Social 1Discussion: How social problems can be solved with the support of energy saving: ways to red - PowerPoint PPT Presentation


Title: Social 1Discussion: How social problems can be solved with the support of energy saving: ways to red


1
Social 1-Discussion How social problems can be
solved with the support of energy saving ways to
reduce the cost of energy supply for end
customers Lithuania
Ramune Kmieliauskaite Lithuanian District Heating
Association Specialist 2 November, 2005 CSR
Seminar Tallinn, Estonia
2
Key indicators of the DH sector
3
Heat balance, 2004
4
Average DH tariff in Lithuania, 2004
  • The average price of heat is dropping down
  • it was 115.1 LTL/MWh (33.3 EUR/MWh) in 2003,
    while in 2004 113.5 LTL/MWh (32,9 EUR/MWh)

5
Heat energy consumption, 2004
6
Structure of households consumption expenditures
for housing maintenance (per capita per month),
2004
37 for heat and hot water
During winter season the average expenditure for
heat energy makes about 20 of total family
monthly income
7
Heat users
  • difficult economical situation of the residents
    in the country determine that debts for the
    consumed heat in the DH sector are still great.
  • the average debt level is about 20

8
Distribution of heat consumers debt
  • In the end of 2004, the total debt of the heat
    users was 150.9 million LTL(43.70 mio EUR), i. e.
    about 17 of annual revenue of DH companies.
  • 80 of the total sum makes the debt of
    inhabitants.

9
Subsidies
  • In order to decrease the amount of expenditures,
    the State Support system is applied in Lithuania
    from 1996.
  • State subsidies for heat and hot water are
    applied to consumers with low incomes.
  • In 2004, the subsidies were provided to 11 of
    the Lithuanian population, and payments out of
    the budget exceeded 60 million LTL (17.4 mio
    EUR).

10
Disconnections
  • DH supplied at relatively high cost level creates
    a strong incentive of society to switch to other
    energy sources such as gas.
  • The majority of lately built new apartment houses
    are equipped with modern gas-based installations
    for production of heat and hot water.
  • The uncontrolled competition between district
    heating and decentralized heating mostly based on
    individual natural gas fired boilers undermines
    the DH position and may lead to irrational
    solutions with heavy long-term consequences.

11
  • Why heat expenditures are so high?

12
Housing stock
  • There are about 35000 multi-family apartment
    buildings in Lithuania
  • 66 of Lithuanian population reside in
    multi-apartment buildings constructed between
    1961-1990
  • Heat consumption in old houses 3 times bigger
    than in new ones.

Life-time of dwellings (Vilnius ?ity)
13
Heat consumption in old and new erected houses
14
Administration and maintenance
  • No sufficient attention was paid to the
    establishment of an institutional and legal
    system for housing maintenance and exploitation,
    for this reason housing maintenance problem
    exists.
  • Only 17 of the total number of apartment
    buildings are managed and maintained by the
    housing owners who establish home owners
    associations.
  • When establishing home owners' associations, the
    owners often lack initiative, as well as
    information and organisational-technical support
    by the public and local government institutions.
  • Home owners' associations usually are not able to
    ensure appropriate maintenance of common
    ownership in the multi-apartment buildings.
  • They can contract maintenance companies operating
    on the market, however, shortage of companies
    providing good quality services is noticed.

15
Energy efficiency of end-users
  • Why heat expenditures are so high?
  • The Lithuanian housing stock without proper
    maintenance depreciated.
  • About 90 of multi-family apartment houses need
    to be renovated in the country.

16
Housing renovation process
  • Prior to 1996 no housing renovation and
    maintenance projects were implemented in
    Lithuania.
  • 1996-2004 In 1996 the Government of Lithuania
    and the World Bank initiated and implemented the
    Energy Efficiency/Housing Pilot Project. Over 500
    multi-apartment buildings were renovated in towns
    and cities throughout Lithuania. Much attention
    was focused on the implementation of the energy
    efficiency measures. Home owners reduced energy
    consumption by an average of 24. There were also
    few other alternative projects implemented during
    1996-2004.However the housing modernisation
    problem was not solved due to insufficient State
    attention.
  • 2004-2005 problem solution at national level -
    legislation

17
Legal Acts on Renovation of Multy-family
Apartment Houses
  • Lithuanian Housing Strategy (Adopted on
    21-01-2004)
  • Support Programme on Renovation of Multy-family
    Apartment Houses (Adopted on 23-09-2004, modified
    on 21-06-2005)
  • Measures and terms of implementation of Directive
    2002/91/EC of the European Parliament and of the
    Council on the energy performance of buildings
    (Adopted on 27-12-2004)
  • Law on State Support for Housings Procure or
    Rent and Modernization of Multy-family Apartment
    Houses (Adopted with modifications on 24-03-2005)

