METHODOLOGY FOR OPERATION OF THE ENERGY EFFICIENCY OBLIGATION SCHEMES, IN ACCORDANCE WITH ARTICLE 7, ARTICLE 20(6) AND

Transcription

1 METHODOLOGY FOR OPERATION OF THE ENERGY EFFICIENCY OBLIGATION SCHEMES, IN ACCORDANCE WITH ARTICLE 7, ARTICLE 20(6) AND ANNEX V OF DIRECTIVE 2012/27/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL OF 25 OCTOBER 2012 ON ENERGY EFFICIENCY EU PILOT CASE 5922/13/ENER Zagreb, January 2014

2 TABLE OF CONTENTS LIST OF ABBREVIATIONS i 1. INTRODUCTION 1 2. OPTIONS TO ACHIEVE TARGETS IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE 7 OF DIRECTIVE 2012/27/EU AND THE SELECTION OF A PREFERABLE OPTION 2 3. ENERGY SAVINGS TARGET CALCULATION METHODOLOGY 3 4. NATIONAL ENERGY SAVINGS TARGET FOR THE PERIOD 7 5. TARGETS, POLICY MEASURES AND ENERGY SAVINGS OBLIGATIONS BY SECTOR 9 6. ENERGY SAVINGS MONITORING, REPORTING AND VERIFICATION SYSTEM 28 REFERENCES 30 i

3 ABBREVIATIONS ATMIP BU CEI EU ETS EPEEF CERA CBRD HROTE Agency for Transactions and Mediation in Immovable Properties (in Croatian, APN) Bottom-up method Centre for Monitoring Business Activities in the Energy Sector and Investments European Union Emission Trading Scheme Environmental Protection and Energy Efficiency Fund (in Croatian, FZOEU) Croatian Energy Regulatory Agency (in Croatian, HERA) Croatian Bank for Reconstruction and Development (in Croatian, HBOR) Croatian Energy Market Operator LRSGUs Local and regional self-government units MoE MENP RES Ministry of Construction and Physical Planning (in Croatian, MGIPU) Ministry of Economy (in Croatian, MINGO) Ministry of Environment and Nature Protection (in Croatian, MZOIP) Renewable Energy Sources i

4 1. INTRODUCTION By acceding to full membership of the European Union on 1 July 2013, the Republic of Croatia, like all other Member States, assumed the obligation under Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC, to increase energy efficiency in the EU in order to achieve the objective of saving 20% of the Union's primary energy consumption by 2020, compared to projections (with regard to business-as-usual or baseline energy consumption scenario). Article 7 of Directive 2012/27/EU provides for the establishment of energy efficiency obligation schemes for the purpose of ensuring that energy distributors and/or retail energy sales companies that are designated as obligated parties operating in each Member State s territory achieve a cumulative end-use energy savings target by 31 December Article 7(9) allows Member States to opt for the so-called alternative approach to energy efficiency obligation schemes which is based on the energy efficiency policy measures being applied to the final energy consumption and requiring that the annual energy savings be equivalent to the savings which would have been achieved by applying energy efficiency obligation schemes. Taking into account the existing legislative, institutional, organisational and financial framework for the implementation of energy efficiency measures, the Republic of Croatia opts for the alternative approach, that is to say, it adopts the existing and stipulates additional energy efficiency policy measures which meet the criteria set out in Article 7(9) and (10). This does not rule out the possibility of combining the two approaches in the future if such an approach might prove cost-effective and institutionally feasible. 1

5 2. OPTIONS TO ACHIEVE TARGETS IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE 7 OF DIRECTIVE 2012/27/EU AND THE SELECTION OF A PREFERABLE OPTION Article 7 of Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC (hereinafter: the Directive) may be applied if one or a combination of the following policy measures has been adopted or established: - energy efficiency obligation schemes; - alternative policy measures. Having regard to this, it is necessary to follow certain steps: 1. determine the total amount of energy savings to be achieved and its distribution over the period of duration of the obligation; 2. decide whether energy efficiency obligation schemes or alternative policy measures, or both are to be used; 3. identify target sectors and individual measures to achieve the required amount of energy savings; 4. determine the method of calculating the energy savings resulting from individual measures; 5. ensure supervision, verification, tracking and transparency of the schemes or alternative policy measures; 6. report and publish results. The energy efficiency obligation scheme ensures that energy distributors and/or retail energy sales companies will achieve the cumulative end-use energy savings target by 31 December In the Republic of Croatia, the obligations of the distribution system and suppliers are stipulated in the Energy End-Use Efficiency Act (Official Gazette [Narodne novine, NN] Nos 152/08, 55/12, 101/13), and they relate to the supply of energy services, the provision of individual metering services and invoices with full information to their customers. Distributor/suppliers are under no obligation to achieve energy savings in use by their customers. Pursuant to the foregoing, in order to achieve the energy savings target under Article 7 of the Directive, the Republic of Croatia will employ alternative policy measures. 2

