In the Poblado Dirigidode Orcasitas, a community of 1,800 homes in Madrid underwent a consequent renovation project driven by grassroots efforts to combat inefficient building structures.
This project led to an improvement of the neighbourhood’s aesthetics and to significant savings in terms of energy consumption, with residents experiencing up to 80% lower heating costs. Furthermore, the renovated buildings with EPS (expanded polystyene) are set to lower their CO2 emissions by 50% by 2030.
Through community leadership and collaboration with municipal authorities, the Orcasitas renovation demonstrates exactly how impactful insulation with EPS can be on the road to achieving European climate goals.
Challenges
The renovation project in Orcasitas tackled a range of difficulties that paralleled local and European challenges both. Buildings were originally constructed with poor insulation, leading to uncomfortable living conditions, high energy bills, and a significant environmental impact. The façades, roofs, and windows lacked proper thermal protection, leading to heat loss in the winter and over heating in the summer.
This scenario illustrates the broader European challenge of upgrading an aging building stock, as 70% of it is out of date and contributes to the continent’s energy consumption and CO2 emissions. As the European Union pushes forward with initiatives like the Green Deal and Renovation Wave, projects like Orcasitas area good example of the scale of work required to decarbonise the building stock by 2050.
Solutions
The solutions explored in Orcasitas centred around the extensive use of insulation to retrofit and modernise the buildings. One of the primary strategies was the installation of an External Thermal Insulation Composite System (ETICS) with EPS to envelop the buildings in a continuous thermal barrier. This method was crucial in closing thermal bridges, which are common in older buildings and contribute significantly to energy inefficiency.
The renovation also removed harmful asbestos roofing materials and replaced them with modern, insulated, and reflective alternatives, further improving both energy efficiency and the health conditions of residents. Roofs, façades, and other building envelopes were reinforced with adequate insulation, ensuring a comprehensive solution to thermal loss.
In terms of policy alignment, the approach utilised here prioritises energy efficiency as the first step in the energy transition. By reducing energy consumption, insulation solutions like those implemented in Orcasitas align with the regulations and targets set forth by the EPBD, while improving residents’ living conditions.
Implementation
The Orcasitas renovation project was a collaborative effort between residents, led by a local woman named Manuela Navaro, and the Madrid City Council. The residents pushed for the refurbishment after experiencing years of discomfort due to poor insulation and high energy bills.
Following the application of external insulation to the building façades, residents noted a significant improvement in temperature control as well as aesthetics. Insulation allowed for a complete transformation of the buildings, preserving the neighbourhood’s identity while modernising its appearance.
The total cost of the project was €20 million, 80% of which was funded by the municipal government. Homeowners were responsible for covering the remaining cost, which averaged around €20,000 per household. To address affordability issues, particularly for vulnerable families, the city facilitated low-interest loans through agreements with local banks.
Payment terms were flexible, ranging from 1 to 10 years, making the renovation accessible for all residents.
A further step included the installation of sensors to monitor indoor air quality and energy consumption, with ongoing studies to measure the long-term effects of the renovation on both the environment and the residents' well-being.
Results and Benefits
The renovation has delivered notable results, particularly in terms of energy savings. Heating bills in the neighbourhood have dropped by an average of 80%, and many residents reported that they no longer needed to rely on their heating systems as frequently. One resident noted that their winter heating bill dropped from €300 to just €93.
In terms of emissions, the project is on track to reduce CO2 emissions by 50% by 2030. This achievement is vital in contributing to Madrid’s broader emissions reduction goals, in line with the EU’s target of becoming carbon-neutral by 2050.
Additionally, property values in Orcasitas have increased as a result of the improvements. Residents now boast about the transformation of their homes, noting that the external insulation has rejuvenated the neighbourhood’s appearance. A more subtle effect of this renovation is better health, as this leads to reduced stress and improved overall quality of life through air quality and thermal comfort.
The project has also stimulated the local economy, with job creation in the construction and green building sectors. As the EU moves towards a greener economy, projects like Orcasitas show how renovation can contribute to job growth and economic stimulus.
Policy Relevance
The Orcasitas renovation is a model project that directly aligns with several keyEuropean Union policies, including the Green Deal, the Renovation Wave, and theEPBD.
It demonstrates the potential for community-driven action to align withEuropean objectives and illustrates how energy efficiency through insulation can serve as a primary strategy to reduce energy bills and improve resilience against energy crises.
The Renovation Wave, launched in 2020, aims to at least double the rate of building renovation inEurope by 2030, with a focus on energy efficiency. The Orcasitas project is an example of how energy efficiency should be prioritised over heating system upgrades alone, as the insulation-led approach not only reduces energy consumption but also lowers bills—a critical consideration as Europe faces rising energy prices. This contrasts with approaches that focus primarily on heating solutions, which can sometimes lead to higher energy costs.
By prioritising energy efficiency in line with the EPBD’s minimum energy performance standards, projects like Orcasitas are a good approach to ensure that Europe can meet its decarbonisation targets without burdening citizens with increased energy costs.
Conclusion
The Orcasitas project provides a scalable solution for similar neighbourhoods across Europe. As the continent faces the dual challenge of addressing aging building stock and reducing energy consumption, the focus on insulation as the first line of renovation offers a cost-effective and impactful solution.
This project demonstrates that energy efficiency not only improves comfort and health but also delivers measurable financial savings, reduces emissions, and stimulates economic growth.
Replicating this model across Europe could help achieve the EU’s 2050 carbon neutrality goal, reduce dependence on external energy sources, and create jobs.Stakeholders across the public and private sectors should prioritise insulation-led renovation projects to ensure that future generations benefit from sustainable, energy-efficient housing.