Administration Agreement between the European Commission and the International Bank for Reconstruction and Development concerning the Part II Europe 2020 Programmatic Single-Donor Trust Fund Trust Fund (No. TF072592) (EC Contract No. 2018.CE.16.BAT.061) Energy Efficiency of Public Buildings in PreÅ¡ov region Regulatory and Institutional Framework Diagnostics and Overview Report January 2019 Regulatory and Institutional Framework Diagnostics and Overview Report Table of Contents ABBREVIATIONS & ACRONYMS.............................................................................................................................. 1 ACKNOWLEDGEMENT ............................................................................................................................................ 2 1. INTRODUCTION ............................................................................................................................................. 3 2. REVIEW OF LAWS, REGULATIONS, POLICIES AND RESOLUTIONS RELATING TO ENERGY USE AND ENERGY EFFICIENCY............................................................................................................................................................. 4 2.1. SLOVAK NATIONAL POLICIES, LAWS, REGULATIONS, PROCUREMENT AND BUILDING CODES ................................................4 2.1.1. Energy Policy of Slovakia .....................................................................................................................4 2.1.2. National Legislation for Energy Efficiency ...........................................................................................5 2.1.3. National Legislation and Codes Applicable to Buildings ......................................................................5 2.1.4. National Legislation Related to Public Procurement ...........................................................................5 2.2. PREÅ OV REGION POLICIES, LAWS AND REGULATIONS AND PROCUREMENT POLICIES .........................................................6 2.3. COMPLIANCE OF SLOVAK ENERGY LAWS WITH EC REGULATIONS AND GUIDELINES ..........................................................6 2.3.1. EU – Energy Efficiency Directive (EED) of 2012 ....................................................................................6 2.3.2. Nearly Zero Energy Buildings (nZEBs). .................................................................................................8 2.4. ENFORCEMENT OF LAWS, REGULATIONS AND BUILDING CODES ...................................................................................9 2.5. FLEXIBILITY IN FUEL PURCHASE ............................................................................................................................9 2.6. KEY TAKEAWAY FROM REVIEW OF LAWS AND REGULATIONS......................................................................................9 3. ENERGY EFFICIENCY IN SLOVAKIA ................................................................................................................ 11 3.1. ENERGY EFFICIENCY ACTION PLANS ....................................................................................................................12 3.2. THE FOURTH EEAP - NATIONAL ENERGY SAVINGS TARGETS AND EE ACHIEVEMENT ......................................................13 3.2.1. Targets for energy savings ................................................................................................................13 EE Targets from the 4th EEAP ............................................................................................................................................ 13 Energy savings in primary energy consumption ............................................................................................................... 14 Energy efficiency measures in the buildings sector .......................................................................................................... 15 Energy efficiency measures in the public sector .............................................................................................................. 16 3.2.2. Financing for EE .................................................................................................................................17 Overall EE measures and financing in 2014-2016 ............................................................................................................ 17 Energy efficiency from Energy Services (EPC) .................................................................................................................. 19 Energy efficiency in public sector buildings ...................................................................................................................... 19 3.2.3. Energy efficiency measures planned for 2017-2019 with an outlook up to 2020 .............................20 Measures planned in the private buildings sector ........................................................................................................... 20 Measures planned in the public buildings sector ............................................................................................................. 20 3.3. SOURCES OF FINANCING FOR ENERGY EFFICIENCY IN SLOVAKIA ................................................................................22 3.3.1. ELENA Facility ....................................................................................................................................22 3.3.2. The European Energy Efficiency Fund (EEEF) .....................................................................................23 3.3.3. MUNSEFF & SLOVSEFF .......................................................................................................................23 3.3.4. Energy Service Companies (ESCOs) ....................................................................................................23 3.3.5. Amendment to Public Procurement Laws..........................................................................................23 3.3.6. Covenant of Mayors ..........................................................................................................................24 3.4. KEY TAKEAWAY FROM REVIEW OF EE IN SLOVAKIA ................................................................................................24 4. INSTITUTIONAL STRUCTURE FOR THE ENERGY AND EE SECTOR IN SLOVAKIA.............................................. 26 4.1. PUBLIC SECTOR INSTITUTIONS............................................................................................................................26 4.1.1. Ministry of Economy ..........................................................................................................................26 4.1.2. Ministry of Transport and Construction ............................................................................................27 4.1.3. Slovak Innovation and Energy Agency (SIEA) ....................................................................................27 4.1.4. Ministry of Finance ............................................................................................................................27 4.1.5. Slovak Guarantee and Development Bank ........................................................................................28 4.2. PRIVATE ENTITIES SUPPORTING EE IN SLOVAKIA....................................................................................................28 4.2.1. ESCO Association of Slovakia .............................................................................................................28 4.2.2. Green Building Council (GBC).............................................................................................................29 4.2.3. Technical University, KoÅ¡ice & Bratislava ..........................................................................................29 4.2.4. District heating and electricity company, PreÅ¡ov ..............................................................................29 4.3. PREÅ OV REGION PROGRAMS AND BUDGETS FOR IMPROVING EE IN PUBLIC BUILDINGS ...................................................30 5. EXISTING STOCK OF PUBLIC BUILDING IN PREÅ OV REGION.......................................................................... 31 5.1. PUBLIC BUILDINGS CHARACTERIZED BY TYPE OF BUILDING ........................................................................................31 5.2. ENERGY USE IN PUBLIC BUILDINGS IN PSK ...........................................................................................................32 5.2.1. Energy use and expenditure in Public Schools ...................................................................................35 5.2.2. Energy use and expenditure in Social Service Facilities .....................................................................36 5.2.3. Energy use and expenditure in Cultural Facilities ..............................................................................38 5.2.4. Energy use and expenditure in Regional Roads Adminsitration ........................................................40 5.2.5. Energy use and expenditure in Administrative Buildings ..................................................................41 5.3. OPPORTUNITIES FOR IMPROVING ENERGY USE IN PUBLIC BUILDINGS IN PSK ..............................................................42 5.3.1. Energy Savings Potential in Schools ..................................................................................................44 5.3.2. Energy Savings Potential in Social Facilities ......................................................................................44 5.3.3. Energy Savings Potential in Cultural Facilities ...................................................................................45 5.3.4. Energy Savings Potential in Administrative Buildings .......................................................................46 6. NEXT STEPS FOR SUB-ACTIVITY 2.1.2 ........................................................................................................... 48 Appendix 1: Legislation related to EE in buildings and building codes and standards for Slovakia ............................. 49 Appendix 2: Legislation for Public Procurement in Slovakia ........................................................................................ 51 Appendix 3: Legislation on Fuel Purchase ................................................................................................................... 52 Appendix 4: Public Building Improvement Projects financed under the Operational Programme Quality Environment (OP QE) ........................................................................................................................................................................ 53 Abbreviations & Acronyms CEB Council of Europe Development Bank EC European Commission EBRD European Bank for Reconstruction and Development EE Energy Efficiency EEAP Energy Efficiency Action Plans EED Energy Efficiency Directive EEEF European Energy Efficiency Fund EERP European Economic Recovery Program EIB European Investment Bank ELENA European Local Energy Assistance EMS Energy Management System EPC Energy Performance Contract ESCO Energy Service Companies ESIF European Structural Investment Funds EU European Union FMD Facility Management Department GWh Giga Watt hours IPMVP International Performance Measurement and Verification Protocol IROP Integrated Regional Operational Programme JESSICA Joint European Support for Sustainable Investment in City Areas MoE Ministry of Economy MWh Mega Watt hours MUNSEFF Municipal Energy Efficiency Support Instrument MLEI Mobilization of Local Energy Investments MoF Ministry of Finance NZEBs Nearly zero-energy buildings OP QE Operational Programme Quality of Environment PJ Peta Joules PSK PreÅ¡ov Self-Governing Region RRA Regional Roads Administration SIEA Slovak Innovation and Energy Agency SLOVSEFF Slovakia Energy Efficiency Support Program TWh Terra Watt hours WB World Bank 1 Acknowledgement This report was prepared by a core team comprised of Janina Franco and Anand Subbiah and was supported by Milan Macko. The work was coordinated by Paul Kriss, Marcel Ionescu-Heroiu, and Grzegorz Wolszczak, Vladimír BenÄ?, and Agnieszka Boratynska. The team would like to thank the PreÅ¡ov Self-Governing Region (PSK) for its support to the project and the core team from the Facilities Management Department of PSK. In particular, the team expresses thanks to Vladimír GreÅ¡Å¡, and Katarína Imríchová who provided valuable inputs to the report. The team would also like to thank the ENECO consulting company which undertook surveys of public buildings under the direction of the PSK team. Thanks are also due to Jozef Å vagerko the Mayor of Poprad, Pavol KubiÄ?ko Popradská Energetiká SpoloÄ?nosÅ¥, Ján Stanek from Chastia, Marcel Lauko of the Energy Center Bratislava, Ladislav Pirsel of the Green Building Council, Martin Polónyi and Matej Blažej from the Ministry of Finance, Ladislav Å imko from the Office for Investments and Informatization, Matej OvÄ?iarka from the Ministry of Environment, Jaroslav ChocholáÄ?ek from SIEA, Miroslav MariaÅ¡ from the Ministry of Economy, Miroslav MiÄ?ka and Juraj TopolÄ?ány from the Slovak Guarantee and Development Bank, Róbert MáÄ?ek and Matej Brestovsky from Enviros, and the Department of Construction and Architecture (DCA) at the Technical University in KoÅ¡ice. 2 1. Introduction The activity on "Enhancing Energy Efficiency of Public Buildings in the PreÅ¡ov Region" is designed to assess the existing regulatory framework and financial alternatives and recommend strategic planning options to implement an energy efficiency (EE) program in public buildings in the PreÅ¡ov Self-Governing Region (PSK). The activity is also designed to assist PSK in establishing an energy management unit within PSK’s newly established Facility Management Department (FMD). This report on “Regulatory and Institutional Framework Diagnostics and Overviewâ€? provides background on policies, laws and regulation as applicable to the energy sector and for implementation of EE projects in public facilities. The report also provides information on public facilities in PSK and EE projects undertaken in PSK and in Slovakia. The report has been prepared in close collab oration with the relevant teams from the PSK office and with inputs from multiple stakeholders in Slovakia. This activity has two principal objectives: Activity 2.1: Strategic Plan for scaling-up energy efficiency in PSK buildings Sub-activity 2.1.1: Diagnostic Assessment of the Regulatory and Institutional Framework to Increase Opportunities for the Implementation of EE in PSK public buildings, will provide an overview and analysis of existing EE regulatory mandates, implementation instruments, regional procurement regulations, and financing schemes at the central and regional levels. Sub-activity 2.1.2: Identification of Funding Opportunities to scale-up EE in PSK public buildings, will undertake a broad review of various financial schemes that could support implementation of EE in public buildings. This will include an assessment of the domestic financial institutional framework, readiness factors in the local EE market to undertake activities at scale, and assessment of existing financial incentive schemes enabling the financing of EE investments of public buildings into a portfolio of assets Activity 2.2: Action Plan to develop an energy management unit for public buildings in PSK Sub-activity 2.2.1: Guidebook for the implementation of energy management systems (EMS), will develop a draft guidebook for the implementation of an EMS to guide stakeholders on implementing an EMS. Sub-activity 2.2.2: Action Plan to establish an energy management unit within PSK, will develop an action plan to help PSK establish an EMU within the FMD. 3 2. Review of Laws, Regulations, Policies and Resolutions relating to Energy Use and Energy Efficiency 2.1. Slovak national policies, laws, regulations, procurement and building codes A summary description of our review of laws, policies and regulation relating to the energy sector and EE in Slovakia is provided below. 