Last week, we discussed the topic of incentives for the improvement of energy efficiency and energy improvement/rehabilitation, and possibilities for individuals and housing communities in that regard. This time we would like to glance at incentives for energy improvement/rehabilitation for housing communities– residential and residential–commercial buildings connected to district heating systems, which may be obtained through the project called „Energy improvement/rehabilitation of residential, multi-family buildings connected to district heating system– Public ESCO Project“ which is initiated by the Ministry of Mining and Energy in collaboration with the European Bank for Reconstruction and Development.
The idea behind this project is to significantly reduce the wastage of energy, to improve the energy efficiency of buildings and improve their visual impression at the same time (through rehabilitation of facades and roofs), and to enable the transfer of energy bills to charge based on consumption for those consumers who are still paying heating based on flat rate, all through energy improvement/rehabilitation by conducting work on the rehabilitation and insulation of building shells (facade), rehabilitation and insulation of roofs, and installation of thermostatic valves and dividers of heating (energy).
Analysis connected to the project shows that it is possible to save an average of 35% of energy by energy improvement/rehabilitation of building shells (walls, i.e., façade and roof), while in the case of replacement of old windows, energy savings go up to 55%. This percentage also shows savings in the heating costs.
It was assessed that without energy improvement/rehabilitation, the heating bills of a large number of citizens would be significantly increased in case of transfer of heating bills to charge based on consumption, and to prevent such a scenario, it is planned under this project to grant incentives for the mentioned energy improvement/rehabilitation that goes up to 50% of the value of an investment, while the citizens – members of housing communities–would repay the remaining 50% of investment through reduced heating bills (bills would be based on consumption after the measure of energy improvement/rehabilitation is implemented) within the period of 10 years. Thus, the financial burden of housing communities may be acceptable to all tenants, that is, all members of the housing community.
The project was implemented with the cooperation of the Ministry of Mining and Energy and local self-government units. Based on data published on the website of the Ministry of Mining and Energy, 16 self-government units are currently in the process of realizing public invitations for interested housing communities.
For more information on the project, you can visit the website of the Ministry of Mining and Energy.
As per the City of Belgrade, the public invitation was published in November, and interested housing communities could submit their applications by December 26, 2023.
Apart from the fundamental condition that the housing community is connected to the district heating system of the utility company in the City of Belgrade, the public invitation specifies additional conditions for the participation of housing communities.
As per the selection criteria, the main criteria are the specific heating consumption of the building, whereby this data is obtained from the appropriate utility company, then comes the percentage of votes of members of the housing community that voted in favor of applying compared to the total number of votes of members of the housing community, and a couple more criteria that bear fewer points than the first two criteria.
What we would like to single out as especially important, and what could significantly encourage members of housing communities to vote in favor of applying to their housing community within this public invitation, is the fact that the public invitation is published to participate in housing communities in the selection of housing communities that may be candidates for energy improvement/rehabilitation. This means that even if their housing community is selected in the process, it is not obliged to pay anything, and it is not obliged to subsequently enter into a contract for financing energy improvement/rehabilitation. Namely, the Ministry of Mining and Energy and the City of Belgrade shall offer the possibility to participate in the project to selected housing communities; that is, they shall provide them with conditions for participation in the project, while the housing communities are free to accept such a proposal.
By Marija Vukcevic, Senior Associate, JPM Partners
