PED topic 1: Driving a just transition: PED strategies in social and subsidised housing

Urban housing strategies are central elements of urban development and, as we face a substantial housing crisis across Europe, have increasingly become a key question for ensuring liveability and social equality in European cities: How can we ensure availability, affordability and sustainability in cities’ housing stocks? Accounting for 25% of the total EU energy consumption, comprehensive housing strategies are a key lever for the urban energy transition, both in terms of regeneration/refurbishment of existing homes and new developments.

By integrating housing and energy strategies in PEDs, cities can achieve a balance of environmental responsibility, economic feasibility, and improved quality of life for residents. Varying according to the national or local contexts, public, semi-public and non-profit housing providers play a key role in driving sustainable and just transition processes. Social or public housing may act as a catalyst for both environmentally sustainable development and improving energy affordability for low-income groups. By integrating housing and energy strategies, cities can make meaningful progress toward climate neutrality, while enhancing the quality of life for their residents.

The focus of this topic lies on the public or semi-public housing sectors (social housing, subsidised housing end similar), as they are key actors in ensuring a just transition in addressing accessible housing also for low-income groups, and, with more simple ownership structure, need to be frontrunners and provide good practice for the private housing market in performing the energy transition. Furthermore, such housing providers

Including the PED concept in respective strategies can have large-scale impact in terms of reaching climate goals and energy transition goals, as above-mentioned housing providers typically have a large portfolio of new developments and existing structures in different context of a city or country. Such strategies may have positive impact on both housing affordability and local community-building through energy communities. Energy Communities may serve as a lever for added social infrastructure and inclusion strategy in residential areas and housing estates, promoting collaborative aspects especially in low-income areas and contributing to the quality of life of the residents.

This topic aims at addressing housing, energy and climate crises by exploring combined housing and energy strategies, enhancing energy and housing affordability, mobilising central stakeholder groups and promoting community aspects and quality of life for all residents involved.

Proposals under this topic must seek innovative approaches of integrating PED principles in housing strategies, with a focus on in public / social / subsidised / non-profit housing. In particular, proposals should address the following aspects:

Embedding PED principles in urban housing strategies: PEDs must be integrated into urban housing strategies by ensuring new developments meet net-zero standards and retrofitting of existing buildings significantly contributes to the energy transition and net-zero standards. Proposals need to explore innovative solutions for adapted regulations, financial incentives, and policy alignment, including energy-efficient housing mandates, stakeholder engagement and innovative financing models. As for financing models, smart combinations of public funding, subsidies, and green financing need to be explored as essential drivers for investment. Additionally, PEDs should connect to broader energy networks, enabling peer-to-peer energy trading, demand response, and storage solutions for greater efficiency, climate  resilience and climate neutrality.

The role of housing providers and scalability of strategic approaches: Public housing providers, housing associations and property owners are key to PED adoption but face financial, technical, and resident engagement challenges. Proposals need to explore their specific roles in planning, implementing, managing and monitoring innovative energy solutions in their respective contexts, specifically focusing on their direct communication and engagement of residents. Public buildings and district heating can lead by example, integrating private homes into shared systems. Ensuring a just transition, concrete suggestions for innovative financing models and a fair distribution of the costs for the transformation process need to be provided. Furthermore, there are significant differences between European countries regarding the role of the public housing sector or housing associations. Proposals need to seek context-sensitive applied approaches, consider a wide range of ownership models and identify scalable solutions for different contexts.

Social equity & community engagement: Proposals need to find innovative approaches and solutions for ensuring the PED benefits are accessible to all, including low-income and vulnerable groups, especially by providing evidence for reduced energy costs and therefore reduced risk for energy poverty. Suggested solutions should actively involve residents in planning and implementation and allow for an active role of residents in Energy Communities. Innovative approaches for social equity and community engagement need to go beyond price policies and seek to develop strategies for socially inclusive public space and social infrastructure that builds on community activities and active engagement of different social groups. Proposals should work on integrating PED strategies into holistic neighbourhood development and develop approaches for fostering public acceptance of local energy initiatives through measures for strengthening local community-based projects, creating more inclusive and sustainable urban transitions.

Context-sensitive and scalable technologies: Proposals need to identify and demonstrate effective technological solutions for integrating PED elements into housing strategies. This includes comprehensive energy efficiency strategies, both in terms of building aspects and behavioural aspects, in new developments, and in existing structures. This furthermore includes collective heating solutions, such as geothermal and solar district heating with seasonal storage, electrification strategies, aligning PEDs with mobility strategies by integrating electric and shared or smart technologies and digital solutions, as the latter play a crucial role in energy optimisation and demand-side flexibility.

Project poposals submitted under this topic should address one or several of the following issues:

• How can PED principles be effectively integrated into both new housing developments and the refurbishment of existing residential stock?
• What regulatory and financial mechanisms are necessary to overcome barriers to PED adoption in the housing sector?
• How can housing strategies leveraging PEDs address social equity concerns while ensuring energy transition goals are met?
• How can residents, especially low-income groups, effectively and actively be engaged in the process?
• How can a reduction of energy costs for residents (end-users) be ensured and what evidence can be provided?

Rather than focusing on isolated technical solutions, projects are expected to approach this topic through systems thinking and place-based strategies related to this topic. Project outcomes should be both impact-oriented and process-driven, aiming to be as concrete and user-centred as possible. Projects should clearly define their expected qualitative and/or quantitative outputs (including facts and figures) in relation to the chosen question. Expected outputs include, but are not limited to:

• Development of scalable models for embedding PED principles into public, social, and subsidised housing strategies.
• Development of adaptable PED models suited to diverse urban contexts, ensuring replicability across different European cities.
• Policy recommendations and innovative financing mechanisms to support PED adoption in housing.
• Practical frameworks for public housing providers, housing associations and similar housing providers to implement and manage PED solutions, including resident engagement strategies.
• Demonstration of PED solutions in terms of energy efficiency strategies, local energy generation and flexibility services reducing energy costs, mitigating energy poverty, and ensuring accessibility for low-income groups.
• Strategies for fostering Energy Communities, enabling resident participation in planning and implementation, and ensuring fair benefit distribution.
• Deployment of collective heating systems, electrification strategies, and integration of mobility and smart technologies.
• Strategies for strengthening local community projects and engagement initiatives, as well as for improving neighbourhood-oriented quality of life trough added social infrastructure, quality public space and similar to enhance public trust and support for renewable energy transitions.