Investing in Energy Efficiency in Housing in Lithuania Inesis Kiškis Ministry of Environment

Basic facts about Lithuania population - 3,00 Million and declining more than 38,000 multi-apartment blocks more than 800,000 apartments 66 % of population lives in multi family buildings built before 1993 The age structure of buildings 26 % built before 1960 65 % - 1960 – 1990 9 % - after 1990

Heat supply and use 65 % of multi-apartment blocks are served by district heating systems Current energy consumption ~ 160 kWh/m2

Previous effort to improve efficiency World Bank Energy Efficiency & Housing Project 1996-2004 Government sponsored assistance scheme for renovation of apartment buildings 2006-2008 (“The Old Program”)

Current renovation effort 24,000 eligible apartment blocks, built prior 1993 4 simultaneous programs on different terms: Jessica- €149 million Depressed areas €47 million Social housing €11 million Public buildings (schools, pre-school, hospitals)

Success to-date ~ 400 buildings renovated under previous programs 33 apartment blocks in process of renovation under Jessica program Could be better....

Possible reasons for slow progress Mentality Varying terms Eligible costs limited to energy efficiency measures Legal sensitivities Difficult to raise money for co-financing Apartment owners poorly organized Public procurement – an issue

Jessica Fixed interest rate at 3% Maturity up to 20 years 2 years grace period (during construction) No collateral 15% written-off if certain energy efficiency level achieved (upon completion) 110-145 (Class “D”) 100% of costs to prepare renovation documentation reimbursed (paid from national funds) 100% of reimbursement of installments to low income families

Too good to be true, but... Apartment owners want even more

Government gives in, and offers additional concessions As a result, people wait for more concessions

Bad public relations Conflicting interests groups Failure to launch aggressive and targeted public relations program

Lessons learned Develop a single & comprehensive renovation program Resolve all potentially sensitive legal issues Announce terms and conditions well in advance Don’t change them significantly over the course of program implementation Overarching public relations campaign is a must Be firm and patient, don’t give up

Thank you, and good luck!