Energy efficiency projects in Latvian Environmental Investment Fund. Latvian Environmental Investment Fund 2017

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1 Energy efficiency projects in Latvian Environmental Investment Fund Latvian Environmental Investment Fund

2 Latvian Environmental Investment Fund (LEIF) LEIF was established by the Ministry of Environment in 1997 and has more than 20 years of experience in implementation of environmentally friendly projects. The Mission of the Fund is to reduce environmental pollution, promoting the implementation of environmental protection projects and also to increase the capacity of municipalities and commercial organizations in preparation and carrying out of qualitative and effective projects from their idea to realization. Supervision of implementation of Climate change financial instrument (CCFI) co-financed projects to promote effective and transparent use of resources provided by CCFI (200 euros million ) Supervision of implementation of Emission quotas auctioning iinstruments (EQAI) cofinanced projects - to promote effective and transparent use of resources provided by EQAI (20 million euros per year) ESCO services for municipal companies Cross-border cooperation in EU programs

3 Climate change financial instrument (CCFI) Aim of CCFI is to prevent global climate change, adaptation to the effects of climate change and contribute the reduction of greenhouse gas emissions (for example, implementing activities to improve the energy performance of buildings in both public and private sectors, the development and implementation of technologies that use renewable energy resources, as well as the implementation of the integrated solutions to reduce greenhouse gas emissions) The financing of the Tenders is formed by the Proceeds from the Assigned Amount Units (AAU) Purchase Agreements which are made within the international emissions trading under the Kyoto Protocol Latvian Environmental Investment Fund provides supervision of implementation and post-implementation monitoring of projects co-financed by CCFI National Implementing Agency (CCFI co-financing 200 million EUR)

4 Legal basis (I) Law on Latvia s participation in Kyoto flexible mechanisms: Authorization to the Cabinet of Ministers to make decisions on each sale of AAUs, including the price and specific conditions Authorization to the Minister of Environmental Protection and Regional Development to sign the AAU Purchase Agreement after the approval of the Cabinet of Ministers is received Authorization to the Ministry of Environmental Protection and Regional Development and Ministry of Finance to prepare the sale of AAUs, including Participation in negotiations Drafting of an AAU Purchase Agreement Cabinet of Ministers regulation on implementation of Kyoto protocol mechanisms projects Cabinet of Ministers regulation on implementation of each specific tender

5 Legal basis (II) Principles for using the revenues from the sale of AAUs, including a clear provision stating that all income from the sale of AAUs shall be earmarked for greening projects Special budgetary arrangements: Money from the sale of AAUs is transferred to income budgetary account in State Treasury Disbursements are organized under the budget programme Climate change financial instrument In annual budget the financing for the Climate Change financial instrument is ensured in amount of received and unused proceeds fromaausalesin previous years (carry-over provision)

6 CCFI project tenders (I) No. Title of the Tender Allocated CCFI Financing 1 KPFI-1 Increase of Energy Efficiency in Municipal Buildings KPFI-2 Development of Technologies Reducing Greenhouse Gas Emissions KPFI-3 Increase of Energy Performance in Higher Education Establishment Buildings KPFI-4 Technology Conversion from Fossil to Renewable Energy Sources KPFI-5 Complex Solutions for Greenhouse Gas Emission Reduction in State and Municipal Vocational Education Establishment Buildings KPFI-6 Complex Solutions for Greenhouse Gas Emission Reduction in Manufacturing Buildings KPFI-7 Complex Solutions for Greenhouse Gas Emission Reduction in Municipal Buildings KPFI-8 Raising of Public Awareness Regarding the Importance and Possibilities of Greenhouse Gas Emission Reduction

