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Energy Efficiency Program for Municipal-Level Housing Modernization

Learn about Ignalina Municipality's successful implementation of a housing modernization program using cohesion funds to improve energy efficiency in multi-apartment buildings.

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Energy Efficiency Program for Municipal-Level Housing Modernization

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  1. Experience from the local level Using Cohesion Funds for municipal-levelhousing modernization programme Bronis ROPĖ, MEP Zagreb, 6. ožujka 2015

  2. Ignalina Municipality One of 60 Lithuanian municipalities Located in the North-East Having EU external border Municipality of 18,000, - one town of 6,000, - one town of 1,700, - two villages of 900 people Zagreb, 6. ožujka 2015

  3. Problem: Low Energy Efficiency • Historical background: multi-apartment housing with low energy efficiency; • Ineffective usage of energy: twice the EU average, despite becoming 1.9 times more efficient since 1990; • Economic background: rapidly rising energy prices; • Political discourse: lack of functional nation-wide housing modernisation programme; • Structural challenges: financial inability to fund renovation, compensations for socially periled, lack of civic awareness, etc. Zelenakohezijskapolitika 2014 – 2020, Zagreb, 6. ožujka 2015

  4. Ignalina: Origin of the problem • 162 multi-apartment buildings; • 152 multi-apartment buildings managed by municipal enterprise; • Built in 1960’s-80’s – Low energy efficiency; • Energy consumption: from 83.47 up to 1195.95 kWh/m2 ; • Average annual energy consumption / threshold for modernisation: 140 kWh/m2; Termovisual picture of 1970-1980s multi-apartment housing Zelenakohezijskapolitika 2014 – 2020, Zagreb, 6. ožujka 2015

  5. Ignalina Energy Policy background Price of Heating = Production andmanagementcost + Consumers’ expenditure • Cutting the Price of production: • Municipal energy/Heating company: quality of supply while ensuring sustainable pricing and covering the costs; • 1998: introduction of Renewables : Municipal loans used to shift local central heating system from using imported heavy oil to local energy sources; • 2005: EU co-funded economiser: wintertime economy of 25%; • 2008: EU co-funded refurbishment of central heating systems: reducing heat loses to 10% down from 30%. • Municipal initiative to reduce consumers’ expenditure: Ignalinosenervizija Zelenakohezijskapolitika 2014 – 2020, Zagreb, 6. ožujka 2015

  6. Answer to Energy inefficiency: Ignalinos enervizija 1 Pilot group of 53 buildings chosen: • 75% of buildings - energy class E (average annual energy consumption 191 kWh/m2), • 25% of buildings –energyclassD (energy consumption ~150 kWh/m2); Goalsoftheprogramme: • Reduction of energy consumption by at least 40%, achieving at least C class of energy efficiency; • Increasing living comfortandfaceliftingurbanoutlook; • Decrease in energy expenditure of local inhabitants; • Ensure sustainable operation of municipal energy company; • Reduction of CO2 emissions. Zelenakohezijskapolitika 2014 – 2020, Zagreb, 6. ožujka 2015

  7. Answer to energy inefficiency: Ignalinos enervizija 2 Programme-funded a la carte measures for the multi-apartment housing: • Insulation of roofs, external walls, cellars; • Glass glazing for the balconies; • Replacement of windows and external doors; • Replacement / modernization of cold and hot water supply systems. • Refurbishment of rainwater, wastewater systems; • Refurbishment of electricity supply systems; • Refurbishment / installation of ventilation and recuperation systems. Renovated 1950’s house in Ignalina Zelenakohezijskapolitika 2014 – 2020, Zagreb, 6. ožujka 2015

  8. Financial mechanism • Total cost LTL 33.9 mln. (EUR 9.8 mln.); • Funded by: • Jessica Programme: 15%; • Climate Change programme: 25%; • National sources: 15% (+5% for preparation of documentation); • Residents: less than 45%; (defrayed payments for up to 25 years); • Managed centrally by municipal administration / household management enterprise; • Investment project paid by municipality (~30,000 EUR); • Technical project prepared by municipal administration / household management enterprise; • Energy efficiency certificates paid by municipal administration / household management enterprise; • Pre-funded by municipality (long-term credit); • Publicprocurementorganizedbymunicipality, resultinginsavingsoffundingfor 10 morehouses; Zelenakohezijskapolitika 2014 – 2020, Zagreb, 6. ožujka 2015

  9. Outcome 1 Thermovision: House before and after renovation • Improved energy efficiency: energy consumption reduced by 40-50% while maintaining minimum of 18 degrees C; • Increased comfort of living; • Reduced spending on energy; • Renovation funded without additional payment by the residents; • Improved outlook of the town; • 500 jobs created for a 3 years period; • Nearly 3 mln. EUR budgets revenues by collected taxes; • Nearly 3 mln. EUR received as additional revenue of the households. Zelenakohezijskapolitika 2014 – 2020, Zagreb, 6. ožujka 2015

  10. Outcome 2 • 2nd round of Ignalinos enervizija launched in 2013; • ‘Ignalinos enervizija’ was awarded as a ‘Project of the Year 2014’ by the Ministry of Environment; • Ignalina‘s municipal programme became the basis for national renovation programme; • The mayor got elected to the EP . Zelenakohezijskapolitika 2014 – 2020, Zagreb, 6. ožujka 2015

  11. Thank you for attention! bronis.rope@europarl.europa.eu Zelenakohezijskapolitika 2014 – 2020, Zagreb, 6. ožujka 2015

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