Project 2: Energy Efficiency Project in the kindergarden “Koco Racin” in the
Municipality of Centar Skopje. The energy consumption of the “Koco Racin”
kinder ...
United Nation Economic Commission for Europe Financing Energy Efficiency Investments for Climate Change Mitigation
NATIONAL CASE STUDY - REPUBLIC OF MACEDONIA
ENERGY EFFICIENCY IN THE BUILDING SECTOR IN THE REPUBLIC OF MACEDONIA
ENERGY AGENCY OF THE REPUBLIC OF MACEDONIA 2009
1. CONTEXT A. Sector characteristics before the policy reforms The formulation of an energy efficiency strategy for the buildings sector has proved to be a rather difficult task for government and other competent institutions. The most important reasons are that the sector consists of a very large number of independent decision-makers (including households, local authorities, organizations) whose objectives is very difficult to be harmonized. The residential sector is the second largest energy consumer in Macedonia as it accounts for 29% of the Total Final Energy Consumption. Electricity is the major energy used in the sector, and while the overall consumption level does not undergo big fluctuations, the consumption of electricity is increasing every year to reach 53% of households’ energy consumption (Fig. 1). Figure 1.Final Consumption of the Residential Sector by Energy Source, 2007 Coal and Coal Products 1%
Combustible Renewables & W aste 29%
Electricity 53% Petroleum Products 8%
Heat 9%
Source: Based on IEA Energy Statistics, Electronic version 2007
There is no statistical information about the structure of electricity consumption by households. It is commonly known however, that many of the residences in Macedonia are heated with electricity. A presentation of representatives of the Energy Regulatory Commission in 2005 provides some data about the number of households by types of space heating. According to the information, 16.25% of the households use electricity for heating. A survey on household energy use1, involving 1412 households all over Macedonia, comes with rough estimation that approximately 50% of the electricity used in households is for space heating and 25% for water heating. 32% of the space heating in households is done by electricity (mainly in urban areas), 17% by wood and electricity, and 34% by wood only. 90% of households use simple electric water heaters. All households have TVs and refrigerators. 23% have air conditioners, but the efficiency of these devises is generally rather poor. Currently, less than 9% of the households are connected to district heating networks. The district heating company in Skopje provides heat to over 47 000 flats with heating surface of nearly 3 million m2. Equipment for second level of temperature regulation (first level is at the heating plant) and heat meters are installed in the heating substations. However, there is no equipment for 1
Household Survey on Energy Use, Component III of the Efficient Energy Distribution Project, Swiss Agency for Efficient Energy Use S.A.F.E., 2005 2
individual metering and control of heat consumption in collective buildings and the bills are calculated on the basis of square meters of floor area. Expansion of the district heating systems is not foreseen in the short term. The existing building stock in Macedonia is not energy efficient. In general, the level of thermal insulation of the buildings is poor. Old buildings which, are constructed in traditional methods with thick brick or stonewalls, can offer a rather acceptable comfort level. The main problem is encountered in new constructions of reinforced concrete, where the heat losses are excessive and the comfort level is low. Some completed audits concluded with calculations for payback of building retrofits of 3 to 5 years. A regulation for thermal insulation of buildings is in force since the ‘80s, but its actual implementation is limited. Building permits are received without any energy efficiency criteria. There is no enforced energy performance standard. There is no supervision of the energy systems in buildings during their construction. Generally, the considerable potential for improving energy efficiency in buildings, together with the high level of electricity use by households, makes the residential sector a key target for energy efficiency improvement programs. B. Regulatory framework before the policy reforms Since becoming an independent Republic in 1991, Macedonia has made several efforts towards complying with international, bilateral and regional energy and environmental agreements as The 1991 European Energy Charter, the subsequent 1994 Energy Charter Treaty and the 1994 Energy Charter Protocol on Energy Efficiency and Related Environmental Aspects (PEEREA) in September 1998. National Strategy for Economic Development of Republic of Macedonia published in December of 1997 highlights the need for national policy to be concerned with energy efficiency as a key factor in achieving national development goals. In May, 2000, the Government of The Republic