1. 1 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

2. 2 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%). Industry 12% Transport 38% Agriculture 7% Households 32% Tertiary sector 11% Building Sector in Greece

3. 3 60% of all buildings are constructed before 1980, date of entry into force of Insulation Regulation 3.000.000 high energy consuming buildings Non insulated buildings Main problem Number of buildings per time period in Attica Region Energy Consumption of the Building Sector in Greece ggggggg Fact

4. Establishment of New Financial Engineering Instrument HOUSE HOLDS Co investment Holding Fund + Financial Institutions ratio 1:2 Donation from OPs or ROPs OP1OP2OP3ROP1ROP2 DDDDD Operational Programs (OPs)/ Regional Operational Programs (ROPs) Public Investment Programme FUND Exoikonomo kat Oikon FINANCIAL INSTITUTIONS Own capital Selection Process CALL FOR PROPOSALS LOANS HOUSE HOLDS

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

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

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

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

9. 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

10. PLANNING PROBLEMS ENCOUNTERED Set up of a complex administrative scheme in order to safeguard the EC money vs. simplicity for citizens COCOFs 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

11. 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

12. Regional Distribution of approvals

13. % of category interventions Replacement of doors/windows (frames/glazing) 90% Replacement of doors/windows (frames/glazing) 90% Installation of heat insulation 48% Installation of heat insulation 48% Upgrading of the heating and hot water supply systems 64% Upgrading of the heating and hot water supply systems 64% % of eligible budget per eligible category of interventions Breakdown Information on Interventions (approvals) Upgrading heating and hot water supply systems Installation of heat insulation Replacement of doors/windows (frames/glazing)

14. 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/m 2 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)

15. 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 CHALLENGES 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) EVENTUAL RESPONSE more than 300 mio disbursed in 2012 50 mio could be made available for specific actions, ex. subsidy of biomass boilers more than 300 mio disbursed in 2012 50 mio could be made available for specific actions, ex. subsidy of biomass boilers

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