1. ORGANISATION OF ENERGY EFFICIENCY FUND measuring impacts of EE measures Vesna Bukarica, Ph.D. Head of Energy Efficiency Sector ENVIRONMENTAL PROTECTION AND ENERGY EFFICIENCY FUND

2. 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 to co-finance measures defined in the NEEAP by the Act on Energy Efficiency  Mechanism – polluter pays principle!  environmental charges: emissions of CO2, SO2 and NOx; waste; special charge on motor vehicles  incomes from ETS  EU funds

3. Organisation (1/2)  Bodies of the Fund:  Director  Management Board – 2 representatives of MoEnV, 1 of MoE, MoF, Parliament, Chamber of Economy, expert  Internal organisation:  Sector for fees and management of special categories of waste  Sector for Environmental Protection  Sector for EU funding  Sector for Energy Efficiency  Sector for financial affairs  Sector for legal affairs  Fund secretariat

4. Organisation (2/2) Sector for Energy Efficiency Department for EE and RES projects Team for industry and infrastructure Team for RES Team for buildings Team for clean transport Department for analysis and horizontal measures Team for energy management systems Team for analysis and support to policy implementation

5. 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

6. 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

7. Rules for awarding funding  Conditions for users  registered in Croatia  invest their own funds in the implementation of the project  fulfil specific terms stated in tenders/calls  Conditions for projects  detailed specification of technical conditions and eligible costs  above current legislation levels!  preformed on own, legally constructed and operated property  Conditions for financing  required collaterals  de minimis state aid rules  no retroactive co-financing!

8. Mechanisms for allocating funds Public tender Open 60 days Evaluation committee + decision of the Director/Managing Board -> max.75 days Investment projects – competition based on quality of projects (eligibility and selection criteria defined in every tender) Public call Open until the end of year or until all earmarked funds are approved Fast decisions (max. 45 days) Simpler project, no need for ranking, eligibility criteria must be fulfilled Better prepared stakeholders in advantage Annual program of public tenders and calls published on the web site

9. Starting point: 3rd National Energy Efficiency Action Plan  H.1: Energy audits and energy management in large companies  H.2: Introduction of the individual metering system of heat energy consumption  H.6: Info campaigns  H.8: Promotion of energy services  H.9: Establishing an integrated information system for monitoring energy efficiency implementation  B.3: Fostering integral renovation of multifamily housing  B.4: Programme of energy renovation of commercial non-residential buildings 2014.- ‘20.  B.5: Energy labelling of household appliances and energy standards

10. Starting point: 3rd National Energy Efficiency Action Plan  B.6: Programme of energy renovation of family homes 2014. - 2020.  P.1: Programme of energy renovation of public sector buildings 2014.-’15.  P.2: Programme of energy renovation of public sector buildings 2016.-’20.  P.4: ‘Energy Efficient Public Lighting’ Programme  I.1: Industrial Energy Efficiency Network (IEEN)  I.3: Introduction of efficient electric motor drives  I.4: Energy audits of small and medium-sized enterprises  HC.1: Programme for cooling energy accumulation in building construction  HC.2: Energy audits of heating and air-conditioning systems

11. Starting point: 3rd National Energy Efficiency Action Plan  T.1: Eco-driving training  T.4: Promotion of integrated transport  T.5: Speed limits  T.6: Financial incentives for energy efficient vehicles  T.7: Developing an alternative fuel infrastructure  T.8: Intelligent transport management

12. Investments in EE and RES in 2015 960 million HRK (127 M€) allocated for EE and RES projects

13. Programmes for energy refurbishment of buildings Direct application to tender Family houses Cooperation with building management companies Multi-apartment buildings Direct application to tender Public / Commercial buildings

14. ENERGY RENOVATION OF FAMILY HOMES  WHY?  48.4% of all buildings in Croatia = family homes  HOW?  In 2010, 48% of citizens believed they could reduce their energy use by implementing some of EE measures  Barriers: inadequate knowledge and lack of financial support  The Fund financed citizens in cooperation with local and regional government  2014 - the Croatian Government started the Programme  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

15. The results: 2013 – 2015 66M€ 20M€ 6M€

16. 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 finances: energy audits and certificates, project documentation for energy renovation, the renovation itself and the installation of individual heat metering devices  The Fund financed citizens through property management companies  The Programme started in 2014  Financing with 40, 60 or 80% (documentation 100%)

17. 3x MORE APPLICATIONS! The results: 2013 – 2015 23,7M€ 12M€ 0,9M€

18. INCENTIVES FOR THE MOST ENERGY EFFICIENT HOUSEHOLD APPLIANCES (A+++)  WHY?  20% of energy in households is used for running appliances  A+++ appliances spend 30-60% less energy than appliances in the A energy class  About 180,000 appliances are bought in Croatia each year  HOW?  Enabling incentives for A+++ appliances: 1 person = 1 standard incentive = 800 kuna (about 105€)

19. EXAMPLES OF A+++ BRANDING

20.  20,000 appliances – 16 million kuna (2.1 M€)  9 days in June and only 1 day in October! Results

21. RES projects  In 2015: 135 projects – subsidies of 58.6 Mkn (7.7 M€), including the programme for RES in tourism  Solar thermal and photovoltaic systems  Biomass fired boilers  Production of solid biomass  Heat pumps

22. Almost 3x more incentives The results: 2014 – 2015 7,7M€ 2,8 M€

23. Programme for cleaner transport  Sustainable urban mobility plans  Eco-driving (p ilot project: 8 to 18% savings)  Electric and hybrid vehicles  41.5 Mkn (5.5 M€) approved, 668 vehicles already purchased:  109 electric + 9 PHEV + 550 hybrid  Other measures: conversion to CNG or electric, charging stations, public bicycle systems, electric bicycles, optimising distribution routes, intelligent traffic signalisation

24. Public lighting systems 1. step Energy audit 2.4 Mkn (0.3 M€) Approved: 81 audit 2. step Design documentation 2 Mkn (0.26 M€) Approved: 39 projects 3. step Reconstruction / construction 25.7 Mkn (3.4 M€) Approved: 32 projects

25. 45% MORE PROJECTS The results: 2014. – 2015. 4M€ 2,3M€

26. Other programmes of the Fund  Energy audits and introduction of energy management system ISO50001 in companies  Education, research and development projects  Supporting the implementation of the national climate-energy policy

27. Prerequisites for successful operation  Clear and transparent procedures  Users need to know what they can expect!  Respect the deadlines  Stable terms and conditions  Frequent changes in technical and financing conditions should be avoided  Clear roles and responsibilities  Who does what?  Motivated staff  Possibility to award overachieving and penalise underachieving

28. Measuring energy savings  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  Every engineer responsible for their projects and educated in the field of M&V

29. Achieved energy savings (1/2)

30. Achieved energy savings until end of 2015 (2/2) Sector Savings achieved until end 2015 [PJ] Target 2016 [PJ] Share [%] Industry0,93183,4027,40% Transport0,13966,032,31% Households0,78186,7011,67% Services0,52103,6414,31% TOTAL2,374119,7712,01%

31. Thank you. www.fzoeu.hr kontakt@fzoeu.hr ENVIRONMENTAL PROTECTION AND ENERGY EFFICIENCY FUND