1. National Appropriate Mitigation Action (NAMA) FINANCING MECHANISM FOR ENERGY EFFICIENCY IN BUILDINGS Supporting the implementation on the National Energy Efficiency Action Plan (NEEAP) in the residential, public and commercial sector Laureta DIBRA Ministry of Environment Albania
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2. Draft training module energy sector
OUTLINE
NAMA description 
National Policy context 
Financial assessment of NAMA
MRV plan/arrangement for NAMA
Sustainable development benefits of NAMA
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Draft training module energy sector

3. NAMA Description
This NAMA aims to reduce greenhouse emissions from building sector in Albania through financial mechanism for using energy efficiency technologies/measures in buildings.
Measures/ technolgies to be used :
Energy efficient (capital) renovation of building envelope
Energy efficiency in space heating, hot water, cooling and ventilation systems
Fuel switch in space heating (replacing electricity)
Integration of renewable energy technologies and passive solar designs in buildings
Energy efficient building maintenance and management
NAMA contains following four components:
NAMA Component 1: Financing mechanism (Energy Efficiency Fund)
NAMA Component 2: Technical support and capacity building
NAMA Component 3: Outreach and awareness raising
NAMA Component 4: Improved building management/operation
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4. Possible Organization NAMA
UNFCCC
Ministry of Environment
Ministry of Energy and Industry
Other stakeholders:
Finance, Health, Education, Labour and Social Affairs, Energy, Municipalities,…
NAMA Supervisory Committee
UNDP
International financing institutions/ international donors/partners
NAMA Executive /Coordination
Energy Agency (to be established)
Fund administration (to be established)
TA partners
PMUs
End-users / building owners
Architects/ engineers
Marketing partners
Local financial institutions
Building managers/ operators
Contractors
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Draft training module energy sector

5. National Policy Context
Albania is candidate Member State of the EU and associated itself with most of the formal EU positions in the international context.
NAMA is anchored in the Sector strategy on climate change to be adopted under Environmental Cross-cutting Strategy
INDC is under technical process of preparation (expected NAMA to be included).
NEEAP adopted (2010) but lacking in implementation
NEEAP identifies needs for energy efficiency fund
Energy Efficiency Law (2005) is lacking in implementation. Revised Energy Efficiency Law in preparation (close to adoption):
Establishment Energy Efficiency Fund and Energy Agency (executive agency also for energy efficiency)
Drafting supported by EBRD
Law on Energy Performance in Buildings in preparation
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NAMA: Financing Mechanism for Energy Efficiency In Buildings

6. Financial Aspects of NAMA
Table show indicative budget. Budget depends on available funding and demand
 Component
Grants
Loan program
Activity
Item
Amount (indicative)
€ million
Type
Component 1 Financing mechanism
Concessional credit line 25
Concessional loans
Commercial credit line 15
Private sector
Partial credit guarantee (to be discussed) ?
Grant
Investment grants 3
Component 2: Technical assistance
Pre-feasibility/audits 1
Training programs and other
(including TA building management)
0,5
Component 3: Outreach and awareness raising
Information campaigns
Component 4: Improved building management
Training programs ..
Administration and MRV
Admin and MRV
Total financial component
Loans, credit guarantee 40
Incremental costs (grants)
Investment grants, TA, outreach, pre-feasibility 6
Total NAMA 46
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7. NAMA: Financing Mechanism for Energy Efficiency In Buildings
Evaluation results of NAMA impacts (GHG mitigation)
Building sub categories
Weight Average of Unit Cost of All EE Measures (Euro cent/kWh)
Total Investment (Mil. Euro)
Energy Savings at 2020 (GWh)
Energy Savings at 2020 (ktoe)
Emission reduction at 2020 (ton CO2 reduction)
Household
5.19
25.30
487.19
41.89
159,591
Public Building
4.78
6.90
144.33
12.41
48,502
Private Building
13.80
288.67
24.82
97,018
TOTAL
46.00
920.20
79.13
305,111
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NAMA: Financing Mechanism for Energy Efficiency In Buildings

8. SWOT Energy efficiency in buildings
Strenghs
Energy saving potential is very high
Financial and economic benefits of energy efficient buildings are well-researched and documented.
Albania could benefit from experiences/lessons on energy efficiency financing in EU and region
Weaknesses
Traditional focus on energy supply
Legal framework not completed
Project preparation is time consuming as local financing institutions are not fully familiar with energy efficiency investments
No Energy Efficiency Fund in place
No ESCO concept in place
Opportunities
New trends and emerging markets is mostly in the direction of high quality, which in itself directly means in the direction of EE
Local high-quality energy efficiency qualitative materials available
High liquidity of Albanian banks sector
Awareness campaign regarding new technologies needed
Threats
Legal base of implementation of EE measures in Building is not yet fully in place
Easier to invest in industry sector
Banks are reluctant to finance building sector (due to actual world wide crises in this sector)
Technical assistance is essential, especially energy audits and feasibility studies
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9. Framework for measurement, reporting and verification
MRV Elements Block
International Supported NAMAs
For this specific NAMA
Program oversight
Multilateral or bilateral agreement using national legislation of cooperating Parties
NAMA supervisory committee. Involved international partner and type of agreement with government to be discussed.
Issuance/compliance body
Government body authorised for the multilateral agreement
Ministry of Industry and Energy
Standards
Bilateral Standards (no international regulation)
To be developed for this NAMA. In any case all national standards
MRV Control Entity & Qualifications
Third party or government body
To be discussed whether third party verification is necessary in additional to internal MRV
Monitoring & Reporting (level of buildings)
Results are available to oversight and participants only
For each new constructed/renovated building, a monitoring and reporting reports is drafted. Ex-post monitoring.
MRV Reporting (National Level)
Publically or internally available
Aggregated building-level reports
MRV reports to be published annually. Prepared by NAMA executive body (Fund administration).
Illustration of the MRV framework. Not yet revised/completed for our NAMA.
Discuss the dimensions of the framework and few examples
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NAMA: Financing Mechanism for Energy Efficiency In Buildings

10. Sustainable development benefits
On building level:
Improve energy performance of buildings
Improving comfort levels and the overall quality of public services
Reduce energy costs for private households and businesses
Increase value public and private real estate
On national level:
Support implementation NEEAP
Improving energy security of the country
Increase competitiveness of economy
Cutting public budget allocations for energy bills for public buildings
Contribute to low carbon development
Contribute to development objectives of Albania (environment, economic, and social), including poverty alleviation and social inclusion.
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NAMA: Financing Mechanism for Energy Efficiency In Buildings