Ivan Paladina: Investing in energy renovation brings significant savings to citizens, even more to companies

As part of the Government’s autumn package of measures to assist citizens and the economy, and at the initiative of the Ministry of Physical Planning, Construction and State Property, a significant step has been made in promoting energy efficiency, according to Minister Ivan Paladina. A conclusion has been accepted which ensures almost one billion kuna for energy renovation and increasing energy efficiency of multi-family buildings and family houses by the end of next year.

This is a significant increase compared to previous funds allocated for promoting energy efficiency.

– Compared to previous years, when an average of two hundred million kuna was allocated for this purpose, this fivefold increase, according to our estimates, can energetically renovate 10,000 family houses or three hundred multi-family buildings. Judging by the response to previous calls for energy renovation, it is clear that citizens are very interested and that many of them already have prepared documentation, so these projects could be realized in a short time.

It is necessary to promote energy efficiency and self-sufficiency in Croatia, so in addition to energy renovation of residential buildings with renewable energy sources, we are improving energy efficiency. To this end, a conclusion regarding the encouragement of investments in solar power plants has also been accepted, which will facilitate the legal procedure for investing in solar power plants. Legislative frameworks will be amended to simplify obtaining the necessary documentation for installing solar power plants and to allow the expansion of areas where the construction and installation of solar power plants are permitted, which will greatly contribute to increasing energy independence.

Why should citizens and companies opt for energy efficiency?

– Energy prices in Croatia have long been below the European average, but recently, given the current situation in the world, they have significantly increased here as well. Current government measures greatly ease the lives of citizens in this energy crisis, but it is essential to implement energy efficiency and self-sustainability measures in the long term. Investing in energy renovation of properties brings significant savings to citizens, allowing for a noticeable reduction in household expenses for heating and cooling energy costs.

These savings are even more pronounced in companies that are larger consumers, and in addition, they save on hot water consumption, i.e., DHW, and lighting. Besides savings in the household budget, investing in energy renovation brings multiple benefits, which are reflected in increased property values, improved external appearance of properties, contribution to internal comfort of spaces, reduction of health and poverty risks, and increased energy supply security. At the economic level, energy efficiency results in construction and production activity, employment, and budgetary effects in the form of increased disposable income, i.e., reduced energy consumption and imports.

What incentives are most commonly sought?

– Since as much as 34 percent of multi-family buildings in continental Croatia fall into the category of those with the worst energy characteristics, citizens generally start with simpler energy renovation measures. To make energy renovation projects of multi-family buildings eligible for co-financing under public calls conducted by the Ministry of Physical Planning, Construction and State Property, it is mandatory to implement construction measures that will enable savings of at least fifty percent of the necessary thermal energy for heating according to the main project of rational energy use and thermal protection of the building.

In specific cases, this involves a combination of several energy efficiency measures, and it necessarily includes one or more measures on the building envelope, where users primarily opt for the renovation of envelope elements, i.e., thermal insulation of external walls and roofs, as well as the replacement of external joinery. Contracts are currently being signed with users for the Call for the allocation of non-repayable funds ‘Energy renovation of multi-family buildings’, which ended in August and is co-financed by the National Recovery and Resilience Plan.

More than ninety buildings across sixteen counties and in the City of Zagreb have received non-repayable funds. The Call has seen an increase in the number of requests for the installation of new or replacement or improvement of existing technical systems of the building and the use of renewable energy sources in heating, cooling, and/or preparation of hot water systems. According to current data, approximately ten percent of users of approved projects plan to implement measures on technical systems and introduce renewable energy sources, while more than fifty percent of users of approved projects intend to implement some horizontal measures along with energy efficiency measures, such as installing elements of green infrastructure like landscaping on the building plot, achieving sustainable urban mobility by setting up bicycle parking, and implementing measures to ensure accessibility for persons with disabilities and reduced mobility by installing elevators, ramps, etc.

How much can be saved by applying energy efficiency solutions, according to indicators?

– According to data from the latest published Call, a multi-family building will save about seventy percent. Available analyses show that in buildings that meet the condition of saving the necessary energy for heating of at least fifty percent after renovation, at least thirty percent of primary energy will be saved compared to the energy needed before renovation. It is also important to note that savings in energy consumption, and consequently financial savings, largely depend on the behavior and responsibility of end users.

With whose help can interested parties finance such projects?

– Citizens have recognized the benefits of energy renovation as the allocation in all previous competitions has been utilized very quickly, indicating high interest. Due to the significant increase in funds, from one billion kuna for next year, we expect applications from citizens who already have prepared projects and those who will decide to undertake energy renovation in the Ministry’s calls. The Environmental Protection and Energy Efficiency Fund also conducts calls for investments in renewable energy sources, so all interested citizens can follow announcements about applications on the Ministry’s website.

Additionally, Ministry staff are available to answer questions and provide advice via email to interested citizens or at informational workshops we organize. It is important to emphasize that, taking into account comprehensive and sustainable post-earthquake reconstruction, at the end of September, the Fund announced a Public Call for co-financing energy renovation of family houses damaged in the earthquake, for which one hundred million kuna has been secured for implementation. Energy renovation of family houses damaged in the earthquake will be co-financed up to eighty percent, and this will occur after the implementation of structural repairs and/or after repairs of non-structural elements or simultaneously with them. This program is planned to be implemented in 2023 and 2024, considering the expected pace of structural reconstruction from the earthquake.