MINISTRY OF ECONOMY MINISTRY OF CONSTRUCTION AND PHYSICAL PLANNING SECOND NATIONAL ENERGY EFFICIENCY ACTION PLAN FOR THE PERIOD UNTIL THE END OF 2013

Transcription

1 MINISTRY OF ECONOMY MINISTRY OF CONSTRUCTION AND PHYSICAL PLANNING SECOND NATIONAL ENERGY EFFICIENCY ACTION PLAN FOR THE PERIOD UNTIL THE END OF 2013 February 2013

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3 Table of contents Table of contents... 3 Index of tables... 5 Index of figures... 6 Abbreviations Introduction Highlights of the Second National Energy Efficiency Action Plan National significance of energy efficiency Overview of energy savings targets and their achievement Primary energy savings Primary energy consumption in Croatia Overview of primary energy savings strategies and targets Primary energy savings measures Energy efficiency measures in electricity generation, transmission and distribution Energy efficiency measures in heat production and distribution in district heating systems Promotion of cogeneration of electricity and heat Energy efficiency measures in development of domestic oil and natural gas fields Energy efficiency measures in oil processing and production of oil derivatives in oil refineries Energy efficiency measures in pipeline transport of oil Energy efficiency measures in natural gas transport and distribution Final consumption energy savings Assessment of final energy consumption savings targets and achievements Final energy consumption in Croatia Total national final energy consumption savings and achieved progress Achievement of the first intermediate target of final energy consumption reduction in Estimated final energy consumption savings by 2016 godine National targets for nearly zero energy buildings Other final energy consumption savings targets, achievements and/or forecasts List of strategies affecting the final energy consumption Measures for improvement of energy efficiency and final energy savings Energy savings calculation methodology Overview of all energy efficiency measures Measures in buildings - general Measures in households Measures in the service sector Measures in the public sector Measures in the commercial service sector Measures in industry Measures in transport Measures for energy companies (distribution system operators and suppliers) Horizontal measures Summary overview of all energy savings Public sector Exemplary role of the public sector Leading role of the public sector in the of EPBD

4 3.8.3 Special measures for public procurement Ensuring the accessibility of advice and information Obligation of energy companies to promote end-user energy savings Energy services market in Croatia Strategy to increase the number of nearly zero-energy buildings Alternative measures for heating and air-conditioning systems Support measures for implementing the EPBD Institutional framework for implementing the energy efficiency policy Status analysis period of of 1 st NEEAP Achieved and planned necessary improvements Addendum I- Basic data about energy consumption in Croatia Addendum II- The list of existing and planned measures advancing the goals of EPBD

5 Index of tables Table 1 - Summary of all energy efficiency measures in sectors of direct energy consumption Table 2 Overview of measures from the 1 st NEEAP with quality assessment, achieved energy savings and the measure s status in the 2 nd NEEAP Table 3 National framework for achieving savings in direct energy consumption and sectoral final energy savings target and allocation of the target by sectors Table 4 Overview of targets and achievements in direct energy consumption Table 5 Overview of targets and achievements in direct energy consumption per sector Table 6 GDP, population, energy intensity and total consumption per capita Table 7 List of strategies for primary energy consumption reduction Table 8 List of implemented and planned activities of undertakings in energy sector for improving energy efficiency and reducing losses in the energy sector Table 9 Realised losses in the electricity distribution network in the period and forecast until Table 10 Achieved and planned primary energy savings from energy saving activities in exploitation of domestic oil and natural gas fields Table 11 Activities implemented for improving energy efficiency and reducing losses in oil processing in the period in the Oil Refinery Sisak Table 12 Activities implemented for improving energy efficiency and reducing losses in oil processing in the period in the Oil Refinery Rijeka Table 13 Share of gas pipelines made of steel in the total lenght of gas lines Table 14 Overview of final energy savings achieved/estimated within the ESD Table 15 Overview of energy savings in 2010 per sector Table 16 Energy savings forecasts in 2016 per sector Table 17 List of strategies for reduction of primary energy consumption Table 18 Overview of used TD indicators for calculation and reporting on achieved energy savings in Table 19 Overview of used BU methods for calculation and reporting on achieved energy savings Table 20 Overview of individual general measures for buildings Table 21 Energy consumption in households in the period Table 22 Overview of individual measures in households Table 23 - Energy consumption in the service sector in the period Table 24 - Overview of individual measures in the public sector Table 25 Overview of individual measures in the commercial services sector Table 26 Energy consumption in industry in the period Table 27 Overview of individual measures in the industry sector Table 28 Energy consumption in transport in the period Table 29 Overview of individual measures in the transport sector Table 30 Overview of individual measures for energy companies 134 Table31 - Horizontal and cross-sectoral measures and their sectoral Table 32 Presentation of the projects realised with HBOR loan programme Table 33 Overview of projects and energy savings realizedwith EPEEF co-financing per direct consumption sectors by the end of Table 34 Summary of energy savings from all individual energy efficiency measures.147 Table 35 Summary of measures and achieved energy savings in the public sector by the end of Table 36 Overview of achievements of the company HEP-ESCO d.o.o

6 Index of figures Figure 1 GDP, population, energy intensity and total consumption per capita Figure 2 Losses in the electricity distribution network in the period and forecast until Figure 3 Structure of energy consumption in Croatia in Figure 4 Index of final energy intensity compared to Figure 5 BAU scenario of directenergy consumption and estimates Figure 6 Energy consumption in buildings in the period Figure 7 Energy balance of average household Figure 8 Institutional framework for of the energy efficiency policy in Croatia

7 Abbreviations BAU GDP BU Centre DHS VCC SIRC SIPO EIHP EE EC EMEEES EPBD EPBD II ESCO ESD ETS EU EPEEF HAK CBRD CERA CEMO IPMVP LRSGU MF ME MINT MMTC MRRFEU MCPP MENP MSES NEEAP N/A RES DHW RC CNG TD LPG UNDP business-as-usual gross domestic product bottom-up Centre for Monitoring Business Activities in the Energy Sector and Investments district heating systems Vehicle Centre of Croatia State Inspectorate of the Republic of Croatia State Intellectual Property Office Energy Institute Hrvoje Požar energy efficiency European Commission project Evaluation and Monitoring for the EU Directive on Energy End-Use Efficiency and Energy Services Energy Performance of Buildings Directive Energy Performance of Buildings Directive - Recast Energy Service Company Energy Services Directive European Trading Scheme European Union Environmental Protection and Energy Efficiency Fund Croatian Auto Club Croatian Bank for Reconstruction and Development Croatian Energy Regulatory Agency Croatian Energy Market Operator International Performance Measurement and Verification Protocol Local and regional self-government unit Ministry of Finance Ministry of Economy Ministry of tourism Ministry of Maritime Affairs, Transport and Infrastructure Ministry of regional development and EU funds Ministry of Construction and Physical Planning Ministry of Environmental and Nature Protection Ministry of Science, Education and Sports National Energy Efficiency Action Plan not available renewable energy sources domestic hot water Republic of Croatia compressed natural gas top-down liquefied petroleum gas United Nations Development Programme 7

8 Preamble The National Energy Efficiency Program for the period of was developed and adopted in accordance with European Directive 2006/32/EC on energy efficiency and energy services (ESD). It prescribes the objectives of energy savings and the basis for drafting three-year national energy efficiency plans for 3 three year periods to Every action plan analyzes the effects and, if necessary, revises the current measures, and establishes new sectoral measures in order to ensure the realization of the goal in This is the default format seth forth by the European Commission. The Second National Action Plan for Energy Efficiency has to be drafted by in accordance with the template determined by the European Commission and to which Member States adhere. This document includes, first and foremost, a report on the assessment of of energy efficiency policies. It determines the energy savings in the preceding three-year period and provides guidance for the next period. The action plan is submitted to the European Commission, which reviews the action plans of all Member States, including Croatia, and analyzes the achievement of the objective for the entire European Union. The adoption of this action plan is continuation of ongoing activities and measures defined in the National Energy Efficiency Program for the period from to In the case of increased risk of non-achieving the planned objectives, the existing measures are revised and the new sectoral measures established in order to ensure the realization of the goal in This action plan is adopted to meet the requirements of the European Commission on reporting activities carried out in the previous period and assessing realized energy savings relating to the objectives as set forth in the First National Action Plan for Energy Efficiency for the period from to This represents the basis for the development of the third action plan whose preparation will begin as early as with the detailed analysis of the achievements in and Summary The National Energy Efficiency Action Plan (NEEAP) of the Republic of Croatia complies with the requirements of Article 14.1 of Directive 2006/32/EC on energy efficiency and energy services, which requires Member States of the European Union (EU) to submit to the European Commission (EC) plans containing measures whose will achieve given goals on saving energy in direct consumption by The Second National Action Plan for Energy Efficiency will be drafted by as a prerequisite of achieving the EU s 20% reduction target in primary energy consumption by 2020 in comparison with the basic scenarion (business-asusual) aligned with the strategic and legislative framework of the Republic of Croatia, namely - National Programme of the Republic of Croatia on energy efficiency for the period from to 2016, the Strategy on Energy Development of the Republic of Croatia (Official Gazette no. 130/09) and the Act on Energy Efficiency in direct consumption (Official Gazette no. 152/08, 55/12). By adopting the 2.NAPEnU, Croatia satisfies the EC s request regardingreporting on the activities carried out in the previous period and assessment of the achieved energy savings in relation to the objectives as forth in the First National Action Plan for Energy Efficiency for the period from to This document evaluates the status of the of energy efficiency policies and to identifies energy savings until the end of Based on this document, the EC analyzes action plans of the Member States, including Croatia, and the achievement of the objectives for the entire EU. The Report on the activities carried out in the previous period and the assessment of the effects of the measures defined in the 1. NAPnU was drafted in 2011., and the activities and measures which were implemented in and shall be continued, to a certain extent, through the Second National Action Plan. 8

9 The second National Action Plan is the basis for drafting new, third plan whose drafting shall begin as early in 2013 by the Ministry of Economy. This document will include detailed analysis of achieved goals in and 2012., in order to comply with the obligation under the Act on Energy Efficiency in direct Consumption. The 2 nd NEEAP was prepared according to the EC s template and contains: (1) detailed assessment of of the 1 st NEEAP for the period , (2) proposal of sectoral energy efficiency measures, whose will achieve the final energy savings target, as well as measures regarding energy production/transformation, transfer and distribution planned to achieve primary energy savings, (3) a proposal of necessary improvements of legislative and regulatory framework and institutional organisation needed for and monitoring energy efficiency policy of the Republic of Croatia. As such, this 2 nd NEEAP is a comprehensive strategy for improving energy efficiency in Croatia. The 1 st NEEAP defines the national framework for energy savings target of PJ for The first intermediate target of 6.59 PJ was set for An analysis performed by using energy efficiency indicators based on available statisticsestablished that in 2010., the realised savings amounted to 6.43 PJ, so it may be concluded that the target was nearly achieved. However, the measures should be improved due to the fact that the contribution of individual measures in the beginning of the is the highest and costs are lowest, because the choice of projects set up is such a way. In the next period focus must be placed on the preparation and of detailed and comprehensive national programmes for complex renovation of residential and non-residential buildings, and it must be pointed out that the national target for 2016 is not feasible without of such national programmes. In fact, it is estimated that by residential and non-residential building renovation programmes may achieve savings of 10.4 PJ or 53% of the national target. The next priority area must be the transport sector in which the of measures focused on promoting the use of public transport in passenger transport and of railway in freight transport. The activities implemented in the public sector must be continued so that the public sector may continue to play an exemplary role for stakeholders in other sectors; it is in particular required to utilize significant potentials of the public procurement system that can initiate a complete market transformation toward more efficient products and services. In the industry sector, stakeholders should be encouraged by the Industrial Energy Efficiency Network to systematicly manage energy and to improve the allocation system for funds from the CO 2 emissions fee intended for co-financing of energy efficiency projects in the industry sector. The activity plans of subjects in the energy sector for improving energy efficiency and reducing losses in the energy sector shows the existence of significant primary energy saving potentials. In the next period, a key factor is the supervision of activities for energy efficiency improvement and the reduction of losses on the side of energy production and transmission, implemented by subjects in energy sectors, and monitoring of the achieved primary energy savings by the Croatian Energy Regulatory Agency (HERA), in accordance with the Act on the Regulation of Energy Activities. Besides in the area of energy efficiency, this document defines very important measures necessary for achieving the objective of increasing the share of renewable energy sources - measures to increase the use of solar energy, the increased use of heat pumps, the increased use of biomass, electrical mobility, all of which are part of the strategic and developmental documents, legislation, economic instruments, statistics and action plans for renewable energy sources. Monitoring of National Energy Efficiency Program for the period to and the Second National Energy Efficiency action plan is linked with achieving the goal of energy efficiency by as well as the quota of the share of renewable sources by 2020, which is statistically tracked through the reference scenario to increase the share of renewable energy sources in sectors of heating and cooling, electricity and transport. In order to implement the proposed and complex energy efficiency measures, it was necessary to ensure appropriate institutional support. In 2012 preconditions were created, especially in building sector, under the 9

10 Act on the Organisation and Scope of Ministries and Other Central State Administrative Bodies (Official Gazette 150/11, 22/12) and the Regulation on the internal organisation of the Ministry of Construction and Physical Planning (Official Gazette 27/12), which define the MCPP s competence for normative, administrative and professional activities in implementing the energy efficiency policy of the Government of the Republic of Croatia, including housing, housing construction, construction industry, physical and urban planning and urban development. MCPP established the Directorate for energy efficiency in construction, strategic planning and international cooperation (hereinafter: the Directorate) which is, in cooperation with the ministry s in charge of the energy sector, responsible for preparing proposals of laws and subordinate legislation in the field of energy efficiency, the National Energy Efficiency Programme and national plans for its in building sector. Within MENP in accordance with the the bylaw on internal organization of the Ministry of Environment and Nature ("Official Gazette", no. 27/12) the Department of the Environment and Sustainable Development is established, which in its scope of duties has environmental policy with renewable sources and energy efficiency. Therefore MENP participate in the formulation and of strategical, legislative and implementing acts in the field of energy efficiency and a role of institution for approving, implementing and monitoring the of all measures NEEAP that directly or indirectly relates to the protection of the environment. Also, the bylaw on internal organization of Ministry of Economy as governmental body in charge of policy on energy established the Directorate for industrial policy, energy and miningwith departments for energy efficiency and new technologies. This department is responsible for proposing energy efficiency measures, appliance of new technologies, especially in energy, industry and transport sector, organization of promotional activities for improvement of energy efficiency, promotion of new technology use, collaboration with legal entities and natural persons, national and international authorities, institutions and associations in of all other energy efficiency programs and projects. Supervision of the of the second NAPEnU and reporting of results based on the measurement and verification of achieved energy savings is conducted by the Ministry of Economy (in further text: MoE). Furthermore, under the Act on the Centre for Monitoring Business Activities in the Energy Sector and Investments (Official Gazette 25/12) the Centre for Monitoring Business Activities in the Energy Sector and Investments (Center) was established; one of its roles is to provide expert support in the realisation of all strategic projects ( development and management of investment projects of Public Private Partnerships )as well as in the realisation of energy efficiency programmes. According to the 2 nd NEEAP, Center is entrusted with activities of implementatingcertain measures (state owned buildings), coordination of of all measures implemented by other institutions and companies, and managing information systems for energy management in public sector and system for measuring and verification of realized energy savings. In other words, functions which would be under responsibility of agency for energy efficiency are assigned to Center. This contributes to entire institutional framework for enforcement of NEEAP and efficient monitoring and reporting of realized energy savings. For the MoE's requirements the Center is entrusted with operational management of system for measurement and veryfication of realized energy savings. For the purpose of monitoring the achieved energy savings, and in order to avoid problems related to the lack of data required to calculate savings from individual measures that were present during the preparation of this NEEAP, the Center shall establish an informational system for the purpose of monitoring all energy efficiency measures and assessment of energy savings. The supervision of this system is under the competence of the Ministry of Economy. 10

11 By the end of 2013., most activities and institutional capacities of UNDP s implementing programs: "Bring the house in order" and "Energy Management in Cities and counties" as well as the information system for energy management (ISGE), shall be transferred to the competent authorities, MoE and MPPC and the Centre The Centre which will be the central body for the coordination and of the operational activities for monitoring energy consumption in the public sector at the national level. Further improvement of the legislative and regulatory framework needs to go towards drafting a national plan for increasing the number of buildings with almost zero energy consumption and the development of markets for energy services, together with creating an obligation for energy companies to realize savings in production, transmission and distribution of energy alsofor customers. Encouraging renovation of residential and nonresidential buildings in order to meet the energy standard of "nearly zero energy buildings" is associated with the use of renewable energy sources for heat and electricity in buildings, which reduces consumption and enables the delivery of energy as distributed energy producers. In that sense, the Act on Electricity Market incorporated the provisions of the new Directive 2012/27/EU from 25. of October on energy efficiency. Realistic and stable funding mechanism for the of this National action Plan is mostly provided from extrabudgetary sources g and market mechanisms, and small part from the State budget ( resorces for preparation of programme in the framework of certain measures. The Fund for Environmental Protection and Energy Efficiency co-finances implementing measures and the Croatian Bank for Reconstruction and Development (CBRD) and commercial banks through their programs for facilitating the development of markets for energy services (ESCO) have their share in financing, and this should become the primary form of financing energy efficiency projects in the public sector. Finally, it is necessary emphasize that, in line with the obligation laid down in the Article 7 of the Act on Energy End-Use Efficiency (Official Gazette 152/2008, 55/2012), the assessment of the 2 nd NEEAP s must be carried out annually by MoE in cooperation with MCPP, and a report must be submitted to the Government of the Republic of Croatia. In case of risk of non -realization of planned goals, this NEEAP should be timely revised. Table 1 (below) provides a summary of all energy efficiency measures in sectors of direct energy consumption asproposed in the 2 nd NEEAP, with assigned responsibilities for and an estimated amount of required funds. It is important to note that the of complex programmes of energy renovation of public and commercial, residential and non-residential buildings shall demand large financial resources amounting approximately 4,7 billion HRK. A part of these costs should be financed by the state, because these are strategic projects which, in addition to the energy goals, significantly contribute to economic recovery and bring about new employment, especially in the construction sector. Therefore, it is necessary to ensure the funds from both domestic sources (EPEEF) and EU funds, as well as to cooperate with commercial banks. More precise assessments of required financial resources as well as sources and fees from whish shall be made in programmes and plans for the of individual energy efficiency measures as defined in this NEEAP. Co-financing of measures in which the EPEEF participates is implemented according to plan and work program of the EPEEF depending on available resources, and the coordination of the state administration is carried out by the EPEEF s Board of Directors which is consist of representatives from MENP, ME, MF, business community etc. The second NEEAP will stimulate further activities by creating energy efficiency projects which will allow the use of EU funds after when the majority of the measures from this NEEAP shall continue to be 11

12 implemented and transfused in the third National Action Plan for Energy Efficiency for the period from to Table 1: Summary of all energy efficiency measures in final energy demand sectors 12

13 Ref. Title of the measure Expected energy savings in 2016 [PJ] Bodies competent for of activities within the measure * Estimated financial resources by end 2013 [HRK] Implementation year 2012 Implementation year 2013 Financing sources B.1 Building codes and enforcement 0.72 MCPP improvement of entire legislation N/A MCPP budget B.2 Energy audits of heating and airconditioning systems ME and MCPP alignment of regulations N/A MCPP budget B.3 Energy certification of buildings MCPP alignment of regulations N/A MCPP budget B.4 Increasing the number of nearly zero energy buildings 0.10 MCPP plan preparation and incentive scheme establishment and EPEEF - co-financing N/A MCPP budget EPEEF, HBOR, commercial banks R.1 Info campaigns, activities, additional educationtraining and network of EE info centres UNDP - u okviru mjera P.1 i P.2 EPEEF - co-financing N/A EPEEF R.2 Energy labelling of household appliances 0.83 ME improvement of regulations and establishment of laboratory Končar Elektroindustrija d.d. EPEEF co-financing procurement of efficient products 1,500,000 (establishment of laboratory) 10,000,000 (appliance replacement) 1,200,000 IPA or 80% 300,000 EPEEF or 20% 10,000,000 EPEEF ME budget (regulations) IPA programme (establishment of laboratory) EPEEF (appliance replacement) 13

14 R.3 Financial support programme for natural persons investing in solar heating systems and other EE measures 0.11 ME Programme preparation EPEEF- ensuring required co-financing Counties, regional energy agencies and co-financing CBRD, Commercial banks and citizens (only programme preparation) (cofinancing EPEEF) + 61,150,000 + (cofinancing EPEEF) 142,500,000 = 203,750, ,850,000 + (EPEEF cofinancing) 296,000,000 = ME EPEEF programme co-financing 30 % LRSGUs - N/A CBRD, Commercial banks and citizens 69.98% = 422,850, R.4 LPG and solar energy use on islands programme 0.01 MRRFEU and ME, authorised LPG distributors 5,000,000 1,250,000 3,750,000 EPEEF (Additional funds secured by ME and MRRFEU in their budgets) R.5 Plan for energy renovation of residential buildings 7.61 MCPP detailed plan preparation LRSGU-plan EPEEF - ensuring required co-financing 100,000 (only plan preparation) + 10,000,000 (EPEEF cofinancing) ,500,000 (EPEEF co-financing) ,500,000 (EPEEF co-financing) + MCPP budget (plan preparation) % EPEEF programme co-financing 0.44% EU funds, com. banks, EIB 99.55% EU funds, com. banks 2,240,000,000= 2,250,100, ,000,000 = 562,600,000 1,680,000,000 = 1,687,500,000 ESCO programme P.1 Project Systematic energy management in 0.47 UNDP project team Centre - coordination 15,150,000 3,787, ,362,500 EPEEF 100% 14

15 cities and counties EPEEF financing P.2 Programme House in order 0.12 UNDP project team EPEEF financing EPEEF 100% ME preparation of instructions 250,000 + P.3 Green public procurement LRSGU campaign participation Central Public Procurement Office 500, ,000 = 500,000 budget ME (instructions preparation, campaign) P.4 Programme Energy efficient public lighting 0.25 ME regulations and LRSGU instructions) ESCO companies - 100,000 (only programme preparation) + 300,000,000 = 100, ,000, ,000,000 ME budgets (programme preparation) ESCO market 99.97% 300,100,000 P.5 Plan for energy renovation of public sector buildings 0.53 MCPP plan preparation MCPP- co-financing Centre plan and promotion EPEEF co-financing performance of energy audits of buildings 100,000 (det. plan preparation) 2,000,000 (MCPP cofinancing) + 720,000,000 ( per year) + 2,000,000 (EPEEF cofinancing per year) = 100, , ,000, , ,600, ,000, ,500,000 = 541,500,000 MCPP budget 0.01% MCPP 0.27% CBRD, EIB, commercial banks 99.43% ESCO programme EPEEF co-financing performance of energy audits 0.27% 724,100,000 C.1 Systematic energy management 0.18 ME and MT 50,000 (measure preparation)

16 and auditing in the commercial services sector EPEEF, CBRD, com. banks co-financing 1,250,000 (EPEEF cofinancing) + 2,000,000 (EPEEF cofinancing) (MT) = (FZOEU) = ME 0,5% (plan prepapration) 6,500,000= EPEEF 12,69% EPEEF 20,3% (co-financing) CBRD, com. Banks 70,09% C.2 Incentive programme for solar energy use in camps 0.31 ME and MT detailed programme preparation MT Programme promotion HBOR, com. Banks, EPEEF - co-financing 100,000 (prog. prep.) + 1,500,000 (EPEEF)+ 3,750,000 = 5,350, , ,000 (EPEEF) + 1,250,000 = 1,850, ,000,000 (EPEEF) + 2,250,000 = 3,500,000 ME (plan preparation) EPEEF co-financing 28.03% HBOR, com. banks 70.09% C.3 Incentive programme for investments in solar heating systems and other EE measures in hotels 0.06 ME and MT detailed programme preparation MT Programme promotion HBOR, com. Banks, EPEEF co-financing 100,000 (programme preparation) + 23,750,000 (5,000,000+5,250, ,500,000) + 64,250,000 (11,500, ,250,000+40,500,000 ) = 100, ,250,000 (2,000, ,750, ,500,000) + 22,100,000 (4,500,000+4,100, ,500,000) ,500,000 (3,000, ,500, ,000,000)+ 42,150,000 (7,000, ,150, ,000,000 )= ME and MT (programme preparation) EPEEF co-financing 0.30% HBOR, com. banks 0.69% 16

17 88,100,000 = 30,450,000 57,650,000 C.4 Increasing the efficiency of cooling systems in hotels and other tourist facilities 0.05 ME and MT programme preparation MT Programme promotion EPEEF - co-financing 100,000 (programme preparation) N/A 100,000 ME (programme preparation) CBRD, com. banks C.5 Energy renovation of commercial nonresidential buildings 1.48 MCPP and by improvement of legislative and regulatory framework for energy efficiency plan preparation CBRD co-finance and Plan 250,000 (detailed plan preparation) 1,960,000,000 ( per year) = by improvement of legislative and regulatory framework for energy efficiency 1,720,500, , ,000,000 = by improvement of legislative and regulatory framework for energy efficiency 440,500, ,470,000,000 = 1,470,000,000 MCPP budget and improvement of legislative and regulatory framework for energy efficiency (plan preparation) improvement of legislative and regulatory framework for energy efficiency, EU funds, com. banks, ESCO, ESCO model programme I.1 Industrial Energy Efficiency Network (IEEN) ME and EIHP programme preparation EIHP programme EPEEF co-financing N/A EPEEF I.2 Voluntary agreements with industry EIHP N/A EPEEF I.3 Energy auditing scheme for industry EIHP 5,000,000 1,250,000 3,750,000 EPEEF 100% I.4 High efficient cogeneration in industry 0.17 CEMO, ME, CERA, EIHP, SYSTEM OPERATORS regulations and incentive system N/A CEMO- incentive system I.5 CO2 emissions fee for large 1.00 MENP 30,000,000 7,500,000 22,500,000 EPEEF 100% 17

18 polluters EPEEF I.6 Introduction of efficient electric motor drives 0.82 EIHP, HEP, ESCOs measure EPEEF - co-financing N/A EPEEF com. banks T.1 Eco-driving training 1.23 HAK, EIHP 83, ,365, ,365,417 +1,365, ,365,417 (total HRK 5,545,000 per year) 83, ,365, ,365, ,365, ,365,417 = 5,545,000 IEE + EPEEF + MMTC+ MENP + LRSGU T.2 Intermodal freight transport MMTC N/A MMTC T.3 Introduction of bonus-malus scheme for vehicles in view of CO2 emissions/km 0.52 MENP, EIHP, EPEEF, VCC N/A EPEEF T.4 Introduction of car sharing scheme in cities 0.01 LRSGU and EIHP N/A LRSGU budgets EPEEF, EU funds T.5 Speed limitation 0.70 MI, SOM 0 / T.6 Financial support for energy efficient vehicles 0.38 MENP, EPEEF N/A EPEEF, com. banks, state subsidies T.7 Financial support for developing the infrastructure for city bikes 0.09 LRSGU, EPEEF N/A LRSGU budgets CBRD, EPEEF com. banks T.8 Promoting e- mobility and HEP and EIHP N/A LRSGU budgets 18

19 developing a network of filling stations for electric vehicles LRSGU local programme EPEEF, EU funds T.9 Modification of calculating tax reliefs based on travel expenses MF 0 / T.1 0 Promotion of sustainable city transport systems EIHP in cooperation with LRSGUs and regional energy agencies N/A LRSGU budgets EPEEF, EU funds T.1 1 Advanced regulation of traffic sections equipped with intelligent traffic lights 0.16 MMTC, EIHP in cooperation with LRSGUs and regional energy agencies N/A LRSGU budgets EPEEF, EU funds T.1 2 National campaign One day a month without cars 0.13 EIHP campaign management and campaign impacts monitoring N/A LRSGU budgets EPEEF, EU funds E.1 Individual metering and informative billing 0.61 Distribution system operators, suppliers, HEP, CERA, EIHP EPEEF - co-financing introduction of individual heat metering 10,000,000 2,500,000 7,500,000 EPEEF 100% EU funds, com. banks E.2 Preparation for establishing the white certificate scheme ME 2,000, ,000 1,500,000 ME budget (IPA programme) H.1 Energy audit Integrated into other sectoral measures 19

20 programmes H.2 Loan programme for EE and RES projects HBOR In cooperation with com. banks, EPEEF may also subsidise interest rates H.3 Feed-in tariffs for RES and high-efficiency cogeneration CEMO, ME, CERA, system operators Depending on the quantity of electricity generated and delivered to the network H.4 EPEEF financial support for EE; RES and clean transport MENP, EPEEF Defined within individual measures H.5 Energy efficiency in education, science and research ME, MENP, MCPP, MSES, EIHP N/A ME, MCPP, MENP, MSES, EPEEF budgets H.6 Advanced energy network ME N/A ME budget EU funds and programmes H.7 Improvement of legislative and regulatory framework for and monitoring of energy efficiency policy ME, Centre system for monitoring of measures and energy savings calculation 500,000 (web information system) 125, ,000 ME budgets (regulations) EPEEF (information system for energy savings monitoring and calculation) Regional project GIZ TOTAL *Commentary: Center is assign for coordination and reporting about all above mentioned measures. All bodies are obliged to supply information, about status of activities enforcement for the purpose of measuring and verification of realized energy savings, to Center. 20

21 1 INTRODUCTION 1.1 Highlights of the Second National Energy Efficiency Action Plan The Second National Energy Efficiency Action Plan (NEEAP) was prepared in accordance with requirements of Directive 2006/32/EC on energy end-use efficiency and energy services (ESD), National Energy Efficiency Programme of the Republic of Croatia, Energy Sector Development Strategy of the Republic of Croatia (Official Gazette 130/09) and the Act on Energy End-Use Efficiency (Official Gazette 152/08, 55/12). The 2 nd NEEAP has a twofold purpose: 1. NEEAP is a comprehensive document for the of the energy efficiency policy in the following three-year period; 2. NEEAP is a report containing detailed descriptions of activities implemented in the previous period and assessments of achieved energy savings in comparison with the targets set in the 1 st NEEAP. Inclusion of the requirements for primary energy savings in the energy sector In relation to the 1 st NEEAP, this plan brings a significant change because, apart from final energy consumption, it focuses also on energy production, transmission and distribution sectors for the purpose of achieving primary energy savings. Although Croatia does not have a formally set primary energy savings target for 2020, its Strategy supports the European Union s 20% reduction target in primary energy consumption compared to baseline BAU forecasts. Primary energy consumption in Croatia is in constant decline from 2007, and in 2010 it amounted to 92.5% of the 2007 consumption (detailed information provided in Annex I). Energy undertakings recognised the need for continuous activities on improving energy efficiency of the existing installations, thus reducing the energy sector s own consumption. The most significant activities in the previous period were related to improving the efficiency of the development of domestic oil and natural gas fields, modernisation of refineries and reduction of losses in district heating systems (DHS), as well as optimising the operation of oil and natural gas transport systems and reducing losses in the electricity network. Plans made by energy undertakings show that in the period until the end of they plan to continue all those initiated activities as well as to increase the activities on restoring the existing production facilities, especially thermal power plants. In the next period Croatia is expecting a new investment cycle in the energy sector. Therefore, in accordance with the RC s Energy Sector Development Strategy (Official Gazette 30/09), it is required to regulate energy efficiency and environmental acceptability requirements that have to be satisfied by new energy facilities. It is extremely important to establish a system for monitoring the realised primary energy savings resulting from energy undertakings activities. To that end, the Ministry of Economy (ME) and the Croatian Energy Regulatory Agency (CERA), in line with their legal duties and powers, shall supervise these activities and provide an annual progress report. This NEEAP for the first time places strong emphasis on improving energy efficiency in the energy sector itself, despite the fact that there are no clearly set savings targets for Considering the potential for primary energy savings in energy production, transmission and distribution activities, it is necessary to support the of such activities, establish and regulate energy efficiency criteria for new facilities and to continuously monitor and report on the achieved primary energy savings that are a direct result of such activities. 21

22 Assessment of the of the 1 st NEEAP The 1 st NEEAP focused only on the final energy consumption and defined packages of measures for the sectors of households, services, industry and transport as well as a series of horizontal measures, as described in Table 2. Compared to the 1 st NEEAP, most of the measures were revised regulatory measures because of new requirements of EU directives, and other measures in order to more closely specify the activities required to achieve the full potential for energy savings. Table 2 Overview of measures from the 1 st NEEAP with quality assessment, achieved energy savings and the measure s status in the 2 nd NEEAP No. Title of the EE measure Implementation assessment Achieved energy savings in 2010 [PJ] Status in 2 nd NEEAP Households B.1 Building codes and enforcement Implemented as planned 1.52 Revised R.1 Information campaigns and network of EE info Centres Implemented as planned N/A Revised R.2 Appliance and equipment labelling and energy performance standards Implemented as planned N/A Revised E.1 Metering and informative billing Partially implemented, but of insufficient scope 0.01 Revised R.3 Financial support to natural persons for EEI Partially implemented, but of Investments insufficient scope Revised Services B.1 Building codes and enforcement Implemented as planned 0.64 Revised B.2 Energy audits of boilers and air-conditioning systems Not implemented; required legislation adopted only in 2011 / Revised R.1 Info campaigns Implemented as planned N/A Revised P.1 Project Systematic energy management in Continues as Implemented as planned 0.33 cities and counties planned P.2 Programme House in order Implemented as planned 0.21 Continues as planned C.1 Not implemented Systematic energy management and auditing in in the planned way; only through the commercial services sector EPEEF subsidies 0.01 Revised B.3 Certification of buildings Implemented as planned N/A Not defined P.3 Green public procurement Not implemented in the planned way; significant 0 Revised activities started in 2010 Industry I.1 Industrial Energy Efficiency Network (IEEN) Not implemented 0 Revised Cancelled and Not implemented I.2 Voluntary agreements with industry 0 integrated under I.5 I.3 Energy auditing scheme for industry Implemented only through EPEEF subsidies 0.03 Revised I.4 High-efficient cogeneration Implemented as planned; weak Continues as / impacts and negligible savings planned I.5 CO 2 emissions fee for large polluters Partially implemented; full allocation of funds for EE projects not realised 0.57 Revised Transport T.1 Introduction of European standards Partially implemented 0 Info campaign on energy efficient behaviour in Not implemented Measures were T.2 0 transport too general, and completely new Promotion of sustainable Not implemented measures were T.3 transport systems and efficient use of fuel in the planned way; only through 0.01 prepared on EPEEF subsidies their basis T.4 Promotion of cleaner vehicles Implemented, but not in desired

23 No. Title of the EE measure Implementation assessment Horizontal scope Achieved energy savings in 2010 [PJ] H.1 Energy auditing programmes Implemented as planned /* H.2 Loan programme for EE and RES projects Implemented as planned N/A H.3 Feed-in tariffs for RES and high-efficiency cogeneration Implemented as planned / Status in 2 nd NEEAP Integrated into other measures Continues as planned Continues as planned H.4 EPEEF financial support for EE; RES and clean transport Implemented as planned 0.78** Revised H.5 Strengthening energy efficiency in education Not implemented / Revised ***TOTAL ACHIEVED ENERGY SAVINGS IN 2010 [PJ] TARGET SET IN 1 st NEEAP [PJ] 6.59 NATIONAL INDICATIVE TARGET FOR 2016 [PJ] * Energy audits were carried out within measures P.1, P.2, C.1, I.3, and are co-financed by EPEEF (measure H.4). That is why savings are not shown separately for this measure. ** Savings from projects co-financed by EPEEF are shown under other measures, so they are not included in total savings. Exempted are only the savings achieved in public sector projects (in the amount of 0.08 PJ) that could not be included in individual sector measures, as well as public lighting projects, both those co-financed by EPEEF and those implemented as ESCO services (realised savings of 0.05 PJ). *** The listed savings are calculated by applying BU methods for those measures for which that was possible considering the available data. Total achieved energy savings in final consumption are shown in Chapter 1.3. Major progress was achieved in creating a favourable energy efficiency legislative and regulatory framework, especially in the area of defining stricter building standards and energy performance requirements for buildings, which resulted in the largest realised energy savings in the area of new buildings. The regulatory framework for implementing the Act on Energy End-Use Efficiency is completed by amendments of Energy efficiency nd use Act. In the Regulation on contracting and of energy services in the public sector (Official Gazette 69/2012), the Government of the Republic of Croatia defined the methods for contracting energy services, more detailed obligations of energy service providers and customers, more detailed contents of energy efficiency contracts and budgetary monitoring of energy services for public sector customers, which will endorse the development of the ESCO market. The Act on Amendments to the Act on Energy End-Use Efficiency (Official Gazette 55/12), adopted by the Croatian Parliament in its session on 4 May 2012, removed the unnecessary barriers for energy service providers and, by entry into force of these amendments, allowed that a natural or legal person, under the Energy Efficiency Contract, may provide services or other energy efficiency improvement measures. The most extensively implemented activities were those focused on capacity building for the of energy efficiency measures in the public sector through the project Systematic Energy Management in Cities and Counties and the programme House in Order. An extremely large sensibility for the energy efficiency issues was exhibited in the public sector; a large number of state, local and regional administration bodies introduced a system for energy consumption monitoring and control via the Energy Management Information System (EMIS) and established an organisational structure for energy management. These organisational activities achieved average savings of around 10% compared to the energy consumption in It should be noted that the of these activities requires a large number of trained persons who will communicate daily with the public sector employees and educate and guide them toward more efficient use of energy. These activities must be implemented continually and systematically and transferred to 23

24 and coordination body Center and as appropriate to other initutions on local and national level. Great accomplishments were also achieved by the three-year information campaign for general public which significantly raised the awareness of citizens concerning the significance and benefits of efficient energy consumption. In addition to the implemented media campaign, information or education of citizens was realised through the network of EE info centres, free info-phone, internet pages workshops and lectures and numerous publications that were created during the campaign and are available online. Measures in the transport sector were implemented through the Programme to reduce the negative impact of transport on the environment First measure: Reduction of harmful gas emissions from road vehicles in category N2, N3 and M3 ( ), or the so called EURO 5 programmes, under which 1,155 of old trucks and buses meeting EURO 0, 1, 2 and 3 standards were replaced with new ones that meet the EURO 5 standard. The intensity of implementing activities in the commercial services and industry sectors was unsatisfactory in the previous period. Regarding horizontal activities, in the long term the most significant one is the integration of issues related to energy, energy sector, environmental protection and climate change into sectoral strategic and action plans, operational programmes and all economic activities, particularly in formal and informal education programmes. While civil society organisations are achieving significant progress in raising the public awareness of the listed issues in the field of informal education, their integration into education programmes on all levels has failed. Therefore, the 2 nd NEEAP foresees the establishment of strong cooperation between ME, MCPP, Center, EIHP, EPEEF and the Ministry of Science, Education and Sports (MSES) and educational institutions on all levels in order to start realising this objective, which is also defined in the Strategy for Sustainable Development of the Republic of Croatia. Problems related to the of the 1 st NEEAP Biggest problems in Croatia related to implementing the energy efficiency policy were: 1. insufficient administrative capacities at state and regional/local level; 2. weak cooperation of competent bodies and coordination of activities; 3. distinct lack of integration and understanding of energy efficiency in areas partly under the competence of other ministries. The preconditions for significant improvement of institutional capacities for implementing the energy efficiency policy in the Republic of Croatia were created by establishing the Directorate for energy efficiency in construction, strategic planning and international cooperation within the MCPP and Centre for Monitoring Business Activities in the Energy Sector and Investments. Detailed status analysis is provided in Chapter 4. The second NEEAP plans the start and of a series of complex programmes which will not be able to achieve their required targets without an adequate institution that will coordinate and verify targets, and consequently these tasks are entrusted to Centre. Problems related to the preparation of the 2 nd NEEAP The preparation of the 2 nd NEEAP has once again pointed out the fact that of the energy efficiency policy may not be precisely evaluated without an established system for monitoring all activities implemented both at state and local/regional level. Such systematic monitoring in Croatia was non-existent in the previous period, so data collection and evaluation of the achieved energy savings were extremely difficult 24

25 and time-consuming. Furthermore, the monitoring of and evaluation of the achieved savings must be a continuous and methodical task; therefore, it is necessary to start the preparation of the next NEEAP immediately after the adoption of this one, while evaluations and revisions should be performed every twelve months. The designing of an information system for the monitoring of all energy efficiency activities and evaluation of energy savings is a priority that has to be urgently realised. The work on the 2 nd NEEAP confirmed that without such a platform it is impossible to consider, report on and evaluate energy savings from all implemented activities. Key preconditions for successful of the 2 nd NEEAP The key preconditions for successful of the 2 nd NEEAP: 1. constant improvement of the legislative and regulatory framework for energy efficiency; 2. secured and constant financial support for implementing the measures defined in NEEAP; 3. strong administrative capacities focused on the of NEEAP; 4. systematic and continuous monitoring of and evaluation of the achieved energy savings. The development of the legislative and regulatory framework in the next period must focus on prescribing stricter energy performance requirements for buildings, preparing the national plan for increasing the number of nearly zero energy buildings and on developing the energy services market. The financial framework for implementing NEEAP in Croatia is based on the Environmental Protection and Energy Efficiency Fund (EPEEF), which provides co-financing of energy efficiency measures, programmes and projects. It is extremely important that EPEEF harmonises its work programme and financial plan with this NEEAP by the end of 2012 and provides financial support for its from its own funds. In this way, strategic programmes and projects will have secure access to continuous financing. The previous EPEEF s actions were characterised by a distinct disproportion between allocated financial incentives for environmental protection projects and for energy efficiency projects, which will be changed by allocating funds for NEEAP. The assignment of duties for implementing the measures defined in this NEEAP is based on the following criteria: an institution should be choosen between existing bodies, should assure sufficient and appropriate capacities for (transfering from existing organizations and institutions: UNDP ), should securefinancing and must keep separate accounting and monitoring of activities related to implementing the energy efficiency policy. The implementing authority must have a mandate for coordinating all activities as well as an obligation of monitoring and verifying the achieved energy savings. This authority must establish a system for continuous energy savings monitoring and evaluation from all energy efficiency activities defined in this NEEAP and implemented in the Republic of Croatia and must report on achievements every twelve months. With these NEEAP all of these activities are assigned to Centre. The supervision of activities are under the competence of ME and MCPP that have to jointly supervise the tasks related to ESD, EPBD and all other EU directives and energy efficiency requirements. Energy efficiency calls for an integrated approach, coordination and cooperation, because fragmented and individual activities will not accomplish the desired goals. The designing of an information system for monitoring all energy efficiency activities and energy savings evaluation is a priority that has to be realised urgently. The work on the 2 nd NEEAP confirmed that without such a platform it is impossible to consider, report on or evaluate energy savings from all implemented activities. The evaluation of savings should be as much as possible based on methods using BU (bottom-up) calculations (also defined in the ESD) because they indicate the effectiveness of a particular measure. Key measures in the 2 nd NEEAP for achieving the targets in 2016 and

26 Table 2 presents energy savings that could be allocated to each individual energy efficiency measure on the basis of available data by applying BU methods for evaluating energy savings. It is visible that around 52% of the savings target in 2010 may be allocated to individual measures. This is a result of two facts: 1. particular measures were not implemented in the planned way, 2. data on the of measures required for savings evaluation by applying BU methods were insufficient and/or incomplete. When observing the contribution of individual measures (presented in Chapter 3.3.2), it should be noted that 2.16 PJ or about 63% of proven energy savings are a result of new building regulations and stricter energy performance requirements for buildings as well as the construction of new buildings in accordance with these requirements. Keeping this in mind, as well as the fact that buildings in Croatia spend 40% of final energy consumption, the key measures defined in this NEEAP focus on: 1. further development of legislation, in terms of prescribing stricter energy performance requirements for buildings, preparing the national plan for increasing the number of nearly zero energy buildings (measures B.1 and B.4 in Chapter 3.3.2), and 2. support in the renovation of existing buildings, particularly of residential buildings, public nonresidential buildings and non-residential buildings in the commercial services sector and adopting measures for that purpose (measures R.5, P.5 and C.5 in Chapter 3.3.2) Analyses show that the of these measures in the manner prescribed in this NEEAP may by 2016 achieve savings of roughly 10.4 PJ or approximately 53% of the national target for 2016, which is PJ. Only the renovation of existing buildings may achieve savings of around 9.6 PJ or almost 50% of the national target. However, it must be pointed out that such targets are extremely ambitious, and their realisation will largely depend on the availability of human resources for management and coordination as well as of financial resources, which are particularly extensive. The 2 nd NEEAP places focus on supporting the renovation of existing buildings that achieve higher energy performance than those prescribed by the current regulations and on achieving the energy standard of nearly zero energy buildings. The set targets are extremely ambitious and unachievable without a systematic and continuous approach to and without securing financing mechanisms. These targets were set on the basis of the European Commission s proposal for a new Directive on energy efficiency [1] and assume that 3% of buildings are renovated each year, which amounts to: - approximately 3.7 million m 2 of residential buildings per year, - approximately 285,000 m 2 of public non-residential buildings* per year, - approximately 0.98 million m 2 of non-residential buildings in the commercial services sector per year. The of this measure requires large investments of roughly 8 billion HRK per year, and offers an extremely significant potential not only for energy savings but also for employment and mobilisation of the entire construction industry in Croatia. It is necessary to elaborate and adopt the National Building Renovation Plan in order to start the of this Programme within the period of this National Plan i.e. the end of The achievement of this ambitious target should certainly be strived for, but it is sure that its realisation will largely depend on the successfulness of finding appropriate financing mechanisms. However, it should be stressed that without implementing the measures of renovation of existing buildings Croatia will not achieve its energy savings targets in Founding from the Structural Funds will be a 1 Proposal for a Directive on energy efficiency and repealing Directives 2004/8/EC and 2006/32/EC [COM(2011)370 22/06/2011] 26

27 possibility of co-financing of the ambitious measures for reconstruction of buildings from Activities, types of investments and potential customers will be known once the Operational programs for the period from are made. *Within the meaning of the 2 nd NEEAP, public non-residential buildings mean any buildings owned by budgetary and extra-budgetary beneficiaries of state budget, budgetary and extra-budgetary beneficiaries of local and regional self-government units, companies and legal persons in which the Republic of Croatia or a local or regional self-government unit have a decisive influence on management. Other public non-residential buildings shall be treated as buildings in the commercial services sector. The other sector that offers great savings potentials is transport, which participates in the total final energy consumption with about 30%. The of measures focused on promoting the use of public transport in passenger transport and of railway in freight transport is required in this sector. This in turn requires strong cooperation between ME, MCPP and the Ministry of Maritime Affairs, Transport and Infrastructure (MMTC) as well as a strong engagement of local and regional self-government units (LRSGU). The transport sector spends around 1/3 of the total final energy consumption in Croatia so in the next period the of measures defined in this NEEAP for the transport sector must be one of the priorities. 1.2 National significance of energy efficiency The significance of energy efficiency as a national interest is stated in the Energy Act (Official Gazette 608/01, 177/04, 76/07, 152/08, 127/10) and the Strategy for Sustainable Development of the Republic of Croatia (Official Gazette 130/09). A detailed description of strategies giving significance to energy efficiency is provided in Chapters 2.2 and 3.2. Bearing in mind the fact that Croatia imports over 50% of its energy needs (see more detail in Annex I), energy efficiency becomes a key mechanism for improving the security of energy supply. It is important to point out that the Strategy views energy efficiency as a new energy source which places it in equal position with other energy options and gives it equal importance. Moreover, Croatia is a signatory of the Kyoto Protocol and consequently it assumed the obligation to reduce greenhouse gas emissions by 5% in the period , compared to the base year In that sense, energy efficiency is also recognised as a mechanism for climate change mitigation. However, what was neglected until now was to recognise the energy efficiency potentials for economic recovery and development. Namely, Croatia is strongly affected by the economic crisis and the RC Government in 2010 adopted the Economic Recovery Programme (ERP). Although the energy sector was selected as one of the key sectors for future investments for the purpose of economic recovery, preference was given to large infrastructural projects while energy efficiency was not recognised as a potential driver of economic growth and development and as a result was not given any greater significance. Energy efficiency, especially in the part related to the renovation of existing buildings, offers possibilities for creating new employment, engaging small and medium-sized companies and domestic industry and revitalizing the construction sector. The UNDP analyses indicate that if energy efficiency measures would be implemented in 20% of all residential units in Croatia in the next 10 years, this would annually create around 7,000 new jobs directly related to the of such projects (construction, engineering, consulting) and at least the same number of jobs indirectly related to the of such projects (production of equipment and materials, trade). In an economy with over 280,000 unemployed workers, this potential simply must be used. 27

28 1.3 Overview of energy savings targets and their achievement With the Strategy and NEEAP, Croatia set a target to reduce final energy consumption in 2016 by PJ in accordance with the requirements of Directive 2006/32/EC on energy efficiency and energy services (ESD), and in 2020 the reduction should be PJ compared to the baseline forecast. The targets for primary energy savings are not formally defined, while the targets for increasing the number of nearly zero energy buildings will be set within the National plan for increasing the number of nearly zero energy buildings. The target set in the 1 st NEEAP and its sector allocation are presented in Table 3. The target for 2016 was not revised in the 2 nd NEEAP. Table 3 National indicative final energy savings target and sector allocation of the target National indicative energy savings target in 2016 [PJ] National indicative energy savings target in 2010 [PJ] 6.59 Sector allocation of the target Sector target in 2016 [PJ] Share in the total target for 2016 Housing % Services Industry (non-ets) Transport % % % Total: % Table 3 shows only the savings calculated by applying BU methods for those measures for which that was possible considering the available data. The actually realised energy savings in 2010 were calculated by using TD (top-down) indicators according to recommendations of the European Commission (EC). The estimates of savings in 2016 and 2020 were also obtained by using TD indicators, but it should be said that the same was carried out by applying the national methodology based on MAED 2 model, which served to additionally verify the correctness of the calculations. The results obtained by TD indicators and modelling corresponded well, so it was decided that NEEAP will show the savings calculated by using TD indicators as relevant estimated energy savings for the next period. The results are shown in Table 4, while the achieved and estimated final energy savings per sector are shown in Table 5. A detailed presentation of the achieved savings and explanation of the calculation methodology are provided in Chapters and It should be emphasized that it is principally required to look at the savings achieved from measures, because those are exactly such additional savings that are realised by a stimulating energy efficiency policy. Table 4 Overview of final energy consumption savings targets and achievements National target [PJ] Achieved/estimated total energy savings [PJ] Achieved/expected energy savings from measures [PJ] MAED - Model for Analysis of Energy Demand (developed by the International Atomic Energy Agency (IAEA)). 28

29 Table 5 Overview of final energy consumption savings targets and achievements per sector Achieved energy savings [PJ] 2010 Expected energy savings [PJ] 2016 Expected energy savings [PJ] 2020 Total Measures Total Measures Total Measures Residential Tertiary Industry Transport TOTAL It may be established that the national target for 2010 was practically achieved. The deviation from the target is not substantial, and may also be caused by methodological uncertainty. Actually, applying the TD approach in the service sector produced smaller savings than the BU approach. However, activities in the public sector were strongly implemented in the previous period and savings were certainly achieved. Smaller savings obtained by the TD method may be a result of influence of the commercial sector which lacked more specific activities in the previous period. If we combine BU (only the service sector) and TD (for other sectors) methods, savings would amount to 7.34 PJ and thus it could be established that the target was fully achieved, even surpassed. Regardless of methodological issues in calculating savings, the fact remains that the results of of the listed measures are unsatisfactory. The impacts of reduced energy consumption due to economic crisis, especially in industry and transport, technological progress and market transformation toward offering more efficient products as well as energy efficiency improvement activities implemented by stakeholders based on their own interests and without state assistance, especially in the business sector (industry and commercial services) have contributed to the total reduction in final energy consumption that was caught by TD indicators. These impacts will definitely be present in the future and will continue to have a significant contribution in the future reduction of energy consumption and achievement of the 2016 and 2020 targets. Analyses indicate that the targets will be achieved. That being said, it should be noted that the measures defined in this NEEAP will participate in the future realisation of the targets with around 94% in In conclusion, we should once again point out that: Without systematic and timely of the measures defined in this NEEAP, Croatia will not achieve its final energy savings targets by