2.1.1. Energy Policy of Slovakia The Energy Policy of the Slovak Republic defines the goals and objectives of the energy sector to 2035 with a view to 2050. The Energy Policy has been developed consistent with the country’s national economic strategy since reliable and competitive energy is critical to achieving sustainable economic growth in the economy1. The Ministry of Economy, which is responsible for the energy sector, prepares a 20-year Energy Policy, and updates it every five years as required by Section 88 of Act No. 251/2012 Coll. on Energy, and amendments of Act No. 391/2012 Coll. The Energy Policy of Slovakia is consistent with European Union (EU) goals for energy as outlined in the Europe 2020 strategy. The EU’s low-carbon strategy for 2050 and the Energy Roadmap 2050 form the framework for long-term energy policy of Slovakia. Given the imperative of energy security to Slovakia, the Slovak Energy Policy supports self-sufficiency in energy through an optimal energy mix that promotes low-carbon technologies and domestic renewable energy, and increased efficiency in energy use in all sectors of the economy. The targets of the energy sector are consistent with EU targets for reduced greenhouse gas emissions, increased energy efficiency, and increased use of renewable energy systems. Slovakia has also implemented the Third Energy Package as required by European Union legislation2 concerning common rules for the internal market in electricity and gas. The strategic objective of the Energy Policy of the Slovak Republic is to achieve “competitive low-carbon energy ensuring safe and efficient delivery of all energy at affordable prices considering consumer protection and sustainable developmentâ€?. The key priorities of the Slovak Energy Policy are listed below. Priorities of the Slovak Energy Functioning and competitive energy market with affordable prices Policy Energy security through optimal energy resource mix Improving energy efficiency and lowering energy intensity Competitiveness and affordability of energy Diversification of energy sources and development of low carbon technologies and renewable energy sources 1 https://www.mhsr.sk/energetika/energeticka-politika 2 The Third Energy Package consists of two Directives and three Regulations: Common Rules for the Internal Market in Electricity Directive (2009/72/EC); Common Rules for the Internal Market in Natural Gas Directive (2009/73/EC); Regulation Establishing an Agency for the Cooperation of Energy Regulators (713/2009/EC); Regulation on Conditions for Access to the Network for Cross-Border Exchanges in Electricity (714/2009/EC); and Regulation on Conditions for Access to the Natural Gas Transmission Networks (715/2009/EC) 4 The Energy Policy of Slovakia identifies measures to realize the key priorities of the policy. The priorities with reference to energy efficiency are shown below. Measures to Further reducing energy intensity to the EU average; realize key priority of the Setting a national target for EE and securing funding for individual measures; Energy Policy Full transposition of the EU Directive on Energy Efficiency; Establishment of a financial scheme for energy efficiency; Ensuring quality and consistent measurement, monitoring and evaluation of energy efficiency; Ensuring quality information and education on energy efficiency; The introduction of smart metering systems and the creation of intelligent networks to enable customers to obtain information and decide; Effective power management. 2.1.2. National Legislation for Energy Efficiency Several Acts of the Government of Slovakia address EE and related issues. The legislative Acts relevant to energy use in public buildings address a range of issues including: • Energy Efficiency of buildings • Qualification scheme for energy auditors • Promotion of energy efficient products • Labeling of products to promote energy efficient appliances and equipment • Inspection of heating and air-conditioning systems • Technical requirements for thermal insulation of heat and hot water distribution systems 2.1.3. National Legislation and Codes Applicable to Buildings Slovakia has a number of important legislative Acts related to energy use in buildings. Slovakia also has building codes and standards, which address energy use in buildings, and standards for heating of buildings. Consistent with EU Directives, the legislative Acts and building codes have progressively become more stringent and require increased efficiency in the use of energy. The Acts and codes apply generally to new construction and not to existing building stock. Several of the legislation and Decrees and codes and standards have been amended from time to time to revise standards and be consistent with EU Directives. Appendix 1 provides a listing of legislation and building codes and standards. 2.1.4. National Legislation Related to Public Procurement Procurement of material and services by public entities is dictated by legislation on public procurement. Public procurement laws sometime make it difficult for public entities to procure efficient equipment and materials, which at times may be more expensive. The proposed new Act on the use of Energy Service Companies (ESCOs) for improving EE in public buildings will help local governments to undertake 5 projects without being constrained by some of the requirements of the public procurement law. The national legislation as it pertains to public procurement is provided in Appendix 2. 2.2. PreÅ¡ov region policies, laws and regulations and procurement policies The PreÅ¡ov region applies all applicable national policies, laws and regulations of the Slovak Republic. PSK does not have any additional or specific laws that apply only to the region. An exception is the public procurement law for which the PreÅ¡ov self-governing region has a Directive on the procedure for the application of Act No. 433/2015 Coll. on public procurement. This regional directive applies to public procurement below a certain threshold. 2.3. Compliance of Slovak energy laws with EC regulations and guidelines 2.3.1. EU – Energy Efficiency Directive (EED) of 2012 The 2012 Energy Efficiency Directive of the EU establishes binding measures to help the EU reach its target of reducing energy consumption by 20% by 2020. This EU Directive applies to all member countries including Slovakia and requires countries to improve energy efficiency along the entire energy value chain, from energy production to final energy consumption. The framework for energy and climate for 2020 also included a commitment to continue reducing greenhouse gas emissions, setting a reduction target of 40% by 2030 relative to 1990 levels, and a renewable energy target of at least 27% of energy consumption, with flexibility for member states to set national targets, and a new governance framework for member countries based on national plans coordinated and assessed at the EU level. The EU has since revised its framework for the energy sector and adopted a new framework for climate and energy with more 2012 Energy Efficiency Directive of the EU mandated an EE target of 20% by stringent targets. The revised framework has three main goals for 2020. EU countries: putting energy efficiency first, achieving global leadership in renewable energies and providing a fair deal for The revised Directive (Dec 2018) establishes an EE target of 32.5% by consumers. 2030. As of December 2018, the EE Directive now includes a 32.5% Slovakia has to renovate annually at target for energy efficiency by 2030 with a possible upward least 3% of the total floor area of central revision in 2023. To meet the new target the EU’s EE Directive government-owned buildings to meet the minimum energy performance now requires countries to take measures that include the requirements. following. Energy distributors or retail energy sales • EU countries can opt to achieve the same level of savings companies have to achieve 1.5% energy through other means, such as improving the efficiency of savings per year through EE measures heating systems, installing double glazed windows or insulating roofs • The public sector in EU countries should purchase energy efficient buildings, products and services • Every year, governments in EU countries must carry out energy efficient renovations on at least 3% (by floor area) of the buildings they own and occupy • Energy consumers should be empowered to better manage consumption. This includes easy and free access to data on consumption through individual metering • National incentives for SMEs to undergo energy audits • Large companies should conduct energy audits and identify ways to reduce energy consumption • Energy distributors or retail energy sales companies have to achieve 1.5% energy savings per year through the implementation of energy efficiency measures • Monitoring efficiency levels in new energy generation capacities. 6 The EC’s “Clean Energy for All Europeansâ€? legislative proposals cover energy efficiency, renewable energy, the design of the electricity market, security of electricity supply and governance rules for the Energy Union. The new package also includes actions to renovate public buildings and measures to encourage public and private investment. Article 5 of the EE Directive: Exemplary Role of Public Bodies' Buildings Article 5 of Directive 2012/27/EU (hereinafter referred to as the EE Directive) on energy efficiency requires EU countries to ensure that 3% of the total floor area of central government-owned and occupied heated or cooled buildings are renovated each year to meet the minimum energy performance requirements are required in Article 4 of the Energy Performance of Buildings Directive (2010/31/EU). This provision is included in amended Slovak Acts. Slovakia: Compliance with the EU Directive on EE Slovakia is committed to implement EE Directive on energy efficiency and has undertaken implementation of specific measures as identified in the three-year Energy Efficiency Action Plans to achieve the indicative Slovakia: Commitment to Improve EE • Provide a permanent, effective and functional model for financing energy efficiency measures at the national level; • Utilize existing financial mechanisms and securing new funds from EU funds for energy efficiency projects including building renovations, overhaul and modernization of heat distribution systems, support for the introduction of innovative technologies and modernization of public lighting systems in addition to support for Energy Performance Contract (EPC) and ESCO models; • Incorporate energy efficiency principles into relevant conceptual, strategic and legislative documents. Introduce and thoroughly apply energy efficiency principles within public procurement; • Ensure the achievement of energy savings when renovating buildings of central government bodies, to secure the state's role in setting an example in terms of energy efficiency and energy performance; create and make public a list of public administration buildings; introducing efficient quality controls for energy certificates and measures to support their active use; • Provide systematic support and secure financing for the construction of low energy and passive buildings; • Modify and expand the system of energy audits, qualification, accreditation and certification schemes and ensure availability of experts through education and training programs; • Increase awareness among consumers and access to information on their energy consumption at all levels as well as opportunities and forms of saving energy, develop the professional skills of key implementers in the public and private sectors; • Permanently assure the monitoring of energy savings and improvements in the quality of data collection on implemented energy-saving measures and their cost effectiveness; ensure cross-cutting monitoring of energy savings for all measures contributing to energy savings financed using public funds; • Support the construction of new and more efficient centralized heat supply and the modernization and expansion of existing centralized heat supply systems; • Implement energy efficiency principles and measures to contribute to the achievement of the targets of the Efficient World Scenario defined by the International Energy Agency; • Support the development and use of intelligent metering systems on the basis of their economic efficiency and the application of the latest technologies in achieving energy savings while increasing end user awareness of their energy consumption in all sectors. 7 national EE target of 20% by 2020. Some of the commitments relevant to energy use in buildings are shown in the Box below. 2.3.2. Nearly Zero Energy Buildings (nZEBs). New EU regulations (the Energy Performance of Buildings Directive) requires all new buildings to be nZEBs by the end of 2020, and all new public buildings to be nZEBs by 2018. In compliance with this regulation, Slovakia too has revised its building codes to meet the new energy performance requirements. The performance specified in the building code for new and existing stock of buildings is the same; to meet “A0â€?. Recognizing that renovation of existing buildings to meet new performance standards may be difficult, there is a provision that existing buildings need only renovate those measures which are technically feasible and cost effective. While cost effectiveness is defined as measure that have a payback period less than 15 years, technical feasibility is not defined. Existing buildings could thus use this provision to not undertake renovations as required by the nZEB regulations. The below provides the energy performance standards to be met by buildings for different categories of buildings. Buildings are classified by “classâ€? depending on their energy performance. The latest guidelines as they relate to nZEBs will require buildings to meet the energy performance classified as “A0â€?. Table 1: Global indicator scale for energy class of buildings - primary energy in kWh /m2/yr Building Energy A0 A1 B C D E F G Efficiency Classes Family houses ≤ 54 55–108 109–216 217–324 325–432 433–540 541–648 > 648 Apartment ≤ 32 33–63 64–126 127–189 190–252 253–315 316–378 > 378 houses Administrative ≤ 61 62–122 123–255 256–383 384–511 512–639 640–766 > 766 buildings School buildings and ≤ 34 35–68 69–136 137–204 205–272 273–340 341–408 > 408 school facilities Hospital 983– ≤ 98 99–197 198–393 394–590 591–786 787–982 > 1179 buildings 1179 Hotel buildings and ≤ 82 83–164 165–328 329–492 493–656 657–820 821–984 > 984 restaurants Sports halls and other ≤ 46 47–92 93–181 182–272 273–362 363–453 454–543 > 543 sports buildings Buildings for 851– 851– wholesale and ≤ 107 108–213 214–425 426–638 639–850 > 1275 1062 1275 retail services 8 2.4. Enforcement of laws, regulations and building codes Enforcement of laws and regulations is critical to achieving the goals and objectives of policies. PSK has noted that it seeks to comply with all Slovak national legislations as they relate to energy use. PSK also has thus far renovated some 14% of its public buildings to improve EE. With the establishment of the FMD, PSK plans to systematically renovate all its public buildings to improve EE. 2.5. Flexibility in Fuel Purchase Consistent with EU Directives, Slovakia allows all customers including public buildings to have a choice in supplier of energy. The provisions of the Third Energy Package permit consumers to have flexibility in the use of electricity and gas and choose a supplier who offer better prices. Public building in PSK too have the option to select an energy supplier of their choice and potentially lower energy bills. The various legislative acts application to fuel purchase is shown in Appendix 3. 