IMPROVING THE ENERGY EFFICIENCY

Role and activities of Riga Municipality

4.11.2008BALTIC ECONOMIC FORUM

Ivars Gaters, Chairman, Management Board, Riga Energy Agency

Vice-Chairman, City Development Committee, Riga City Council

Existing situation

Latvian legislation and policy framework

EU Policy background:

◙ Directive on the Energy Performance of Buildings 2002/91/EC

◙ Directive on the promotion of End-use efficiency and Energy Services2006/32/ECImplemetation in Latvia:

◙ Law on Energy Performance of Buildings (2.04.2008)

◙ Latvia’s first National Energy Efficiency Action plan 2008- 2010(22.05.2008)

◙ Methodology of calculating the integrated energy performance of buildings (By-laws are under development, proposals and comments submitted)

◙ Energy certification for Buildings (By-laws are under development, proposals and comments submitted)

Building insulation preparation

Pre- audit appraisal of energy efficiency in the building

Energy audit Refurbishment of the apartment building

Pre- audit appraisal of energy efficiency in the buildings

◙ Data on 3660 apartment buildings with central heating energy consumption for last 5 years◙ Data on 140 houses, where condominium is

established◙ Appraisal of buildings and preparation of the

digital maps of Riga districts◙ Thermography of 10 apartment buildings to

collect initial data for energy audits

Mapping the building performance.Heat consumption (kWh/m²), Riga, 2006

Buildings managed by the municipality Data of Municipal Services Department (2007)

5104Total

350,5302 170862Inadequate by sanitation standards

254,4284 9171120< 500

1033,01 294 3551253500 – 2000

3627,36 779 3731869> 2000

Average dwelling space

m²

Dwelling space in the

buildingsm²

Number of buildingsBuildings per

size inm²

• Average energy consumption in Riga (data from Concept Paper of the Development of Riga Heating Supply 2006-2016 – 231 kWh/m²

• State targets of average energy consumption for apartment buildings by the year 2020– 150 kWh/m²

• Riga has to decrease consumption in the existing construction by 40-60%, reaching the result of 70-150 kWh/m² in the refurbished buildings

Refurbished building. Ozolciema street 46/3

Specific heat consumption by types of standard buildings (5 buildings for each)

Activities of Riga Energy Agency,Riga City Municipality

PROPOSALSfor local policies to support inhabitants in their energy

efficiency efforts (binding regulations are currently under development)

1) Funding scheme for energy audits

• Costs contribution of the municipality per audit – calculated at approx. LVL 500 depending on the size and technical conditions

• A project “Energy audits for Buildings – 2008” has been developed and submitted to the City Council that foresees 20 audits for LVL 10 000

• Resources allocated from the City Development Fund, 22 apartment buildings have been selected in an open contest procedure. Auditors are selected by the public procurement and will be implemented by the end of 2008

• A project “Energy audits for Buildings – 2009” has been developed and submitted to the City Council that foresees 40 audits for LVL 20 000

2) A funding scheme for refurbishment of apartment building sup to 30 % of total eligible refurbishment costs

• Eligible costs – changing and packing of windows in commonspaces, insulation of the outer walls and constructions (roofs, basements), renovation and insulation of hot water risers and, changing of heat carriers in common spaces, renovation and changing outer doors

• Estimated costs for the complex refurbishment with insulation are approx. 60 – 90 LVL/m²

• A project “Refurbishment of audited buildings - 2009” is prepared and submitted to the City Council that foresees 10 to 15 refurbishments with the support of 30% of total eligible costs. Estimated costs are LVL 800 000 if 70 LVL/m²

3) A funding scheme for inhabitants on low incomes is under consideration from the social budget of the municipality

• Number of the inhabitants on low incomes amongst the owners of the flats – approx. 20%

• Necessary funding per year– approx. LVL 60 000 – 90 000

4) The creation of revolving fund

• The revolving fund would increase initiatives to refurbish buildings. The resources of the fund could be used several times as the cash repayment can be used for the new refurbishments

• The resources could come into the revolving fund from the structural funds that are to be used for the refurbishment as well as othersources

• The revolving fund could be created step by step starting from the initial investment of LVL 1, 5 million un contributing yearly with the same amount in the next 5-10 years. The funds would allow to refurbish approx. 10 buildings a year

• The resources taken from the revolving fund with “soft” interest of 3%, inhabitants could repay in even portions after the refurbishment has been finished, for about 10-15 years using the saved heating money

• In order to create a revolving fund, changes are necessary in the Law "On prevention of squandering state and municipal financial resources and property"

Information to the inhabitants

◘ REA has prepared and is distributing 3 information sheets: No.1. How to reduce costs of the heatingNo.2. How to prepare to the refurbishment of the buildingNo.3. Rising heating tariffs? What to do?

So far approx. 3000 copies distributed

◘ REA has prepared a brochure to be published in November, 2008“The role and tasks of local authorities in the implementation of EU energy policy” including the

examples of the best practise

◘ Cooperation with mass media and professional magazines is developed

◘ REA consults inhabitants of Riga

◘ Information and publications are also available on the website of REA (3200 visits this year):

http://www.rea.riga.lv

Thank you for attention!