of Macedonia established a framework for enforcing goals of the previously referenced National Strategy for Economic Development (Official Gazette of the RM No. 49/2000). This Framework Program reviewed the condition of the energy sector and defined goals for its future development. C. Identified potentially attractive investment project before the policy reforms First serious attention has been given to the need for rationalizing energy consumption. For example, in 1988, the Executive Council of the Macedonian Assembly, consistent with the Energy Law at that time, passed a Program on Energy Conservation, Substitution and Rational Use of all types of energy through 2000. This Program received funding in the Macedonia’s budget in 1989, 1990 and to a diminished extent in 1991. Although funding from the national budget was then eliminated, the program was able to implement close to 200 energy efficient interventions, all in industrial facilities, and achieve estimated savings of close to 5% of the energy consumed in the industrial sector at that time. Unfortunately, there is no record that this earlier program to promote energy efficiency led to any replication of energy efficiency investments on the part of industry. Energy Efficiency in the Residential Sector The priority target for a residential program should be space conditioning, especially for heating that is provided by electricity. Space conditioning (predominantly heating) accounts for 70 percent of residential energy use; followed by hot water heating, accounting for 17 percent; and electrical 3
appliances at 12 percent. Space heating is also important to address because it accounts for a major share of the seasonal electrical peak. Improvements in energy-efficiency can reduce this consumption by 30% or more, and save millions of dollars per year in household fuel bills. Therefore, there is an imperative for a comprehensive and effective residential energy-efficiency program. One component of the residential program should focus on low-income households. As in other households, space heating represents the greatest energy-efficiency opportunity in poor households. The series of technical programs that have been identified and analyzed merit consideration for inclusion in the implementation plan. These initiatives all lie on the demand-side rather than on supply with particular emphasis on electrical energy use as this is currently the most perturbing enduse issue. The program initiatives are: Residential Buildings Program It is expected the natural gas pipeline will be expanded, so natural gas is available to more areas. As this happens, residences should convert from electric heating to natural gas heating. This will require the installation of radiators, piping and controls within each flat, plus the installation of a gas fired boiler in the building or substation. These changes will provide less expensive heat, while reducing the environmental impacts and providing more even heat through the residences. This type of program is very sensitive to the cost of the heating fuel/energy source used. If the heating source is electricity or fuel oil, the payback period will be much more attractive. For areas with district heating systems, the following improvements are suggested:
Convert consumer billing to consumption basis
Expansion of the district heating systems (adding capacity and extension of piping)
Low cost measures such as weather-stripping, radiator reflector shields and other measures as Weather stripping Roof insulation Wall insulation Window replacement and Timers and thermal storage heating systems.
To help promote these conversions, incentives could be considered. The program could provide a grant equivalent on one year’s worth of the heating subsidy (approximately $290) to consumers who convert to natural gas and add a boiler and heating system, or one half of one year’s subsidy (approximately $145) to consumers who cannot convert to natural gas but do weatherize their flat or building. The building envelope upgrade program could be restricted to electrically heated residences, or residential buildings. In is expected that these improvements have a 2.4 year payback period, while saving over 25% of the heating energy in the subject buildings. Since newer buildings are more likely to be insulated, the program should be restricted to buildings that are ten years old and older. Local private companies (ESCOs) and energy audit firms, through contracts with housing associations and individual private owners, could survey candidate buildings, to ensure that the buildings need weather-stripping and wall and roof insulation. Once this is determined, contractors could be hired to implement the improvements. Assuming that the implementation of this Program starts at the beginning of the period considered i.e., 2004 to 2020, it will result in an estimated level of saving of 61,079 MWh/year in year 2020. The Net Present Value of the Program is estimated to be approximately $5,621,699.
