Planning and implementation of Energy efficiency Hellenic Republic Ministry of Environment, Energy and Climate Change Department for planning and coordination of NSRF co-financed actions (Energy sector) Planning and implementation of Energy efficiency in private housing in Greece in the framework of regulations 397/2009 and 539/2010 Nikos Kleniatis Head of Department Brussels, 29-30 November 2011 1

Building Sector in Greece Construction sector plays major role in Greek economy, corresponding to almost 20% of Greek GDP Buildings correspond to about 36% of total final energy consumption Buildings = residential buildings (32%). Households Agriculture 32% 7% Transport and building sectors account for the greatest energy consumption. During 2004-2005 energy consumption raised by 2%. Transport 38% Tertiary sector Industry 11% 12%

Energy Consumption of the Building Sector in Greece Main problem Number of buildings per time period in Attica Region Non insulated buildings ggggggg Fact 60% of all buildings are constructed before 1980, date of entry into force of Insulation Regulation 3.000.000 high energy consuming buildings Study In cooperation with the University of Athens: specialized study, identifying the buildings and the upgrades which will lead to the maximum possible improvements with the minimum possible cost. Electricity consumption accounts for 27% of total final energy consumption while 73% is spent on thermal needs. This is due to energy behavior and the oldness of buildings. Integrated character of interventions for energy saving to reduce energy demand.

Establishment of New Financial Engineering Instrument Donation from OPs or ROPs OP1 OP2 OP3 ROP1 ROP2 D Operational Programs (OPs)/ Regional Operational Programs (ROPs) Public Investment Programme FUND “Exoikonomo kat’ Oikon” FINANCIAL INSTITUTIONS Own capital Selection Process CALL FOR PROPOSALS Co investment Holding Fund + Financial Institutions ratio 1:2 Regulation 832/2010 art.1 LOANS LOANS LOANS HOUSEHOLDS HOUSEHOLDS HOUSEHOLDS HOUSEHOLDS HOUSEHOLDS HOUSEHOLDS HOUSEHOLDS HOUSEHOLDS HOUSEHOLDS HOUSEHOLDS HOUSEHOLDS HOUSEHOLDS HOUSE HOLDS HOUSE HOLDS HOUSE HOLDS HOUSE HOLDS 4

Establishment of New Financial Engineering Instrument Process & Milestones Fund Establishment (legal framework, JMD issue) 20.07.2010/06.08.2010 Funding Agreement ETEAN and Greek Authorities 04.08.2010 Call for Proposals (selection of co investors) 07.09.2010 - 04.10.2010 Selection of banks 24.11.2010 Co financing agreements with 4 Banks 22.12.2010 New Financial Engineering Instrument 05.01. 2011

TOTAL PROGRAMME BUDGET – LIQUIDITY TO MARKET 155 mio € 241 mio € FUND GRANTS FINANCIAL INSTITUTIONS Co investing Ratio 1:2 482 mio € EXPECTED CASH FLOW TO MARKET 1 BN €

Program Players REVOLVING FUND GRANTS MANAGING AUTHORITY OP COMPETITIVENESS MINISTRY OF ECONOMY Department for Planning & and coordination of co financed actions ΕΤΕΑΝ ΑΕ = ΔΙΚΑΙΟΥΧΟΣ ΤΡΑΠΕΖΑ ΕΝΕΡΓΕΙΑΚΟΣ ΕΠΙΘΕΩΡΗΤΗΣ ENERGY INSPECTORS HOUSEHOLDS= final recipients FUND “Exoikonomo kat’ Oikon” INVESTMENT COMMITTEE FINANCIAL INSTITUTIONS REVOLVING FUND ETEAN AE = BENEFICIARY/FUND MANAGER GRANTS

Verification of Eligibility Program Procedure Implementation of interventions HOUSEHOLDS 1 1st Energy inspection 4 30 % loan disbursement Application to the bank 2nd Energy Inspection & Project verification 2 5 Verification of Eligibility Total loan disbursement & benefits 6 Financing Decision 3

PLANNING PROBLEMS ENCOUNTERED Long consultation with many stake holders EC Managing Authority OP Competitiveness Financial institutions Market ETEAN Competent authorities for buildings regulation Complexity of the building sector Absence of legislation framework before 1955 Different authorities issued building permits before 1980 Newly legislative framework through the Buildings’ Energy Efficiency Regulation New Inspectors Registry

PLANNING PROBLEMS ENCOUNTERED Set up of a complex administrative scheme in order to safeguard the EC money vs. simplicity for citizens COCOF’s guidelines under amendment throughout the planning period Reluctance as to the attractiveness of the financial engineering scheme best use of financial engineering scheme combined with grants Need for shaping energy “culture” to citizens Long period for program maturity due to difficulty by all players to adapt to its philosophy and parameters

Program Results (to date) Number of Applications: 43.365 Number of loan pre approval (credit control): 20.681 Number of pre-approved Applications (eligibility verification): 11.869 approved applications: 7.322 4.728 loan agreements 2000 30 % loan disbursements

Regional Distribution of approvals

Breakdown Information on Interventions (approvals) % of category interventions Replacement of doors/windows (frames/glazing) 90% Installation of heat insulation 48% Upgrading of the heating and hot water supply systems 64% % of eligible budget per eligible category of interventions Upgrading heating and hot water supply systems Για την ακρίβεια 984 Αφορούν 640.000 τ.μ. Replacement of doors/windows (frames/glazing) Installation of heat insulation

Energy Savings Estimates Based on information contained in the energy certificates, implementation of the 7.300 approved applications will lead to annual primary energy savings of 170 kWh/m2 which corresponds to a 40% reduction of energy consumption Total annual energy saving for 2012 is estimated at 200 mio kWh based on the 12.000 mature applications (pre-approved) Για την ακρίβεια 984 Αφορούν 640.000 τ.μ.

more than 300 mio € disbursed in 2012 CHALLENGES EVENTUAL RESPONSE Economic crisis Banks’ reluctance (reduced cash liquidity) Low creditworthiness of citizens Limited publicity of the improved conditions of the program Reduced interest from Energy Inspectors due to low fee Acceptance of the Energy Inspection process Amend the co financing ratio (ex, from 2:1 to 1:1 (NSRF-banks) Amend eligibility conditions so as to expand the pool of potential applicants Provide for further publicity of the Program Provide for a “project manager” for households & introduce eligible management cost (ex. 300 €) more than 300 mio € disbursed in 2012 50 mio € could be made available for specific actions, ex. subsidy of biomass boilers

Thank you for your attention Tel: 0030-210-6969909 E-mail: kleniatis@eka.ypeka.gr  16