6 3. ENERGY SAVINGS TARGET CALCULATION METHODOLOGY The Directive stipulates that the cumulative end-use energy savings target must be at least equivalent to the new savings achieved each year between 1 January 2014 and 31 December 2020, equalling 1.5 % of the volume of annual energy sales to final customers of all energy distributors or all retail energy sales companies, averaged over the most recent three-year period prior to 1 January Data on the volume of the energy sold for transport use may be partially or fully excluded from this calculation. It follows that, to calculate the total amount of savings stipulated, the volume of annual energy sales to final customers of all energy distributors or all retail energy sales companies (end-use energy consumption) must first be determined, averaged over the most recent three-year period prior to 1 January 2013, i.e. for 2010, 2011 and For the purpose of determining the average end-use energy consumption, Republic of Croatia energy balance figures for 2010, 2011 and 2012 in accordance with IEA methodology (Table 3.1) are used. Table 3.1 End-use energy consumption (excerpt from the energy balance of the Republic of Croatia) PJ END-USE ENERGY CONSUMPTION INDUSTRY Iron and steel Non-ferrous metals Glass and non-metallic minerals Chemical Construction materials Paper Food Other TRANSPORT Rail Road Air international national Sea and river Public urban Non-specific GENERAL CONSUMPTION Households Services Agriculture Construction

7 The sales of energy, by volume, used for the transport sector are excluded from this calculation (Table 3.2). Table 3.2 Determining the amount of average end-use energy consumption PJ Average TOTAL END-USE ENERGY CONSUMPTION TRANSPORT TOTAL END-USE ENERGY CONSUMPTION - TRANSPORT In accordance with Article 7(1) of the Directive, the next step is to multiply the average end-use energy consumption (transport excluded), determined for 2010, 2011 and 2012 by 1.5% in order to calculate the annual amount to be saved. The total amount which must be achieved throughout the entire period is the sum of the following cumulative percentages: %; %; %; %; %; %; % (Table 3.3.). Article 7(2) and (3) of the Directive stipulate that there are options allowing for consideration of certain national circumstances which may lead to a reduction in the end-use energy savings to be achieved throughout the seven-year period. These options include: a) a calculation based on a lower annual savings rate; b) excluding totally or partially the energy used in the industry included in the EU ETS; c) including any energy savings made in energy transformation, transmission and distribution sectors; d) including any energy savings resulting from earlier measures implemented since the end of 2008 and which continue to have an impact in 2020 in the calculation. There are no limitations with regard to the selection or combination of the four options, apart from those listed in Article 7(3) of the Directive, which stipulates that all the selected options together shall not lead to a reduction of more than 25% of the amount of energy savings referred to in Article 7(1). The first two options, Article 7(2) (a) and (b), are related to the total amount of energy savings to be achieved (Tables 3.4 and 3.5). 4

8 Expertise underlying the drafting of the EC notification on the implementation of Article 7 of Directive 2012/27/EU EKONERG Table 3.3 Setting targets under Article 7(1) of the Directive Article 7(1) SAVINGS PER ANNUM (PJ) 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% TOTAL CUMULATIVE ANNUAL Table 3.4 Setting targets under Article 7(2)(a) of the Directive Article 7(2)(a) SAVINGS PER ANNUM (PJ) 1.0% 1.0% 1.25% 1.25% 1.5% 1.5% 1.5% TOTAL CUMULATIVE ANNUAL SAVINGS (PJ) Reduction in relation to Article 7(1) Cumulatively with the target of 1.5 % Cumulative with an increasing target (Article 7(2)(a) % 5

9 Expertise underlying the drafting of the EC notification on the implementation of Article 7 of Directive 2012/27/EU EKONERG Table 3.5 Setting targets under Article 7(2)(a) and 7(2)(b) of the Directive PJ Average TOTAL END-USE ENERGY CONSUMPTION TRANSPORT TOTAL END-USE ENERGY CONSUMPTION ETS installations TOTAL END-USE ENERGY CONSUMPTION - TRANSPORT - EU ETS Article 7(2)(a) + (b) SAVINGS PER ANNUM (PJ) 1.0% 1.0% 1.25% 1.25% 1.5% 1.5% 1.5% TOTAL: CUMULATIVE ANNUAL SAVINGS (PJ) Reduction in relation to Article 7(1) Cumulatively with the target of 1.5 % Cumulatively with an increasing target (Article 7 (2)(a) Cumulatively with an increasing target (Article 7(2)(a), without EU ETS installations (Article 7(2)(b) Maximum reduction allowed Exceeding the max. reduction of 25% TARGET

10 Expertise underlying the drafting of the EC notification on the implementation of Article 7 of Directive 2012/27/EU EKONERG 4. NATIONAL ENERGY SAVINGS TARGET FOR THE PERIOD In accordance with the methodology for calculating the energy savings targets, as described in the previous chapter, the national energy savings target for the period between 1 January 2014 and 31 December 2020 amounts to PJ annually, or a cumulative PJ (Tables 4.1 and 4.2). Table 4.1 Application of reduction factors Annual savings (PJ) Cumulative savings (PJ) Reduction in cumulative savings Energy savings under Article 7(1) of the Directive Applying Article 7(2)(a) % Applying Article 7(2)(a) and (b) % TARGET % 7