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Commercial Buildings Program The commercial buildings sector has been steadily increasing in energy usage. In 2000, consumption in this sector had reached some 10%, equivalent to 643,000 mWh, of the national demand. Recent experience in EU countries has shown that energy consumption in office building can be reduced by 50 to 80%, while maintaining a similar level of quality for the user. EU countries have adopted a wide range of measures to promote energy conservation, including:
Energy certification of buildings;
Efficient operation of building energy systems;
Energy labeling of appliances; and
Insulation standards
Many of these same concepts can be utilized in Macedonia, due to the similarity in building construction and materials used. The costs of the program will depend upon the number of improvements needed, and how many buildings will be targeted. Estimates would range from $5,000 to $10,000 per building. A conservative estimate of savings would provide savings of 15 to 20% of the electrical energy used in buildings resulting in typical payback periods that range between 2 to 4 years. It is reasonable to assume that a $10,000 improvement package would save approximately $3,000 to $3,500 (depending upon the condition of the building and the improvements selected), resulting in roughly a 3 year payback period. Financing of energy programs for commercial buildings will have to come from commercial banks, ESCOs, IFIs or through the Energy Efficiency Fund. Assuming that the implementation of this Program starts at the beginning of the period considered i.e., 2004 to 2020, it will result in a total savings of 28,411 MWh by year 2020. The Net Present Value of the Program is estimated to be approximately $1,373,304. Institutional Buildings Program Institutional Buildings represent approximately 4.4% of the national electric energy consumption, or approximately one tenth of the consumption in Residential Buildings. The size of institutional buildings population is certainly smaller than one tenth of the Residential Buildings population, which confirms what generally indicated by the experience in other countries: energy in Institutional Buildings is consumed even less efficiently than in Residential Buildings. The reason for this is to be found, at least partially, in the fact that in Institutional Buildings, the users of energy generally are not responsible for paying the energy bills. Another important factor, characteristic of energy consumption in Institutional Buildings, is energy efficiency can be dictated by state or local government while they can only be encouraged in other building categories. This allows the possibility of a much quicker and uniform implementation. Also, the financing aspect of the implementation could present a less complicated situation than the case of privately owned buildings: the government could finance directly from its own budget, or obtain loans from IFIs or private commercial banks at better terms and conditions than those offered to the general public. Other sources of financing may include third party financing through ESCOs and/or the Energy Efficiency Fund. Finally, the high public visibility of energy efficiency applications implemented in these buildings will certainly encourage duplication. All these reasons make Institutional Buildings a primary target for energy efficiency interventions. Energy efficiency interventions in Institutional Buildings can be grouped into four categories:
Interventions on the building envelope 5
Interventions on the heating system, including building controls and substation improvements
Interventions on specific building services
Interventions on the lighting System
The first two categories, i.e., the interventions on building envelope and on heating systems, are identical to those described above in the Residential Building Program. Assuming that the implementation of this Program starts at the beginning of the period considered in this Energy Policy (i.e., 2004 to 2020), it will result in a total estimated savings of 27,662 MWh by year 2020. The Net Present Value of the Program is estimated to be approximately $1,136,190. D. Specific policy barriers to successful investments into the identified projects:
The main policy tools include compulsory and voluntary measures and incentives, as well as promotion and technical support. In the compulsory measures could be included for example compulsory insulation standards, compulsory energy certification of existing buildings, compulsory energy audits, emission limits for CO2, CO, minimum efficiency limits for space heating boilers, etc. As voluntary measures can be understood tax deduction for the installation of solar systems, grants for energy efficiency investments undertaken by large energy consumers, etc. Promotional support envelope publicity campaigns in mass media, free of charge energy audits, establishment of consumer’s information centers etc. The success of an energy policy depends on the mixture of measures that are selected for each case. The main problem is that enforcement in practice of compulsory measures is very difficult, especially in the private sector. Therefore, any measure of this category should be accompanied by information dissemination campaigns and other promotional activities. Energy performance is not only the concern of the building owners and designers, but also of the national government and the eventual users. Design requires the active participation of a large number of professionals including the client. 