Energy efficiency in buildings - opportunity for development of ESCO market in Croatia Zoran Bogunović, UNDP Croatia Ljubljana, October 24, 2012

Croatia, 2009 GDP 335,2 billion HRK Total expenses for energy 46,5 billion HRK (14% of GDP) Expenses for energy in public sector buildings 1,4 billion HRK Potential energy savings 40%-60% of actual enery consumtion Potential annual energy savings 500 – 800 million HRK (through refurbishing of approx public sector buildings)

How to realize this potential? What is needed? 1.LEGISLATIVE AND INSTITUTIONAL FRAMEWORK + 2.NATIONAL PROGRAMME + 3.RELEVANT DATA 3.1the register of all public sector buildings; +/- 3.2energy audits; +/- 3.3proposal of technical measures (experts); +/- 3.4calculation of investment (with precise pay-back period); +/- 4. REFURBISHING THE BUILDINGS 4.1ESCO market (experts and companies); - 4.2available products and technology; + 4.3available capital; - 4.4incentives; +

How to realize this potential? What is needed? 5.SYSTEMATIC ENERGY MANAGEMENT IN BUILDINGS 5.1continous monitoring of energy consumption; +/- 5.2systematic energy management; + 5.3information system for energy management; + 6.EDUCATION AND INFORMATION 6.1to public sector employees; + 6.2to managers of construction companies; + 6.3to banks’ executives (risk managers); - 6.4designers and installers; +/- 6.5citizens; + 7. KNOWLEDGE AND EXPERIENCE +/-

What are the key-barriers?  Lack of adequate financing  Interests on loans are to high  Only one active Enery Service Company (HEP ESCO)  Perception of ESCO as high-risk investment  Lack of relevant dana (register of buildings not completed)  Lack of information on necessary technical measures (not enough energy audits)

Possible solutions?  More incentives: stimulative fiscal scheme, feed-in tarrifs…  More support to investors: guarantie funds…

Zoran Bogunovic Thank You!