Faced with the climate emergency, constantly rising energy costs, and increasingly stringent regulatory requirements, local authorities must accelerate the energy renovation of their buildings. The French government has established the Green Fund, a key financing mechanism for the ecological transition. However, not all local authorities are automatically eligible for these subsidies. In this context, Powesco positions itself as a strategic alternative, offering technical, financial, and contractual solutions that enable energy renovation projects to be carried out even in the absence of, or in conjunction with, the Green Fund.
Context
Energy consumption of public buildings
In France, the building sector accounts for 44% of energy consumption. The public tertiary sector (schools, town halls, gymnasiums, administrative buildings, hospitals) constitutes a significant portion of this consumption, with more than 225,000 buildings and nearly 280 million m² operated by local authorities.
Read also: Why is energy-efficient hospital renovation a priority?
Added to this is a tight budgetary context: since 2021, local authorities' energy expenditures have increased sharply. According to the Senate, some municipalities have seen their bills rise by 50%, and three-quarters of inter-municipal authorities have experienced a tripling or even a quadrupling of their energy costs.
Their carbon footprint
Local authorities contribute to more than 12% of national greenhouse gas emissions . Reducing the carbon footprint of public buildings is therefore a key lever for achieving national and European decarbonization climate targets
Regulations
The ELAN law, passed in 2018, established the Tertiary Eco Energy scheme (tertiary decree). This requires tertiary buildings larger than 1,000 m² to progressively reduce their energy consumption:
- -40% by 2030
- -50% by 2040
- -60% by 2050
These objectives can be achieved through energy renovation work, but also through optimized operations and changes in usage. Meeting these obligations generates massive investment needs for the public building stock.
It is within this framework that the energy renovation measure for local public buildings of the Green Fund, in continuity with the mechanisms of the Recovery Plan (DSIL, DSIL RT, DSID RT).
What is the green fund for energy renovation of public buildings?
The Green Fund, officially called the Fund for Accelerating the Ecological Transition in Territories, is a public funding mechanism set up by the State to support local projects contributing to the ecological transition.
It includes a measure specifically dedicated to the energy renovation of local public buildings, with a clear objective:
- reduce energy consumption,
- reduce greenhouse gas emissions,
- to improve the comfort of staff and users.
Since 2023, the Green Climate Fund has already supported more than 19,000 projects, mobilizing €3.6 billion in grants and generating €27.5 billion in public and private investments.
What is its purpose?
The scheme aims to subsidize local investments that improve the environmental performance of public buildings. It is included in the 2023 Finance Law and coordinated by the DGALN (Directorate General for Spatial Planning, Housing and Nature) of the Ministry for Ecological Transition.
The projects must enable an average reduction of at least 40% in final energy consumption, consistent with the objectives of the tertiary decree, as well as a significant reduction in GHG emissions.
Who is it addressed to?
The eligible beneficiaries are:
- municipalities , departments and regions ;
- inter -municipal bodies with their own taxation powers, territorial and rural balance hubs;
- the energy unions ensuring the project's implementation.
Social landlords are not eligible for this specific measure, as other schemes exist for the renovation of social housing.
What are the eligibility requirements?
In metropolitan France, a project must:
- to allow a reduction of at least 30% in final energy consumption across the five regulated uses;
- lead to a significant reduction in GHG emissions ;
- to be justified by a thermal study.
What does it help to finance?
The Green Fund finances work on existing buildings, including:
- quick win actions ( piloting , regulation, lighting...);
- insulation work and equipment replacement (heating, ventilation, DHW, etc.);
- major rehabilitation operations , which may include safety, accessibility, asbestos removal or waterproofing.
What amounts?
The Green Climate Fund has been renewed in 2025 with a budget of 1.15 billion euros.
As an example, in Île-de-France in 2024, nearly 400,000 m² of public buildings were renovated with €109 million in subsidies.
How to apply?
