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

2. 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 % – 1990
9 % - after 1990

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

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

5. 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)

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

7. 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

8. 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) (Class “D”)
100% of costs to prepare renovation documentation reimbursed (paid from national funds)
100% of reimbursement of installments to low income families

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

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

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

12. 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

13. Thank you, and good luck!