30 Indek s Second National Energy Efficiency Action Plan of the Republic of Croatia until the end of PRIMARY ENERGY SAVINGS 2.1 Primary energy consumption in Croatia Primary energy consumption in Croatia in 2010 was approximately 361 PJ [3]. Table 6 shows the growth of the gross domestic product, number of inhabitants, total energy consumption, energy intensity and total energy consumption per capita. Additionally, Figure 1 shows movements of indexes for the listed figures in the period It may be observed that the number of inhabitants in Croatia is decreasing at a very slow pace, while the movements of other figures were more intense. Compared to 2007, GDP in 2009 grew by 5% or in 2010 by 4.8%, but since 2008 GDP is slowly declining every year. In those same years, the energy intensity was reduced by 13.8% and 13.6% respectively, while specific energy consumption per capita was reduced by 6.8% and 7.8% respectively, compared to Table 6 GDP, population, energy intensity and total consumption per capita GDP [mil. HRK] Population [000] Total energy consumption [PJ] Energy intensity [PJ/mil. HRK] Energy consumption per capita [MJ/per c.] *revised data by CBS, source: HNB * 204, , , , , , , , GDP, population, energy intensity, energy consumption per capita GDP Population Total energy consumption Energy intensity Energy consumption per capita * Figure 1 GDP, population, energy intensity and total consumption per capita index movements Although the energy consumption intensity recorded a decline compared to 2007, comparison with the EU-27 energy intensity indicates significant potentials for improvement. In 2009 in Croatia for realisation of one thousand USD 2005 determined by purchase power parity (PPP), 6.8% more energy was used in comparison 3 The consumption in 2009 was around 365 PJ, while data for 2010 was estimated since there is no official energy balance for Croatia in 2010 yet. 30

31 with the European average (EU 27) 4. Annex I Basic information on energy consumption in Croatia provides detailed data on the total energy consumption, transportation losses and energy allocation, own energy consumption in the energy sector and energy transformations, which show movements and achievements compared to the reference year 2007, thus supplementing the information given in this Chapter. 2.2 Overview of primary energy savings strategies and targets The list of the most important strategies for the reduction of primary energy consumption in the Republic of Croatia is provided in Table 7. Table 7 List of strategies for primary energy consumption reduction Title of the strategy Objectives Modernisation of refineries Targeted sectors Production of oil derivatives Legal status / publication Comparison with EU objectives / measures 5 / Efficient new power plants New electricity generation installations must be based on BATs (Best Available Technology) 6 Energy Sector Development Strategy of the Republic of Croatia Subsidising cogeneration (300 MW by 2020) Reduction of losses in the electricity network; supporting distributed generation Energy efficiency improvement of existing DHS by modernisation of boilers and revitalisation of hot water network Subsidising cogeneration, use of RES and heat pumps for heat production Electricity generation, transmission and distribution Heat production, distribution and supply Adopted by the Croatian Parliament / Official Gazette 130/09 Increased use of high efficiency cogeneration in electricity generation and in DHS 7 Requirements for regulators to give priority to energy efficiency in their decision-making, supervision of the work of gas and electricity network operators, adoption of tariff systems and network rules 8 Use of waste heat resulting from electricity generation and industrial processes for heating and cooling Increased use of high efficiency cogeneration in electricity generation and in DHS 4 Source: Annual energy report Energy in Croatia, MELE, Comparison made with objectives/measures defined in the Energy Efficiency Plan 2011 : 6 Electricity Market Act (Official Gazette 17/04, 76/07, 152/08, 14/11) prescribes energy efficiency as one of the criteria for granting an approval for the construction of production facilities. 7 Use of cogeneration in Croatia is subsidised under the Energy Act and its implementing regulations guaranteeing the electricity purchase price (feed-in tariff) from high-efficiency cogeneration plants. 8 In Croatia, these requirements are defined by regulations governing the energy sector and energy activities. The Croatian Energy Regulatory Agency (HERA), pursuant to Article 9 of the Act on the Regulation of Energy Activities (Official Gazette 177/04 and 76/07), publishes notices and data on energy efficiency and energy use. The Gas Market Act (Official Gazette 40/07, 152/08, 83/09 and 114/11) prescribes that a distribution system operator must prepare and deliver to HERA an annual report on reliability, security and efficiency of the system, execution of the system development plan, quality of meeting customers needs, maintenance and other duties and the use of rights pursuant to that Act. Additionally, the Electricity Market Act prescribes that a distribution system operator, with HERA s prior approval, must pass a plan for development and construction of the distribution system for the next three years. When planning development, the measures for energy efficiency, consumption management and distributed generation must be taken into consideration. 31

32 Title of the strategy Objectives Targeted sectors Legal status / publication Comparison with EU objectives / measures 5 National Energy Efficiency Programme for the period Modernisation of refineries Efficient new power plants Supporting cogeneration Reduction of losses to % in 2020 Production of oil derivatives Electricity generation Electricity distribution Adopted by the RC Government in April 2010 / published on the ME s web pages / New electricity generation installations must be based on BATs Increased use of high efficiency cogeneration in electricity generation and in DHS Requirements for regulators to give priority to energy efficiency in their decision-making, supervision of the work of gas and electricity network operators, adoption of tariff systems and network rules Strategy for Sustainable Development of the Republic of Croatia Energy intensity reduction of 1-2% per year until 2015 Reduction of primary energy consumption of 20% by 2012* Overall primary energy consumption Adopted by the Croatian Parliament / Official Gazette 30/09 20% reduction of primary energy consumption compared to baseline forecasts until * The reference year or scenario compared to which the reduction of primary energy consumption should be monitored was not defined, so this objective may not be considered relevant i.e. its monitoring is not possible. The contents of the listed strategies are described below. Under the Energy Act (Official Gazette 68/01, 177/04, 76/07, 152/08 and 127/10), the principal act which outlines the energy policy and plans the energy development of the Republic of Croatia is the Energy Sector Development Strategy (hereinafter: the Energy Strategy). The new Energy Strategy was adopted by the Croatian Parliament in 2009 (Official Gazette 130/09). The Strategy defines that the Republic of Croatia will support energy efficiency improvements in all segments of the energy sector, especially in final consumption. Energy efficiency is treated as an additional energy source and as a basic permanent principle in line with which the energy system will be operated and developed. The Strategy sets qualitative energy efficiency improvement targets in energy production, transmission and distribution: in the production of oil, oil derivatives and natural gas sector: modernisation of refineries and use of improved technologies for development of domestic oil fields; in the electricity generation and transmission/distribution sector: use of advanced coal-fired technologies, high-efficiency gas power plants and cogeneration plants (the construction of cogeneration units with total capacity of at least 300 MW is planned by 2020), reduction of losses in the electricity network and locally favourable construction and incentives for distributed production; in the heat production and distribution sector: improving the efficiency of district heating systems (DHS), reduction of losses in the heat distribution network and use of cogeneration, renewable energy sources and heat pumps. In this part significant attention is given to energy planning of local and regional self-government units which are competent for DHS, and of special importance is the 9 European Commission: Europe 2020 Strategy for smart, sustainable and inclusive growth, COM(2010) 2020 final 32

33 guideline stating that residential buildings larger than 1,000 m 2 should cover their heating and domestic hot water needs from their own house boilers or from DHS. The Strategy does not set quantitative targets for primary energy savings by 2020; however, it communicates the acceptance of the common European energy policy and alignment of own energy targets with that policy. In other words, Croatia supports the non-binding EU target of 20% cut in energy assumption by 2020 compared to the baseline (business-as-usual) projected primary energy consumption levels. Additionally, under the Act on Energy End-Use Efficiency (Official Gazette 152/08 and 55/12), the Government of the Republic of Croatia adopted the National Energy Efficiency Programme for the period , which serves as the basis for preparing three-year national energy efficiency plans. The Programme is fully aligned with the Strategy and further provides the following statements: Croatia subsidies the production of electricity and heat from renewable energy sources and cogeneration; when constructing new power plants, their efficiency must be taken into account; oil refineries in Croatia must be modernised (Croatian refineries have specific consumption of 5.1 GJ/t, while the EU s average consumption is 3.3 GJ/t) losses in the transmissionof electricity have been significantly reduced by the reconnection of two synchronous UCTE zones in 2004 (prior to the reconnection they were 3-3.7% of total electricity production, and after the reconnection they reduced to 2.8-3%, and are currently at the level of about 2%) this level of losses is such that no significant improvements would be possible, except by optimising energy flows in the network; however, this depends on conditions in the regional market and international energy exchange; technical losses in the distribution power network should by 2020 be reduced by 1-2% and in 2020 should amount to %. The Strategy for Sustainable Development of the Republic of Croatia (Official Gazette 30/09) also recognises energy efficiency as one of the important mechanisms for achieving the objectives of sustainable development. As one of the key challenges for achieving sustainable development of Croatia, this Strategy lists the ensuring of energy independence and increasing the efficiency of energy use. This Strategy further sets the objective to decrease the energy intensity per unit of GDP by 2015 in the range of 1-2% per year. The same Strategy states the need to invest in scientific research and application of cleaner and ecologically more efficient technologies with reduced use of natural resources, reducing emissions and waste quantities as well as health and safety risks. Moreover, this Strategy states that it is required to use regulations to define the requirements of energy efficiency and environmental acceptability that must be met by energy facilities, new industrial installations and certain production, service and trade companies. And finally, the Strategy states that by 2012 it is required to reduce primary energy consumption by 20%, but fails to specify the scenario or the reference year. 2.3 Primary energy savings measures Measures for primary energy savings focus on the existing facilities as well as on the selection of new energy facilities. In view of the market orientation of the energy sector and its integration into the single European energy market, it is to be expected that decisions of investors concerning the construction of new energy facilities will be guided by market principles and that economically most advantageous solutions will be selected. Energy efficiency and environmental protection are certainly significant factors in making such decisions. It is worth pointing out that in Croatia the construction of energy facilities (oil and natural gas production and processing plants, international and main pipelines for the transmission of gas, oil and oil derivatives, nuclear plants and associated facilities, power plants and other combustion installations with capacity over 30 MW) are subject to preparing an environmental impact assessment study in which all of these factors are evaluated and the study is a precondition for obtaining permits for construction of these facilities. 33

34 Concerning the existing installations, plans of energy undertakings and reports of the Croatian Energy Regulatory Agency (HERA) collected for the purpose of preparing this NEEAP indicate that significant efforts are invested in improving energy efficiency and reducing the losses in energy transformation, transmission and distribution. The activities that energy undertakings implemented for that purpose in the period and those planned to be implemented in the period until the end of are presented further in this document, according to specific parts of the energy sector, while the summary of these activities is presented in Table 8. Table 8 List of implemented and planned activities of energy undertakings for improving energy efficiency and reducing losses in the energy sector No Title of the EEI measure Energy efficiency improvements of the existing thermal power plants within HEP Group Energy efficiency improvements of the existing hydro power plants within HEP Group Reduction of own consumption of power plants in HEP Group Reduction of losses in the electricity transmission network Reduction of losses in the electricity distribution network Revitalisation of heating systems and hot water networks 7. Supporting cogeneration Improving the efficiency of development of domestic oil and natural gas fields Modernisation of oil refineries in Sisak and Rijeka Reduction of losses in the oil pipeline transport system JANAF projects Reduction of losses in the natural gas transport system replacement of boilers; reduction of gas pre-heating temperature Reduction of losses in the natural gas distribution system reconstruction of worn-out pipelines Targeted primary energy consumption / sector Electricity generation Electricity generation Electricity generation Implementation period (according to business plans) (according to business plans) (according to business plans) Achieved primary energy savings in the period / other impacts and indicators N/A N/A N/A Electricity transmission N/A Electricity distribution Heat production and distribution Electricity and heat generation Production of crude oil and natural gas Production of oil derivatives continuous Pipeline transport of oil Natural gas transport Approx. 4% reduction in total losses in the period compared to losses in GWh (only from installations of HEP- Toplinarstvo d.o.o.) Calculation provided in Chapter 3 Estimated future primary energy savings in the period / other impacts and indicators 2,233 GWh/year (200,000 tonnes of fuel oil per year) 150 GWh/year (additional production) 1.45 GWh/year Adoption and of the Efficient Electricity Use Programme Approx. 5% reduction in total losses in the period compared to losses in GWh (only from installations of HEP- Toplinarstvo d.o.o.) 230 MW in TE Sisak by 2012; 300 MW by GWh/year GWh/year GWh/year 1,448 GWh/year Process optimisation, positive impacts on EE, more efficient electric motor drives GWh/year GWh/year (only by replacement of electric motor drives) GWh/year Natural gas distribution N/A N/A 34

35 More detailed information on energy consumption movements and realised losses in energy conversion, transmission and distribution by specific part of the energy sector are provided in Annex I. 35

36 2.3.1 Energy efficiency measures in electricity generation, transmission and distribution Electricity generation About 95% of installed capacities for electricity generation in Croatia are owned by HEP d.d., the state energy company. Therefore, the description of measures implemented thus far and future activities will focus precisely on those power plants. Investments into revitalization of the existing power plants in the previous three-year period have for the most part been suspended due to the economic crisis and the decision to suspend all new investments except those required for the safety of facilities, protection of personnel health and of the environment. For that reason, no significant energy efficiency improvements were achieved in the existing power plants in the previous period. In the next three-year period HEP Proizvodnja d.o.o. (daughter company within HEP Group) plans to implement activities aimed at: 1. improving the efficiency of existing power plants, 2. reducing own energy consumption in power plants. In the total of 7 thermal power plants owned by HEP Group, activities that will significantly reduce the consumption of fuel oil from recently planned ,000 tonnes to 150,000 tonnes per year are planned. This will be achieved by renovation projects such as replacement of steam pre-heater and inter-heater sets, replacement of burners and reconstruction of boilers. In addition to reducing the need for fuel oil, some power plants also plan to substitute a part of fuel oil consumption with natural gas. The reduction of own electricity consumption in thermal power plants in the expected amount of up to 1,000 MWh/year shall be achieved by projects such as replacement and revitalisation of compressor stations, installation of high-efficiency lighting, regulation and management of internal/secondary consumption, installation of additional thermal insulation on buildings. It should be noted that a new cogeneration block in TE Sisak with capacity of 230 MWe/50 MWt powered by natural gas is under construction and it will have a significantly larger level of efficient operation (efficiency) than the existing ones on the site of TE Sisak, whose current efficiency is 34%. The measures carried out in the existing hydro power plants generally include installations of biological minimum generator sets and extensive reconstructions of generator and turbine facilities. According to the plans of HEP Group, these activities will realise additional electricity generation of approximately 150,000 MWh/year. Activities such as replacement of transformers and other electric equipment and introduction of added automatics and regulation at low-voltage level may result in the reduction of own electricity consumption of about 450 MWh/year. Electricity transmission The electricity transmission and distribution networks are owned by HEP d.d. The transmission network is operated by HEP Operator prijenosnog sustava (OPS) d.o.o. The largest (and immeasurable) impact on the amount of losses in the Croatian transmission network is produced by energy flows resulting from the interaction of electricity generation undertakings, distribution of electricity consumption, circuit status of the transmission network elements and transactions on the electricity market in the relevant wider surroundings (not only neighbouring countries). Therefore, typical energy efficiency measures do not have a direct impact on the amount of losses in the Croatian transmission network. Moreover, losses in the Croatian transmission network are about 2.1% which is at the level of losses in transmission networks of other European transmission system operators. HEP-OPS plans to prepare the Electricity Efficiency Programme and adopt the Programme Implementation Plan for the period , which will in more detail explore the possibilities for further reduction of losses in the transmission network. 36

37 Electricity distribution In the period , HEP-Operator distribucijskog sustava (OPS) d.o.o. implemented a series of activities for the purpose of reducing losses, of which the important ones are: gradual transition from installation of induction meters to electronic multifunction meters, regular meter attestation, control of unauthorised consumption, control of connections and metering points, remote reading and control of billing metering points, regulation of double-tariff metering, reduction of reactive energy in the network (installation of appropriate metering devices, billing of inductive and capacitive reactive energy). Training of employees was carried out relating to direct work on the control and regulation of metering points in order to increase the quality of work and reduce losses. It should be mentioned that losses include technical (designed) losses, but not technical losses caused by the deviation of operational characteristics and operational network points from the designed values as well as by unauthorised electricity consumption. It is estimated that non-technical losses amount to approximately 1/3 of total losses in the distribution network. The systematic of the listed activities resulted in a loss reduction trend as presented in Table 9 and in Figure 2 [10]. Table 9 Realised losses in the electricity distribution network in the period and forecast until Losses [GWh] 1,637 1,570 1,365 1,635 1,223 1,508 1,424 1,370 1,359 1, Losses [%] % Realised losses in the electricity distribution network in the period and forecast until % 10, ,5 9,0 8,5 8,0 7,5 7,0 Realised losses in distribution and loss variation trend (according to methodology) % Figure 2 Losses in the electricity distribution network in the period and forecast until Source: HEP-OPS d.o.o. 37

38 The and improvement of the current activities which showed positive results related to the reduction of losses and improvement of overall business operations will be continued in 2011, 2012 and 2013: control of billing metering points and connections, calibration of metering devices, control of potential unauthorised consumption, installation of electronic meters with unauthorised consumption detection functions, remote reading and control of billing metering points, regulation of double-tariff metering, reduction of reactive energy in the network (installation of compensations, installation of appropriate metering devices, billing of inductive and capacitive reactive energy), provision of metering data to customers for optimisation of their own energy consumption. The last activity is especially important for achieving the ESD objectives, and is described in more detail in Chapter 3 together with all other activities of energy undertakings focused on electricity end-users and increasing the electricity consumption efficiency Energy efficiency measures in heat production and distribution in district heating systems Around 74% of heat production in Croatia is owned by HEP Group, i.e. by HEP-Toplinarstvo d.o.o. This company at the same time supplies around 84% of all users connected to district heating systems (DHS) in Croatia. Therefore it is especially important to describe the activities implemented by HEP Toplinarstvo in the previous period as well as those planned to be implemented in the next three-year period. Regarding heat production in the period , the activities of gasification of existing plants were carried out (replacement of fuel oil with natural gas) together with simultaneous replacement of old equipment with new, more energy efficient equipment. In addition, transfers from building-unit boiler plants to DHS were carried out. The most important and largest project that was implemented in the listed period with the purpose of reducing losses in heat distribution was the project of refurbishment of main hot water pipelines in Zagreb and Osijek financed by a World Bank loan and partially from own funds of HEP-Toplinarstvo d.o.o. In Zagreb, 20 km of hot water route were replaced (which makes the total of 40 km of thermally insulated steel pipes), while 7.2 km of hot water route (14.4 km of pipes) were replaced in Osijek. In addition to the implemented project Hot Water Network Reconstruction Project, HEP-Toplinarstvo d.o.o. is also carrying out preventive and corrective replacement of deteriorated main and branch hot water systems, during which 1-3 km of hot water pipes of different dimensions are replaced annually. The criterion for selecting the point of replacement is the age of the hot water system and the number of malfunctions in the previous period. Additionally, improvements on the insulation of the existing steam network are regularly implemented. In the period the of the abovementioned activities created primary energy savings of approximately 87,000 MWh. Most of the projects started in the period will be continued in the period , and these are the following: Modernisation of district heating systems (DHS) in Zagreb and Osijek, which will increase the efficiency of heat distribution i.e., reduce losses in heat distribution; Technical-economic optimisation of the district heating system of the City of Zagreb. By installing equipment and using software tools, the entire system will be managed in real time which will enable the reduction of initial temperatures of the hot water systems thus directly reducing losses in heat distribution; 38

39 Continuing the reconstruction of regulation systems that will reduce return temperatures of the hot water system, which will in turn reduce losses in heat distribution; Construction of the condensate return system from all main steam heating stations in the city of Sisak; Terminating heat production in own facilities in the city of Sisak after the construction of new gas cogeneration plant in TE Sisak; Replacement of the hot water network with steam network in the settlement Caprag in Sisak; Completion of gasification (conversion from light and extra light fuel oil to natural gas) and replacement of boilers, burners and pumps with a new generation of equipment with increased efficiency level in the boiler plant Vidrideva 1 in Velika Gorica (20 MW); Gasification of the boiler plant Slavonska 6 in Samobor with capacity of 11.8 MW along with construction of new burners; Gasification of the boiler plant Gajeva 6 in Bregana with capacity of 1.5 MW and construction of the connecting hot water pipeline to the boiler plant Basaričekova 9 (capacity 1.0 MW), which will be shut down after that. By implementing the activities planned for the period primary energy consumption will be reduced in the total amount of approximately 167,000 MWh. In 2013, primary energy savings will be approximately 66,000 MWh and further growth of savings is expected to be achieved in years after that due to continuous of the planned activities. Other energy undertakings performing the activities of heat production, distribution and supply in the Republic of Croatia have also implemented and plan to implement energy efficiency improvement measures that may be classified into one of the following categories: replacement of deteriorated boiler plants together with conversion from liquid fuel to natural gas improvement of regulation in boiler plants and heating stations use of alternative systems (particularly RES) reconstruction of hot water/steam systems Considering the extensive losses that are present in heat production, distribution and supply, ranging from 13% to even over 30% (according to HERA), in the next period energy undertakings will be obliged to implement the abovementioned measures in line with their business plans, and impacts in terms of reduced losses and energy savings shall be monitored by HERA. It is worth pointing out that energy undertakings authorised for heat distribution and supply shall also implement activities for improving heat consumption efficiency of end-users, but those measures are described in Chapter 3 in view of their importance for meeting the ESD requirements Promotion of cogeneration of electricity and heat In line with the requirements of Directive 2004/8/EC on the promotion of cogeneration based on a useful heat demand in the internal energy market, Croatia established the regulatory framework for promoting electricity production from cogeneration. That framework includes the following regulations: Ordinance on the use of renewable energy sources and cogeneration (Official Gazette 88/12) Ordinance on acquiring the status of eligible electricity producer (Official Gazette 88/12) Tariff system for the production of electricity from renewable energy sources and cogeneration (Official Gazette 63/12) Regulation on the minimum share of electricity produced from renewable energy sources and cogeneration whose production is incentivised (Official Gazette 33/07, 08/11) 39

40 Regulation on incentive fees for promoting electricity production from renewable energy sources and cogeneration (Official Gazette 33/07, 133/07, 155/08, 155/09, 08/11) Producers of electricity from high-efficiency cogeneration have the right to acquire the status of eligible producer that guarantees the incentive price of electricity (feed-in tariff). From the adoption of that Ordinance, three cogeneration producers were granted the status of eligible producer. The total installed capacity of these three cogeneration plants is MWe. It should be noted that these are micro, small and medium plants in residential, service and industrial sectors which also contribute to the ESD target and their impacts are presented in Chapter 3. Five more installations with total installed capacity of MWe were entered in the Register of RES&CO installations, so in the following three-year period their construction and commissioning may be expected. Special attention is given to cogeneration plants in the development of the energy sector and DHS. The Energy Sector Development Strategy states that, in the development of DHS, priority must be given to those solutions that include cogeneration when that is viable from the point of economics as well as external costs. By 2020, the Energy Sector Development Strategy plans the construction of at least 300 MW of new cogeneration capacities together with the already started construction of the new gas cogeneration plant in TE Sisak with nominal capacity of 230 MWe. The document National Cogeneration Potentials was prepared and adopted as the basis for planning future construction of cogeneration plants pursuant to the Directive. In the in the period until the end of 2013 it is required to improve the regulatory framework for promotion of RES and cogeneration. From the view of cogeneration, special focus must be placed on the following: 1. Facilitating administrative procedures for micro and mini cogenerations and mandatory preparation of technical, environmental and economic feasibility studies for of alternative systems in buildings in accordance with the EPBD requirements (details provided in Chapter 3.9 because this segment relates to meeting the ESD and EPBD requirements) 2. Prescribing mandatory use of heat in power plants using biomass, biogas, liquid biofuel and landfill gas. The current tariff system subsidises such power plants without prescribing mandatory use of heat, so this in practice created biomass power plant projects of up to 20 MWe without clear intention of using heat. This must be changed and mandatory calculation of primary energy savings must be prescribed for cogenerations powered by the listed fuels, naturally more flexible than it was prescribed for cogenerations using fossil fuels Energy efficiency measures in development of domestic oil and natural gas fields Crude oil in Croatia is produced from 34 oil fields, and gas condensate from eight gas-condensate fields. Natural gas is produced from 17 gas fields in Pannonia and 6 gas fields in the Adriatic, which covers 64.2% of the domestic demand. The majority of Pannonian gas comes from the fields Molve and Kalinovac, next to which facilities for gas processing and preparation for transport were constructed central gas stations Molve I, II and III. In the previous three years, INA Industrija nafte d.d., which operates these fields, implemented a series of activities aimed at reducing its own energy consumption in exploitation of these fields. These activities included process optimisation, increasing the load level of equipment and their placement in a higher efficiency mode, transition from a high-pressure steam system to a low-pressure system with realised reduction of losses, use of waste heat from discharge gases of internal combustion engines, use of cogeneration, replacement of existing boilers with high efficiency boilers, replacement of internal combustion engines with electric motors, use of return fluids from high columns by using hydro turbines to drive pumps with realised energy consumption reduction in pumps and compensation of reactive energy. 40

41 Based on these activities, internal gas consumption as well as own electricity consumption were reduced, thus achieving significant primary energy savings presented in Table 10. In the three-year period it is planned to continue all initiated activities for reducing energy consumption in the development of domestic oil and natural gas fields, continually work on the application of new technologies with higher efficiency and to optimise processes according to current conditions and changes in the scope of production and market demands. The estimated primary energy savings are also presented in Table 10. Table 10 Achieved and planned primary energy savings from energy savings activities in development of domestic oil and natural gas fields Realised energy consumption Estimated energy Savings achieved Estimated savings compared consumption compared to 2008 to [MWh] [MWh] [MWh] [MWh] [MWh] [MWh] [MWh] [MWh] [MWh] [MWh] [MWh] Natural gas internal 1,073, , , , , , , , , , ,204 consumption [11] Electricity 122, , , , , ,410 4,986 9,829 12,090 14,306 16,478 Electricity calculated down to 267, , , , , ,326 10,838 21,368 26,283 31,101 35,821 primary energy [12] TOTAL 123, , , , ,025 Achieved primary energy savings in the period ,285 Estimated primary energy savings in the period , Energy efficiency measures in oil processing and production of oil derivatives in oil refineries Crude oil from own production and imports is processed in two refineries Oil Refinery Rijeka and Oil Refinery Sisak, as well as in two lubricant production plants Maziva Rijeka and Maziva Zagreb. Comprehensive modernisation programmes were started in both refineries in Their goal is increase the processing capacity in order to raise the level of operation, efficiency and profitability of refinery processing whilst complying with European environmental standards. These activities will be continued in the future, which is also planned in the Energy Sector Development Strategy of the Republic of Croatia that prescribes the accelerated completion of refinery modernisation. The planned end of refinery modernisation projects is by the end of In September 2007, the sulphur recovery unit (Claus) was placed in operation in the Oil Refinery Sisak. Its environmental result is a maximum reduction of hydrogen sulphide and sulphur dioxide emissions from the refinery s fuel oil system. The effects of Claus s operation on the reduction of imission concentrations of all gases in the surrounding environment are visible from the data showing that the concentration of SO 2 was reduced by 50.9% and of H 2 S by 12.5%, compared to the previous periods. In 2009, the HDS FCC unit (hydro desulphurisation of FCC petrol) was put in operation, and the isomerisation unit is close to starting operations. The activities implemented in the period in this refinery and the achieved annual energy savings are presented in Table 11. Table 11 Activities implemented in the Oil Refinery Sisak for improving energy efficiency and reducing losses in oil processing in the period m 3 of natural gas = 33 MJ = MWh 12 The average thermal operation level of power plants of 46% was assumed 41

42 Project title Annual energy savings [GJ/yr] Annual energy savings [GWh/yr] Starting the operations of TG-30MW turbo-generator and optimisation of the condensation system 183, Modernisation of boiler heating systems K-1 and K-2 Energana 2 and optimisation of operational parameters 106, Construction of a new boiler NGP Rafako 22, Reconstruction of a part of the condensate collection unit KP-7 47, In the period until the end of 2013 it is planned to continue the activities of energy efficiency improvement and reduction of losses in oil processing, such as the introduction of an energy management system, replacement of fuel oil with refinery or natural gas, installation of burners with low NOx emissions, replacement of steam boilers, revitalisation of cooling towers, insulation of steam pipelines, use of waste heat from processing furnaces and condensates, compensation of reactive energy and replacement of old electric motors and transformers. These activities are expected to yield annual energy savings in the amount of approximately 483 GWh/year. The first phase of modernisation was completed in the Oil Refinery Rijeka, and it included the construction of three processing units within the hydro cracking complex - mild hydro cracking, hydrogen production and sulphur separation and numerous auxiliary facilities and installations. The total investment value in the first phase of modernisation of the Oil Refinery Rijeka amounted to around EUR 400 million. The central plant is the hydro cracking / hydro desulphurisation complex. Hydro cracking will produce lighter products from heavy hydrocarbons, while hydro desulphurisation will produce Euro V quality fuels from them. The hydrogen production unit was designed to supply high-purity hydrogen for the hydro cracking unit and other units, when required. Apart from hydrogen, this unit will also produce high-pressure overheated steam that will be used for electricity generation. The works on this unit started on 10 October The unit was put in operation in October The desulphurisation unit or the so called Claus is able to separate a minimum of 99.8% of sulphur from input raw materials for each project case. The second phase of modernisation includes the construction of a heavy residue conversion/upgrading unit. The goal of this second phase is to increase the production of high-value condensates with simultaneous elimination of the production of fuel oil with high sulphur content. For this purpose, the Delayed Coking technology was selected for the conversion of heavy residues into lighter products based on thermal cracking processes. The construction of the coking unit will enable an increase in the production of so called white products like liquefied petroleum gas, petrol and diesel in line with the prescribed European standards. The Oil Refinery Rijeka shall terminate its production of fuel oil which will significantly reduce emissions of environmentally harmful substances. By terminating its production, fuel oil will cease to be used as fuel in the refinery. It will be replaced by processed refinery gas and natural gas which will significantly reduce emissions of environmentally harmful substances. In the long term, this project will increase the competitiveness of the refinery due to the production of higher quality products in compliance with all environmental requirements for industrial plants. The activities implemented in the period in this refinery and achieved annual energy savings are shown in Table 12. Table 12 Activities implemented in the Oil Refinery Rijeka for improving energy efficiency and reducing losses in oil processing in the period Project title Annual energy savings [GJ/yr] Annual energy savings [GWh/yr] Optimisation of the turbine condensation system in the power plant 142, Installation of thermal regulation valves on viscous media tanks 59, Technological waste processing unit 47, In the period it is planned to continue the activities of energy efficiency improvement and reduction of losses in oil processing, such as the introduction of an energy management system, replacement of fuel oil with refinery or natural gas, installation of burners with low NOx emissions, replacement of steam boilers, use of waste heat from processing furnaces and condensates, compensation of reactive energy and replacement of 42

43 old electric motors and transformers. These activities are expected to achieve annual energy savings in the amount of approximately 965 GWh/year. The impacts of complex refinery modernisation projects are also directly visible from energy statistics which show that losses in refineries in 2009 amounted to only 0.47% of the total oil processing, while in 2005, prior to modernisation, they were at the level of 0.73%, which means that losses were reduced by nearly 36% [13] (details in Annex I) Energy efficiency measures in pipeline transport of oil The Adriatic pipeline was constructed in 1979 as an international oil transport system from domestic and foreign refineries in Eastern and Central Europe to the oil tanker terminal Omišalj. The designed pipeline capacity is 34 million tonnes of transported oil per year, while the installed capacity is 20 million tonnes. The warehouse capacities of terminals Omišalj, Sisak and Virje amount to 900,000 m 3 for oil and 100,000 m 3 for oil derivates in Omišalj and Zagreb. JANAF s development projects include the modernisation of the existing oil pipeline system, its more intense inclusion in the European oil pipeline network with diversification of oil supply routes and sources i.e., increasing the security of oil supply to consumers. Under the Energy Sector Development Strategy of the Republic of Croatia, Družba Adria and Pan European Oil Pipeline PEOP are international oil pipeline projects whose realisation, together with better utilisation of JANAF capacities, could also ensure more intense inclusion in the European oil pipeline network and better connection to oil sources of the Russian Federation and Caspian region countries. In the last several years the oil pipeline system was modernised according to the highest global technological standards for the purpose of increasing the safety of oil transport and environmental protection, maintaining operational transport capabilities within the limits of the installed or designed capacity, prolonging the life of the oil pipeline and preparation of new projects of international oil pipelines as well as storage of oil and oil derivatives. The completion of modernisation projects concerning JANAF s Control and Management System (SCADA), electric energy and communication-information system, GIS and continuous testing and improvements of the pipeline s integrity is especially important. Oil transport on the pipeline section Terminal Omišalj - Terminal Sisak is carried out only during night hours i.e. in the period of lower electricity tariff. This significantly reduces electricity costs and at the same time balances the electricity network. In such operational mode of the pipeline, electricity is spent by night when the network consumption is low which has favourable effects on the network stability. An extra benefit of using electricity by night is the non-payment of the required peak capacity charged in the daytime tariff, which would for Terminal Omišalj and PS Melnice amount to about 7,700 kw for the running of two 3.3 MW generator sets on each location which are required to perform oil transport on the route Omišalj-Melnice-Sisak, or the total of about 15.4 MW. Process optimisation was achieved by replacing reactive energy compensation units due to their deterioration and non-compliance with environmental standards in terminals Omišalj, Sisak and Virje and in PS Melnice and OS Dobra. In that way JANAF has an own source of reactive energy, so that energy does not have to be received from the electricity network, and in that way savings are achieved at the system level because of avoiding the need for reactive energy production and transmission. In the period until the end of 2013., JANAF plans to implement activities and measures focused on process optimisation, improvements in energy consumption management and introduction of new technologies for the purpose of efficient energy use and reduction of costs. Further optimisation of the oil transport system is possible by introducing new technologies in transport processes. By replacing the existing 3.3 MW unit (electric 13 Source: Annual energy report Energy in Croatia, MELE,

44 motors, pumps, hydraulic couplings) with a new modern technology for regulated units of identical power and transport capacity and new electric motors with improved operational level, it is possible to achieve savings of about 312,000 kwh per year. By placing into function the new remote control and management system (SCADA system), more rational use of electric motors in the oil transport system will be achieved. Optimisation of electricity costs may also be achieved by transferring the power supply of JANAF s larger facilities (Terminal Sisak and Terminal Omišalj) from 35 kv to 110 kv, for which it is required to prepare a detailed optimal solution study. All these projects contribute to increasing the safety of oil transport and supply as well as to environmental protection. Additionally, they will also assist in prolonging the life cycle of the oil pipeline and in the entry into new markets Energy efficiency measures in natural gas transport and distribution Natural gas transport Natural gas transport is a regulated energy activity which is performed as a public service and represents the principal activity of the company Plinacro d.o.o. which is the owner and operator of the gas transmission system. The company Plinacro is in exclusive ownership of the Republic of Croatia. The replacement of equipment in gas boiler plants in the gas transmission system facilities (measuringreduction stations) has begun in Instead of former old, inefficient and unreliable boiler units, facilities were installed with new equipment (condensing boilers with modulating burners) that has the power efficiency level of 110%. In addition to increasing the safety and reliability, by replacing the listed equipment Plinacro d.o.o. managed to significantly reduce energy consumption (gas) for preheating of natural gas. In the period , a total of 14 boiler plants were modernised. This resulted in gas consumption savings of 15-20% compared to the old boiler plants. It is estimated that the replacement of equipment in only 14 facilities will realise savings of about 25,000 35,000 m 3 of natural gas per year, which is equivalent to MWh. Additionally, in the previous period the replacement of uninterruptable power supply systems was carried out in 16 facilities. Old systems were inefficient with high electricity consumption and non-adjustable to modern batteries. The replacement with a new high-efficiency system would result in higher efficiency and considerable operational electricity savings, and the systems are adjusted for operation with new longer life (>12 years) gel batteries which at the same time contributes to environmental protection. In the period until the end of 2013 it is planned to replace equipment in other old, inefficient boiler plants, which includes the total of 20 facilities that would achieve savings in natural gas consumption of 50,000 80,000 m 3 per year or MWh. In addition to the replacement of gas boiler plant equipment, analysis of internal gas savings potentials is in progress. Savings would be achieved by reducing the preheating temperature of output gas from the current 15 C to 12 C, thus saving up to 20% (up to 400,000 m 3 of gas or 4,640 MWh). The listed temperature reduction may be realised only in facilities where the reduced output gas temperature will not have an impact on gas customers. Moreover, it should be emphasized that Plinacro d.o.o. in its internal regulations prescribes regular inspections and control of the gas transmission system and in that way performs preventive actions concerning possible losses (leaks). As the gas transmission system is a closed system, losses may occur only due to leaks or accidents in the system which is minimised by systematic inspections and preventive maintenance. In addition, gas line walls are periodically checked and any damages that could cause leaks or rupturing of gas lines in the future are preventively repaired. 44

45 Natural gas distribution The rational use of gas in distribution and supply processes is most evident in the level of gas losses during its transport through the distribution network, in manipulations of the network during interruption and reestablishment of operational pressure and in its supply to end customers. This relates to technical gas losses that occur due to natural properties of gas, measuring method and conditions as well as uncontrolled gas leakage from the network in case of gas line damages or on gas connection points. The largest part of losses is a consequence of natural properties of gas and these may not be affected. A smaller part of technical losses are losses due to gas leaks. Measures aimed at reducing such losses primarily include the reconstruction of old steel gas lines which reduces the share of steel gas lines in the total length of gas pipelines and reduces losses. In the previous period , the share of steel gas lines in the total length of all gas lines was reduced and in 2010 was 2% less than in 2008 (Table 13). Table 13 Share of gas lines made of steel in the total length of gas lines (Source: HERA) Year STEEL (km) Total (km) STEEL (km) Total (km) STEEL (km) Total (km) Gas line length 3,088 17,444 2,948 17,561 2,856 17,917 Total losses, except technical, also include measurement errors, differences due to the consumption reading time and unauthorised gas consumption. Total losses significantly differ depending on the distribution system operator, ranging from 0.22% to as much as 26%, which clearly indicates the potentials for improvement. The primary measure for reducing technical losses is the reconstruction of deteriorated gas lines. Energy undertakings plan for gas line reconstructions in their five-year distribution system development plans which are, after HERA issued a positive opinion, approved by the minister competent for the energy sector. In order to reduce technical losses in the planned period , energy undertakings should also carry out organisational measures, such as: through a permanent emergency service (24 hours a day), carry out emergency interventions immediately after the notice of a potential gas leak, visual inspection of the entire gas line route and control of impregnability of the network in accordance with DVGW work sheets G-465/I and G-465/IV: twice a year, control of metering regulation sets of end customers (presence of the official seal label): for all customers whose consumption is suspicious and by sampling method for other customers, check the accuracy of stopper elements: according to the years of connection to the distribution network, urgent repair of damaged gas lines, consumers gas installations to gas lines should be connected under pressure in order to prevent gas leakage and release of methane into the atmosphere, which also contributes to environmental protection, when repairing gas lines, use the ballooning and pressing methods, which also contribute to environmental protection. In the period until the end of 2013 the key measure is to supervise the of these activities and monitor the status of total network losses. It is worth pointing out that distribution system operators are obliged to elaborate, publish and once a year update a five-year distribution system development plan and deliver it to the minister for approval, subject to ME obtaining a positive opinion from HERA, but these measures will be described in Chapter 3, in view of their impact on final energy consumption savings. 45

46 3 FINAL CONSUMPTION ENERGY SAVINGS 3.1 Assessment of final energy consumption savings targets and achievements Final energy consumption in Croatia Final energy consumption in Croatia in 2010 amounted to approximately PJ [14]. The structure of final energy consumption in Croatia is presented in Figure 3 [15]. The largest share of the total final energy consumption is spent in transport and households, which should be considered as a guideline for defining and implementing energy efficiency measures. Sector shares in final energy consumption 11.39% 3.94% 21.62% Industry Transport Households 30.17% Services Agriculture 32.88% Figure 3 Structure of energy consumption in Croatia in 2010 Figure 4 presents the movements of energy intensity in individual final energy demand sectors. The trends of reducing the energy intensity have been achieved by 2007 in most of the sectors, except for transport where the intensity stagnated or slowly increased. After 2007, the energy intensity of the total final energy consumption increased slowly. The trend of increasing the energy intensity was also present in households, services and transport. In industry and agriculture the energy intensity continued to decline. 14 In 2009 consumption was around 266 PJ, while data for 2010 was estimated since there is no official energy balance for Croatia in 2010 yet. 15 Data for 2010 was estimated since there is no official energy balance for Croatia in 2010 yet. 46

47 Indek s PJ Second National Energy Efficiency Action Plan of the Republic of Croatia until the end of Energy intensity of final energy consumption Industry Transport Households Services Agriculture Total * Figure 4 Index of final energy intensity compared to 2007 Annex I Basic information on energy consumption in Croatia provides detailed data on the total energy consumption, transportation losses and energy allocation, own energy consumption in the energy sector and energy transformations, which show movements and achievements compared to the reference year 2007, thus supplementing the information given in this Chapter Total national final energy consumption savings and achieved progress The national indicative energy savings target in final consumption was defined in the 1 st NEEAP in line with the methodology prescribed in Annex I of the ESD and in an absolute amount corresponds to 9% of the reference final energy consumption that was defined as average energy consumption in the period Forecasts of final energy consumption until 2016 (and 2020) and expected energy savings compared to BAU scenario are presented in Figure Savings 2020: PJ 400 Savings 2016: PJ BAU scenario Energy efficiency measures scenario Figure 5 BAU scenario for final energy consumption and expected 16 In the previous three-year period, Croatia achieved energy savings through the of measures defined in the 1 st NEEAP, but also through their indirect impacts as well as technological progress. The realised reduction of final energy consumption may not be entirely credited to the measures defined in the 1 st NEEAP 16 Source: Energy Sector Development Strategy of the Republic of Croatia (Official Gazette 130/09) 47

48 due to inability of carrying out specific monitoring of impacts of each individual measure, and also because of the fact that measures were not fully implemented in the planned way. However, qualitative and, when possible, quantitative evaluation of of each individual measure points to the fact that additional efforts and additional measures are required in order to achieve additional energy savings. This is the reason why the measures existing in this NEEAP were revised so as to more precisely specify the required activities and new measures were introduced from which direct and significant energy savings are expected. The energy savings realised in 2010 were evaluated by combining the use of TD indicators and BU methods for individual measures. Details concerning the method of calculating energy savings are provided in Chapter and are a part of separate publication, while their summary is presented in Table 14. Table 14 Overview of final energy savings achieved/estimated within the ESD Final energy savings target Achieved/estimated total final energy savings Absolute amount [PJ] Percentage [%](compared to reference consumption 17 ) Absolute amount [PJ] (evaluated by TD indicators) Percentage [%](compared to reference consumption) Achievement of the first intermediate target of final energy consumption reduction in 2010 Table 14 shows that the 2010 target was practically achieved. The energy savings calculated with TD indicators are very similar to the targeted amount defined in the 1 st NEEAP. Table 15 shows the realisation of targets by sector, using a combined method of TD indicators to assess total savings and BU method to assess impacts of individual measures. The deviation from the target is not substantial, and may also be caused by methodological uncertainty. Actually, applying the TD approach in the service sector produced smaller savings than the BU approach. However, activities in the public sector were strongly implemented in the previous period and savings were certainly achieved. Smaller savings obtained by the TD method may be a result of influence of the commercial sector which lacked more specific activities in the previous period. If BU (only the service sector) and TD (for other sectors) methods were combined, savings would amount to 7.34 PJ and thus it could be established that the target was fully achieved. Table 15 Overview of energy savings in 2010 per sector Sector Final energy savings target in Total energy savings assessed Energy savings from measures 2010 (under 1 st NEEAP) [PJ] by TD indicators [PJ] assessed by BU methods [PJ] Households Services Industry Transport TOTAL Regardless of methodological issues in calculating savings, the fact remains that the results of of the listed measures are unsatisfactory. The achieved total savings in households may be attributed to a strong three-year information campaign on energy efficiency that resulted in changing the citizens behaviour and their relation towards energy, significant application of simple procedures for improving energy efficiency as well as purchase of increasingly efficient appliances. However, the majority of savings were realised in the construction of new buildings due to the adoption of new regulations that prescribe stricter energy performance requirements for buildings (measure B.1). 17 Reference consumption compared to which the national savings target for 2016 was set represents a five-year average consumption in the period , and amounts to PJ. 48

49 In the service sector, three particular measures strongly and almost entirely contributed to achieving energy savings: regulations for new buildings (measure B.1), project Systematic energy management in cities and counties (measure P.1) and programme House in order (measure P.2). Related to the industry sector, systematic activities for stimulating energy efficiency have been suspended in the previous period, other than financial support provided by EPEEF, so it was possible to allocate only the impacts of these co-financed projects to individual measures. However, the industry sector is achieving the highest energy savings, which is primarily a result of technological progress and of energy efficiency improvement activities without state support. A similar situation is found in the transport sector, where the achieved savings are also primarily a result of technological progress of vehicles, especially of personal vehicles, with regard to fuel consumption, and only in a lesser extent are they a result of few incentive measures that were implemented in the previous period. Savings representing around 54% of the 2010 target may be allocated to the measures defined in the 1 st NEEAP. This is a result of both unsatisfactory of measures and non-existence of systematic monitoring of, measurement and verification of energy savings Estimated final energy consumption savings by 2016 Final energy consumption forecasts until 2016 show that the national indicative target of PJ will be achieved. However, this will not be possible without implementing the measures prescribed in this NEEAP. Table 16 Energy savings forecasts in 2016 godini per sector Sector Final energy savings target in Energy savings from measures 2016 (under 1 st Total energy savings [PJ] NEEAP) [PJ] [PJ] Households Services Industry Transport TOTAL The impacts of all individual measures defined in NEEAP may not be precisely assessed nor may savings be allocated to each individual measure. However, it is clear that they could be used to verify the achievement of energy savings in the amount of approximately 94% of the 2016 godinu national target. In the next period it is required to increase efforts in implementing measures and verifying additional energy savings resulting directly from the comprehensive and coordinated energy efficiency policy defined in this NEEAP. Consumption forecasts and scenario analyses show that without systematic and timely of the measures defined in this NEEAP the 2016 godini targets will not be achieved National targets for nearly zero energy buildings Croatia did not yet set its target for nearly zero energy buildings, but it initiated the process of amending the relevant legislative and regulatory framework which will set stricter energy performance requirements for buildings to be constructed (new) and the existing buildings which will be renovated. Nearly zero energy buildings will be defined within the National plan for increasing the number of nearly zero energy buildings. The plan will also set the targets for improvement of energy performance in line with the requirements of Article 9 of the EPBD II. The activities that will be implemented in the next period are more closely defined under measure B.1 in Chapter Moreover, it is planned to establish an incentive system for construction of new buildings that have better energy performances than those prescribed by regulations (measure B.4) Other final energy consumption savings targets, achievements and/or forecasts Under the Act on Energy End-Use Efficiency (Official Gazette 152/08 and 55/12), counties are obliged to prepare their three-year programmes and annual plans for energy efficiency improvement. Due to insufficient capacities at local level, this legal provision was not enforced in the previous period, apart from the City of Zagreb which in 2010 adopted its energy efficiency programme and set a target to reduce energy consumption in 2016 by 3.71 PJ. Considering that the programme was adopted in 2010, there are no data on the achieved energy savings. It is also worth pointing out that the City of Zagreb is a party to the Covenant of Mayors and 49

50 also proceeded to draft its Sustainable Energy Action Plan (SEAP). Several more cities joined this European initiative (details in Chapter 3.4) and it expected that, because of the legal obligation as well as voluntary initiatives, local energy plans with clearly defined targets and systematic monitoring of achievements will be increasingly prepared and adopted. 3.2 List of strategies affecting the final energy consumption The list of the most important strategies supporting the reduction in final energy consumption in the Republic of Croatia is provided in Table 1. That list of strategies does not include NEEAP, because it is prepared on the basis of the Strategy and the National Energy Efficiency Programme. 50

51 Table 17 List of strategies for the reduction of primary energy consumption Title of the strategy Energy Sector Development Strategy of the Republic of Croatia National Energy Efficiency Programme for the period Strategy for Sustainable Development of the Republic of Croatia Objectives Final energy savings of PJ in 2016 Final energy savings of PJ in 2020 Final energy savings of PJ in 2016 Cleaner production Inclusion of larger number of organisation into EMAS scheme Support the selection of sustainable products and services and develop environmental responsibility Introducing sustainability in public procurement Reducing the amount of waste and increase recycling Support more efficient modes of transport Invest in scientific research and use of cleaner and ecologically more efficient technologies Integration of sustainability topics into educational programmes on all levels Targeted sectors Households, services, industry, transport Households, services, industry, transport Business sector Public sector Business sector and citizens Transport Scientific research institutions Educational institutions The contents of the listed strategies are described in detail below. Legal status / publication Adopted by the Croatian Parliament / Official Gazette 130/09 Adopted by the RC Government in April 2010 / published on the ME s web pages Adopted by the Croatian Parliament / Official Gazette 30/09 Comparison with EU objectives / measures 18 In line with ESD requirements In line with ESD requirements Harmonized 19 The new Energy Strategy was adopted by the Croatian Parliament in 2009 (Official Gazette 130/09). The Strategy states that the Republic of Croatia will support the increase of energy efficiency in all segments of the energy sector, especially in final consumption. Energy efficiency is treated as an additional energy source and as a basic permanent principle in line with which the energy system will be operated and developed. The Strategy s objective is the maximum application of economically profitable energy efficiency measures for the purpose of reducing final energy consumption. The manner of realising this objective is defined by the National Energy Efficiency Programme for the period It is very important to emphasize that the Strategy recognises the difficulty of the task to achieve final energy savings and points out that the RC Government will work on satisfying the prerequisites necessary for successful of the energy efficiency policy, as follows: The development of energy markets and market-driven energy pricing shall be enabled. Legislative and regulatory framework aimed at encouraging energy efficiency shall be finished. 18 Comparison made with objectives/measures defined in the Energy Efficiency Plan 2011 : 19 European Commission: Europe 2020 Strategy for smart, sustainable and inclusive growth, COM(2010) 2020 final 51

