Project Description

Partnership approach Concession in the residential construction environment

Concession models in the residential construction sector make it possible for a private or cooperative partner to obtain the exclusive right to provide certain infrastructure services – such as heat supply, electricity supply (tenant electricity), charging infrastructure or digital networks – in a residential district or building complex.

The concessionaire invests in the necessary infrastructure, operates it for a contractually agreed period and refinances itself through usage fees. This model offers housing companies the opportunity to provide modern utilities and services without tying up their own capital.

Here are the specific challenges:

  • Housing companies want to offer tenants modern and affordable energy and digital services without having to be operators or financiers themselves.

  • Need to meet statutory efficiency and climate targets (GEG, ESG criteria, CO₂ pricing).

  • Technological developments (e.g. large heat pumps, PV roof systems, battery storage, fibre optics, smart meters) require specialized expertise.

  • Neighborhood solutions must be economically viable and at the same time offer long-term price stability.

Developments and challenges

  • Legal framework: Concession agreements in the energy and infrastructure sector are clearly defined by law, with terms usually ranging between 10 and 20 years.

  • Social pressure: tenants expect low ancillary costs, sustainable supply and modern digital services.

  • Economic pressure: Rising construction and energy costs require predictable, long-term operating concepts.

  • Technological trends: sector coupling, tenant electricity clouds, building and district storage, smart charging infrastructure.

  • Funding landscape: KfW programs for district supply, BEW funding for heating networks, EEG remuneration for tenant electricity.

  • Best practices: Successful concessions combine heat and electricity supply with digital infrastructure and are mostly used in new-build neighborhoods or extensively renovated properties.

EXAVY services

EXAVY acts as a private project developer and operator in concession models and provides the following services:

  • Project development & financing

    • Planning and financing the entire energy and digital infrastructure for a neighborhood.

    • Integration of subsidies and profitability optimization.

  • Technical implementation & operation

    • Turnkey construction of heat generation, PV systems, battery storage, charging infrastructure and fiber optic networks.

    • Operation, maintenance and optimization over the entire term of the contract.

  • Contract & price model

    • Transparent pricing for heat, electricity and services over the concession term.

    • Service level agreements for security of supply and quality.

  • Options after the end of the contract

    • Return of the infrastructure to the housing company.

    • Extension of the concession or takeover by a new operator.

Benefits for housing companies

  • Freedom of investment: State-of-the-art supply solutions without own capital or operator costs.

  • Planning security: Long-term fixed conditions and services for end customers, partly linked to market prices and own generation.

  • Attractiveness for tenants: Sustainable, cost-effective energy and digital supply increases tenant satisfaction and loyalty.

  • Technological advantage: Use of the latest energy and digital technologies by an experienced operator.

  • Legal certainty: Compliance with all statutory climate protection and efficiency requirements.