2. Policy reforms that allowed project implementation A. Policy reforms applied to overcome the bottleneck or barrier to investment: The priority policy objective and strategic interest of the Republic of Macedonia is full membership in the European Union. The EU signed a Stabilization and Association Agreement with FYR Macedonia in April 2001, and the country put up an official application for EU membership in March 2004. In December 2005, Macedonia received the status of an official EU candidate, although recently decision was made about opening accession negotiations. The Energy Law and its amendment adopted 2008 comprise the main legislation for the sector, stipulates a national policy for energy that emphasizes, amongst others, the importance of the following:
Increasing the use of natural gas, as a priority ecological fuel;
Incorporating energy efficiency into construction standards for buildings;
Allocating necessary financial resources to realize the intentions of this law;
Identifying opportunities for efficient use of energy; and
Adopting measures and activities for realization of all of the above. 6
More specifically Energy Law gives clear impetus for an energy efficiency program. Clause 17states, “the Government of the Republic of Macedonia approves a long-term program on efficient energy utilization”. The obligation to identify the potential for efficient energy use also emanates from this clause. In particular it refers to the need to pursue the creation of:
Information and educational activities for increasing energy efficiency;
Incentives for increasing energy efficiency;
Legislative and other regulatory measures which will increase energy efficiency;
Activities that support the compliance with the energy efficiency components of international agreements.
Law prescribes that in order to realize a program for efficient energy utilization, the Government of Republic of Macedonia shall establish a Fund for Energy Efficiency. The Law for Local Self-Government, adopted in May 2002, transfers authority to local governments. Among other obligations this law states that the municipality is responsible for:
Supply of natural gas and thermal energy
Urban planning and issuing of building permits
Protection of the environment and of the nature
Local economic development
Maintenance of local schools, clinics and government buildings
The municipality, acting responsibly under its new-delegated authorities could work to increase the energy efficiency in the schools, public health institutions, public offices and other public enterprises and should be allowed to keep the savings from reducing energy costs. The Law on Construction of buildings also does not include precisely defined provisions that would impose on the investor the obligation to observe any energy efficiency standards. This law does say that the technical documentation should define the concept and the technical specifications for the building project, as well as the plans for its construction. Among the requirements for technical documentation, the new Construction Law does make it compulsory to provide an estimate of the consumption of energy only in projects of the following categories: 1. Building out of category (building of special importance for the technical-technological development of the country or for environment and working space protection) and; 2. Buildings of third and fourth category (defined as complex and very complex buildings). Note, this is significant to the extent that this definition includes most commercial and multi-family new construction. The Law on prescription of the technical requirements of the products and the evaluation of their suitability ("Official Gazette of RM" no. 53/02) defines the regulations that dictate the technical requirements of ‘products’. However the actual implementation of this regulation has been limited. A current version of this regulation governing the standards related to heating techniques and thermal insulation, however, refer mainly to calculation methods rather than to minimum insulation requirements and, in any case.
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B. Policy and regulatory preconditions for implementation of the policy reforms Successful implementation of the EES will depend on a broad range of Macedonian entities including business, local and central government and the public at large. Gaps exist in the existing institutional framework: •
There is a shortage in human resource capacity with appropriate knowledge and experience in energy efficiency activities.