52 An institutional framework for the, monitoring and evaluation of the energy efficiency policy on national level shall be created. Single system of data collecting, processing and storing for calculation and monitoring of energy efficiency indicators in accordance with the methodology accepted in EU;. Campaigns aimed at the general public and specific target groups shall be continuously implemented, as well as education of all groups involved in activities aimed at increasing energy efficiency in all sectors. Financial support for the of energy efficiency measures shall be ensured and incentives to innovative ways of financing shall be provided. The Strategy sets quantitative energy savings targets in final consumption for 2016 and 2020 (Figure 5 and Table 16). Under the Strategy and Act on Energy End-Use Efficiency (Official Gazette 152/08 and 55/12), the Government of the Republic of Croatia adopted the National Energy Efficiency Programme for the period , which serves as the basis for preparing the three-year national energy efficiency plans. This Programme defines the national indicative target for energy savings in final consumption by 2016, in line with the ESD requirements. Additionally, a detailed analysis of the preconditions for achieving that target was carried out as well as a proposal of the package of measures by final demand sector, which was then elaborated in the first, and now second NEEAP. Since the contents of that Programme are reflected in NEEAP, it will not be described in more detail. The Strategy for Sustainable Development of the Republic of Croatia (Official Gazette 30/09) also recognises energy efficiency as one of important mechanisms for achieving the objectives of sustainable development and also defines objectives in other areas that have a significant impact on the reduction of final energy consumption. In the area of sustainable production and consumption, this Strategy defines extremely important objectives and measures/activities: Integrate cleaner production programmes in production processes, products and services. For more efficient environmental management and public information on the effects of certain activities on the environment, through benefits and incentives ensure inclusion of a larger number of organisations into the EMAS scheme (Eco-Management and Audit Scheme). By informing and educating consumers and the business sector on the quality of particular products and services, promote the selection of sustainable products and services and develop environmental responsibility; the price of a product must reflect its impact on the environment. Promote corporate social responsibility. Through introducing sustainability in public procurement, promote environmentally responsible behaviour and the best selection of products. By 2015 break the link between waste production and economic growth and achieve significant reduction in quantities of produced waste via initiatives for preventing waste generation, increase the recycling rate, remediate the existing landfills and build waste management centres, establish an integrated waste management information system. By 2010 reduce quantities of finally landfilled waste as well as generated dangerous waste by approx. 20% compared to In line with changes in consumption patterns in the developed world invest in scientific research and application of cleaner and ecologically more efficient technologies with reduced use of natural resources, reducing emissions and waste quantities as well as health and safety risks. Implement national economic measures that force economic subjects to pay charges for burdening the environment. Establish financial mechanisms to reduce excessive consumption of resources. This Strategy reaffirms the final energy consumption savings target of PJ by 2016, increasing the share of renewable energy sources by 20% in the total gross end-use energy consumption by 2020, and prescribes that regulations should define energy efficiency and environmental acceptability requirements that have to be complied with by new industrial installations, in particular production, service and commercial companies, as 52

53 well as the introduction of energy efficiency certification for products used in building construction and industry. It is very important to also list the Sustainable Development Strategy s objectives in the transport sector, because the achievement of those objectives will have a significant impact on the reduction of energy consumption in transport: Promote the use of cleaner fuels and technologies and transfer to those forms of transport that use energy efficiently. Redirect transport from roads to more environmentally acceptable systems - sea, inland waterways, railway and short sea shipping. Enhance collective transport and the selection of transport options by raising the quality of public transport as well as of bicycle and pedestrian zones. Limit access to vehicles (pedestrian zones, limited parking zones, etc.). Encourage energy efficient use of private vehicles (fuel efficiency, energy efficient driving, etc.) Increase investments in the development of the railway infrastructure by ensuring the competitiveness of Croatian Railways with other types of transport, develop and build suburban railway infrastructure and increase efficiency and reliability of railway transport. Use telecommunications to reduce physical transport (telecommuting, internet business, performance of public administration-related activities, telemedicine, etc.). Increase safety and investments in the infrastructure to promote walking and bicycle use. Plan cities in a way to reduce the need for physical transport of persons and goods (grouping of public administration offices, etc.) The context of this Strategy on integrating sustainable development topics in formal and informal education at all levels of educational system is also very important. Central topics of sustainable development education are: reduction of poverty, assurance of peace, ethicality, responsibility at local and global level, democracy, justice, security, human rights, health, gender equity, cultural heritage, rural and urban development, sustainable production and consumption, corporate social responsibility, protection of the environment and nature, management of natural resources, biological and landscape diversity. The present educational programmes at all levels of formal education need to be amended and adjusted in such a manner as to increasingly include the principles and values of sustainability. Hence, the alignment of the listed strategies is evident, which is of outmost importance for supporting the of the planned energy efficiency improvement activities. Energy efficiency is not a goal in itself, but a tool for accomplishing the targets of economic and social progress and because of that it should become an integral part of other policies not directly related to the energy sector and energy consumption. The determinants of the Sustainable Development Strategy emphasize exactly the necessity of cooperation between relevant institutions from various sectors and their coordinated actions toward stakeholders in order to ensure sustainable development. 3.3 Measures for improvement of energy efficiency and final energy savings Energy savings calculation methodology For the purpose of calculating the energy savings achieved in 2010, TD indicators were used according to the EC s recommendations provided in the document Recommendations on Measurement and Verification Methods in the Framework of the Directive 2006/32/EC on Energy End-Use Efficiency and Energy Services. The data from the Croatian Bureau of Statistics, Croatian Meteorological and Hydrological Service, data from the energy balance of the Republic of Croatia (ME), Ministry of the Interior, Vehicle Centre of Croatia as well as data obtained by modelling (EIHP) were used as data sources. In accordance with the recommended methodology, 2007 was used as the baseline (reference) year, the last year with known energy balance was 2009, while the energy balance for 2010 was assumed on the basis of energy consumption history and the data collected for the purpose of preparing the energy balance. The calculation of savings and indicators in all consumption sectors was carried out by using minimum (M) and preferred (P) indicators, except in the service 53

54 sector where, due to the lack of data, the calculation of preferred indicators was not possible. The energy savings identified by calculating P indicators are considered relevant, except in the service sector. Moreover, it was not possible to calculate changes of indicators P4 for household appliances in the residential sector due to the lack of data. The overview of used TD indicators is provided in Table 18. To assess future energy savings in 2016 and 2020, together with calculation of TD indicators according to the EC s recommendations, a national methodology based on MAED model was used for planning future final energy consumption. The MAED model was used to assess the final energy consumption in Croatia by 2020 with consideration of all energy efficiency measures planned in that period (and defined in this NEEAP). Such a scenario is usually called a measures scenario. If all savings resulting from other factors apart from incentive policy measures are added to that scenario, such as technological progress, this will result in final energy consumption in the so called BAU scenario. However, if in the BAU scenario all years of the planning period contain the same energy intensity and technological level as in the baseline year, in this case 2007, this is the so called frozen scenario. The difference in the final energy consumption between frozen and measures scenarios gives the total final energy consumption savings resulting from the planned measures, and also from all other consumption-related technical and organisational improvements, like technological progress and market entry of new, more efficient energy use technologies. It should be stated that the total achieved savings are provided on the basis of calculated TD indicators. The MAED model was used for two purposes: 1) to obtain energy consumption forecasts until 2020, which was necessary to calculate TD indicators, and 2) to compare the energy savings calculated by TD indicators and modelling. As the comparison of total energy savings calculated by these two methods exhibited good data compatibility, the methodology based on TD indicators recommended by the EC was selected to present the total energy savings in the 2 nd NEEAP. For the purpose of prescribing the methodology for monitoring, measurement and verification of final consumption energy savings realised by energy services and energy efficiency improvement measures, in line with Directive 2006/32/EC on energy end-use efficiency and energy services (ESD), and under Article 7, paragraph 3 of the Act on Energy End-Use Efficiency (Official Gazette 152/08, 55/12), the minister competent for the energy sector adopted the Ordinance on the methodology for monitoring, measurement and verification of energy savings in final consumption (Official Gazette 77/12). Table 18 Presentation of used TD indicators for calculation and reporting on achieved energy savings in TD indicator 3.5 Sector 3.6 Possibility of calculation 3.7 Reporting on achieved energy savings P1 P2 P3 P1, P2, P3, P5 P4 Households - P5 M1 - M2 P6 - - P7 - Services M3 M3, M4 M4 P8 A1 for P8 P9 A2 for P9 P10 P8, P9, P10, P11, P12, P13 P11 Transport P12 P13 M5 M6 - M7 P14 Industry P14 54

55 M8 - In ex-post assessments of the impacts of individual measures (and, where possible, in ex-ante assessments of future savings) BU methods of the European Commission were used, as prescribed in the document: Recommendations on Measurement and Verification Methods in the Framework of the Directive 2006/32/EC on Energy End-Use Efficiency and Energy Services, of course with identifying the reference values corresponding to the status of the existing buildings and the system as well as the market situation in Croatia. In addition to the recommended methods, several new methods were developed for the following particular measures: 1. installation of heat pumps 2. replacement of existing and purchase of new more efficient vehicles 3. eco-driving support 4. energy efficient public lighting 5. energy audits The recommendations of the EMEEES project [20] were used in developing the national BU methods. In addition, the principle of measured savings was frequently used in assessing the impacts of measures, meaning that savings were defined on the basis of measured energy consumption before and after the of an energy efficiency improvement measure with, if that was required and applicable, the correction according to the impact factors (e.g. climate conditions i.e. degree-heating days, industrial production or added value, etc.). The projects implemented by HEP-ESCO d.o.o. were evaluated according to IPMVP (International Performance Measurement and Verification Protocol) methods. The used BU methods with links to the measures evaluated by using these methods are presented in Table 19. Table 19 Presentation of used BU methods for calculation and reporting on achieved energy savings BU method In line with EC recommendations / National method Designation of measures whose savings were evaluated by using BU methods Renovation of existing residential buildings and EC (2.1) R.5 (ex-ante), P.5 (ex-ante), C.5 (ex-ante) service sector buildings Introduction of building regulations for new residential buildings and service sector EC (2.3) B.1, B.4 (ex-ante) buildings Replacement of heating equipment in residential buildings and service sector EC (2.4) R.3, R.4, C.1 buildings Replacement or installation of a new hot water heating system in residential buildings EC (2.5) R.3, R.4, C.1 and service sector buildings Solar water heating systems in residential buildings and EC (2.7) R.3, R.4, C.1, C.2 (ex-ante), C.3 (ex-ante) service sector buildings Heat pumps National method R.3 Replacement or installation of a new public lighting system National method P.4 Replacement of existing and purchase of new, more National method T.4-1, T.8 (ex-ante), T.9 (ex-ante) efficient vehicles Eco-driving support National method T.3-1, T.1 (ex-ante) Energy audits National method C.1, I.3 Measured savings / IPMVP / P.1, P.2, P.4, C.1, I

56 PJ Second National Energy Efficiency Action Plan of the Republic of Croatia until the end of 2013 A detailed description of bottom-up methods is given in the Ordinance on the methodology for monitoring, measurement and verification of energy savings in final consumption (Official Gazette 77/12), while the basic information on the savings assessment method are given in Chapter for each individual measure that was able to be assessed by applying these methods Overview of all energy efficiency measures This Chapter presents the details of all individual energy efficiency measures and evaluates the impacts of measures defined in the 1 st NEEAP in terms of the achieved energy savings in It also defines new measures in order to ensure the achievement of the 2016 target. Measures are divided by sector, as follows: 1. General measures in buildings these measures take effect in households, public and commercial services 2. Measures for households 3. Measures for the service sector i. Measures for the public sector ii. Measures for the commercial services sector 4. Measures in industry 5. Measures in transport 6. Measures for energy companies 7. Horizontal measures Measures in buildings - general Buildings are the single largest energy consumers and today represent a great potential for energy, economic and environmental savings. The final consumption in buildings in 2009 grew 1.1% compared to 2008 when it was PJ, which represents 40% of the total energy consumption [21]. Total consumption in other sectors is PJ, so buildings hold 86% of that sector. When looking at the buildings sector in general, the dominant energy product is electricity with a share in the total energy consumption of buildings of approximately 39.4%, followed by natural gas with 27.8%, oil products with 13.8%, renewable energy sources (mostly fire wood) with 11.5% and heat from DHS with 7.3%. [22] Such shares of energy products are expected considering that over half of the energy demand of buildings goes to space heating. Energy consumption in buildings in the period is shown in Figure 6. Compared to 2007, energy consumption in buildings grew by 10.13% with a realised annual growth rate of 3.27 % Households Services Buildings Figure 6 Energy consumption in buildings in the period *Energy consumption for 2010 estimated 21 All provided data is for 2009, and taken from the document Annual energy report Energy in Croatia, MELE, Zagreb All provided data is for 2009, and taken from the document Annual energy report Energy in Croatia, MELE, Zagreb

57 Several measures defined in the 1 st NEEAP are focused on achieving energy efficiency of buildings. These measures are an integral part of the package of measures for residential and service sectors. For this reason, in view of their inter-sectoral nature, they are described individually. The listed measures are regulatory, and primarily relate to transposing the requirements of the Energy Performance of Buildings Directive (EPBD [23] and EPBD II [24] ) into national legislation. The process of implementing the EPBD in Croatia formally begun in 2008 and was mostly under the competence of the Ministry of Environmental Protection, Physical Planning and Construction (MEPPPC), and, since the adoption of the Act on the Structure and Scope of Ministries and State Administrative Organisations in December 2011, under the competence of the Ministry of Construction and Physical Planning. Great progress was made since The adopted subordinate regulations created foundations for introducing energy certification of buildings, prescribed the requirements for professional qualifications of authorised independent experts for energy certification and energy auditing of buildings, prescribed the energy performance requirements for new and existing buildings, regulated the methodology for calculating energy performance of buildings based on the existing European standards, and also regulated the methodology for carrying out energy audits of buildings for the purpose of energy certification of buildings. With the adoption of new EPBD II Directive, the process of amending the legislative and regulatory framework that will fully transpose all requirements from the Directive was initiated. The Act on Energy End-Use Efficiency (Official Gazette 152/2008, 55/2012) regulates the national energy efficiency policy in Croatia. Its so far has pointed out a series of inconsistencies and needless barriers in the development of the ESCO market supply of energy services in terms of energy efficiency improvement measures. These shortcomings firstly became clear in the vague division of responsibilities between ME, MCPP and EPEEF. This caused problems, considering that the Fund is primarily an institution competent for cofunding energy efficiency projects, without the capacity to act as an implementing authority and with a questionable justification of the fact that the same institution should prepare projects as well as approve cofinancing of energy efficiency projects. Furthermore, the obligation to submit data on the final energy consumption for suppliers and customers has until now been based on the planned Ordinance on the single energy efficiency information system, but it was established that such an ordinance largely overlaps with the matters regulated by the Ordinance on Energy Balance and therefore it is better to improve the data collection process defined in that ordinance than to develop a parallel data collection and processing system. Under that Act, the issue of energy auditing of buildings for the purpose of energy management was going to be regulated by a system separate from the one managed by the ministry competent for construction for the purpose of certification of buildings and this in a way that the methodology for carrying out energy audits of buildings, for the purpose of certification of buildings, was defined by the ministry competent for construction, while the methodology for energy audits of structures, including buildings, for the purpose of energy management was defined by the ministry competent for the energy sector the necessity for both methodologies in the listed case is unjustified, and at the same time creates additional costs for persons interested to be in this profession, which limited the growth of the energy auditing market. On the other hand, the issue of supervision over the mandatory inspection of heating boilers and air-conditioning systems in buildings was separated from the whole of building-related issues and given to the ministry competent for the 23 Directive 2002/91/EC of the European Parliament and of the Council of 16 December 2002 on the energy performance of buildings (Official Journal L 001, 04/01/2003) 24 Directive 2002/91/EC of the European Parliament and of the Council of 16 December 2002 on the energy performance of buildings (Official Journal L 001, 04/01/2003) 57

58 energy sector, and not the ministry competent for construction, which is otherwise competent for the supervision of buildings as a whole. The Act defined the activity of energy services based on energy performance contracts, whereas investments in energy efficiency improvement measures would be remunerated from the achieved savings. Considering that such an activity is not listed in the National Classification of Activities (NKD), the providers of such energy services needed to obtain an approval to perform this activity from the ministry competent for the energy sector. This resulted in a fact that in the last three years only 2-3 legal persons applied for and received such approvals. The Act on Amendments to the Act on Energy End-Use Efficiency adopted by the Croatian Parliament on 4 May 2012 regulated that: 1. The Government of the Republic of Croatia will in a regulation prescribe the procedures for carrying out energy services in the public sector, thus ensuring that energy efficiency measures will be implemented in public sector buildings without spending budgetary funds. 2. Unnecessary barriers for energy service providers are removed and, after entry into force of these amendments, natural and legal persons will be allowed to provide energy services or other energy efficiency measures to end customers based on an Energy Performance Contract. 3. The Fund s obligations were defined, including the financing of measures defined in the National Action Plan and monitoring of the achieved energy savings in projects of the Fund s beneficiaries. The Fund is obliged to cooperate with competent ministries in supporting energy efficiency measures. 4. The need to adopt the Ordinance on the single energy efficiency information system was removed, but for suppliers it is clearly prescribed what information they must submit to the ministry. Likewise, it is prescribed that the public sector must in all its buildings use the national Energy Management Information System (EMIS) and update it with all required data on energy and water consumption in buildings. The method for assessment of the energy savings resulting from the of energy efficiency improvement measures is defined in the Ordinance on monitoring, measurement and verification of energy savings passed by the minister. 5. A single methodology for carrying out energy audits and energy certification of buildings will be defined in a special ordinance. Moreover, in line with the requirements of Directive 2010/31/EU, the obligation of establishing independent control systems for energy audit reports and issued energy certificates is prescribed. Full competence for energy auditing and energy certification issues is given to the ministry competent for construction. 6. In view of initiating programmes for the energy renovation of public buildings, the Government of the Republic of Croatia shall in a regulation prescribe the procedures for performing energy services in the public sector. This will ensure energy efficiency improvements in the public sector without using budgetary funds and at the same time will start up the construction sector and the market of energy services. 7. Eco-design requirements for products will be expanded to energy-related products, meaning all those that in any way have an impact on energy consumption. This will ensure that products placed on the Croatian market meet the eco-design requirements, of which the most significant is surely energy efficiency. The execution of the listed amendments to the Act and adoption of subordinate legislation will improve the of the energy efficiency policy in the Republic of Croatia, and will especially contribute to improving the quality of performed energy audits and issued building energy certificates, thus allowing the of programmes for the energy renovation of public buildings, and eventually of all other types of buildings. This will significantly contribute to achieving the national energy savings target in final consumption defined in the Energy Sector Development Strategy of the Republic of Croatia and the National Energy Efficiency Programme. 58

59 The present legislative and regulatory framework for energy efficiency of new and existing buildings, with which the EPBD is implemented, is based on the following documents: Physical Planning and Construction Act (Official Gazette 76/07, 38/09, 55/11,90/11 and 50/12) Act on Energy End-Use Efficiency (Official Gazette 152/08 and 55/12) Ordinance on the energy certification of buildings (Official Gazette 36/10 and 135/11) Ordinance on conditions and criteria for persons who perform energy audits and energy certification of buildings (Official Gazette 113/08, 89/09) Technical regulation on rational energy use and heat retention in buildings (Official Gazette 110/08, 89/09) Technical regulation for windows and doors (Official Gazette 69/06) Technical regulation on heating and cooling systems in buildings (Official Gazette 110/08) Technical regulation on systems of ventilation, partial air conditioning and air conditioning of buildings (Official Gazette 03/07) Technical regulation for chimneys in buildings (Official Gazette 03/07) Methodology for carrying out energy audits of buildings, published in June 2009 on Under the Act on Amendments to the Act on Energy End-Use Efficiency, the minister competent for construction in cooperation with the minister competent for the energy sector shall harmonize the following legislation with this Act: Ordinance on the energy certification of buildings (Official Gazette 36/10 and 135/11), Ordinance on conditions and criteria for persons who perform energy audits and energy certification of buildings (Official Gazette 113/08 and 89/09), Ordinance on energy audits of structures (Official Gazette 5/11), Ordinance on authorisations for energy audits of structures (Official Gazette 5/11). The area of heat retention in buildings was for the first time regulated in the Ordinance on heat retention in buildings in Significant progress was achieved with adoption of the Technical regulation on rational energy use and heat retention in buildings in 2005 (in force from 2006), which for the first time limits the energy use for heating. The prescribed requirements resulted in energy consumption savings of 20-30% compared to the requirements from the earlier ordinance. The adoption of new regulations in 2005 is presented as an early measure that directly contributes to meeting the national target and ESD requirements. Energy audits and energy certification of buildings are performed by authorised experts. The training programme for these experts is continually carried out by 9 regionally distributed institutions approved by the MCPP. Energy certification of buildings is a new legal obligation that also relates to households residential buildings and the service sector i.e. all non-residential buildings. Based on calculating the specific annual energy use for heating, buildings are given an energy rating, from A+ for those with the least heat consumption to G for buildings with the largest heat consumption in two reference climates, continental and coastal. The energy rating scale is defined in such a manner that the buildings designed according to current regulations fall under an energy rating C, which means that it is required to significantly improve the energy performance of such buildings so they could be awarded energy ratings B, A or A+. The summary of these general measures for energy efficiency improvements in buildings is presented in Table 20, while detailed descriptions of activities are provided in separate tables for each measure. In addition, these activities are also addressed in Chapters 3.4.2, 3.8, 3.9 and

60 Table 20 Overview of individual general measures for buildings No. B.1. B.2. Title of the energy savings measure Building codes and enforcement Energy audits of heating and airconditioning systems Target enduse New and existing buildings Heating and airconditioning systems in existing buildings Duration Achieved energy savings in 2010 [PJ/ GWh] households: 1.52 PJ (423 GWh) services: 0.64 PJ (177 GWh) Share in sector target 3 for 2010 [%] households: services: Expected energy savings in 2016 [PJ/GWh] households: 0.38 PJ (105 GWh) services: 0.34 PJ (94 GWh) Share in sector target 25 for 2016 [%] households: 5.65 services: N/A N/A N/A N/A Status in relation to 1 st NEEAP Revised considering the planned activities for alignment with EPBD II Starts in the 2 nd NEEAP period Additional notes Under the 1 st NEEAP: - measure for residential sector - measure for services sector (public and commercial) Under the 1 st NEEAP: measures for services sector (public and commercial) This measures also relates to residential buildings B.3. B.4. Energy certification of buildings Increasing the number of nearly zero energy buildings New and existing buildings New buildings and existing ones under renovation N/A N/A N/A N/A households: 0.04 PJ (12 GWh) services: 0.06 PJ (17 GWh) households: 0.60 services: 1.60 Revised considering the planned activities for alignment with EPBD II New measure Under the 1 st NEEAP: measures for services sector (public and commercial) Certification also relates to residential and non-residential buildings Measure plans the construction of new buildings that will have better energy efficiency than required under valid regulations, and incentives for renovation of buildings in order to achieve such energy performance TOTAL: households: 1.52 PJ (423 GWh) services: 0.64 PJ (177 GWh) households: services: households: 0.42 PJ (117 GWh) services: 0.40 PJ (111 GWh) households: 6.25 services : Target for the service sector (public and commercial) defined in the 1st NEEAP is 3.76 PJ for 2016, and 1.25 PJ for 2010; the target for households is 6.72 PJ for 2016 and 2.24 PJ for

61 Title of the measure Building codes and enforcement Measure index B.1 Category Regulations Start: 2008 End:2016 Time frame Planned modifications, supplements, improvements: Measure is revised with actually achieved savings and in line with planned future activities on alignment with the EPBD II. Building codes and their enforcement are efficient tools capable of securing compliance with best practice solutions for the energy efficiency of buildings. Development of regulations for energy efficiency of buildings is closely linked to compliance with the EPBD Description Purpose / short requirements, so in the next period activities based on the EPBD II requirements will be description implemented. Implementation mechanisms include inspections, control of the obligation concerning certification of new buildings before their use, and control of the accuracy of energy certificates Target end-use New and existing buildings (for large renovations) Target group Participants in construction, owners of buildings under renovation Regional National application Implemented activities and achieved results: 1. Establishing the regulatory framework for requirements on energy performance of buildings Implementation information List and description of activities for implementing the measure Physical Planning and Construction Act (Official Gazette 76/07, 38/09, 55/11, 90/11 and 50/12) Technical regulation on rational energy use and heat retention in buildings (Official Gazette 110/08, 89/09) Technical regulation for windows and doors (Official Gazette 69/06) Technical regulation on heating and cooling systems in buildings (Official Gazette 110/08) Technical regulation on systems of ventilation, partial air conditioning and air conditioning of buildings (Official Gazette 03/07) Technical regulation for chimneys in buildings (Official Gazette 03/07) The Act creates the conditions for adopting implementing regulations. The Technical regulation on rational energy use and heat retention in buildings prescribes minimum requirements for energy performance of new buildings and existing ones when they are subject to large reconstructions. Other technical regulations prescribe minimum requirements for construction products, building s technical systems and parts of the building s construction complex of the listed technical systems for buildings, as well as requirements related to their design, performance, usability and maintenance. Future activities: Several grouped activities precede amendments of regulations: 1. Preparation of the national methodology for calculating energy performance of buildings, 2. Changing the methodology for carrying out energy audits of buildings for the purpose of energy certification in order to align it with the methodology for carrying out regular inspections of heating and air-conditioning systems of buildings, 3. Preparation and adoption of the Feasibility study for alternative energy production systems in buildings larger than 1,000 m 2 and the Feasibility study for alternative energy production systems in buildings of up to 1,000 m 2, 4. Definition of reference buildings and nearly zero energy buildings 1. The Act on Amendments to the Physical Planning and Construction Act and the Act on Amendments to the Act on Energy End-Use Efficiency (Official Gazette152/08 and 55/12) were realised within time limits set in the EPBD II (09/07/2012). These amendments primarily relate to transposing a part of EPBD II requirements related to mechanisms, sanctions, and control of issued energy certificates. 2. Amendments of other listed regulations will be realised by the end of Amendments to the Technical regulation on rational energy use and heat retention in buildings will primarily relate to prescribing minimum requirements for energy performance of new and existing buildings, including building s construction units and technical systems and defining of reference buildings and nearly zero energy buildings. 4. Amendments to technical regulations related to technical systems of buildings will relate 61

62 Energy savings Funds and financing sources Implementing authority Monitoring authority (supervision) Energy savings monitoring / measurement method Savings expected in 2010 under 1 st NEEAP Savings achieved in 2010 Expected energy savings in 2016 compared to 2010 Expected impact on energy savings for 2020 compared to 2010 Assumptions Overlapping, multiplying effect, synergy to alignment with the EPBD II. 5. The National Plan for increasing the number of nearly zero energy buildings will be prepared, including the measures and instruments for plan. Total expenditure by the end of 2010: MEPPPC: approximately 1,000,000 HRK (135,000 EUR) Planned funds by the end of 2013: MCPP: planned within the Ministry s budget MCPP (preparatory activities and drafting of regulatory amendments), MCPP (amending the methodology for carrying out energy audits of heating and airconditioning systems of buildings) MCPP (supervision of enforcement of regulations) Monitoring the impacts of this measure shall be carried out by using the EC s recommended BU methods. Energy savings potential of this measure is estimated at 4% of average consumption in residential and service sectors: households: 3.02 PJ in 2016 and 1.01 PJ in services (public and commercial): 1.03 PJ in 2016 and 0.34 PJ in households: 1.52 PJ (423 GWh) services (public and commercial): 0.64 PJ (177 GWh) households: PJ (105 GWh) services (public and commercial): PJ (94 GWh) Savings are a result of stricter requirements of new regulations that will be adopted after Impacts of regulations from 2006 are no longer considered. households: PJ (265 GWh) services (public and commercial): PJ (249 GWh) Savings are a result of stricter requirements of new regulations that will be adopted after Impacts of regulations from 2006 are no longer considered. To calculate savings in energy use for heating, 2006 was assumed as the reference year, since that is the year when the new Technical regulation entered into force and the maximum permitted specific energy use for heating was defined. It ranges from to kwh/m 2 per year for residential buildings, and from to kwh/m 3 per year for non-residential buildings, depending on the building s configuration factor. All residential buildings constructed until 2006 have average energy use for heating in 2006 of around 180 kwh/m 2, while for nonresidential buildings it is somewhat higher and amounts to 190 kwh/m 2. Since 2006, or entry into force of the new Technical regulation, average energy use for heating of 85 kwh/m 2 for residential buildings, or 25 kwh/m 3 for non-residential buildings (107.5 kwh/m 2 ) was prescribed. Since entry into force of the new Technical regulation in 2006 until 2010, million m 2 of residential buildings was constructed, and million m 2 of non-residential buildings in the service sector. Considering the obligation to achieve the objective of nearly zero energy consumption of new buildings in 2020 (2018 for public buildings), it is assumed that by 2016 or 2020 regulations on heat retention will become even stricter. For residential and non-residential buildings, continuous increasing of the strictness of regulations is planned with the purpose of achieving the maximum permitted primary energy consumption in 2012 (2018 for public buildings) at the level of nearly zero energy consumption, which will be defined in an action plan drafted by the competent Ministry. Considering that energy renovation measures include savings during the renovation of buildings, only savings in the construction of new buildings are listed here. This measure is supplemented with the measure B.3 Certification of buildings, which provides energy consumption information to potential end customers, thus directing their selection toward buildings with smaller energy consumption and related costs. Besides that, energy certification of existing buildings will also offer measures for improving energy efficiency, based on which a decision to implement them may be made. 62

63 Title of the measure Energy audits of heating and air-conditioning systems Measure index B.2 Category Regulations Start: 2009 (2011) End:2016 Planned modifications, supplements, improvements: Measure was not systematically implemented in the previous period, other than as part of Time frame the obligation of carrying out energy audits for the purpose of energy certification of buildings and as part of financing the performance of energy audits via EPEEF. Relevant regulations were adopted only at the beginning of 2011, so more significant and results are expected in the next period. Description A large percentage of heating and air-conditioning systems is old, not functioning properly and thus significant amounts of energy are wasted. In line with the EPBD II requirements, Purpose / short regulations were adopted prescribing the obligation of regular inspections of heating and description air-conditioning systems, which will provide users with recommendations for energy efficiency improvements of these systems. Target end-use Heating and air-conditioning systems in existing buildings Target group Users of buildings Regional National application Implemented activities and achieved results: 1. Establishing the regulatory framework for regular control inspections of heating and air-conditioning systems in buildings Ordinance on energy audits of structures (Official Gazette 05/11) Ordinance on authorisations for energy audits of structures (Official Gazette 05/11) The above listed ordinances were adopted under the Act on Energy End-Use Efficiency Implementation information List and description of activities for implementing the measure (Official Gazette 152/08). They prescribe the obligation of carrying out inspections of heating systems in buildings whose boilers have total nominal capacity of 20 kw or more as well as for air-conditioning systems in buildings with total nominal capacity of 12 kw and more. The purpose of inspections is to determine whether these systems are dimensioned, operated and maintained in the manner prescribed in technical documentation and the manufacturer s recommendations, identify their actual energy efficiency and give recommendations for improvements. Inspections do not involve maintenance (servicing) of these systems, because the obligation of regular maintenance is regulated in relevant technical regulations. Inspections may be carried out by persons authorised by MEPPPC for energy audits of buildings with complex technical systems for the purpose of issuing the building energy certificate or by MELE, provided they are qualified in the field of mechanical engineering. The Ordinance prescribes steps for carrying out inspections for each of these systems and annexes provide the contents of reports. For the purpose of cost efficiency of energy audits and inspections system, the rules for inspections are aligned with the rules for energy audits (whether for the purpose of energy management or for the purpose of issuing the building energy certificate).time alignment will be achieved by prescribing the frequency of inspections every five years, so that inspections must be an integral part of energy audits. Only exception are heating systems with boilers larger than 100 kw that represent small combustion plants under regulations governing limit values for emissions of pollutants into the air from stationary sources, for which the obligation of inspection every two years is prescribed. Future activities: 1. In order to reduce costs for energy certification and inspections of heating and airconditioning systems, it is planned to harmonize the methodology for carrying out inspections of heating and air-conditioning systems and the methodology for carrying out energy audits for the purpose of energy certification of buildings. Thus, in the next period, after harmonizing the methodology for energy audits of heating and airconditioning systems in buildings, it is required to harmonize the training programme and conditions for persons performing regular inspections of heating and airconditioning systems with the programme and conditions for persons prescribed in the Ordinance on conditions and criteria for persons who perform energy audits and energy certification of buildings. This harmonization will include amendments to the Ordinance on authorisations for energy audits of structures and the Act on Energy End-Use Efficiency. 2. In the next period it is required to ensure enforcement of the listed obligation through increased inspectional supervision. 3. One of issues is also the lack of data on the number of systems subject to this obligation. Therefore it is necessary to start implementing this obligation in the part of those buildings subject to the obligation of energy certification and energy 63

64 Energy savings Funds and financing sources Implementing authority Monitoring authority (supervision) Energy savings monitoring / measurement method Savings expected in 2010 under 1 st NEEAP Savings achieved in 2010 Expected energy savings in 2016 Expected impact on energy savings for 2020 Assumptions Overlapping, multiplying effect, synergy management (primarily in the public sector). To that end, it is required to collect data on heating and air-conditioning systems in buildings which are granted financial support (especially from EPEEF). Total expenditure by the end of 2010: MELE: within regular activities EPEEF: within the tender for carrying out energy audits Planned funds by the end of 2013/2016: ME and MCPP: within regular activities SIRC: within regular activities EPEEF (co-financing of carrying out energy audits) MCPP and ME- harmonization of regulations Centre tender for energy audits for governmental bodies and on demand of local and regional authorities and firms. Agency tender for energy audits for other building owners (except for those covered by Centre) EPEEF assure finance MCPP (administrative supervision of the enforcement of provisions of the listed ordinances, keeping a database of systems subject to the obligation) SIRC (inspectional supervision of the enforcement of provisions of the listed ordinances) A national methodology was developed for BU monitoring of the impacts of energy audits as a measure of providing information on energy saving potentials. Details are provided in the document Energy savings measurement and verification by applying bottom-up methods. As inspections will generally be an integral part of energy audits, impacts will be caught as integrated impacts of energy audits. Not estimated Not estimated Not estimated Not estimated Energy savings resulting from an energy audit by itself are determined on the basis of evaluated potentials provided in the final energy audit report. It is assumed that at least 5% of these potentials will be realised. Some European recommendations 26 give significantly higher estimates (20% for electricity and 15% for other energy forms), but they will not be used since only the impact of increased awareness of users is taken into account that will result in improved maintenance and management procedures (so called soft measures) which in turn achieve energy savings. The impacts of implemented energy efficiency investment projects will not be considered in the assessment of this measure. This measure may overlap with a number of measures planning the performance of energy audits, such as P.1, P.2, C.1. If an audit/inspection is carried out within the certification of buildings, its impacts are shown within measure B.3, and if they are carried out as an integral part of energy audits for the purpose of energy management, then impacts are shown within appropriate measures. Only in cases where inspection of a system is carried out separately, without carrying out the general energy audit of the building, the impact will be allocated to this measure. 26 Source: EMEEES project, Method 18 Energy audits: 64

65 Title of the measure Energy certification of buildings Measure index B.3 Category Information and mandatory information measures Start: 2010 End:2016 Time frame Planned modifications, supplements, improvements: Measure is revised in line with the planned future activities on alignment with the EPBD II requirements. This measure aims to increase the awareness of building users and transform the market toward increasingly efficient buildings. To achieve full impacts of this measure, it is required to design and implement the programme of informing citizens on the meaning and significance of certification, as well as to plan the and work quality controls for authorised persons performing energy certification. Energy certificates provide information on energy use for heating and proposal of measures for improving the energy performance of all energy systems. Energy certificates for new buildings are issued on the Purpose / short basis of project documentation, while for existing buildings it is required to carry out Description description energy audits. Based on calculating the specific annual heat demand Q H,nd,ref, a building is awarded an energy rating, from A+ rating for the smallest heat demand (Q H,nd,ref 15 kwh/(m 2 a)), to G rating for buildings with the largest energy consumption (Q H,nd,ref > 250 kwh/(m 2 a)) based on two reference climates, continental and coastal, with the division limit of 2,200 degree-heating days. Currently, energy certificates are expressed as the specific annual energy use for heating. Finally, energy certificates should include total energy use of a building to the level of primary energy. Further regulatory amendments will move in that direction. Target end-use New and existing buildings Users of buildings, construction participants, all involved in implementing activities for Target group achieving the goal of increasing energy efficiency of buildings Regional National application Implemented activities and achieved results: 1. Establishing the regulatory framework for energy certification of buildings Implementation information List and description of activities for implementing the measure Physical Planning and Construction Act (Official Gazette 76/07, 38/09,55/11 and 50/12) Ordinance on the energy certification of buildings (Official Gazette 36/10, 135/11) Ordinance on conditions and criteria for persons who perform energy audits and energy certification of buildings (Official Gazette 113/08, 89/09) Methodology for carrying out energy audits of buildings, MEPPPC, June 2009 The investor in a new building shall ensure the building's energy certificate prior to starting its use or prior to its commissioning this obligation refers to all buildings for which an application for issuing an act under which construction can start is submitted after 31 March When selling, renting out or leasing the whole building or part thereof, the owner of the existing building is obliged to obtain and make available to the prospective buyer or renter of the building the energy certificate of the building or part thereof the energy certificate becomes a part of the sale and purchase agreement. Any public buildings subject to public display of the energy certificate must have the drafted and publicly displayed energy certificate at the latest within a period of 36 months from the adoption of the methodology for carrying out energy audits, meaning at the latest by June Any existing buildings which are sold, rented out or leased must have the energy certificate available for inspection of the buyer or tenant at the latest by the date of accession of the Republic of Croatia to the European Union. With the aim of equalizing the quality and methods for carrying out energy audits of buildings, in June 2009 the national Methodology for carrying out energy audits of buildings. Energy audits and energy certification of buildings are performed by for that purpose specifically trained and authorised experts qualified in the field of architecture, civil engineering, mechanical engineering or electrical engineering. Professional basic training and mandatory in-service training of persons who perform energy audits and/or energy certification of buildings is conducted by universities, colleges, institutes and professional organisations which have the approval of the MEPPPC or MCPP to perform those activities. 2. A total of 1,785 building energy certificates were issued (by 31 May 2012). 3. Authorisations for performing energy audits and energy certification of building were given to 224 legal and 187 natural persons by 31 May Future activities: 1. Amendments to regulations will relate to prescribing minimum requirements for energy performance of buildings, including primary energy consumption, as well as 65

66 Energy savings Funds and financing sources Implementing authority Monitoring authority (supervision) Energy savings monitoring / measurement method Savings expected in 2010 under 1 st NEEAP Savings achieved in 2010 Expected energy savings in 2016 Expected impact on energy savings for 2020 Assumptions Overlapping, multiplying effect, synergy conditions and manner of implementing independent control of issued energy certificates. In addition to regulatory amendments, it is planned to complete the software for a database which will support the of this task. The planned time limit is the time limit prescribed in the EPBD II (09/07/2012). 2. Amendments to the Ordinance on conditions and criteria for persons who perform energy audits and energy certification of buildings are planned for the purpose of ensuring stronger and independent control over the work of persons authorised for energy certification of buildings and to prescribe conditions for persons who perform independent control of the performance of energy audits and energy certification of buildings. Similarly, in order to rationalize resources, it is planned to harmonize the training programme and conditions for persons performing regular inspections of heating and air-conditioning systems with the competent ME, within which it is also planned to amend the Ordinance on authorisations for energy audits of structures within the amendments to the Act on Energy End-Use Efficiency (Official Gazette152/08 and 55/12). 3. Starting an information-education campaign or special programmes on the meaning and significance of building energy certificates citizens need to be informed of their rights and duties related to building energy certificates. In addition to the Internet, it is proposed to finance targeted advertising in printed media and radio and television. Total expenditure by the end of 2010: MEPPPC: listed under B.1 Planned funds by the end of 2013: MCPP: planned within the Ministry s budget EPEEF: co-financing of information-education campaign MCPP (regulatory amendments, initiating the information-education campaign or programmes on energy certification) Agency (system for monitoring of measures and energy savings calculations) MCPP (administrative supervision of the enforcement of provisions of the listed ordinances and sanction mechanisms, delivery of data on issued authorisations to the central database) Institutions (legal persons) authorised for quality control of issued energy certificates A national methodology was developed for BU monitoring of the impacts of energy audits as a measure of providing information on energy saving potentials. Details are provided in the document Energy savings measurement and verification by applying bottom-up methods and the Ordinance on monitoring, measurement and verification of energy savings. As inspections are an integral part of energy audits, impacts will be evaluated by using this method. Not estimated Not estimated Not estimated Not estimated Energy savings resulting from an energy audit by itself are determined based on evaluated potentials provided in the final energy audit report. It is assumed that at least 5% of these potentials will be realised. Some European recommendations 27 give significantly higher estimates (20% for electricity and 15% for other energy forms), but they will not be used since only the impact of increased awareness of users is taken into account that will result in improved maintenance and management procedures (so called soft measures) which achieve energy savings. The impacts of implemented energy efficiency investment projects will not be considered in the assessment of this measure. This measure may overlap with a number of measures planning the performance of energy audits, such as P.1, P.2, C.1. If an audit is carried out within the certification of buildings, its impacts are shown within this measure, regardless of their affiliation to other measures. 27 Source: EMEEES project, Method 18 Energy audits: 66

67 Title of the measure Increasing the number of nearly zero energy buildings Measure index B.4 Category Regulations; financial instruments Start: 2012 End: 2016 (2020) Time frame Planned modifications, supplements, improvements: New measure in line with the planned activities on alignment with EPBD II requirements. EPBD II calls for an introduction of even stricter requirements related to energy performance of buildings. Member States are asked to prepare national plans for increasing the number of nearly zero energy buildings and to report regularly to the European Commission. The public buildings sector must take a leading role in the field of Purpose / short Description energy efficiency in buildings and set ambitious goals for public buildings. description EPBD II asks that by 31 December 2020 all new buildings must have nearly zero energy consumption and that by 31 December 2018 all new public buildings must be nearly zero energy buildings. The public sector should support energy renovation in the standard of nearly zero energy buildings. Target end-use New buildings and existing ones under renovation Target group Participants in construction and owners of buildings under renovation Regional National application Implementation information Energy savings List and description of activities for implementing the measure Funds and financing sources Implementing authority Monitoring authority (supervision) Energy savings monitoring / measurement method Savings expected in 2010 under 1 st NEEAP Savings achieved in 2010 Expected energy savings in 2016 Expected impact on energy savings for 2020 Assumptions Overlapping, multiplying effect, synergy Future activities: It is required to prepare the national plan for increasing the number of nearly zero energy buildings and design an incentive system for participants in construction to build new buildings that have better energy performances than those prescribed in regulations i.e. buildings constructed according to the nearly zero energy standard. The incentive system shall be designed in the plan by the MCPP in cooperation with other sector bodies, and shall be implemented by the Agency. It is expected that the incentive system scheme will be established by the end of 2012, and the start of its is expected in EPEEF will co-finance the plan's. It is not possible to estimate funds Potential financing sources: MCPP budget, EPEEF, HBOR, commercial banks MCPP plan preparation Agency and EPEEF in coordination with Centre incentive scheme establishment and MCPP Monitoring the impacts of this measure shall be carried out by using the EC s recommended BU method for subsidising buildings with better energy performance than prescribed. / / households: PJ (12 GWh) services (public and commercial): PJ (17 GWh) households: PJ (18 GWh) services (public and commercial): PJ (25 GWh) Considering the obligation to achieve the objective of nearly zero energy consumption of new buildings in 2020 (2018 for public buildings), it is assumed that by 2016 or 2020 regulations on energy performance of buildings will become even stricter until achieving the nearly zero energy standard of construction in 2018,or The savings target was set on the basis of an assumption that 10 percent of new buildings will have energy use for heating of less than 15 kwh/m 2 already in This measure is supplemented with the measure Certification of buildings, which provides energy consumption information to potential end customers thus directing their selection toward buildings with smaller energy consumption and related costs. It is also supplemented with measures of energy renovation of buildings, although there are no overlaps. In order to achieve a multiplying effect and get investors interested in constructing nearly zero energy buildings, it is required to regularly present to the public completed projects and benefits they bring to their owners. It is also required to develop financial mechanisms to subsidise such construction. 67

68 Measures in households Households participate with 28.7% in the total energy consumption in Croatia. Natural gas is a dominant energy form with 31.6%, followed by electricity with 30.7% and then traditional fire wood that still has a high share of 15.8% as well as liquid fuels with 13.8%. The share of heat in the total sector demand is relatively small, around 8.1%. [28] Energy consumption movements in households in the period are presented in Figure 6 (Chapter ). Compared to 2007, energy consumption in households grew 11.23% with an annual growth rate of 3.61% (Table 21). Table 21 Energy consumption in households in the period * 2010/ Energy use in PJ % households *Energy consumption for 2010 is estimated Figure 7 presents the energy balance of a typical household [29]. It is clear that the largest share of energy is spent on the heating requirements, especially for space heating, so in this NEEAP emphasis is placed on measures to reduce such energy consumption % 2.87% 12.44% 56.44% 10.67% Space heating DHW Cooking Lighting Appliances Figure 7 Energy balance of average households In the previous three-year period, the activities in this sector were primarily focused on raising the awareness of citizens on the need for energy management and benefits that energy efficiency brings. The project Removing Barriers to Energy Efficiency in Croatia implemented by UNDP played a very important part. A comprehensive three-year information-education campaign directed at the general public was carried out within the project. With the programmes in the public sector, especially the project Systematic energy management in cities and counties, a network of EE info points was established where citizens may be informed about energy efficiency improvement options (more information provided in description of the measure P.1 in Chapter and in Chapter ). In view of the fact that around 56% of energy in households is spent on space heating, in the next period priority will be given to measures focused on improving thermal insulation of buildings as well as on improving 28 All provided data is for 2009, extracted from the ODYSSEE database for Croatia and the document Annual energy report Energy in Croatia MELE, Zagreb All data extracted from the ODYSSEE database for

69 the efficiency of heating systems in buildings, so this 2 nd NEEAP defines a new measure Energy renovation of residential buildings (measure R.5) under which it is planned to establish a financial incentive scheme for natural persons owners of family houses as well as the continuation of the programme concerning LPG use on islands. Energy renovation of residential buildings is set very ambitiously, aiming at renovating up to 3% of the housing stock per year. Without strong institutional support, clearly assigned responsibilities and secured financial sources, it will not be possible to achieve this target. Likewise, without this measure it will also be very hard to achieve the national target in 2016 as well as in 2020 and therefore building renovation programmes must be a priority in the next period and cooperation must be established between competent state bodies, LRSGUs, principally counties, building managers and owners of houses and apartments must be informed of benefits of such projects. The Agency is competent for the of the programme, while financial sources will be secured by EPEEF in cooperation with HBOR and commercial banks as well as by using funds from EU funds. Considering the huge investments of over 5 billion HRK per year, it is necessary to include the ESCO market and commercial banks in the of this programme. Household appliances account for about 17% of the total energy consumption in households. Progress was achieved in the selection of more efficient appliances by introducing the energy efficiency labelling scheme for 7 groups of appliances since Unfortunately, the impacts of this measure may not be assessed exactly because of the non-existent system for monitoring the market situation and quantity of sold appliances. Even better results may be achieved by coordinated promotional activities and financial incentives for purchasing the most efficient appliances on the market with simultaneous removal from use of existing, old and inefficient appliances. Moreover, it is required to ensure that labels provide accurate information, which requires the establishment of a testing laboratory. At the moment Croatia does not have an accredited testing laboratory for identifying the energy efficiency of household appliances and other products. Assistance in establishing such a laboratory should also be sought from EU pre-accession instruments (IPA) [30] and other forms of financing through EU funds. The summary presentation of existing and new general measures for energy efficiency improvements in buildings is provided in Table 22 - The overview of individual measures in households, while detailed descriptions are provided in separate tables for each measure. 30 Assistance for the establishment of such a laboratory was already requested within the IPA programme, but was not realised due to the lack of funds. In the next period it is definitely necessary to apply for assistance in establishing the testing laboratory. 69

70 Table 22 - Overview of individual measures in households No. R.1. Title of the energy savings measure Info campaigns, activities, additional education-training and network of EE info centres Target end-use Existing residential buildings Duration Achieved energy savings in 2010 [PJ/ GWh] Share in sector target 3 for 2010 [%] Expected energy savings in 2016 [PJ/GWh] Share in sector target 31 for 2016 [%] N/A N/A N/A N/A Status in relation to 1 st NEEAP National media campaign will no longer be implemented Additional notes Under the 1 st NEEAP: - measure for residential sector measure for services sector (public and commercial) There is a link with measure P.1 R.2. R.3. R.4. R.5. Energy labelling of household appliances Financial support programme for natural persons investing in solar heating systems and other EE measures LPG and solar energy use on islands programme Plan for energy renovation of residential buildings TOTAL 32 : Household appliances Energy consumption in residential buildings, energy production in buildings by using RES and heat pumps Heating requirements of island households Existing singlefamily houses and multi-family buildings (2016) N/A PJ (0.91 GWh) PJ (0.16 GWh) N/A / / PJ (1.07GWh) PJ (230 GWh) 0.11 PJ (29.45 GWh) PJ (1.36 GWh) 7.61 PJ (2.114 GWh) 8.56 PJ ( GWh) Measure revised by introducing financial incentives, but also due to amendments of EU directives 1.64 Measure revised 0.07 Implemented as planned New measure It is required to ensure monitoring of quantities of appliances on the market in view of their energy efficiency rating, in order to more precisely evaluate the impacts of this measure County, regional energy agencies and co-financing; primarily to support the use of solar energy for preparation of DHW Measure was not explicitly defined in the 1 st NEEAP although it was implemented as planned under the special Programme; The Programme needs to be revised and continued until 2016 Measure demands large investments Agency implements the programme, co-financing by EPEEF from own funds, ESCOs and EU funds need to be included 31 Target for the residential sector is 6.72 PJ for 2016, and 2.24 PJ for Total savings realised in the residential sector are larger and presented in Chapter 3.3. They result from general measures in building construction as well as measures implemented by energy undertakings. Here we list only the results and impact assessments of measures directly related to households. 70

71 Title of the measure Info campaigns and network of EE info centres Measure index R.1 Category Information and mandatory information measures Start: 2007 End:2013 Planned modifications, supplements, improvements: Time frame Extensive national campaign will no longer be implemented; targeted campaigns will be implemented in conjunction with financial incentives for particular measures; all other activities will continue to be implemented. Description Implementation information Purpose / short description Target end-use Target group Regional application List and description of activities for implementing the measure Funds and financing sources Info campaigns try to raise the awareness of target groups on benefits and options of energy efficiency improvements. The most effective campaigns are carried out within a limited period and focused on specific activities, e.g. thermal insulation of buildings, more efficient lighting, etc. This measure also plans the establishment of EE info centres in city and county administrations where energy advisors will provide citizens on their request free advice on options for energy and money savings in their home. Targeted educational activities need to include all stakeholders in achieving the energy efficiency improvement objective. Household appliances; all devices spending energy in any way Owners of residential units (citizens); appliance purchase decision-makers in other sectors National Implemented activities and achieved results: 1. National media campaign via television and radio advertising and outdoor billboards National media campaign implemented in 2007, 2008 and 2009 Information level of citizens concerning the meaning of energy efficiency and possibilities of applying energy efficiency measures for the purpose of reducing energy consumption and improving life quality grew from 27.9% in 2007 to 45.1% in Campaign in local media (more detailed description provided under measure P.1) 3. National info centres for energy efficiency On 4 November 2009 opened in Zagreb; represents a central point for informing citizens, exhibits leading energy efficient products and systems; citizens questions are expertly answered by energy advisors. 4. Free info phone and brochures Free info phone Brochures: A challenge weighing 1 tonne of CO2 and 200 EE advices. 5. Internet activities (web page, Facebook) Thematic web page ( with advices for efficient energy use, energy efficiency measures by type and other useful publications Facebook profile of Gašpar Energetid (main character in the campaign) 6. Educational activities focused on children Cartoon Think of Tomorrow school lessons Think of Tomorrow Future activities: Activities 2-6 will continue in the next period. Info points at local level (Activity 2) will further be established within measure P.1. It is particularly required to intensify the children-oriented activities (Activity 6) and in cooperation with the competent ministry (MSES) design a programme for including energy-related issues into lesson plans on all levels. The general national media campaign (Activity 1) will no longer be implemented. Instead, targeted activities focused on individual user groups and/or particular forms of energy end-use will be carried out. Such activities must be supported by financial incentives. Each co-financing programme introduced by EPEEF according to the measures defined in this NEEAP must be supported by strong promotional activities. It is required to establish additional education-training activities for target groups (intended for project designers, planners and other stakeholders in achieving the objective of energy efficiency improvement). It is required to ensure the education of project designers in application of high efficiency alternative energy supply systems, especially of decentralised RES use systems. The Agency and EIHP will implement the promotion of measures from NEEAP according to the detailed programmes. Within measures P.1 and P.2, UNDP and EPEEF need to continue the co-financing of all such activities initiated by other stakeholders, particularly civil society organisations that enjoy the public s trust. Total expenditure by the end of 2010: UNDP/GEF: 2,000,000 HRK (270,000 EUR) EPEEF:9,684,300 HRK (1,310,000 EUR) 71