18
Lithuanian Housing Strategy (January, 2004)
  • Main goals of this strategy regarding energy
    conservation is to ensure efficient use,
    maintenance, renovation and modernization of
    existing housing, as well as efficient energy
    use.
  • The poor condition of the existing housing stock
    will improve, with its value being preserved and
    increased where possible, the dwellings will be
    adapted to the new needs of households, the
    social segregation will be mitigated.
  • Prior to 2020 it is necessary
  • to modernize based on the economic feasibility
    principle the heating systems in the existing
    multi-apartment buildings,
  • to renovate and insulate roof structures,
  • to change or replace windows and entrance doors,
  • to remove joint defects of panel walls and
    increase the thermal resistance of external
    walls,
  • to reduce heat energy costs per unit of useful
    floor space up to 30.
  • to foresee efficient state social allowances to
    low income households, also to apply other
    financial measures.

19
Support Program for Multi-family apartment houses
modernization (September 2004, (modified in
June, 2005))
  • Main objective of this programme to help home
    owners and especially families of low income to
    renovate their multi-family apartment buildings
    by increasing the energy efficiency and
    decreasing heat cost.
  • Tasks
  • Create credit support system for modernization of
    multi-family apartment buildings. This system
    should form favourable conditions for commercial
    banks to finance the renovation projects of
    buildings at the minimal State budget
    expenditures.
  • The credits of commercial banks to be obtainable
    for homeowners to implement the renovation
    projects.
  • Compensate a part of expenditures taking into
    account the energy efficiency of investment
    projects to support the families of low incomes
    defray the initial contribution or the part of
    it, credit insurance contribution or the part of
    it, interest or the part of it.
  • Secure the quality of projects implementation.
  • Secure the direct financial, juridical, technical
    and organizational support and consultation to
    homeowners in every possible way.

20
Support Program for Multi-family apartment houses
modernization (September 2004, (modified in
June, 2005))
  • Expected results
  • about 70 (20 000 units) of multi-family
    apartment houses will be renovated during
    2005-2020
  • heat expenditures will be decreased up to 30
  • the payments out of the State budget for
    subsidies for heat and hot water will be
    decreased by 35
  • about 7 billion LTL (2 billion EUR) will be
    invested in housing renovation field during
    2005-2020

21
Municipal level
  • There are 60 municipalities in Lithuania. Only
    Vilnius City municipality is a pioneer in this
    process of modernization
  • Energy efficiency fund (February 2002)
  • Long-term renovation program Lets renovate
    dwelling- renovate City (June 2004)

22
Energy Efficiency Fund
  • On February 2002, Vilnius City Municipality and
    JSC Vilniaus energija (lease holder of Vilnius
    DH) established a specialized Energy Efficiency
    fund (20 million LTL), which gave the possibility
    for inhabitants of Multi-flat apartment buildings
    of Vilnius City to equip an individual accounting
    and regulation system inside their flats.
  • In 2003 GEF/WB dedicated 2.5 million USD grant
    for the extension of this project.
  • Objectives
  • to induce the rational use of heat energy
  • to decrease the payments for heat used
  • to distribute heat cost inside building correctly
    (according amount of heat consumed not the area
    of individual flat).
  • It is planned in the future (during 5 year
    period) to install heat cost allocating systems
    in 500-600 multi-flat apartment buildings of
    Vilnius City

23
Long-term renovation program Lets renovate
dwelling- renovate City
  • On June 2004 Vilnius City Municipality started
    the implementation of long term renovation
    program Lets renovate dwelling - renovate
    City.
  • World fund for Environmental Protection gave a
    loan of 6,5 million USD (3 million USD is
    intended for building renovation).
  • Pilot project overall renovation of 3
    multi-family apartment buildings - is implemented
    within this project framework.

24
Would you agree to participate in housing
renovation?
Survey of the public opinion of inhabitants of
Vilnius City (September, 2004)
25
How much money would you be able to pay for
renovation per month?
Survey of the public opinion of inhabitants of
Vilnius City (September, 2004)
26
Do you know who and what services are providing
for housing renovation?
Survey of the public opinion of inhabitants of
Vilnius City (September, 2004)
27
Social 1-Discussion How social problems can be
solved with the support of energy saving ways
to reduce the cost of energy supply for end
customers
  • Housing maintenance
  • depreciation existing quality of housing does
    not comply with the effective technical
    requirements
  • shortage of companies providing good quality
    services.
  • Consumer debts are still great - State support is
    required for covering a part of investments.
  • State subsidies for heat and hot water. Is it
    rational? Inhabitants have no motivation to
    save energy
  • How to avoid disconnections? -
  • DH still has a bad image among costumers
    awareness of society about the sector problems,
    energy efficiency should be increased.
  • Other?
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Social 1Discussion: How social problems can be solved with the support of energy saving: ways to red

