BUILDING RENOVATION IN LITHUANIA – A MEASURE FOR ENERGY EFFICIENCY, THE REDUCTION OF GHG EMISSIONS AND AIR POLLUTION

Mindaugas Gudas Lithuanian Environmental Protection Agency 2015-12-16

53rd session of the Working Group on Strategies and Reviews, CLRTAP, December 15-17 2015, Geneva, Switzerland

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RESIDENTIAL ENERGY EFFICIENCY 3

Lithuania key statistics: • Population – approx. 3 mln. • 66% of population lives in multi-apartment buildings built before 1993 (> 800,000 apartments in > 38,000 multi-apartment buildings and) • 97% privately owned, • 65% of buildings supplied by district heating system Problems: - Old construction standards and effects of little maintenance – inefficient heating systems and engineering equipment – poor quality windows, roofs, seals between panels – big energy losses  Many buildings in rather poor condition, many of them lack proper management

Lithuanian heat consumption in buildings in the international context

Housing consumes 33 % of final energy, but it has the largest energy saving potential – approx. by 48 % 3

Framework for Action • The importance of increased energy efficiency recognized early- first attempts since 1996 • However, the real momentum took place since 2013 Main driving documents: • The National Energy (Energy Independence) Strategy 2020–2050 – by energy efficiency and other measures aims by 2020 at 5 % reduction of GHG emissions and reduction of annual expenditures on imported energy corresponding to 3-4 % of national GDP • Lithuanian Housing Strategy – advocates for housing modernization, including rational use of energy resources 4

Major Housing Modernization Programs in Lithuania 1st period € 20.3 million

2nd period € 94.1 million

700 buildings renovated|

1996-2000 Energy Efficiency/Housi ng Pilot Project (EEHPP) WB Loan + 30% grant

3rd period € 227 million

375 buildings renovated|

611 buildings renovated, >3000 pending

2005-2010 Multi-apartment Buildings Renovation Program Lithuania n Housing Strategy since 2004

2001-2004 Post EEHPP mechanism

CB Loans + 15‐50% grant

EU SF Soft loan (IR=3%) + 15%‐40% grant

2010-present Housing Modernization Program through JESSICA

MULTI-APARTMENT BUILDINGS RENOVATION (MODERNISATION) PROGRAMME The Government of the Republic of Lithuania approved multi-apartment buildings renovation (modernisation) Programme in 2004 The Programme aimed to: -

by 2020 increase energy efficiency in no less than 4000 multi-apartment buildings

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ensure that cumulative annual heating costs and return on investment cost after the renovation do not exceed the heating costs which was before renovation 6

DISTRIBUTION OF COSTS TO CONSUMERS BEFORE AND AFTER RENOVATION

PROGRAMME MODELS There are two models for housing modernisation in Lithuania 1. Home owners prepare investment projects, take loans and implement modernisation 2. Investment projects implemented on the basis of Energy efficiency programmes approved by municipalities (starting from 2013):  Investment projects are prepared on the municipality initiative  projects are implemented by the Programme administrator appointed by the Municipality  loan is taken by the Programme administrator  programme administrator organizing procurement, taking all the responsibilities for the implementation and financial management

JESSICA 4

FUNDING CONDITIONS FOR RENOVATION OF MULTI-APARTMENT BUILDINGS Energy performance certificates

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Majority of home-owners vote for modernisation 50%+1 Constructed before 1993 at least Energy Efficiency Class C 100% of costs for technical documentation and supervision 15% of modernisation costs if at least 20% of energy savings achieved additional