2.6. Key Takeaway from Review of Laws and Regulations The WB team undertook a review of the laws, policies and regulation as they pertain to the energy sector in Slovakia. A particular focus was on laws relating to EE and regulations applicable to public buildings. The key learning of our review is as follows: 9 Review of EE The EU’s low-carbon strategy for 2050 and the Energy Roadmap 2050 form the framework for related Laws long-term energy policy of Slovakia. and Regulations Slovak Republic laws and policies for the energy sector and for EE have been amended for consistency with EU laws and Directives. Slovakia has a number of laws and legislation on energy efficiency in buildings, and targets for EE in public buildings are being revised to conform to the EU 2030 agenda for Sustainable Development. Consistent with EU Directives, central government owned public buildings in Slovakia will have to annually retrofit 3% of floor space to improve energy efficiency. Slovakia has chosen to additionally improve energy efficiency in public buildings owned by regional and local governments. Energy distributors or retail energy sales companies have to achieve 1.5% energy savings per year through EE measures. As of November 2016, the EE Directive includes a 30% target for energy efficiency by 2030. An Act has been prepared to permit local government to use ESCOs to undertake EE projects in public buildings. The Act is presently under review and is expected to be enacted soon. Slovakia intends to introduce energy efficiency principles within public procurement laws. Public building, including those in PSK, have the option to select an energy supplier of their choice and potentially lower energy bills through a strategic mix of usage of fuels. Slovakia wishes to utilize existing financial mechanisms and secure new EU funds for EE projects including building renovations, overhaul and modernization of heat distribution systems, introduction of innovative technologies and modernization of public lighting systems, and support for EPC and ESCO models. Slovakia is also seeking to secure financing for the construction of low energy and passive buildings. Slovakia is seeking to modify and expand the system of energy audits, qualification, accreditation and certification schemes and ensure availability of experts through education and training programs. Slovakia seeks to improve consumer access to information on energy consumption and increase awareness among consumers of opportunities to save energy. Slovakia is seeking to better monitor energy savings and improvements and improve the quality of data collection on implemented energy-saving measures. Slovakia wishes to support the construction of new and more efficient centralized heat supply systems and modernize and expand existing centralized heat supply systems. 10 3. Energy Efficiency in Slovakia The energy policy for the Slovak Republic, approved by the Slovak Government under Resolution No 548/2014, seeks to achieve a competitive, low-carbon energy industry, and promote sustainable development and EE in all sectors of the economy including in public buildings. The Slovak government has thus far prepared four Energy Efficiency Action Plans to systematically improve energy efficiency. Some of the priorities for improving EE in the Slovak economy are shown in Box below. Priorities for Improving EE in Slovakia • Reduce energy intensity to the level of the EU average • Establish a scheme for financing energy efficiency and prepare a financing plan to implement specific measures • Adopt a robust measurement, monitoring and evaluation framework for energy efficiency • Disseminate energy efficiency goals and targets through information and education campaigns • Introduce intelligent metering systems and create intelligent networks to help consumers make informed decisions about energy use • Implement an effective demand-side management program Energy intensity in Slovakia has been consistently reducing, and according to Eurostat data (2017), Slovakia reduced its enery intensity by 50.8% over the past 15 years. Between 2006 and 2012, energy intensity reduced by about 27%, the largest reduction reported in the EU-28 in this period3. The reduction is attributed to improvements in buildings’ thermal performance, use of more efficient appliances, and use of low-energy production processes in industry. Nevertheless, in 2015, Slovakia had the seventh highest energy intensity among the EU-28 nations (see Figure 1) Figure 1: Comparison of Slovakia’s energy intensity with EU Member States (2015) 3 Energy Efficiency Action Plan 2017-2019 with an Outlook up to 2020, Ministry of Economy of the Slovak Republic, Bratislava 2017. 11 Source: Eurostat data 2017 3.1. Energy Efficiency Action Plans The government of Slovakia is committed to EE as envisioned in the Slovak Energy Policy and has fully adopted the EU’s strategic and legislative framework for EE into the Slovak national and legislative framework. A primary aim of the policy is to gradually reduce the economy’s energy intensity bringing it down to the average level in the EU. The government wishes to identify opportunities for EE in all sectors of the economy, identify barriers to EE, develop strategic objectives and priorities for program implementation, and monitor impacts. The government also wishes to create an enabling environment for market players to embrace new innovations and energy efficient technologies in all sectors of the national economy. Slovakia's EE concept approved by the government in Resolution No. 576/2007 defined a target of 9% savings in final energy consumption compared to the average use of energy from 2001 to 2005 and a framework for targets and measures to be undertaken until 2016. This resulted in the preparation of Energy Efficiency Action Plans (EEAP), which assess past EE measures and establish new measures to meet defined targets. The Ministry of Economy (MoE), has established an Inter-ministerial Working Party involving all relevant government ministries and bodies to systematically address EE management, planning and monitoring. Slovakia has thus far prepared four EEAPs. • Energy Efficiency Action Plan 2008-2010 • Energy Efficiency Action Plan 2011-2013 • Energy Efficiency Action Plan 2014-2016 • Energy Efficiency Action Plan 2017-2019 (with projections for 2020) The Slovak Republic’s EEAPs are intended to introduce the necessary domestic legislative framework for energy efficiency, establish an effective monitoring and information system, define and implement low- cost organizational and technical measures, and provide for financial support mechanisms. Financial support mechanism includes the establishment of an Energy Efficiency Fund to provide grants supporting specific energy efficiency related activities. The aim of the EEAP is to evaluate EE measures for the previous 3-year period, evaluate the achievement of energy savings targets, and plan measures to meet the targets for EE for the next period. EEAPs also provide information on the implementation of selected provisions of EE Directive. The first three EEAPs were prepared following Directive 2006/32/EC on energy end-use efficiency and energy services. The Fourth EEAP was prepared pursuant to Article 4 (1) c) of Act no. 321/2014 Z. z. on EE and on the amendment of certain Acts and Article 24 (2) of EE Directive. The Fourth EEAP is in line with the Fourth Implementation Measures of the Energy Efficiency Concept (adopted by Government Resolution No. 576/2007) and builds on the previous three EEAPs. Slovakia adopted a revised energy saving target of 11% of the average final energy consumption during the period 2001-2005 based on the EEAPs. An assessment of the first EEAP noted that Slovakia exceeded the mid-term target set in the 2008–2010 EEAP and achieved energy savings of 9% (27.8 PJ) compared to the average final energy consumption during that period. The Fourth EEAP notes that the energy savings up to 2016 amounted to 26,178 TJ, which was 93.2% of the target of 28,098 TJ. While the target for 2020 could still be achieved, there is a risk that it may not happen. The target for energy savings in buildings was also not met according to the 4 th EEAP. The final consumer energy savings target for 2016 was also not met, and the 4th EEAP revised the annual targets for 2017-2020 from 959.84 GWh per year to 1,019.49 GWh per year. It is noted that the main reasons for not meeting the target in 2016 was the lack of public resources for implementing EE measures and for renovation of the buildings of central bodies of State administration, and the delay in implementation of projects financed by the European Structural and Investment Funds (ESIF). 12 3.2. The Fourth EEAP - National energy savings targets and EE achievement4 The fourth Energy Efficiency Action Plan 2017-2019 with an Outlook up to 2020 was prepared by the Standing Inter-ministerial Working Party on the Preparation of Energy Efficiency Action Plans. 3.2.1. Targets for energy savings Energy efficiency policies and targets in Slovakia are based on EU directives, which recognize that energy efficiency concurrently fulfils economic, energy and environmental targets. The EU Energy Efficiency Action Plan of March 8, 2011 and EE Directive on energy efficiency propose significant changes to energy efficiency in the EU and require a response at the national level within EU countries. The target for all EU member states defined in EE Directive on energy efficiency in compliance with the Europe 2020 strategy is to decrease the consumption of primary energy sources by 20% at the EU level compared to the PRIMES 2007 reference scenario5. The EU 2012/27/EU Directive includes the definition of an indicative national energy efficiency target to help the EU meet this 20% target and requires that countries adopt energy efficiency targets expressed in the form of an absolute value for primary energy and an absolute value of final energy consumption in 2020. Specifically, the EE Directive requires an energy saving target be developed to correspond to the annual energy efficient renovation of 3% of the total floor area of buildings owned and used by government, and an energy savings target of 1.5% of annual sales of energy to end users from every energy supplier. Achieving the national targets as defined in the Energy Efficiency Directive requires comprehensive analysis of potential energy savings in individual sectors of the national economy and developing specific proposals to implement measures that help achieve the energy savings targets by 2020. EE Targets from the 4th EEAP The 4th EEAP for Slovakia established the following targets for energy savings. • National indicative energy efficiency target – Slovakia has EE targets for 2020 pegged to both primary energy consumption and final energy consumption and as compared to the PRIMES 2007 reference scenario. A target of 20% (191 TWh or 686 PJ) for primary energy consumption in 2020, and a target of 31% (105 TWh or 387 PJ) for final energy consumption. • A country report on Slovakia published by the EC notes that final energy consumption increased in 2016 to 10.4 Mtoe, which would make it difficult to meet the 9 Mtoe target for 20206. The report also notes that energy intensity in Slovakia remains 176% above the EU average, and further reducing energy intensity will require substantial investment. • Building energy savings target – Slovakia targets to annually renovate 3% of the total floor area of buildings owned and occupied by all public buildings at least to a level of the minimum building energy performance requirements. Slovakia’s target for 2020 is 52.17 GWh per year (365.19 GWh by 2020). In terms of achieving the building energy savings target, energy savings in 2015 was 54.13 GWh (above the annual target), but only 23.02 GWh in 2016 (44% of the annual target). The reason for the low energy 4 Energy Efficiency Action Plan 2017-2019 with an Outlook up to 2020, Ministry of Economy of the Slovak Republic, Bratislava 2017 5 PRIMES is a partial equilibrium model of the EU energy system providing projections for the medium and long term starting from 2010 and running up to 2030 with results for every fifth year. 6 Commission Staff Working Document, Country Report Slovakia 2019. Accompanying the document “Communication from The Commission to the European Parliament, the European Council, the Council, the European Central Bank and the Eurogroup.â€? 13 savings is attributed to the lack of public funds and delays in implementation of projects to renovate public buildings with resources from the Operational Programme Quality of Environment (OP QE) (2014-2020). • Final consumer energy savings target – Slovakia targets to save 1.5% of annual energy sales to customers for each energy supplier. Slovakia’s target is estimated at 948.75 GWh per year (26,565 GWh or 3,415.5 TJ up to the year 2020). Actual savings in final consumer energy consumption was estimated to be 837.67 GWh in 2014, 1,308.78 GWH in 2015, and 653.21 GWh in 2016. Since the annual target of 948.75 GWh was not met in 2014 and 2016, the annual target for savings for the period 2017 to 2020 is now set at 1,019.49 GWH. Energy savings in primary energy consumption Energy savings in primary energy consumption targeted and achieved in various market sectors during the period 2014-2016 and the energy savings target for the period 2017-2020 is show in Table 2. The energy savings achieved during 2014-2016 was higher than the target in the third EEAP. Table 2: Energy savings planned and achieved in primary energy consumption Energy savings (primary energy consumption) Planned energy savings (primary 2014-2016 energy consumption) (3 years) 2017-2020 Sector [TJ] (4 years) [TJ] Planned in the 4th Planned in the 3rd EEAP Achieved EEAP Buildings 4,830 7,905 6,698 Industry 4,020 4,338 10,595 Public sector 2,616 1,245 2,670 Transport 901 1,403 1,660 Appliances 1,154 892 1,412 Energy transformation, transmission 1,438 4,328 2,422 and distribution Total 15,975 17,221 27,362 Source: Energy Efficiency Action Plan 2017-2019 with an Outlook up to 2020, Ministry of Economy of the Slovak Republic, Bratislava 2017 The contribution of various market sectors in achieving energy savings in final energy consumption during the period 2014-2016 is shown in Figure 2. 14 Figure 2: Reduction in final energy consumption during 2014-2016 in various market sectors 5.65% 8.89% Sector: Saving [TJ] Buildings 5,051.22 7.89% Industry 2,772.04 Public sector 795.73 Transport 896.52 50.09% Appliances 569.77 27.49% Total: 10,085.28 Source: Energy Efficiency Action Plan 2017-2019 with an Outlook up to 2020, Ministry of Economy of the Slovak Republic, Bratislava 2017 The buildings sector accounted for half the entire energy savings during 2014-2016. The EEAP attributes this in part to the additional financial resources reallocated from three Operational Programmes in the 2007- 2013 programming period7. The EE potential from the buildings sector was also high reportedly due to the introduction of compulsory energy audits in 2009 and the availability of financing. Energy efficiency measures in the buildings sector EE measures implemented in the buildings focused primarily on the following: • Thermal retrofitting of existing buildings through major or partial renovation • EE measures in building energy systems (heating, hot water, lighting, etc.) • New construction of low-energy and ultra-low-energy buildings and nearly zero-energy buildings 7 Regional Operational Programme, the Operational Programme Bratislava Region, and the Operational Programme Competitiveness and Economic Growth 15 Figure 2 illustrates the savings achieved in buildings over the period 2014-2016 through various measures. Note that savings are from renovation of old buildings and construction of new efficient buildings. Improving the thermal performance of buildings accounts for much of the savings. Thermal retrofitting was undertaken in multi-family residential buildings with support from the JESSICA program8. The State Housing Development Fund benefitted from financing from the three Operational Programmes. Additionally, central government funding of more than EUR 262 million was available for thermal retrofitting of multi-family buildings. A further EUR 30 million from the central government budget was allocated in 2016 for the “Single-family Building Insulation Support Programmeâ€?. Energy savings in final energy consumption in buildings during the period 2014-16 is shown in Figure 3. The Slovak government’s “Living with Energyâ€? project, co-funded by the EU and implemented by the Slovak Innovation and Energy Agency (SIEA) in 2014-2016, supported building renovation and new efficient construction of buildings. The installation of meters to monitor heat and hot water use and support for energy audits and consulting services also contributed to energy savings in buildings. Figure 3: Energy savings in final energy consumption in the buildings sector by type of EE measure (2014-2016) 9.57% 6.74% Groups of measures in buildings: Saving [TJ] Improved thermal 4,227.60 performance of buildings New construction to a low- 340.23 energy standard Measures to save energy in 483.40 building energy systems Total: 5,051.22 83.69% Source: Energy Efficiency Action Plan 2017-2019 with an Outlook up to 2020, Ministry of Economy of the Slovak Republic, Bratislava 2017 Energy efficiency measures in the public sector EE measures undertaken in the public sector mainly focused on the following. • improvements in the thermal performance of public buildings financed by the EU Structural Funds 2007-2013, 2014-2020; • improvements in the thermal performance of public buildings financed by internal budgetary resources; • improvements in the thermal performance of public buildings financed by national and international programs and funds; • upgrading of public lighting; 8 Joint European Support for Sustainable Investment in City Areas - an initiative of the European Commission developed in co-operation with the European Investment Bank (EIB) and the Council of Europe Development Bank (CEB). It supports sustainable urban development and regeneration through financial engineering mechanisms. 