11 Expertise underlying the drafting of the EC notification on the implementation of Article 7 of Directive 2012/27/EU EKONERG Table 4.2 National energy savings target for the period TARGET SAVINGS PER ANNUM (PJ) 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% TOTAL: CUMULATIVE ANNUAL

12 Expertise underlying the drafting of the EC notification on the implementation of Article 7 of Directive 2012/27/EU EKONERG 5. TARGETS, POLICY MEASURES AND ENERGY SAVINGS OBLIGATIONS BY SECTOR This chapter presents the policy measures whose implementation is conducive to the achievement of the end-use energy savings targets by The policy measures cover the following end-use consumption sectors: the residential sector (households), the service sector and the industrial sector. Table 5.1 presents all the measures by end-use consumption sectors, with the estimated amount of annual savings and cumulative energy savings, taking into account the savings' lifetime. Table 5.1 Policy measures in the sectors of end-use energy consumption Measure Programme of incentives to improve outer envelopes of single-family houses Programme of incentives for heating system replacement Programme of incentives to use renewable energy sources (RES) Energy audits and energy certification of buildings Aid for the preparation of project documentation for building renovation Annual savings (PJ) TOTAL: PJ Integral multi-dwelling unit renovation incentives Individual thermal energy consumption metering system installation Increasing the number of nearly zero-energy buildings Energy renovation of public sector buildings programme Energy renovation of commercial non-residential buildings Introduction of efficient electric motor drives CO2 emissions fees Financial aid for energy-efficient vehicles Advanced regulation of traffic intersections equipped with intelligent traffic lights Introduction of a special environmental fee payment scheme for motor vehicles TOTAL: As shown in Table 5.1, the total savings achieved through alternative policy measures amount to PJ, exceeding the target value of PJ. The description of measures, including timeframes, end-use consumption targets and target groups, information on the implementation of measures, methods of monitoring the savings, assumptions applied and annual energy savings expected, are presented hereinafter in this chapter. 9

13 Measure Description Information on implementation Category Timeframe Aim / brief description Target end-use Target group Regional application List and description of energy saving actions substantiating the measure Implementing body Monitoring (supervisory) authority Method for monitoring / measuring the resulting savings Expected annual energy savings Programme of incentives to improve outer envelopes of single-family houses Financial instruments Start: 2014 End: 2020 The aim of this measure is to provide financial aid to natural persons investing in the improvement of building energy performance for: 1) thermal insulation of envelope elements (walls, roofs, basements), and 2) replacement of exterior frames, primarily windows. Energy consumption for space heating (reducing heating requirements) Family house owners (citizens) National The programme is implemented according to the activities described in Figure 5-4 and Box 5-1. The minimum requirement for the award of incentives is compliance with existing regulations with regard to the value of structural envelope components. The tendering process for the award of funds must give priority to and/or ensure a higher amount of co-financing for the projects that will achieve a better energy performance than that required by regulations. EPEEF LRSGU Regional energy agencies MoE The impacts of this measure are to be monitored by using the methods recommended in the Rules on the methodology for monitoring, measurement and verification of energy savings in the end-use consumption. The beneficiaries of incentives are required to submit the information on the area and the characteristics of thermal insulation retrofitting to LRSGUs. LRSGUs shall submit summary data to the MoE and the EPEEF TJ Energy savings Assumptions It is assumed that 100 family houses per county, or 2,000 houses in the entire territory of Croatia will participate in the programme on an annual basis. In order to estimate the actual savings, it is assumed that an average 100 m 2 of walls per house are to be retrofitted. This is based on a typical floor area of a family house of 140 m 2 (twice the average area of a housing unit, which is 71 m 2 ). The wall area is typically 70-80% of the floor area. Thermal insulation saves 84.3 kwh/m 2 of wall surface on average. The average cost of retrofitting thermal wall insulation, according to the available contractor data, is about HRK 350/m 2 of wall with the finishing work included. It is also assumed that an average 35 m 2 of window area is to be replaced. This will result in unit savings of kwh/m 2 of window area. The average cost of an energy-efficient window is HRK 1,500/m 2. To estimate the resulting savings, it is assumed that only one of the two measures will be implemented on each house, i.e. 50% of the houses will be retrofitted with new insulation and the other 50% with new windows. This would mean thermal insulation of around 100,000 m 2 of the external structure (wall) and 35,000 m 2 of windows per year. The programme is expected to be implemented at the same pace until the end of Overlaps, multiplication effect, synergy It is assumed that the multiplication effect will be achieved by promoting the programme and its results, with a certain number of people deciding to implement these measures even without incentives. 10

