IMPROVING ENERGY EFFICIENCY FOR THE LOW INCOME HOUSING SECTOR
IN MACEDONIA
Habitat for Humanity MacedoniaSkopje/Geneva
April 2013
SITUATION ANALYSIS
Increasing poverty • 31% lived below the national poverty line in 2010
Poor maintainance of the housing stock in collective apartment buildings
• 35% of the residential buildings have only recently registered homeowner association
• At least 100,000 housing units in need of EE intervention Raising energy prices
• Macedonian households pay three times less for electricity than EU average, up to 100% less than SEE countries
• Full price liberalization is expected by 2015 High levels of CO2 emissions
• 5.5 metric tones/capita, higher than any other SEE country Low level of awareness & poor regulatory framework
KEY CONSIDERATIONS
Energy consumption of the Macedonian residential sector is high, unaffordable, environmentally degrading and inefficient
Until recently the decay of homeowner association has not been addressed in any serious fashion
EE regulatory framework and supporting mechanisms still under development
National EE Strategy and the corresponding Actions plan provide no instruments/incentives for homeowners to take measures to improve the efficiency of their homes
Investing in improvement of collective housing and residential energy management has not been identified as business opportunity
LONG TERM GOALS
Decrease the households energy consumption in the structure of the final energy consumption by sectors
Decrease the consumption of electricity in the structure of households’ overall fuel consumption
Decrease the energy consumption on heating in the structure of households overall energy consumption
PILOT PROJECT
Residential Energy Efficiency as Social Safety Net Tool - USAID through IRG, along with SEVEn, TimelProject and Habitat for Humanity
Develop systematic information and experience: costs and benefits, household behavior, institutional issues (legal/regulatory, implementation, homeowners associations)
Research/demonstration effort, not a sustainable model
PROJECT OBJECTIVES
A. Develop and test market-based models for energy efficient upgrades in collective apartment buildings
B. Improve management of collective apartment buildings
C. Facilitate investment, entrepreneurship and job creation on energy efficiency
D. Foster a broad-based societal platform that affirms energy efficient consumption of clean energy and advocates for efficient and targeted state involvement in the housing sector
FINANCIAL MODELLING & EE UPGRADES
Objective A:Develop and test market-based models for energy efficient upgrades in collective housing units• Selection of 30 buildings in 7 major cities to carry EE
interventions• Development of financing models• Networking and capacity building of an EE investor
forum• Energy audits carried in 30 buildings (pre and after
intervention) • Establishment of a EE Revolving Fund, criteria and
process• EE renovation of selected buildings
EE REVOLVING FUND
Habitat for Humanity as interlocutor in securing capital and funding sources for the low-income housing sector in Macedonia
Initial funding:• USAID • MFI Moznosti• Habitat for Humanity
Other socially motivated investors invited to join the Revolving fund
HFH
MK
Allocation
(terms & conditions)
MFICo
oper
ative
Agr
eem
ent
Loan (terms & conditions)
ESTABLISHING THE REVOLVING FUNDU
SAID
OTHER INVESTORS/CREDITORS
Lending model 1
EE Interventions
Lending model 2
Lending model 3
Lending model 4
EE REVOLVING FUND
LG grant
MoU
REVOLVING FUND
Loan INTERMEDIARY (HOA, Company) or INDIVIDUAL HOMEOWNERS
Intervention completed (families served)
Building/family selection
Intervention Supervising
MUNICIPALITY
Supervising
Grant/loan
FINANCING MODEL 5
EE INTERVENTION COMPLETED
HOUSING MANAGEMENT
Objective B: Improve management of collective housing units
• Supporting HOAs in selected buildingso Developing capacity for selection of companies for
EE interventionso Criteria for HOA’s creditworthiness assessment
• Establishing and building capacities of the Tenants Association Resource Center (TARC) o Web based resources, including best practices,
databases and manuals for HOAo Exploring TARC’s long-term sustainability options
INVESTMENT & JOB CREATION
Objective C: Facilitate investment, entrepreneurship and job creation on Energy Efficiency (green jobs)• Promotion of business opportunities in EE sector o Researching EE and green jobs opportunities, regional
and national o Capacity building, modeling and supporting ESCO in
operations and service delivery • Education, training and business opportunities in EEo Vocational trainings for young construction workers,
high-school students, energy service companies and micro-entrepreneurs
o Promotional events aimed to generate interest
SOCIETAL PLATFORM ON EE
Objective D: Foster a broad-based societal platform that affirms energy efficient consumption of clean energy and advocates for efficient and targeted state involvement in the housing sector• Establishing and supporting platform of relevant
stakeholderso SAG objective: Convening mechanism for legislators,
public administration/local government, business, civil society, media, international organizations
• Public awareness, advocacy and lobbying campaigns o Workshops with municipalities and ministrieso Harmonization of the legislation (Housing Law and
Construction Law)
Financial modelling
Investment & job creation
Housing management
AdvocacyAwareness
Construction companies
Individual homeowners
Financial institutions
Homeowners’ associations
General public
High school students
Unemployed workers
Entrepreneurs/employers
Government: central/local
LoanConstruction
TrainingCapacity dev.
TrainingAdvocacy
Societal platform
PROJECT BENEFICIARIES
Testing vs. Implementation of financing models• Simultaneous: risky• Consecutive: limited time frame
Sustainability/replicability of models and practices Context change
• Favorable• Unfavorable
Lack of mechanisms in reaching consent of homeowners Awareness: Skopje vs. Macedonia average Dependence on municipal procedures and funding:
• Uncertainty with the political will/decisions• Uncertainty with the availability and procedure for matching
funds• Municipal prioritization in buildings selection• Construction permits/approvals issue
MID-TERM REVIEW: FY12 LESSONS LEARNED