Role of the Fund in supporting ENERGY EFFICIENCY AND RENEWABLE ENERGY SOURCES PROJECTS in Croatia - general informations REPUBLIC OF CROATIA ENVIRONMENTAL PROTECTION AND ENERGY EFFICIENCY FUND Brussels, 15th July Ivan Ćutić Energy Efficiency Sector

Content About the Fund EE & RES Programmes Other programmes Concluding remarks 2

About the Fund Established at the end of 2003 by the Law 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 Mechanism – polluter pays principle! – environmental charges: emissions of CO2, SO2 and NOx; waste; special charge on motor vehicles – incomes from ETS (2015-) – EU funds(2015-) 3

Incomes and allocation 4 Planned incomes for 2015: – 1,6 billion HRK (212 million EUR) Users – Local and regional authorities, public institutions and bodies, companies and entrepreneurships, CSO, physical persons Types of aid – Grants (regulary up to 0,2 M EUR-State-aid (de minimis)) – Loans: 0% interest rate, period 5 years (grace period 2 years) (up to 1 M EUR) Amounts of aid – Up to % of eligible costs (depending on area – development index) – Up to 100% - Government decision, documentation for EU funding

Investments in EE and RES – plan for million HRK (60 M€) allocated for EE and RES projects

RES Programme > 347 implemented RES projects > 190 million HRK (25 M€) – approved by the Fund > 1,3 billion HRK (173 M€)– total investments biomass projects – industrial biomass boilers and CHP projects – biomass boilers –public buildings (schools, kindergarden…)-fuel switching – district heating projects – pellets production plants – biodiesel production plants – biogas plants solar energy projects – thermal collectors and PVs wind energy projects – project development and construction other RES projects (small hydro etc.) 6

Programmes for energy refurbishment of buildings ESCO model Central government buildings Public buildings Cooperation with local authorities (in directly) Family houses Cooperation with building management companies Multi-apartment buildings Direct application Commercial buildings 7

Public buildings Government decision 165,5 MHRK (22 M€) (2014 – 2015) 5,5 MHRK (0,7 M€) 100% of eligible costs energy audits and certificates, ToR for energy service 160 MHRK (21,3 M€) 40% of eligible costs energy refurbishment (envelope, systems) 8

Family houses (European Solar Prize Award 2012, Managenergy Local Energy Action Award 2011.) 9 Envisaged 50 MHRK (6,7 M€) in direct applications model-envisaged 260 MHRK (6,7 M€) (status-nearly houses -540 MHRK (72 M€)) EE measures Plan: 25 MHRK (3,35 M€) Share of Fund: 40%, 60% or80% Share of local authority: 10%, 5% or 2,5% Approved > 112 MHRK (15 M€) for houses! RES systems Plan: 25 MHRK (3,35 M€) Share of Fund: 40%, 60% or80% Share of local authority: 10%, 5% or 2,5% Approved > 43 MHRK (5,7 M€) for houses! biomass stoves biolers (39%), (459 before that)

Multi-apartment buildings Envisaged 122 MHRK (16,2 M€) in Approved- 206 MHRK (27,3 M€) for building ( cca flats) Energy audits and certificates Plan: 6 MHRK (0,8 M€) Share of Fund: 40%, 60% or 80% of eligible costs(max HRK) Approved > 6,6 MHRK (0,9 M€) for buildings! Project design Plan: 21 MHRK (2,8 M€) Share of Fund: 100% of eligible costs (max or HRK) Approved > 29 MHRK (3,8 M€) for 913 buildings! Energy refurbishment (including heat allocators and caloriometers) Plan: 95 MHRK (12,6 M€) Share of Fund: 40%, 60% or 80% of eligible costs(max. 1,4 MHRK or 2 MHRK) Approved > 170 MHRK (22,6 M€) for 344 (+400) buildings! 10

Other buildings 11 Envisaged 50 MHRK (6,6 M€) in For local authorities and companies! EE measures in buildings and construction of new buildings (class A/A+) 50 MHRK (6,6 M€) Share of Fund: 40%, 60% or 80% of eligible costs Approved > 165 MHRK (22 M€) for more than 300 buildings! 41 MHRK (5,5 M€) for 70 projects in commercial services sector

Public lighting systems step Energy audit – legal obligation 1 MHRK (0,13 M€) per year Approved: 136 audits 2. step Project design 1,6 MHRK (0,2 M€) per year Approved: 61 projects 3. step Reconstruction 15 MHRK (2 M€) per year Approved: 41 projects (till the end of projects-approved 125 MHRK (16,7 M€)) 12

Programme for clean transport Sustainable urban mobility plans – Only 9 cities Eco-driving – Pilot project: 8 to 18% savings – HRK ( €) - > more than educated drivers! Electric and hybrid vehicles – 33 MHRK (4.4 M€) – for more than 900 vehicles (up to €/vehicles)! Other measures: conversion to CNG or electric, public bicycle systems, electric bicycle, optimising distribution routes, intelligent traffic signalisation 13

Other programmes of the Fund Energy audits and introduction of energy management system ISO50001 Energy efficiency projects in industry Education, research and development projects Supporting implementation of national climate-energy policy 14

Instead of conclusion… for 1 HRK (0,13€) of subsidies, 3 HRK (0,40€)investments 15 > implemented EE&RES projects > 1,4 billion HRK (187 M€) – approved by the Fund > 4,3 billion HRK (570 M€)– total investments National energy programs – public lighting and industryEnergy audits and certificatesSustainable constructionRenewable energy sources (RES)Clean transportInternational cooperationDevelopment and implementation of Croatian energy policyEducation, research and development Other projects (CSOs, promotion)

Main challenge in the forthcoming period – new sources of financing Role of EU funds (ESI Funds)- EPEEF is Intermediary Body (level II) within Operational Structure for EU funds management of the Republic of Croatia for allocation over 0,53 billion € from European Regional Development Fund (ERDF) for whole PRIORITY AXIS 4, THEMATIC OBJECTIVE 4- Promoting Energy Efficiency and Renewable Energy Sources within Operational Programme Competitiveness and Cohesion 2014 – 2020 (OPCC ). More intensive scaling-up (new co-financing models). 16

Thank you for your attention! REPUBLIC OF CROATIA ENVIRONMENTAL PROTECTION AND ENERGY EFFICIENCY FUND