72 ME:150,000 (20,270 EUR) Planned funds by the end of 2013: EPEEF: ensure funds for the promotion of measures defined in NEEAP Energy savings Implementing authority Monitoring authority (supervision) Energy savings monitoring / measurement method Savings expected in 2010 under 1 st NEEAP Savings achieved in 2010 Expected energy savings in 2016 Expected impact on energy savings for 2020 Assumptions Overlapping, multiplying effect, synergy UNDP project team within the SEM project (measure P.1) and HiO (measure P.2) Agency/EIHP in coordination with Centre - design and of new activities EPEEF- provision of co-financing TRAINING PROGRAMME HOLDERS for target groups with the purpose of EE improvement ME MCPP Monitoring of the impacts of this measure is carried out by using the EC s recommended TD indicators for the residential sector (P1-P5). This measure will also have impacts in other sectors, especially services, so the impacts will also be calculated there with TD indicators (P6 and P7). It is important to ensure that prior to the of each info campaign a market survey is carried out in order to show the impacts by repeating the same survey after implementing the campaign. Energy savings potential of this measure is estimated at 2% of average sector consumption (measure uses the large potential of measures with extremely low investment costs). This is approximately equal to 1.51 PJ in 2016 and 0.60 PJ in The estimate includes all forms of energy. Not estimated Not estimated Not estimated Although the 1 st NEEAP provides indicative estimates for energy savings related to this measure, practice has shown that impacts of this measure are impossible to isolate and that it is best monitored by using TD indicators. For that reason estimates of this measure s impacts are no longer provided. This measure overlaps with the measure P.1 Systematic energy management in cities and counties through which the activities of local promotion and establishment of EE advisory centres for citizens will continue to be implemented. 72

73 Title of the measure Energy labelling of household appliances and energy standards Measure index R.2 Category Information and mandatory information measures; Financial instruments Start: 2005 End: 2016 Time frame Planned modifications, supplements, improvements: Measure is revised in line with the planned future activities on alignment with the EPBD II requirements. Description Implementation information Purpose / short description Target end-use Target group Regional application List and description of activities for implementing the measure In 2006 Croatia introduced the obligation of labelling energy efficiency for seven appliance groups. Energy labels provide customers with information on energy consumption of that appliance and direct their selection toward more efficient ones. Additionally, by timely adoption of eco-design requirements it is required to ensure that products placed on the Croatian market are only products that comply with EU regulations. Existing residential buildings Owners of residential units (citizens) National Implemented activities and achieved results: 1. Adoption and enforcement of regulations on energy labelling of household appliances Ordinance on energy efficiency labelling of household appliances (Official Gazette 133/05, 130/07 ) was initially adopted in 2005, and amended in 2007, so the energy efficiency labelling scheme in Croatia exists since 2006 in line with Directive 92/75/EEC and its implementing directives The Ordinance is enforced under the supervision of the State Inspectorate (for example, only 7 violations in which distributors did not clearly place the label were recorded in 2007) 2. Adoption and enforcement of regulations on ecodesign requirements for energyrelated products Act on Energy End-Use Efficiency (Official Gazette 152/08) prescribes the adoption of general requirements for eco-design of products as well as specific requirements for particular product groups, under which the following regulations were adopted: o Ordinance on determining ecodesign requirements for energy-related products (Official Gazette 97/2009) o Ordinance on energy efficiency requirements for fluorescent lighting ballasts (Official Gazette 32/2009) o Ordinance on efficiency requirements for new hot-water boilers fired with liquid or gaseous fuels (Official Gazette 135/2005) o Ordinance on energy efficiency requirements for household electric refrigerators, freezers and combinations thereof (Official Gazette 135/2005) Future activities: 1. Regulatory framework for energy labelling of energy-related products will be amended and aligned with Directive 2010/30/EU and its delegated acts by the end of 2011 and continuously with development of EU regulations 2. Regulatory framework for ecodesign of products will be aligned with Directive 2009/125/EC and its implementing regulations by the end of 2011 and continuously with the development of EU regulations (it is required to adopt regulations for all devices covered by EU regulations, such as electric motors, laundry washers, lighting fixtures, etc.) 3. Related to the requirements of these directives, it is required to establish a testing laboratory able to identify the accuracy of information declared on energy efficiency labels as well as to establish compliance with eco-design requirements for products o Financial support for establishing such a laboratory was already asked from the European Commission within IPA programme and the request should be repeated in the next tender because of necessary compliance with obligations prescribed by EU directives o Support for establishing such a laboratory must be ensured by ME and EPEEF (only support for establishing the laboratory, not for testing of appliances) 4. Improve the market monitoring system i.e. quantities of products in view of their energy efficiency rating This will be achieved by the legal obligation of appliance suppliers to submit the required information to the ME In addition, it is required to ensure funds for periodical market research (surveys) in order to gain insight into actual situation and profiles of using particular appliances in households this should be implemented and funds secured by the ME 5. EPEEF should establish a programme for co-financing the purchase of most efficient 73

74 Energy savings Funds and financing sources Implementing authority Monitoring authority (supervision) Energy savings monitoring / measurement method Savings expected in 2010 under 1 st NEEAP Savings achieved in 2010 Expected energy savings in 2016 Expected impact on energy savings for 2020 Assumptions Overlapping, multiplying effect, synergy appliances on the market as replacement for old appliances removed from use EPEEF should implement this programme in cooperation with commercial banks or electricity suppliers Financial support may be realised on the basis of an invoice for the purchased appliance, the appliance s energy efficiency label or information sheet listing its energy efficiency rating and on the basis of a certificate of disposal of the appliance as electrical waste EPEEF in cooperation with the ME is obliged to elaborate these programmes in detail by the end of 2011 and start their in 2012 and 2013 Based on the results achieved by 2013, it will be required to decide on continuation of the programme Total expenditure by the end of 2010: / Planned funds by the end of 2013: ME (regulations): within regular activities (Activities 1, 2 and 4) IPA and Končar Elektroindustrija d.d. (for establishing a test laboratory): 1,500,000 HRK (200,000 EUR) (Activity 3) commercial banks and/or electricity suppliers with EPEEF co-financing (cofinancing the purchase of high efficiency appliances: 10,000,000 HRK (1,350,000 EUR) (Activity 5) ME improvement of the regulatory framework and establishment of the laboratory; EPEEF establishing the scheme for co-financing the purchase of most efficient products ME, SIRC Monitoring of the impacts of this measure is carried out by using the EC s recommended TD indicators for the residential sector (p4). For programmes established by EPEEF it is required to apply the EC s BU methods together with the use of national reference values. Energy savings potential of this measure is estimated at 5% of average sector consumption of electricity, which is approximately equal to 1.13 PJ in 2016 and 0.51 PJ in Not identified 0.83 PJ (230 GWh) 1.34 PJ (372 GWh) Although the 1 st NEEAP provides indicative estimates for energy savings related to this measure, due to the lack of data on the quantities of appliances placed on the market and in use according to their energy efficiency rating, it was not possible to assess savings with TD indicators or with the BU method. The BU method will be used to monitor the successfulness of the co-financing scheme for purchase of new appliances. Detailed description of this method based on the EC s recommendations can be found in the document Energy savings measurement and verification by applying bottom-up methods. TD indicators will be used to monitor the overall impact of the scheme concerning energy efficiency labelling of appliances. Funds from commercial banks with co-financing of interest rates by EPEEF are estimated on the basis of the objective of 20,000 replaced appliances in the next two years and subsidies in average amount of 500 HRK per appliance. The achievement of this objective could result in savings of around 1.5 GWh (assuming that the dominant appliance will be refrigerators which under the BU method have the annual savings reference value of 75 kwh/year). However, there will be significantly more replaced appliances due to already visible market transformation (devices with an energy efficiency rating below B are hard to find on the market), so the expected savings will be much higher. When taking into account dominant household appliances, indicative savings from replacement of appliances may be estimated at around 200 kwh per household. This measure overlaps with the measure R.3 Financial support programme for natural persons investing in energy efficiency. EPEEF must ensure that the impacts of these measures are recorded separately. 74

75 Title of the measure Financial support programme for natural persons investing in solar heating systems and other EE measures Measure index R.3 Category Financial instruments Start: 2009 End:2016 Planned modifications, supplements, improvements: Strong cooperation between EPEEF and LRSGUs is planned in order to ensure incentives for natural persons. The measure was revised and priority placed on supporting the Time frame replacement of existing and installation of new energy efficient windows, the increase of thermal performance of the building envelope, the use of heat pumps in heating systems as well as of geothermal heat pumps, the use of solar heating systems for preparation of domestic hot water (DHW) and the installation of biomass boilers for heating and hot water. Description Purpose / short description Target end-use The objective of this measure is to ensure financial support to natural persons for investment in energy efficiency and RES. The Programme shall be developed by the Agency/Centre in cooperation with LRSGUs. Additionally, this measure also includes the establishment of a financial incentive scheme for the use of RES in heat production, namely through special subordinate regulations - Regulation on financial incentives and Ordinance on acquiring the status of eligible heat producer. All energy efficiency measures and RES use (solar heating systems, but also heat pumps, biomass) Owners of residential units (citizens) Target group Regional application National, in cooperation with counties Implemented activities and achieved results: 1. EPEEF actions EPEEF established cooperation with 4 counties that were used to subsidise the installation of solar heating systems and heat pumps in households in those counties o A total of 195 projects concerning the installation of solar heating systems in households were co-financed with total achieved energy savings of 2.32 TJ (0.65 GWh) and around 1,000 m 2 of installed sun collectors o A total of 5 projects concerning the installation of heat pumps were cofinanced with total achieved energy savings of 0.36 TJ (0.10 GWh) 2. Adoption and enforcement of regulations on subsidising heat production from RES List and The planned regulatory framework was not established in the previous period description of Future activities: activities for 1. Actions of the Agency/Centre and LRSGUs (regional energy agencies) implementing the It is required to expand the cooperation to all 21 counties and conclude with them measure co-financing agreements related to the following activities in households: o Use of solar heating systems for DHW preparation o Renovation of the building envelope by installing thermal insulation of family Implementation houses that complies with minimum requirements of regulations, while information additional incentives are realised if better energy performance of the house is achieved than the regulations prescribe o Renovation of the building envelope by replacing old windows with new (with U-values lower than the prescribed) o Renovation of heating systems, installation of solar heating systems, installation of heat pumps 2. Adoption and enforcement of regulations on subsidising heat production from RES Total expenditure by the end of 2010: EPEEF: 1,080,000 HRK (146,000 EUR) Planned funds by the end of 2013 amount to HRK 626,600,000: Funds and MCPP and ME - 100,000 (programme preparation) financing sources EPEEF: 188,000,000 HRK (25,133,690 EUR) (30%) LRSGUs: N/A Commercial banks and citizens; 438,500,000 HRK (69.98%) Implementing Agency/Centre, LRSGUs, regional energy agencies in coordination with Centre, EPEEF authority assure co-financing Monitoring authority MCPP (supervision) Energy savings Energy savings Monitoring of the impacts of this measure is carried out by using the EC s recommended 75

76 monitoring / measurement method Savings expected in 2010 under 1 st NEEAP Savings achieved in 2010 Expected energy savings in 2016 Expected impact on energy savings for 2020 Assumptions Overlapping, multiplying effect, synergy BU methods with established national reference values. Details are provided in the document Energy savings measurement and verification by applying bottom-up methods. Priority is to subsidise the installation of solar heating systems for DHW preparation. To monitor the impacts of this measures the BU method for solar systems according to EC s recommendations will be used. Incentive beneficiaries are obliged to submit to the Agency or LRSGU information on the surface and type of installed collectors ((plate or pipe), as well as the efficiency of the system for preparation of domestic hot water that was used prior to the installation of solar collectors. It is recommended that the Agency or LRSGU should oblige its beneficiaries to provide detailed reports on every project in terms of achieved savings resulting from reduced consumption of other energy products. In doing so, it is required to ensure that impacts on residential buildings up to 400 m 2 and multi-family buildings are monitored separately. Agency or LRSGUmust provide Centre with information for purpose of measure and verification of realized savings. Energy savings potential of this measure is estimated at 2% of average sector consumption. This is approximately equal to 1.51 PJ in 2016 and 0.50 PJ in The estimate includes all forms of energy TJ (0.75 GWh) 106 TJ (29.45 GWh) 106 TJ (29.45 GWh) Although the 1st NEEAP provides indicative estimates for energy savings related to this measure, due to the lack of detailed plans and uncertainties related to the response of counties and citizens, it is not possible to give precise estimates of potential savings for the next period. However, it is assumed that all counties will establish cooperation with the Agency for installation of solar heating systems and the objective is around 40,000 m 2 of total installed collectors in Savings in 2016 and 2020 are estimated on the basis of the assumed efficiency of the existing systems for hot water preparation of 89% and annual average production of solar heat collectors of 600 kwh/m 2 (it is conservatively estimated that collectors will be installed equally in coastal and continental Croatia and that plate collectors will be dominant). Although it is planned within the measure to also co-finance other activities, they were not considered in the estimate. However, monitoring of the savings achieved by those activities will also be ensured (e.g. installation of heat pumps). Savings achieved by complex renovation of family houses are assessed under measure R.5. BU methods will be used to monitor the successfulness of the incentive scheme for natural persons, in accordance with the European Commission s recommendations. Those methods were also used to assess the impacts of co-financed projects of installing solar heating systems. A national methodology was developed for heat pumps. Detailed description of the methodology is provided in the document Energy savings measurement and verification by applying bottom-up methods. This measure overlaps with the measure R.2 Energy labelling of household appliances and energy standards. It must be ensured that the impacts of these measures are recorded separately. Activities within this measure related to the energy renovation of family houses must be integrated into the measure R.5 Energy renovation of residential buildings in a way to prepare a single renovation programme. In doing so, it is required to ensure that impacts on family houses and multi-family buildings are monitored separately. 76

77 Title of the measure LPG and solar energy use on islands programme Measure index R.4 Category Financial instruments Start: 2008 End:2012 (2016) Time frame Planned modifications, supplements, improvements: After the expiry of the Programme, it is required to analyse in detail its impacts, revise it in view of identified shortcomings and ensure its continuation until The objective of this measure is primarily to ensure the availability of basic energy products to citizens in all parts of the Republic of Croatia. Additionally, use of LPG is supported as it is the only energy product in Croatia whose production surpasses consumption. Finally, LPG on islands is an excellent option both environmentally and economically because it Description Purpose / short eliminates the consumption of fuel oil and electricity for heating requirements of description households (energy consumption structure in islands is: 32% wood, 30% electricity, 29% fuel oil and around 8% LPG). The installation of new equipment for LPG use improves the efficiency of heating and DHW systems, while additional energy savings are achieved in conjunction with solar heating systems. Target end-use Space heating and DHW preparation systems in households Target group Owners of residential units (citizens) Regional National, in cooperation with counties application Implementation information Energy savings List and description of activities for implementing the measure Funds and financing sources Implementing authority Monitoring authority (supervision) Energy savings monitoring / measurement Implemented activities and achieved results: 1. EPEEF actions co-financing 90% of the costs of conceptual design for the project of installing a small LPG tank, 60% of the tank installation costs as well as 60% of the costs of drafting project documentation of thermo-technical installations and setting up the LPG use system or combined LPG-solar energy system. A total of 33 projects in households were co-financed; achieved energy savings amount to 0.57 TJ (0.16 GWh) Additionally, within the Programme 5 projects were co-financed in the public sector (achieved savings of 1.39 TJ (0.39 GWh, presented under measure H.1, and 1 project in the commercial services sector (achieved savings of 1.62 TJ (0.45 GWh), presented under measure C.1) The number of co-financed projects is less than planned, and the principal problem is unregulated property-legal relations due to which, according to the Fund s rules, it is not possible to realise the co-financing Future activities: 1. Programme needs to be implemented in the planned way by 2012 when it is required to analyse its impacts and perform revision in order to remove identified shortcomings. Revision shall be performed jointly by MMTC and ME in cooperation with LPG distributors experience. 2. The revised Programme needs to be implemented in the next period by 2016 with annual reporting of the achieved results. Initial proposals for revision are the following: Design and implement a strong promotion campaign in cooperation with island LRSGUs and LPG distributors. Simplify procedures for the allocation of funds Set quantitative targets that want to be achieved by the programme Ensure monitoring of the impacts in terms of the achieved energy savings Expand actual of the Programme to the public sector and commercial services on islands 3. co-financing the fee for LPG tanks Total expenditure by the end of 2010: EPEEF: 3,517,000 HRK (475,300 EUR) MMTC: 6,942, HRK (931, 800 EUR) Planned funds by the end of 2013: EPEEF: 5,000,000 HRK (675,700 EUR) ME: additional funds secured within the ME budget MMTC: additional funds secured within the MMTC budget MMTC, ME, EPEEF, authorised LPG distributors in coordination with Centre MMTC, ME Monitoring of the impacts of this measure is carried out by using the EC s recommended BU methods with established national reference values. Methods are combined for replacement of heating systems, replacement of DHW preparation systems and solar 77

78 method Savings expected in 2010 under 1 st NEEAP Savings achieved in 2010 Expected energy savings in 2016 Expected impact on energy savings for 2020 Assumptions Overlapping, multiplying effect, synergy heating systems. Details are provided in the document Energy savings measurement and verification by applying bottom-up methods. / 0.57 TJ (0.16 GWh) 4.89 TJ (1.36 GWh) 7.77 TJ (2.16 GWh) Achieved savings were calculated based on the actual data for each individual project and by use of the recommended BU methods. Savings estimates for 2016 are based on the assumption that the Programme will annually include 50 households, or 300 households more by the end of Evaluation of former projects provides information on average realised savings of around 4 MWh/household, so the expected savings amount to 1.20 GWh (4.32 TJ). Considering the life cycle of equipment in heating systems and solar collectors, all savings will be alive until Expected savings in 2020, assuming the Programme s continuation, are based on 200 more households included in the Programme. This measure also had impacts in the public and commercial services sectors, and the achieved savings are presented under those sectors. 78

79 Title of the measure Plan for energy renovation of residential buildings Measure index R.5 Category Financial instruments Start: 2011 Time frame End:2016 (2020) Planned modifications, supplements, improvements: New measure Description Implementation information Energy savings Purpose / short description Target end-use Target group Regional application List and description of activities for implementing the measure Funds and financing sources Implementing authority Monitoring authority (supervision) Energy savings monitoring / measurement method Savings expected in 2010 under 1 st NEEAP Savings achieved in 2010 Expected energy savings in 2016 This measure plans the designing of a detailed action plan for renovation of existing residential buildings until 2016 (2020) and the of that plan. Under the plan, focus will primarily be placed on residential buildings up to 400 m 2 and multi-family buildings constructed before 1987 and their renovation to the low-energy standard, thus achieving an energy rating B, A or A+. The measure prescribes energy certification before and after energy renovation. Existing residential buildings Owners of residential units (citizens; companies managing multi-family buildings National Future activities: 1. Preparation of a multi-year action plan for energy renovation of residential buildings by 2016 (2020) MCPP and ME, obliged to initiate the preparation of such a plan by the end of 2011 Plan must be prepared in the first half of 2012 Preparation of the plan needs to include building managers in order to identify primary multi-family buildings for renovation; during the plan s preparation it is also required to carry out information and education of tenants in order to get their approval for proposed interventions Preparation of the plan needs to also include counties and prepare a programme for renovation of priority residential buildings of up to 400 m 2 in each county (additional criteria for prioritising may be, for example, social status, veterans and returnees, etc.) Implementation of the programme is planned until 2016 EPEEF may co-finance interest rates of commercial loans EPEEF is obliged to plan for all required funds for co-financing by the end of 2016 in line with annual financial plans. 1. Implementation of the plan Realisation of the plan must begin at the latest in the second half of 2012 and last until 2016, with possibility of its continuation until 2020 Execution of the plan must be monitored annually in terms of spent funds and achieved energy savings and CO 2 emissions The annually planned funds for the total price of renovation are estimated at HRK 1,500.00/m 2 and amount to HRK 2.25 billion. MCPP: 100,000 HRK (13,354 EUR) for programme preparation Annual : 2,250,100,000 HRK (300,000,000 EUR) EPEEF: 10,000,000 HRK (1,300,000 EUR) EU funds, com. banks, EIB: 2,240,000,000 HRK (298,000,000 EUR) ESCO companies ESCO market needs to be included in programme Detailed needs and financing sources will be defined in the Programme. MCPP detailed plan preparation Agency and LRSGUs in coordination with Cntre plan EPEEF ensuring the required co-financing MCPP Monitoring of the impacts of this measure is carried out by using the EC s recommended BU methods (method 2.1 renovation of existing residential and service buildings). Input data must be identified for each individual building. / / 7.61 PJ (2,114 GWh) 79

80 Expected impact on energy savings for 2020 Assumptions Overlapping, multiplying effect, synergy PJ (3,554 GWh) In 2010 the Republic of Croatia had a total of million square metres of usable building surfaces, according to the data of the Croatian Bureau of Statistics, census 2011, and data on the total issued building permits and constructed buildings in the period , of which heated usable surfaces amount to 66.25%. It is assumed that the energy renovation of buildings will be based primarily on buildings constructed before 1987, with average heat consumption of kwh/m 2. Assuming that every year 1% of building surfaces are renovated, or approximately 1,5 million m 2 (a very ambitious goal which may achieve the required energy savings only with great efforts) and that the specific annual heat consumption reduces from average kwh/m 2 to 50 kwh/m 2, with the heating system efficiency of 0.85, the final energy savings of 2,114 GWh (7.61 PJ) in 2016 and 3,554 GWh (12.79 PJ) in 2020 would be realised. In order to achieve the multiplying effect and get apartment owners interested in renovating their buildings, it is required to regularly present to the public finalised projects and benefits they brought to the tenants. Activities within this measure related to the energy renovation of family houses overlap with the measure R.3 Financial support programme for natural persons investing in solar heating systems and other EE measures. These complex energy renovations are the subject of a comprehensive programme. In doing so, it is required to ensure that impacts on residential buildings up to 400 m 2 and multi-family buildings are monitored separately Measures in the service sector The service sector includes commercial services and the public sector [33]. The share of the service sector in the total energy consumption of Croatia is 11.4%. Electricity is a dominant energy form with 61.1%, followed by natural gas with 18.4% and liquid fuels with 14%. The share of thermal energy in the total consumption of the sector is relatively small, approximately 5.3%. [34] It is important to point out that electricity and natural gas consumption are growing in the service sector, while the consumption of liquid fuels is declining. Energy consumption movements in services (public and commercial) in the period are presented in Figure 1 (Chapter ). Compared to 2007, energy consumption in the service sector grew by 7.33% with an annual growth rate of 2.39% (Table 23). Table 23 Energy consumption in the service sector in the period * 2010/ Energy consumption PJ % in services *Energy consumption in 2010 is estimated Measures in the public sector Croatian energy statistics do not differentiate between energy consumption in the public and commercial services sector. However, it may be assessed[35] that the public sector participates in electricity consumption with around 40%, which means that the public sector in Croatia spends less than 5% of the total final energy consumption. 33 Public sector includes budgetary and extra-budgetary beneficiaries of state budget, budgetary and extra-budgetary beneficiaries of local and regional self-government units, companies and legal persons in which the Republic of Croatia or a local or regional self-government unit that has decisive impact on management. 34 All provided data is for 2009, extracted from the ODYSSEE database for Croatia and the document Annual energy report Energy in Croatia MELE, Zagreb Evaluation carried out by using available data from the ODYSSEE database. Public sector includes the following categories: administration, education and health. The data presented is from the year

81 Regardless of this small share, Croatia is taking significant steps to achieve energy savings in the public sector and the public sector is a leader in energy efficiency activities. The package of energy efficiency measures defined in the 1 st NEEAP, whose assessment is given in this Chapter, are based on the public sector s exemplary role. Energy efficiency improvement activities in the previous three-year period focused on strengthening the capacities of the public sector for continuous and self-sustaining energy management as well as on low-cost measures such as encouraging behavioural changes of employees through workshops and seminars. A large number of public sector buildings at state and local level introduced an organisational structure for energy management through appointment of energy offices and teams. Additionally, the software tool for energy consumption monitoring and analysis (EMIS) was introduced. It was demonstrated that such organisational energy efficiency measures in the public sector bring significant energy and money savings. The of the listed activities is also planned in the period of the 2 nd NEEAP. In the period of the 2 nd NEEAP, the public sector offers an excellent chance for the of complex technical energy efficiency measures in its buildings. To that end, it is required to ensure technical support for the public sector through the preparation of project documentation for buildings in its ownership for which energy renovation will be implemented. For the purpose of preparing project documentation, it is planned to provide co-financing from the MCPP s budget and in the future from EU funds and programmes, but also to support the application of ESCO principles, which significantly reduce the financial strain on the budget, as well as of other financing sources, such as public-private partnerships. Therefore, this NEEAP plans the adoption of an all-inclusive programme for energy renovation of public buildings. Moreover, the public sector offers an excellent chance for development of the energy services market, which is still insufficiently developed in Croatia. To that end, in the next period an extensive programme for energy efficiency improvements in public lighting is planned on the basis of ESCO principles. Public lighting was selected because of its simple, predictability of future energy savings as well as market profitability and also great potentials for developing ESCO entrepreneurship through the creation of new ESCO companies and expansion of the existing activities, especially those related to lighting equipment manufacturers or installers. An important prerequisite for supporting the ESCO market in Croatia is appropriate regulations that will remove the current barriers in the of such projects in the public sector (details provided in Chapter 3.4). In the next period it is certainly essential to increase efforts in the integration of energy efficiency requirements in public procurement. An important role in that will be played by regulations in the field of energy labelling of appliances which transpose the requirements of Directive 2010/30/EU, and under which it is required to procure devices that have only the highest energy efficiency ratings. Moreover, it is required to ensure legal and technical knowledge and skills of public procurers for evaluating energy efficiency in the process of evaluating bids by applying the criterion of the economically most advantageous bid. The summary presentation of existing and new measures for energy efficiency improvements is provided in Table 24, while detailed descriptions of activities are provided in separate tables for each measure. Additionally, these activities are also addressed in Chapter

82 Table 24 Overview of individual measures in the public sector No. P.1. Title of the energy savings measure Project Systematic energy management in cities and counties Target end-use Existing buildings owned by LRSGUs Duration (2016) Achieved energy savings in 2010 [PJ/ GWh] 0.33 PJ (90.96 GWh) Share in sector target [3] for 2010 [%] Expected energy savings in 2016 [PJ/GWh] 0.80 PJ ( GWh) Share in sector target 36 for 2016 [%] Status in relation to 1 st NEEAP Implemented as planned Additional notes Support of technical measures based on ESCO principle / Ensure continuity of activities P.2. P.3. P.4 P.5 Programme House in order Green public procurement Programme Energy efficient public lighting Plan for energy renovation of public sector buildings Existing buildings owned by the state Equipment and devices, vehicles, buildings (2016) Public lighting Existing public sector buildings TOTAL [38] : 0.21 PJ (59.14 GWh) PJ (92.41 GWh) N/A N/A (2020) PJ [37] (12.46 GWh) PJ ( GWh) Implemented as planned Measure was not implemented 0.25 PJ (68.71 GWh) 6.65 New measure 0.53 PJ ( GWh) 1.91 PJ ( GWh) Support of identified technical measures based on ESCO principle / Ensure continuity of activities Ensure monitoring of quantities and types of procured energy efficient devices and vehicles Includes the impacts of implemented EE public lighting projects by end-2010 (EPEEF & HEP-ESCO) New measure Measure plans the application of EE technical measures, primarily renovations of building envelopes; Includes the impacts of implemented EE public lighting projects by end-2010 To achieve significantly higher savings in the public sector, an appropriate regulatory framework is required to support the use of energy performance contracting i.e. involvement of ESCO companies. 36 The target for the service sector (public and commercial) set in the 1 st NEEAP is 3.76 PJ in 2016 and 1.25 PJ in Realised savings result from projects co-financed by EPEEF (savings are excluded from the impact of horizontal measure EPEEF financial support for EE; RES and clean transport ) and HEP-ESCO d.o.o. 38 Total savings realised in the public services sector are higher and presented in Chapters 3.3 and 3.4, and they result from general measures in building construction. Only the results and estimates of impacts of measures directly related to the public sector are listed here. 82

83 Title of the measure Project Systematic energy management in cities and counties Measure index P.1 Category Information and mandatory information measures Start: 2007 End:2013 (2016) Planned modifications, supplements, improvements: Time frame Measure will continue to be implemented as planned. Measure needs to be supplemented by applying complex technical measures for energy efficiency improvements based on the ESCO principle. The purpose of the project is to apply the model of continuous and systematic energy management, strategic planning in the energy sector and sustainable management of energy Description resources at local and regional level, all contributing to reducing the consumption of energy Purpose / short products and thus to reducing emissions of harmful substances into the atmosphere. The project description is based on establishing an organisational structure for energy management, training of employees and application of IT tools for continuous monitoring and analyzing of energy and water consumption in buildings owned by LRSGUs. Target end-use Existing buildings owned by LRSGUs Target group Public sector employees Regional The project is implemented in the entire Croatia with different intensity. This project includes all application 21 counties and 127 cities. Implementation information List and description of activities for implementing the measure Implemented activities and achieved results: 1. Creating political will for implementing energy efficiency activities Energy charter was signed by all 127 cities and 20 counties Letter of intent was signed by 83 cities and 20 counties Energy efficiency and environmental protection policy was published by 70 cities and 13 counties this obliges cities/counties to reduce their energy consumption by at least 5% per year 2. Establishing organisational structures (EE teams and offices) in LRSGUs 64 cities and 14 counties established EE teams with the total of 361 employees 3. Introducing a software tool (EMIS) for continuous monitoring and analyzing of energy consumption in buildings owned by LRSGUs 78 cities and 16 counties made lists of their buildings (6,286 total; 3,735 buildings owned by cities and 2,551 buildings owned by counties); it is important to point out that such a register of public buildings in Croatia did not exist before the SEM project! Data on 2,544 buildings was collected and entered into EMIS. In 1,202 buildings energy costs are constantly monitored through invoices, and in 1,070 buildings energy consumption is regularly (two times a week)monitored by reading the metering devices for all energy forms and water 4. Training of EE teams to use EMIS and generally on energy efficiency improvement options Workshops on EE in general and EMIS held in 58 cities and 16 counties with 1,933 participants for technical staff Courses for energy advisors were successfully completed by 171 EE team members from 60 cities and counties (additionally, 114 participants from other sectors attended the courses) EMIS workshops for EE team members carried out in 15 cities and 9 counties 5. Workshops Systematic energy management: Weekly and daily analysis and interpretation of energy consumption data (supported with a manual on this topic) for the purpose of training in preparation of EE programmes and plans and for monitoring achieved savings were attended by 74 participants (EE teams, employees in county offices and development agencies) in 11 counties in line with information from the workshop, Osijek-Baranja County prepared its first energy efficiency action plan. 6. Activities on raising the awareness of other employees through workshops Green office Train the trainers workshops for EE team members held in 6 cities and 15 counties with 171 participants Motivational workshops in 16 cities and 3 counties for 346 employees 7. Performance of energy audits in selected buildings A total of 1,126 energy audits performed in 30 cities and 7 counties Identified potential investments in EE improvements in the amount of 1,595 million HRK (EUR million) Estimated saving potentials: o 2.57 PJ/year ( GWh/year); million HRK (10,295,000 EUR); 189,000 t CO 2/year 8. Implementation of EE technical measures in selected buildings EE technical measures were implemented in 78 buildings (mostly related to the renovation of building envelopes and heating systems in schools, kindergartens, hospitals) 83

84 Total investment 103, 979,616 HRK (14,051, EUR) Achieved energy savings: 62.1 TJ/year (17.24 GWh/year) Achieved reduction of CO2 emissions: 7,911 t/year 2. Public promotion and communication In 38 cities and 10 counties a total of 88 EE info points was established: 29 EE info-offices (within city/county administrations) and 5 EE info-centres; 30 info-galleries, 5 info-corners and 19 info city-light displays Representation in local media: 93 public events with 83 press conferences, 56 television and 98 radio references and over 200 articles in printed and electronic media Film My EE city : 50 public showings with audiences between 30 and 250 participants Future activities: All activities of the SEM project will also continue to be implemented in the period of the 2 nd NEEAP. At the end of project, it is planned that all buildings owned by LRSGUs will establish energy management organisation structures and EMIS. Responsible persons in LRSGUs will be additionally informed of the advantages of ESCO projects through educational activities. Under the Act on Amendments to the Act on Energy End-Use Efficiency (Official Gazette 152/08, 55/12) it was regulated that the RC Government will in a regulation prescribe the procedures for carrying out energy services in the public sector, thus ensuring that energy efficiency measures will be implemented in public sector buildings without spending budgetary funds. The unnecessary barriers for energy service providers were removed and, by entry into force of these amendments, it was allowed that a natural or legal person, under the Energy Efficiency Contract, may provide services or other energy efficiency improvement measures to end customers. With the adoption of this Regulation proposed by MCPP, LRSGUs will be encouraged to use energy saving potentials by applying the ESCO method of project financing, without burdening the budget. At the same time, this will achieve the ESD objectives concerning the development of the energy services market. Energy savings Funds and financing sources Implementing authority Monitoring authority (supervision) Energy savings monitoring / measurement method Savings expected in 2010 under 1 st NEEAP Savings achieved in 2010 Expected energy savings in 2016 Expected impact on energy savings for 2020 Assumptions Total expenditure by the end of 2010: 34,473,300 HRK (4,658,555 EUR) GEF: 16,077,230 HRK (2,172,600 EUR) or 46.6% EPEEF: 18,296,070 HRK (2,472,440 EUR) or 53.1% MELE: 100,000 HRK (13,514 EUR) or 0.3% Planned funds by the end of 2013: 15,150,000 HRK (2,007,524 EUR) EPEEF: 15,150,000 HRK (2,007,524 EUR) or 100% (cumulatively, amount represents the total funds for 2012 and 2013) UNDP project team - project Removing Barriers to Energy Efficiency in Croatia in coordination with Cntre, EPEEF- co-financing MCPP and ME Monitoring of achieved energy savings is ensured via the EMIS system. Achieved savings are based on the measured consumption data of all energy forms before and after implementing the project activities. The reference year is 2007, when the project also officially started. Annually realised energy savings are calculated as a difference between the referential and realised energy consumption corrected according to climate conditions (by using degree-heating days). Energy savings potential of this measure is estimated at a minimum of 5% of average sector consumption, which is approximately equal to 0.65 PJ in 2016 and 0.20 PJ in The estimate includes all forms of energy PJ (90.96 GWh) 0.47 PJ ( GWh) This project represents a project for strengthening the capacities for systematic energy management in LRSGUs. The existence of an organisational structure is one of the essential prerequisites for constant energy efficiency improvements. However, due to the recommended life cycle of the savings resulting from organisational measures of 5 years, it is not possible to validate the savings from 2016 for 2020 or to give an estimate of expected savings. Achieved energy savings were identified for buildings owned by LRSGUs in which EMIS is used for energy consumption monitoring and analysis. This project until now includes 2,562 buildings out of the total estimated number of 6,300 LRSGU-owned buildings, which represents 41% of total building surfaces owned by LRSGUs. By monitoring energy consumption through EMIS, it was established that average savings of 10% are achieved. In this way, the impacts of implemented complex EE technical measures were also taken into account (Activity 7). 84

85 Overlapping, multiplying effect, synergy According to the EMIS data, total energy consumption of all LRSGU-owned buildings is 2, GWh/year or 7.99 PJ/year. Expected energy savings in 2016 were corrected according to the actual data and former project achievements and are estimated at 10% of the total estimated energy consumption of all buildings owned by LRSGUs this would mean a total of 0.80 PJ of cumulative energy savings in Under the EC s recommendations, life cycle of organisational measures like SEM is 5 years, meaning that the 2010 savings will not be alive in 2016, so cumulative estimated savings are reduced by this amount. For 2020 it is assumed that the savings realised in 2016 will still be alive, which will partially be correct, particularly related to the established energy management structures that will be used to constantly achieve improvements. This measure also contains activities focused on citizens because the activities implemented in the public sector are promoted to the general public in the territory of an individual LRSGU. In this way impacts are achieved in other final consumption sectors, especially in households. These impacts are recorded by TD energy efficiency indicators. These activities will also be presented under measure R.1 Info campaign and network of EE info centres. *For calculating the amount of funds in EUR, the central rate of the Croatian National Bank was used, currency rate list no. 113 on: 12 June 2012, under which 1 EUR is HRK. 85

86 Title of the measure Programme House in Order Measure index P.2 Category Information and mandatory information measures Start: October 2008 End: October 2013 (2016) Planned modifications, supplements, improvements: Time frame Measure will continue to be implemented as planned. After the formal end of the UNDP project team s involvement (2013), the continuation of activities will be ensured. Measure needs to be supplemented by applying complex technical measures for energy efficiency improvements based on the ESCO principle. The purpose of the project is to apply the model of continuous and systematic energy Description management in buildings owned or used by the RC Government. The project is based on Purpose / short establishing an organisational structure for energy management, training of employees and description application of IT tools for continuous monitoring and analyzing of energy and water consumption in buildings owned by the state. Target end-use Existing buildings owned or used by the RC Government Target group Public sector employees Regional National application Implementation information List and description of activities for implementing the measure Implemented activities and achieved results: 1. Inclusion of particular ministries in the project All ministries (16) participate in the Programme s activities, of which 14 ministries signed the letter of intent thus officially assuming the obligation of implementing the Programme s activities in buildings under their competence. At the moment 2,375 buildings out of the estimated 3,000 buildings under the competence of central state administration are registered 9. Introducing a software tool (EMIS) for continuous monitoring and analyzing of energy consumption in central state administration buildings The Programme at the moment includes 1,602 buildings, while for 1,224 buildings the relevant construction and energy information was collected as well as historical consumption of energy products, for which more than 63,000 work hours was spent. Out of 1,602 buildings, data for 751 of them are entered into EMIS. The EMIS system users are trained for regular monitoring and recording of consumption on monthly and weekly bases. It is important to point out that such a register of public buildings in Croatia did not exist before this project! A remote energy consumption reading system was established in 20 buildings. This system allows for an automated collection of data related to energy, heat, gas and water consumption. Energy and water consumption information are shown in real time on an educational-informational or so called EE panel this encourages energy efficient behaviour of all employees. 2. Training of employees and persons responsible for energy management A total of 3,330 state administration employees were trained through different programmes: o workshops Green office for employees of all ministries: 2,053 o workshops for Green office managers: 46 o courses for energy advisors: 133 o courses Energy management in buildings : 17 o workshops for responsible persons (energy managers): 673 o workshops for other technical staff: Performance of energy audits Total of 16 energy audits performed Identified potential investments in EE improvement in the amount of over 90 million HRK (12.16 million EUR) Estimated energy saving potentials: o TJ/year (18.87 GWh/year) o over 15 million HRK (2.03 million EUR) o 5,000 t CO2/year The handbook for energy certification of buildings was prepared as support for persons authorised for energy audits and energy certification and at the same time as a mechanism for ensuring the quality of performed energy audits 3. Implementation of EE measures Administrative measures, particularly the correct selection of tariff models and dedicated capacity (which also resulted in significant returns of funds from suppliers) realised significant financial savings in the amount of 5.4 million HRK (730,000 EUR) Certain technical measures were implemented where an investment of 300,000 HRK 86

87 Energy savings Funds and financing sources Implementing authority Monitoring authority (supervision) Energy savings monitoring / measurement method Savings expected in 2010 under 1 st NEEAP Savings achieved in 2010 Expected energy savings in 2016 Expected impact on energy savings for 2020 Assumptions resulted in savings of around 2 million HRK (replacement of lighting, compensation of reactive energy, water network renovations); energy savings achieved by these projects amount to approximately MWh/year or 1.75 TJ/year. Within the project, technical documentation for of the total of 46 energy efficiency projects with overall value of million HRK was prepared, whereas 40% of those funds were requested from EPEEF. These projects would realise money savings in the amount of 4.93 million HRK/year. 4. Public promotion and communication All project activities are regularly published on web pages while additional 13 television, 6 radio and 23 printed references were realised). An electronic monthly magazine was also designed that will be distributed to all collected s (over 2,000). Future activities: All activities of the Programme will continue to be implemented also in the period of the 2nd NEEAP. At the end of programme, it is planned that all buildings owned or used by the central state administration will establish energy management organisation structures and EMIS and implement a significant number of investment projects aimed at reducing energy consumption. The EE measure plan will be prepared by every ministry. Responsible persons will be additionally informed of the advantages of ESCO projects through educational activities. The adoption of the Regulation on contracting and provision of energy services in the public sector proposed by MCPP, the use of energy saving potentials will be enabled by applying the ESCO method of project financing, without burdening the budget. At the same time, this will achieve the ESD objectives concerning the development of the energy services market. Energy certification and public display of energy certificates will be carried out for buildings subject to this legal obligation. Total expenditure by the end of 2010: 29,658,210 HRK (4,007,865 EUR) EPEEF: 29,503,210 HRK (3,986,920 EUR) or 99.5% MELE: 155,000 HRK (20,945 EUR) or 0.5% Planned funds by the end of 2013:17,655,000 HRK (2,338,410 EUR) EPEEF: 17,655,000 HRK (2,338,410 EUR) or 100% (cumulatively, amount represents the total funds for 2012 and 2013) UNDP project team - project Removing Barriers to Energy Efficiency in Croatia in coordination with Cntre, EPEEF- co-financing MCPP and ME Monitoring of the achieved energy savings is ensured via the EMIS system. Achieved savings are based on the measured consumption data of all energy forms before and after implementing the programme activities. The reference year is Annually realised energy savings are calculated as a difference between the referential and realised energy consumption corrected according to climate conditions (by using degree-heating days). Energy savings potential of this measure is estimated at a minimum of 5% of average sector consumption, which is approximately equal to 0.65 PJ in 2016 and 0.20 PJ in The estimate includes all forms of energy PJ (59.14 GWh) 0.12 PJ (33.27 GWh) This project represents a project for strengthening the capacities for systematic energy management in the central state administration. The existence of an organisational structure is one of essential prerequisites for constant energy efficiency improvements. However, due to the recommended life cycle of the savings resulting from organisational measures of 5 years, it is not possible to validate the savings from 2016 for 2020 or to give an estimate of expected savings. Achieved energy savings were identified for buildings owned by the central state administration in which EMIS is used for energy consumption monitoring and analysis. This project until now includes around 64% of total building surfaces of such buildings. By monitoring energy consumption through EMIS, it was established that average savings of 10% are achieved. In this way, the impacts of implemented EE technical measures were also taken into account (Activity 5). According to EMIS data, total energy consumption of all central state administration buildings is GWh/year or 3.33 PJ/year. Expected energy savings in 2016 were corrected according to the actual data and former project achievements and are estimated at 10% of total estimated energy consumption of all buildings owned or used by the central state administration this would mean a total of 0.33 PJ of 87

88 Overlapping, multiplying effect, synergy cumulative energy savings in Under the EC s recommendations, life cycle of organisational measures like SEM is 5 years, meaning that the 2010 savings will not be alive in 2016, so cumulative estimated savings are reduced by this amount. For 2020 it is assumed that the savings realised in 2016 will still be alive, which will partially be correct, particularly related to the established energy management structures that will be used to constantly achieve improvements. Under this measure it is planned to perform energy audits and energy certification of buildings. Financial support to energy audits for the purpose of certification is provided by EPEEF. The impacts of energy audits treated as an energy efficiency improvement measure in public administration buildings will be monitored through EMIS and not through evaluation of energy audits in order to avoid duplicated calculation of energy savings. 88

89 Title of the measure "Green public procurement Measure index P.3 Category Voluntary agreements and cooperation instruments Start: 2008 End: Planned modifications, supplements, improvements: Time frame It is required to intensify activities that will ensure legal and technical knowledge and skills of public procurers for including and evaluating energy efficiency requirements in public procurement procedures by applying the criterion of the economically most advantageous bid. Description Implementation information Purpose / short description Target end-use Target group Regional application List and description of activities for implementing the measure Under the Public Procurement Act (Official Gazette 110/07, 125/08), energy efficiency is explicitly listed as one of the criteria. The purpose of this measure is to ensure the use of this criterion in practice by preparing a guide or instructions for green energy efficient public procurement, because general knowledge about energy efficiency is insufficient, which may result in keeping old habits and not using legal options to promote energy efficiency in the public sector. The guide will described how energy efficiency criteria should be taken into account in the process of public procurement and will define the criteria for typical product groups that may be simply integrated into tender documentation. The guide will assist persons responsible for public procurement, and will contain detailed recommendations for the procurement of the following products: electrical devices and machinery equipment for heating, ventilation and air-conditioning (HVA) vehicles and construction machinery reconstruction and construction of new buildings By all means, instructions may and should be extended to environmental criteria and procurement of other products such as office paper, cleaning agents, food, furniture, etc. In view of the fact that the public sector is a large buyer of goods and services, energy efficient public procurement may be very efficient in transforming the market toward increasingly efficient solutions, reducing the prices of new technologies and stimulating their wider use. All forms of energy consumption in the public sector, including also the consumption of liquid fuels in vehicles used by the public sector Persons responsible for public procurement at state and LRSGU level National Implemented activities and achieved results: 1. Translation and promotion of Procura+, manual for sustainable public procurement Within the project Removing Barriers to Energy Efficiency in Croatia implemented by UNDP, Croatia joined the Procura+ campaign ( which promotes sustainable public procurement. The manual with instructions for the integration of environmental and energy efficiency requirements in public procurement procedures was translated, 2,000 copies were published and distributed to LRSGU representatives. A free download of the manual from the project s web ( is also available. Four regional workshops were held in Zagreb, Osijek, Rijeka and Split in which the concept of sustainable procurement and cooperation with the ICLEI European Secretariat on the Procura+ campaign for sustainable public procurement (with more than 100 participants from LRSGUs) 2. Within the programme House in Order, cooperation with the Central Public Procurement Office was formalised. The Central Public Procurement Office is an expert service of the RC Government which performs the activities of central public procurement for central state administration bodies. One of the Office s tasks is sustainable procurement whose practical is aggravated because of insufficient knowledge and experience in the integration of environmental and energy efficiency requirements in public procurement procedures. These requirements may be integrated into technical specifications of particular procurement products during the preparation of public procurement procedures under the criteria of the economically most advantageous bid. The above listed Programme provides expert assistance to the Office in the preparation of technical specifications as well as in the preparation of explanations for applying particular criteria in terms of energy efficient and environmentally sustainable public procurement for several procurement categories. The Office signed similar agreements with the Faculty of Forestry and the Faculty of Graphic Arts, while cooperation in applying the economically 89

90 Energy savings Funds and financing sources Implementing authority Monitoring authority (supervision) Energy savings monitoring / measurement method Savings expected in 2010 under 1 st NEEAP Savings achieved in 2010 Expected energy savings in 2016 Expected impact on energy savings for 2020 Assumptions most advantageous bid criteria is planned in cooperation with SIGMA-OECD. At the end of 2010, the Office became a part of the Procura + initiative. Until now the Office carried out 3 public procurements with integrated energy efficiency and/or environmental criteria: o In the public procurement procedure for office supplies, copying paper originating from legitimate and sustainably managed forests was required. o In the public procurement procedure for photocopiers, devices were requested that comply with the technical criteria prescribed by the last Energy Star or a standard of equal value for photocopying devices, printers and multifunctional devices, all requested devices had to have two-sided printing and networking connectivity options o In the public procurement procedure for fuel, the highest quality fuel (Euro V) with low sulphur content was procured although at that time mandatory use of Euro IV standard was prescribed (decision was made that fuel with sulphur content of less than 10 mg/kg will be used for the needs of parties subject to central public procurement) o As fuel for central heating systems, instead of the formerly used extra light fuel oil (with sulphur content of 1,000 mg/kg to 5,000 mg/kg), gas oil EURO was procured, whose sulphur content does not exceed 1,000 mg/kg Future activities: 1. ME and MCPP shall prepare a guide (instructions) for integration of energy efficiency requirements in public procurement procedures. This guide (instructions) shall as a Government instruction be sent to all state institutions and LRSGUs 2. It is required to implement a training programme for public procurers in application of sustainable procurement by organising the national campaign Sustainable Public Procurement comprising a series of workshops and round tables. The campaign will be carried out from September 2011 to September 2012 within the project SEM in cities and counties (measure P.1) 3. The Office will extensively apply energy efficiency and environmental criteria in its work: it will prepare technical specifications for IT and office equipment, in procurement of vehicles fuel consumption and CO 2 emissions will be evaluated, a catalogue of environmentally acceptable furniture will be drafted. Broader application of these criteria is expected in 2012 by entry into force of the new Public Procurement Act. Planned funds by the end of 2013: ME and MCPP: 500,000 HRK (67,570 EUR) guide (instructions) preparation ME and MCPP in collaboration with Centre preparation of instructions LRSGUs campaign participation Central Public Procurement Office - ME MCPP Monitoring of achieved energy savings will be carried out in the future by using BU methods for each individual device group that was procured by observing the energy efficiency criteria. It is expected that most of procurements will relate to office equipment and cars. For household appliances and office equipment, the EC s recommended BU method will be used, while for vehicles a national method was developed. It is based on the difference between fuel consumption of a standard car with an internal combustion engine and a new car with advanced technology (hybrid or electric) and on average annual mileage of the vehicle. Methods are described in the document Energy savings measurement and verification by applying bottom-up methods. It is of extreme importance that the Central Public Procurement Office monitors data on quantities and types of procured equipment. Energy savings potential of this measure is estimated at 1% of average consumption in the service sector. This is approximately equal to 0.26 PJ in 2016 and 0.06 PJ in The estimate includes all forms of energy. 0 Not estimated Not estimated Considering the lack of activities (public procurements) to which energy savings in the previous period could be allocated, it is not possible to allocate achieved savings in 2010 to this measure. Additionally, due to the current lack of plans of institutions competent for public procurement in terms of quantities of procured devices, it is not possible to estimate the impacts of this measure until 2016 or However, when this measure is initiated, a system for monitoring the impacts 90