•
There is a lack of policy/regulations pertaining to codes and standards for end use consumption and associated technology
•
The Private Sector can play a key role in implementation
•
An Energy Efficiency Fund can be set up finance implementation of the Strategy
The range of regulatory and administrative measures encouraging energy efficiency might include elaboration of guidelines and supporting legislation, instructions on the minimal level of acceptable energy efficiency and standards and labels. Other policy measures could encourage: standardization of equipment, education and training of personnel, quality of technical documentation. Building Energy Code for New Construction Energy efficient building codes are an effective policy tool for new construction. When properly designed and implemented, building energy codes yield lower building operating costs and more comfort, with little to no additional investment in the construction phase. A building code, targeting new construction, can potentially affect a large number of buildings and since buildings will last between fifty to one hundred years, the energy savings will be significant, providing savings throughout the life of the building. Retrofitting or remodeling buildings is costly and time consuming. It is much better to make sure that all new buildings are built as energy efficient as possible, within a reason range of cost-effectiveness. This is especially true for the building components themselves, the materials that make up the walls, roof, windows and doors. In new buildings, these materials can be utilized for no extra installation cost. The only cost differential is the cost difference between the standard materials and the energy efficient materials. Typically the cost differential is not that large, and without additional installation costs, building energy efficient buildings is not difficult nor technically challenging. Mandating energy efficiency in new building construction could save approximately 20 to 30% of the annual heating energy consumption for each building. Energy Standards and Labelling Energy standards are an effective method to initiate energy efficiency in the consumer market. As more and more products are purchased, by an ever-increasing middle class that can afford new refrigerators, air conditioners, boilers, televisions, clothes washers, water heaters, etc., the potential exists to immediately begin to implement energy efficiency. Another effort that needs to be undertaken to implement this effort is the selection of a testing laboratory, where the products can be tested to determine their annual energy consumption. Energy Auditor Certification Program Buildings consume a significant amount of energy, with much of it going towards space heating. While eliminating building annual energy consumption is not practical, the typical building can reduce its space heating and space conditioning energy consumption significantly by various means. 8
This group of energy auditors should be trained and certified, so that the same standards are applied uniformly across the country. It is anticipated that the major demand for audits would be in commercial and institutional buildings and industry, followed by residential buildings. Fiscal and Tax Incentives These sorts of initiatives fall into the following generic categories:
Rationalized pricing of energy sources and tariff policy,
Taxation policy lower tax or no tax on energy efficient equipment and household appliances
Favourable custom duties for energy efficient equipment
Mobilizing capital for creation of investment funds
Guarantees for commercial banks
Regulations and standards on rational energy use
Public information and awareness campaigns C. Stakeholders involved and their roles in promoting the policy reforms
Energy efficiency must be pursued through a partnership approach with the private sector leading implementation as appropriate and the government promoting policy and developing the resources, both manpower and financial, needed to educate and train personnel and to stimulate replication throughout the target sectors of the economy. It is not necessary for the government to shoulder all the responsibility for delivering such institutional initiatives. Third parties from the private or educational sectors could undertake implementation initiatives -for example the conduct of training courses for energy efficiency professionals. The consensus opinion is that one of the most significant areas for action, and the sector that may have the greatest incentive to introduce energy savings is households. Therefore, a lot of attention will be given to the prospects and possible arrangements for municipal and residential energy efficiency activities, including targeted assistance for low income households. Implementation of the policy reforms Implementation will be initiated at many levels of the economy depending on the incentives and support that national government puts in place. Municipalities that are allowed to reinvest their budgetary savings, businesses that are given tax credits, consumers who receive subsidized weather-stripping or financing for more efficient or electric-substituting devices will all be more active participants when the strategy is “managed”. As many of the selected implementation programs show positive cost benefits then it is inappropriate for the government to subsidize their implementation. However, as there is a limited understanding and insufficient availability of trained personnel, it will be appropriate for the government to play leading coordinating role in developing outreach and training programs to accelerate the implementation process. Similarly, the institutional buildings program can help establish a market for ESCOs, if the government uses them to implement energy efficiency in its own facilities.