7 CCFI project tenders (II) No. Title of the Tender Allocated CCFI Financing 1 KPFI-9 Use of Renewable Energy Resources in Transport Sector 0.00 KPFI-10 Low Energy Consumption Buildings KPFI-11 Use of Renewable Energy Resources in Household Sector KPFI-12 Use of Renewable Energy Resources for Reduction of Greenhouse Gas Emission KPFI-13 Reduction of Greenhouse Gas Emission in the Lighting Infrastructure of Public Territories of Municipalities KPFI-14 Development of Technologies Reducing Greenhouse Gas Emissions and Implementation of Pilot Projects KPFI-15 Complex Solutions for Greenhouse Gas Emission Reduction KPFI-16 Reduction of Greenhouse Gas Emissions in the transport sector support for introduction of electrical vehicles and their charging infrastructure Totals:

8 Emission quota auctioning instrument - Reduction of Greenhouse Gas Emissions in nationally protected architectural monuments ( ; ~ Eur) - Reduction of Greenhouse Gas Emissions - Low energy buildings ( ; ~ Eur) Planned tenders: - Reduction of Greenhouse Gas Emissions using Urban Technologies - Greenhouse Gas Emission reduction initiatives 8

9 Tender Low energy buildings Objective: reduction of CO 2 emissions, by performing construction of low energy consumption buildings, as well as reconstruction or simplified renovation of existing buildings. Tender Call was announced- January 20, Project implementation period - November 1, 2012 (November 1, 2013). the heat consumption for space heating not exceeding 35 kwh/m2 per year. Support intensity: - up to 80% for direct or indirect administrative institutions and municipalities; - up to 65% for micro and small enterprises; - up to 55% for medium-sized enterprises. 9

10 Projects Submission of project applications 82 The requested CCFI funding EUR Available CCFI funding EUR Rejected project applications after administrative assessment 12 Submitted corresponding applications 70 Rejected due to lack of funding 39 Approved projects 31 Signed contracts 28 Projects which realisation has been stopped 14 Implemented projects 14 10

11 Planned energy efficiency results 11

12

13 Photo: Ansis Starks

14

15 Photo: Ansis Starks KRArhitektūra

16 Oldhouse Slitere Photo: Ansis Starks

17 Foto: Ansis Starks First certificated Passive House in Latvia Architect Ervins Krauklis, certification Institution Herz & Lang GmbH. Annual heating demand 15 kwh/m2, heating system: fireplace in combination with solar thermal collectors and ground source heat pump.

18 Complex Solutions for Greenhouse Gas Emission Reduction in State and Municipal Vocational Education Establishment Buildings Before After CCFI co-financing EUR Reduction of CO 2 emissions t/per year Dormitory of Vecbebru vocational secondary school

19 Project implementation supervision and monitoring Projects' Progress reports 1 in quarter Final reports & Final payment requests On-site inspections: - prior to the entering into the project contracts - during implementation period of Project Seminars Guidelines for the project beneficiaries Data collecting and reports Customers satisfaction survey

20 Increase of project costs Risks of implementation result of Public procurement procedure inaccurate estimated costs weak quality of technical documentation Problems with supervision of construction process and construction work quality Procurement procedure irregularity Lack of experience, competence, poor planning, bad management

21 ESCO 21

22 Cross-border cooperation in EU programs: IEE - Efficient Energy Building Roadmap for Latvia Build Up Skills and IEE - BUILD UP SKILLS FORCE IEE - Passive House Regions with Renewable Energies - PassREg IEE - Adding to SEAP more participants, more content across Europe - SEAP PLUS IEE - Procurement in Municipalities focusing on Energy Efficient Solutions - PRIMES Interreg IVA - Commercial mussel farming, processing and end-use in the Baltic Sea Region Interreg BSR - Bioenergy Promotion 2 - from strategies to activities Interreg BSR Using innovation procurement and capacity building to promote Circular Economy Circular PP FP7 - Monitoring and management of flowing rain water in Baltic Sea catchment areas - BalticFlows Horizont Thermal Energy Resource Modelling and Optimisation System THERMOS 22

23 Thank you for your attention! Gertrudes Str. 12-2, Riga, LV-1010, Latvia Phone:

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