91 by applying BU methods will be established, so it is expected that in the next period energy savings will be able to be allocated to this measure. Overlapping, multiplying effect, synergy / Title of the measure Programme Energy efficient public lighting Measure index P.4 Category Energy services for energy savings Start: 2011 End: 2016 Planned modifications, supplements, improvements: Time frame This is an entirely new measure. It was designed on the basis of best practical experiences of the company HEP-ESCO d.o.o. as well as on EPEEF's experiences in co-financing public lighting renovation projects. The measure aims to stimulate the ESCO market in Croatia. Description Implementation information Purpose / short description Target end-use Target group Regional application List and description of activities for implementing the measure Funds and financing sources Public lighting in Croatia spends GWh of electricity, which represents around 3% of total final electricity consumption (data for 2009). Energy efficient public lighting projects are profitable, savings are immediately visible, easily provable and verifiable. For that reason, these projects have an excellent use in stimulating energy services. The principal purpose of this measure is to encourage the market of energy services in Croatia. Although this measure is completely new in relation to the 1 st NEEAP, it will include the experiences of EPEEF and HEP ESCO and stimulate the development of the ESCO financing model. Electricity consumption in public lighting Responsible persons in LRSGUs National Implemented activities and achieved results: 1. Projects co-financed by EPEEF A total of 88 energy efficient public lighting projects were co-financed in the period Total investments in these projects are estimated at around million HRK (9.92 million EUR), with EPEEF participating with 29,543,985 HRK, and the rest was covered by LRSGUs Savings achieved in these projects amount to 6.30 GWh/year (22.69 TJ/year) or 1.40% of current electricity consumption for public lighting 2. Projects implemented by the company HEP-ESCO d.o.o. A total of 10 energy efficient public lighting projects were implemented in the period Total investments in these projects amounted to million HRK (7.47 million EUR) Savings achieved in these projects amount to 6.16 GWh/year (22.17 TJ/year) or 1.38% of current electricity consumption for public lighting It should be pointed out that in the previous period there was no programmed approach to public lighting projects. EPEEF co-financing was realised on the basis of applications for individual projects, and not based on a developed programme for energy efficient public lighting. Future activities: 1. Under the Act on Energy End-Use Efficiency (Official Gazette 152/08 and 55/12), the public sector is obliged to manage energy and implement energy efficiency measures in its buildings and in public lighting. Under this legal provision, ME and MCPP shall draft a decision, and sent it to all LRSGUs, that meeting a part of this obligation should be performed by energy efficient public lighting projects. The adoption of relevant regulations, as well as a special instruction of MCPP will encourage LRSGUs to use energy saving potentials by applying the ESCO method of project financing, without burdening the budget. 2. A detailed programme shall be jointly elaborated by ME and MCPP in cooperation with MF by the end of The programme must start during The target of this programme is to achieve by 2016 verifiable savings in the public lighting system of 60 GWh (approximately 13% of current consumption). The 2013 target is 30 GWh. This amount represents additional savings in relation to already achieved savings. Total expenditure by the end of 2010: million HRK (17.82 million EUR) EPEEF: million HRK (3.99 million EUR) LRSGUs: million HRK (5.92 million EUR) (estimate) HEP-ESCO: 55.3 million HRK (7.84 million EUR) Planned funds by the end of 2013: 300 million HRK (40.54 million EUR) ESCO model Programme preparation: 100,000 HRK (13,210 EUR): MCPP budget 91

92 Energy savings Implementing authority Monitoring authority (supervision) Energy savings monitoring / measurement method Savings expected in 2010 under 1 st NEEAP Savings achieved in 2010 Expected energy savings in 2016 Expected impact on energy savings for 2020 Assumptions Overlapping, multiplying effect, synergy ME and MCPP regulations and instruction to LRSGUs LRSGU and ESCO companies in cooperation with Centre - ME, MCPP Savings achieved by end-2010 from the projects co-financed by EPEEF were determined by using the BU method based on installed capacity and number of lighting fixtures before and after implementing the measure, taking into consideration the number of work hours of public lighting systems and the control strategy (according to the EC s recommendations). The method is described in detail in the document Energy savings measurement and verification by applying bottom-up methods. For the majority of projects, savings are based on actual measured data before and after implementing the measure. HEP-ESCO evaluates the impacts of its projects by applying international recommendations provided in IPMVP. The listed methodological options will be used for future activities of this project as well. / PJ (12.46 GWh) 0.25 PJ (68.71 GWh) 0.30 PJ (84.38 GWh) The savings from already implemented measures, assuming the life cycle of equipment in public lighting systems, will be alive in 2016 as well as It is expected that savings in 2020 will be even larger than the expected due to more developed energy services market. The target for 2016 was set on the basis of the following facts: in 2009 electricity consumption for public lighting was around 450 GWh; savings of around 25% are typically achieved in public lighting systems; programme plans to include ½ of total electricity consumption for public lighting. By 2020 it will cover ¾ of total electricity consumption for public lighting. After 2016, increased use of LED technology in public lighting needs to be considered. Considering the non-existence of this measure in the 1 st NEEAP, the achieved energy savings should be allocated to one of the measures from the 1 st NEEAP. The only measure covering these savings is the horizontal measure EPEEF financial support for EE, RES and clean transport projects. However, for the purpose of clearer presentation, savings from public lighting projects co-financed by EPEEF are shown only under this new measure. It should also be stated that the double calculation of savings was avoided by removing all those projects implemented by HEP- ESCO, which at the same time received co-financing from EPEEF, from the calculations of savings from EPEEF projects. 92

93 Title of the measure Plan for energy renovation of public sector buildings Measure index P.5 Category Financial instruments Start: 2011 Time frame End:2016 (2020) Planned modifications, supplements, improvements: New measure Description Implementation information Purpose / short description Target end-use Target group Regional application List and description of activities for implementing the measure Funds and financing sources Implementing authority Monitoring authority This measure plans the designing of a detailed action plan for renovation of existing public sector buildings until 2016 (2020) and the of that plan. Within the meaning of the 2nd NEEAP, public sector buildings are buildings owned by LRSGUs (cities, municipalities, counties), buildings owned by the state budgetary beneficiaries (ministries, institutes, institutions, academies, offices) and extra-budgetary funds as well as buildings owned by public companies. Under the plan, focus will primarily be placed on public sector buildings constructed before 1987 and their renovation to the low-energy standard, thus achieving an energy rating B, A or A+. In view of EPBD II requirements that public buildings must be by 2018 renovated and constructed according to the nearly zero energy standard, the criteria for renovation of public buildings must be stricter than the legal minimum by The measure prescribes energy certification of public buildings before and after energy renovation. Public sector buildings Buildings owned by LRSGUs (cities, municipalities, counties) Buildings owned by the central state administration - Budgetary beneficiaries (ministries, institutes, institutions, academies, offices) - Extra-budgetary funds - Buildings owned by public companies National Future activities: 1. Preparation of a multi-year action plan for energy renovation of public sector buildings by 2016 (2020) MCPP and ME are obliged to initiate the preparation of such a plan by the end of 2012 Plan must be prepared in the first half of 2012 preparation of the plan needs to include all knowledge and findings from the SEM project (measure P.1) and HiO programme (measure P.2) Plan must be presented to the public and encourage ESCO companies as well as other private companies to participate in of activities Plan needs to take account of specificities of energy efficiency programmes and plans that will be submitted to MCPP by the public sector parties subject to energy management EPEEF is obliged to anticipate all required funds for co-financing the plan until Plan Realisation of the plan must begin at the latest in second half of 2012 and last until 2016, with possibility of its continuation until 2020 Execution of the plan must be monitored annually in terms of spent funds and achieved energy savings and CO2 emissions Annually planned funds for the total price of renovation estimated at 1, HRK/m 2 amount to 0.72 billion HRK. MCPP: 100,000 HRK (13,354 EUR) for plan preparation MCPP: 2,000,000 HRK own funds for financing project documentation for pilot phase Annual : 724,100,000 HRK: Commercial banks, HBOR, EIB (ELENA funds for covering the costs of project documentation) 99.43% EPEEF: 2,000,000 HRK financing of building energy certificates 0,27% EU funds for co-financing ESCO companies ESCO market needs to be included in programme Detailed needs and financing sources will be defined in the Plan. MCPP and ME plan preparation EPEEF ensuring a part of required co-financing Agency/Centre plan and promotion MCPP 93

94 Energy savings (supervision) Energy savings monitoring / measurement method Savings expected in 2010 under 1 st NEEAP Savings achieved in 2010 Expected energy savings in 2016 Expected impact on energy savings for 2020 Assumptions Overlapping, multiplying effect, synergy Savings measurement and verification method under the IPMVP is used. Alternatively, monitoring of the impacts may be ensured by applying BU methods recommended by the European Commission (method 2.1 renovation of existing residential and service buildings). Input data must be identified for each individual building (and will also be available from energy certificates). / / 0,533 PJ (148,00 GWh) 0,991 PJ (275,00 GWh) According to the UNDP data, in 2010 the Republic of Croatia had a total of 9.58 million square metres of usable surfaces in public sector buildings, of which heated usable surfaces amount to 43.90%. It is assumed that the energy renovation of buildings will be based primarily on buildings constructed before 1987, with average heat consumption of kwh/m 2. Assuming that every year 5% of public building surfaces is renovated, or approximately 479,000 m 2 and that the specific annual heat consumption reduces from average kwh/m2 to average 45 kwh/m 2 by 2016, or 15 kwh/m 2 in 2020, with the heating system efficiency of 0.88, final energy savings would be realised in 2016 (with assumed start of in 2012) in the amount of approximately GWh (0.533 PJ), and in 2020 in the amount of GWh (0.991 PJ). This measure supplements measures P.1 and P.2. Measure plans the performance of energy audits and the display of building energy certificates before and after energy renovation Measures in the commercial service sector Croatian energy statistics do not distinguish between energy consumption in the public and in the commercial service sector. However, it may be estimated [77] that commercial services account for approximately 60% of the consumed electricity, which means that their consumption accounts for less than 7% of the total final energy consumption. In the previous three-year period, there were no systematic activities to promote energy efficiency. In the 1 st NEEAP, there was only one measure defined for the commercial service sector, created on the model of the systematic energy management project in the public sector. It may be stated that the measure in question was not implemented in the manner as envisaged in the 1 st NEEAP. However, owing to strong activities in the public sector, stakeholders from the commercial service sector were also stimulated to improve their energy efficiency. The financial support was provided by the EPEEF through regular tenders for projects related to energy efficiency, sustainable construction and energy audits, and to a lesser degree through the programme for promotion of LPG and solar energy use on islands. In the following three-year period, the measure "Systematic energy management and energy audits in the commercial service sector" will continue to be implemented only by means of provision of financial support by the EPEEF for the introduction of systematic energy management and energy audits, which must be envisaged in the EPEEF's programme of activities and financial plan. Systematic promotion of introduction of energy management in towns and counties and in state buildings requires strong human capacities and considerable 77 The estimation is based on available data from the ODYSSEE database. The public sector comprises the following categories: administration, education and health care, whereas the commercial sector comprises all other categories. The data are taken for the year

95 financial means (see Chapter on measures in the public sector). On the other hand, the commercial sector is lead by economic principles and it may find its interest in the energy efficiency, so that promotion of energy management by the public sector and financial support for the introduction of a system for monitoring energy consumption and of energy audits is a welcome stimulus for of more complicated technical energy efficiency projects. However, this 2 nd NEEAP envisages strong promotion of solar energy use in tourist facilities in the next period. Tourism is a strategically important branch of the Croatian economy and energy efficiency measures focused on tourist facilities may be successfully used for promotional purposes and for attracting tourists who consider sustainability and environmental protection to be important criteria for choosing their holiday destination. Although most accommodation capacities and the realised number of overnights are found in private rooms, the scope, targeting and co-financing possibilities are much simpler with legal than with natural persons. When it comes to legal persons, an almost equal number of overnights is realised in camps as in hotels (hotels prevail a little), although accommodation capacities of camps are much bigger. The reason for this is the fact that hotel capacities are used throughout the year, which leads to the conclusion that the occupancy rate of camps corresponds much better with availability of the sunshine. Therefore, introduction of solar thermal systems in camps is the primary objective for the next period. Naturally, this does not exclude promotion of solar energy use in other tourist facilities, particularly in small hotels and tourist complexes. Taking into consideration a higher degree of luxury which hotels need to offer their guests in order to keep them, and the desired prolongation of the tourist season, centralised heating and cooling systems, cogeneration and even trigeneration systems should be promoted in hotels. It should be pointed out that the Energy Sector Development Strategy of the Republic of Croatia (Official Gazette 130/09) contains reduction of electricity use for heating purposes and its gradual replacement by natural gas, LPG and in particular by renewable energy sources as a development guideline and that it sets a target of m 2 of solar thermal collectors per capita in The new measure for promotion of solar thermal systems in tourist facilities will significantly contribute to the achievement of this target. In addition to the above mentioned, this target will also have positive impact on the development of domestic industry which may offer the necessary equipment on the market. It is extremely important for this measure to be separately elaborated in the EPEEF's programme of activities and financial plan. A summary of the existing and new measures for energy efficiency improvement in the commercial service sector is contained in Table 25, whereas detailed descriptions of activities are given in separate tables for each measure. 95

96 Table 25 Overview of individual measures for the commercial service sector 96

97 No C.1 C.2 C.3 C.4 C.5 Title of the energy saving measure Systematic energy management and energy audits in the commercial service sector Incentive programme for solar energy use in camps Incentive programme for investments in solar heating systems and other EE measures in hotels Increasing the efficiency of cooling systems in hotels and other tourist facilities Energy renovation of commercial nonresidential buildings Targeted final consumption Buildings for commercial services Hot water preparation in camps Hot water preparation in hotels Cooling systems in buildings used for tourism purposes Existing nonresidential buildings used for commercial purposes TOTAL Duration Energy savings achieved in 2010 [PJ/ GWh] 0.01 PJ (2.68 GWh) Share in the sector target 3 for 2010 [%] 0.77% / / / / / / / / 0.01 PJ (2.68 GWh) 0.77% Energy savings achieved in 2016 [PJ/ GWh] 0.18 PJ (50.00 GWh) 0.31 PJ (85.23 GWh) 0.06 PJ (15.83 GWh) 0.05 PJ (13.27 GWh) 1.48 PJ ( GWh) 2.08 PJ ( GWh) Share in the sector target 78 for 2016 [%] Status in relation to the 1 s t NEEAP The measure has been revised. New measure New measure New measure New measure Additional remarks The measure is related to legal obligations of energy management for large consumers (> 10,000 MWh/year) and energy certification of buildings; the estimation of the effects is related only to "soft" measures; total savings from complex technical energy efficiency projects have not been estimated. The measure is primarily focused on camps. The measure is focused on hotels and endeavours to eliminate the use of electricity and fossil fuels for water heating; it is applicable primarily if there are no plans for using waste heat sources from cooling systems, cogeneration, etc. The measure is focused on the planning of cooling systems in larger facilities by means of centralisation of the heating system using heat pumps and using the environment as a thermal energy storage (sea). The measure envisages application of energy efficiency technical measures, primarily renovation of the building envelope. 78 Target for the service sector (public and commercial) set in the 1 st NEEAP amounts to 3.76 PJ and for the year 2010 it amounts to 1.25 PJ. 97

98 98

99 Title of the measure Systematic energy management and energy audits in the commercial service sector Index of the measure C.1 Category Financial instruments Beginning: 2009 Completion: 2016 Envisaged larger changes, amendments, improvements: The measure has been revised in relation to the 1 st NEEAP and is focused on providing financial support to stakeholders from the commercial service sector for the purpose of of activities related to introduction of energy management practice, Timeframe conduct of energy audits and of complex energy efficiency technical measures. In the 1 st NEEAP, activities modelled on the programmes from the public sector (measures P.1 and P.2) were envisaged, but due to the lack of capacities in national institutions for the of new legal obligations and due to significant differences between the public and the commercial sector, the most important segment is co-financing. Description Information on Target / short description Targeted final consumption Target group Regional application A list and description of activities aiming at the measure Financial means and sources of financing The target of this measure is to provide financial support to companies from the commercial service sector so as to enable them to initiate and implement activities aimed at energy efficiency improvement; i.e. introduction of energy management systems (monitoring and targeting of energy consumption, energy managers and teams, promotion of energy efficiency, promotional and educational activities for employees), of energy audits and application of complex technical measures to improve energy efficiency. Buildings used for commercial services (private own) Owners and users of buildings used for commercial services National Implemented activities and achieved results: In the previous period, results related to allocated financial support by the EPEEF were achieved for the following project categories: Projects of sustainable construction 3 projects Projects of using LPG and solar thermal systems on islands 2 projects Energy audits 4 projects Other energy efficiency projects 2 projects Future activities: Financial support to the mentioned activities will in the future be continued with cofinancing in the form of commercial loans by HBOR and commercial banks. Invitations for applications for financial support are to be announced exactly under the title and with description of this measure and the classification is to be carried out in the following manner: Introduction of an energy management system Energy audit Projects for energy efficiency improvement. It is important to link all the activities to legal obligations stakeholders from this sector with the total annual energy consumption exceeding 10,000 MWh are obliged to implement the above mentioned energy management activities. Total funds used by the end of 2010: EPEEF: total HRK 4,533,820 (EUR 612,640) o Projects of sustainable construction: HRK 2,380,730 (EUR 321,720) o Projects of using LPG and solar thermal systems on islands: HRK 1,294,500 (EUR 174,900) o Energy audits: HRK 246,590 (EUR 33,320) o Other energy efficiency projects: HRK 612,000 (EUR 82,700) Planned funds by the end of 2013: MCPP and MT: HRK 100,000 (EUR 13,354) plan development HBOR, commercial banks: HRK 6,500,000 (EUR 1,350,000) co-financing Energy savings Executive body Monitoring (supervision) bodies Method of monitoring / Agency in cooperation with Centre MCPP Monitoring of effects of this measure is achieved by means of recommended BU methods of the European Commission with the use of national reference values. In addition to this, 99

100 measuring energy savings Savings expected in 2010 according to the 1 st NEEAP Savings achieved in 2010 Energy savings expected in 2016 Expected impact on energy savings for 2020 Assumptions Overlapping, multiplication effect, synergy where this is applicable in relation to the available data, the principle of "measured" savings is used based on the difference in energy consumption before and after the of the energy efficiency measure. Potential for energy savings is estimated to at least 5% of average consumption in the commercial service sector. This amounts approximately to 0.68 PJ in 2016 and 0.17 PJ in Total: 9.63 TJ (2.68 GWh) Projects of sustainable construction: 2.91 TJ (0.81 GWh) Projects of using LPG and solar thermal systems on islands: 1.80 TJ (0.50 GWh) Energy audits: 2.47 TJ (0.68 GWh) Other energy efficiency projects: 2.95 TJ (0.82 GWh) 180 TJ (50 GWh) 180 TJ (50 GWh) Savings achieved so far in relation to this measure are very low. The reasons lie either in the lack of commercial sector's interest or in the finding of other (co)financing sources. However, it is intended to implement this measure further for the sake of small and medium-sized enterprises from the service sector which are expected to need financial support in the next period due to legal obligations such as energy certification of buildings or energy management if their annual energy consumption exceeds 10,000 MWh or if they have a building with the surface area exceeding 1,000 m 2 where services are provided to a large number of people. New expectations are reduced in relation to the ones envisaged in the 1 st NEEAP due to the introduced amendments to the measure. The following assumptions have been made for the purpose of estimation of future savings: 20% of buildings used for commercial purposes are subject to the legal obligation of energy management; by implementing "soft" measures, such as introduction of the system for monitoring and targeting energy consumption or by energy audits, savings amounting to 5% of the former energy consumption of such buildings will be achieved; the total energy consumption in 2009 in the commercial service sector amounted to approximately 18 PJ. With regard to the lifespan of such "soft" measures being no more than five years, further increase in energy savings based on this measure is not expected by This measure overlaps with the horizontal measure "Energy auditing scheme". However, when estimating the effects, individual sectors are taken into account separately and achieved savings are listed only under one of the measures so as to avoid double calculation of savings. The measure is supplemented by promotional activities and information campaigns implemented as part of activities in the public sector (measures P.1 and P.2). Strong promotion of systematic energy management in towns and counties and in state buildings should promote activities in the commercial service sector as well. 100

101 Title of the measure Incentive programme for solar energy use in camps Index of the measure C.2 Category Financial instruments Beginning: 2011 Timeframe Completion: 2016 Envisaged larger changes, amendments, improvements: New measure Description Information on Energy savings Target / short description Targeted final consumption Target group Regional application A list and description of activities aiming at the measure Financial means and sources of financing Executive body Monitoring (supervision) bodies Method of monitoring / measuring energy savings Savings expected in 2010 according to the 1 st NEEAP Savings achieved in 2010 Energy savings expected in 2016 Expected impact on energy savings for 2020 Assumptions The target of this measure is to achieve large-scale use of solar thermal systems for domestic hot water preparation in camps. Camps have been chosen because the activities and occupancy rate of camps correspond outstandingly with the availability of the sunshine. By means of this, the use of electricity and fuel oil for heating purposes might be largely reduced, thus achieving additional environmental effects and reduction of the peak load in the electrical power system. The added value is creation of a "green" image of camps and attracting of guests for whom environmental protection is an important criterion for selection of a holiday destination. The measure envisages 125,000 m 2 of solar thermal collectors (i.e. approximately 13% of the target amounting to 0.225m 2 per capita by 2020 set in the Energy Sector Development Strategy). Domestic hot water preparation in camps Camp owners Primarily littoral Croatia, applicable to the whole country. Future activities: 1. By the end of 2012, ME, MCPP and MT, as well as the Agency / Centre, will include this measure in their programme of activities and promote it among camp owners the promotion is to be entrusted to ME, MCPP and MT. With regard to the results achieved, it is necessary to pass a decision on the revision and prolongation of the programme. It may be assumed that this measure will result in installation of a total of 25,000 m 2 of solar thermal collectors annually. Planned funds by the end of 2013: MCPP and ME: HRK 100,000 (EUR 13,354): development of a detailed programme EPEEF: co-financing HRK 1,500,000 (28.03%) HBOR, commercial banks: HRK 3,750,000 (70.09%) Agency in cooperation with Centre programme MCPP, MT, ME For monitoring effects of this measure, a BU method according to EC recommendations will be used. Users of funds are obliged to submit data on the surface area and type of installed collectors (flat plate or tube collectors) and on the efficiency of the system for domestic hot water preparation used prior to installation of solar collectors. The obligation to report in detail on each project in terms of savings achieved as a result of the reduced consumption of other power sources is an integral part of the information system which will be maintained by the Agency. In this manner, more accurate data on achieved savings and the average annual generation by solar collectors will be gained, which will enable improvement of reference values used for the of the recommended BU method. / / TJ (85.23 GWh) TJ ( GWh) It is assumed that under this measure a total of 125,000 m 2 of solar thermal collectors will be installed by 2016 and 175,000 m 2 in Taking into account the assumed efficiency of the existing domestic hot water preparation of 89%, the average annual generation by solar thermal collectors of approximately 600 kwh/m 2 (this is a very conservative assumption, considering the fact that most camps are located in the littoral Croatia). The lifespan of this measure, i.e. of solar collectors is 20 years, which means that the savings 101

102 Overlapping, multiplication effect, synergy will be "alive" also in 2016 and in / Title of the measure Incentive programme for investments in solar heating systems and other EE measures in hotels Index of the measure C.3 Category Financial instruments Beginning: 2011 Completion: 2016 Timeframe Envisaged larger changes, amendments, improvements: New measure Description Information on Target / short description Targeted final consumption Target group Regional application A list and description of activities aiming at the measure Financial means and sources of financing The target of this measure is to achieve large-scale use of solar thermal systems for domestic hot water preparation and installation of heat pumps in hotels. By means of this measure, elimination of the use of electricity and fossil fuels for heating of premises should be maximized and solar energy should be used wherever its use makes sense. In principle, every tourist facility should at least consider heating DHW by means of solar energy. So as to make such interventions as large-scale as possible, standardised analyses and standardised work designs are to be developed, which would enable better support to their maintenance and eliminate obstacles to their application. Where heat pumps are installed, one should take into consideration such pumps which may achieve a minimum average annual COP of 3.5 during their planned lifespan. Domestic hot water preparation in hotels Owners of hotels and other tourist facilities except camps Primarily littoral Croatia, applicable to the whole country. Future activities: By the end of 2012, ME, MCPP and MT, as well as the Agency / Centre, will include this measure in their programme of activities and promote it among camp owners the promotion is to be entrusted to the Agency / Centre. With regard to the results achieved, it is necessary to pass a decision on the revision and prolongation of the programme. It is assumed that under this measure a total of 4,600 m2 of solar thermal collectors and 100 heat pumps will be installed annually. Planned funds by the end of 2013: MCPP and ME: HRK 100,000 (EUR 13,354): development of a detailed programme EPEEF: co-financing of solar thermal collectors HRK 5,000,000, EPEEF: cofinancing of heat pumps HRK 5,250,000 HBOR, commercial banks: HRK 11,500,000 for solar collectors HBOR, commercial banks: HRK 40,500,000 for heat pumps Energy savings Executive body Monitoring (supervision) bodies Method of monitoring / measuring energy savings Savings expected in 2010 according to the 1 st NEEAP Savings achieved in 2010 Energy savings Agency in cooperation with Centre programme MCPP, ME and MT For monitoring effects of this measure, a BU method according to EC recommendations will be used. Users of funds are obliged to submit data on the surface area and type of installed collectors (flat plate or tube collectors) and on the efficiency of the system for domestic hot water preparation used prior to installation of solar collectors. Obligation to report in detail on each project in terms of savings achieved as a result of reduced consumption of other power sources is an integral part of the information system which will be maintained by the Agency. In this manner, more accurate data on achieved savings and the average annual generation by solar collectors will be gained, which will enable improvement of reference values used for the of the recommended BU method. / / 57 TJ (15.83 GWh) 102

103 expected in 2016 Expected impact on energy savings for 2020 Assumptions Overlapping, multiplication effect, synergy TJ (32.04 GWh) It is assumed that under this measure approximately 23,000 m 2 of solar thermal collectors will be installed by 2016 and 47,000 m 2 by Taking into account the assumed efficiency of the existing domestic hot water preparation of 89%, the average annual generation by solar thermal collectors of approximately 600 kwh/m2 (this is a conservative assumption based on the equal share of installations in the littoral and continental Croatia and on dominant installation of flat plate collectors). The lifespan of this measure, i.e. of solar collectors is 20 years, which means that the savings will be "alive" also in 2016 and in / 103

104 Title of the measure Increasing the efficiency of cooling systems in hotels and other tourist facilities Index of the measure C.4 Category Financial instruments Beginning: 2011 Completion: 2016 Timeframe Envisaged larger changes, amendments, improvements: New measure Description Information on Target / short description Targeted final consumption Target group Regional application A list and description of activities aiming at the measure Financial means and sources of financing The target of this measure is to promote wide use of efficient cooling systems in hotels. This refers to centralisation of cooling systems in larger hotels where it has not been implemented yet, use of heat pumps and use of the environment as a thermal energy storage (sea water) so as to achieve as high COP as possible. In addition to electricity savings, reduction of the peak load in the electrical power system is also achieved. Furthermore, centralisation enables use of condensation heat for domestic hot water preparation. Also, a centralised heating system is placed at the users' disposal, which stimulates prolongation of the tourist season in hotels in the winter period. Cooling systems in hotels Hotel owners The whole of Croatia Future activities: By the end of 2012, MCPP and MT, as well as the Agency, will include this measure in their programme of activities and promote it among camp owners the promotion is to be entrusted to the Agency. With regard to the results achieved, it is necessary to pass a decision on the revision and prolongation of the programme. Planned funds by the end of 2013: MCPP and ME: HRK 100,000 (EUR 13,354): development of a detailed programme HBOR, commercial banks: Energy savings Executive body Monitoring (supervision) bodies Method of monitoring / measuring energy savings Savings expected in 2010 according to the 1 st NEEAP Savings achieved in 2010 Energy savings expected in 2016 Expected impact on energy savings for 2020 Assumptions Overlapping, multiplication effect, synergy Agency in cooperation with Centre programme MCPP, ME and MT For monitoring effects of this measure, the BU method according to EC recommendations for air conditioning systems will be used, as well as the national method for heat pumps. / / 48 TJ (13.27 GWh) 48 TJ (13.27 GWh) It is assumed that this measure will result in installation of high efficiency centralised systems which will, provided they have an appropriate lifespan, enable savings even in Introduction of centralised cooling systems including heat pumps enables heating of premises and prolongation of the working season of hotels. Use of condensation heat for hot water preparation, in combination with solar collectors and insulated storages, may entirely replace other power sources for DHW preparation. 104

105 Title of the measure Energy renovation of commercial non-residential buildings Index of the measure C.5 Category Financial instruments Beginning: 2011 Timeframe Completion: 2016 (2020) Envisaged larger changes, amendments, improvements: New measure Description Information on Target / short description Targeted final consumption Target group Regional application A list and description of activities aiming at the measure Financial means and sources of financing Executive body This measure envisages development of a detailed action plan for renovation of existing non-residential buildings used for commercial purposes by 2016 (2020) and of the said plan. The plan will primarily take into consideration the commercial sector of buildings built before 1987 and their renovation according to lowenergy standards and achieving the energy class B, A or A+. The measure envisages drawing up of energy certificates of buildings used for public purposes, before and after renovation. Existing non-residential buildings used for commercial purposes (private owned) Owners of non-residential buildings used for commercial purposes National Future activities: 1. Drawing up of a multiannual action plan of renovation of non-residential buildings by 2016 (2020) MCPP and MT are obliged to initiate drawing up of such a plan by the end of The plan is to be drawn up in the first half of 2012 managers of buildings are to be included in its preparation so as to identify primary facilities for reconstruction; in the course of the plan development, information campaign and education of users are also to be implemented, in order to gain their approval of proposed interventions. 2. Stimulate commercial banks to open new credit lines. Application of the plan The Agency is in charge of the plan realisation, which is to commence in the second half of 2012 at the latest and continue until 2016, with a possibility of its prolongation by The plan is to be monitored on the annual basis in terms of used funds and achieved savings of energy and CO2 emissions. Planned funds on the annual basis for the total price of reconstruction estimated at HRK 2, per m 2 amount to HRK 1.96 billion. MCPP and MT: HRK 500,000 (EUR 66,767) for programme development (each with 0.01%) ESCO ESCO market is to be included in the programme. HBOR, commercial banks: Implementation annually: HRK 1,960,000,000 (99.97%) Detailed needs and financial resources will be determined in the programme. The programme must elaborate a model which will enable a part of financial savings to be kept for end users of the buildings and for investments into the raising of the standard. MCPP, MT - drawing up of the programme Agency in cooperation with Centre programme Energy savings Monitoring (supervision) bodies Method of monitoring / measuring energy savings Savings expected in 2010 according to the 1 st NEEAP Savings achieved in 2010 Energy savings expected in 2016 Expected impact on energy savings for 2020 MCPP, MT Wherever possible, methods of measurement and verification of savings according to IPMVP should be applied. Alternatively, monitoring of the effects may be ensured by using BU methods recommended by the European Commission (method 2.1 renovation of existing residential and service buildings). Input data are to be determined for each individual building. / / 1.48 PJ ( GWh) 2.72 PJ ( GWh) 105

106 Assumptions Overlapping, multiplication effect, synergy In the Republic of Croatia in 2010, a total of million square meters of useful surface area of commercial non-residential buildings were recorded, according to the data from the Central Bureau of Statistics, the census of 2001, and the data on all issued building permits and buildings constructed in the period from 2001 to Out of this total surface area, heated useful area accounts for 43.90%. It is assumed that energy renovation of buildings will be primarily based on buildings constructed before 1987, whose average annual thermal energy consumption for heating amounts to kwh/m 2. If we assume that 3% of area of commercial non-residential buildings will be renovated each year, i.e. approximately 0.98 million m 2, and that specific annual thermal energy consumption for heating is reduced from the average kwh/m 2 to 45 kwh/m 2 with the heating system efficiency of 0.88, savings of final energy (if the application starts in 2012) amounting to approximately GWh (1.48 PJ) would be achieved in 2016, whereas the savings in 2020 would amount to GWh (2.72 PJ). In order to achieve the multiplication effect and make owners of commercial buildings interested in renovation of their buildings, completed projects and benefits for their owners should be regularly presented to the public. The measure also envisages energy audits and energy certification of buildings Measures in industry The share of industry in the total energy consumption in Croatia amounts to 19.4%. The most represented power source is natural gas (25%), followed by hot water and steam (24.3%), whereas the share of electrical power amounts to 23.1% and of coal to 17.6%. The share of liquid fuels is constantly falling and accounts for only 8.4%; the share of biomass is 1.6% [79]. The trends in energy consumption in the industry sector in the period from 2003 to 2010 are shown in Table 26. In relation to 2007, energy consumption in industry fell by 17.64% and the annual growth (falling) rate was 6.26% (Table 26). Table 26 Energy consumption in industry in the period from 2003 to * 2010/ Energy consumption PJ % in industry * Energy consumption in 2010 has been estimated Industry is the sector in which, on a long-term basis, the largest fall of energy consumption has been recorded, as a result of both technological progress (improved energy efficiency) and reduced production scope, especially in 2009 and 2010 due to the economic crisis. In the previous three-year period, there were no systematic activities to promote energy efficiency in this sector. In the 1 st NEEAP, several measures were defined, the most important one being revival of the national energy programme Industrial Energy Efficiency Network (IEEN). The main target of this measure was systematic energy efficiency promotion, establishment of a system for energy management and for monitoring and targeting energy consumption, and using potentials of measures of organisational character so as to reduce energy consumption. The programme should have been launched by the EPEEF, but no progress has been achieved due to insufficient capacities and organisation of activities at the national level. However, this measure will not be abandoned; it has been revised and its will be entrusted to an executive body which will implement it in cooperation with the Croatian Chamber of Economy (CCE). Other envisaged measures were also not implemented in the planned manner, with the exception of the system for supporting 79 All the data refer to 2009 and are taken from the ODYSSEE database for Croatia and the document "Annual Energy Report Energy in Croatia 2009", MELE, Zagreb,

107 cogeneration by means of guaranteed feed-in tariffs for electricity, but investors did not show the desired interest. Although industry by itself, without state aid, achieves improvements in energy efficiency in line with its business interests, new legal obligations have been introduced for this sector, i.e. for undertakings with the annual consumption exceeding 10,000 MWh of energy. Pursuant to the Ordinance on energy audits of buildings (Official Gazette 05/11), such industrial consumers are obliged to perform energy audits every five years, and pursuant to the Act on Efficient Energy Use in Final Consumption (Official Gazette 152/08 and 55/12) they are obliged to draw up their energy efficiency programmes and implement measures to improve energy efficiency. In line with the new obligations, it was necessary to revise NEEAP measures thoroughly. In addition to the scheme for co-financing energy audits in industry, a new measure to promote energy efficiency in electric motor drives has been introduced for the next three-year period. A summary of the existing and new measures for energy efficiency improvement in the industry sector is contained in Table 27, whereas detailed descriptions of activities are given in separate tables for each measure. 107

108 Table 27 Overview of individual measures for the industry sector 108

109 No I.1 I.2 I.3 I.4 I.5 I.6 Title of the energy saving measure Industrial Energy Efficiency Network (IEEN) Voluntary agreements with industry Energy auditing scheme for industry High efficient cogeneration in industry CO2 emissions fee for large polluters Introduction of efficient electric motor drives Targeted final consumption Consumption of all forms of energy in industry Consumption of all forms of energy in industry subject to paying environmental charges Consumption of all forms of energy in industry Duration Energy savings achieved in 2010 [PJ/ GWh] Share in the sector target 3 for 2010 [%] Energy savings expected in 2016 [PJ/ GWh] Share in the sector target 80 for 2016 [%] N/A N/A / / Cogeneration Consumption of all forms of energy in industry Consumption of electricity in industry PJ (7.86 GWh) 0.33 TJ (negligible) 0.57 PJ ( GWh) 2.53 N/A N/A negligible / / 0.17 PJ (47.78 GWh) 1 PJ ( GWh) 0.82 PJ ( GWh) Status in relation to the 1 st NEEAP The measure was not implemented in the envisaged manner in the previous period. The measure has been revised. The measure was not implemented in the envisaged manner in the previous period. The measure was being implemented. The measure was being implemented. The Fund may correct the CO2 emissions fee depending on investments into energy efficiency New measure Additional remarks The measure envisages passing of a comprehensive programme for promoting energy efficiency in industry, according to branches, and of the defined activities. The measure has been integrated into the measure I.5. The measure is related to the legal obligation of large consumers (total annual energy consumption > 10,000 MWh), but support may also be granted to all other industrial consumers. The measure promotes introduction of cogeneration in industry in line with legal regulations on eligible producers. The allocation of funds collected through the fee was not in line with the 1 st NEEAP; EPEEF is obliged to align its activities with this measure. Under this measure, promotion of feasibility analyses and integral introduction of efficient electric motor drives in industrial companies are envisaged. 80 Target for the industry sector set in the 1 st NEEAP amounts to 3.36 PJ and for the year 2010 it amounts to 1.12 PJ. 109

110 TOTAL 0.60 PJ ( GWh) PJ ( GWh)

111 Title of the measure Industrial Energy Efficiency Network (IEEN) Index of the measure I.1 Category Voluntary agreements and cooperative instruments Beginning: 2008 Timeframe Completion: 2016 Envisaged larger changes, amendments, improvements: The measure has been revised and supplemented by target activities. Description Information on implementati on Energy savings Target / short description Targeted final consumption Target group Regional application A list and description of activities aiming at the measure Financial means and sources of financing Executive body Monitoring (supervision) bodies Method of monitoring / measuring energy savings Savings expected in 2010 according to the 1 st NEEAP IEEN will provide a platform for a range of activities aimed at promoting energy efficiency in industry. The main objective is to raise awareness and improve knowledge of how to utilise the potential for no/low cost measures among managers and employees of industrial enterprises. It is also necessary to establish an organisational structure within enterprises (energy management) and introduce M&T information systems. This will result in an extensive database on energy consumption in the industry sector and provide future indicators for benchmarking against enterprises in the same branch in Croatia and also in the EU. As part of this measure, a plan of activities for key industrial branches is to be prepared and of energy efficiency targets is to be co-financed. Consumption of all forms of energy and energy sources in industrial processes Industrial plants National Implemented activities and achieved results: Key elements of IEEN, as defined in the 1 st NEEAP, are: establishment of EMS, M&T (monitoring and analysis of energy consumption, setting of targets), energy audits, benchmarking, demonstration projects ( of best practice projects and dissemination of information thereon), training and education. There was no systematic of the mentioned activities as was envisaged by the 1 st NEEAP. Future activities: 1. Development of the programme of activities of the Network by 2016 ME and EIHP are obliged to initiate preparation of such a programme by the end of The programme is to be prepared in the second half of 2012 it should be drawn up in cooperation with the CCE and associations from individual branches of industry. The programme is to be presented in public and ESCOs and commercial banks should be incited to participate in of the activities thereunder. The EPEEF is obliged to plan all the necessary funds for co-financing the programme by the end of The programme is to contain in particular the following: o Selection of key industrial branches for of the activities o Detailed proposal of energy efficiency measures for each branch and plan for those measures o Required co-financing amounts to be ensured by the EPEEF 2. Implementation of the programme EIHP Application of the plan should commence in the second half of 2013 at the latest and continue until 2016, with a possibility of its prolongation by The plan is to be monitored on the annual basis in terms of used funds and achieved savings of energy and CO2 emissions. Financing source: EPEEF Required funds will be determined in a detailed programme of activities of the Network. ME drawing up of the programme EIHP in cooperation with Centre of the programme EPEEF co-financing ME A methodology is to be established for future activities (for each standardised measure a BU method may be established or an estimation of savings pursuant to IPMVP may be requested). The energy saving potential is estimated at 10% of the average sector consumption. This equals approx PJ in 2016 and 0.96 PJ in

112 Savings achieved in 2010 Energy savings expected in 2016 Expected impact on energy savings for 2020 Assumptions Overlapping, multiplication effect, synergy 0 To be estimated in the detailed programme To be estimated in the detailed programme / / 112

113 Title of the measure Voluntary agreements with industry Index of the measure I.2 Category Voluntary agreements and cooperative instruments Beginning: Completion: 2016 Timeframe Envisaged larger changes, amendments, improvements: This measure is integrated with the measure I.5, under which it is described in more detail. The target is to improve energy efficiency in the industrial plants subject to paying a CO2 emissions fee. Voluntary agreements obligate companies to implement a number of EEI Target / short measures and to set up an energy management structure. In turn, they conclude a contract Description description with the EPEEF according to which the EPEEF pledges to reduce a portion of the CO2 fee imposed on the company. Targeted final Consumption of all forms of energy and energy sources in industrial processes consumption Target group Industrial plants Regional National application Information on Energy savings A list and description of activities aiming at the measure Financial means and sources of financing Executive body Monitoring (supervision) bodies Method of monitoring / measuring energy savings Savings expected in 2010 according to the 1 st NEEAP Savings achieved in 2010 Energy savings expected in 2016 Expected impact on energy savings for 2020 Assumptions Overlapping, multiplication effect, synergy Implemented activities and achieved results: According to the 1 st NEEAP, a feasibility study on the introduction of the system of voluntary agreements should have been prepared, along with criteria for companies/branches with which voluntary agreements may be concluded, methods to monitor achievements, and selection of incentives for participation in the voluntary agreements programme. Provided the study yielded results, the voluntary agreements programme should have been launched in EIHP will be in charge of the programme. These activities were implemented during the period encompassed by the 1 st NEEAP and their is planned in the future as well. Pursuant to the Regulation on unit charges, corrective coefficients and detailed criteria and benchmarks for determining the fee on emissions to the environment of carbon dioxide (Official Gazette 73/07 and 48/09) and the Ordinance on the method and terms for calculation and payment of the fee on emissions to the environment of carbon dioxide (Official Gazette 77/07), it is foreseen that the obligation to pay the CO2 fee may be reduced by a corrective factor which depends on the existence and of a programme for reducing CO2 emissions. Details in this regard are laid out as part of the measure I.5. / EIHP, EPEEF ME, MENP / / 0 / / / / 113

114 Title of the measure Energy auditing scheme for industry Index of the measure I.3 Category Information and mandatory information measures Beginning: 2009 Completion: 2016 Timeframe Envisaged larger changes, amendments, improvements: This measure is related to the legal obligation of energy management for large consumers. This measure is to ensure support for estimation of potential energy savings in industrial plants by co-financing energy audit. Energy auditing scheme for industry must include the following: Target / short obligatory energy auditing for companies with annual consumption exceeding the Description description one prescribed by the Ordinance on energy audits of buildings (>10,000 MWh) a voluntary scheme of energy audits for other companies, especially for SMEs which are to be provided subsidies for energy audits. Targeted final Consumption of all forms of energy and energy sources in industrial processes consumption Target group Industrial plants Regional National application Information on Energy savings A list and description of activities aiming at the measure Financial means and sources of financing Executive body Monitoring (supervision) bodies Method of monitoring / measuring energy savings Savings expected in 2010 according to the 1 st NEEAP Savings achieved in 2010 Energy savings expected in 2016 Expected impact on energy savings for 2020 Implemented activities and achieved results: During the period of the 1 st NEEAP, application of this measure was not achieved as planned, because the Ordinance on energy audits of buildings was adopted no sooner than early in However, through activities of the EPEEF, support to of energy audits in industrial plants has been provided since In the period from 2005 to 2010, financial support for of 43 energy audits in the industry sector was provided. Future activities: 1. Establishment and promotion of a scheme for large consumers ( of cost-effective measures should be a condition for energy audits, which is in line with the legal obligation, and monitoring of fulfilment of the said obligation is to be ensured) 2. Establishment and promotion of a scheme for other industrial consumers, in particular for SMEs and separately for individual branches of industry Users of subsidised energy audits must commit themselves to the setting up of an energy management system; in addition to subsidised energy audits, they should be provided with a possibility to get subsidies for devices for supervision, monitoring and analysis of energy consumption. The scheme of support and co-financing of energy audits in the industry sector should be established by the Agency and EIHP and financed by the EPEEF, in line with subordinate regulations and the EPEEF's financial plan. Total funds used by the end of 2010: EPEEF HRK 2,111,218 (EUR 285,300) Planned funds by the end of 2013: EPEEF HRK 5,000,000 (EUR 675,700) the estimation is based on an assumed number of energy audits (100) and on the average energy audit price amounting to HRK 50,000 (according to EPEEF data). Agency and EIHP in cooperation with Centre ME, MCPP A national methodology for BU monitoring of effects of energy audits as a measure of informing on potentials for energy savings has been developed. Details are provided in the annex to the Ordinance on the methodology for monitoring, measuring and verification of final energy consumption savings (Official Gazette 77/12). The energy saving potential is estimated at 2% of the average sector consumption. This equals approx PJ in 2016 and 0.14 PJ in TJ (7.86 GWh) (estimation based on energy audits co-financed by the EPEEF) May not be estimated May not be estimated 114

115 Assumptions Overlapping, multiplication effect, synergy Energy savings resulting from the energy audit itself are determined on the basis of estimated potentials given in the final report of the energy audit. It is assumed that at least 5% of those potentials will be achieved. Certain European recommendations 81 contain significantly higher assumptions (20% for electricity and 15% for other forms of energy), but they will not be used because they take into account only the effect of raised awareness of users which would result in better maintenance and management procedures (so-called soft measures) by means of which energy savings are achieved. When evaluating this measure, effects of implemented energy efficiency investment projects are not taken into consideration. Overlapping is avoided by elimination from calculated energy savings of those energy audits for which it is known that all the proposed measures have been implemented. As data on the number of large consumers and their total energy consumption are missing, it is not possible to estimate expected energy consumption reductions resulting only from this measure neither by 2016 nor by / 81 Source: EMEEES project, Method 18 Energy audits: 115

116 Title of the measure High efficient cogeneration Index of the measure I.4 Category Financial instrument, regulatory framework Beginning: 2007 Timeframe Completion: 2016 Envisaged larger changes, amendments, improvements: / Description Information on Energy savings Target / short description Targeted final consumption Target group Regional application A list and description of activities aiming at the measure Financial means and sources of financing Executive body Monitoring (supervision) bodies Method of monitoring / measuring energy savings Savings expected in 2010 according to the 1st NEEAP Savings achieved in 2010 Energy savings expected in 2016 Expected impact on energy savings for 2020 Assumptions In addition to the system of inciting electricity production by means of high efficient cogeneration, this measure also envisages passing of an appropriate regulative framework for promoting thermal energy production from cogeneration (defining the status of eligible thermal energy producer). Production of thermal and electrical energy in industrial plants. Industrial plants National Implemented activities and achieved results: In the period of application of the 1 st NEEAP, it was planned to pass regulations on the status of eligible thermal energy producer, which would additionally stimulate cogeneration. This has not been achieved. Regulatory framework related to the promotion of electricity production from high efficient cogeneration has been in force since July By the end of 2010, three cogeneration plants with the total installed electric power of 10,033 MW were granted the status of eligible producer. Future activities: 1. ME is to adopt regulations promoting thermal energy production from cogeneration by the end of 2013 and to set up the prescribed system of incentives. 2. The system of financing electricity generated by industrial cogeneration plants should be adapted so that the existing industrial cogeneration plants older than 12 years would become interested in the placing of electricity into the power system. 3. The procedure for small cogeneration plants should be simplified. 4. The procedure for existing cogeneration plants should be simplified and their participation in the electricity market should be ensured. Total funds used by the end of 2010: HROTE: depending on the quantity of produced electricity and based on unit feed-in tariffs defined in the Tariff system for the production of electricity from renewable energy sources and cogeneration (Official Gazette 33/07), the total paid funds from the system for promotion of electricity production from renewable energy sources and cogeneration amounted to HRK 143, in Planned funds by the end of 2013: HROTE: depending on the quantity of produced electricity and based on unit feed-in tariffs defined in the Tariff system (Official Gazette 63/2012). HROTE, ME, HERA regulatory framework and system for promotion of electricity production from renewable energy sources and cogeneration. ME The methodology has been prescribed by the Ordinance on acquiring the status of eligible electricity producer (Official Gazette 88/12), based on Directive 2004/8/EC and EC decisions concerning calculation of primary energy savings, which is a condition for high efficiency of cogeneration. Not estimated 0.33 TJ (0.09 GWh) 172 TJ (48 GWh) 421 TJ (117 GWh) Electricity production by cogeneration plants which are included in the system of subsidies amounts to 249 MWh. Taking into account required primary energy savings of 10% with 116

117 regard to separated production of electrical and thermal energy (reference power plant and reference boiler house), it may be calculated that the annual consumption of primary energy from fuels amounts to approximately 3.3 TJ, so that the achieved savings amount to 0.33 TJ. Overlapping, multiplication / effect, synergy Title of the measure CO2 emissions fee for large polluters Index of the measure I.5 Category Financial instrument, regulatory framework Beginning: 2007 Completion: 2016 Timeframe Envisaged larger changes, amendments, improvements: EPEEF is obliged to implement this measure. Description Information on Target / short description Targeted final consumption Target group Regional application A list and description of activities aiming at the measure Croatia introduced the CO2 emissions fee in The Government Regulation (Official Gazette 73/07) stipulates that the fee is to be paid by all the polluters listed in the Cadastre of Emissions to the Environment (CEE). The revenues (expected to reach EUR 10 to 20 million p.a.) will be managed by the EPEEF, which should allocate the funds in question for the purpose of co-financing activities aimed at improving energy efficiency, in particular in the industry sector. Consumption of all forms of energy and energy sources in industrial processes Industrial plants National Implemented activities and achieved results: The Regulation on unit charges, corrective coefficients and detailed criteria and benchmarks for determining the fee on emissions to the environment of carbon dioxide (Official Gazette 73/07) stipulates that the obligation to pay the CO2 fee may be reduced by a corrective factor which depends on the existence and of a programme for reducing CO2 emissions. The programme needs to contain the following: a list of individual stationary sources of CO2 emissions owned or used by undertakings liable to pay the CO2 emissions fee; the trend of CO2 emissions according to individual sources of CO2 emissions in the period from 1990 until the calendar year for which the latest data are available; the overview and technical analysis of measures to reduce CO2 emissions in line with best available techniques; the analysis of potential reduction of CO2 emissions and costs of of the measures; projection of CO2 emissions under the assumption that the measures are applied at least three calendar years from the year of the programme development; the order of of the measures; the deadlines, responsible authorities, progress/achievement indicators, and the manner of notification. The programme is approved and its supervised by the EPEEF. By implementing some of energy efficiency measures in the industry sector, the Fund acknowledged investments of industrial companies in line with acceptable costs with the aim of reduction of the CO2 emissions fee, i.e. revenues of the Fund. Through of this measure, the Fund performed indirect financing of the projects. The Fund has not been monitoring of this measure separately but by means of evaluation of investments and submitted programmes of the undertakings liable to pay the CO2 emissions fee, performed by the permanent expert commission of the Fund operating within the framework of the Fund service in charge of finances. The EPEEF has not executed the second part of this measure in the manner envisaged by the 1 st NEEAP. The revenues arising from the CO2 fee are not entirely used for energy efficiency projects. The funds collected from the CO2 fee are going to the integral budget of the EPEEF, which means that they are spent for various purposes, which is to be changed in EPEEF plans. In the industrial sector, the EPEEF financed a total of only 23 projects with very various characteristics (interventions on boilers, on cooling devices, on processing machines, replacement of fuel, etc.). It is obvious that those projects achieved large energy savings, which means that, with regard to their potential and contribution to achievement of a national target, they should be paid more attention to, by means of co-financing of individual projects and projects defined by this NEEAP. Future activities: 1. The EPEEF should respect this measure and invest a significant portion of the funds collected from the CO2 fee into co-financing of energy efficiency projects in the industry sector. 2. The EPEEF is to continue evaluating the investments and programmes aiming at emission reduction of undertakings liable to pay the CO2 fee. 3. Pursuant to the above mentioned Regulation, the EPEEF monitors of 117