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3. IMPLEMENTATION OF THE PROJECTS A,B,C,D: Technical, Financial and Assessment Methodology Description, Economic, Financial and Social benefits of the projects At the beginning of 2004 in the Republic of Macedonia USAID launched energy efficient project in tree selected municipalities. The objective of the project carried out by EnCon Services International, Macedonian Centre for Energy Efficiency and TIMEL Project Engineering were to: • • • • • • • • •
design pilot projects with type of EE measures, select public buildings, perform Energy auditing to determine appropriate and cost-effective measures for each building, replace and install of low-energy windows (double glazing), improve of insulation of the existing windows, install thermal insulation on exterior building walls by renovating building’s façade and thermal floor and roof insulation, reconstruct and repair of existing systems for area heating, replace of heating system, implement of measures for lighting systems savings.
Also within the project numerous additional activities were developed as well as Youth Employment Program and Preparation of Applications to Municipality EE Program. Implementation of EE measures in the selected pilot projects were carried out by youth employment program for installation of weatherization and insulation while licensed contractors were hired for implementation of other proposed EE measures. Results of project activities: • • •
Thermal scanning of buildings belonging to the municipalities of Saraj, Veles and Kicevo was performed to identify buildings from pilot projects, More than 30 buildings were scanned and analyzed, 5 buildings in 3 municipalities were selected for the pilot projects.
Relating Installation conditions in the buildings energy auditors identified: • • • • •
Poor condition of heating system installations / Risky systems Electric installations are obsolete and risky Irregular maintenance and often neglected systems Lack of interest/awareness for energy efficiency at schools Needed investments for EE improvements much larger than pilot projects investments
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Energy Audit L o c a t io n
S a ra j
B u ild in g
B o ris K id ric P rim a ry S c h o o l M u n ic ip a l S tre e t L ig h tin g K o le N e d e lo v s k i H ig h S c h o o l
V e le s
J . H . K o n s ta n tin o v D z in o t P rim a ry S c h o o l M irk o M ile s k i H ig h S c h o o l
K ic e v o
F a ik K o n jic a P rim a ry S c h o o l V illa g e o f T ra p c in D ol
S e n io r H o m e
M easu re R e p a ir a n d re p la c e m e n t o f w in d o w s S e rv ic e a n d re c o n s tru c tio n o f b o ile r p la n t a n d th e rm a l h e a tin g in s ta lla tio n R e p la c e m e n t o f s tre e t lig h tin g in M u n ic ip a lity S e rv ic e a n d re c o n s tru c tio n o f b o ile r p la n t a n d th e rm a l h e a tin g in s ta lla tio n In s ta lla tio n o f th e rm a l in s u la tio n o n c e ilin g In s ta ll th e rm a l in s u la tio n a t c e r ta in p a rts o f b u ild in g R e p la c e m e n t o f e le c tric in s ta lla tio n a n d lig h tin g s y s te m R e p la c e m e n t o f e le c tric in s ta lla tio n a n d lig h tin g s y s te m
In s ta ll in s u la tio n ta p e o n w in d o w s a n d e x te rn a l d o o rs In s u la te w in d o w s o p e n in g s In s ta ll th e rm a l in s u la tio n o n ro o f c e ilin g
C o st E s tim a te 1
A nnual S a v in g s E s tim a te
P ayback (y e a r s) 1
$ 8 ,3 6 0
$ 2 ,6 7 6
3 .1
$ 1 0 ,9 9 0
$ 2 ,2 3 4
4 .9
$ 7 7 ,5 0 0
$ 1 5 ,8 0 0
4 .9
$ 3 6 ,1 4 0
$ 6 ,7 0 9
5 .4
$ 1 ,8 1 2
$664
2 .7
$ 1 5 ,4 3 0
$ 3 ,8 1 0
4 .0
$ 4 1 ,9 1 0
$ 1 3 ,8 0 0
3 .0
$ 1 ,9 8 0
$662
3 .0
$800
$276
2 .9
$ 1 ,2 4 0
$877
1 .4
$ 2 ,6 4 0
$ 1 ,4 8 7
1 .8
