Energy efficiency programme

Energy efficiency programme

Duration

2007 – 2013, 2014 – 2020, 2021 – 2027

Geografic scope

National

Recipients

Apartment owners

Managing body

ALTUM – a state-owned development financial institution, which offers state aid for various target groups with the help of financial tools (such as loans, credit guarantees, investing in venture capital funds, etc.). ALTUM develops and implements state aid programmes to compensate for market shortcomings that cannot be solved by private financial institutions.

Other stakeholders involved

Project implementation: Structural and energy auditors, designers, construction companies, building supervision, product and component suppliers

Funding method

Public funding – European, up to 50 %

Own contribution

From 50%

Target socioeconomic group

Target audience and beneficiaries are apartment owners in multi-apartment buildings.

Target housing situation

The objective of the programme is to promote energy efficiency improvement, smart energy management and the use of renewable energy resources in
apartment buildings.

Eligible energy efficiency measures

Building insulation, heating system

Targeted energy performance

Not lower than energy class C

Process of application

Apartment owners apply for the receipt of financial aid through the mediation of an authorised person by submitting an application to ALTUM. Before attracting an EU subsidies and providing funding for project implementation, as well as starting renovation, it is important that all material decisions are made in general meetings or surveys involving at least two-thirds of apartment owners in a detached house (where dwellings belongs to different owners), or 100% of apartment owners in an undivided house (where all owners have joint ownership).

Details

There are two possibilities to finance buildings renovations through the ALTUM scheme:
1) The building owner obtains a loan directly from ALTUM
2) The building owner obtains a loan from a commercial bank, while ALTUM issues guarantees.
In 2007-2013 planning period, energy efficiency improvement measures in multiapartment buildings were co-financed by the ERDF within the national operational programme “Infrastructure and Services”. Over the 2014-2020 planning period, they were implemented within the national operational programme “Growth and Employment”. This will be continued in the 2021-2027 planning period.

Best practice cases

The apartment house at in Salaspils (built in 1971, renovated in 2019). The building has five floors, eight staircases and a basement. The total area is 7280.4 m2. More than €1.7 million has been invested in the renovation of the house, of which €722,000 are ALTUM grants or donations from European Union funds.

Limitations

Policy oriented, legal and structural barriers:
1. Lack of coherent policy, lack of long-term vision and excessively changing construction laws.
2. Insufficient technical support for municipalities and apartment owners for project preparation and implementation. An additional barrier is that
project development, project documentation and administration costs are excluded from the eligible costs in case of financing via loans.
3. Insufficient number of professionally trained specialists (building managers, energy auditors, designers, construction workers) and lack of
qualified workforce hinders the implementation of good quality renovation projects.
4. Low awareness of building and apartment owners regarding the advantages of renovation, which limits their interest in participation in retrofits of the residential sector.

Financial barriers:
1. Lack of financial resources on the side of local governments and the final beneficiaries (apartment owners). Limited possibility to take loans due to prior communal debts of the houses as centralised service users (mainly heat and water).

2. Low availability of long-term financing options (up to 20 years) from private sector. Reluctance of commercial banks to provide credits for
renovation, especially in multi-apartment buildings. This reluctance is related to the requirement of obtaining the agreement of at least 70% of
the inhabitants before applying for a loan.
3. High renovation costs related to the bad condition of multi-apartment buildings constructions and engineering systems.

Market-orientated barriers:
Current low energy prices result in low return on investment in energy efficiency and longer payback times.

Pathways for improvement

Improving all the issues mentioned above. Involving renewable energy as an obligatory measure in the refurbishment projects.

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