14 Measure Description Information on implementation Energy savings Category Timeframe Aim / brief description Target end-use Target group Regional application List and description of energy saving actions substantiating the measure Implementing body Monitoring (supervisory) authority Method for monitoring / measuring the resulting savings Expected annual energy savings Assumptions Overlaps, multiplication effect, synergy Programme of incentives for heating system replacement Financial instruments Start: 2014 End: 2020 The aim of this measure is to provide financial aid to natural persons investing in the replacement of existing heating systems by new, more energy-efficient ones. Energy consumption for space heating (heating system efficiency improvement) Family house owners (citizens) National The minimum requirement for the award of incentives is for the existing heating system, which uses electricity, heating oil, coal or gas, to be replaced by a new system relying on natural gas or liquefied petroleum gas and using a condensing boiler for heat generation. The tendering process for the award of funds must give priority to the households which already have a thermally insulated envelope. Also, priority should be given to the households with older existing heating systems, which are approaching the end of their lifespan. EPEEF LRSGU Regional energy agencies MoE The impacts of this measure are to be monitored by using the methods recommended in the Rules on the methodology for monitoring, measurement and verification of energy savings in the end-use consumption. Project designers and/or contractors are required to clearly present data on the area and characteristics of installed equipment, which are subsequently to be submitted to LRSGUs by beneficiaries. LRSGUs shall submit summary data to the MoE and the EPEEF TJ It is assumed that 100 family houses per county, or 2,000 houses in the entire territory of Croatia will participate in the programme on an annual basis. By replacing the existing with a new condensing boiler, the energy consumption will typically be reduced by 97.5 kwh/m 2 of building area, or by MWh for a typical area of 140 m 2. The programme is expected to be implemented at the same pace until the end of It is assumed that the multiplication effect will be achieved by promoting the programme and its results, with a certain number of people deciding to implement these measures even without incentives. 11

15 Measure Description Information on implementation Energy savings Category Timeframe Aim / brief description Target final consumption Target group Regional application List and description of energy saving actions substantiating the measure Implementing body Monitoring (supervisory) authority Method for monitoring / measuring the resulting savings Expected annual energy savings Assumptions Overlaps, multiplication effect, synergy Programme of incentives to use renewable energy sources (RES) Financial instruments Start: 2014 End: 2020 The aim of this measure is to provide financial aid to natural persons investing in the replacement of the existing heating and or DHW systems by new, more energy-efficient systems using renewable energy sources. Energy consumption for space heating and domestic hot water generation. Family house owners (citizens) National The minimum requirement for the award of incentives is for the existing heating and/or DHW system, which uses electricity, heating oil, coal or gas, to be replaced by a new system relying on renewable energy sources. The installation of solar thermal collector systems, pellet boiler systems, pyrolysis boiler systems and geothermal heat pumps is also encouraged. The tendering process for the award of funds must give priority to the households which already have a thermally insulated envelope. Also, priority should be given to the households with older existing heating and DHW systems, which are approaching the end of their lifespan. EPEEF LRSGU Regional energy agencies MoE The impacts of this measure are to be monitored by using the methods recommended in the Rules on the methodology for monitoring, measurement and verification of energy savings in the end-use consumption. Project designers and/or contractors are required to clearly present data on the area and characteristics of installed equipment, which are subsequently to be submitted to LRSGUs by beneficiaries. LRSGUs shall submit summary data to the MoE and the EPEEF TJ It is assumed that 100 family houses per county, or 2,000 houses in the entire territory of Croatia will participate in the programme on an annual basis. This programme is expected to reap most success in encouraging the installation of solar thermal collectors for domestic hot water generation. By installing a solar thermal system for domestic hot water generation, the annual energy consumption may be reduced by 675 kwh/m 2 of collector area. Assuming that the size of a typical system is 10 m 2, the energy savings resulting from this measure would amount to 6.75 MWh per house a year. The programme is expected to be implemented at the same pace until the end of It is assumed that the multiplication effect will be achieved by promoting the programme and its results, with a certain number of people deciding to implement these measures even without incentives. 12