118 Energy savings Financial means and sources of financing Executive body Monitoring (supervision) bodies Method of monitoring / measuring energy savings Savings expected in 2010 according to the 1 st NEEAP Savings achieved in 2010 Energy savings expected in 2016 Expected impact on energy savings for 2020 Assumptions Overlapping, multiplication effect, synergy programmes aiming at reduction of CO2 emissions. The service within the Fund in charge of finances and the expert commission of the Fund for evaluation of investments and submitted programmes for CO2 emission reduction are obliged to submit financial and technical data to the organisational unit of the Fund which performs agency operations as an body for energy efficiency, for the purpose of monitoring reduction in energy consumption, so as to prove that application of this measure results in energy savings. Total funds used by the end of 2010: EPEEF: HRK 31,830, 248 (EUR 4,300,000) co-financed projects in the industry sector Planned funds by the end of 2013: EPEEF: HRK 30,000,000 (EUR 4,000,000) EPEEF ME, MENP The effect was estimated for 23 projects co-financed by the EPEEF. Savings were measured on the basis of reports on energy consumption in a plant or a part thereof before and after the of the energy efficiency measure. The Fund did not express indirect financing by means of reduction of the CO2 fee to undertakings as an energy efficiency measure. In order to monitor reduction of energy consumption for the purpose of proving that there are energy savings resulting from the application of this measure, the ME will in cooperation with the MENP develop a methodology for measurement and verification of energy savings through the mentioned programmes for CO2 emission reduction. Not estimated TJ ( GWh) 1,000 TJ ( GWh) 2,000 TJ ( GWh) This measure is a combination of the voluntary approach based on reduced payment of the CO2 fee and use of funds collected from that fee for the purpose of co-financing projects in the industry sector. Taking into consideration the former experience and the great saving potential, the target is to achieve a total of 1 PJ of saved energy by With regard to the character of the measures in the industry sector and their relatively long lifespan, it is assumed that all the savings would be "alive" both in 2016 and in This measure overlaps with the measure I.1, where the focus is on specific activities oriented towards individual branches or individual types of energy consumption in industry. It is necessary to ensure that only effects of the activities which may not be attributed to the measure I.1 be recorded as effects of this measure, so as to avoid double calculation of savings. 118

119 Title of the measure Introduction of efficient electric motor drives Index of the measure I.6 Category Financial instrument, regulatory framework Beginning: 2011 Timeframe Completion: 2016 Envisaged larger changes, amendments, improvements: New measure Description Information on Energy savings Target / short description Targeted final consumption Target group Regional application A list and description of activities aiming at the measure Financial means and sources of financing Executive body Monitoring (supervision) bodies Method of monitoring / measuring energy savings Savings expected in 2010 according to the 1 st NEEAP Savings achieved in 2010 Energy savings expected in 2016 Expected impact on energy savings for 2020 Assumptions Overlapping, multiplication effect, synergy Electric motor drives account for the major portion of electricity consumption in industry up to 90%. This area has a great potential for savings, but so far no systematic measures or programmes have been implemented. Introduction of efficient electric motor drives refers to instalment of high efficient electric motors and introduction of the revolution number control (VSD) by frequency and/or amplitude where this is purposeful, e.g. in the processes where the working substance flow is continuously changing. Depending on the power category of the motor, this measure may achieve technical savings of electricity exceeding 16% and economic savings exceeding 10%. Reduction of the installed power would have a positive effect on the electrical power system stability. Consumption of electricity in industrial plants Industrial plants National Future activities: 1. Development of standardised energy audits of rational energy consumption of electric motor drives in industrial plants with evaluation of cost-effectiveness of improvement, with a simple methodology applicable to practically all industrial plants 2. Establishment of favourable financing models for development of guarantee mechanisms acceptable to banks Financing sources: EPEEF and commercial banks Required funds will be determined in a detailed programme of activities of the Network. EIHP, HEP, ESCOs of the measure in cooperation with Centre EPEEF co-financing ME The methodology is defined by the International Performance Measurement and Verification Protocol (IPMVP), where standard procedures for determining costeffectiveness and resulting savings are established. Not estimated / 0.82 PJ (227 GWh) 1.02 PJ (284 GWh) It is assumed that pumps, ventilators, transportation and other electric motor drives, to which the mentioned measures may be applied, account for up to 90% of electricity consumption in the industry sector. Economic savings are lower than the technical ones, but nevertheless high enough for this measure to be economically feasible. It is necessary to encourage companies to implement integral programmes of replacement and improvement of their electric motor drives, and not to resort to emergency solving of individual cases. Developed standardised energy audits provide evaluation of purposefulness and potential for application of this measure, after which financing will be easier, provided there are developed financial models. A significant number of older electric motors which are used are overcapacitated by of this measure the installed electrical power would be reduced, as well as the related costs, and sudden overloading of the network would be avoided. 119

120 Measures in transport The transport sector is one of the most intense energy consumers in the Republic of Croatia. In the period from 1991 to 2009, the share of the transport sector's consumption in the final consumption increased from 21% to 34%, with the average annual increase of 4%. The trends in energy consumption in the transport sector in the period from 2003 to 2010 are shown in Table 28. In relation to 2007, energy consumption in the transport sector decreased by 3.33%. Since 2007, when the peak fuel consumption was achieved, a continuous fall has been recorded. The main reason for this change in the energy consumption trend arises from the global economic and financial crisis, which hit Croatia in the second half of 2008 and manifested itself in reduced need for mobility, which had lower fuel consumption as a consequence. The freight transport structure is dominated by road transport, which accounts for approximately 67%, the same as in the passenger transport structure, where it accounts for more than 85%. With regard to fuel, diesel accounts for 54.6% of the consumption structure and motor gasoline for 35.6% [82]. In the period from 1995 until mid 2008, almost constant increase in the total number of vehicles in the Republic of Croatia was recorded, with an average annual growth rate of 4.8%. In the structure of the total number of passenger cars, the share of gasoline cars decreased from 80.5% in 1995 to 61.2% in 2009 and the share of diesel cars increased in the same period from 17.5% to 34.3%. The share of vehicles with an LPG drive increased from 2.0% in 1995 to 4.6% in The above mentioned structure shows obvious changes in customers' habits and their need to possess increasingly large and strong vehicles, but at the same time it shows that criteria of purchasing more energy efficient vehicles are relatively well met, which is indicated by the increasing share of diesel cars. The mechanism of positive structural changes is based exclusively on market principles, owing to a more favourable price of diesel fuel during the observed period, i.e. without special stimulating measures. Table 28 Energy consumption in transport in the period from 2003 to * 2010/ Energy consumption PJ % in households * Energy consumption in 2010 has been estimated The 1 st NEEAP defines several measures aiming to reduce the energy consumption growth in the transport sector, with the emphasis on the road transport. The measures envisaged by the 1 st NEEAP were partially implemented. The largest success was achieved by the "Programme of reducing negative impact of transport on the environment First measure: reducing emissions of hazardous gases from road vehicles of categories N2, N3, M3 ( ), the so-called EURO 5 programme. The programme was implemented by the EPEEF together with MELE and MMTI. In 2009 and 2010, the Fund co-financed replacement of 1,155 old lorries and buses which satisfy the EURO 0, 1, 2 and 3 standards by new ones which satisfy the EURO 5 standard. In the previous NEEAP, several measures for energy efficiency increase in the transport sector were initiated and realised, exclusively pertaining to the road transport. Some of the implemented measures belong to the technical category, whereas the other measures are of informational, educational and financial type. With regard to the fact that transport accounts for the majority of final consumption and that the implemented measures contributed only inconsiderably to the achievement of energy efficiency targets, the measures from the 1 st NEEAP will not be further revised in this NEEAP (because they were too general, which was their serious shortcoming), but a wider range of more focused measures will be defined on their basis. In the next period, it is necessary to initiate more proactive of the measures in question. 82 All the data refer to 2009 and are taken from the document "Annual Energy Report Energy in Croatia 2009", MELE, Zagreb,

121 A summary of the existing and new measures for energy efficiency improvement in the transport sector is contained in Table 29, whereas detailed descriptions of activities are given in separate tables for each measure. 121

122 Table 29 Overview of individual measures for the transport sector No T.1-1 T.2-1 T.3-1 Title of the energy saving measure Introduction of European standards Information campaign on energy efficient behaviour in transport Promotion of sustainable transport systems and efficient use of fuels Targeted final consumption Road vehicles Road transport, public transport Road transport, public transport T.4-1 Promotion of cleaner vehicles Road vehicles T.1 Eco-driving training for drivers of road vehicles T.2 Intermodal freight transport T.3 T.4 Introduction of bonus-malus scheme for vehicles in view of CO2 emissions/km Introduction of car sharing scheme in cities Duration Continuously Energy savings achieved in 2010 [PJ/ GWh] PJ PJ Share in the sector target 3 for 2010 [%] Energy savings expected in 2016 [PJ/ GWh] Share in the sector target 83 for 2016 [%] N/A N/A N/A N/A N/A N/A N/A N/A 0.56 N/A N/A 3.74 N/A N/A Road vehicles, cars / / Road freight transport / / N/A N/A Road vehicles / / Road vehicles; urban transport / / T.5 Speed limitation Road vehicles / / T.6 T.7 T.8 Financial support for energy efficient vehicles Financial support for developing the infrastructure for city bikes Promoting e-mobility and developing a network of filling Road vehicles / / Bicycles / / Road electric vehicles / / N/A N/A Status in relation to the 1 st NEEAP Additional remarks The measures are abandoned and will not be considered any more in the form foreseen in the 1 st NEEAP; however, new, more specific and focused measures are derived from them. New measure New measure New measure New measure New measure New measure New measure The effect of this measure is evaluated by means of a BU method for eco-driving It is necessary to create a national inventory of all newly sold vehicles in the Croatian market. The effect of the measure is estimated for each individual scheme. Regulatory measure The EPEEF should establish individual co-financing schemes specified within the framework of the measure. The increase in the number of city bikes is to be monitored. The measures are key prerequisites for success of 83 Target for the transport sector set in the 1 st NEEAP amounts to 5.93 PJ and for the year 2010 it amounts to 1.98 PJ. 122

123 No T.9 T.10 T.11 T.12 Title of the energy saving measure stations for electric vehicles Modification of calculating tax reliefs based on travel expenses Promotion of sustainable city transport systems Advanced regulation of traffic sections equipped with intelligent traffic lights National campaign One day a month without cars Targeted final consumption Duration Energy savings achieved in 2010 [PJ/ GWh] Share in the sector target 3 for 2010 [%] Energy savings expected in 2016 [PJ/ GWh] Share in the sector target 83 for 2016 [%] Public city transport / / N/A N/A Road vehicles / / N/A N/A Road vehicles / / Road vehicles / / TOTAL 0.08 PJ Status in relation to the 1 st NEEAP New measure New measure New measure New measure Additional remarks the measure T.6 and for achieving the savings envisaged thereby. The effect of this measure is evaluated by means of BU indicators. Strong engagement of LRSGUs is necessary. It is necessary to monitor the number of replaced traffic lights. It is necessary to monitor the number of participants in the campaign. 123

124 Title of the measure Index of the measure Category Description Information on Energy savings Timeframe Target / short description Targeted final consumption Target group Regional application A list and description of activities aiming at the measure Financial means and sources of financing Executive body Monitoring (supervision) bodies Method of monitoring / measuring energy savings Savings expected in 2010 according to the 1 st NEEAP Savings achieved in 2010 Energy savings expected in 2016 Expected impact on energy savings for 2020 (where possible) Assumptions Overlapping, multiplication effect, synergy Introduction of European standards T.1-1 Regulatory framework Beginning: 2008 (1 st NEEAP envisaged 2009) Completion: continuously Envisaged larger changes, amendments, improvements: The measure is not valid for the period of the 2 nd NEEAP; however, new, more specific and focused measures are derived therefrom. The target of this measure is to transpose the adopted EU standards into corresponding Croatian laws. Technical requirements for vehicles should include the minimum efficiency of vehicles (emissions restricted to 120 g CO2/km by 2012); minimum efficiency requirements for air-conditioning systems; compulsory installation of accurate tyre pressure monitoring systems; maximum tyre rolling resistance limits for tyres fitted onto light vehicles; use of gear shift indicators; efficiency requirements for light commercial vehicles (175 g/km CO2 by 2012 and 160 g/km CO2 by 2015); use of bio-fuels and labelling of tyres. Road transport Importers and distributors of vehicles National Implemented activities and achieved results: In 2007, the MEPPPC adopted the Ordinance on the availability of information on fuel economy and CO2 emissions of new passenger cars (Official Gazette 120/07), which has been applied since The regulatory framework is to be further developed, but this is no longer considered a separate measure. Financing source: MMTI, MENP regular budgets of these ministries MMTI, MENP MMTI, MENP Energy savings achieved in the previous period which may be related to this measure will be estimated by using TD indicators for road vehicles (indicators P8 or A1, P9 or A2, M5 according to EC recommendations). The energy saving potential is estimated at 3% of the average sector consumption. This equals approx PJ in 2016 and 0.55 PJ in The estimation includes gasoline and diesel. Savings resulting from this measure may not be estimated separately. They are included in the estimation carried out on the basis of TD indicators. / / / / 124

125 Title of the measure Index of the measure Category Description Information on Energy savings Timeframe Target / short description Targeted final consumption Target group Regional application A list and description of activities aiming at the measure Financial means and sources of financing Executive body Monitoring (supervision) bodies Method of monitoring / measuring energy savings Savings expected in 2010 according to the 1 st NEEAP Savings achieved in 2010 Energy savings expected in 2016 Expected impact on energy savings for 2020 (where possible) Assumptions Overlapping, multiplication effect, synergy Programme of informing and education of drivers on energy efficient behaviour in transport T.2-1 Information and mandatory information measures Beginning: 2009 Completion: continuously Envisaged larger changes, amendments, improvements: The measure is not valid for the period of the 2 nd NEEAP; however, new, more specific and focused measures are derived therefrom. The national information campaign for promotion of efficient driving is focused on all drivers. Energy efficient driving will be promoted, along with the promotion of use of alternative means of transport and of more efficient vehicles. The campaign will be implemented in cooperation with driving schools, the Croatian Automobile Club and transportation associations. Road transport, public transport, all participants in transport Transportation companies, drivers' associations, driving schools, drivers National Implemented activities and achieved results: The activity carried out as part of this measure, co-financed by the EPEEF, is the information campaign "Let's make the cars green" implemented by HAK in However, this was a onetime, short-term campaign and not a systematic approach as foreseen by this measure. Financing source: EPEEF, MMTI, MENP, EACI (IEE) Allocated funds (EPEEF for the above mentioned campaign): HRK 64,500 (EUR 8,700) MMTI, EPEEF, HAK MMTI, ME Energy savings achieved in the previous period which may be related to this measure will be estimated by using TD indicators for road vehicles (indicators P8 or A1, P9 or A2, M5 according to EC recommendations). The energy saving potential is estimated at 2% of the average sector consumption. This equals approx PJ in 2016 and 0.48 PJ in The estimation includes gasoline and diesel. Savings resulting from this measure may not be estimated separately. They are included in the estimation carried out on the basis of TD indicators. / / / / 125

126 Title of the measure Index of the measure Category Description Information on Timeframe Target / short description Targeted final consumption Target group Regional application A list and description of activities aiming at the measure Financial means and sources of financing Executive body Monitoring (supervision) bodies Method of monitoring / measuring energy savings Savings expected in 2010 according to the 1 st NEEAP Savings achieved in 2010 Promotion of sustainable transport systems and efficient use of fuels T.3-1 Information and mandatory information measures; Financial instruments / subventions Beginning: 2008 Completion: 2016 Envisaged larger changes, amendments, improvements: The measure is not valid for the period of the 2 nd NEEAP; however, new, more specific and focused measures are derived therefrom. The target of this measure is to develop a policy of planning sustainable transport systems by means of the following activities: urban transport planning including development of alternative means of transport; improvement of public transport infrastructure and so-called park-and-ride type options (for which local authorities are responsible); promoting the use of more efficient vehicles in public transport by introducing energy efficiency standards and labels; raising awareness among stakeholders in the transport sector of the energy and environmental aspects of transportation; obligatory energy audits in public transportation companies and of cost-effective measures; benchmarking the energy performance indicators of public transportation companies against their EU counterparts; switching to bio-fuels and lower-carbon content fuels in public transportation. Road transport, public transport Transportation companies, drivers' associations, local self-government National, with selected local communities where the pilot projects will be implemented Implemented activities and achieved results: The activity carried out as part of this measure, co-financed by the EPEEF, is installation of devices for fuel consumption monitoring in buses of one transportation company. Financing source: EPEEF Allocated funds (for one project): approximately HRK 477,000 (EUR 64,500). MMTI, EPEEF, LRSGU in cooperation with Centre MMTI, ME A national BU method for evaluating effects of eco-driving activities has been developed. The BU method is used only for known and reported activities co-financed by the Fund; effects of unreported activities are estimated by means of TD indicators for the transport sector according to EC recommendations. The energy saving potential is estimated at 2% of the average sector consumption. This equals approx PJ in 2016 and 0.36 PJ in The estimation includes gasoline and diesel TJ (3.09 GWh) Energy savings Energy savings expected in 2016 Expected impact on energy savings for 2020 (where possible) Assumptions Overlapping, multiplication effect, synergy / / All the assumptions used for estimation of the savings, both the achieved and future ones, are described here. The achieved savings are related to only one project and are evaluated according to the data on fuel consumption before and after the introduction of the monitoring system in 100 buses, i.e. according to the measured data. For future monitoring of the savings resulting from such activities, a national methodology has been set up and described in detail in the document "Measurement and verifications of energy savings by using bottom-up methods". / 126

127 Title of the measure Index of the measure Category Description Information on Energy savings Timeframe Target / short description Targeted final consumption Target group Regional application A list and description of activities aiming at the measure Financial means and sources of financing Executive body Monitoring (supervision) bodies Method of monitoring / measuring energy savings Savings expected in 2010 according to the 1 st NEEAP Savings achieved in 2010 Energy savings expected in 2016 Expected impact on energy savings for 2020 (where possible) Assumptions Promotion of cleaner vehicles T.4-1 Financial instruments / subvention Beginning: 2009 Completion: continuously Envisaged larger changes, amendments, improvements: The measure is not valid for the period of the 2 nd NEEAP; however, new, more specific and focused measures are derived therefrom. The "cleaner" vehicles promotion programme contains promotional and financial measures the aim of which is to increase the ratio of purchased cleaner vehicles. Purchase of cars with emissions lower than 130 g CO2/km, hybrid cars and cars using alternative fuels will be promoted, as well as elimination of old vehicles and their replacement by new ones. This part of activities has been initiated through the EURO 5 programme and projects promoting cleaner transport of the EPEEF. Promotion mechanisms should have included use of free parking spaces, use of yellow tapes in cities, etc. Since of this part of activities has not started, new measures are now defined. The most important part of the programme includes financial support for purchase of vehicles. The subvention scheme is run by the EPEEF. This has been elaborated under new measures. Road vehicles All buyers of cars (citizens and transportation companies) National Implemented activities and achieved results: 1. The EURO 5 programme replacement of 1,155 road freight vehicles and buses of unacceptable environmental standards (EURO 0, 1, 2, 3) by environmentally more acceptable vehicles of EURO 5 standard. Transportation companies were allocated subventions amounting to HRK 50,000 per vehicle for large companies and HRK 70,000 per vehicle for small and medium-sized companies. The total number of registered freight vehicles in Croatia is 164,671 and of buses 5,701, according to data provided by the Central Bureau of Statistics, which means that the programme encompassed less than 1% of these vehicles. 2. Procurement of electric vehicles this activity was not especially programmed or announced in tenders by the EPEEF. A small number of implemented activities is based on users' reports; so far, procurement of eight special purpose vehicles for two national parks has been co-financed. Financing source: EPEEF Financing amount of implemented activities: 1. EURO 5 programme HRK 80,480,000 (EUR 10,900,000) 2. Procurement of electric vehicles HRK 306,000 (EUR 41,300) EPEEF in cooperation with Centre MMTI, ME A national BU method based on the difference between the fuel consumption of old and new vehicles and on the average annual mileage has been developed. The BU method is used only for known and reported activities co-financed by the Fund; effects of unreported activities are estimated by means of TD indicators for the transport sector. The energy saving potential is estimated at 2% of the average sector consumption. This equals approx PJ in 2016 and 0.21 PJ in The estimation includes gasoline and diesel. Total savings: TJ Savings under the EURO 5 programme: TJ Savings resulting from procurement of electric vehicles: 0.01 TJ / / In order to estimate the achieved savings resulting from the EURO 5 programme, the average fuel consumption per kilometre has been determined for each of the 1,155 old and new lorries; the mileage has been calculated on the basis of the following assumptions: lorries pass 500 km a day; they drive 250 working days a year; out of this total number, 55% refer to Croatia (according to data of the Central Bureau of Statistics on the portion of international transport in 127

128 Overlapping, multiplication effect, synergy Title of the measure Description the total movement of goods). In this manner, average mileage was calculated approximate to the ones reported by individual transportation companies. For ex-ante estimations, data from the ODYSSEE database for mileage are used, as well as the reduction in fuel consumption by 2.56 l/100 km for replacement of old lorries by new ones, and the consumption of a reference car with an internal combustion engine of 67 kwh/100 km (used for comparison with electric vehicles). Overlapping and double calculation of savings are avoided by evaluating each individual activity. Eco-driving training for drivers of road vehicles Index of the measure T.1 Category Information and mandatory information measures Beginning: 2011 Completion: 2016 Timeframe Envisaged larger changes, amendments, improvements: New measure Information on Target / short description Targeted final consumption Target group Regional application A list and description of activities aiming at the measure Eco-driving has been recognised as one of most efficient measures for promoting energy efficiency at the level of the European Union. By launching the national eco-driving campaign, the maximum level of awareness of all citizens and drivers in the Republic of Croatia with regard to benefits of this modern, intelligent and environmentally acceptable style of driving could be achieved, by means of active of eco-driving training among licensed (existing) drivers. Special elements of the national campaign should be dedicated to eco-driving training for: drivers of passenger cars; buses; freight vehicles > 3.5 t. Training on eco-driving elements could be carried out in the form of short exercises (lasting up to 60 minutes per candidate) among drivers who got their driving licence prior to the entry into force of the Ordinance on the training of candidates for drivers (OG 13/09), which introduces the obligation of training on eco-driving elements as part of the standard training of candidates for drivers. It should be pointed out that the proposed measure does not refer to new drivers, who are trained for eco-driving in line with legal obligations contained in the above mentioned Ordinance. With regard to the fact that approximately 45,000 new candidates are trained for drivers annually in the Republic of Croatia, approximately 100,000 drivers of passenger cars have been trained on eco-driving techniques as part of their training for drivers so far. On the other hand, it is estimated that the total number of active drivers in the Republic of Croatia amounts to 2,000,000. The current difference of 1,900,000 are drivers who in the past, prior to 2009, acquired negligible or no skills of eco-driving at all. Such drivers are the target group for this measure. Road passenger and freight vehicles and buses All drivers of passenger cars who passed the driving licence examination prior to the entry into force of the Ordinance on the training of candidates for drivers (OG 13/09), drivers of buses in city public transportation, drivers of public and commercial freight vehicles with the maximum allowed mass of 3.5 t National 1. Training of examiners and instructors Prior to the launching of the eco-driving campaign, it is necessary to conduct training of examiners and instructors who will be certified and authorised to implement ecodriving training in the category of licensed passenger car drivers, bus drivers and freight vehicle drivers in line with EU standards. A single European eco-driving certificate has been defined and adopted within the framework of the European ECOWILL 84 project; in order to transpose it into Croatian practice, the Energy Institute Hrvoje Požar as the national ECOWILL project coordinator for Croatia has, in cooperation with the Croatian Automobile Club (HAK), already conducted training of 14 initial instructors/examiners (coaches) 85 who will present the basis for further education and training of coaches for of authorised eco-driving

129 Energy savings Financial means and sources of financing Executive body Monitoring (supervision) bodies Method of monitoring / measuring energy savings Savings expected in 2010 according to the 1 st NEEAP Savings achieved in 2010 Energy savings expected in 2016 Expected impact on energy savings for 2020 (where possible) Assumptions / Overlapping, multiplication / effect, synergy trainings. It should be pointed out that this training goes further than the obligation prescribed by the above mentioned Ordinance, because authorised coaches will adopt a single practice of conducting eco-driving training, which has so far not been harmonised at the level of all driving schools and which is applied in the territory of other EU Member States. In the Republic of Croatia, training of candidates for drivers is currently conducted by 1,250 driving instructors who are employed by 383 driving schools. HAK is the authorised expert organisation which conducts driving exams in the Republic of Croatia by way of 85 authorised examiners. The measure envisages training of at least 100 driving instructors and of all 85 examiners by the end of Training of drivers licensed prior to 2009 In order to achieve targets under the NEEAP, training of at least 51,000 licensed passenger car drivers by 2016 is proposed. It is expected that after attending the ecodriving training all attendees will be able to reduce fuel consumption by 10% on the average, along with anticipation of eco-driving principles in practice. Training of at least 2,750 drivers of freight vehicles by 2016 is proposed. By of this measure, savings amounting to at least 7,580 tonnes of fuel are expected by Upon completion of the training, each driver will receive a single certificate on the passed eco-driving training. Currently there are 15 public city transport operators in the Republic of Croatia, with a total of approximately 1,700 buses serving for public city transport. The largest one is ZET, which has 550 buses. In the course of eco-driving training for bus drivers, training of at least 2,600 bus drivers by 2016 is proposed. By of this measure, savings amounting to at least 10,573 tonnes of fuel are expected by Upon completion of the training, each bus driver will receive a single certificate on the passed eco-driving training. In order to carry out this activity, engagement of trained instructors and examiners outside their usual work obligations related exclusively to new drivers is required. To serve the needs of the programme promotion, with the aim to include the desired number of drivers, the domain has been reserved, by way of which participants will be informed of the plan of the national eco-driving campaign. Inclusion of LRSGUs is of particular importance for successful programme. Total required funds: HRK 5,545, annually: IEE: HRK 83, provided for 2011, 2012 and 2013 (activity 1) EPEEF HRK 1,365, (activity 2) MMTI: HRK 1,365, (activity 2) MENP HRK 1,365, (activity 2) LRGU: HRK 1,365, (activity 2) HAK, EIHP in cooperation with Centre EPEEF co-finncing MMTI, MENP, MI, EPEEF For the purpose of systematic monitoring of savings, it is necessary first of all to create a national inventory list of all attendees of the eco-driving training, by means of which records on the attendees will be kept and from time to time questionnaires will be distributed in order to collect data on achieved savings after the training was attended. / / Total: 1,232 TJ Passenger cars 456 TJ Buses: 452 TJ Freight vehicles: 324 TJ Total: 3,192 TJ Passenger cars 1,239 TJ Buses: 1,153 TJ Freight vehicles: 800 TJ 129

130 Title of the measure Intermodal freight transport Index of the measure T.2 Category Regulatory framework, financial instruments Timeframe Beginning: Completion: Envisaged larger changes, amendments, improvements: New measure Target / short Intermodal transport includes several methods of transportation both in the passenger and in the description freight transport. This measure is focused only on freight transport and its potential regarding Description disburdening of road routes and reduced fuel consumption by using railway infrastructure and inland waterways. For of this measure, it is necessary to adopt a corresponding regulatory framework and corresponding infrastructure for (un)loading of containers. Targeted final consumption Road freight transport Target group Transportation companies, concessionaires of motorways, railway, river ports Regional application National Information on Energy savings A list and description of activities aiming at the measure Financial means and sources of financing Executive body Monitoring (supervision) bodies Method of monitoring / measuring energy savings Savings expected in 2010 according / to the 1 st NEEAP Savings achieved in 2010 / Energy savings expected in 2016 N/A Expected impact on energy savings for 2020 (where N/A possible) Assumptions / Overlapping, multiplication / effect, synergy 1. Drawing up of a programme for promotion of intermodal freight transport: The existing legal and regulatory framework is to be analysed in detail as part of the programme and proposals are to be given for its improvement so as to enable intermodal freight transport. The programme should also evaluate the status of infrastructure (reception locations for (un)loading of freight, status of railways, capabilities of river ports) and define routes on which intermodal freight transport will be applied. Development of the programme is a responsibility of the MMTI and Croatian Railways, and concessionaires of motorways and river ports are also to be included in its drawing up. The programme is to be drawn up by the end of Application of the programme for promotion of intermodal freight transport: Implementation of this measure should commence in the course of 2013, in line with recommendations under the programme referred to in point 1. MPPI (activity 1) For activity 2, it is impossible to make estimation or to propose financing sources. MMTI in cooperation with Centre MMTI, ME The method for measuring energy savings resulting from intermodal transport must be defined already in the programme for promotion of intermodal freight transport (activity 1). It is to be based on the system of monitoring the freight quantity and on the difference in fuel consumption if the fuel is transported by lorries and if it is transported by other means of transportation, i.e. railway or waterways. 130

131 Title of the measure Introduction of bonus-malus scheme for vehicles in view of CO2 emissions/km Index of the measure T.3 Category Financial instruments Beginning: 2012 Completion: 2016 Timeframe Envisaged larger changes, amendments, improvements: New measure Introduction of the bonus-malus system is based on the establishment of a self-sustaining Target / short financial system the aim of which should be to stimulate purchase of / conversion to more Description description efficient cars and cars with lower emissions of CO2 and of other hazardous gases. Targeted final Road vehicles cars consumption Target group Passenger car drivers Regional National application A proposal of subventions and penalties for individual categories of passenger cars is contained in the table below. Information on A list and description of activities aiming at the measure g CO2/km EUR Bonus < [70,100] [101,120] +700 [121,130] +200 [131,160] 0 Malus [161,165] -200 [166,200] -750 [201,250] > It is expected that the introduction of the bonus-malus scheme could contribute to reduction in the average consumption of cars by 2%, because it should motivate end buyers to decide on purchasing a more efficient car. Application of this scheme on the occasion of registration of vehicles is proposed, with postponement of the application for a definite time period for existing vehicles. All aspects of this scheme's application are to be elaborated in a special programme for application of this measure. Energy savings Financial means and sources of financing Executive body Monitoring (supervision) bodies Method of monitoring / measuring energy savings Savings expected in 2010 according to the 1 st NEEAP Savings achieved in 2010 / Energy savings expected in 2016 Expected impact on energy savings for 2020 (where possible) Assumptions Overlapping, / EPEEF EIHP, EPEEF and VCC in cooperation with Centre MMTI, MENP, MI For the purpose of systematic monitoring of savings, it is necessary to upgrade the national inventory list of all registered vehicles in the market of the Republic of Croatia, on the basis of which records on all subventions and penalties will be kept. / 521 TJ 1,664 TJ / 131

132 multiplication effect, synergy Title of the measure Introduction of car sharing scheme in cities Index of the measure T.4 Category Organisation Beginning: 2012 Timeframe Completion: 2016 Envisaged larger changes, amendments, improvements: New measure Description Information on Target / short description Targeted final consumption Target group Regional application A list and description of activities aiming at the measure Financial means and sources of financing Executive body Monitoring (supervision) bodies Method of monitoring / measuring energy savings Savings expected in 2010 according to the 1 st NEEAP Savings achieved in 2010 / Introduction of the car sharing scheme is an organisational measure the primary aim of which is to increase the degree of utilisation of cars in urban areas, so as to reduce traffic congestion in cities and simultaneously to increase efficiency of vehicles by promoting the use of efficient models of vehicles. Road vehicles cars Inhabitants of urban areas Regional / national On the basis of experience of European countries and cities, it has been observed in practice that one vehicle in the car sharing scheme substitutes 4-8 normal cars. For the purpose of car sharing scheme realisation, as a measure to increase energy efficiency in the transport sector, successive introduction of a minimum of 100 cars a year into the scheme in largest cities by 2020 is proposed. It is estimated that a difference of 2 l/100 km in comparison with existing vehicles may be achieved if most efficient vehicles were introduced into the said scheme. On the other hand, the average annual mileage per vehicle in the car sharing scheme is estimated at 30,000 km. The ME and MMTI are to put the EIHP and EPEEF in charge of cooperation with LRSGUs in order to develop the scheme in individual cities. Implementation of the scheme is to commence in Towns and municipalities, EPEEF, private investors EIHP, local government bodies, towns and municipalities in cooperation with private partners MMTI, MENP, ME Each scheme is to be monitored individually and its effects are to be evaluated in the manner described under the activity description. / Energy savings Energy savings expected in 2016 Expected impact on energy savings for 2020 (where possible) Assumptions Overlapping, multiplication effect, synergy 12.3 TJ 20.5 TJ / / 132

133 Title of the measure Speed limitation Index of the measure T.5 Category Regulatory framework Beginning: 2012 Timeframe Completion: 2016 Envisaged larger changes, amendments, improvements: New measure Description Information on Energy savings Target / short description Targeted final consumption Target group Regional application A list and description of activities aiming at the measure Financial means and sources of financing Executive body Monitoring (supervision) bodies Method of monitoring / measuring energy savings Savings expected in 2010 according to the 1 st NEEAP Savings achieved in 2010 Energy savings expected in 2016 Expected impact on energy savings for 2020 (where possible) Assumptions Overlapping, multiplication effect, synergy Experiences of European countries such as: Denmark, Estonia, Finland, France, Hungary, Ireland, Luxembourg, Malta, etc. point to the fact that speed limitation to levels lower than the standard ones, in particular on motorways, significantly contributes to systematic reduction of fuel consumption in the road transport. Yet more stringent application of the existing speed limitation, including lower tolerance to its exceeding, may yield very good results by itself. Therefore, in the period of application of the 2 nd NEEAP, this measure is focused on lowering the tolerance threshold to exceeding the already prescribed speed. Road vehicles Vehicles driving on motorways National It is estimated that motorways account for an average of 10% of the total annual mileage of vehicles in the Republic of Croatia. By introducing more stringent control of speed limitation on motorways, reduction in fuel consumption by at least 2% is expected. One should bear in mind that of the speed limitation measure is one of the cheapest measures. As part of this measure, the State Office for Metrology (SOM) is to amend the Ordinance on measurement requirements for speed meters for vehicles in road transport (OG 38/01, 43/01 and 19/02) and reduce the allowed safety difference in measuring all speeds to 5%. It is also necessary to consider more stringent application of the Act on Transport Safety, including introduction of a larger number of surveillance cameras with speed control devices; use of data on the time of entering a motorway and the time of exiting the motorway, for the purpose of control of the average speed of vehicles; and introduction of a provision on penalties for exceeding the speed limit by up to 10 km/h on open roads.. No financial means are necessary. MI, SOM MI, MMTI, ME The savings may be assessed in the above mentioned manner and the results will be estimated on the basis of TD indicators according to EC recommendations for road transport (indicators P.8 and P.9). / / 697 TJ 1,327 TJ In the period from 2012 to 2020, an increase in the total number of registered vehicles in the Republic of Croatia by approximately 500,000 is expected (which means that there would be approximately 2.5 million registered vehicles in Croatia); thus, lower tolerance to the exceeding of speed limits on motorways will result in a reduced fuel consumption by 4,300 t by 2016 and by 4,809 t by / 133

134 Title of the measure Financial support for energy efficient vehicles Index of the measure T.6 Category Financial instruments Beginning: 2011 Timeframe Completion: 2016 Envisaged larger changes, amendments, improvements: New measure Description Information on Target / short description Targeted final consumption Target group Regional application A list and description of activities aiming at the measure As part of its activities, the EPEEF co-finances projects focused on cleaner transport. This programme should be upgraded by elaborating special co-financing lines for specific purposes, such as: installation of devices for more efficient use of waste heat from the engine coolant while the engine is turned off procurement of eco-tyres purchase of electric vehicles (cars, scooters, buses) purchase of hybrid vehicles conversionto / purchase of vehicles with LPG and CNG drive including diesel-gas (DFD) variant improvement of aerodynamics of freight vehicles Road vehicles, sea transport Drivers and owners of personal and fleet vehicles National Installation of devices for more efficient use of waste heat from the engine coolant while the engine is turned off The measure implies installation of a patented device for more efficient use of waste heat from the engine coolant while the engine is turned off (a concrete example of its application are taxis in winter months while they are not running). Installation of such devices increases efficiency of using waste heat from the block of internal combustion engines during winter months, while the vehicle is in an idle state and the driver is inside. Typical examples are fleet and courier vehicles which are, due to specific needs of business activities, operational even when they are not in a driving mode. The market price of such devices amounts to approximately EUR 500. If a vehicle with an internal combustion engine is heated three hours a day, the investment will pay off for the customer in: 59 working days for taxis and police cars; 48 working days for express courier vans or ambulances; 41 working days for application in light commercial vehicles used for deliveries or in mini-buses. For of this measure, financial support for the device installation in a minimum of 1,000 vehicles annually is proposed, with the time horizon by The target of this measure are fleet vehicles, taxi companies, express mail services and other postal vehicles, delivery vehicles, police vehicles, mini-buses, military vehicles, construction machines, municipal service vehicles, ambulances, limousines, agricultural machines. Procurement of eco-tyres Promotion of replacement of conventional tyres may contribute to systematic reduction in fuel consumption per kilometre by 5% on the average. As part of of the financial measure, promotion of replacement of old tyres with new, eco-tyres is proposed for a total of 27,000 vehicles by By implementing the measure in the above mentioned scope, cumulative decrease in fuel consumption of 409 tonnes by 2016 and 972 tonnes by 2020 is expected. Purchase of electric vehicles (cars, scooters, buses) Electric vehicles are a constituent element of the new urban mobility concept e-mobility, which will make a significant breakthrough in the European market already in the current decade. Efficiency of electric vehicles with the current typical mixture of power sources used for electricity production is 20% to 80% at the level of primary energy consumption in comparison with conventional vehicles equipped with internal combustion engines. So as to facilitate entry of electric vehicles into the market, this measure proposes financial support for buyers of electric vehicles by means of grants. For the purpose of of this measure, it is proposed to provide financial support to buyers of a total of 15,000 electric vehicles by For the sake of comparison, specific consumption of electric vehicles amounts to approximately 43 MJ/100 km, whereas for conventional vehicles the consumption equals ~ 273 MJ/100 km at the final consumption level. If the difference in the specific consumption amounting to 230 MJ/100 km would be applied to the above mentioned 15,000 vehicles by 2016, PJ could be avoided by 2016 and 0.42 PJ by Purchase of hybrid vehicles Hybrid vehicles represent a transitional technological solution on the way to total electrification of a fleet. In comparison with conventional vehicles with internal combustion engines, hybrid vehicles are up to 40% more efficient at the final energy consumption level. For 134

135 Energy savings Financial means and sources of financing Executive body Monitoring (supervision) bodies Method of monitoring / measuring energy savings Savings expected in 2010 according to the 1 st NEEAP Savings achieved in 2010 Energy savings expected in 2016 Expected impact on energy savings for 2020 (where possible) the purpose of of this measure, it is proposed to provide financial support to buyers of a total of 6,000 electric vehicles by For the sake of comparison, specific consumption of electric vehicles amounts to approximately 162 MJ/100 km, whereas for conventional vehicles the consumption equals ~ 273 MJ/100 km at the final consumption level. If the difference in the specific consumption amounting to 111 MJ/100 km would be applied to the above mentioned 6,000 vehicles by 2016, PJ could be avoided by 2016 and 0.08 PJ by Regarding the fact that the price is higher than that of conventional vehicles, the measure proposes passing of an inciting financial framework which would promote placement of hybrid vehicles on the market. Conversion to / Purchase of vehicles with LPG and CNG drive Vehicles with LPG & CNG drive are an ideal alternative driving system solution for all larger and more intensive energy consumers in the transport sector, e.g. delivery vehicles, fleet vehicles, vehicles of the MI, taxis, buses and lorries. Therefore it is necessary to open a special cofinancing line for cars with LPG/CNG drive, along the lines of the EURO 5 programme implemented in the previous period. Installation / conversion of vehicles to a diesel gas combination An example of this are all diesel vehicles, in particular tractors, construction machines, buses, lorries and other vehicles proved to be most severe air pollutants, as well as fleet and courier vehicles driving in urban areas to serve the needs of business activities. The market price of such devices amounts to approximately EUR 1,600. For installation of larger quantities, with a producer's discount for the Croatian market during the promotional campaign, the price might sink to approximately EUR 1,100. The measure is particularly convenient for vehicles running more than 1,200 working hours a year. For of this measure, financial support to installation of the device in a minimum of 1,000 vehicles annually is proposed by The target of this measure are fleet vehicles, taxi companies, express mail services and other postal vehicles, delivery vehicles, police vehicles, mini-buses, military vehicles, construction machines, municipal service vehicles, ambulances, limousines, agricultural machines. Improvement of aerodynamics of freight vehicles Freight transport is one of the sectors with the highest growth rate as regards energy consumption. Freight vehicles the mass of which exceeds 7.5 t pass most of their mileage as a rule on open roads, at speeds higher than 50 km/h. Since the control frontal surface of freight vehicles is of an extremely unfavourable aerodynamic profile and size, average fuel savings of 10% may be achieved by promoting installation of aerodynamic devices on freight vehicles. For the purpose of of this measure, financial support to buyers of aerodynamic equipment for freight vehicles is proposed for a total of 1,900 vehicles by With regard to the fact that vehicles in the mentioned category pass more than 50,000 km annually on the average and that their average specific consumption equals approximately 30 l/100 km, cumulative reduction in fuel consumption amounting to 1,424 t of fuel is expected by 2016 and 2,356 t by 2020 for the above mentioned number of vehicles. It is necessary to make detailed financial projections within a special programme aimed at of this measure. EPEEF; commercial banks; state supports EPEEF in cooperation with Centre MMTI, ME, MENP A national BU method for monitoring savings resulting from replacement by or purchase of new, more efficient vehicles has been developed, based on the difference in the consumption between old/reference vehicles and new ones and on a certain mileage. Details concerning this method are contained in the document entitled "Measuring and verification of energy savings by using the bottom-up method". / / Total: TJ Devices for using waste heat: 41.4 TJ Eco-tyres: 49.8 TJ Electric vehicles: 78.7 TJ Hybrid vehicles: TJ Aerodynamics of freight vehicles > 7.5 t: TJ Total: 1, TJ Devices for using waste heat: 74.2 TJ Eco-tyres: TJ Electric vehicles: TJ 135

136 Assumptions Overlapping, multiplication effect, synergy Hybrid vehicles: TJ Aerodynamics of freight vehicles > 7.5 t: 544 TJ Mentioned under the activity description Title of the measure Financial support for developing the infrastructure for city bikes Index of the measure T.7 Category Financial instruments Beginning: 2012 Timeframe Completion: 2016 Envisaged larger changes, amendments, improvements: New measure By providing support to development of the infrastructure for public city bikes, inhabitants of Target / short urban areas will be offered an alternative mobility solution which will have a direct positive Description description impact on direct avoidance of fossil fuels consumption, reduction of environmental ecological load and overall increase of inhabitants quality of life through increased physical activity. Targeted final consumption Road vehicles passenger cars and scooters Target group Drivers of passenger cars and scooters, as well as citizens without their own means of transportation Regional application Urban / national Information on A list and description of activities aiming at the measure Financial means and sources of financing Executive body Monitoring (supervision) bodies Method of monitoring / measuring energy savings Savings expected in 2010 according to the 1 st NEEAP Savings achieved in 2010 / For the purpose of of the said measure, it is suggested to introduce 9,500 public bikes by the year 2020 in areas of largest Croatian towns. If we assume that the average daily mileage of a public city bike is 5.5 km, it is to be expected that their integration into urban mobility, as one of solutions, will help to avoid approximately 2 million km on the average, which inhabitants would probably cover in their cars in case of non-existence of the bikes. By shifting the aforementioned 2 million km to the bikes, urban areas could cumulatively avoid almost 661 t of fuel by 2016 and 1,148 t of fuel by Towns and municipalities, EPEEF, commercial banks LRGU in cooperation with Centre MMTI, ME, MENP It is necessary to monitor the number of public bikes; the effect will be estimated on the basis thereof in the manner mentioned in the activity description. / Energy savings Energy savings expected in 2016 Expected impact on energy savings for 2020 (where possible) Assumptions Overlapping, multiplication effect, synergy 89 TJ 254 TJ / / 136

137 Title of the measure Promoting e-mobility and developing a network of filling stations for electric vehicles Index of the measure T.8 Category Financial instruments Beginning: 2011 Completion: 2016 Timeframe Envisaged larger changes, amendments, improvements: New measure Description Information on Energy savings Target / short description Targeted final consumption Target group Regional application A list and description of activities aiming at the measure Financial means and sources of financing Executive body Monitoring (supervision) bodies Method of monitoring / measuring energy savings Savings expected / With the purpose of introducing politicians, entrepreneurs, decision-makers, citizens inspired by electric vehicles and those who are about to become inspired by them to the concept of electromobility, it will be necessary to carry out the promotion of electromobility-related technologies in an adequate manner. Quality promotion is essential in order to clarify the term e-mobility, its advantages, shortcomings, possibilities and challenges. Developing a network of filling stations for electric vehicles is an infrastructural measure which will provide a precondition for the development of e-mobility in urban areas. Road vehicles Cars, scooters, light delivery vehicles National For the purpose of promotion of the e-mobility concept it will be necessary to work out a national campaign in order to conduct structural informing of the scientific, expert and wider public on newest trends and good practice examples from the world and from the region. The ME, MENP and MMTI should jointly initiate the development of the campaign by the end of 2011 and charge the EIHP and HEP with its. The EPEEF needs to ensure funds for the of the campaign. Its is to start in 2012, encompassing numerous activities such as: advertising, billboards by the side of roads, sending customers information along with bills, sending a newsletter on customers addresses, via social networks, radio advertising by way of broadcasting programmes, web banners, holding conferences where e-mobility would be presented, reduction of CO2, development of an e- mobility web site, holding of workshops at universities and schools, first 100 buyers of e- mobility vehicles will have 100 free fillings on public filling stations, free parking for electric cars in the town centre, etc. The promotional campaign and financial support (measure T.6 ) are to be followed by the development of the filling station infrastructure. This infrastructural measure will not have a direct impact on the reduction of fuel consumption in transport, but the infrastructural development is a necessary precondition for development of the electric vehicles market in Croatia. Global and European experiences from the markets which have got ahead in the e-mobility development process in urban areas indicate that in order to ensure an equal level of services related to driving comfort it is necessary to provide public filling stations per electric vehicle. For defining extensiveness of the measure, a factor of 0.5 public filling stations per electric vehicle has been used for the analysis. In such circumstances, the measure suggests support to development of 7,675 filling stations by ME and MMTI are to initiate drawing up of a programme of filling station network development by the end of 2011 and the realisation of the programme should commence in In this regard, a strong coordination with LRSGUs is to be established. Considering the fact that development of a regulatory framework is important and that European experiences are such that the regulatory framework must be clearly defined so as to ensure successful development of the filling stations network, this measure implies preparation of a regulatory framework for the infrastructure needed for e-vehicles. EPEEF, LRSGUs (detailed funds will be estimated when preparing the campaign and development programme), EU funds, possible co-financing by way of modifying tariff systems for electricity distribution and/or special fees/prices of suppliers (HERA). EIHP and HEP preparation and of the campaign and drawing up of the filling station network development programme; of the programme lies within the competence of LRSGUs in cooperation with Centre; preparation of the regulatory framework for the infrastructure of e-vehicles is a responsibility of the ME, MMTI, MCPP, HERA, HEP-ODS. MTTI, ME, MENP, HERA, EPEEF,LRSGU Effects of the measure will be monitored by means of questionnaires and public surveys on e- mobility. It is necessary to carry out such researches after each block of promotional activities within the framework of the campaign. Network development will not bring direct energy savings, but it is a necessary precondition for increasing the number of electric cars. 137

138 in 2010 according to the 1 st NEEAP Savings achieved in 2010 / Energy savings expected in 2016 Expected impact on energy savings for 2020 (where possible) Assumptions Overlapping, multiplication effect, synergy May not be estimated May not be estimated / / Title of the measure Modification of calculating tax reliefs based on travel expenses Index of the measure T.9 Category Financial instruments Beginning: 2012 Timeframe Completion: 2016 Envisaged larger changes, amendments, improvements: New measure The existing practice of calculating tax reliefs based on travel expenses does not represent an Description Target / short description additional stimulus for employees to use city public transport more intensively. Thus, a modification of the practice of calculating tax reliefs based on travel expenses could additionally stimulate inhabitants to use city public means of transport. Targeted final consumption Road vehicles Target group Employees who travel to work by car Regional application National Information on Energy savings A list and description of activities aiming at the measure Financial means and sources of financing Executive body Monitoring (supervision) bodies Method of monitoring / measuring energy savings Savings expected in 2010 according to the 1 st NEEAP Savings achieved in 2010 / MF in cooperation with ME should elaborate a proposal of modification of the practice of calculating tax reliefs based on travel expenses which will stimulate public transport use. Application of the said modification should commence in / MF FM, ME Effects of the measure may be estimated by means of the TD indicator P.12. / Energy savings expected in 2016 Expected impact on energy savings for 2020 (where possible) Assumptions Depending on the decision on the tax relief amount. Depending on the decision on the tax relief amount. / 138

139 Overlapping, multiplication effect, synergy / Title of the measure Promotion of sustainable city transport systems Index of the measure T.10 Category Information and mandatory information measures Beginning: 2011 Timeframe Completion: 2016 Envisaged larger changes, amendments, improvements: New measure Description Information on Energy savings Target / short description Targeted final consumption Target group Regional application A list and description of activities aiming at the measure Financial means and sources of financing Executive body Monitoring (supervision) bodies Method of monitoring / measuring energy savings Traffic jams are an increasing problem in towns and they have a significant impact on the unnecessarily increased fuel consumption. Thus, it is necessary to promote sustainable development of city transport systems through: optimisation of city logistics of freight transport prescribing prohibition of delivery in city centres in the period from 6.00 am to 6.00 pm intelligent management of public parking spaces promotion of e-working or tele-working Road vehicles Drivers of passenger cars and freight vehicles in towns Urban / national Optimisation of city logistics of freight transport Optimisation of city logistics of freight transport is a particular challenge considering specific features of urban terrain configuration, local market needs and suppliers habits. In order to actively contribute to energy efficiency improvement in the process of urban logistics of freight transport, the measure will primarily define guidelines for increasing efficiency of freight transport on the basis of which conducting of trainings for operators of delivery fleet vehicles will commence. The ME in cooperation with the MMTI is to initiate drawing up of the guidelines in 2011 and the training is to commence in 2012 in cooperation with LRSGUs. Intelligent management of public parking spaces A problem with today s philosophy of public parking spaces management lies in the fact that not a single town has so far introduced differentiation in the tariff definition on the basis of which parking would be charged depending on the type of the vehicle's drive system or fuel. In order to facilitate gradual transfer to utilisation of sustainable technologies in transport in urban areas, it will be necessary, by differentiating access to public parking spaces, to give a chance to solutions which are acceptable in terms of energy and the environment to get established on the market. For the needs of of this measure, it will be necessary to define guidelines on the basis of which decisions could be passed on exemptions or discounts for the use of public parking services for environmentally friendlier vehicles. The ME in cooperation with the MMTI is to initiate drawing up of the guidelines in 2011 and their application is to commence in 2012 in cooperation with LRSGUs. Promotion of e-working or tele-working Most of the transport load is caused by daily migrations of people moving from their place of residence to work and back to their place of residence. On the other hand, jobs are nowadays based on a possibility of long distance performance of most operational activities, so the inevitable need for physical going to work is less and less expressed. One of the measures for improving energy efficiency is by all means the promotion of e- working and so called tele-working. The ME and MMTI in cooperation with LRSGUs should initiate drawing up of the promotional programme in 2011 and its is to commence in LRSGUs budgets, EPEEF (detailed assessment of the required co-financing will be drawn up by way of guidelines), EU funds EIHP in cooperation with LRSGUs in cooperation with Centre; regional energy agencies and institutes ME, MMTI, MI Effects of this measure will be recorded by means of TD indicators according to EC recommendations for road transport (indicators P.8 and P.9). 139