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Title: Social 1Discussion: How social problems can be solved with the support of energy saving: ways to red


1
Social 1-Discussion How social problems can be
solved with the support of energy saving ways to
reduce the cost of energy supply for end
customers Lithuania
Ramune Kmieliauskaite Lithuanian District Heating
Association Specialist 2 November, 2005 CSR
Seminar Tallinn, Estonia
2
Key indicators of the DH sector
3
Heat balance, 2004
4
Average DH tariff in Lithuania, 2004
  • The average price of heat is dropping down
  • it was 115.1 LTL/MWh (33.3 EUR/MWh) in 2003,
    while in 2004 113.5 LTL/MWh (32,9 EUR/MWh)

5
Heat energy consumption, 2004
6
Structure of households consumption expenditures
for housing maintenance (per capita per month),
2004
37 for heat and hot water
During winter season the average expenditure for
heat energy makes about 20 of total family
monthly income
7
Heat users
  • difficult economical situation of the residents
    in the country determine that debts for the
    consumed heat in the DH sector are still great.
  • the average debt level is about 20

8
Distribution of heat consumers debt
  • In the end of 2004, the total debt of the heat
    users was 150.9 million LTL(43.70 mio EUR), i. e.
    about 17 of annual revenue of DH companies.
  • 80 of the total sum makes the debt of
    inhabitants.

9
Subsidies
  • In order to decrease the amount of expenditures,
    the State Support system is applied in Lithuania
    from 1996.
  • State subsidies for heat and hot water are
    applied to consumers with low incomes.
  • In 2004, the subsidies were provided to 11 of
    the Lithuanian population, and payments out of
    the budget exceeded 60 million LTL (17.4 mio
    EUR).

10
Disconnections
  • DH supplied at relatively high cost level creates
    a strong incentive of society to switch to other
    energy sources such as gas.
  • The majority of lately built new apartment houses
    are equipped with modern gas-based installations
    for production of heat and hot water.
  • The uncontrolled competition between district
    heating and decentralized heating mostly based on
    individual natural gas fired boilers undermines
    the DH position and may lead to irrational
    solutions with heavy long-term consequences.

11
  • Why heat expenditures are so high?

12
Housing stock
  • There are about 35000 multi-family apartment
    buildings in Lithuania
  • 66 of Lithuanian population reside in
    multi-apartment buildings constructed between
    1961-1990
  • Heat consumption in old houses 3 times bigger
    than in new ones.

Life-time of dwellings (Vilnius ?ity)
13
Heat consumption in old and new erected houses
14
Administration and maintenance
  • No sufficient attention was paid to the
    establishment of an institutional and legal
    system for housing maintenance and exploitation,
    for this reason housing maintenance problem
    exists.
  • Only 17 of the total number of apartment
    buildings are managed and maintained by the
    housing owners who establish home owners
    associations.
  • When establishing home owners' associations, the
    owners often lack initiative, as well as
    information and organisational-technical support
    by the public and local government institutions.
  • Home owners' associations usually are not able to
    ensure appropriate maintenance of common
    ownership in the multi-apartment buildings.
  • They can contract maintenance companies operating
    on the market, however, shortage of companies
    providing good quality services is noticed.

15
Energy efficiency of end-users
  • Why heat expenditures are so high?
  • The Lithuanian housing stock without proper
    maintenance depreciated.
  • About 90 of multi-family apartment houses need
    to be renovated in the country.

16
Housing renovation process
  • Prior to 1996 no housing renovation and
    maintenance projects were implemented in
    Lithuania.
  • 1996-2004 In 1996 the Government of Lithuania
    and the World Bank initiated and implemented the
    Energy Efficiency/Housing Pilot Project. Over 500
    multi-apartment buildings were renovated in towns
    and cities throughout Lithuania. Much attention
    was focused on the implementation of the energy
    efficiency measures. Home owners reduced energy
    consumption by an average of 24. There were also
    few other alternative projects implemented during
    1996-2004.However the housing modernisation
    problem was not solved due to insufficient State
    attention.
  • 2004-2005 problem solution at national level -
    legislation

17
Legal Acts on Renovation of Multy-family
Apartment Houses
  • Lithuanian Housing Strategy (Adopted on
    21-01-2004)
  • Support Programme on Renovation of Multy-family
    Apartment Houses (Adopted on 23-09-2004, modified
    on 21-06-2005)
  • Measures and terms of implementation of Directive
    2002/91/EC of the European Parliament and of the
    Council on the energy performance of buildings
    (Adopted on 27-12-2004)
  • Law on State Support for Housings Procure or
    Rent and Modernization of Multy-family Apartment
    Houses (Adopted with modifications on 24-03-2005)

