Smaller scope
Heating-system modernization only, with the capital requirement determined by the building.
Economics / One operating asset
The economics begin
at one building.
GI finances the on-site heating infrastructure. The public institution pays a recurring heating fee. GI carries the operating cost and retains the difference as gross profit. With a 25-year customer contract, the economics depend on both the initial investment and the duration of the recurring cash flow.
01 / Approved reference case
One investment.
One recurring economic relationship.
- Average / representative project investment
- €26,500
This is the investment reference used in the economic model. It is not a fixed project price or a customer invoice. Actual capital requirements vary materially with retrofit scope.
Annual asset economics
- Annual customer fee
- €16,000
- Annual operating cost
- €6,800
- Annual gross profit
- €9,200
Payback and contract duration
- Representative payback
- 2.9 years
- Contract term
- 25 years
- Contract duration after payback
- 22.1 years
Approved representative figures. Individual projects do not necessarily carry the same fee, gross profit or payback period.
02 / Annual fee, cost and gross profit
Where the €16,000 goes.
The reference case separates what the customer pays from what GI spends to operate the asset.
- Annual customer fee The recurring heating fee received by GI.
- €16,000
- Annual operating cost The approved aggregate cost of operating the asset.
- − €6,800
- Annual gross profit The difference between annual fee and annual operating cost.
- = €9,200
03 / Capital recovery and contract life
2.9 years to payback.
25 years of contract duration.
The representative model places payback at 2.9 years within a 25-year customer contract, leaving 22.1 years of contract duration after payback.
YEAR 0YEAR 25
Initial project investmentYEAR 2.9 Representative payback point22.1 YEARS Contract duration after payback
Payback does not end GI’s operating costs or maintenance responsibilities. The remaining contract duration is not a guarantee of pure profit or risk-free cash flow.
04 / Project scope
One model.
Different retrofit scopes.
€26,500 is an average / representative project investment. Some projects can be below €10,000; larger projects can be approximately €30,000–€40,000+ depending on the required work.
Illustrative scope variation / Not standardized packages
Representative reference
The current economic model uses €26,500 as its investment reference, not a fixed price across the future portfolio.
Wider retrofit
Heating infrastructure alongside broader building-envelope or energy-efficiency work where required.
What the required work may include
- Heating equipment
- Boiler-room modernization
- Windows
- Roof insulation
- Building-envelope insulation
- Related efficiency work
Scope is assessed for each building. Not every project includes every element.
Project discipline
What drives the economics.
The reference case is a starting point for assessing projects. Building-specific conditions determine the actual economics.
- Retrofit scope
- The equipment and efficiency work the building needs.
- Heating demand
- The heating service required by the institution.
- Installation requirements
- The work required to integrate the on-site asset.
- Operating cost
- The cost of running and maintaining the heating service.
- Contract economics
- The agreed fee and the long-term service relationship.
05 / Two sides of the economics
The customer pays for heat.
GI invests in the asset.
Customer
Service without upfront asset funding.
- Avoids funding the new GI-financed infrastructure upfront.
- Receives the heating service.
- Pays the agreed heating fee.
- GI assumes operation and maintenance responsibility under the model.
GI Group
Capital, ownership and operating responsibility.
- Deploys the project capital and owns the heating infrastructure.
- Carries operating cost and operates and maintains the asset.
- Receives the contractual heating fee.
- Retains the gross spread between annual fee and annual operating cost.
GI’s ownership relates to the heating infrastructure / relevant asset. It does not imply ownership of the public building.
06 / Portfolio logic
One asset explains the unit economics.
Capital deployment explains the portfolio.
Portfolio economics are created by repeating a disciplined project model across multiple operating assets. Scope, demand and operating requirements must be assessed for each project.
These are current reference economics, not results from an operating GI portfolio. Stage 1 is intended to create that operating proof.
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