National Appropriate Mitigation Action (NAMA) FINANCING MECHANISM FOR ENERGY EFFICIENCY IN BUILDINGS Supporting the implementation on the National Energy Efficiency Action Plan (NEEAP) in the residential, public and commercial sector Laureta

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National Appropriate Mitigation Action (NAMA)
FINANCING MECHANISM FOR ENERGY EFFICIENCY IN
BUILDINGS Supporting the implementation on the
National Energy Efficiency Action Plan (NEEAP) in
the residential, public and commercial
sectorLaureta DIBRAMinistry of Environment
Albania
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OUTLINE

• NAMA description 
• National Policy context 
• Financial assessment of NAMA
• MRV plan/arrangement for NAMA
• Sustainable development benefits of NAMA

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NAMA Description

• This NAMA aims to reduce greenhouse emissions
  from building sector in Albania through financial
  mechanism for using energy efficiency
  technologies/measures in buildings.
• Measures/ technolgies to be used
• Energy efficient (capital) renovation of building
  envelope
• Energy efficiency in space heating, hot water,
  cooling and ventilation systems
• Fuel switch in space heating (replacing
  electricity)
• Integration of renewable energy technologies and
  passive solar designs in buildings
• Energy efficient building maintenance and
  management
• NAMA contains following four components
• NAMA Component 1 Financing mechanism (Energy
  Efficiency Fund)
• NAMA Component 2 Technical support and capacity
  building
• NAMA Component 3 Outreach and awareness raising
• NAMA Component 4 Improved building
  management/operation

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Possible Organization NAMA
Other stakeholders Finance, Health, Education,
Labour and Social Affairs, Energy,
Municipalities,
UNFCCC
Ministry of Energy and Industry
Ministry of Environment
NAMA Supervisory Committee
International financing institutions/
international donors/partners
UNDP
NAMA Executive /Coordination
Fund administration (to be established)
Energy Agency (to be established)
TA partners
Architects/ engineers
PMUs
End-users / building owners
Contractors
Local financial institutions
Building managers/ operators
Marketing partners
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National Policy Context

• Albania is candidate Member State of the EU and
  associated itself with most of the formal EU
  positions in the international context.
• NAMA is anchored in the Sector strategy on
  climate change to be adopted under Environmental
  Cross-cutting Strategy
• INDC is under technical process of preparation
  (expected NAMA to be included).
• NEEAP adopted (2010) but lacking in
  implementation
• NEEAP identifies needs for energy efficiency fund
• Energy Efficiency Law (2005) is lacking in
  implementation. Revised Energy Efficiency Law in
  preparation (close to adoption)
• Establishment Energy Efficiency Fund and Energy
  Agency (executive agency also for energy
  efficiency)
• Drafting supported by EBRD
• Law on Energy Performance in Buildings in
  preparation

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Financial Aspects of NAMA

• Table show indicative budget. Budget depends on
  available funding and demand

 Component Grants   Loan program
Activity Item Amount (indicative) million Type
Component 1 Financing mechanism Concessional credit line 25 Concessional loans
Component 1 Financing mechanism Commercial credit line 15 Private sector
Component 1 Financing mechanism Partial credit guarantee (to be discussed) ? Grant
Component 1 Financing mechanism Investment grants 3 Grant
Component 2 Technical assistance Pre-feasibility/audits 1  
Component 2 Technical assistance Training programs and other (including TA building management) 0,5 Grant
Component 3 Outreach and awareness raising Information campaigns 0,5 Grant
Component 4 Improved building management Training programs .. 0,5   Grants
Administration and MRV Admin and MRV 0,5  
Total financial component Loans, credit guarantee 40  
Incremental costs (grants) Investment grants, TA, outreach, pre-feasibility 6  
Total NAMA   46  

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Evaluation results of NAMA impacts (GHG
mitigation)
Building sub categories Weight Average of Unit Cost of All EE Measures (Euro cent/kWh) Total Investment (Mil. Euro) Energy Savings at 2020 (GWh) Energy Savings at 2020 (ktoe) Emission reduction at 2020 (ton CO2 reduction)
Household 5.19 25.30 487.19 41.89 159,591
Public Building 4.78 6.90 144.33 12.41 48,502
Private Building 4.78 13.80 288.67 24.82 97,018
TOTAL 46.00 920.20 79.13 305,111
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SWOT Energy efficiency in buildings
Strenghs Energy saving potential is very high Financial and economic benefits of energy efficient buildings are well-researched and documented. Albania could benefit from experiences/lessons on energy efficiency financing in EU and region Weaknesses Traditional focus on energy supply Legal framework not completed Project preparation is time consuming as local financing institutions are not fully familiar with energy efficiency investments No Energy Efficiency Fund in place No ESCO concept in place
Opportunities New trends and emerging markets is mostly in the direction of high quality, which in itself directly means in the direction of EE Local high-quality energy efficiency qualitative materials available High liquidity of Albanian banks sector Awareness campaign regarding new technologies needed Threats Legal base of implementation of EE measures in Building is not yet fully in place Easier to invest in industry sector Banks are reluctant to finance building sector (due to actual world wide crises in this sector) Technical assistance is essential, especially energy audits and feasibility studies
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Framework for measurement, reporting and
verification
MRV Elements Block International Supported NAMAs For this specific NAMA
Program oversight Multilateral or bilateral agreement using national legislation of cooperating Parties NAMA supervisory committee. Involved international partner and type of agreement with government to be discussed.
Issuance/compliance body Government body authorised for the multilateral agreement Ministry of Industry and Energy
Standards Bilateral Standards (no international regulation) To be developed for this NAMA. In any case all national standards
MRV Control Entity Qualifications Third party or government body To be discussed whether third party verification is necessary in additional to internal MRV
Monitoring Reporting (level of buildings) Results are available to oversight and participants only For each new constructed/renovated building, a monitoring and reporting reports is drafted. Ex-post monitoring.
MRV Reporting (National Level) Publically or internally available Aggregated building-level reports MRV reports to be published annually. Prepared by NAMA executive body (Fund administration).
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Sustainable development benefits

• On building level
• Improve energy performance of buildings
• Improving comfort levels and the overall quality
  of public services
• Reduce energy costs for private households and
  businesses
• Increase value public and private real estate
• On national level
• Support implementation NEEAP
• Improving energy security of the country
• Increase competitiveness of economy
• Cutting public budget allocations for energy
  bills for public buildings
• Contribute to low carbon development
• Contribute to development objectives of Albania
  (environment, economic, and social), including
  poverty alleviation and social inclusion.