16 Measure Description Category Timeframe Aim / brief description Target final consumption Target group Regional application Energy audits and energy certification of buildings Financial instruments Start: 2014 End: 2020 The aim of this measure is to increase the awareness among building users and transform the market towards increasingly more efficient buildings, i.e. to reveal the potential to improve the energy efficiency of individual buildings, enabling informed decision-making with regard to investments, which are ultimately decided on by tenants in cooperation with their building manager. All forms and systems of energy consumption in multi-dwelling units. Co-owners of residential buildings (citizens); companies managing multi-dwelling units (building managers). National Information on implementation List and description of energy saving actions substantiating the measure The EPEEF and the invite building managers to develop their plans for conducting energy audits for the buildings they manage. Building managers are responsible for a "door-to-door" promotion of the programme and obtaining tenants' consent for the energy audit and energy certification of building. The EPEEF initiates the programme of financing energy audits and energy certification of buildings. Up to 40% of the total cost is financed by the EPEEF. Building managers arrange for the energy audits and for certification to be conducted with authorised providers, and are reimbursed by the EPEEF on submitting reports and certificates to the competent EPEEF and the. Energy savings Implementing body Monitoring (supervisory) authority Method for monitoring / measuring the resulting savings Expected annual energy savings Assumptions Overlaps, multiplication effect, synergy EPEEF Building managers MoE The BU method of monitoring the impact of energy audits is presented in the Rules on the methodology for monitoring, measurement and verification of energy savings in the end-use consumption. The method needs to be validated and/or improved on the basis of actual data on the independently implemented measures following the energy audit to be submitted by building managers, which is the reason for an introduction of the obligation to submit reports following the energy audit (see Step 5 in the description of activities). The BU method specified in the Rules applies to industry and service sector buildings only, and can not be implemented on residential buildings in the same manner. n/a It is assumed that energy audits will be conducted and energy certificates issued for 500 buildings a year. This measure is a necessary first step in raising co-owners' awareness of the condition of buildings, and of the possibilities for improving their energy performance. This measure is expected to encourage co-owners to decide to invest in new energy renovation measures, proposed by the energy audits. 13

17 Measure Description Information on implementation Energy savings Category Timeframe Aim / brief description Target end-use Target group Regional application List and description of energy saving actions substantiating the measure Implementing body Monitoring (supervisory) authority Method for monitoring / measuring the resulting savings Expected annual energy savings Assumptions Overlaps, multiplication effect, synergy Aid for the preparation of project documentation for building renovation Financial instruments Start: 2014 End: 2020 Following energy auditing, the buildings which decide to undertake certain renovation measures need to have project documentation prepared, in accordance with the legislation in the field of construction. The preparation of the main project design can be a significant financial burden on the building, so this measure is aimed at eliminating this barrier to project implementation. All energy consumption forms and systems in multi-dwelling units. Co-owners of residential buildings (citizens); companies managing multi-dwelling units (building managers). National The EPEEF issues a call for co-financing the preparation of the project documentation for building renovation. Subsidies are awarded to building managers pursuant to a contract with the person preparing the project documentation, who must be an authorised project designer. The requirement for obtaining financial aid is consent by a simple majority of co-owners for the implementation of energy renovation measures to be elaborated in the project and adoption of the Annual real estate management plan, clearly outlining a plan of implementation of such energy renovation measures. EPEEF Building managers MoE This measure in itself generates no savings, but it is a prerequisite for the implementation of technical building renovation measures. n/a It is assumed that project documentation will be prepared for 500 buildings a year. This measure is considered to be an additional encouragement decision-making on the implementation of technical building renovation measures, identified through energy audits. 14

18 Measure Description Information on implementation Energy savings Category Timeframe Aim / brief description Target final consumption Target group Regional application List and description of energy saving actions substantiating the measure Implementing body Monitoring (supervisory) authority Method for monitoring / measuring the resulting savings Expected annual energy savings Assumptions Overlaps, multiplication effect, synergy Integral multi-dwelling unit renovation incentives Financial instruments Start: 2014 End: 2020 This measure envisages developing and launching a systematic programme of multidwelling unit renovation. The plan focuses primarily on the multi-dwelling units constructed prior to 1987 and their renovation for the purpose of compliance with a lowenergy standard, consistent with energy efficiency rating B, A or A +. The existence of project documentation, in accordance with the legislation in the field of construction is a prerequisite for participation in the co-financing programme. Thermal energy consumption in existing multi-dwelling units constructed prior to Building renovation involves, as a minimum, thermal insulation of the building envelope and, in accordance with the recommendations of the energy audit, other measures aimed at reducing thermal energy consumption in the building. Measures which aim at reducing the energy consumption for non-heating purposes may also be included in the integral renovation project, in accordance with recommendations of the energy audit. Co-owners of residential buildings (citizens); companies managing multi-dwelling units (building managers). National The EPEEF and the invite building managers to develop their plans for the renovation of buildings they manage based on the results of previously conducted energy audits and the project documentation which has been prepared. The EPEEF establishes a subsidy scheme for up to 50% of the overall investment or a maximum of HRK 500/m 2. Subsidy award criteria should be elaborated jointly by the and the EPEEF and should be based, as a minimum, on the size of possible savings, the comprehensiveness of measures and the initial condition of the building. EPEEF Building managers MoE Monitoring the impacts of these measures should be secured by using BU methods, presented in the Rules on the methodology for monitoring, measurement and verification of energy savings in the end-use consumption. Managers are required to submit summary data to the EPEEF. Input data for each individual building must be determined, with the reference to be used in exceptional cases only TJ According to the Central Bureau of Statistics, the 2001 census and data on the total number of building permits issued and buildings constructed in the period between 2001 and 2010, there was a total of million m 2 of useful residential building are on record in the Republic of Croatia in According to statistical data available, a third of the residential building stock in Croatia is assumed to consist of multi-dwelling units, which means that this measure applies to approximately 50 million m 2. It is assumed that energy renovation of buildings will focus primarily on the buildings constructed prior to Energy savings are calculated on the assumption that 1% of the multi-dwelling unit area, or 500,000 m 2, will be renovated each year and that an integral renovation of buildings will reduce the energy consumption by kwh/m 2, in accordance with the Rules on the methodology for monitoring, measurement and verification of energy savings in the end-use consumption. In order to achieve the multiplication effect and raise the interest among apartment owners to renovate their buildings, it is necessary to regularly present completed projects and the benefits they bring tenants to the public. The measure is closely related to the Energy audits and energy certification of buildings measure, which encourages conducting energy audits in order to reveal the potential of each building. 15

