Back in 2007, when the topic of energy efficient office buildings really began to emerge, most real estate professionals (at least in Central Europe) scoffed. Tenants would never pay for it, they said. Nearly twenty years later, how much progress has been made is debatable. In Prague, at least, quantifying the progress is tricky.
According to an internal Savills survey, just 14% of properties hold Energy Performance Certificates (EPCs) in top A or B classes. The majority rate C or below—or lack available data entirely, typically indicating older buildings. The cynical assumption has to be that they have questionable energy credentials and are avoiding disclosure of their performance metrics.
The current EPC process itself suffers from fundamental limitations that undermine market transparency, says Jan Jurčíček, Head of Building & Project Consultancy at Savills. He claims certificates often overestimate performance in older buildings due to outdated methodology, or underestimate efficiency when post-certificate improvements aren’t reflected.
Technical due diligence reveals actual energy consumption frequently exceeds EPC projections by tens of percent, as certificates rely on model parameters like 20-22°C indoor temperatures that rarely match operational reality.
ESG Consultant Barbora Jansová warns against treating EPCs as sustainability guarantees. She claims they assess only energy performance against legislative requirements—not overall carbon footprint.
Various decree versions create incomparable ratings with no official conversion methodology. Nonetheless, banks still have to consider EPCs as measurable ESG inputs for portfolio assessment.
The EPBD IV directive, due for implementation by May 2026, transforms voluntary recommendations into binding obligations. Minimum energy performance standards will mandate renovating 16% of least efficient buildings by 2030 — 26% by 2033. New construction from 2028 must achieve near-zero emissions.
Recommendations will gradually transform into enforceable sanctions. Building renovation passports will accompany updated EPCs, outlining improvement plans toward zero-emission stock by 2050. All of which means that the vast majority of property owners will need comprehensive energy assessments in order to understand the true performance of their properties.