140 Savings expected in 2010 according to the / 1 st NEEAP Savings achieved in / 2010 Energy savings expected Depending on the scope of promotional activities in 2016 Expected impact on energy savings for 2020 Depending on the scope of promotional activities (where possible) Assumptions / Overlapping, multiplication effect, / synergy Title of the measure Advanced regulation of traffic sections equipped with intelligent traffic lights Index of the measure T.11 Category Infrastructural Beginning: 2011 Completion: 2016 Timeframe Envisaged larger changes, amendments, improvements: New measure Intelligent traffic lights fitted with an autonomous power supply system using renewable sources (sun, wind) will contribute to reduction of primary energy consumption and of emissions of carbon dioxide and other harmful gases. On the other hand, installation of a visual indicator of duration of the red light phase will contribute to the raising of drivers Target / short awareness on possibilities of making decisions to turn off the engine while waiting in a line in description front of an intersection. Support to integration of such traffic lights at intersections will Description contribute to systematic reduction of fuel consumption in transport on the basis of provision of adequate and timely information to a driver on the traffic flow at an intersection, on the grounds of which the driver will be able to make a decision on shifting to a start-stop regime when using a motor vehicle. Targeted final Road vehicles consumption LRSGUs towns Target group Drivers of road vehicles Regional National application Information on Energy savings A list and description of activities aiming at the measure Financial means and sources of financing Executive body Monitoring (supervision) bodies Method of monitoring / measuring energy savings Savings expected in 2010 according to the 1 st NEEAP Savings achieved in 2010 / The total daily consumption of all the vehicles in Croatia, due to their waiting at traffic lights, is estimated at about 160,000 litres. In the Republic of Croatia, approximately 1,000 traffic intersections are currently equipped with traffic lights. On the average, 160 litres of fuel are spent per intersection due to unnecessary waiting of vehicles at traffic lights. The measure proposes gradual replacing of the existing traffic lights installed at 200 intersections by the year In such circumstances, the measure might decrease fuel consumption at intersections by up to 1,580 t by 2016 and up to 9,320 t by 2020.The MCPP and MMTI are to initiate drawing up of a replacement programme in 2011 and its is to start in 2012, in cooperation with LRSGUs. LRSGUs, EPEEF (detailed estimation will be made as part of the programme), EU funds EIHP in cooperation with LRSGUs and Centre ME, MCPP, MMTI To evaluate success of the measure, it is necessary to monitor the number of replaced traffic lights. Effects in terms of energy savings are estimated by means of TD indicators for road transport according to EC recommendations (indicators P.8 and P.9). / 140

141 Energy savings expected in 2016 Expected impact on energy savings for 2020 (where possible) Assumptions Overlapping, multiplication effect, synergy 156 TJ 1,082 TJ / / Title of the measure National campaign One day a month without cars Index of the measure T.12 Category Information and mandatory information measures Beginning: 2011 Timeframe Completion: 2016 Envisaged larger changes, amendments, improvements: New measure Description Information on Target / short description Targeted final consumption Target group Regional application A list and description of activities aiming at the measure Financial means and sources of financing Executive body Monitoring (supervision) bodies Method of monitoring / measuring energy savings Savings expected in 2010 according to the 1 st NEEAP Savings achieved in 2010 / The campaign One day a month without cars is stimulating drivers to leave their car at home one day a month and in return they get a cheaper ticket for public transport, discount for cultural and sports events, discount in shops or shopping malls. Road vehicles All users of passenger cars National It may be assumed that an average vehicle in a daily city cycle spends from 2.5 to 4.0 litres of fuel. If 1% of the total number of registered cars in the Republic of Croatia or approximately 15,000 vehicles participated in the action, savings would amount to approximately 48,750 litres of fuel on a monthly basis, i.e. approximately 585,000 litres per year. It is necessary to prepare the campaign and start with its in 2011, and it should be initiated by the ME and MMTI in cooperation with LRSGUs. LRSGU and EPEEF EIHP conducting and monitoring the campaign ME, MMTI To evaluate the savings it will be necessary to set up a methodology based on the number of participants in the campaign. / Energy savings Energy savings expected in 2016 Expected impact on energy savings for 2020 (where possible) Assumptions Overlapping, multiplication effect, synergy 130 TJ 230 TJ / 141

142 Measures for energy companies (distribution system operators and suppliers) Obligations of distribution system operators and suppliers in line with the ESD requirements are prescribed in the Act on Efficient Energy Use in Final Consumption (Official Gazette 152/08) and they refer to the offering of energy services, provision of individual metering and issuance of informative bills to customers. Chapter 3.7 describes in detail accomplishments of this legal obligation and gives recommendations for future activities; a short overview is presented in Table 30. Distributors/suppliers in Croatia are not obliged to achieve energy savings on the part of their customers. However, without their more intensive engagement, especially in households, achievment of the set targets regarding energy savings will be difficult. Therefore, the main task in the next period is to consider a possibility of establishing a white certificate scheme and to create legal, regulatory and institutional preconditions for setting up a fully functional scheme in the period of the following, third NEEAP, based on quantified obligations of distributors/suppliers to achieve savings. Table 30 Overview of individual measures for energy companies No E.1 E.2 Title of the energy saving measure Individual metering and informative billing Preparation for establishing white certificate scheme Targeted final consumption Consumption of electricity, thermal energy and natural gas in households / Duration TOTAL Energy savings achieved in 2010 [PJ/ GWh] PJ [87] (2.80 GWh) Share in the sector target [1] for 2010 [%] Energy savings expected in 2016 [PJ/ GWh] Share in the sector target [86] for 2016 [%] 0.48 N/A N/A N/A N/A N/A N/A PJ (2.80 GWh) 0.48 N/A N/A Status in relation to the 1 st NEEAP The measure was revised upon the introduction of financial support. New measure Additional remarks Effects of this measure are monitored and attributed to the household sector. The measure implies not only introduction of an obligation, but also a detailed elaboration and possibilities to define all characteristics of the future scheme. 86 Target for the household sector set in the 1 st NEEAP amounts to 6.72 PJ and for the year 2010 it amounts to 2.24 PJ. 87 Savings are listed for only one project co-financed by the EPEEF; savings resulting from other projects are impossible to determine due to the lack of data, but considering the suppliers reported activities they are significantly higher. The effects are thus estimated by means of TD indicators for the household sector. 142

143 Title of the measure Individual metering and informative billing Index of the measure E.1 Category Information and mandatory information measures; Financial instruments Beginning: 2008 Completion: 2016 Envisaged larger changes, amendments, improvements: Timeframe It is envisaged to open a special co-financing programme in the EPEEF for projects of introducing heat manifolds and regulation valves, focused on operators/suppliers and/or ESCOs. Transparent and understandable energy bills (for electricity, thermal energy and natural gas) and individual metering of consumption are a distribution system operators and suppliers obligation. This will raise customers consciousness of the manner in which they Target / short themselves spend the energy. Bills should contain graphic comparisons of consumption in Description description the billing period for the current year and the corresponding period of the previous year. Bills should be based on the real consumption. Bills should contain information on where advice regarding efficient energy consumption may be obtained and introduction of a free telephone line is also suggested. Targeted final Consumption of electricity, thermal energy and natural gas in households consumption Distribution system operators and suppliers of electricity, thermal energy and natural gas; Target group building managers, flat owners in buildings connected to a centralised heating system. Regional National application Implemented activities and achieved results: 1. Offer of energy services Obligations of distribution system operators and suppliers in line with the ESD requirements are prescribed in the Act on Efficient Energy Use in Final Consumption (Official Gazette 152/08). Information on A list and description of activities aiming at the measure o The legal obligation has contributed to improvement of operators /suppliers relationship with customers and to improvement of the customers level of information on possibilities to reduce energy consumption (offering advice by way of operators /suppliers web sites, free customer service telephones, brochures, directing to energy service providers, etc.). 2. Informative billing This obligation is stipulated not only by the aforementioned Act, but also in the general terms and conditions for the supply of electricity, natural gas and thermal energy, which define the obligation of individual metering and calculation periods. o Most distributors/suppliers, due to limitations of calculation applications, still do not provide users with complete informative billing, but necessary activities for improvement of this situation have been initiated in line with legal obligations. 3. Individual metering (in thermal energy supply) Most thermal energy suppliers have, in line with legal obligations, enabled their users to install heat manifolds (mostly in combination with installation of thermostatic radiator valves). These activities result in savings reaching up to 30% of the original thermal energy consumption. The costs are covered by users themselves; in a limited number of cases, cofinancing was realised through the EFEEP or LRSGU-s EFEEP co-financed only one such project in the previous period, during which the achieved energy savings amounted to TJ (2.80 GWh). Pursuant to the Act on the Production, Distribution and Supply of Thermal Energy (Official Gazette 42/05 and 76/07), all the buildings constructed after the entry into force of the Act which are connected to CHS must have individual metering of energy consumption for each autonomous usable unit of the building in question. Future activities: 1. In 2011, the EFEEP in cooperation with commercial banks is to set up a special programme of co-financing installation of heat manifolds and thermostatic radiator valves in buildings connected to CHS. a. Co-financing is achieved by way of subsidizing costs of the equipment procured by operators/suppliers. b. EESCOs conducting such projects may also be provided co-financing. Operators/suppliers may announce a tender for carrying out such projects by ESCOs. c. The programme should be activated in 2012 and it is to be preceded by a 143

144 Energy savings Financial means and sources of financing Executive body Monitoring (supervision) bodies Method of monitoring / measuring energy savings Savings expected in 2010 according to the 1 st NEEAP Savings achieved in 2010 Energy savings expected in 2016 Expected impact on energy savings for 2020 Assumptions Overlapping, multiplication effect, synergy strong promotional campaign aiming at operators/suppliers, managers of residential buildings connected to CHS, and citizens. 2. The ME must require from operators/suppliers to submit, on an annual basis, data on achievements related to energy efficiency improvement and compliance with all legal obligations laid out in the Act on Efficient Energy Use in Final Consumption; if significant deviations are detected, it will be necessary to initiate amendments to other regulations, e.g. general rules for the supply of electricity, natural gas and thermal energy, particularly in terms of calculation periods. 3. The ME should initiate a procedure for amending the Act on the Production, Distribution and Supply of Thermal Energy, or adoption of a new regulation which will obligate thermal energy suppliers to provide individual consumption metering to their customers, within a certain deadline, where technically feasible. This process should be initiated in 2011 and the obligation is to enter into force by the end of 2012, whereas HERA needs to participate in the procedure of adjusting the regulations. Total funds used by the end of 2010: EPEEF: HRK 1,700,000 (EUR 230,000) Planned funds by the end of 2013: EPEEF: HRK 10,000,000 (EUR 1,350,000) Commercial banks EU funds Distribution system operators, suppliers in cooperation with Centre, EFEEP (financial support for installation of individual metering devices for thermal energy) ME, HERA Monitoring of the effects of this measure is achieved on the grounds of suppliers data on energy consumption before and after the of the measure, with normalisation on the basis of weather conditions (degree day of heating). Distributors/suppliers are obliged to submit these data to the HERA and EFEEP if they were provided with co-financing. In addition to this, effects of this measure may be estimated by means of TD indicators according to European Commission recommendations (indicators P1 and P3). Not estimated TJ (2 GWh) 610 TJ ( GWh) 1,220 TJ ( GWh) The scope of former activities related to the introduction of individual metering of thermal energy consumption from CHS varies from supplier to supplier some of them achieved 100% coverage with individual metering, whereas with others the percentage varies from 25 to 75%. Potentials for further installation of individual metering systems still exist and are contained in suppliers plans. Savings in 2010 were calculated on the grounds of available data but the actual figures were certainly higher. Future estimations are based on the target that all the existing thermal energy consumers should have individual metering devices installed by the end of This measure primarily has effects in the household sector, so the effects in terms of energy savings will be presented under that sector. 144

145 Title of the measure Preparation for establishing white certificate scheme Index of the measure E.2 Category Mechanisms for achieving energy savings Beginning: 2011 End: 2013 (commencement of functioning of the scheme is envisaged for 2014) Timeframe Envisaged larger changes, amendments, improvements: This is a new measure which will analyse in detail the setting up of the white certificate scheme and propose all necessary activities for the establishment of such a system. The white certificate scheme is based on energy distributors /suppliers obligation to achieve certain energy savings on the part of their end users (customers) on an annual basis. Fulfilment of this obligation will be proved by a white certificate which may be marketable but does not necessarily need to be. The target of this measure is to draw up detailed regulatory foundations for setting up such a scheme. The foundations are to Target / short Description answer the questions such as: to whom will the obligation be imposed, what should the description obligation cover, who are possible participants in the scheme, what are penalties for not meeting the objectives, what measures are acceptable for meeting the objectives, how to measure and verify achieved savings, which body will be in charge of the monitoring. In addition to this, all necessary prerequisites (legal, regulatory, institutional) for the future establishment of the scheme are to be defined. Targeted final Consumption of electricity, thermal energy and natural gas in all final consumption sectors consumption Target group Distribution system operators and suppliers of electricity, thermal energy and natural gas Regional National application Information on Energy savings A list and description of activities aiming at the measure Financial means and sources of financing Executive body Monitoring (supervision) bodies Method of monitoring / measuring energy savings Savings expected in 2010 according to the 1 st NEEAP Savings achieved in 2010 Energy savings expected in 2016 Expected impact on energy savings for 2020 Assumptions Overlapping, multiplication effect, synergy Future activities: 1. The ME has envisaged this activity in its plan of activities and budget for 2012 and it should draw up a detailed project task by the end of The project of drawing up an extensive and comprehensive subject matter study will commence in the first quarter of The study is to be drawn up by the end of In 2013, the ME and other competent institutions will implement recommendations contained in the study in the form of required legal, regulatory and institutional activities necessary in order to establish a completely functional scheme. The white certificate scheme should become functional early in It should be pointed out that the ME outlined this activity as part of the proposed IPA project whose financing has not been approved yet. It is necessary to intensify efforts and to try to realise this support for building of administrative capacities within the IPA programme. Planned funds by the end of 2013: ME: 2 x HRK 1,000,000 (2 x EUR 135,000) (in two budget years) ME ME Not applicable / / Not applicable Not applicable / / 145

146 Households Services - public Services - commercial Industry Transport Energy sector Second National Energy Efficiency Action Plan of the Republic of Croatia until the end of Horizontal measures Several measures in both the 1 st and 2 nd NEEAP will achieve impacts in multiple sectors. Several such crosssectoral measures have been assigned to individual sectors of direct consumption as they are expected to give their greatest impact in that sector. These will not be described again in this section, however, for the sake of comprehensiveness they are listed in Table 31. The most important cross-sectoral and horizontal measures are briefly described in this section. However, no tabular overview and assessment of their achieved savings is given for, with the exception of the EPEEF, this would be impossible to estimate. Table 31 Horizontal and cross-sectoral measures and their by sector Measure no. Name of measure B.1 Building codes and enforcement X X X B.2 Energy audits of heating and air-conditioning systems X X X B.3 Energy certification of buildings X X X R.2 Energy labelling of household appliances X X X X E.1 Individual metering and informative billing X X X X * I.5 CO 2 emissions fee for large polluters X X X X H.1 Energy audit programmes (energy audits conducted and to be conducted as a part X X X of measures B.2, B.3, P.1, P.2, C.1, I.3, and co-financed by EPEEF (measure H.4) H.2 Loan programme for EE and RES projects X X X X H.3 Feed-in tariffs for RES and high-efficiency cogeneration X X X X H.4 EPEEF financial support for EE, RES and clean transport X X X X X X H.5 Energy efficiency in education, science and research X X X X X X H.6 Advanced energy network X X X X X X H.7 Improvement of legislative-regulatory framework for energy efficiency policy and monitoring X X X X X X *Measure E.1 implemented by companies from the energy sector (suppliers), but have impacts on other sectors, primarily the household sector. H.2 Loan programmes for EE and RES programmes The Croatian Bank for Reconstruction and Development (HBOR) currently offers loans for the financing of environmental protection EE and RES projects. Loans may be approved by HBOR directly or via commercial banks. The interest rate is 4% for investments in areas of special state care and on the islands, and for small and medium enterprises, while the interest rate for other investments is 6%. In cooperation with the commercial banks and EPEEF, it is possible to approve subsidies of interest rates, reducing those rates by 2%. It is expected that investors will take advantage of this opportunity for large and capital-intensive energy efficiency projects. HBOR finances up to 75% of the budget value of the project before VAT, while applications for less than HRK 100,000 are generally not considered. The loan payment period is a maximum of 12 years, including a grace period of up to two years. The loan programme was launched in 2005 in cooperation with KfW and EIB, and to date has financed seven energy efficiency projects in the total of EUR 3,762,048. The characteristics of the projects are shown in Table 32. Furthermore, HBOR offers bank guarantees for energy efficiency projects in cooperation with three commercial banks. The largest amount of the bank guarantee is up to 50% of the requested loan capital, not exceeding the kuna equivalent of USD 300,000. The validity period for bank guarantees is 10 years and 60 days from the date of issue. The types of investments for which bank guarantees are issued are new investments aimed at improving the efficiency of energy use in buildings, and in heat sources, local heating systems and heating networks where at least 50% of the energy is used for maintaining room temperature and heating water in buildings, though industrial projects and Greenfield investments are also possible if they apply an integrate 146

147 construction concept with reduced energy consumption and efficient technology/systems, provided that it is possible to establish the foundation for calculating the energy savings. Therefore, this is a measure that directly supports the application of the ESD and EPBD, and in particular promotes nearly zero-energy buildings. To date, bank guarantees have been issued for two projects in the total amount of approximately USD 900,000, and a third is in the process of issuance in the amount of approx. USD 82,000. It is worthwhile noting that this project was initially financed by the IBRD, while now the necessary funds for the bank guarantees are secured by the EPEEF. The programme of issuing bank guarantees will be active until 31 March 2012, when HBOR will assess whether there is a need for its continuation, based on the market demand of guarantees. H.3 Feed-in tariffs for RES and high -efficiency cogeneration The Tariff system for the production of electrical energy from RES and cogeneration (Official Gazette 33/07) and the Regulation on fees for the promotion of the production of electrical energy from RES and cogeneration (Official Gazette 33/07) define the mechanisms for the collection and distribution of funds to support producers of electrical energy from these sources. The Regulation on the minimum share of electrical energy from RES and cogeneration whose production is promoted (Official Gazette 33/07, 08/11) establishes the national targets for increasing the share of RES and cogeneration in the total consumption of electrical energy that suppliers must secure and offer to customers by For cogeneration, the target is 4% of electrical energy whose production is promoted in the total final electrical energy consumption. The current supported system consisted of only three cogeneration plants, with a total installed strength of MWe and an annual production of less than 500 MWh, which is negligible in the total electrical energy consumption. An additional five cogeneration plants with a total installed strength of MWe are currently in the permitting procedure. In the forthcoming period, it is necessary to increase the promotion of cogeneration production through the adoption of regulations for the promotion of the production of heat energy from RES and cogeneration. H.4 EPEEF Financial support for EE, RES and clean traffic The Environmental Protection and Energy Efficiency Fund (hereinafter: Fund) was established pursuant to the Statute (Official Gazette 193/03, 73/04, 116/08 and 109/09) and the Fund Act (Official Gazette 107/03) for the purpose of financing the preparation, and development of programmes and projects and similar activities in the area of preservation, sustainable use, protection and improvement of the environment and in the field of energy efficiency and the use of renewable energy sources, and is an out-of-budget legal person with public authority. Following from this, pursuant to the Act on Energy End-Use Efficiency (Official Gazette 152/08) and the Amendment to the Fund Statute (Official Gazette 101/09), the Fund expanded its scope to include the promotion of rational energy management and energy end-use efficiency. The EPEEF represents the main financial support for energy efficiency projects and, as such, is the most important financial instrument in the of the ESD and EPBD in Croatia. According to the Fund's work programme, the classification of energy efficiency programmes and projects is as follows: 1. Implementation of national energy programmes 1.1. Promoting energy efficiency 1.2. Implementing energy audits and demonstrational activities 2. Promoting the use of renewable energy sources 3. Promoting sustainable construction 4. Promoting cleaner transport 5. Promoting educational, research and development studies 6. Other energy efficiency projects and programmes The Fund allocates funds for financial assistance, interest-free loans, subsidies and donations to local (regional) governments, companies and other legal persons. As a rule, the Fund co-finances 40% of the acceptable costs of the total investment project, and the user secures the remaining funds in the amount of 60% of the 147

148 acceptable costs. For allocated interest rate subsidies, the Fund subsidizes interest rates for commercial loans up to 2% on approved loans in line with the contracted interest rate maturities from the loan contract whose interest rates are being subsidized. The acceptable costs pertain to investments in material and immaterial assets that are necessary for execution of the project, and are directed at executing activities to promote energy efficiency and the use of renewable energy sources, i.e. investments in construction, plants and equipment with the intent of reducing or eliminating pollution, investments for the adaptation of production methods for the purpose of energy efficiency and the use of renewable energy sources. Since its establishment, the EPEEF has co-financed more than 1200 energy efficiency projects. Of these, 886 projects are considered projects that meet the targets of the NEEAP. A total of HRK 207,887, has been financed for these projects. The assessment of energy savings was possible for 812 projects, for which financing in the amount of HRK 179,006, has been provided. The total achieved savings and the achieved energy savings from project co-financed by the EPEEF amounted to 1.31 PJ or 363/97 GWh in 2010, representing about 20% of the national target for 2010 or 6.63% of the national target in The achievements are outlined in Table 33. It is worth noting that the effects of these projects are also shown under the individual sectors of energy efficiency measures, where the method of savings calculations is described in detail. Savings were primarily assessed using the recommended EC methods for the BU savings calculation using the national BU methods, and where data were available, based on the actual differences in consumption prior to and following the of the energy efficiency project. A detailed description of the methodology is provided in the document Assessment of energy savings using the bottom-up method. The greatest energy savings were achieved in industry, i.e. 85% of all savings from the assessed projects, followed by public services with about 7.5% and transport with about 6.5%, while savings in households and commercial services are virtually negligible. Meanwhile, transport has receive the most financing, i.e. about 40%, followed by the public sector with about 30% and industry with about 20%. An analysis of the achieved energy savings and invested funds indicates that transport and sustainable construction projects have the highest investment costs per saved kwh, while energy efficiency projects in industry have by far the lowest costs per saved kwh of energy. In terms of cost efficiency, projects to install heat splitters in households hooked-up to CHS followed. The significance of the EPEEF as a secure source of financing for projects and energy efficiency projects is exceptionally high. It is key that the EPEEF continue to align its work programme and financial plans for the forthcoming three-year period with the NEEAP, and it is necessary to ensure support for all envisaged activities. Thereby EPEEF must collaborate with Centre as al and coordinational body. H.5 EPEEF Energy efficiency in education, science and research 1. The NEEAP has envisaged that the EPEEF will work together with the MSES to develop the programme to include EE and RAS into the curriculum at all levels of education. In the preceding period, there has been no systematic approach to this issue. Certain progress has been achieved through the national info campaign (described in detail in Section 3.5), though this has not ensured the systematic integration of these issues into the educational system. It is worthwhile emphasizing that the importance of formal and informal education on energy, environmental protection and climate change is stressed in the Sustainable Development Strategy of the Republic of Croatia. Coordination and cooperation is necessary between the MCPP, ME, MENP and MSES to develop the appropriate programme so as to achieve this strategic goal. The EPEEF is working with civil society organisations and co-financing their activities, which has significantly contributed to the development of educational materials aiming to promote energy efficiency and combat climate change. The EPEEF financially supports the drafting of feasibility studies, demonstrational activities, 148

149 conferences and expert meetings, books, brochures and development and research projects. It is critical that these good practices continue in the forthcoming period. With regard to science and research, the line ministries are obliged to initiate the drafting of a Strategic Plan for the development and application of technology for energy efficiency and renewable energy sources, which will identify the technology that is suitable for development of the domestic industry, analyse the need for development, research and the work force, the possibility of achieving revenues and possible requirements for stimulation and breaks. Separate studies will be drafted for each technological area that will be integrated into the overall plan. H.6 Advanced energy network The project to develop a national sensor network as an expanded version of an advance energy network began with the establishment of a working group headed up by the ME. The working group will include a wide circle of participants that will work together to develop and apply the concept of a sensor network. The objective of the working group is to define the macroeconomic and microeconomic foundation for determining the important parameters of Automated Meter Reading (AMR) in central supply networks of the Republic of Croatia, and concepts. Recognising the complexity of the task, it is necessary for the working group to establish the national (structural and functional) requirements for realisation of the project, to define the possible barriers that are under the competence of other authorities and to remove them. The results of the preliminary study of the working group should offer all appropriate companies in the national supply economy the foundation for the automatisation of metering, and to develop a model and determine its economic parameters for the sensory and technical bases of AMR in the national supply networks of the Republic of Croatia. The project National sensor networks implies the integration of activities of manufacturers, transmission and distribution network operators, technical centres for management and metering, suppliers and consumers through an exchange of information in real-time. The national sensor network is defined as a network that: enables consumers to interact with the consumption management system and to adapt their own consumptions in line with the network possibilities; to use information and communications technology in the process of optimising the use of capital resources and equipment, with the minimization of plant costs and maintenance costs; connect various possibilities for energy production, such as central, distributed, variable and mobile; is able to correct errors detected during operations by taking automatic corrective measures. In that sense, this project fully complies with the requirements of the Third Directive 2009/72/EC on the electrical energy market, which prescribes that Member States shall ensure the introduction of a smart metering system that allows for the active participation of consumers on the electrical energy supply market. With the development of a national sensor network for metering (water, natural gas, electrical energy, heat energy), the collection and systematisation of data for the purpose of optimising tasks, detecting errors and acting preventatively, gives rise to a central database for the effective coordination and supervision of the entire process and a reliable source of information for all participants on the market. Technically speaking, the national sensor network represents a completely new communications network that will very reliably and cost-efficiently transmit technical and non-technical data of the national economy via extremely energy efficient radio links over multi-year time periods. The national sensor network should be built as a system under state control that will offer its services to citizens and companies for a defined fee. The advanced metering infrastructure should allow for the achievement of the EU targets through the integration of renewable sources in the network, especially micro-generation and improved energy efficiency. In order to improve energy efficiency, it is necessary for consumers to take an active role so as to manage their 149

150 consumption, and a prerequisite for this is timely access to information on the manner of consumptions and savings tips. In this way, the consumer is offered a serious of different services for planning consumption, managing consumption, and saving on energy bills, etc. It is in this sense that the development of a national sensor network offers the basis for establishment of a national energy metering system and the creation of the prerequisites for organisation of the market, consumer protection and the development of electronic trade and the information society. The first step towards the application of advanced, smart metering systems is the creation of a favourable legislative framework. To that effect, in the forthcoming period it is necessary to commence these activities, and to focus special attention on: a cost-benefit analysis concerning the of smart metering, managing meter data and the influence on the process of market opening, drafting of the technical requirements for meters and the necessary infrastructure, defining the policies of regulatory authorities and drafting the necessary legislative amendments. It is also necessary to launch pilot-projects to test and prove the efficacy of new technology. Due to the complexity of such a project, it is necessary to adopt a detailed action plan for its. Table 32 Presentation of the projects realised within the HBOR loan programme No Name of project Increasing the energy efficiency of a steam boiler Renovation of a steam boiler Increasing the energy efficiency of a steam boiler Increasing the energy efficiency of a paper machine Sector Industry Industry Industry Industry Subsector Production of cellulose Production of cellulose Production of cellulose Production of cellulose Company size Large enterprise Large enterprise Large enterprise Large enterprise Loan purpose Investments in equipment Investments in equipment Investments in equipment Investments in equipment Effect Increasing the degree of activity of a steam boiler by about 3% Savings in fuel consumption, possibility of operating the energy plan in more favourable conditions, reduced maintenance costs, reduction of losses in the production process, reduced CO 2 emissions Savings in fuel consumption, reduced maintenance cost, reduced direct losses in the production process, reduced CO 2 emissions Reduced specific energy consumption per tonne of produced paper; better quality of produced paper Description Installation of a new pressure boiler system, installation of new heat insulation on the walls, ceiling and floor of the boiler room, parameterisation and optimisation of the boiler and combustion process Design, procurement of materials, development of pressure sections, disassembly of old and installation of new heat insulation, parameterisation of the pilot, replacement of the natural gas and boiler structures, testing and parameterisation of the combustion system regulation Renovation of the boiler management system Renovation of the hall ventilation and heating system 5. Purchase of Industry Metal Large Investments Reduced Central frequent oven 150

151 6. 7. equipment and devices aimed at environmental protection and introducing energy efficiency Installation of solar collectors and the use of liquefied petroleum gas for the production of energy Use of geothermal waters for heating a greenhouse Public Institute Industry industry production of cast products Special hospital for medical rehabilitation Production of food enterprise / Small enterprise in equipment Investments in equipment Exploratory works and investments in equipment consumption of energy sources (coke and natural gas), reduced water consumption by about 75%, reduced consumption of the nodulator for obtaining a nodular cast by 20% Reduced energy consumption by 35%, reduced CO 2 emissions by approx. 300 tonnes per year Reduced consumption of natural gas (electric) with two pots, with batching equipment and a vacuum system with filter, heating boilers and reconstruction of the heating system, reconstruction of the test stations for more efficient use of water in product testing, casting pots for nodulation technology Highly efficient boilers on liquefied petroleum gas, solar heat systems Drilling a drill hole and use of geothermal waters to heat a greenhouse for the hydroponic growing of tomatoes 151

152 Table 33 Overview of projects and energy savings achieved with EPEEF co-financing per final energy consumption sector to the end of 2010 Savings achieved by final energy consumption sector to the end of 2010 [TJ] Total energy savings Number of projects Total allocated funds No. Category of Fund project Households Services - public Services - commercial Industry Transport [TJ] [HRK] 1. Implementation of the national energy programmes and energy audits ,605, Public lighting ,543, LPG+solar ,516, Energy audits ,299, Heat splitters (individual consumption metering) 1,700, Other projects ,545, Promoting the use of EE ,970, Solar heating systems for natural persons (via the counties) ,058, Solar heating systems other ,341, Heat pumps , Other EE projects 5,549, Promoting sustainable construction ,955, Promoting cleaner transport ,822, Euro 5 programme ,040, Electric vehicles , Promoting eco-driving , Promoting educational, research and development studies and programmes 49 4,077, Conferences and expert meetings Feasibility studies Research and development projects Books, brochures, etc. 4,077, Other programmes and energy efficiency projects / 42,483, Systematic Energy Management ,296, (SEM)* House in Order (HiO)* ,503, Info campaigns 9,684, Other 0.00 TOTAL ACHIEVED SAVINGS BY SECTOR TO THE END OF 2010 [TJ] * savings from SEM and HiO projects not included ,914, SHARE IN SECTORAL/NATIONAL TARGET FOR 2010 [%] 0.59% 6.92% 53.47% 4.09% 11.83% SHARE IN SECTORAL/NATIONAL TARGET FOR 2016 [%] 0.20% 2.30% 17.82% 1.36% 3.94% 152

153 H.7 Improving the legislative, regulatory and institutional frameworks for the and monitoring of the of the energy efficiency policy The Act on Energy End-Use Efficiency AEEE (Official Gazette 152/08 and 55/12) is the fundamental piece of legislation that regulates the obligations relating to energy management, particularly in the public sector and in large energy consumers. The of the AEEE is based on a series of pieces of subordinate legislation, several of which are still in the adoption procedure. The three years of of the Act have indicated its shortcomings and the need for improvement, for the purpose of facilitating the of energy efficiency policy and achievement of targets. In May 2012, the necessary amendments were made to the AEEE with the aim of eliminating a series of ambiguities and unnecessary barriers in the development of the ESCO market the provision of energy services in the sense of measures to improve energy efficiency. Furthermore, it was necessary regulate the vague division of responsibility between the Ministry of Economy, Ministry of Construction and Physical Planning, and the Environmental Protection and Energy Efficiency Fund. The vague division of responsibilities caused problems in the of the act, considering that the Fund is primarily an institution responsible for co-financing energy efficiency projects, without the capacity to act as an implementing body and with the questionable justification of the fact that the same institution should prepare projects and approve the cofinancing of energy efficiency projects. Furthermore, the obligation to deliver data on the final energy consumption for suppliers and customers has been based on the envisaged ordinance on the unified energy efficiency information system. It has been proven that such an ordinance largely overlaps with issues regulated under the Ordinance on the energy balance and that it is recommended that an improved process of collecting data be defined under that ordinance rather than developing a parallel system of data collection and analysis. The issue of regulating energy audits of buildings for the purpose of energy management under the 2008 Act envisaged a system separate from the one kept by the ministry responsible for construction for the purpose of energy certification of buildings, in such a way that the methodology of conducting energy audits of buildings, for the purpose of building certification, was defined by the ministry responsible for construction, while the methodology of energy audits of buildings, including buildings for the purpose of energy management, was defined by the ministry responsible for energy. In this case, the need for both methodologies is not justified, and also implies greater costs for persons interested in performing these services, which restricts the development of the energy audit market. On the other hand, the issue of supervision over the mandatory of inspections of heating boilers and air-conditioning systems in buildings were separated from the building as a whole, and entrusted to the ministry responsible for energy, and not the ministry responsible for construction, which oversees the building as a whole. The 2008 Act defined the activity of energy services based on the energy effect agreement, in which investments into measures to improve energy efficiency were returned from the achieved savings. Considering that such an activities does not exist in the national activities classification (NAC) scheme, providers of such energy services were required to obtain consent for the performance of this activity from the ministry responsible for energy. This resulted in the fact that only 2 3 legal persons have requested and obtained this consent in the past three-year period. With the adoption of amendments to the AEEE on 4 May 2012, all the ambiguities and unnecessary barriers have been removed, thus securing the development of the ESCO market and launching an investment cycle in the economy, which has been regulated as follows: 1. The Croatian Government will prescribe the procedures of implementing energy services in the public sector by virtue of a regulation, thereby ensuring that measures to improve energy efficiency in public sector buildings are implemented without the spending of budgetary funds. 153

154 2. The unnecessary barriers for energy service providers have been removed, and after the entry into force of these amendments, both natural and legal persons will be able to provide energy services or other measures to improve energy efficiency for the final user, pursuant to an energy performance contract. 3. The obligations of the Fund have been defined, which include the financing of measures defined in the National Action Plan and monitoring the achieved energy savings in projects that are beneficiaries of funds from the EPEEF. The EPEEF is responsible for cooperating with the line ministries in promoting energy efficiency measures. 4. The need to adopt an ordinance on a unified information system for energy efficiency has been eliminated, however, it has been clearly prescribed as to which data suppliers are required to submit to the ministry. Also, it has been established that the public sector must use the national energy management information system (EMIS) for all its buildings to enter all necessary data on energy and water consumption in buildings. The manner of assessing energy savings that are the result of the of measures to improve energy efficiency are established by an ordinance on the monitoring, measurement and verification of energy savings, to be issued by the minister. 5. A separate ordinance will define a unified methodology to conduct energy audits and the energy certification of buildings. Also, pursuant to the requirements of Directive 2010/31/EU, it will stipulate the obligation of independent controls of reports on energy audits and issued energy certificates. The competence for the issue of energy audits and energy certification will be fully under the ministry responsible for construction. 6. Considering the initiation of a programme for the energy renovation of public buildings, the Government of the Republic of Croatia will prescribed the procedures for implementing energy services in the public sector by virtue of a regulation, which will ensure that energy efficiency will be improved in the public sector without the spending of budgetary funds, while also stimulating the construction industry and energy services market. 7. Requirements for the eco-design of products will be expanded to products associated with energy, i.e. all those products that influence energy consumption in any way. This will ensure that products placed on the Croatian market will meet the requirements of eco-design, of which energy efficiency is certainly the most significant. The of the amendments to the Act and the adoption of subordinate legislation will improve the of energy efficiency policy in the Republic of Croatia, and in particular will contribute to an improvement in the quality of of energy audits and the issuing of building energy certificates, and will allow for the of the programme for energy renovation of public buildings and, ultimately, all other types of buildings. This will significantly contribute to achieving the national final energy consumption savings targets as defined in the Energy Development Strategy of the Republic of Croatia and the National Energy Efficiency Programme. Amendments to the legislation in the field of construction will be directed at setting more stringent criteria for the energy characteristics of buildings and the drafting of a national plan to increase the number of nearly zeroenergy buildings will implement other measures in the area of construction (more detail in measures B.1, B.3 and B.4). Further improvements of the legislative-regulatory framework should move towards establishment of a national plan to increase the number of nearly zero-energy buildings, the development of the energy services market and the obligation of energy companies to achieve savings in the production, transmission and distribution of energy, and among energy customers Summary overview of all energy savings As previously stated in Section 3.3.1, while assessing the achieved and projected future savings, a combined approach was taken using TD indicators (for the assessment of savings achieved in 2010), the MAED model (for the assessment of future energy savings and energy savings that result from individual measures in 2016 and 2020) and the BU method (for the assessment of achieved savings relating to individual measures, where possible). It is necessary to differentiate savings achieved from measures and total savings, which above 154

155 savings from measures also include other factors, such as market development, structural changes and economic movements, and market transformation. Considering that it is not possible to assign energy savings to all measures and that measures have a direct effect on energy savings, particularly those with an informational or promotional character, the approach was taken to show total savings. In order to obtain a feeling for the effect of the measures envisaged in the NEEAP on total achieved savings, and to assess the success of their, for each sector and, where possible, for individual measures, the savings directly related to them are shown. The results are shown in Table

156 Table 34 Summary presentation of energy savings from all individual energy efficiency measures Reference to measure Achieved energy savings from measures in 2010 [PJ] (assessment using BU methods) Expect energy savings from measures in 2016 [PJ] (assessment based on BU methods and the MAED model) Expected energy savings from measures in 2020 [PJ] (assessment based on BU methods and MAED model) Households Services Industry Transport Households Services Industry Transport Households Services Industry Transport B B.2 B.3 B R.1 R R R R P P P.3 P P C C C C C I.1 I.2 I I I I E E.2 T T T T T T.2 T T T T T

157 Reference to measure Achieved energy savings from measures in 2010 [PJ] (assessment using BU methods) Expect energy savings from measures in 2016 [PJ] (assessment based on BU methods and the MAED model) Expected energy savings from measures in 2020 [PJ] (assessment based on BU methods and MAED model) Households Services Industry Transport Households Services Industry Transport Households Services Industry Transport T.8 T.9 T.10 T T H.1* H.2 H.3 H.4** 0.08 H.5 H.6 H.7 SUM OF SAVINGS FROM MEASURES TOTAL FROM MEASURES SUM OF TOTAL SAVINGS (TD indicators) TOTAL * Measure H.1 relates to programmes of energy audits that have been conducted and will be conducted as part of measures B.2, B.3, P.1, P.2, C.1 and I.3, and are co-financed by EPEEF (measure H.4). For that reason, savings from these measures are not shown separately. **Measure H.4 relates to all projects and activities co-financed by EPEEF. As a part of those measures, only savings in the public sector are shown, as it is not possible to place them under an appropriate sectoral measure. Savings from other projects and activities co-financed by EPEEF are shown as part of individual sectoral measures. 157

158 3.8 Public sector Exemplary role of the public sector The focus of the of the national energy efficiency policy in Croatia is placed on the public sector. This approach is not only a consequence of the ESD requirements, but also the fact that through incentive policy measures and legislation, it is easiest to initiate activities in this sector. Furthermore, this approach is necessary due to the still insufficiently developed energy efficiency market in Croatia. Through its activities and decisions, the public sector can act on citizens and entities from other sectors to undertake similar activities to reduce energy consumption, and due to its purchasing power, it has the power to direct and transform the market towards more efficient products and services. However, the barriers for the application of energy efficiency measures in the public sector are exceptionally large. Among the most significant are: the inherited stance that energy costs are constant and unchangeable, the lack of employee motivation to achieve energy savings, the inability to redirect budgetary funds into energy efficiency projects without a complicated procedure, the lack of an organisational structure for energy management that would include persons responsible for energy management, the lack of a systematic overview of the status of buildings, and the lack of knowledge about the total energy consumption of all state administration buildings. For the purpose of removing these barriers, two comprehensive programmes are underway in Croatia: Systematic energy management (SEM) in cities and counties (measure P.1 in Section ) and House in Order (HiO) (measure P.1 in Section ). The primary objective of these programmes is capacity building in the public sector, at both the local level and the central state administration level, and the systematic and continued management of energy. Activities are directed at establishing an organisational structure for energy management (EE offices and EE teams), introduction of a system for continuous monitoring and analysis of energy consumed (EMIS) and employee training on energy efficiency. Therefore, these programmes aim to use the potential of soft measures of energy efficiency that do not require large investments. Global experience has shown that the establishment of SEM along can reduce total annual energy costs by 10 to 15%. With the of further technical measures to improve energy efficiency, an additional 20% can be saved. These data are confirmed through the said programmes, which have already achieved savings of about 10% over the baseline year (2007). However, through these programmes, the of energy audits also identify the potential for further energy savings which require the investments of additional resources. The project team also offers support in the preparation of documentation for co-financing such projects by the EPEEF. Project Systematic energy management in cities and counties In a letter dated 18 January 2008, the Minister of the Economy, Labour and Entrepreneurship invited all Croatian cities and counties to become actively involved in the project. The initiative of the SEM project Energy Charter of Mayors and County Prefects of the Republic of Croatia was signed by the representatives of 127 towns/cities and 20 counties in Croatia, which the DG Energy recognised as a very successful and unique project in Europe. As part of the SEM project, the first working conference on the Systematic Energy Management in Cities and Counties of the Republic of Croatia was held in Split (May 2008). The conference had a mobilization and educational character for representatives of local and regional self-government. The 2nd working conference on the SEM project, entitled Sustainable development of cities was held in Zagreb in April On 7 April 2008, the SEM project was received as a partner in the Sustainable Energy Europe Campaign, and with its national, Croatia was recognised as a leader of good practices in the region. During 2008 and 2009, Croatia received official requests from Montenegro, Macedonia and BiH for expert assistance and the transfer of SEM practices and activities. Furthermore, regional SEM info days are also organised throughout 158

159 Croatia as part of the project. Workshops are intended primarily for representatives of the LRSGUs, with the aim of informing about the of the legal framework on energy end-use efficiency, on the obligations of the public sector in Croatia, and the role of energy agencies in promoting energy efficiency. The possibilities for development and financing of energy efficiency projects and the introduction of the concept of a Green office in the operation of local and regional self-governments were presented. This established the platform for the exchange of best practices and experiences in energy management and improving energy efficiency among LRSGU, as well as experts and participants from other sectors. The main activities of the SEM project are: Promotion of the adoption of political decisions and public declaration of the energy policy and targets; Technical assistance for the establishment of energy management offices (EE offices) that will carry out all project activities at the city or county level, and carry out activities and obligations as defined in the Act on Energy End-Use Efficiency; Technical assistance for the establishment of a register of buildings owner by the cities and counties, through the establishment of the Energy Management Information System (EMIS). The EMIS is a webbased computer application that allows for the collection, storage and analysis of data on the consumption of energy sources and water for each building, group of related buildings, or all facilities owned by a city and/or county; Technical assistance for meeting legal requirements of systematic energy management with the aim of equipping teams in county to develop energy efficiency programmes and plans; Technical assistance for carrying out energy audits that are intended to analyse energy consumption in buildings, and to give a list of measures to improve energy efficiency with economic indicators; Technical assistance for the establishment of a system of educating the responsible persons, technical staff and all other employees; Technical assistance in implementing the concept of a Green office, in which activities that reduce negative impacts on the environment are introduced into regular business operations, and the efficiency of resource use is improved; Local promotion of local government activities, aimed at providing a positive example to citizens. The final point is exceptionally important and the most attention is focused on it, as this is the activity that will achieve the effect of the spilling of good practices from the public sector into other sectors and citizens in general. Local promotion is carried out through presence in the local printed and electronic media, and the establishment of special info-points, i.e.: EE info offices are found within the city/county administrations, where citizens can obtain information from qualified persons, i.e. EE advisors; the offices are equipped with models of EE products and systems of partner companies and their informational brochures (a total of 29 such offices set up). EE info gallery is a space equipped with project posters and brochures (total of 30 galleries set up). EE info centres are the best equipped info points and offer the widest range of information, and in addition to serving as an EE info office, they also include other content (EE corner), where energy efficient projects, technology and systems of partners companies are on display. These are usually housed in premises owned by the county/city or, occasionally, in companies under private ownership that cooperate with the local administration. One or more measures to improve energy consumption efficiency are installed in the EE info centres (total of 5 centres set up). EE corner represents a simulation of a house with EE products and systems in a city or sales space. At the EE corner, citizens can obtain information via informational and educational materials, and informative materials of partner companies (a total of 5 corners set up). 159

160 EE info panel communication system in the form of a two-sided City Light display that is installed at frequented places on public city areas (such as parks, squares, promenades, bus stations). Side A provides general information with EE advise, while side B provides information on SEM activities in the city/county where the info panel is installed (total of 19 panels installed). The activities of SEM projects carried out by the EPEEF, Department for promoting rational energy management and energy end-use efficiency, within the frame of the agency tasks include: Energy audits of buildings; Public display of energy performance certificates of building; Education of staff in energy management offices in cities and counties for the purpose of implementing the AEEE; Cooperation with local and regional energy agencies in the of SEM projects and the AEEE. Furthermore, in order to assist LRSGUs to independently launch promotional activities, the Handbook for initiating and implementing informational and educations activities in cities and counties was developed as part of this project. A series of materials used by EE advisors in advising citizens at the said info-points has also been created. These materials contain typical measures, the film/dvd Moj EE grad (My EE city), folder, 7A4 posters, the film Misli na sutra (Think about tomorrow), the brochures Izazov težak jednu tonu (The onetonne challenge) and 200 EE savjeta (200 EE tips), a flyer about the SEM project, a flyer about the HiO programme, the Green Office (guide + manual), Procura+ handbook, and the handbook Gospodarenje energijom u gradovima i županijama (Energy management in cities and counties). All these materials are also available on the project website at In this way, the local self-government units are not only working to improve energy efficiency in their own facilities, but also successfully presenting their activities to the general public. House in Order Programme The House in Order (HiO) programme of the Government of the Republic of Croatia was adopted by virtue of a Government Decision of 29 May Since March 2012, the MCPP has been responsible for the of the programme and informing the Government of RC thereof. The executive agency UNDP is responsible for the operative of the HiO programme as part of the national project Promoting energy efficiency in Croatia, while the EPEEF is responsible for financing. The project is planned over a 5-year period, with a budget of HRK 47.5 million. The start of the programme was marked by the signing of a tripartite agreement between the above institutions on 4 July 2008, and the programme was officially launched on 29 October The objective of the programme is to establish systematic energy management in facilities owned and used by the Government of RC, with a reduction of energy consumption from 10 to 30%, which for 3,000 buildings amounts to savings of HRK 45 to 135 million each year. This would also allow for the reduction of the detrimental impacts on the environment of 20,000 to 60,000 tco 2 per year. Activities carried out as part of this project are described below. 1. Preparation of the ministry for programme a. Preparatory activities that included a series of meetings and developing educational materials preceded the official launch of the programme. With the signing of the Letter of Intent, the UNDP and ministry agreed to cooperate on the programme. With this document, the ministry took on the following commitments: ensuring the necessary data for the creation of a building register; establishment of EE teams (energy efficiency teams) that would run and coordinate the programme activities in all phases on behalf of the ministry; via the EE teams, to systematically and continually keep track of energy consumption in buildings owned by the ministry, and to apply the principles of energy efficiency when implementing its projects; via the EE teams, to promote energy efficiency 160

161 among all its employees; to submit annual reports on energy consumption pursuant to the AEEE (Official Gazette 152/08, 55/12). 2. Establishment of a central buildings register a. After the submission of the list of facilities owned by the ministry, and education of the responsible and technical staff, the following would be collected for each building: basic information, information on the general state of the construction and energy consumers, and monthly bills for energy and water for the past three years. The collected data are then entered into the EMIS web-based application. Tracking consumption at the monthly or weekly level allows for an analysis of energy consumption and an overview of the status (i.e., irregularities in system functioning, leaks or efficiency of energy consumption). This aims to create a central database where it is possible to access information about energy consumption in all public buildings. In the future, remote metering is envisaged, which will ensure complete automatisation of the process to meter and track energy consumption. This year, remote metering systems were installed in 22 buildings as a pilot project. The remote metering measure is installed in such a way so as to install metering and communication infrastructure in the building, that allows for connection of the building system to the EMIS. 3. Education a. For the purposes of the programme, educational workshops and the accompanying materials were prepared. In addition to the informational and education workshops for the responsible persons in the ministry, and workshops for the establishment of the building register for directors/managers, education will also be carried out for the responsible technical persons at the level of the ministry and individual buildings. The following are being organised: i. energy advisor course for the EE team; ii. motivational workshop Green Office for all employees; iii. workshop for managers of the green offices; iv. course for maintenance and technical staff at buildings; v. workshop for establishing the building register and workshops for EMIS; vi. training for the weekly and monthly monitoring of energy consumption; vii. semi-annual and annual meetings; viii. conferences. In addition to raising the awareness and knowledge of employees, these activities also create a platform for the exchange of best practices and experiences in managing energy and improving energy efficiency among state administration bodies, and among experts and participants from other sectors. 4. Conducting energy audits a. Through the programme, energy audits of priority buildings are carried out to establish the potential for savings of energy sources and water at the buildings, and to define measures to increase energy efficiency. The energy audits are one of the steps in the energy certification of buildings that is carried out according to the prescribed methodology, and the energy certificates are issued by authorised persons. By 1 June 2012, 157 natural and 191 legal persons received authorisation for building certification, and a total of 1710 energy certificates were issued. 5. Implementation of energy efficiency measures a. Some of the measures to increase energy efficiency that can reduce energy consumption by up to 10% do not require additional investments, and these are referred to as free measures. These are changes in employee behaviour, changes in the working regime of devices and systems (regulation) and the of energy management. The plan is to first introduce all the free measures, and then to gradually implement energy efficiency measures that require a certain financial investment. At the current time, not a large number of complex technical measures for energy efficiency have been implemented. However, an implementing plan for measures is drafted for each ministry involved in the project, support is provided in the drafting of documentation necessary for 161