19 Measure Description Category Timeframe Aim / brief description Individual thermal energy consumption metering system installation Financial instruments Start: 2014 End: 2020 The current practice of energy consumption accounting and collection in buildings which are connected to district heating systems does not stimulate energy-efficient behaviour in the use of thermal energy among end-users, or encourage them to implement energy saving measures in their homes as the effect of such efforts is not ultimately reflected in their energy bills. The introduction of individual metering is therefore a prerequisite for any future activities aimed at increasing the energy efficiency of such buildings. In addition, under the proposed new Thermal Energy Market Act, co-owner will be obligated to install an individual metering system, which will certainly pose a financial burden for them. Financial aid will serve to support the implementation of this legal obligation. Target end-use Target group Regional application Household consumption of thermal energy from district heating systems. Co-owners of residential buildings (citizens) connected to district heating systems; companies managing multi-dwelling units (building managers), LRSGUs National Information on implementation List and description of energy saving actions substantiating the measure The MoE invites thermal energy suppliers to draft their plans for the installation of individual metering systems in cooperation with building managers. The EPEEF establishes a co-financing programme for the installation of individual metering systems in buildings connected to district heating systems for up to 40% of the total investment costs. The funds are awarded through the LRSGUs in the same manner as for family houses, as presented in Figure 5-5 and in Box 5-3. Co-financing will be awarded to building managers, with any difference [to the investment cost] to be covered by co-owners from the building's reserve fund. Suppliers are required to submit energy consumption data to the MoE and the EPEEF prior to and after implementing the measure. Implementing body Monitoring (supervisory) authority Method for monitoring / measuring the resulting savings Expected annual energy savings Thermal energy distributors and suppliers / building managers EPEEF MoE The effects of this measure will be monitored on the basis of distributor data on the enduser energy consumption prior to and following the implementation of the measure, and corrected against the climatic conditions (heating degree days). Distributors / suppliers are required to submit such data to the MoE and the EPEEF TJ Energy savings Assumptions Overlaps, multiplication effect, synergy Estimates are based on an attempted goal to install, where feasible, an individual thermal energy consumption metering system to every end-user by the end of In 2010, there were a total of 154,480 end-users of thermal energy in Croatia, and a conservative estimate suggests that at least half of those (about 75,000) meet technical requirements for the installation of individual metering systems. This would mean that individual metering would be introduced to 25,000 households a year by The measure is a prerequisite for the implementation of other energy efficiency measures in the buildings which are connected to district heating systems, as this is the only way in which the effects of reduced energy consumption can be reflected on the energy bills. It is assumed, therefore, that after this measure has been implemented on a larger scale, other energy efficiency measures (e.g. replacement of windows) may be implemented in the buildings connected to district heating systems. 16

20 Measure Description Information on implementation Energy savings Category Timeframe Aim / brief description Target final consumption Target group Regional application List and description of energy saving actions substantiating the measure Implementing body Monitoring (supervisory) authority Method for monitoring / measuring the resulting savings Expected annual energy savings Assumptions Energy renovation of public sector buildings programme Regulations; financial instruments Start: 2014 End: 2020 The program promotes a comprehensive renovation of buildings, so it includes alterations to the building envelope, thermo-technical and electrical systems and water supply system interventions; for that purpose, it will use private capital investments on public buildings, at no additional cost for the government with EPEEF co-financing. Public sector buildings Buildings owned by LRSGUs (cities, municipalities, counties) or the central government budget beneficiaries (ministries, institutions, institutes, academies, offices), extra-budgetary funds, buildings owned by public companies. National - energy audits / project tasks / certificates - public procurement procedure publication - validation of project design for the energy renovation measures - professional supervision of energy renovation works - promotion and education ATMIP EPEEF, CBRD, LRSGU The effects of this measure will be monitored by using the recommended European Commission BU method to encourage buildings with better energy performance than those prescribed TJ ( ) TJ ( ) TJ ( ) According to the UNDP data, there were 9.58 million square meters of useful public building area on record in the Republic of Croatia in Of this, 43.9% was heated useful area. It is assumed that the energy renovation of buildings will focus primarily on the buildings constructed prior to 1987, with the average thermal energy consumption for heating purposes of kwh/m 2. The calculation includes the assumption that 5% of the public building area, or around 479,000 m 2 undergoes renovation each year, and that the specific annual thermal energy consumption for heating will decrease from an average kwh/m 2 to an average 45 kwh/m 2 by 2016, and to 15 kwh/m 2 in 2020 with the heating system efficiency of Overlaps, multiplication effect, synergy This measure complements the Energy audits and energy certification of buildings measure, which provides information on energy consumption to potential end-users, channelling their choice towards buildings with reduced energy consumption and associated costs. Additionally, it also complements the measures aimed at the energy renovation of buildings although they do not overlap. In order to achieve the multiplication effect and raise investor interest in the construction of nearly zero-energy buildings, it is necessary to regularly present completed projects and the benefits they bring their owners to the public. 17

