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CROATIAN EXPERIENCE IN OPERATING AN ENERGY EFFICIENCY FUND under the regime of the EED Article 7 Vesna Bukarica, Ph.D. Head of Energy Efficiency Sector ENVIRONMENTAL PROTECTION AND ENERGY EFFICIENCY FUND
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Legal framework Energy Efficiency Act (NN 127/14) – Article 13 energy distributors are obliged to make savings by investing in energy efficiency improvements in the final consumption Savings target for Republic of Croatia: 54,250 PJ cumulative; 1,938 PJ annually Article 7 obligation for Croatia
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Combination of two approaches 1) energy efficiency obligation schemes: 22,156 PJ (40,84%) 2) use of alternative policy measures: 32,094 PJ (59,16%) Approach to fulfill Article 7 target
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Objective and non-discriminatory criteria: 1. EEO obligated party has to be an energy distributor 2. energy distribution (in period 2009 – 2013) 3. amount of distributed energy 4. share in the total distributed energy (greater than 30 GWh) distributors of thermal energy are for now not included in the EEO scheme 35 distributors of electricity and natural gas are included in the EEO scheme EEO obligated parties distribute 91% of the total energy distributed EEO in Croatia (1/2)
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the total amount of new energy savings to be realized through a system of EE obligations is 22,156 PJ distribution of the total amount of savings to the EEO obligated parties was made in accordance with the share of each obligated party in total energy distributed in the five- year period gradual inclusion of EEO obligated parties in the Energy Efficiency obligation system EEO in Croatia (2/2)
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Gradual inclusion of EEO obligated parties in the EEO system
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Amount of obligatory energy savings for each EEO obligated party
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Contribution amount of EEO obligated parties to the Fund In the event that the energy distributor does not achieve the obligation of energy savings in the final consumption, they are obliged to pay contributions to the Fund in an amount equal to the investment needed to meet the unfulfilled portion of the savings from previous years Estimation of the amount of contributions was made based on the data on actual energy savings from programs and projects of the Fund
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Amount of income from tariff item and obligation expenses
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Alternative policy measures
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About the Fund Established at the end of 2003 by the Act on the Environmental Protection and Energy Efficiency Fund Extra-budgetary public institution Goal: ensuring financial means for supporting (co-financing) environmental protection, EE and RES projects obliged by the Act on Energy Efficiency to co-finance measures defined in the NEEAP Mechanism – polluter pays principle! environmental charges: emissions of CO2, SO2 and NOx; waste; special charge on motor vehicles incomes from ETS EU funds
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Incomes and allocation Income in 2015: 1,6 billion HRK (211,3 million EUR) Users Local and regional authorities, public institutions and bodies, companies and entrepreneurs, CSOs, citizens Types of incentives Loans: 0% interest rate, period of 5 years (grace period 2 years) Grants
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Available incentives 40% All others 60% II. group of island Mountain areas II. group of municipalities 80% Special state care I. group of islands I. group of municipalities Protected nature 100% Government decision Absolute amount determined in every tender/call
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Investments in EE and RES in 2015 960 million HRK (127 M€) allocated for EE and RES projects
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Share of buildings and industry in total final energy consumption
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Programmes for energy refurbishment of buildings Direct application to tender OPCC specific objective 4c2 Family houses Cooperation with building management companies OPCC specific objective 4c2 Multi-apartment buildings Direct application to tender OPCC specific objective 4b2 & 4c1 Public / Commercial buildings
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Energy renovation of family homes WHY? 48.4% of all buildings in Croatia = family homes HOW? Barriers: inadequate knowledge and lack of financial support 2014 - the Croatian Government started the Programme in cooperation with local and regional government 2015 - the Programme was modified, the citizens can apply directly to the Fund Citizens can get 40, 60 or even 80% of investment in EE measures WHAT? Thermal insulation of building envelope, windows and doors; gas condensing boilers, RES
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The results: 2013 – 2015 66 M€ 20 M€ 6 M€
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Energy renovation of apartment buildings WHY? 26.2% of all buildings in Croatia = multi apartment buildings 65% of them located in the continental part HOW? The Fund financed citizens through property management companies The Programme started in 2014 Financing with 40, 60 or 80% (documentation 100%) WHAT? energy audits and certificates project documentation for energy renovation, the renovation itself the installation of individual heat metering devices
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The results: 2013 – 2015 23,7 M€ 12 M€ 0,9 M€
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Energy renovation of non-residential buildings WHY? Public lead by example Development of ESCO market HOW? Financing with 40, 60 or 80% but up to 1,4 million kn according to de minimis WHAT? Thermal insulation of building envelope Windows and doors Space heating and domestic hot water preparation Ventilation and air-conditioning Control and automatization of HVAC systems Indoor lighting
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The results: 2014 – 2015 15,5 M€ 5,9 M€ Additional: >100 applied RES projects is tourism, approx. 2,7 M€ of subsidies
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Public lighting systems 1. step Energy audit 2. step Design documentation 3. step Reconstruction / construction
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The results: 2014 – 2015 4 M€ 2,3 M€
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Incentives for cleaner transport Electric and hybrid vehicles 41.5 Mkn (5.5 M€) approved Sustainable urban mobility plans Eco-driving (p ilot project: 8 to 18% savings) Other measures: conversion to CNG or electric, charging stations, public bicycle systems, electric bicycles, optimising distribution routes, intelligent traffic signalisation
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The results: 2014 – 2015
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Measuring energy savings from alternative measures M&V system established through EE Law Fund is obliged to report each and every implemented project in M&V web application Data used for annual report under the EED
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Energy savings achieved Measure Energy savings [PJ] Target 2015 [PJ] Share [%] Family houses 0,26940,30688,05% Multi-apartment buildings 0,07050,36519,32% Individual heat metering 0,16490,81320,28% Programme for public buildings (2014. -2015.) 0,0358 (0,1237) 0,191 18,74% (64,75%) Programme for public buildings (2016. -2020.) 0,000 / Commercial buildings 0,02720,6574,13% Public 0,01980,19810,02% Electric and hybrid vehicles 0,01210,11310,74% Eco driving 0,01750,05929,68% CO2 tax for motor vehicles /0,087/ TOTAL 0,6173 (0,7410) 2,887 21,38% (25,67%)
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Thank you. www.fzoeu.hr kontakt@fzoeu.hr ENVIRONMENTAL PROTECTION AND ENERGY EFFICIENCY FUND
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