performance Regulation (KENAK). The programme also mandates interventions that reduce energy demand for heating, cooling, ventilation, hot water, and lighting, while ensuring optimal indoor air quality and thermal comfort for building occupants.
Accelerating Deep Renovations with Innovative Financing
One of the most significant barriers to large-scale energy renovations in the public sector is access to capital. Public budgets are often stretched thin, and traditional funding sources can be slow or insufficient for the scale of upgrades required. ELECTRA addresses this challenge head-on by introducing a blend of public and private financing, with a special focus on Energy Performance Contracting. Projects under ELECTRA are financed through a combination of Grants from the Recovery and Resilience Facility (RRF) and Private capital, mobilized through Energy Service Companies (ESCOs) and third parties via Energy Performance Contracts (EPCs). This is where the real innovation lies, as private investors and ESCOs bring expertise, efficiency, and market discipline to public projects.
Performance-Based Incentives
ELECTRA sets clear, ambitious targets for each project:
- Achieve at least an asset-based energy class “B” after renovation.
- Secure a minimum of 30% operational-based annual primary energy savings.
- Reduce operational-based CO₂ emissions by at least 30%.
- Ensure that no significant environmental objectives are compromised.
To incentivize deeper renovations, ELECTRA offers higher grant rates for projects that achieve even greater energy performance (for example, reaching class “B+” or meeting all KENAK requirements for deep renovations). The base grant covers 50% of eligible public expenditure, but this can rise to 60%, 70%, or even 85% for the most ambitious projects. This tiered incentive structure encourages public bodies to aim higher and maximize the impact of each renovation.
Energy Performance Contracting: The Game Changer
At the core of ELECTRA’s innovation is the use of Energy Performance Contracting (EPC). This model fundamentally changes how public sector energy projects are financed, delivered, and managed. EPC is a contractual arrangement where an ESCO or third-party investor finances and implements energy-saving measures in a building. The key features of EPC include: upfront investment by the ESCO or financier, repayment from actual, verified energy savings and energy performance guarantees.
How ELECTRA Leverages EPC
ELECTRA actively encourages the use of EPCs by:
- Offering an additional 10% grant bonus for projects that use EPC as their financing scheme.
- Allowing part or all of the required investment to be covered by ESCOs or third parties, reducing the need for public borrowing and accelerating project timelines.
- Facilitating the creation of a stable demand for energy services, which helps develop the ESCO market in Greece and attracts more private capital.
By making EPCs more attractive and accessible, ELECTRA is not only upgrading public buildings but also helping to build a robust market for energy services in Greece.
The Role of Accelerators and Market Development
ELECTRA recognizes that scaling up EPCs requires more than just funding—it needs a robust ecosystem. The ELECTRA programme could be significantly aided through the involvement of “accelerator-type entities” established within the framework of the LEVERAGE project that can:
- Connect public authorities with credible ESCOs and financiers, ensuring that projects are matched with the right partners and that private capital is mobilized to cover the required co-financing, leveraging public grants for maximum impact.
- Help structure and negotiate EPCs for the public authorities, ensuring fair terms and clear performance metrics for all parties, thereby further reducing risk for the public sector and increasing confidence in the EPC model.
By fostering this ecosystem, ELECTRA aims to create a virtuous cycle: as more successful EPC projects are completed, confidence in the model grows, attracting even more investment and expertise. This, in turn, leads to more ambitious projects and greater energy savings across the public sector.
Conclusion
The ELECTRA programme marks a turning point in how Greece approaches public sector energy efficiency. By placing innovative financing mechanisms like Energy Performance Contracting at its core, ELECTRA not only unlocks new sources of capital but also guarantees that every euro spent delivers real, lasting benefits. As more public buildings are renovated and more ESCOs enter the market, the ripple effects will be felt across the economy and the environment.
ELECTRA’s blend of ambitious targets, layered financing, and performance-based incentives offers a blueprint for other countries seeking to modernize their public infrastructure. By aligning the interests of public authorities, private investors, and building occupants, ELECTRA is paving the way toward a more sustainable, energy-efficient future for Greece—and setting an example for the world to follow.