Project promoters must, in particular, provide:
- a detailed description of the project;
- a thermal study or energy assessment;
- the required administrative documents.
Applications are submitted via the Simplified Procedures. Local authorities can benefit from support from the State, CEREMA, ADEME, energy unions, the ACTEE program or the Banque des Territoires.
What are the deadlines?
Announced on August 27, 2022 by Prime Minister Elisabeth Borne, the Green Fund has been in effect since the beginning of January 2023. The application platform for 2025 has been closed since the end of December 2025 due to an adaptation of the mechanisms.
How does Powesco support public buildings in energy renovation?
The Green Fund is a powerful tool for financing the energy renovation of public buildings. However, not all local authorities can benefit from it: some projects are ineligible, funding has been exhausted, there are tight deadlines, or uncertainties related to the renewal of the scheme.
In this context, Powesco offers a complementary and secure approach, allowing communities to carry out the same energy renovation actions as those financed by the Green Fund, but without depending on public subsidies.
Powesco thus supports communities across the entire spectrum of works eligible for the Green Fund, relying on proven technical solutions and innovative financing mechanisms, geared towards performance and real energy savings.
Solutions equivalent to those of the Green Fund
Powesco is involved in all types of energy renovation projects for public buildings, whether it involves quick actions or more ambitious renovations.
Quick-win stocks
Similar to the "quick win" operations supported by the Green Climate Fund, Powesco deploys solutions with a high return on investment, enabling immediate savings:
- Implementation of building management systems ( BMS ) for monitoring and optimizing energy consumption,
- relamping and modernization of lighting systems,
- optimization of operation and usage.
These actions allow for rapid and significant reductions in consumption, while preparing for more comprehensive renovations.
Insulation work and equipment replacement
Powesco also supports local authorities with structural work aimed at sustainably improving energy performance:
- insulation of walls, roofs and ground floors,
- waste heat recovery,
- modernization of heating, ventilation and air conditioning (HVAC),
- improvement in domestic hot water production,
- integration of renewable energy production solutions ( solar panels)
These works, similar to those financed by the Green Fund, make it possible to achieve significant energy savings and to meet the requirements of the tertiary decree.
Major renovations and comprehensive projects
For the most energy-intensive buildings, Powesco designs and manages major renovation projects, combining several approaches:
- Complete energy renovation
- regulatory compliance
- improved summer and winter comfort,
- integration of charging stations for electric vehicles and greening of the vehicle fleet.
This comprehensive approach guarantees measurable and sustainable performance over the long term.
Alternative financing to public subsidies
One of Powesco's main strengths lies in its ability to finance energy renovation projects without depending on the Green Fund, thanks to contractual arrangements adapted to the budgetary constraints of local authorities.
Public contract for energy performance with deferred payment
Powesco is authorized to respond to public energy performance contracts. In this context, the work is financed by Powesco, and the local authority only pays after the work is completed, based on the actual energy savings achieved. This system limits financial risks and facilitates the achievement of regulatory objectives (tertiary sector decree, BACS decree).
Energy Performance Contract – ESCO
With ESCO third-party financing , Powesco invests directly in the works and is compensated based on a portion of the savings generated. The community thus benefits from:
- work without upfront payment
- of an energy performance guarantee,
- long-term budget visibility.
Valuation of Energy Savings Certificates (CEE)
Thanks to the CEE delegate of the Enerlis group, Loris.ENR , Powesco integrates the valuation of CEEs from the audit phase , further reducing the remaining cost to local authorities.
Powesco, a sustainable solution to accelerate the energy transition of local authorities
Whether the Green Fund is not accessible, insufficient or not renewed, Powesco allows communities to pursue their energy renovation projects, improve the performance of their built heritage and achieve sustainable energy savings, without depending on the vagaries of public funding.
By combining technical solutions equivalent to the Green Fund and innovative performance-based financing, Powesco is establishing itself as a key partner in the energy transition of public buildings.
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