21 Measure Description Category Timeframe Aim / brief description Energy renovation of commercial non-residential buildings Financial instruments Start: 2012 End: 2020 The measure envisages developing a detailed action plan of renovation of existing nonresidential buildings in commercial use by 2016 (2020) and the implementation of that plan. The plan focuses the attention primarily on the commercial segment of buildings constructed prior to 1987, and on their renovation for the purpose of compliance with a lowenergy standard consistent with energy efficiency rating of B, A or A+. The measure envisages the preparation of energy certificates for public buildings, both prior to and following their renovation. Information on implementation Energy savings Target end-use Target group Regional application List and description of energy saving actions substantiating the measure Implementing body Monitoring (supervisory) authority Method for monitoring / measuring the resulting savings Expected energy savings in 2016 Expected energy savings in 2020 Assumptions Overlaps, multiplication effect, synergy Existing (privately owned) non-residential buildings in commercial use Owners of non-residential buildings in commercial use National Create a multi-year action plan of renovation of non-residential buildings by 2016 (2020). Encourage commercial banks to open new credit lines. Plan implementation. The execution of the plan should be monitored on an annual basis in terms of the use of funds and effected reductions in energy consumption and CO2 emissions. CBRD, Commercial banks CEI The effects of this measure will be monitored by using recommended European Commission BU methods. Input data need to be determined for each individual building PJ 2.72 PJ According to the Central Bureau of Statistics, the 2001 census and data on the total number of building permits issued and buildings constructed in the period between 2001 and 2010, there was a total of million square meters of useful commercial non-residential building are on record in the Republic of Croatia in Of this, 43.90% was heated useful area. It is assumed that energy renovation of buildings will focus primarily on the buildings constructed prior to 1987, with an average thermal energy consumption for heating purposes of kwh/m 2. Assumption: 3% of commercial non-residential buildings to be renovated annually. In order to achieve the multiplication effect and raise the interest among commercial building owners in renovating their buildings, it is necessary to regularly present completed projects and the benefits they bring their owners to the public. Energy audits and energy certification of buildings are also envisaged under the measure. 18

22 Measure Description Information on implementation Energy savings Category Timeframe Aim / brief description Target final consumption Target group Regional application List and description of energy saving actions substantiating the measure Implementing body Monitoring (supervisory) authority Method for monitoring / measuring the resulting savings Expected energy savings in 2016 Expected energy savings in 2020 Assumptions Increasing the number of nearly zero-energy buildings Regulations; financial instruments Start: 2012 End: 2020 The segment of public purpose buildings must take the leading role in the area of energy efficiency improvement, and set ambitious targets for public purpose buildings. The public sector should stimulate the energy renovation to a nearly zero-energy standard. New and existing buildings being reconstructed Construction participants and owners of buildings being reconstructed National Prepare a national plan to increase the number of nearly zero-energy buildings and develop a system to encourage construction participants to build new buildings of better energy characteristics than those required by regulations, i.e. buildings to be constructed to a nearly zero-energy standard. EPEEF CEI The effects of this measure will be monitored by using the recommended European Commission BU method to encourage buildings with better energy performance than those prescribed. households: PJ services (public and commercial): PJ households: PJ services (public and commercial): PJ In view of the obligation to achieve the new nearly zero-energy buildings target in 2020 (2018 in case of public buildings), it is assumed that regulations stipulating progressively more stringent requirements on the energy performance of buildings will be adopted by 2016 and 2020 to achieve nearly zero-energy building standards in 2018 and 2020, respectively. The savings target was set on the assumption that as much as 10 per cent of the new buildings will be constructed with the thermal energy consumption for heating purposes of less than 15 kwh/m 2 as early as Overlaps, multiplication effect, synergy This measure complements the Energy audits and energy certification of buildings measure, which provides information on energy consumption to potential end-users, channelling their choice towards buildings with reduced energy consumption and associated costs. Additionally, it also complements the measures aimed at the energy renovation of buildings although they do not overlap. In order to achieve the multiplication effect and raise investor interest in the construction of nearly zero-energy buildings, it is necessary to regularly present completed projects and the benefits they bring their owners to the public. Mechanisms of financial incentives for this type of construction also need to be developed. 19

