Presentation on theme: "Investing in Energy Efficiency in Housing in Lithuania"— Presentation transcript:
1 Investing in Energy Efficiency in Housing in Lithuania Inesis KiškisMinistry of Environment
2 Basic facts about Lithuania population - 3,00 Million and decliningmore than 38,000 multi-apartment blocksmore than 800,000 apartments66 % of population lives in multi family buildings built before 1993The age structure of buildings26 % built before 196065 % – 19909 % - after 1990
3 Heat supply and use65 % of multi-apartment blocks are served by district heating systemsCurrent energy consumption ~ 160 kWh/m2
4 Previous effort to improve efficiency World Bank Energy Efficiency & Housing ProjectGovernment sponsored assistance scheme for renovation of apartment buildings (“The Old Program”)
5 Current renovation effort 24,000 eligible apartment blocks, built prior 19934 simultaneous programs on different terms:Jessica- €149 millionDepressed areas €47 millionSocial housing €11 millionPublic 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 MentalityVarying termsEligible costs limited to energy efficiency measuresLegal sensitivitiesDifficult to raise money for co-financingApartment owners poorly organizedPublic procurement – an issue
8 Jessica Fixed interest rate at 3% Maturity up to 20 years 2 years grace period (during construction)No collateral15% 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 relationsConflicting interests groupsFailure to launch aggressive and targeted public relations program
12 Lessons learned Develop a single & comprehensive renovation program Resolve all potentially sensitive legal issuesAnnounce terms and conditions well in advanceDon’t change them significantly over the course of program implementationOverarching public relations campaign is a mustBe firm and patient, don’t give up
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