16 • measures to save energy in building technical systems via energy services; • energy-saving measures implemented by applying performance measures, codes and standards. Figure 4 illustrates the reduction in final energy consumption in public sector facilities over the period 2014-2016. EU Structural Funds in the 2007-2013 programming period supported projects in the public sector. In 2015, the SIEA announced a call for a ‘Reduction in energy consumption in the operation of public buildings’, with an indicative budget of EUR 150 million. Additional calls have been announced under the 2014-2020 programming period. Figure 4: Breakdown of energy savings in final energy consumption in the public sector (2014-2016) 14.05% 21.69% Saving Method of financing: [TJ] Buildings – EU 2007-2013 172.63 Buildings – own budgetary resources 67.67 Buildings – national and international 188.14 programs/funds 8.50% Upgrading of public lighting 255.46 32.10% Building technical systems – energy 23.64% 111.84 services Total: 795.73 Source: Energy Efficiency Action Plan 2017-2019 with an Outlook up to 2020, Ministry of Economy of the Slovak Republic, Bratislava 2017 3.2.2. Financing for EE It is estimated that budgetary support for EE in public buildings from central government and local governments contributed to less than 10% of the overall energy saving achieved. Funding from national 17 and international programs and funds, such as the Environmental Fund, EkoFond9 and MunSEFF10 contributed about 20% to the energy savings achieved. And funding from own resources and EU funds contributed to the rest of the energy savings achieved. About EUR 57 million was available from the Operational Programme Competitiveness and Economic Growth to upgrade public lighting systems. Energy services were used to improve building energy systems and resulted in about 10% savings. Overall EE measures and financing in 2014-2016 Total energy savings in final energy consumption over the period 2014-2016 was about 10,085.28 TJ (Figure 2), and about EUR 5.7 billion was spent on implementing EE measures. Table 3 provides a breakdown of planned and achieved energy savings along with the total financial resources spent over the period 2014-2016. Table 3: Energy savings achieved and financial resources spent in each sector in 2014-2016 Energy savings (final energy consumption) Total financial resources 2014-2016 2014-2016 [TJ] [EUR thousands] Sector Planned in the Planned in the 3rd EEAP Achieved11 Actual 3rd EEAP Buildings 3,087.00 5,051.22 3,160 612 3,677,826 Industry 2,568.89 2,772.04 873,674 147,022 Public sector 1,671.70 795.73 390,834 290,088 Transport 576.02 896.52 3,868,046 1,456,598 Appliances 737.32 569.77 119,886 104,188 Total 8,640.93 10,085.28 8,413,052 5,675,721 Source: Energy Efficiency Action Plan 2017-2019 with an Outlook up to 2020, Ministry of Economy of the Slovak Republic, Bratislava 2017 9 Eko-Fund was founded by the Slovak Gas Industry (SPP) in 2007 with an aim to promote and protect the environment, support efficient energy use, and support dissemination and awareness of information 10 MunSEFF is a Municipal Instrument to Finance Sustainable Energy Investments. The European Bank for Reconstruction and Development (EBRD) established a credit line to support EE in Slovak municipalities – the MunSEFF. The Facility provides financing of energy efficiency and renewable energy investment opportunities channeled through local banks. The credit line is supported by a technical assistance package that helps sub- borrowers prepare loan applications and educates local bank officers in sustainable energy investment opportunities and credit appraisal methods. 11 The 2016 energy saving was incorporated solely on the basis of data available at 7 April 2017. It is assumed that a correction will be made in the next annual report once the 2016 data have been updated. 18 The buildings sector contributed about 50% of the total energy savings achieved in all sectors. In terms of financing, over 70% of the support was from own resources of the facilities, 20% from the Operational Programmes, about 8% from foreign funds and national resources, and less than 2% from energy services ( Figure 5). Figure 5: Source of Financing for EE in buildings 19 Source: Energy Efficiency Action Plan 2017-2019 with an Outlook up to 2020, Ministry of Economy of the Slovak Republic, Bratislava 2017 Energy efficiency from Energy Services (EPC) The EE Act of Slovakia has provided legislative support to energy services since December 2014, and the Ministry of Economy enlists providers of guaranteed energy savings. The legislation supports energy services for the public sector, and the SIEA can provide support to develop an energy performance contract (EPC) project. The 4th EEAP reports the following savings achieved through EPC contracts in the buildings and public sectors (see Table 4). Table 4: Energy savings achieved through energy services (EPC) Energy savings via 2014 2015 201612 energy services [TJ] [TJ] [TJ] Provision of energy services in private buildings 5.67 4.22 70.61 Provision of energy services in the public sector 22.64 40.64 14.93 Source: Energy Efficiency Action Plan 2017-2019 with an Outlook up to 2020, Ministry of Economy of the Slovak Republic, Bratislava 2017 Energy efficiency in public sector buildings The energy savings in public buildings renovated during the period 2014-2016 has been estimated as shown in Table 5. 12 Situation as at the data cut-off date, i.e. 7 April 2017. 20 Table 5: Energy savings in public buildings in 2014-2016 Public buildings renovated 2014 2015 2016 Total in 2014-2016 [GWh/year] [GWh/year] [GWh/year] [GWh/year] Administration buildings – renovation 0.85 13.88 10.79 25.52 Buildings of schools and school - 24.68 9.96 34.64 facilities – renovation Hospital buildings – renovation - 15.57 4.67 20.24 TOTAL 0.85 54.13 25.42 80.40 Source: INFOREG information system (2015, 2016, 2017) 3.2.3. Energy efficiency measures planned for 2017-2019 with an outlook up to 2020 Measures planned in the private buildings sector Multi-family buildings are expected to continue to benefit from support for thermal retrofitting from the State Housing Development Fund and for major renovation with resources from the OP QE, IROP (2014- 2020)13 and the SlovSEFF III programme14. The Ministry of Transport and Construction will continue to support single-family buildings. And all new building construction will have to meet more stringent performance standards which came into effect in 2016. Measures planned in the public buildings sector The OP QE (2014-2020), the IROP (2014-2020) and the Environmental Fund, along with the energy services mechanism, will continue to support EE in the public buildings sector. The Environment Fund principally supports buildings managed by municipalities. New nearly-zero energy standards apply will apply to all new public buildings starting January 2019. The SIEA has estimated the potential for energy savings in public buildings to be about 650 TJ by 2019, which is estimated to need financing of about EUR 180 million. Table 6 shows the target for energy savings in primary and final energy consumption in buildings and the public sector and the financing required for the periods 2017-19 and 2017-20. 13 Integrated Regional Operational Programme – the program contributes to sustainable provision of public services across Slovakia. The program is designed to support balanced and sustainable regional development, as well as economic, territorial and social cohesion of Slovak regions, cities and municipalities. 14 SlovSEFF III is a sustainable energy financing facility developed by the EBRD in collaboration with the Ministry of Environment of the Slovak Republic and the Ministry of Agriculture, Food and Environment of Spain, which are funding the programme's incentive payments and technical assistance respectively. 21 Table 6: Energy savings target and financial resources required in 2017-2019, with an outlook up to 2020 2017-2019 2017-2020 Energy Energy Energy Energy Total saving saving Total financial saving saving financial Sector resources (FEC) (PEC) (FEC) (PEC) resources [EUR [EUR [TJ] [TJ] [TJ] [TJ] thousands] thousands] Private buildings 3,251 5,088 1,506,162 4,280 6,698 2,019,247 Public buildings 1,362 2,132 636,111 1,706 2,670 800,486 Total 4,613 7,220 2,142,273 5,966 9,368 2,819,733 Source: Energy Efficiency Action Plan 2017-2019 with an Outlook up to 2020, Ministry of Economy of the Slovak Republic, Bratislava 2017 It is expected that, much as for the period 2014-16, own resources of the facilities will have to contribute up to 49% of the financing, with Operational Programmes contributing about 42% and other foreign funds and the national budget contributing about 8%. Energy services are expected to account for a very small proportion of the financing required. The annual financing required for the buildings sector and the public sector is shown in Table 7. Table 7: Estimated annual financial resources required to achieve the energy savings for 2017-2019, with an outlook up to 2020 Total estimated financial resources Sector [EUR thousands] 2017 2018 2019 2020 2017-2019 2017-2020 Private 482,844 524,749 498,569 513,085 1,506,162 2,019,247 buildings Public buildings 179,654 231,834 224,624 164,375 636,111 800,486 Total 662,498 756,583 723,193 677,460 2,142,273 2,819,733 22 Source: Energy Efficiency Action Plan 2017-2019 with an Outlook up to 2020, Ministry of Economy of the Slovak Republic, Bratislava 2017 The financing required to achieve energy savings is estimated in the 4th EEAP using the average investment intensity for similar EE measures during the period 2014-2016 (see Table 8). Table 8: Average investment intensity in each sector in 2014-2016 Average investment intensity in Sector 2014-2016 [Eur/MWh] Private buildings 2,620 Public buildings 1,176 Source: Energy Efficiency Action Plan 2017-2019 with an Outlook up to 2020, Ministry of Economy of the Slovak Republic, Bratislava 2017 3.3. Sources of Financing for Energy Efficiency in Slovakia The Ministry of Environment manages the OP QE, which has a total program allocation of EUR 3.13 billion. One of the four main priorities of this program is developing “an energy -efficient, low-carbon economy in all sectorsâ€? which includes measures to reduce energy consumption in public buildings. The SIEA is the implementing body for OP QE and issues calls to invite investment proposals. Non-repayable investment support is provided to projects that meet eligibility criteria. The SIEA has issued multiple calls for project proposals under the OP QE. One of the requirements of the program is the obligation for the applicants to first undertake an energy audit and then implement recommended EE measures to be eligible for financing support. A complete list of approved project applications for non-repayable financial contribution from the OP QE is provided on the program website (http://www.op-kzp.sk/zoznam-schvalenych-a-neschvalenych- ziadosti/). The objective for supporting EE projects in public buildings under the OP QE, the targets and the financing for calls for proposals are summarized in Appendix 4. Slovak government funds and EU structural funds15 and the Cohesion Fund provided more than 50% of all funding used for energy efficiency measures from 2007 to 2013. In addition to EU funds, projects financed from the State Housing Development Fund16, the Housing Development Program, the Government Insulation Program, the Slovak Energy Efficiency and Renewable Energy Finance Facility, the Norwegian 15 EU Structural Funds is the sum of funds under ERDF and ESF 16 Implemented with funds from JESSICA 23 Financial Mechanism and other international support programs all played a major role in decreasing energy consumption in households, buildings and the public sector. Sources of private funding include private investments, financial instrument provided by commercial financial institutions and the SPP-EkoFund. Slovakia will need to tap all available financing mechanisms, including existing and planned national, European and private sources to meet the revised EE targets. 3.3.1. ELENA Facility The ELENA Facility is funded by the EU Horizon programme. Municipalities and cities preparing investment projects for improving energy efficiency and procuring renewable energy can use ELENA grant financing to prepare projects. ELENA finances technical support costs for the preparation of major investment programs in the regions and cities eligible for European Investment Bank (EIB) financing. ELENA financing supports procurement, feasibility studies, market research, investment plans, and energy audits. 3.3.2. The European Energy Efficiency Fund (EEEF) The European Energy Efficiency Fund (EEEF)17 was established on 1 July 2011 and was earmarked for unspent funds under the European Economic Recovery Program (EERP) to grant community financial assistance to energy projects. EERP was aimed at supporting infrastructure in the energy sector, in particular for cross-border gas interconnection projects, offshore wind projects, and support for carbon capture and storage projects. 3.3.3. MUNSEFF & SLOVSEFF MUNSEFF-1 was successfully implemented by the consulting firm Enviros, and the EBRD is presently procuring consultants for MUNSEFF-2. MUNSEFF provides lines of credit to local commercial banks to finance municipalities or ESCOs undertake EE projects. MUNSEFF-1 extended a EUR 200m line of credit to finance municipalities. The program also provided an incentive of 15-30% to the municipality. MUNSEFF-2 is expected to provide a EUR 100m line of credit. SLOVSEFF 1 and 2 were designed to support industries and were very successful. SLOVSEFF-3 is presently supporting industries through a EUR 100m line of credit extended to four commercial banks. Financing from participating banks is provided directly to industries, and the program also provides industries with a 5-10% incentive payment for successful program implementation. 3.3.4. Energy Service Companies (ESCOs) ESCOs provide energy services to clients by guaranteeing energy savings and provide a low-risk solution for public buildings to undertake EE projects. The client negotiates an Energy Performance Contract (EPC) with the ESCO which also finances the investment cost of the project. The ESCO is paid back over time based on a guaranteed savings or shared savings agreement. Several ESCOs are operational in Slovakia and are experienced with undertaking projects for clients principally in the commercial sector, though some projects have been implemented for public facilities. A key challenge for ESCO to provide services to public buildings is the relatively small size of individual projects and the long payback periods which make the projects financially unattractive for ESCOs. Another potential challenge for ESCOs is the requirement for public buildings to procure goods and services through the public procurement law. Act no. 321/2014 on Energy Efficiency and related Amendments provide the basic framework to support the development of an energy services market in Slovakia. The Ministry of Economy’s Decree no. 99/2015 Coll. provides details of the provision of the energy support services and guaranteed energy savings. Slovakia is presently preparing a new Act which will support public buildings to contract with ESCOs to 17 The European Energy Efficiency Fund (EEEF) aims to support the goals of the European Union to promote a sustainable energy market and climate protection. 