23 Measure Description Category Timeframe Aim / brief description Introduction of energy-efficient electric motor drives Financial instrument; regulations Start: 2011 End: 2020 The largest part of energy consumption in the industry - up to 90%, is accounted for by electric motor drives. There is a high savings potential in this area, but no systematic measures or programmes have been initiated. The introduction of efficient electric motor drives is related to the installation of high-efficiency electric motors and the introduction of variable-speed drives (VSD) based on the frequency and/or amplitude where applicable, as in the processes with continuous alterations of the flow of process material. Depending on the grade of engine power, this measure can yield technical energy savings of more than 16%, and economic savings of more than 10%. Reducing the installed power would have a positive effect on the stability of the power system. Information on implementation Target end-use Target group Regional application List and description of energy saving actions substantiating the measure Implementing body Monitoring (supervisory) authority Method for monitoring / measuring the resulting savings Expected energy savings in 2016 Expected energy savings in 2020 Electricity consumption in industrial plants Industrial plants National The development of standard energy audits used for auditing economic energy consumption in electric motor drives in industrial plants, while assessing the profitability of upgrades; a simple methodology applicable to virtually all industrial plants. Establishing favourable financing models, while developing guarantee mechanisms acceptable to banks. EIHP HEP ESCOs MoE, MENP The methodology is defined by the International Performance Measurement and Verification Protocol (IPMVP), which sets standard procedures for determining the efficiency and resulting cost savings PJ 1.02 PJ Energy savings Assumptions Overlaps, multiplication effect, synergy Pumps, fans, conveyors and other electric motors to which the said measures may be applied are assumed to account for up to 90% of electricity consumption in the industry. Economic savings are smaller than technical ones, but large enough to be economically feasible. Companies need to be encouraged to opt for comprehensive electric drive replacement and upgrade programmes, instead of intervening in individual cases. Developed standard energy audits provide an assessment of the purposefulness and potential of applying this measure to facilitate financing, under the assumption that financial models have already been developed. A considerable portion of older engaged electric motor drives is oversized - by implementing this measure, the installed power and related costs would be reduced to avoid surges in network load. 20

24 Measure Description Information on implementation Energy savings Category Timeframe Aim / brief description Target end-use Target group Regional application List and description of energy saving actions substantiating the measure Implementing body Monitoring (supervisory) authority Method for monitoring / measuring the resulting savings Expected energy savings in 2016 Expected energy savings in 2020 Assumptions Overlaps, multiplication effect, synergy CO2 emissions fee for large emitters, except those involved in the system of greenhouse gas emission allowance trading scheme Financial instrument; regulations Start: 2007 End: 2020 The Republic of Croatia introduced a CO2 emissions fee in A Government Regulation (Official Gazette 73/07) stipulates that the fee is to be paid by all the polluters listed in the Environmental Emission Register (EER). Fee revenues (EUR 10 to 20 million expected annually) will be managed by the EPEEF, which will channel the funds into cofinancing the activities aimed at improving the energy efficiency, especially in the industry. As of 1 January 2013, a total of 73 plants involved in the greenhouse gas emission allowance trading scheme, involving thermal power plants above 20 MW, refineries, coke ovens, as well as metal, cement, paper, ceramic, and glass industry, the production of ammonia, nitric acid etc., will be exempt from paying the CO2 emissions fee. Use of all types of energy and fuels in industrial processes Industrial plants National The EPEEF should comply with this measure and invest a significant portion of the funds collected for emissions fees in co-financing energy efficiency projects in the industry. The EPEEF should continue evaluating investments and emissions reduction programmes by the entities subject to the CO2 emissions fee. In accordance with the abovementioned Regulation, the EPEEF conducts supervision of the implementation of the CO2 emissions reduction programme. An EPEEF department responsible for finances and its Expert Commission responsible for evaluating investments and CO2 emissions reduction programmes received, are required to jointly provide financial and technical data to an EPEEF's organisational unit performing the agency activity of the energy efficiency implementing body for the purpose of monitoring the reduction of energy consumption with the aim of proving the energy savings resulting from the implementation of this measure. EPEEF MoE, MENP The effect was evaluated for 23 projects co-financed by the EPEEF. The evaluation included measured savings data based on energy consumption reports in a plant or a part of a plant prior to and following the implementation of energy efficiency measures. Indirect financing by reducing the amount of CO2 emissions fee was not stated as an energy efficiency measure in EPEEF reports. In order to monitor the energy consumption reduction for the purpose of proving the energy savings resulting from the implementation of this measure, the MoE in cooperation with the MENP will develop a methodology of measuring and verifying energy savings through the said CO2 emissions reduction programmes PJ 2.00 PJ This measure is a combination of a voluntary approach, based on reducing the CO2 emission fee payments and using the funds collected via this fee to co-finance projects in the industry. In view of past experiences and large potential savings, the energy savings target to be achieved by 2016 is set as high as 1 PJ. Given the nature of the measures in the industry and their relatively long lifespan, all savings are assumed to be "alive" in 2016 and / 21