Results of completed projects: Boris Kidric primary school Municipality of Saraj Heating Oil Savings: 5,988 liters / year Cost Savings: $4,910 / year Budget: $19,350 Investment: $18,429 Simple Payback: 3.75 years Senior Home Municipality of Kicevo Heating Oil Savings: 3,220 liters / year Cost Savings: $2,640 / year Budget: $4,680 Investment: $4,569 Simple Payback: 1.73 years Mirko Mileski high school Municipality of Kicevo Electricity Savings: 120,000 kWh / year Cost Savings: $13,800 / year Budget: $41,910 Investment: $40,876 Simple Payback: 2.96 years J.H. Konstantinov Dzinot primary school Municipality of Veles Heating Oil Savings: 810 liters / year Cost Savings: $664 / year Budget: $1,812 Investment: $1,792 Simple Payback: 2.70 years
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Kole Nedelkovski high school Municipality of Veles Heating Oil Savings: 5,236 liters / year Electricity Savings: 21,000 kWh / year Cost Savings: $6,709 / year Budget: $36,140 Simple Payback: 5.38 years Project Results – Municipality of Kicevo
350 300 250 200 150 100 50 0
Recommended lighting level = 150 Lux
$50,000 $40,000 $30,000 $20,000 $10,000 $-
Before Intervention
Electricity Cost, $/yr
Lighting level and electricity consumption
Mirko Mileski Lighting Retrofit
After Intervention
Electricity consumption, kWh/student/year
Classroom level, lux
Electricity cost
Lighting levels increased by 8.5 x Electricity consumption decreased by 30%
The Successful Approach to Energy Efficiency Starts at the Municipal Level • Energy efficiency (i.e., inefficiency) is a local problem and must be solved at the local level • Financing options include grants, debt financing and leasing Benefits to Municipality from Energy Efficiency Investments •
Feasible energy efficiency projects can: Service municipal project loans Reduce budget for energy and narrow the gap between capital resources and social responsibilities – i.e., provide substantial social and health benefits
•
Project implementation improves municipal infrastructure
•
Financially viable street light lighting projects can Decrease crime rates Decrease traffic accidents at night Increase quality of life in the city
•
Bankable energy efficiency heating projects at schools, kindergartens and elderly facilities can Increase building heating levels to western standards Increase comfort and health of the elderly Increase health of children at schools due to reduced fluctuations in heating and improved air flow 12
As a positive result of implemented projects international donor community continue to support EE projects in the municipalities. Recently, similar activities including energy audit, identification of buildings and implementation of EE measures are caring out in 200 buildings in the area of capital city. Project is financed by USAID and it is upgraded by guarantee scheme in amount of 10 mil US$ for credits for implementation of EE projects in the municipalities which fulfill conditions of second stage of fiscal decentralization. Also, two years consequently our Government provides subsidies in amount of 300 Euros for installation of solar collectors for hot water for about 1000 householders. Aplied methodology is similar as in previous set of projects. Namely, auditors use Methodology and Calculations utilizing ENCON Key Number version 7.0 Software, a licensed software of ENSI, a Norwegian consulting engineering company specialized in energy conservation of buildings. The process of evaluating and implementing profitable energy conservation (ENCON) measures in the building is often described as the ENCON process. Each building is unique and each project must be treated separately to find individual energy conservation possibilities. The building owners might have various plans for renovation and different requirements on the profit of ENCON measures. Hence the total ENCON process is divided into six main activities as illustrated in the flow chart.
1.
Project Identification
2.
Scanning
3.
Energy Audit
4.
Business Plan
5.
Implementation
6.