24 implement EE projects. The Ministry of Finance is working with other relevant ministries to finalize the Act. The draft is being reviewed by EUROSTAT and is expected to be adopted in the second quarter of 2019. The creation of supporting legislation along with standardized contracts and support for financing mechanisms for longer term investment will greatly support ESCOs provide services to towns and cities to undertake EE projects in public buildings. Contracting ESCOs to implement EE projects in public buildings will also obviate the need to initially finance the up-from investment cost of EE projects and also mitigate the risk of non-performance of the project. 3.3.5. Amendment to Public Procurement Laws The opportunity to apply criteria for energy efficiency within public procurement was enabled by the National Green Procurement Action Plan of 2011–2015. The amended public procurement act requires the procurement of high efficiency products and services if it is technically viable and cost-effective. The amended law requires evaluation of bids to be based on life-cycle costs. 3.3.6. Covenant of Mayors The EU Covenant of Mayors for climate and energy initiative is a commitment of cities and municipalities to reducing CO2 emissions by increasing energy efficiency, and the use of clean technologies for energy production and consumption. While this Initiative is not a source of financing, it supports cities and towns to leverage financing. The Covenant of Mayors aims to contribute to reducing CO2 emissions beyond the EU's obligations. The initiative is however based on voluntary commitments and is not legally mandated. To participate in the Convention, cities and municipalities have to commit to reduce CO2 emissions by more than 20% by 2020 and to prepare a Sustainable Energy Action Plan which will include measures to achieve the emission reduction goal. The Slovak Covenant of Mayors cooperates with ministries and governmental agencies and can help cities and towns finance the preparation of a Sustainable Energy Action Plan. The twelve cities which have joined the Covenant of Mayors in Slovakia can take advantage of grants for non-investment projects using the ELENA (European Local ENERGY Assistance) and MLEI (Mobilization of Local Energy Investments) mechanisms as well as loans for investment projects from the European Energy Efficiency Fund. Cities could also join the Smart Cities initiative or apply to the EU’s Intelligent Energy program under the Horizon 2020 program. 3.4. Key Takeaway from Review of EE in Slovakia The Slovak Republic’s energy policy (Resolution No 548/2014) seeks to achieve a competitive, low-carbon energy industry, and promote sustainable development and EE in all sectors of the economy including in public buildings. The key takeaways from the review of EE initiatives in Slovakia are summarized below. • Slovakia proposes to decrease primary energy consumption in 2020 by 19.5% compared to the PRIMES 2007 reference scenario to a level of 686 PJ. • The national instruments for implementation of EE are EEAPs. The MoE, has established an Inter- ministerial Working Party involving all relevant government agencies to systematically address EE management, planning and monitoring. Slovakia has thus far prepared four EEAPs, and the most recent EEAP is for the period 2017-2019 (with projections for 2020). • The 4th EEAP for Slovakia established the targets for energy savings and noted the following: o A national indicative energy efficiency target (compared to the PRIMES 2007 reference scenario) of 20% (191 TWh or 686 PJ) for primary energy consumption in 2020, and a target of 31% (105 TWh or 387 PJ) for final energy consumption. Actual energy saving in primary and final energy 25 consumption in 2014 was 627 PJ and 367 PJ, respectively. And in 2015, the corresponding figures for savings were 640 PJ and 383 PJ. The annual savings were thus below the target for 2020. o A building energy savings target to annually renovate 3% of the total floor area of all public buildings. The national target for energy savings in 2020 is 52.17 GWh per year (cumulative savings of 365.19 GWh by 2020). o Actual energy savings in buildings was 54.13 GWh in 2015 (above the annual target), but only 23.02 GWh in 2016 (44% of the annual target). Lack of resources and delays in implementation of projects are said to be the cause for lower energy savings. o To meet the requirement of saving 1.5% of annual energy sales to customers for each energy supplier, Slovakia’s target for savings in final consumer energy use is estimated at 948.75 GWh per year (26,565 GWh or 3,415.5 TJ up to the year 2020). o The cumulative energy savings target in final energy consumption for the period 2014-2020 is 26,565 GWH (95,634 TJ). The revised annual target for savings for the period 2017 to 2020 is 1,019.49 GWH. • The buildings sector accounted for half the entire energy savings during 2014-2016 (5,051.22 TJ out of 10,085.28 TJ). To achieve these savings, about two thirds of financial resources were allocated to buildings (EUR 3,68 billion out of 5,68 billion). • EE measures undertaken in the public sector focused mainly on improvements in the thermal performance of public buildings financed by the EU Structural Funds, national and international programs and funds, internal budgets, and EPC services. • The target for energy savings in final energy consumption for the period 2017-2020 in buildings is 4,280 TJ, which is estimated to need financial resources of EUR 2.1 billion. The corresponding target for savings in the public sector is 1,706 TJ at an estimated cost of EUR 800.5 million. • The average investment intensity for achieving energy savings in buildings over the period 2014-2016 was 2,620 EUR/MWh. The corresponding figure of the public sector was 1,176 EUR/MWh. This average investment intensity is used to project the need for financial resources for achieving energy saving during the period of the 4th EEAP. • The sources of public financing for EE in Slovakia include Slovak government funds, EU structural funds and the Cohesion Fund. Other public sources of funding include the State Housing Development Fund, the Housing Development Program, the Government Insulation Program, the Slovak Energy Efficiency and Renewable Energy Finance Facility, the Covenant of Mayors, the Norwegian Financial Mechanism and other international support programs such as ELENA, European EE Fund, MUNSEFF and SLOVSEFF. Sources of private funding include private investments, financial instruments provided by commercial financial institutions, the SPP-EkoFund, and ESCO financing. 26 4. Institutional Structure for the Energy and EE Sector in Slovakia 4.1. Public Sector Institutions The principal ministries involved with policy making and implementation support for EE in Slovakia are the Ministry of Economy, the Ministry of Transport and Construction, the Ministry of Environment, and the Ministry of Finance. Consistent with the EE policy of the Slovak Republic, regional governments (such as PSK) and local governments also have a key role to play in implementing EE in public facilities. The primary responsibilities of public institutions in supporting EE in Slovakia is illustrated in Figure 6. Figure 6: Responsibilities of public institutions in supporting EE in Slovakia Institutional responsibilities for energy sector & EE Ministry of Ministry of Regional & Local Ministry of Economy Ministry of Finance Transport and Environment Governments Construction SIEA (energy audits, Database on public support for EPC, Energy & EE Policy New EPC Act EE implementation buildings etc.) Energy Efficiency Low-carbon Slovak Investment Lesgislation on Action Plans economy Holding construction Guidelines for ESCOs, certification, etc. 4.1.1. Ministry of Economy The Ministry of Economy is responsible for the energy sector in Slovakia. The current energy strategy for Slovakia was developed in 2007 and the energy policy was prepared in 2014. Slovakia is now in the process of developing new regulations consistent with the EU 2030 agenda for sustainable development and related targets and guidelines. The new energy strategy and policy will include targets to be met by 2030. As noted earlier, public buildings will have to annually retrofit 3% of floor space and reduce energy consumption by 57 GWh by 2020. The Ministry is also responsible for the preparation of the EEAP; the 4th EEAP covers the period 2017-2019 with a view to 2020. The Ministry of Economy proposes to complement the national database on public buildings maintained by the Ministry of Transport and Construction with a compilation of financial resources and instruments available to municipalities and regional governments. The ministry also proposes to revise guidelines for certification of energy auditors and ESCOs (while the SIEA certifies auditors, the Ministry of Economy prepares the guidelines). The Ministry is considering tapping guarantees from the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) for financing ESCOs since EUROSTAT guidelines prohibit the use of public funds for providing guarantees. The Ministry of Economy leads the Slovak low carbon economy program, program design, improvement of air quality, and compliance with EC regulations. The climate change division within the Ministry maps areas at high risk for poor air quality and undertakes economic analysis of mitigation measures. 27 4.1.2. Ministry of Transport and Construction The Ministry of Transport and Construction of the Slovak Republic has a role in establishing minimum standards for energy consumption in public buildings. The Ministry of Transport and Construction maintains a database of all public buildings and is responsible for the energy performance of buildings. 4.1.3. Slovak Innovation and Energy Agency (SIEA) The SIEA is under the Ministry of Economy and supports improved energy efficiency in public buildings. SIEA undertakes analysis and monitoring of EE programs in all sectors of the Slovak economy. SIEA also performs energy audits and has recently conducted about 64 audits in public buildings in Bratislava and PSK with funds from the EBRD; it has previously conducted some 250 energy audits. SIEA estimates that the greatest opportunities for savings are in lighting, heating and insulation of buildings18. The SIEA has offices in various regions of the country and has 15 energy auditors who, apart from performing audits, train other energy auditors in the country. The SIEA operates with public finances and supports the preparation of public tenders for project implementation. 4.1.4. Ministry of Finance The Ministry of Finance is spearheading the development of the new law and practitioner’s guide which will allow municipalities to contract with Energy Service Companies (ESCOs) to improve the energy performance of public buildings. The new law will make it easier for municipalities to tender contracts to ESCOs without impacting their debt ceiling. The draft law in its present form recommends that municipalities first tender a contract to undertake an assessment of the potential for energy efficiency in public buildings, followed by a second procurement for an Energy Performance Contract (EPC) to avoid any conflict of interest. The Ministry of Finance acknowledges that training and certification may be required for energy auditors to provide services consistent with the requirement of the proposed law. In support of the new Act, the Ministry of Finance has proposed a guaranteed savings approach with about two-thirds of the savings beyond the guaranteed savings accruing to the ESCO. The Ministry of Finance recognizes that EPC may not be attractive for all public buildings since many facilities are used only for part of the day and the repayment period for EE projects may be too long. The Ministry is preparing templates for contract documents consistent with EU directives and regulations. EUROSTAT guidance will allow municipalities to finance projects using a combination of funds from the ESIF and EPC financing and potentially use the ELENA facility for project preparation. The Ministry of Finance is also examining provisions in existing legislation that may need to be revised to conform to EUROSTAT guidance. For instance, present legislation requires that the debt of municipalities not exceed 50% of the income from the previous year. The Ministry is also examining mechanisms through which ESCOs could use receivables as collateral to obtain financing from commercial banks or obtain commercial insurance against any defaults in payment or termination of contract. The Ministry of Finance has prepared a draft of the EPC Act and draft documents for the first level assessment of opportunities to improve energy performance. The Ministry proposes to make the procurement process simple and revise some conditions required under the existing public procurement law (bid evaluation under the current procurement law applies a weight of 55% to energy savings proposed by the bidder and 45% to the price bid). The Act will also permit municipalities to bundle projects since single buildings may not be attractive to ESCOs. The MoF envisions three phases for the entire procurement process as shown in Figure 7. 18 Information based on meetings with the SIEA in July 2018. 28 Figure 7: Procurement process for the proposed new EPC Act Phase 1: Phase 2: Verification of opportunities Tendering of EPC, to improve energy construction permit, Phase 3: performance and approval by facility owner, EPC guarantee period preparation of tender and handover of project to documents building owner As noted earlier, the EPC Act is planned to be adopted in the 2nd quarter of 2019. The Ministry of Finance recognizes that developing the ESCO market for participation in public buildings will require more firms and energy auditors to be trained and certified. There may also be a need to reexamine building codes for existing public buildings; while the existing of buildings are required to be renovated and meet the same energy performance standards as new construction, exemptions are provided if some renovation measures are not technically feasible or not financially viable. Since technical feasibility of measures is not clearly defined, many existing buildings could seek exemptions from renovation. The Department of Financial Instrument and International Relations of the Ministry of Finance supports the blending of funding sources for undertaking projects in public buildings, which initially may be challenging for municipalities. The Ministry also supports the bundling of public buildings in a region to include facilities owned by municipalities and towns in a region to scale up the project size and make it attractive for EPC bidders. The Ministry further supports the use of EU funds for the period beyond 2020 to support EPC contracting in public buildings19. 4.1.5. Slovak Guarantee and Development Bank The Slovak Guarantee and Development Bank provides loans and guarantees to SMEs, local communities, and municipalities. The bank could also finance regional governments, but financing is provided on a project basis. The bank uses a mix of domestic resources and foreign credit lines to fund its operations. The bank noted that Slovakia’s financial markets are very liquid and there may not be a need for additional lines for credit for EE projects20. However, the EBRD has provided lines of credit to commercial banks in Slovakia for the MUNSEFF and SLOSEFF programs and intends to continue the program with additional lines of credit to commercial banks. 