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

2. 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 11.000 public sector buildings)

3. 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; +

4. 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 +/-

5. 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)

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

7. Zoran Bogunovic zoran.bogunovic@undp.org www.ee.undp.hr Thank You!