162 applications to EPEEF tenders for co-financing, and the application of the ESCO concept for the of these measures is promoted. 6. Informing the public a. The public is informed via the media (website television, radio and press) about the activities implemented by individual ministries. The annual report of the programme is a public document, and the results will be available on the above website. One of the promotional tools will be the public display of energy performance certificates, which will assist in showing the current state of energy consumption in public buildings, thereby raising the awareness of building users of this issue. As in the SEM project, this programme also focuses substantial attention on informing the public. In the forthcoming period, this will be achieved not only through presence in the media, but also through public displays of energy performance certificates, which will create a synergy with the requirements of the EPBD. Other activities and legal obligatio ns in the public sector The programmes described above have contributed to increasing the awareness of responsible persons in the public sector on energy consumption and energy efficiency issues. This fact is also visible from the number of energy efficiency projects in the public sector for which the EPEEF has granted co-financing. Furthermore, the only ESCO company in Croatia, HEP-ESCO d.o.o., has conducted the majority of its projects in the public sector. Considering the achievements within the SEM and HiO projects, the logical next phase would be the application of the identified energy efficiency measures with more substantial investment costs. In that sense, it is necessary to apply measures (such as measure P.4 from Section ) to stimulate investments in costworthy energy efficiency measures in the public sector, with the least possible burden on the budget. Furthermore, it is certainly worth emphasizing that the public sector has a legal obligation to implement energy efficiency measures as defined in the Act on Energy End-Use Efficiency (Official Gazette 152/08 and 55/12), and is obliged to manage energy use in its buildings and in public lighting. These obligations are as follows: 1. The counties are obliged to adopt three-year programmes and one-year energy efficiency plans, and to inform the ME and MCPP of the achieved results (Art. 9 11) - this obligation was carried out in the full by the City of Zagreb, while Osijek-Baranja County developed an annual energy efficiency plan for This is the consequence of the lack of capacities at the county level, and therefore it is exceptionally important to offer technical assistance through the SEM project for the development of projects and plans and for the of the same; - the EU initiative Covenant of Mayors (CoM) is also promoted through the SEM project. This initiative was joined by 14 Croatian cities by the end of 2010, and an additional six to the end of June Three cities (Ivanid-Grad, Klanjec and Rijeka) drafted their Sustainable Energy Action Plans (SEAP), while Ivanid-Grad and Rijeka submitted their plans. This initiative will certainly continue to be promoted, as it can significantly contribute to achieving the targets of the ESD and this NEEAP. 2. The appointment of legal or natural persons responsible for energy management, regular tracking and the monthly (at least) entry of data on the consumption of energy and water in buildings into the national energy management information system, and the analysis of energy consumption. 3. Conducting energy audits in buildings with a net area greater than 500 m 2 and, as of 9 July 2015, greater than 250 m 2 and obtaining energy performance certificates for public sector buildings. 4. In buildings, parts of buildings or building complexes whose annual cost of the consumption of energy and water is equal to or greater than HRK 300,000, to install remote metering systems at all metering stations. 162

163 5. To maintain and reconstruct the public lighting network in such a way so as to reduce electrical energy consumption, in compliance with the Act on Protection from Light Pollution. 6. To inform the ME and MCPP of the achieved results and of the total energy consumption pursuant to an ordinance that will prescribed the requirements of the energy audit, content of the report, keeping of the register, etc. The definition of the national energy management information system as a computer application for the tracking and analysis of energy consumption in public sector buildings, in which the general, construction and energy data and final consumption data for energy and water are entered into the system via an internet portal for each public sector building, and the obligation of the entry of data into this system terminated the obligation of the public sector to keep, maintain and develop information systems for energy efficiency and, in line with the ordinance on the unified energy management information system, that these data are submitted to the ministry and the EPEEF. Proof of the raising of awareness on the need to manage energy and local energy planning is certainly the strong development of regional energy agencies in the past three-year period. Some of these include: Northwestern Croatian Energy Agency, North Regional Energy Agency, Međimurje Energy Agency, Kvarner Regional Energy Agency, Istria Regional Energy Agency, and Eastern Croatian Energy Education Agency. Summary overview of measures and energy savings achieved in the public sector Table 35 gives a summary overview of the activities and energy savings achieved in the public sector. It is worth emphasizing that the target for 2016 in the services sector (including commercial services) in the 1 st NEEAP was set at 3.76 PJ, and the target for 2010 was set at 1.25 PJ of energy savings. The activities to date in the public sector alone have achieved about 54% of the total sectoral target for 2010, or 18% of the target for Though these are good results, it is necessary to invest further efforts and to implement the planned measures. In particular, in the forthcoming period, it is necessary to achieve significant investments in complex technical measures to renew existing public buildings and public lighting systems. Considering the limited financial sources in the public sector, it is necessary to facilitate the application of contracting by achieved effect, which is also a legal obligation. It is worth noting that Table 35 does not show the energy savings that are the result of legislation in the construction area (measure B.1) due to the inability of determining the precise share of constructed public buildings in the total number of constructed non-residential buildings. Table 35 Summary overview of measures and achieved energy savings in the public sector by end 2010 Measure/programme Invested funds to end of 2010 [million HRK](with VAT) Achieved energy savings to end of 2010 SEM project (partly financed by EPEEF) TJ (90.96 GWh) HiO programme (partly financed by EPEEF) TJ (59.14 GWh) Support from EPEEF: TJ (21.21 GWh) Public lighting TJ (6.30 GWh) Sustainable building TJ (1.56 GWh) Other EE projects ,28 TJ (12,02 GWh) Energy audits TJ (1.32 GWh) HEP-ESCO: TJ (18.27 GWh) Schools TJ (4.30 GWh) Hospitals TJ (7.81 GWh) Public lighting TJ (6.16 GWh) TOTAL TJ ( GWh) 50 The total value of invested funds is shown, with the EPEEF contribution amounting to approximately 40%. 163

164 Recommendations for future periods The measures envisaged by this NEEAP represent a part of the real activities that are ongoing in the public sector to improve energy efficiency. These measures aim to simulate actors at the local and regional level to implement energy efficiency measures. In the past three-year period, great progress has been achieved in raising the level of awareness and knowledge in the public sector on the need for energy management and for implementing energy efficiency measures. However, there is significant room for improvement, as summarized below: 1. SEM and HiO projects should continue to be implemented in the planned manner it is particularly important to ensure the continuation of activities even after the formal completion of the involvement of the UNDP project team among else by transfer fo activities and expert stuff to Centre. Projects in the forthcoming period should ensure investments in complex technical measures of energy efficiency that would achieve large energy savings financing should be secured through the EPEEF and the stimulation of establishment and operation of ESCO companies. 2. LRSGU should offer technical support for the execution of legal obligations to introduce the EMIS into all public sector buildings and to develop the structures and recommendations for the development of county plans and programmes, which has already been initiated through the SEM project with the drafting of the handbook: Systematic energy management: weekly and daily analysis and interpretation of energy consumption data and the of a series of thematic workshops. 3. Operational management of of Energy management informational system (EMIS) should be entrusted to Centre. Gradually, Centre shall assume most of the activities from UNDP (together with EMIS), especially those activities which run under House in order programme. Accordingly Centre shall be central body for cooradination and operational of energy management in public sector on national level. 4. Systematic reporting on the achieved activities that are not under the direct jurisdiction of state bodies should be improved it is necessary to establish an information system on the achieved activities (implemented energy efficiency measures) and verification of energy savings that will prove the legal obligations have been met. Operational management of this system is entruster to Centre. The drafting of the NEEAP has also shown that the competent institutions do not possess data on the activities being implemented in the field, and therefore the establishment of such a system is one of the priorities in the forthcoming period. 5. In line with its legal obligations, MCPP is responsible for preparation of the draft Regulation on the manner of contracting energy services for public sector clients, which will facilitate contracting by achieved effect in the entire public sector and thus develop the ESCO market in Croatia, while also achieving the desired improvements to energy efficiency with the least possible burden on the state and local budgets Leading role of the public sector in the of EPBD In general, the public sector in Croatia has a leading role in the of activities to improve energy efficiency, especially the of measures P.1 and P.2. In the forthcoming period, the emphasis is placed on renovating the existing public buildings based on the principles of energy efficiency, with the target of renovating 3% of the existing public buildings each year (measures P.5) to achieve a minimum of energy class B and to approach as best possible a zero-energy standard. These measures defined in Section also meet the requirements of the EPBD II (Article 9.2 and Article 11.5), but more importantly, they significantly contribute to achieving the overall national target to 2015, which will not be possible to achieve without the measure to renovate existing buildings intended for all purposes Special measures for public procurement In line with the ESD requirements, in the public sector it is necessary to apply at least two of six proposed measures from Annex VI of the Directive. It is possible to choose among the following measures: a) use of financial instruments to save energy, including energy performance contracts; 164

165 b) purchase of equipment and vehicles on the basis of specification lists of energy efficient products; c) purchase of equipment that has efficient energy consumption in all work phases, included stand-by; d) replacement or refurbishment of existing equipment and vehicles with equipment listed in points b) and c); e) conducting energy audits and following the recommendations to reduce costs. Energy performance contracts for the public sector will be defined under the Regulation on the contracting and of energy services for the public sector, proposed by the MCPP and adopted by the Government of RC. Pursuant to the Budget Act, such agreements are considered loans in goods (borrowing), which is not suitable for the of ESCO projects in the public sector. With the adoption of this regulation, the requirements of the ESD would be met, thereby enabling the application of option a) from Annex VI. With the Act on Energy End-Use Efficiency (Official Gazette 152/08) and Ordinance on energy audits of buildings (Official Gazette 05/11), the public sector was obliged to regularly conduct energy audits, i.e. every five years in buildings with an area greater than 1,000 m 2. As evident from the description of measures given in Sections and Section 3.4.1, energy audits have been carried out in the public sector both through SEM and HiO projects, and also through the initiatives of the public sector with the support of the EPEEF. Amendments to the Act on Energy End-Use Efficiency (Official Gazette 55/12) envisage that the minister responsible for construction regulates in detail the issues concerning the performance of energy audits of buildings, energy performance certification of buildings and the performance of independent controls of reports on energy audits and issued energy certificates through an ordinance on energy audits and energy certification. The performance of energy audits is mandatory for buildings whose net area exceeds 500 m 2, and as of 9 July 2015 will be mandatory for those whose net area exceeds 250 m 2. Measures b), c) and d) are not explicitly listed in the legislation in the area of energy efficiency, however, the Public Procurement Act (Official Gazette 100/07, 125/08) explicitly lists energy efficiency as one of the criteria that must be included in the procurement in questions and the technical specifications. However, practice has shown that this possibility is virtually not used at all, and that public procurement is most often based on the criteria of the lowest price, and not the economically most favourable price. It is with this idea that the measure P.3 Green public procurement was conceived, as it is intended to develop detailed recommendations and technical specifications of energy efficient equipment and vehicles, which could more easily be integrated into the public procurement procedures. These recommendations have not been developed in the preceding period, and therefore it is necessary to increase efforts in this area. At the end of 2009, the Central Office for Public Procurement was established by virtue of a special Government regulation. This office is expected to have a significant role in the future of green public procurement. The office performs the central public procurement tasks, with regard to the optimum relationship between quality and price of the procured goods, works and services, abiding by ecologically and socially acceptable measures, sustainable procurement and stimulating small and medium entrepreneurship. The entry of the office into the HiO programme marked a significant step forward, however, in the forthcoming period, it is necessary to implement the planned activities by developing guidelines and initiating their application. Within the project Systematic energy management in cities and counties (measure P.1), the campaign Sustainable public procurement will be carried out in cooperation with the office. The campaign will consist of a series of workshops and round tables at the national level, while the most important task of the campaign will be to secure the legal and technical knowledge of skills of those performing public procurement. It is also exceptionally significant that data on the quantity and type of procured energy efficient products be tracked, so as to assign the proven energy savings to this measures. It is worth noting that through transposition of the provisions of Directive 2010/30/EU on the indication by labelling and standard product information of the 165

166 consumption of energy and other resources by energy-related products, Croatia will legally increase the obligation of procurement of energy efficient products through labelling and standardised information about products. Namely, provisions will be introduced into the national legislation requiring those subject to apply the provisions that regulate public procurement when procuring products to demand only those products that meet the criteria at the highest levels of work properties, and which fall into the highest classes of energy efficiency available on the market of the Republic of Croatia, while considering the criteria of economics, technical feasibility and the protection of market competition. 3.9 Ensuring the accessibility of advice and information Information and education activities have been systematically implemented since The website ( toll-free info-line for citizens ( ) and the initial EE infopoints for citizens in Zagreb, Split, Osijek and Rijeka were the first activities undertaken, followed by a comprehensive national media campaign from January 2007 to April For the purpose of systematically informing and educating citizens, and stimulating the transformation and sustainable development of the energy efficiency market, cooperation has been set up with manufacturers and distributors of premium products and technologies. Together with these partner companies, 88 EE info-points have been jointly set up in 28 cities and 10 counties in the Republic of Croatia, i.e. 29 EE info-offices, 5 EE infocentres, 30 EE info-galleries, 5 EE info-corners and 19 EE info-panels (this measure is also an integral part of the activities in the public sector under the project SEM in cities and counties, see measures P.1 and Section 3.4.1). Five EE info-days were organised on the squares, promenades, waterfronts and central city parks of Split, Dubrovnik, Sisak and Vinkovci, where citizens had the opportunity to view the most advanced and modern products, technologies and systems available on the market, and had access to free energy advice. Three international conferences were also held in Split, Zagreb and Dubrovnik, and one national conference was held in Komiža on the island of Vis. Alongside the national media campaign, energy efficiency topics are continually presented in the media and informational and educational publications are disseminated: 93 public events with 83 press conferences have been held on the topic of energy efficiency in Croatia; 209 educational emissions have been held on television and radio programmes, with a total duration of more than 54 hours and more than 200 educational articles in the print and electronic media; 50 screenings of the educational file Moj EE grad (My EE city) have been shown; 600,000 copies of the educational brochure Izazov težak jednu tonu CO 2 (The one-tonne CO 2 challenge) and 715,000 copies of the educational brochure 200 EE savjeta (200 EE tips) have been inserted in all the daily newspapers, and 50,000 educational packages containing brochures and the educational animated DVD film Misli na sutra (Think about tomorrow) have been inserted in children's magazines (Meridijani, Drvo znanja, Dječji klub i National Geographic Junior); The Think about tomorrow EE school class for primary school pupils has been held 15 times, and more than 500 Think about tomorrow educational packages handed out to pupils. President of the Republic of Croatia Ivo Ivo Josipovid participated in the EE school class Think about tomorrow at the Marin Getaldid Primarily School in Dubrovnik on 5 April Great success has also been achieved with the thematic website project Promoting energy efficiency in Croatia. From October 2008 to October 2010, the website had a total of 116,047 visits. In validating the increasing impact of social networks on the internet, in late November 2009, a Facebook profile was created for Gašpar Energetid (the main character in the campaign), who in less than two months gathered some 2000 friends with whom information is regularly exchanged and important energy efficiency related topics are discuss. Today, the character has more than 4300 friends. 166

167 Within the framework of the project, numerous expert and informational and educational publications, handbooks and brochures have been prepared and published. These have been systematically disseminated to target groups, and according to the research results conducted from 2007 to 2011, public knowledge about energy efficiency measures and energy efficient products, and the public readiness to apply those measures has significantly increased: the number of citizens who believe that they can reduce energy consumption by applying energy efficiency measures has increased from 27.9 to 47.7%; the number of citizens who are familiar with the available energy efficient products has increased from 33.4 to 43.9%; the number of citizens using energy-saving light bulbs has increased from 48% to 67.4%; the number of citizens using household appliances with an A+ class of energy efficiency has increased from 22% to 30.8%; the number of citizens using windows with insulation glass and low-e protection has increased from 14.8% to 23.4%. In addition to these activities, it should be emphasized that the EPEEF financially supports educational, research and development studies and holds thematic conferences, expert meetings and workshops, which significantly contribute to ensure all participants are informed about energy efficiency. It is also necessary to stress that the availability of information is also ensured through the legislative and regulatory framework, especially in the parts in which the distributors of operational systems and energy suppliers are obliged to inform their customers about the possible ways to improve energy efficiency (described in greater detail in Section 3.6) Obligation of energy companies to promote end-user energy savings The ESD sets the following requirements for operators of distribution systems and energy suppliers: submission of energy consumption data in their area (Article 6.1.a), supply of energy services (Article 6.2.a.i) and ensuring informative billing and individual metering for energy consumption to its customers (Article 13). These requirements have been transposed into the Croatian legislation through the Act on Energy End-Use Efficiency (Official Gazette 152/08, Articles 17, 26 and 28). Supply of energy services The best example that illustrates how these obligations are met is the vertically integrated company HEP d.d. In 2003, this company established a company for the supply of energy services HEP-ESCO d.o.o. This is the only company in Croatia that is registered to provide energy services, and it deals with the preparation, execution and financing of energy efficiency projects at the end user (activities described in detail in Section 3.7). There are several companies within HEP d.d. that are subject to the obligation to provide energy services: HEP-ODS d.o.o., HEP-Opskrba d.o.o., HEP-Plin d.o.o. and HEP-Toplinarstvo d.o.o. Through their websites and through other means, all these companies inform customers about general energy efficiency measures, while customers are directed to HEP-ESCO for additional information and services relating to energy efficiency. Some of the more significant activities that meet the obligation of supplying energy services include: tips on the Facebook page, sending flyers to customers, and direct participation in energy efficiency projects, e.g. HEP- Opskrba together with HEP-ESCO implement projects in hotels; the participation of HEP-ODS in the of activities in the public sector (measures P.1 and P.2, Section ); HEP-Toplinarstvo d.o.o. regularly informs its heat energy customers through informative flyers of the possibility of more rational use of heat energy, in particular emphasizing the advantages of installing electronic heat splitters and radiator valve thermostats, which ensure increased energy efficiency and heat energy savings. HEP-Toplinarstvo d.o.o. directs heat energy customer queries about the installation of these devices to authorised companies who provide these services. Furthermore, the HEP-Toplinarstvo d.o.o. website provides tips to save heat energy, and stimulates heat energy customers to apply energy efficiency measures. Other suppliers, particularly those 167

168 supplying natural gas and heat energy in Croatia (e.g. Energo d.o.o., Gradska plinara Zagreb, etc.) have been paying increased attention in recent years to promoting energy efficiency among its customers in similar ways. Individual metering Supplier activities that achieve energy savings are most pronounced in the centralised (district) heating systems segment, and these relate to the installation of devices for the local splitting of heat energy and individual consumption metering. Such activities have been implemented by heat energy suppliers in Slavonski Brod, Rijeka, Vukovar, Varaždin, Požega and Virovitica (the results are outlined as part of the measure E.1 Informative billing and individual metering in Section ). Examples from practice have shown that the installation of heat splitters and regulation values can reduce the consumption of heat energy in buildings by up to 30%. It should be stressed that in line with the legislation (Act on Production, Distribution and Supply of Heat Energy, Official Gazette 42/05), all buildings constructed after 2005 and which are hook-up to centralised heating systems require the installation of heat energy metering devices for every part of the building that represents an independent unit (residential/commercial unit). For customers in older buildings with joint heat energy meters installed, suppliers will give an offer for the installation of heat energy meters at the level of the independent unit, where this is technically feasible. The offers to install heat energy consumption meters for final users are compiled based on competitive prices achieved with the procurement of the necessary equipment through the public procurement procedure. The costs of installing the heat splitters and regulation valves are borne by the final users, though some projects have received co-financing from the EPEEF, and others have received the financial support of the LRSGU. Due to the exceptionally high energy savings that these activities can achieve, in the forthcoming period it is necessary to open special co-financing programmes in the EPEEF for this purpose (measure E.1 in Section ). Furthermore, in order to fully achieve the energy saving potential through the application of this measure, it is necessary to conduct a strong promotional campaign to inform the owners of residential units of all the benefits that individual consumption metering brings. Furthermore, the obligations of heat energy suppliers should also be legally made more stringent; namely, pursuant to the Act on the Production, Distribution and Supply of Heat Energy (Official Gazette 42/05, 20/10), suppliers are obliged to give consent to consumer requests for the installation of splitting devices for delivered heat energy, devices to regulate the release of heat and devices for the measurement of heath energy consumption (Article 24). This regulation should be made more stringent and prescribe the obligation of suppliers to, where technical feasible, implement these activities for their customers within a set time period. ME and HERA are entrusted with the of the necessary amendments and adoption of the new regulations. Such pronounced issues relating to individual consumption metering are not present in the supply of electrical energy and natural gas, and it is possible to ascertain that individual consumption metering has been fully secured for each independent unit through the existing regulations (network rules, general supply conditions). Informative billing According to the General terms for the supply of electrical energy (Official Gazette 14/06), the calculation of consumed electrical energy is performed according to the defined calculation periods. Metering devices for business category customers are read once monthly, while the meters of household customers are read once every six months. However, customers are also able to submit their meter readings in different ways (via a tollfree telephone line, the HEP-ODS website, fax or in person), and the consumed electrical energy is then calculated according to those readings. The consumption of natural gas is calculated at the time and in the manner prescribed under the General terms for the supply of natural gas (Official Gazette 43/09 and 87/12). For large customers, this is every 15 days, and monthly for all other customers. The calculation of the consumption of heat energy is conducted monthly based on the actual consumption read from the heat energy meter, pursuant to the General terms for the supply of heat energy (Official Gazette 129/06). 168

169 In the forthcoming period, as a transitional measure towards the of smart meters, it is necessary to stimulate consumers to continually monitor energy consumption, by reducing the price of metered non-standard prices in the calculation of the monthly payment obligation for those customers who read their meters and deliver their own readings. In this way, consumers would become more aware of their own consumption, and would be able to rationalise it. The majority of suppliers still do not provide a comparison of their bills of the current energy consumption with the energy consumption in the same period of the previous year, or comparisons with normalised values or consumption of the referential customer from the same user group. However, it is worth noting that the majority of suppliers have launched and are continually working on the development of web applications that will allow customers to have insight into their energy consumption through the calculation period. In the forthcoming period, it is necessary to stimulate suppliers to offer customers broader and cost-effective methods for reading their own meters and submitting the consumption data through web applications. Other requirements of the ESD As evident from the above description of the implemented activities, distribution system operators and suppliers in Croatia are obliged to offer energy service for their customers. With this, Croatia has clearly opted for option i. from Article of the ESD. The ESD offers an alternative solution by offering the establishment of a voluntary agreement scheme with energy companies, or the of market mechanisms such as white certificates. These mechanisms have not yet been established in Croatia. Voluntary agreement have also not been considered, while an initial analysis of the justification and feasibility of white certificates has been made as part of the project "Approximation of EU Renewable Energy Legislation and Energy Efficiency Labelling" - RELEEL), financed by the European Commission through the CARDS 2004 programme. Though the project results indicated the possibility of establishing a white certificate scheme, during the drafting of the Act on Energy End-Use Efficiency in 2008, the possibility of establishing an obligation of suppliers to achieve energy savings at their final users was rejected. Therefore, the National Energy Efficiency Programme for the period recommended that the possible development and of a white certificate scheme in Croatia be the subject of further examination and analysis, and that this scheme should be introduced into the second implementing period of the programme, i.e. from 2011 on. In line with this instruction, and considering the new EU Energy Efficiency Plan and the proposed new Energy Efficiency Directive, in the period of the 2 nd NEEAP, it is necessary to develop in detail the plan to implement the white certificate scheme based on the obligation of suppliers to achieve savings at their end-users (measure E.2 in Section ) Energy services market in Croatia The development of the energy services market began in 2003 at the initiative of the World Bank (IBRD) and the Global Environmental Fund (GEF) in cooperation with Hrvatska elektroprivreda d.d. (Croatian Electric, HEP) and the Croatian Bank for Reconstruction and Development (HBOR). For that purpose, HEP, or rather its daughter-company HEP-ESCO d.o.o. was approved a World Bank loan in the amount of EUR 4.4 million and a GEF donation in the amount of USD 5 million. The total value of the project, with the participation of the domestic banks, is assessed at USD 40 million for a six-year period.hep-esco d.o.o. is the only active ESCO company in Croatia. 51 The company began its operations in 2003 and the number of projects, total investments and achieved energy savings to the end of 2010 are shown in Table The report Energy Service Companies Market in Europe - Status Report 2010, compiled by the JRC Energy Institute, lists two ESCO companies in Croatia, however, given the number of implemented projects by the second company, its market share is negligible. 169

170 Table 36 Overview of achievements of the company HEP-ESCO d.o.o. Sector Number of projects Invested funds to end of 2010 [in million HRK] (with VAT) Achieved energy savings to end of 2010 Schools TJ (4.30 GWh) Hospitals TJ (7.81 GWh) Public lighting TJ (6.16 GWh) Industry TJ (0.85 GWh) TOTAL TJ (19.12 GWh) Though HEP-ESCO has achieved great success, the desired market development has not occurred. It is evident that the public sector is the most significant sector for the development of the energy services market. However, there are still strong barriers for more pronounced growth of the ESCO market in this section lack of client trust, few small projects and high transaction costs caused by the long-lasting process for final decision making, and most of all the rules and procedures of public procurement and the treatment of investments in energy efficiency projects. The ESCO model has not been recognised by the competent institutions as a business model of providing services, but as a model of delivering goods. As such, ESCO companies are required to pay VAT on the total value of equipment at the time of installation of the equipment that would achieved energy savings in operations. The result is the inability of ESCO companies to invoice their services as a package. However, most importantly is that this understanding of the ESCO model treats their investments as an exchange of goods, and the LRSGU are required to request approval from the Finance Ministry to implement these projects as additional borrowing, and the result is a significance reduced number of these kinds of contracts in the public sector. The Budget Act (Official Gazette 87/08) and the Act on the Execution of the State Budget of the Republic of Croatia for 2010 (Official Gazette 151/09) contain borrowing restrictions which hinder the application of energy efficiency measures. It is worth noting that until the adoption of the most recent Act on the Execution of the State Budget, the interpretation of the Ministry of Finance from 2004 was in effect, by which energy efficiency projects implemented by the ESCO model were not a loan model, and until that time there were virtually no problems in the of projects for LRSGUs, and those that arose were resolvable and successfully overcome. As the ESD obliges member states to remove all restrictions (except fiscal) that unnecessarily restrict the application of energy efficiency measures, this problem will be resolved through the Regulation on the contracting and of energy services for the public sector, proposed by the MCPP and adopted by the Government of RC. This regulation will define energy performance contracting for the public sector (i.e. for budget beneficiaries). With the adoption of this regulation, all the requirements of the ESD would be met and application of option a) from Annex VI would be made possible. The Act on Amendments to the Act on Energy End-Use Efficiency (Official Gazette 55/12), envisages the adoption of this regulation with provisions that will facilitate the application of energy performance contracting in the public sector, and the deadline for its adoption is 15 June Furthermore, the NEEAP envisages that a special emphasis be placed within existing programmes, especially SEM and HiO (measures P.1 and P.2) on the preparation of complex technical projects to renovate existing public buildings that will be executed through energy performance contracts, with additional co-financing from the EPEEF so as to avoid burdening the state and local/regional budgets. New measures will also be introduced directed at public lighting systems for which consideration will be given to securing financial support to ESCO 170

171 companies, and not just the owners of the public lighting systems, by the EPEEF and in the form of favourable loans from commercial banks for the of these projects at their clients, primarily LRSGUs. Considering that the total potential of the Croatian ESCO market is assessed at EUR 300 million, with EUR million of that in the non-residential sector, 52 stimulating ESCO companies and projects becomes imperative in the next period, not only due to the possibility of achieving energy savings, but also due to the exceptionally large potential for economic recovery and improved involvement of domestic companies and industries. 53 Furthermore, in order to increase interest for cooperation with ESCO companies, it is necessary to define the basic components and manner of monitoring the of energy performance constructs with guarantees of savings for all types of users on the ESCO market, and not just state budget beneficiaries Strategy to increase the number of nearly zero-energy buildings MCPP, as the ministry responsible for the of the EPBD II, has initiated the process of adapting the legislative/regulatory framework which will include all the requirements of the Directive, including the requirement for the drafting of a national plan and the application of measures to stimulate nearly zero-energy buildings, pursuant to Article 9 of the EPBD II. All the envisaged activities are described as part of measure B.1 in Section The laws and regulations will ensure that all new buildings built to 31 December 2020 are nearly zero-energy buildings, and that as of 31 December 2018, new public purpose buildings are nearly zeroenergy buildings. The measures defined within the NEEAP are fully aligned with these requirements of the EPBD II (measures R.4 and R.5 for households, measure P.5 for the public sector, and general measures B.4). Additionally, the establishment of an incentive system is envisaged for the construction of new buildings that will have better energy properties that those required by the regulations (measure B.4), which will further achieve greater construction of nearly zero-energy buildings Alternative measures for heating and air-conditioning systems In line with Articles 20 and 21 of the Act on Energy End-Use Efficiency(Official Gazette 152/08), the Ordinance on energy audits of buildings (Official Gazette 05/11) was adopted in early This marked the beginning of the of measure B.2, described in Section The Ordinance prescribes the obligation of implementing control checks of building heating systems with boilers with a total output of 20 kw and greater, and for building air-conditioning systems with a total output of 12 kw and greater, thereby meeting the requirements of the EPBD II. The purpose of the control checks of these systems is to determine whether they are properly sized, kept and maintained in the manner stated in the technical documentation and manufacturer's recommendations, to determine their actual energy efficiency and to provide recommendations for improvements. Control checks do not imply the maintenance (service) of these systems, as the obligation for regular maintenance is prescribed under the relevant technical regulations. Control checks may be performed by persons authorised by the MPCC or ME, with the condition that they are mechanical engineers. The Ordinance prescribes the steps of the control check for each of these systems, and outlines the content of the report in its annexes. In line with the recommendation of the European directives, and above all due to the cost-efficiency of energy systems and control checks, the of the control checks is aligned with the of the energy audit (either for the purpose of energy management or the issuing of building energy certificates). The time alignment is achieved with the prescribed frequency of conducting control checks of five years, such that the control checks must be an integral part of 52 Angelica Marino, Paolo Bertoldi, Silvia Rezessy: Energy Service Companies Market in Europe - Status Report 2010, European Commission - Joint Research Centre - Institute for Energy, HEP-ESCO has hired 140 small and medium enterprises on energy efficiency tasks in its projects. 171

172 the energy audit. The only exceptions are heating systems with boilers with an output greater than 100 kw which are deemed small heating plants pursuant to the regulations stipulating the border limits of pollutants in the air from stationary sources, which prescribes the obligation of conducting control checks every two years. In this way, control checks of heating and air-conditioning systems will primarily be conducted in buildings subject to the obligation of energy certification and energy management. For other buildings, and especially for residential buildings, it is not possible to determine how many heating and air-conditioning systems will be subject to this obligation. This has certainly hindered application, but attempts will be made to overcome these barriers through the establishment of a data collection system, formation of a database and increased inspections. Furthermore, and certainly very importantly, is that available information and advice for end users regarding the replacement of boilers and other interventions in heating and air-conditioning systems that will increased their efficiency ensures the establishment of a network of energy consultation centres, which is described in detail in Section 3.5, and in part in Section 3.4. It is necessary to stress here that there are currently two methodologies in place in Croatia for the of energy audits. The methodology for the of building energy audits for the purpose of certification was prescribed by the MCPP, while the ME has prescribed the methodology for energy audits, including buildings, for the purpose of energy management in the Ordinance on building energy audits (Official Gazette 05/11). The Amendments to the Act on Energy End-Use Efficiency (Official Gazette 55/12) envisages the adoption of an ordinance on energy audits of buildings and energy certification of buildings that will regulate the manner and conditions of implementing energy audits of buildings, contain the report on the energy audit, the manner of energy certification of buildings, the content and appearance of the energy certificate, the annual border limits for final energy consumption of buildings that serve to determine the category of large energy consumers, public buildings that are subjected to energy audits and the public display of the energy certificate, the detailed content and manner of keeping the register, manner and conditions for the of independent control reports on the performed building energy audit and issued energy certificate, and other issues relating to the of building energy audits and building energy certification. The ordinance is to be issued by the minister responsible for construction, with the approval of the ministry of the economy. It should also be emphasized that in line with the requirements of the EPBD, Article 52 of the Technical regulations on the rational use of energy and heat protection in buildings (Official Gazette 110/08 and 89/09) for buildings larger than 1,000 m² prescribes the obligation to draft the Report on the technical, ecological and economic feasibility of alternative systems for the supply of energy, in particularly, decentralised energy supply systems using EE, cogeneration systems, remote/block heating, systems with heat pumps and systems with fuel cells. For this reason, the cooperation of experts from various profiles is required in developing these projects and in making decisions on the optimal selection of the energy concept for the building. The MCPP should adopt the Study of the applicability of alternative energy systems as soon as possible Support measures for implementing the EPBD The measures that support the and fulfilment of the requirements of the EPBD (and EPBD II), and that are defined in this NEEAP are outlined in detail in Sections , and Additionally, Annex II provides a list drafted by the MCPP of the existing and planned measures and instruments for meeting the EPBD targets. 172

173 4 INSTITUTIONAL FRAMEWORK FOR IMPLEMENTING THE ENERGY EFFICIENCY POLICY 4.1 Status analysis period of of 1 st NEEAP According to the Act on the Energy End-Use Effiicency (Official Gazette 152/08, 55/12), two ministries are responsible for the development and of the energy efficiency policy in Croatia, the Ministry of Economy (ME) and Ministry of Construction and Physical Planning (MCPP). ME and MCPP jointly draft proposals of laws and subordinate legislation in the area of energy efficiency, and jointly develop and propose the National Energy Efficiency Programme and the National Plans for its. In the preparation and of energy efficiency policy, they run the system for monitoring and verifying energy savings in the area of competence of each ministry, jointly compile and publish reports on the achieved results and jointly prepare reports on the of the National Programme and National Energy Efficiency Action Plan. The of the said Act (before amendments) has pointed out difficulties due to the unclear division of responsibilities between ME, MCPP and EPEEF. The EPEEF is the primary institution responsible for co-financing energy efficiency projects, without the capacity for acting as an implementing body and with questionable justification of the fact that the same institution should prepare projects and approve the cofinancing of energy efficiency projects. Furthermore, the obligation of submitting data on final energy consumption for suppliers and customers has, until now, been based on the envisaged ordinance on the unified information system for energy efficiency, though it has been proven that such an ordinance largely overlaps with the issues regulated by the Ordinance on the energy balance, and that improving the process of data collection as defined by that ordinance is recommended instead of developing a parallel system of collecting and processing data. With the of that Act, the issue of regulating energy audits of buildings for the purpose of energy management is envisaged via a system separate from the one run by the ministry responsible for construction issues for the purpose of energy certification of buildings in such a way that the methodology of implementing energy audits of buildings, for the purpose of certification, was defined by the ministry responsible for construction, while the methodology for energy audits of structures, including buildings, for the purpose of energy management was defined by the ministry responsible for energy. The need for both methodologies in this case is not justified, and also imposes additional costs for persons interested in dealing with these tasks, thereby restricting the development of the energy audit market. On the other hand, the issue of supervision over the compulsory of audits of heating boilers and air-conditioning systems in buildings has been separated from the building as a whole, and entrusted to the ministry responsible for energy, and not the ministry responsible for construction, which has supervision over the building as a whole. The Act defines the activities of energy services based on energy performance contracting, in which the investments into measures to improve energy efficiency are returned through the achieved savings. Considering that this activity does not exist in the national classification of activities, those providing such energy services are required to request the approval of the ministry responsible for energy to perform such activities. The result of this is that only 2 3 persons have requested and obtained this approval in the past three years. With the same act, the authority in the of energy efficiency policy have been assiged to the Environmental Protection and Energy Efficiency Fund (EPEEF). As such, the EPEEF is responsible for the monitoring and verification of energy savings, but only among its users, and is obliged to inform ME of the same. It is important to stress that with the Act, the EPEEF has been given the obligation of the promotion, development and of sectoral programmes in the final energy consumption sector, and the 173

174 promotion of informational and educational activities in cooperation with the line ministries. For that purpose, a separate organisation unit has been established within the EPEEF, the Department for rational energy management and energy end-use efficiency. The Department for rational energy management and energy enduse efficiency in the EPEEF was established in 2009 pursuant to amendments to the EPEEF Statute (Official Gazette 101/09) and the department has three employees. Due to being understaffed in relation to the scope of activities and the need to conduct part of the activities of financial management of projects, the activities of this part of the EPEEF in the preceding period have been very limited, and some obligations defined by the Act, the National Programme and the Energy Efficiency Plan have not been initiated. Regardless of the establishment of the separate organisation unit, the EPEEF continues to act primarily as a financial institution that operates primarily through annual tenders for co-financing and through support to existing projects and programmes, with a very small number of targeted programmes. Furthermore, in the preceding three-year period, the existing organisation structure has proven to be insufficient and markedly ineffective. The existing administrative capacities within MCPP and ME were insufficient with only two employees in MCPP and one employee in ME responsible for the of the national energy efficiency policy. This understaffing of the bodies responsible for the overall and supervision of the energy efficiency policy has created significant difficulties and delays in the execution of all obligations. Furthermore, in the preceding period, the necessary subordinate legislation pursuant to the AEEE was not adopted in full, and a comprehensive system to monitor the activities conducted at the national and local/regional levels was not established. Without systematic monitoring, it is not possible to accurately estimate the achieved energy savings resulting from the incentive policy measures defined by the NEEAP, and the activities stimulated by those measures. In addition to the lack of administrative capacities in the state bodies, there is also a pronounced lack of cooperation and coordination between these bodies, which slows and hinders the of activities both in the adoption of the necessary laws and regulations, and in the of energy efficiency measures. In particular, there is a lack of integration and understanding of energy efficiency in areas which are partly under the competence of other ministries, particularly the Ministry of Finance and the Ministry of Science, Education and Sport. It is necessary to ensure that all ministries work in accordance with the NEEAP, as this is a document adopted by the Government of RC. At the local and regional levels, extraordinary progress was achieved in the preceding period to strengthen capacities for the of energy efficiency measures. This is thanks to the project Systematic energy management (SEM) in cities and counties (measure P.1, described in detail in Section 3), which is implemented by the UNDP project team on behalf of MCPP (until 2011 on behalf of the Ministry of Economy) and with the cooperation and financial support of EPEEF. The project team consists of about 40 employees (the project team in the public sector implements informational and promotional activities as part of measure R.1 in addition the measures P.1 and P.2) and has a strong network of collaborators. The successful of the SEM project is based on the strong implementing capacities which continuously cooperate with and stimulate the LRSGUs to establish their own teams for energy planning and the of energy efficiency measures. To date, teams have been established in 64 cities (of a total of 127) and 14 counties (of a total of 20). The existence of EE teams as part of the local/regional administration is a key criteria for the selfsustainable and continual of energy efficiency measures. Furthermore, in the preceding period, a series of regional energy agencies have been founded at the regional level, which in their areas offer support in the development of energy efficiency programmes and plans and in the of energy efficiency measures. 174

175 4.2 Achieved and planned necessary improvements A necessary prerequisite for the successful of energy efficiency policy is certainly a favourable and stimulative legislative framework (measure H.7). In May 2012, the Act on Amendments of the Act on Energy End-Use Efficiency (OG 55/12) was adopted, and its amendments related primarily to: 1. clear definition of the competent of institutions in the adoption, and particularly in the of energy efficiency policy and the measures defined in this NEEAP; 2. alignment of regulations that are under the competence of various ministries, especially relating to the authorisation of expert personnel to conduct building energy audits, inspections of heating and air-conditioning systems in buildings, and energy certification of buildings; 3. adoption of legislation that will regulate and stimulate the energy services market, and 4. ensuring the of inspection supervision over the realisation of obligations in the field of energy efficiency, pursuant to Article 29, paragraph 2 of the Act on Energy End-Use Efficiency and other relevant regulations. Therefore, amendments to the Act on Energy End-Use Efficiency (Official Gazette 55/12) were adopted, which removed the observed ambiguities: 1. The Croatian Government will prescribe the procedures of implementing energy services in the public sector by virtue of a regulation, thereby ensuring that measures to improve energy efficiency in public sector buildings are implemented without the spending of budgetary funds. 2. The unnecessary barriers for energy service providers have been removed, and after the entry into force of these amendments, both natural and legal persons will be able to provide energy services or other measures to improve energy efficiency for the final user, pursuant to energy performance contracts. 3. The obligations of the Fund have been defined, which include the financing of measures defined in the National Action Plan and monitoring the achieved energy savings in projects that are beneficiaries of funds from the EPEEF. The EPEEF is responsible for cooperating with the line ministries in promoting energy efficiency measures. 4. The need to adopt an ordinance on a unified information system for energy efficiency has been eliminated, however, it has been clearly prescribed as to which data suppliers are required to submit to the ministry. Also, it has been established that the public sector must use the national energy management information system (EMIS) for all its buildings, entering all necessary data on energy and water consumption in buildings. The manner of assessing energy savings that are the result of the of measures to improve energy efficiency are established by an ordinance on the monitoring, measurement and verification of energy savings, to be issued by the minister. 5. A separate ordinance will define a unified methodology to conduct energy audits and the energy certification of buildings. Also, pursuant to the requirements of Directive 2010/31/EU, it will stipulate the obligation of independent controls of reports on energy audits and issued energy certificates. The competence for the issue of energy audits and energy certification will be fully under the ministry responsible for construction. 6. Considering the initiation of a programme for the energy revitalisation of public buildings, the Government of the Republic of Croatia will prescribed the procedures for implementing energy services in the public sector by virtue of a regulation, which will ensure that energy efficiency will be improved in the public sector without the spending of budgetary funds, while also stimulating the construction industry and energy services market. 7. Requirements for the eco-design of products will be expanded to products associated with energy, i.e. all those products which influence energy consumption in any way. This will ensure that products placed on the Croatian market will meet the requirements of eco-design, of which energy efficiency is certainly the most significant. With the adoption of the amendments to the Act, the areas of competence of ME, MCPP and the scope of the EPEEF have been regulated. The authorities of the Fund have been regulated as stipulated under the Act on the Environmental Protection and Energy Efficiency Fund. The obligation of the fund to finance the measures 175

176 defined in the National Action Plan, and the obligation to monitor and report on the achieved energy savings in fund beneficiaries have been determined. Furthermore, through the Regulation on the internal organisation of the Ministry of Construction and Physical Planning (Official Gazette 27/12), a new Directorate for energy efficiency in construction, strategic planning and international cooperation has been established, which carries out the normative, administrative and professional activities in implementing the energy efficiency policy in construction. The Directorate currently has a staff of 5, with a staff of 34 planned envisaged in the Regulation. The Directorate ensures the monitoring and analysis of the status in areas under the competence of the MCPP, prepares, plans and proposes strategy, measures and programmes for the purpose of improving the status in the area of energy efficiency in housing, housing construction, construction, physical and urban planning and urban development, and ensures the realisation of the appropriate measures and programmes, execution of laws and other regulations, and monitors and supervises their, gives its expert opinion and instructions relating to the application of regulations, cooperates in the drafting of regulations and coordinates the drafting and preparation of expert bases for the drafting of laws, regulations and standards pertaining to energy efficiency in areas of competence of the MCPP. It participates in the international cooperation of the Republic of Croatia relating to energy efficiency in areas of competence of the MCPP, and conducts tasks relating to the transposition of the European Union acquis communautaire in the area of energy efficiency into the legal system of the Republic of Croatia. It also conducts tasks relating to the participation of the Republic of Croatia in the work of the European Union bodies in areas of its competence. The Directorate for energy efficiency in construction, strategic planning and international cooperation consists of two sectors: the Sector for energy efficiency in housing, and the Sector for strategic planning, European Union programmes and international cooperation. Furthermore, through the Regulation on the internal organisation of the Ministry of the Economy (Official Gazette 28/12), the Directorate for industrial policy, energy and mining has been established, and within it are the Energy Sector and the Department for energy efficiency and new technologies. This Department proposes measures for the more efficient use of energy and the application of new technologies, primarily in the energy sector, industry sector and transport, organises promotional activities to improve energy efficiency, promotes the use of new ecological and economically justified technologies, cooperates with legal and natural persons, state and international bodies, institutions and organisations in the of all other energy efficiency projects and programmes. Within MENP in accordance with the the bylaw on internal organization of the Ministry of Environment and Nature ("Official Gazette", no. 27/12) the Department of the Environment and Sustainable Development is established, which in its scope of duties has environmental policy with renewable sources and energy efficiency. Therefore MENP participate in the formulation and of strategical, legislative and implementing acts in the field of energy efficiency and a role of institution for approving, implementing and monitoring the of all measures NEEAP that directly or indirectly relates to the protection of the environment. For stronger, more systematic and coordinated of energy efficiency measures in Croatia, it is necessary to strengthen the administrative capacities at the national level. The activities defined in the 1 st NEEAP were not implemented in full, in the planned manner and desired dynamics, and the main reason for this was the lack of institutional capacities. The administrative understaffing at ME continues to be a grave concern, as this then questions the timely and successful of this important part of the energy policy. Furthermore, energy efficiency is an exceptionally specific and multi-disciplinary area that rises above and beyond energy itself. For that purpose, the capacities at MCPP were strengthened with the formation of 176

177 the Directorate for energy efficiency in construction, strategic planning and international cooperation. With this, energy efficiency has been institutionalised and has been given the necessary political priority. However, comprehensive expert analyses performed during drafting of National program of energy efficiency for period of as well as 1 st National action plan of energy efficiency showed that it is crutial to establish a operational body which would, at the same time, coordinate all activities connected with of NEEAP that are implemented by other institutions and firms. Under the Act on the Centre for Monitoring Business Activities in the Energy Sector and Investments (Official Gazette 25/12) the Centre for Monitoring Business Activities in the Energy Sector and Investments (Center) was established; one of its roles is to provide expert support in the realisation of all strategic projects ( development and management investment projects of Public Private Partnerships) as well as of energy-efficiency programms. With regard to establishment of Centre, its function and activities, with these NEEAP, Centre is entrusted with following activities: of specific EE measures in conformity with the Efficient use of energy immediate consumption act (Energy reconstruction of public buildings programme) Coordination of of all other measures that are implemented by other institutions and firms Operational menaging of Energy management information system (EMIS) for public sector and System for management and verification of energy savings Reporting about of NEEAP and achieved savings for and on behalf of ME, in accordance with Efficient use of energy immediate consumption Act In other words Centre is entrusted with activities that would fall within the jurisdiction od Agency for energy efficiency, which will contribute to strengthening of the institutional framework for and monitoring of NEEAP. In this sense, on most measures in this NAPEnU, Centre is listed as a body whith which all other implementing institutions and companies must coordinate their activities (each measure in this document used the formulation "in coordination with the Center 'under' executive body '). In addition, all other institutions and firms undertaking activities and measures to improve energy efficiency defined in this NAPEnU shall report on these activities to Centre. In this way the Centre will become a central body that will hold information on all activities in the field of energy efficiency in Croatia and will have a database with the savings generated, which is a key tool for reporting and defining a new cycle of measures necessary to achieve the national goal of energy savings. In that sense, whith this NEEAP Center is provided with power to request information from all other institutions and companies necessary for the evaluation of realized energy savings. As the implementing and coordinating body, the Centre: 1. conducts activities that will achieve the objectives of energy policy in the area of energy efficiency and renewable energy, 2. develops and implements policies established by National energy efficiency program, energy efficiency and the National Action Plan for Energy Efficiency 3. develops and implements policies to encourage renewable energy sources as defined in the National Action Plan for Renewable Energy 4. prepares, implements and provides technical assistance in the development and of energy efficiency and renewable energy projects 5. prepares and implements projects for the withdrawal of funds from the European Union to increase energy efficiency and use of renewable energy sources 6. evaluates the impact of programs and measures for improvement of energy efficiency and use of renewable energy sources, 7. evaluates the impact of programs and measures to improve energy efficiency and use of renewable energy sources 177

178 8. prepares reports for the ministry in charge of energy affairs and the ministry responsible for construction on the of energy efficiency measures 9. acts as a central point for data collection, analysis and reporting of energy consumption in the public sector and water, maintains and improves the national information system for energy management in the public sector, 10. provides technical assistance for the establishment of an information system for monitoring energy consumption in all public sector buildings 11. provides technical assistance and cooperate with the ministry responsible for energy affairs and the ministry responsible for the construction industry in adopting laws and implementing regulations, programs and plans in the area of energy efficiency and renewable energy sources in the Republic of Croatia 12. works with companies and individuals, national and international bodies, institutions and organizations in the development and of projects and programs of energy efficiency and renewable energy sources, and ensures coordination of these activities on the Croatian territory 13. promotes and coordinates the activities of central government authorities, the Environmental Protection and Energy Efficiency Fund, the Agency for Transactions and Mediation in Real Estate, Energy Institute, other bodies involved in energy efficiency and renewable energy sources, the bodies of local (regional) self-government or legal persons with public authorities, and regional and local energy agencies in the area of energy efficiency and renewable energies that work in the local and / or local (regional) self-government in order to implement the plans and programs of energy efficiency and renewable energy 14. initiaties and conducs information campaigns to promotes energy efficiency and renewable energy sources 15. initiaties and conducs educational activities in the areas of energy efficiency and renewable energy sources 16. provides technical support and perform other consulting services in the design and of energy efficiency and renewable energy sources 17. cooperates on the launching and of joint projects with international organizations dealing with energy efficiency and renewable energy sources, particularly with organizations of the European Union, professional networks within the European Union, as well as with similar institutions in other countries Other institutions and companies also have a duty to implement certain measures under this NEEAP as specified by each measure. Especially the large scope of activities is assigned to the Agency for Transactions and Mediation in real estate. Jurisdiction of this agency only applies to buildings other than buildings (buildings in broad terms) for public use that are the responsibility of the Centre. The Agency is responsible for coordinating all their activities with the Centre. The EPEEF represents an exceptionally important financial support to the of energy efficiency policy in Croatia. Its primary function will be to secure co-financing of the of the NEEAP. Therefore, the EPEEF needs to fully align its programme of work and financial plans with this NEEAP and to direct its financial resources into target projects and programmes defined in the NEEAP. EPEEF s available funds are allocated pursuant to Low on the Environmental Protection and Energy Efficiency Fund. Cooperation between EPEEF and other government institutions for the of specific programs and projects from this NEEAP, are solved with the multilateral inter-institutional agreements in which Center is a coordinating body for the, reporting and monitoring of the effects of investment. In all measures from NEEAP that use resources from EPEEF, MENP together with the MoE is the body for approval, and monitoring in accordance with the regulations governing the use and monitoring the 178

179 proper use of funds and contractual rights and obligations, and other issues of importance to the allocation and use of EPEEF funds. With clear assignment of responsibilities and guidance of activities it will be possible to create much better cooperation and coordination of key institutions: ME, MCPP, other ministries, Agency, EIHP, EPEEF and other institutions and firms under management of Centre. The 2 nd NEEAP envisages the initiation and of complex programmes (such as measures of building renovation P.5, R.4, C.5 or industrial energy efficiency, measure I.1). Without adequate institutions that will coordinate and verify the results, it will not be possible to achieve the expected results. The Government of RC will appoint an implementing body for the and coordination of implementing measures of energy efficiency at the national level through improvements to the legislative and regulatory framework for energy efficiency. The Government will decide whether to assign these tasks to an existing institution, bearing in mind that the institution must have sufficient and appropriate capacities for, secured financing and be able to separate accounts and separately monitor the activities relating to the of energy efficiency policy. The implementing body must have a mandate for the coordination of all activities, and the obligation of monitoring an verifying the achieved energy savings. This body will be required, on behalf of ME, which bears this legal obligation, to establish a system of continual monitoring and assessment of energy savings from all energy efficiency activities as defined by the NEEAP and which are implemented in the Republic of Croatia, and to report on accomplishments annually. The activities of this body need to unite the tasks related to the ESD, EPBD and all other EU directives and requirements for energy efficiency, and which are currently divided up amongst various ministries and the implementing bodies listed here. Energy efficiency requires an integral approach, coordination and cooperation, as fragmented and individual activities will not achieve the desired goal. 179