Operation
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Continuation of the new EE Project within the USAID proeject for energy audit in 200 public buildings .Foolows are brief description of some audited but not yet completed projects: Project 1: Energy Efficiency Project in the Secondary School Josif Josifovski in the Municipality of Gevgelija Description: The energy consumption of the Josif Josifovski school is approximately 100 530 kWh/year for electric power and 606 900 kWh/year for fuel oil (totally 127,67 kWh/m²). According to the Energy Audit Report, there is considerable ENCON Potential : Calculations are made utilizing ENCON Key Number version 7.0 Software, a licensed software of ENSI, a Norwegian consulting engineering company specialized in energy conservation of buildings. ENCON Potential - Energy Audit Building: Josif Josifovski Secondary School Energy conservation measures
Project no: Gevgelija_01 Investment [Denars]
1. Roof insulation
Heated area: 6000m2
Net saving [kWh/yr]
Payback
[Denars/yr]
NPVQ*
[year]
1 488 000
182 944
768 360
1.9
8.1
200 000
56 484
237 230
0.8
8.69
3. PVC windows installation
3 720 000
317 846
1 334 950
2.8
3.94
4. O&M/EM – energy supply efficiency
1 300 000
511 365
2 147 730
0.6
17.57
Total all measures
6 708 000
1 068 639
4 488 270
1.5
Profitable ENCON measures 2. Automatic control
The report elaborates on energy efficiency measures that result in energy savings with total payback time of 1.6 years and energy saving potential of 60% - 65%. Project 2: Energy Efficiency Project in the kindergarden “Koco Racin” in the Municipality of Centar Skopje The energy consumption of the “Koco Racin” kinder garden is approximately 7130 kWh/year for electric power and 250000 kWh/year for fuel oil (totally 257,130 kWh/m²). The energy potential for each ENCON and renovation measure is summarised in the following table. ENCON Potential - Energy Audit Building: “Koco Racin” kinder garden on st. “Tasino Cesmice” Energy conservation measures
Project no: Centar_01
Investment [Denars]
1. Renewable energy solar instalation 2. New sanitary pipes
610000
Heated area: 1000 m²
Net saving [kWh/yr] 1856
Payback
[Denars/yr] 11600
NPVQ*
[year] 52,6
68200
-0,78 -1,0
Profitable ENCON measures 1. Roof insulation
360000
35203
147850
1,3
4,82
2. New PVC windows instalation
706800
42326
177770
4
2,55
60000
11179
46950
1,3
4,82
740000
89157
374460
2,0
3,99
2545000
177864
758630
3,4
3. Automatic control 4. Energy supply efficiency Total all measures
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4. CONCLUSIONS AND RECOMMENDATIONS It is envisaged that the activities for efficient energy usage in the buildings to be directed towards:
Enlarging the existing and building new heating systems, primary in the larger urban areas, with economically justified heating density;
Creating conditions for more rapid and intensive including of the buildings in the gas line system;
Using the geothermal waters for the buildings needs in the regions where this energy is exploited; intensive usage of solar energy etc.;
Weatherization of older buildings;
Developing regulation, standards and other acts;
Intensifying promotional activities: Informational and Educational activities, Publications and brochures etc.
Development of e new Regulation for obligatory maintenance, testing and auditing of building energy systems and auditors;
Adopt the Council Directive for minimum efficiency requirements;
Development of a new Compulsory Thermal Insulation Regulation for new buildings – Rational Use of Energy in Public Buildings;
Regulation have to be in harmony with similar EU standards;
To add Legislative Regulation for control mechanisms for implementation of these standards;
To prepare an Act for rational Use of Energy in Public Buildings, foreseeing preparation of studies and designs for weatherization/rehabilitation of older public buildings escorted with Action plan and priorities (hospitals, schools, courts, administrative buildings and so far).
To build capacity of few SMEs in the field of application of building energy efficiency measures (thermal insulation, weatherization etc) (even licensing them), to ensure proper conduction of proposed measures. To ensure proper audit of their work by appointed persons or institution.
Adopt directive for marking of space heating boilers;
To develop legislative acts or regulations for energy certification of buildings.
Technical guides to constructors and engineers on thermal insulation and design of energy efficient buildings;
Information campaign to the general public on thermal insulation as an energy efficiency measure;
Set up infrastructure for testing laboratories (boilers, building materials, radiators, appliances).
Energy labeling of appliances
15