4.2. Private Entities Supporting EE in Slovakia 4.2.1. ESCO Association of Slovakia The ESCO association of Slovakia was established in 2014 and presently has 18 members – 12 ESCOs and 6 consultants/energy advisors. ESCOs have been operational in Slovakia for several years and have undertaken projects under both the shared savings and guaranteed savings approaches. Projects in public facilities have been financed by the ESCO’s with a typical repayment period of 12 years. Projects in commercial buildings have been financed by both ESCOs and the facility owner depending on the cost of capital. Projects implemented by ESCOs have ranged from EUR 10,000 to EUR 3 to 4 million. Public lighting projects have been undertaken for municipalities with a typical contract value of about EUR 20,000. The ESCO association has considered adapting the International Performance Measurement and Verification Protocol (IPMVP) for use by ESCO in Slovakia. Savings from ESCO projects are presently calculated based on actual measurements consistent with the European code of conduct for EPC. Financing 19 Discussions of the WB team with the Ministry in July 2018 20 Discussions during a meeting with the WB team in July 2018 29 for projects in not an issue and low-cost funds are available from the EIB and EBRD (EBRD funds are reportedly available at under 0.5% with a 30-year repayment period). The regulatory framework for ESCOs to support municipalities is expected to improve when the new Act is enacted to allow municipalities to contract with ESCOs to undertake energy improvement projects in public buildings. The ESCO association has provided inputs to the Ministry of Finance in the drafting of the law and in the preparation of standardized contracts. 4.2.2. Green Building Council (GBC) The Slovak chapter of the GBC is not affiliated with the World GBC (as of 2016). It presently has about 46 members which includes suppliers, consultants, energy auditors and architects. The GBC supports the proposed new EPC Act to improve the efficiency of public buildings. New EU regulations (the Energy Performance of Buildings Directive) requires all new buildings to be “Nearly zero-energy buildings (NZEBs)â€? by the end of 2020, and all new public buildings to be nearly zero-energy by 2018. The proposed EPC Act is consistent with the need of Slovakia to comply with the EU directive on NZEBs. The GBC is concerned that Slovakia does not have enough professional firms to undertake work in municipalities across the country to help them meet the EU directive. 4.2.3. Technical University, KoÅ¡ice & Bratislava21 The Technical Universities in Bratislava and KoÅ¡ice have technical expertise in building design and modeling of efficient energy systems. The Department of Construction and Architecture (DCA) at the Technical University in KoÅ¡ice has excellent capabilities in modeling energy use in buildings. The DCA faculty has considerable experience with energy use in buildings and has conducted energy audits and technical evaluation of buildings, and modeling of building energy use based on physical and environmental characteristics. Models of building energy use are used to assess opportunities for EE based on the technical feasibility of incorporating energy efficient technologies and innovative construction techniques and building materials. DCA specializes in heating, ventilation and air conditioning of buildings and in the incorporation of innovative technologies and materials to construct NZEBs. The faculty of DCA has experience providing training for companies to undertake property management of facilities and has developed manuals and guides for property management. The DCA has previously conducted 53 energy audits for the Ministry of the Interior. The DCA could support PSK by developing models of typical public buildings to estimate the feasibility of improving the efficiency of building energy use. The DCA worked with a commercial architect to design a NZEB, which is under construction on campus. The building incorporates innovative building materials, construction techniques and technologies and is expected to be completed by the end of the year. 4.2.4. District heating and electricity company, PreÅ¡ov There are several major international firms and regional and local electric, gas and district heating utilities across the country that support EE activities. The WB team has met with Spravbytkomfort, the district heating company in PreÅ¡ov, which is supporting EE activities in its service territory. Spravbytkomfort, the district heating and electricity company of PreÅ¡ov supplies heat to some 23,800 apartments and 90 public buildings in PreÅ¡ov. In addition to supplying heat and electricity, the company provides facilities management services to some 270 buildings in PreÅ¡ov (which includes 9,807 apartments/flats) and supports the implementation of projects to improve EE in buildings. The firm has undertaken the refurbishment of 195 residential buildings at a total cost of about EUR 44 million. The projects were financed through commercial loans and funds from the Slovak Housing Development Fund. Building owners are responsible to arrange financing and make repayments. Funds from the EU’s JESSICA 21 The WB team has had discussions only with the Technical University in KoÅ¡ice and not in Bratislava 30 program were used to partly finance some refurbishment projects. The typical investment in a building with 60 flats is about EUE 400,000 to 500,000, and about EUR 250,000 for buildings with 30 units. The company is keen to expand its facilities management services for buildings and support EE in public buildings in PSK. The firm supplies heat to some public building owned by PSK and has offered to refurbish them (it was noted that PSK has not yet made a request for assistance) . The city of PreÅ¡ov, which owns 45% of the firm, has also not requested the firm to provide facilities management services. The firm had considered operations as an ESCO and had invested in the refurbishment of a building. But it was audited by the Slovak public audit authorities and penalized since the firm was not incorporated or chartered to provide financing/loans. The firm was fined for providing loans to its customers and is battling the case in courts. 4.3. PreÅ¡ov region programs and budgets for improving EE in public buildings EE projects implemented in public buildings in PreÅ¡ov region are principally those supported under the ELENA facility, which provided investment support to public buildings owned by PSK and those owned by local governments of towns and villages in the PreÅ¡ov region. ELENA supported towns and villages to develop proposals for tapping non-repayable financing from the calls for project proposals issued by the SIEA. Projects supported by ELENA included public lighting, energy audits and building renovations in some public facilities. While the total value of investments during the reporting period (January 2015 to June 2016) were in an amount of EUR 5,016,513.78, only about EUR 862,600 was invested in improving the performance of public buildings. These projects, which were implemented through 10-year EPC contracts led to energy savings of 753,975 MWh. 31 5. Existing Stock of Public Building in PreÅ¡ov Region 5.1. Public buildings characterized by type of building The PSK region owns 133 public buildings or facilities which include secondary schools, assisted living facilities (social services), cultural facilities, buildings of the regional roads administration (RRA), and administrative building of PSK. The 133 facilities encompass some 488 buildings with most facilities comprising multiple buildings. It should be noted that PSK owns and operates only two buildings. The administrative buildings of the town and municipalities are not owned by PSK. Public buildings and facilities may be characterized as shown in Table 9 and Figure 8. The total floor area of public buildings is shown in Figure 9. Table 9: Characterization of Public Buildings in PreÅ¡ov Region Source: PSK, 2018. Figure 8: Public buildings in PSK Source: PSK, 2018. 32 Figure 9: Floor area of public buildings in PSK Source: PSK, 2018. The database of public buildings in PSK along with their energy consumption (2010-2013) and indicative opportunity for energy savings was estimated by ENECO, an energy efficiency consulting firm, which was previously contracted by an earlier PSK government. ENECO acknowledged that the survey approach for this earlier study was not robust and the estimates of opportunities for energy savings may not be accurate. The present PSK government once again contracted ENECO to update the database and this work was largely completed in December 2018, though some elements of the database continue to be updated. The updated database includes energy consumption data for the period 2014-2017 and the estimates for energy savings have also been revised based on results from energy audits of some buildings. FMD has designated the Facilities and Asset Management Unit within the FMD to maintain the database on public buildings. 5.2. Energy use in Public Buildings in PSK The public buildings are managed independently by directors/managers of the facilities who coordinate with the relevant director in PSK to plan and budget operational and capital improvement projects. The public schools, social services facilities and cultural facilities benefit from financial support from the Slovak central government with the relevant ministries providing budgetary support, and the facilities individually manage their energy facilities and pay their utility bills. However, any increase in energy consumption negatively impacts the operational budgets of the facilities. At times of budgetary shortfalls, PSK provides incremental financing to cover utility bills; this generally happens during winter months when heating bills can be high depending on the weather. Energy use information for individual public facilities from utility bills is not collated and databased centrally and this makes it difficult to analyze energy bills on a periodic basis and better manage annual budgetary spend on energy consumption. The annual energy consumption in public buildings over the period 2010 to 2017 is shown in Table 10 and Figure 10 for each fuel source consumed in buildings. Consumption of all fuels has is reported in Mega Watt hours (MWh) for consistency and to enable comparison of per unit consumption with new building performance standards. On average, the consumption of natural gas accounts for over 72% of total fuel consumption, and electricity accounts for about 14% (see Figure 11). The total annual consumption of all fuels in PSK public buildings in illustrated in Figure 12, which indicates that fuel consumption has 33 decreased over the period 2010-2017. This is attributed to the building renovations and equipment replacements that take place on a routine basis leading to incremental improvement in energy efficiency across the entire stock of public buildings. Table 10: Annual energy consumption in PSK public buildings Source: PSK, 2018. Figure 10: Trend in annual energy consumption in PSK public buildings by type of fuel Source: PSK, 2018. 34 Figure 11: Average fuel use in PSK public buildings Source: PSK, 2018. Figure 12: Annual consumption of all fuel in PSK public buildings Source: PSK, 2018. 35 5.2.1. Energy use and expenditure in Public Schools Energy use and expenditure for heating (the primary thermal demand) and electricity (principally used for lighting and electric appliances not including air-conditioning) in public schools is provided in Table 11 below. This table includes energy use only in high schools (both traditional pre-university institutions and vocational high schools), which are under PSK. Elementary and secondary schools are not included since those are operated by cities and municipalities. The use of energy for space heating has increased significantly over the past few years and this includes natural gas, some biomass, and purchased heat (from local district heating companies). ENECO, the energy consultancy that updated the surveys of energy use in public buildings, notes that while energy use in heating has increased, most schools do not fully heat all areas to an optimal temperature to keep energy expenditures low. Energy use in public schools is also shown in Figure 13, which clearly indicates that schools predominantly consume fuels for heating, and electricity consumption accounts for only about 14% of total energy consumption. The heating energy use per unit floor area for all 80 schools comprising 239 buildings increased on average from about 56 kWh/m2/yr. to 69 kWh/m2/yr. over the period 2014 to 2017. The average per unit consumption does not reveal the very wide variation in per unit heating energy used in individual school buildings, which for year 2017, ranged from 8 kWh/m2/yr. to over 940 kWh/m2/yr. The wide variation could be caused by a number of factors. Traditional high schools have very different energy use than vocational schools that focus on a trade, nursing, business, hotel management or other profession. Also, many vocational schools have large residential facilities which can significantly skew per unit energy use. The variations in per unit energy use can also be attributed to schools not heating all areas as noted above, and to faulty or missing data. Electricity use per unit floor area for all school buildings did not vary much over the period 2014 to 2017 and was about 10 kWh/m2/yr. But as in the case of energy used for heating, the average per unit consumption does not reveal the very wide variation in per unit electricity consumption in individual school buildings, which for year 2017 ranged from under 1 to about 1,000 kWh/m2/yr. The wide variation could be caused by a number of factors depending on the type of school and function of building in a facility. To better understand energy use in schools, the database will have to be updated to capture the key variables that could cause energy use per unit floor area to vary. The next stage of analysis to be undertaken by the FMD could be for specific category of school; residential, non-residential, type of vocational school, etc. and after substantiating missing and erroneous data and information on the use of various buildings within a school’s facilities. Table 11: Energy use and expenditure in public schools in PSK Public schools under the PSK Energy Use and Expenditure 80 education facilities; 239 buildings; average age: 47 years 2014 2017 Energy used for heating (MWh) 32,248 40,233 Energy used for heating 56 69 (kWh/m2/yr) 36 Heating energy expenditure ( €) 1,985,754 2,055,212 Electricity usage (MWh) 5,601 5,643 Electricity use (kWh/m2/yr) 9.7 9.7 Electricity expenditure (€) 987,203 960,882 Source: PSK, ENECO surveys, WB analysis Figure 13: Energy use in public schools in PSK Source: PSK, ENECO surveys, WB analysis 5.2.2. Energy use and expenditure in Social Service Facilities Energy use and expenditure for heating (space heating and hot water) and electricity (principally used for lighting and electric appliances) in social services facilities under PSK is provided in Table 12 below. The use of energy for heating has increased by about 11% over the past few years and this includes natural gas, some biomass, and purchased heat (from local district heating companies). Unlike the public schools, social service facilities are fully heated throughout the heating season and use significant amount of hot water since they care for the elderly and infirm populace. Energy use in social service facilities is also illustrated in 37 Figure 14, which indicates that over three quarters of energy consumption is for space and water heating, and electricity consumption accounts for about 23% of total energy consumption. The heating energy use per unit floor area for all 25 social service facilities comprising 87 buildings increased on average from about 118 kWh/m2/yr. to 131 kWh/m2/yr. over the period 2014 to 2017. The average per unit consumption does not reveal the very wide variation in per unit heating energy used in individual social service facility buildings, which for year 2017, ranged from 49 kWh/m2/yr. to over 1,000 kWh/m2/yr. The wide variation could be caused by the type of facility and the services offered. While some facilities are primarily old-age homes other facilities have health and nursing facilities which significantly impact energy use. The variations in per unit energy use can also be attributed to faulty or missing data. Regardless, the heating energy use per unit floor area for social service facilities is on average much higher than that for schools given that these facilities are occupied and used throughout the year. Electricity use per unit floor area for all social service facilities did not vary much over the