18
Lithuanian Housing Strategy (January, 2004)
  • Main goals of this strategy regarding energy
    conservation is to ensure efficient use,
    maintenance, renovation and modernization of
    existing housing, as well as efficient energy
    use.
  • The poor condition of the existing housing stock
    will improve, with its value being preserved and
    increased where possible, the dwellings will be
    adapted to the new needs of households, the
    social segregation will be mitigated.
  • Prior to 2020 it is necessary
  • to modernize based on the economic feasibility
    principle the heating systems in the existing
    multi-apartment buildings,
  • to renovate and insulate roof structures,
  • to change or replace windows and entrance doors,
  • to remove joint defects of panel walls and
    increase the thermal resistance of external
    walls,
  • to reduce heat energy costs per unit of useful
    floor space up to 30.
  • to foresee efficient state social allowances to
    low income households, also to apply other
    financial measures.

19
Support Program for Multi-family apartment houses
modernization (September 2004, (modified in
June, 2005))
  • Main objective of this programme to help home
    owners and especially families of low income to
    renovate their multi-family apartment buildings
    by increasing the energy efficiency and
    decreasing heat cost.
  • Tasks
  • Create credit support system for modernization of
    multi-family apartment buildings. This system
    should form favourable conditions for commercial
    banks to finance the renovation projects of
    buildings at the minimal State budget
    expenditures.
  • The credits of commercial banks to be obtainable
    for homeowners to implement the renovation
    projects.
  • Compensate a part of expenditures taking into
    account the energy efficiency of investment
    projects to support the families of low incomes
    defray the initial contribution or the part of
    it, credit insurance contribution or the part of
    it, interest or the part of it.
  • Secure the quality of projects implementation.
  • Secure the direct financial, juridical, technical
    and organizational support and consultation to
    homeowners in every possible way.

20
Support Program for Multi-family apartment houses
modernization (September 2004, (modified in
June, 2005))
  • Expected results
  • about 70 (20 000 units) of multi-family
    apartment houses will be renovated during
    2005-2020
  • heat expenditures will be decreased up to 30
  • the payments out of the State budget for
    subsidies for heat and hot water will be
    decreased by 35
  • about 7 billion LTL (2 billion EUR) will be
    invested in housing renovation field during
    2005-2020

21
Municipal level
  • There are 60 municipalities in Lithuania. Only
    Vilnius City municipality is a pioneer in this
    process of modernization
  • Energy efficiency fund (February 2002)
  • Long-term renovation program Lets renovate
    dwelling- renovate City (June 2004)

22
Energy Efficiency Fund
  • On February 2002, Vilnius City Municipality and
    JSC Vilniaus energija (lease holder of Vilnius
    DH) established a specialized Energy Efficiency
    fund (20 million LTL), which gave the possibility
    for inhabitants of Multi-flat apartment buildings
    of Vilnius City to equip an individual accounting
    and regulation system inside their flats.
  • In 2003 GEF/WB dedicated 2.5 million USD grant
    for the extension of this project.
  • Objectives
  • to induce the rational use of heat energy
  • to decrease the payments for heat used
  • to distribute heat cost inside building correctly
    (according amount of heat consumed not the area
    of individual flat).
  • It is planned in the future (during 5 year
    period) to install heat cost allocating systems
    in 500-600 multi-flat apartment buildings of
    Vilnius City

23
Long-term renovation program Lets renovate
dwelling- renovate City
  • On June 2004 Vilnius City Municipality started
    the implementation of long term renovation
    program Lets renovate dwelling - renovate
    City.
  • World fund for Environmental Protection gave a
    loan of 6,5 million USD (3 million USD is
    intended for building renovation).
  • Pilot project overall renovation of 3
    multi-family apartment buildings - is implemented
    within this project framework.

24
Would you agree to participate in housing
renovation?
Survey of the public opinion of inhabitants of
Vilnius City (September, 2004)
25
How much money would you be able to pay for
renovation per month?
Survey of the public opinion of inhabitants of
Vilnius City (September, 2004)
26
Do you know who and what services are providing
for housing renovation?
Survey of the public opinion of inhabitants of
Vilnius City (September, 2004)
27
Social 1-Discussion How social problems can be
solved with the support of energy saving ways
to reduce the cost of energy supply for end
customers
  • Housing maintenance
  • depreciation existing quality of housing does
    not comply with the effective technical
    requirements
  • shortage of companies providing good quality
    services.
  • Consumer debts are still great - State support is
    required for covering a part of investments.
  • State subsidies for heat and hot water. Is it
    rational? Inhabitants have no motivation to
    save energy
  • How to avoid disconnections? -
  • DH still has a bad image among costumers
    awareness of society about the sector problems,
    energy efficiency should be increased.
  • Other?
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