Fourth International Forum: Energy for Sustainable Development

CASE STUDY ON ENERGY EFFICIENCY FINANCING

- Croatia -

Željko Jurić, M.Sc. Energy Institute Hrvoje Požar

Georgia, Tbilisi, 17-19 September 2013

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Content 1. Introduction – Energy profile of Croatia

2. Main players in EE policy field: Who are they? What do they

do? Do their activities promote EE?

3. Does your country still need new legislation and policies or the main issue is enforcement?

4. International donor aid vs. national policy reforms: their respective roles

5. What are the main changes since last year? Your proposals for next steps?

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Introduction Dubrovnik

Population: 4 437 460 (Census 2001)

Energy data for 2011: • Primary energy production: 187.42 PJ • Total primary energy supply: 383.65 PJ • Primary energy self supply: 48.9%

Zadar

Zagreb

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Total primary energy supply (TPES)

Energy data for 2011: • TPES/capita: 2081 kgoe (41% lower than EU27)

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TPES intensity

Energy data for 2011: • TPES intensity: 129 kgoe/1000 USD2005PPP

• 1.2% above EU27

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TPES by sectors

67.6% in 2011

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Energy efficiency index

Households

Transport Total index

Industry

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Main players in EE policy field: Who are they? What do they do? Do their activities promote EE?

o The main ministries in charge of EE policy: – Ministry of Economy (MoE) is responsible for energy issues and has a dedicated division

for renewable energy and energy efficiency issues. MoE monitors energy management, initiates, supports, and monitors energy efficiency programmes and covers the development of the legislative framework encompassing energy efficiency.

– Ministry of Construction and Physical Planning (MoCPP) is the responsible entity in the field of energy performance of buildings, except for the part relating to inspection of boilers and air conditioning systems in buildings, for which the competence lies with MoE.

o Other involved institutions: – Croatian Energy Regulatory Agency (HERA) – Croatian Energy Market Operator (HROTE) – Environmental Protection and Energy Efficiency Fund – ESCOs (about 10 energy service companies) – Energy Institute Hrvoje Požar (EIHP) – Several regional energy agencies – Centre for Monitoring Business Activities in the Energy Sector and Investments (CEI)

o Activities of the main EE policy players promote implementation of EE projects.

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Does your country still need new legislation and policies or the main issue is enforcement?

o Since 2007, Croatia has undergone a long way in development of EE legislation.

– Result: creation of regulatory framework completely harmonized with EU legislation

o Existing legislation and policy in Croatia are helpful for promotion of EE investments, but there are problems in implementation.

o Main problems in implementation of EE investments in the building sector:

– Lack of well prepared projects – Problems with property rights and ownership issues with public buildings – Insufficient number of energy service providers (Problem: energy service providers must

ensure energy saving guarantees) – Financing of the project is on the owner/user of buildings through project financing

(Problem: project financing is not enough developed in Croatia) – Verification of energy savings is not solved

o Consequently, the main issue is enforcement!

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International donor aid vs. national policy reforms: their respective roles

o National policy reform is crucial in implementation of EE projects. – Policy reform includes: legislative framework, strategic goals, education and promotion of

EE, public awareness campaigns, supporting schemes, development of national EE industry and EE market etc.

o International donors could support development of EE market in Croatia, but without national policy reform the achievement of international donor aid will be limited.

o The main international donors in Croatia are: – Global Environment Facility (GEF) – United Nations Development Programme (UNDP) – European Bank for Reconstruction and Development (EBRD) – World Bank (WB) – 5 EU structural and cohesion funds (e.g. European Regional Development Fund or

Cohesion Fund) – European Commission (e.g. Intelligent Energy Europe Programme, IPA) – EuropeAid, USAID – Green funds: e.g. European Energy Efficiency Fund or Green for Growth Fund

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What are the main changes since last year? Your proposals for next steps

o Main changes in comparison with the last year: Croatia is in the European Union (from 1 July 2013)!

– The legislative framework is the same as in other EU countries → the general conditions for EE investments are better than last year

– Stable and predictable regulatory framework is necessary precondition for significant implementation of EE investments.

o Proposal for next steps: – Simplification of administrative procedures – Further education for project developers, investors, engineers/architects and decision

makers on a national/local level – Establishment of information centres for technical assistance and financial advice – Technical support of financial institutions by appropriate energy consulting copanies – Development of project financing

THANK YOU FOR YOUR ATTENTION!

Energy Institute Hrvoje Požar

Savska cesta 163, Zagreb, Croatia

M: + 385 91 6326 102

T: + 385 1 6326 107

F: + 385 1 6040 599

zjuric@eihp.hr

www.eihp.hr