period 2014 to 2017 and was between 28-30 kWh/m2/yr. But as in the case of energy used for heating, the average per unit consumption does not reveal the very wide variation in per unit electricity consumption in individual social service facility buildings, which for year 2017 ranged from under 1 to over 450 kWh/m2/yr. The wide variation could be caused by a number of factors depending on the function of the building within the social service facility. To better understand energy use in social service facilities, the database will have to be updated to capture the key variables that could cause energy use per unit floor area to vary. The next stage of analysis to be undertaken by the FMD could be for specific category of social service facility; old-age home, care facility with health services, etc. and after substantiating missing and erroneous data and information on the use of various buildings within a facility. Table 12: Energy use and expenditure in social service facilities in PSK Social Service Facilities under Energy Use and Expenditure the PSK 25 facilities; 87 buildings; 2014 2017 average age: 73 years Heating energy use (MWh) 10,732 11,933 Energy used for heating 118 131 (kWh/m2/yr) Heating energy expenditure ( €) 585,736 565,032 Electricity usage (MWh) 2,524 2,691 Electricity use (kWh/m2/yr) 28 30 Electricity expenditure (€) 407,226 404,067 Source: PSK, ENECO surveys, WB analysis 38 Figure 14: Energy use in social service facilities in PSK Source: PSK, ENECO surveys, WB analysis 5.2.3. Energy use and expenditure in Cultural Facilities Energy use and expenditure for heating (primarily space heating) and electricity in cultural facilities under PSK is provided in Table 13 below. The use of energy for heating has increased by over 60% over the past few years and this includes natural gas, some biomass, and purchased heat (from local district heating companies). Cultural facilities are diverse ranging from museums to theaters and a planetarium. The energy use in these facilities varies significantly depending on the function and hours of operation. Energy use in cultural facilities is also illustrated in Figure 15, which indicates that about 60% of energy consumption is for heating, and electricity consumption accounts for the rest of total energy consumption. The heating energy use per unit floor area for all 26 cultural facilities comprising 71 buildings increased on average from about 27 kWh/m2/yr. to 41 kWh/m2/yr. over the period 2014 to 2017. The average per unit consumption does not reveal the very wide variation in per unit heating energy used in individual cultural facility buildings, which for year 2017, ranged from 22 kWh/m2/yr. to over 196 kWh/m2/yr. The wide variation is principally due to the type of cultural facility, which as noted above, serve very different functions. The variations in per unit energy use can also be attributed to faulty or missing data. Regardless, the heating energy use per unit floor area for cultural facilities is on average much lower than that for schools or social service facilities since these facilities are used for limited hours in a year. Electricity use per unit floor area for all cultural facilities over the period 2014 to 2017 and was between 13-17 kWh/m2/yr. But as in the case of energy used for heating, the average per unit consumption does not reveal the very wide variation in per unit electricity consumption in individual social service facility 39 buildings, which for year 2017 ranged from under 1 to over 288 kWh/m2/yr. The wide variation could be caused by a number of factors depending on the function of the building within the cultural facility. To better understand energy use in cultural facilities, the database will have to be updated to capture the key variables that could cause energy use per unit floor area to vary. The next stage of analysis to be undertaken by the FMD could be for specific category of cultural facilities; museum, theater, etc. and after substantiating missing and erroneous data and information on the use of various buildings within a facility. Table 13: Energy use and expenditure in cultural facilities in PSK Cultural Facilities under the Energy Use and Expenditure PSK 28 facilities; 67 buildings; 2014 2017 average age: 35 years Heating energy use (MWh) 2,003 3,226 Energy used for heating 27 44 (kWh/m2/yr) Heating energy expenditure ( €) 145,649 195,685 Electricity usage (MWh) 940 1,264 Electricity use (kWh/m2/yr) 13 17 Electricity use expenditure (€) 163,489 186,046 Source: PSK, ENECO surveys, WB analysis Figure 15: Energy use in cultural facilities in PSK 40 Source: PSK, ENECO surveys, WB analysis 5.2.4. Energy use and expenditure in Regional Roads Adminsitration Energy use for heating (primarily space heating) and electricity in the RRA in PreÅ¡ov region is provided in Table 14 below. The expenditure on energy is yet to be ascertained. The use of energy for heating has increased by about 20% over the past few years and this includes natural gas and some biomass. The buildings of the RRA vary from offices to workshops, maintenance facilities, storage facilities, staff changing rooms, etc. The energy use in these facilities varies significantly depending on the function of the building. Energy use in the RRA is also illustrated in Figure 16, which indicates that about 87% of energy consumption is for heating, and electricity consumption accounts for only 13% of total energy consumption. The heating energy use per unit floor area for the RRA comprising 89 buildings increased on average from about 103 kWh/m2/yr. to 125 kWh/m2/yr. over the period 2014 to 2017. The average per unit consumption does not reveal the very wide variation in per unit heating energy used in individual buildings of the RRA, which for year 2017, ranged from 13 kWh/m2/yr. to over 580 kWh/m2/yr. The wide variation is principally due to the type of building, which as noted above, serve very different functions and have widely varying hours of operation. The variations in per unit energy use can also be attributed to faulty or missing data. Regardless, the heating energy use per unit floor area for the RRA is on average much higher than that for schools and is similar to that for social service facilities. Electricity use per unit floor area for all buildings of the RRA did not vary over the period 2014 to 2017 and was about 17 kWh/m2/yr. But as in the case of energy used for heating, the average per unit consumption does not reveal the very wide variation in per unit electricity consumption in individual buildings of the RRA, which for year 2017 ranged from about 3 to over 1,100 kWh/m2/yr. The wide variation could be caused by a number of factors depending on the function of the building. To better understand energy use in the RRA, the database will have to be updated to capture the key variables that could cause energy use per unit floor area to vary. The next stage of analysis to be undertaken by the FMD could be for specific category of buildings within the RRA. Table 14: Energy use and expenditure in RRA in PSK RRA in PSK Region Energy Use and Expenditure 89 buildings; average age: 2014 2017 Heating energy use (MWh) 3,298 4,000 Energy used for heating 103 125 (kWh/m2/yr) Heating energy expenditure N/A N/A ( €) 41 Electricity usage (MWh) 552 527 Electricity use (kWh/m2/yr) 17 17 Electricity expenditure (€) N/A N/A Source: PSK, ENECO surveys, WB analysis Figure 16: Energy use in RRA in PSK Source: PSK, ENECO surveys, WB analysis 5.2.5. Energy use and expenditure in Administrative Buildings Energy use and expenditure on energy in the two administrative buildings under PSK is provided in Table 15 below. The PSK buildings principally use energy for space heating and electricity is used for lighting and office equipment (the buildings do not have air-conditioning). The main PSK administrative building is connected to the local district heating network, and the second building is heated with a gas- based heating system. Both buildings have been renovated. Data for the period 2014 to 2017 is yet to be updated in the database. Table 15: Energy use and expenditure in administrative buildings in PSK Administrative Buildings under Energy Use and Expenditure the PSK 1 facilities; 2 buildings; average Average for Period 2010-2013 age: 37 years Heating energy use (MWh) 886 Energy used for heating 80 (kWh/m2/yr) 42 Heating energy expenditure (€) N/A Electricity usage (MWh) 363 2 Electricity use (kWh/m /yr) 32 Electricity expenditure (€) N/A Source: PSK, ENECO 43 5.3. Opportunities for Improving Energy Use in Public Buildings in PSK There is significant potential for improving energy efficiency in public buildings in PSK. This is especially the case since many public buildings are relatively old structures with poor thermal insulation and often times use old energy equipment. Discussions with the ELENA unit within PSK, which undertook energy audits and assessments and supported EE investments, the Slovak Innovation and Energy Agency (SIEA), which has undertaken several energy studies, and the Green Building Council all indicate that there is a significant opportunity for improvement in energy efficiency in public buildings in Slovakia. In the PreÅ¡ov region, the ECs ELENA program provided support to identify energy efficiency opportunities. During an eighteen-month period from 1st January 2015 to 30th June 2016, the ELENA unit in PreÅ¡ov implemented projects in the region that cumulatively saved about 255.5 MWh of electricity with an investment of about EUR 759,62322. Many of the projects were implemented for facilities owned by cities and municipalities, and some projects were unrelated to buildings and improved public lighting. The portfolio of projects had a very long payback period (about 40-50 years), and some of the investment was not directly related to energy efficiency. Actual data and information from energy audits of public building is however not publicly available and the reports are submitted to building owners (municipalities and towns). Stakeholders note that the challenges of implementing EE projects in public buildings include a lack of financial and human resources to undertake energy audits, identify opportunities, and source financing to make investments. In PSK, routine maintenance of public buildings is conducted by technicians and equipment operators within the facilities and major maintenance and repairs are contracted out to specialized firms. The facilities are unable to raise financing for capital improvements and capital projects are financed by PSK. The individual facilities also do not have the technical expertise to undertake energy analysis and identify opportunities for energy savings, and such analysis is either undertaken by technical staff in PSK (previously with ELENA) or contractors and equipment suppliers. Given the challenges of investing in EE measures, a relatively small number of public buildings in PSK have been renovated. The number of public buildings renovated in PSK is shown in Table 16. The opportunity for energy efficiency in public building in PSK is thus very significant. This is also evident from the analysis of energy use in public buildings presented in the previous section. The energy intensity for public buildings is well above the A0 class performance as required by the nZEB regulations (see Section 2.3.2). Table 16: Status of renovation of public buildings in PSK Source: PSK, 2018. 22 Interim report on “Sustainable Energy in PreÅ¡ov Region (SEPR), ELENA-2012-044; Reporting period: l" January 2015 to 30th June, 2016; Third Bi-annual Progress Report 44 In 2014, ENECO, the consulting firm supporting PSK, made a rough estimate of the potential for energy savings in public buildings in PSK. Most PSK building lack energy certificates (which are mandated by regulations), and the potential for savings was baselined on normative figures for energy consumption in typical public building (for e.g. a typical school buildings) obtained through questionnaire based surveys of PSK buildings. The potential for savings was estimated based on the premise that buildings would have to meet A1 class energy performance standards (the requirement in 2014). ENECO acknowledged that the questionnaire developed to gather information was poorly designed, and the data collected could not be validated and was inadequate for rigorous analysis to estimate the potential for energy efficiency and the investment needs. ENECO noted that 99% of all facilities use natural gas for heating, and the potential for energy savings is primarily through more efficient equipment and operational controls than from opportunities for fuel switching. ENECO has recently revised its earlier analysis and it now estimates that the potential for energy efficiency in public buildings in PSK is about 28,700 MWh/year amounting to about €2.2m. The investment in EE measures is estimated to be about €56m (see Table 17). Table 17: Estimated Potential for energy savings and investment needed for EE measures in PSK public buildings Source: PSK, ENECO While the potential for energy savings is significant, the cost of implementing EE measures is also very high. The simple payback period on the investment is thus very long and is unlikely to attract private investment from ESCOs. A more rigorous analysis to identify the potential for energy efficiency in public buildings and the investment needed is being discussed with the FMD, and is expected to be completed in April. It is also planned to develop standardized models for typical public buildings to improve estimates. The revised analysis will be based on public buildings meeting AO (nZEB) standards as required by the legislation. In reality the potential for energy efficiency will be lower than that required by A0 standards since it may not be technically or financially feasible to retrofit all existing stock of public buildings to meet the same standards as new build. Meeting A0 performance standards will require public building to significantly lower their energy consumption compared to A1 standards. For example, as indicated in Section 2.3.2, the A1 standards for schools is 35-68 kWh/m2/year and the A0 standard will require the building to have an energy intensity lower than 34 kWh/m2/year. The estimated potential for EE will thus be much higher when the analysis is 45 revised with better information and modeling of typical buildings. The revised analysis will also be based on energy consumption data for the period 2014-2017 as opposed to date for the period 2010-2013 used in the earlier analysis. 5.3.1. Energy Savings Potential in Schools The potential for energy savings in heating (thermal) systems is estimated by ENECO to be about 30% of present consumption based on thermal retrofitting of buildings (insulation of walls, roof, floor, etc.), replacement of old windows, and replacement of old heating systems. The measures are expected to improve building energy performance to meet A1 standards (<28 kWh/m2/year in heating systems) and will reduce the use of natural gas and lower purchase of heat from district heating companies. The analysis takes account of partial and full EE measures that already have been implemented by some schools. Savings in electricity use will principally be from more efficient lighting systems and is estimated to be result in a 48%% reduction in electricity use to meet A1 standards (<9 kWh/m2/year). The combined potential for energy savings is estimated to be about 31% of energy consumption in 2013 (see Figure 17). The measures are expected to improve overall building energy performance to meet A1 standards (35-68 kWh/m2/year). As noted above, the WB team is supporting PSK improve the analysis and re-estimate the potential for energy savings in schools based on buildings meeting the now legislated A0 performance standards, which will require schools to have an energy intensity lower than 34 kWh/m2/year. Figure 17: Potential for Energy Savings in Schools in PSK Source: PSK, ENECO 5.3.2. Energy Savings Potential in Social Facilities The potential for energy savings in heating (thermal) systems is estimated by ENECO to be about 46% of present consumption based on thermal retrofitting of buildings (insulation of walls, roof, floor, etc.), replacement of old windows, and replacement of old heating systems. The measures are expected to 46 improve building energy performance to meet A1 standards for such buildings (<35 kWh/m2/year in heating systems) and will reduce the use of natural gas and biomass, and lower purchase of heat from district heating companies. The analysis takes account of partial and full EE measures that already have been implemented by some social service facilities. Savings in electricity use will principally be from more efficient lighting systems and is estimated to be result in a 48%% reduction in electricity use to meet A1 standards for such facilities (<16 kWh/m2/year). The combined potential for energy savings is estimated to be about 31% of energy consumption in 2013 (see Figure 18). The measures are expected to improve overall building energy performance to meet A1 standards for such facilities (99-197 kWh/m2/year). The analysis is being revised to re-estimate the potential for energy savings in social facilities based on buildings meeting the now legislated A0 performance standards, which will require these buildings to have an energy intensity lower than 98 kWh/m2/year. Figure 18: Potential for Energy Savings in Social Facilities in PSK 14,000 12,000 10,000 8,000 MWh Power 6,000 Heating 4,000 2,000 - Old New Source: PSK, 2018. 5.3.3. Energy Savings Potential in Cultural Facilities The potential for energy savings in heating (thermal) systems is estimated by ENECO to be about 37% of present consumption based on thermal retrofitting of buildings (insulation of walls, roof, floor, etc.), replacement of old windows, and replacement of old heating systems. The measures are expected to improve building energy performance to meet A1 standards for such buildings (<28 kWh/m2/year in heating systems) and will reduce the use of natural gas and lower purchase of heat from district heating companies. The analysis takes account of partial and full EE measures that already have been implemented by some cultural facilities. Savings in electricity use will principally be from more efficient lighting systems and is estimated to be result in a 41%% reduction in electricity use to meet A1 standards for such facilities (<15 kWh/m2/year). The combined potential for energy savings is estimated to be about 38% of energy consumption in 2013 (see Figure 19). The measures are expected to improve overall building energy performance to meet A1 standards for such facilities (62-122 kWh/m2/year). 47 The analysis is being revised to re-estimate the potential for energy savings in cultural facilities based on buildings meeting the now legislated A0 performance standards, which will require these buildings to have an energy intensity lower than 61 kWh/m2/year. Figure 19: Potential for Energy Savings in Cultural Facilities in PSK 8,000 7,000 6,000 5,000 MWh 4,000 Power Heating 3,000 2,000 1,000 - Old New Source: PSK, 2018. 5.3.4. Energy Savings Potential in Administrative Buildings The potential for energy savings in heating (thermal) systems is estimated by ENECO to be about 37% of present consumption based on thermal retrofitting of buildings (insulation of walls, roof, floor, etc.), replacement of old windows, and replacement of old heating systems. The measures are expected to improve building energy performance to meet A1 standards for administration buildings (<28 kWh/m2/year in heating systems) and will reduce the use of natural gas and lower purchase of heat from district heating companies. Savings in electricity use will principally be from more efficient lighting systems and is estimated to be result in a 41%% reduction in electricity use to meet A1 standards for such facilities (<15 kWh/m2/year). The combined potential for energy savings is estimated to be about 38% of energy consumption in 2013 (see Error! Not a valid bookmark self-reference.). The measures are expected to improve overall building energy performance to meet A1 standards for such facilities (62-122 kWh/m2/year). Significantly there is potential to further reduce energy intensity in the PSK administrative buildings despite the fact that both buildings have been renovated. The analysis is being revised to re-estimate the potential for energy savings in administrative facilities based on buildings meeting the now legislated A0 performance standards, which will require these buildings to have an energy intensity lower than 61 kWh/m2/year. 48 Figure 20: Potential for Energy Savings in Administrative Buildings in PSK 5,000 4,500 4,000 3,500 3,000 MWh 2,500 Power 2,000 Heating 1,500 1,000 500 - Old New Source: PSK, 2018. 49 6. Next Steps for Sub-Activity 2.1.2 Building on the diagnostics study presented in this report, the WB team will undertake a broad review of various financial schemes (grants, third party financing, credit lines, combination of resources, etc.), that could support implementation of EE in public buildings in PreÅ¡ov. Potential co-financing from PSK, local governments, and other relevant stakeholders will be an important part of the analysis. The outcome of this sub-activity will be a draft report on “Strategic Planning for Scaling-up EE in PSK Buildingsâ€?. A Workshop will be conducted for stakeholders to discuss and finalize the draft report. 50 Appendix 1: Legislation related to EE in buildings and building codes and standards for Slovakia Legislation Applicable to Buildings • Act no. 321/2014 Coll. on Energy Efficiency and Decree 179/2015 Coll. on Energy Audit • Act no. 555/2005 Coll. on the Energy Efficiency of Buildings and on Amendments to Certain Acts • Act no. 300/2012 Coll. on Energy Efficiency of Buildings and Act No. 50/1976 Coll. on the Territorial Planning and the Building Code (Building Act) • Decree of the Ministry of Regional Development and Public Works no. 364/2012 Coll., which implements Act no. 555/2005 Coll. on the Energy Efficiency of Buildings • Act no. 314/2004 Coll. on construction products Legislative Acts related to EE relevant to energy use in buildings • Act No. 476/2008 Coll. on Efficiency During Energy Utilization (Energy Efficiency Act), Act No. 555/2005 Coll. on Energy Efficiency of Buildings, and Act No. 17/2007 Coll. defines the obligations in the transformation, transmission, transport, distribution and final consumption of energy. The Act also defines the qualification scheme for energy auditors. • Act No. 17/2007 Coll. and Act No. 136/2010 Coll. address the regular inspection of boilers, heating systems and air conditioning systems, and energy efficiency of fuel utilization in these energy systems. • Act No. 529/2010 Coll. on Environmental Design and Use of Products (Ecodesign Act) promotes energy efficient products. The Ministry of Economy's website provides links to the European Commission regulations on energy-using products. • Act No. 182/2011 Coll. on Labelling of Energy-Using Products and amendments of certain acts define energy labeling for energy-using products. • Act No. 300/2012 Coll. amending Act No. 555/2005 Coll. on Energy Efficiency of Buildings and amendment of Act No. 50/1976 Coll. on Land Planning and Construction Regulations (Construction Act). • Act No. 314/2012 Coll. on Regular Inspections of Heating and Air Conditioning Systems and amendment of Act No. 455/1991 Coll. on Trade Licensing (Trade License Act). • Act No. 69/2013 Coll. amending Act No. 476/2008 Coll. on Efficiency During Energy Utilization (Energy Efficiency Act) and Act No. 555/2005 Coll. on Energy Efficiency of Buildings. • Decree No. 282/2012 Coll. stipulates the technical requirements for thermal insulation of heat and hot water distribution systems. • Decree No. 337/2012 Coll. stipulates EE in energy conversion during the operation, overhauling and construction of electricity generation and heat producing installations. • Decree No. 358/2013 Coll. stipulates the procedure and conditions for deployment and operation of intelligent metering systems in the electricity sector. Building Standards • STN EN 15217 Methods of expressing energy efficiency and energy certification of buildings • STN EN 15603 Total energy demand, primary energy and CO2 emissions from buildings • STN 73 0540: 2002 Thermal protection of buildings. Part 1: Terminology • STN 73 0540: 2012 Thermal protection of buildings. Part 2: Functional requirements, Part 3: Properties of the environment and construction products 51 • STN EN ISO 10456 Building materials and products. Methods of determination of declared and design values of thermo-technical quantities • STN EN ISO 6946 Construction structures. Thermal resistance and heat transfer coefficient. Calculation method • STN EN ISO 13370 Thermal properties of buildings. Heat dissipation with earth. Calculation methods- STN EN ISO 10077-1 Thermal performance of windows, doors and windows. Calculation of heat transfer coefficient. Part 1: Simplified method • STN EN ISO 10077-2 Thermal technical properties of windows, doors and windows. Calculation of heat transfer coefficient. Part 2: Numerical method for frames • STN EN ISO 10211 Thermal bridges in building buildings. Heat flows and surface temperatures. Detailed calculations (ISO 10211: 2007) • STN EN ISO 14683 Thermal bridges in building constructions. Linear loss coefficient. Simplified methods and benchmarks • STN EN ISO 13788 Thermal properties of building components and structures. Internal surface temperature to exclude critical surface moisture and condensation inside the structure. Calculation method • STN EN ISO 13789 Thermal performance of buildings. Heat loss. Calculation method • STN EN ISO 13790 Thermal-technical properties of buildings. Calculating the energy requirement for heating • STN EN ISO 13790 / NA Thermal performance of buildings. Calculating the energy requirement for heating Heating Standards for Buildings • STN EN 15316-2-1 Heating systems in buildings. Method of calculating system energy requirements and system efficiency. Part 2-1: Heat transfer systems to the heated space • STN EN 15316-2-3 Heating systems in buildings. Method of calculating system energy requirements and system efficiency. Part 2-3: Heat distribution systems • STN EN 15316-4-1 Heating systems in buildings. Method of calculating system energy requirements and system efficiency. Part 4-1: Space heating systems, combustion systems (boilers) • STN EN 15316-4-3 Heating systems in buildings. Method of calculating system energy requirements and system efficiency. Part 4-3: Heat production systems, thermal solar systems • STN EN 15232 Energy efficiency of buildings. The impact of complex automated control and management of buildings • STN EN 15265 Energy efficiency of buildings. Calculation of energy needs for heating and cooling. General evaluation criteria and procedures • STN EN 15603 Energy efficiency of buildings. Total energy need and definition of energy assessment 52 Appendix 2: Legislation for Public Procurement in Slovakia Acts and Decrees on public procurement • Act no.343/2015 Coll. on Public Procurement. This Act regulates the award of supply contracts, works contracts, service contracts, design contests, award of concessions for construction works, award of service concessions and administration in public procurement. • Decree No.132/2016 Coll. on the procedure for the certification of electronic auction systems • Decree No.156/2016 Coll. provides detailed rules for calculating the final mark for the purpose of establishing a reference price • Decree No. 152/2016 Coll. defines the content of notifications used in public procurement • Decree No. 118/2018 Coll. sets the financial limit for an over-limit order, the financial limit for the over-limit concession, and the financial limit for the design contest • Decree No. 157/2016 Coll. provides detailed rules on design contests in the field of architecture, land use planning and civil engineering, the content of the competition conditions and the activities of the jury • Act no. 438/2015 Coll. amending Act no. 99/1963 Coll. of the Civil Code • Act no. 315/2016 Coll. on the Register of Public Sector Partners • Act no. 112/2018 Coll. on Social Economy and Social Enterprises • 53 Appendix 3: Legislation on Fuel Purchase Legislation on Fuel Purchase • Act No. 251/2012 Coll. on Energy repealed the previous Act No. 656/2004 Coll. on Energy and replaced it with new legislation. The rights of electricity consumers and gas consumers have been strengthened significantly with emphasis on the protection of vulnerable consumers. The new Act stipulates the consumer’s ability to significantly simplify the process of changing electricity and gas suppliers. • Act No. 250/2012 Coll. on Regulation in Network Industries ensures a higher level of independence for the Regulatory Office and strengthened its powers in the area of defining regulated prices as well as audit activities in regulated entities. The Act significantly expanded the powers of the Regulatory Office in surveillance over the regulated entities. • Regulatory Office for Network Industries Decree No. 24/2013 Coll. stipulating the rules for the operation of the internal electricity market and rules for the operation of the internal gas market. • Decree No. 3/2013 Coll. the manner, scope and structure of providing the measured data on consumption at the collection point of the electricity consumer and their storage. • Decree No. 292/2012 Coll. determines the method of calculating the damage caused by unauthorized electricity consumption. • Decree No. 269/2012 Coll. establishes the principles of the conversion of m³ per kWh in the gas supply. • Act no. 609/2007 Coll. on excise duties on electricity, coal and natural gas. • Act no. 102/2014 Coll. on consumer protection in the sale of goods or the provision of services. • Act no. 250/2007 Coll. on consumer protection. • Act no. 40/1964 Coll. Civil Code. • Act No. 476/2008 Coll. on Efficiency During Energy Utilization (Energy Efficiency Act) and on amendment of Act No. 555/2005 Coll. on Energy Efficiency of Buildings and on amendment of certain acts as amended by Act No. 17/2007 Coll., defines the obligations in the transformation, transmission, transport, distribution and final consumption of energy, defines the qualification scheme for energy auditors and thereby makes energy audits accessible to industry, agriculture and other sectors of the economy. • Decree No. 74/2015 Coll. the provision and amount of the state contribution to the household gas customer. • 54 Appendix 4: Public Building Improvement Projects financed under the Operational Programme Quality Environment (OP QE) Under the OP QE, the following specific principles are applied under the present investment priority for reducing the energy intensity of public buildings. • support will be given to buildings which will be demonstrably used by the public sector for a long term with regard to the scheduled public administration reform at the national or local level, • support to measures aimed at energy saving will be designed beyond the framework of minimum requirements for energy performance of buildings pursuant to public statutes so as to decrease the energy demand to the level of low-energy buildings, ultra-low-energy buildings and nearly zero- energy buildings; • priority will be given to comprehensive projects with the highest primary energy sources savings pre m2 of the total floor area; • priority will be given to buildings with barrier-free entrances or those where barrier-free entrance is planned to be built; • construction of plants for use of RES in buildings will only be supported as a part of a comprehensive project for improvement of the energy efficiency of public buildings with an emphasis on minimization of negative impacts on environment protection, especially the air; • implementation of the project must not change the character of the use of buildings, while activities which are not related to improving the energy intensity of buildings (e.g. superstructure or annex to a building) will not be accepted either; • support will be given also to projects implemented through the use of energy services, if the provided energy audit justifies such implementation; • intensity of support determined based on energy savings will be specified based on the results of ex ante analysis within the national project. “Support for instruments for the introduction and optimization of measures in the field of energy efficiency and the preparation of an analysis of potential energy savings in public buildingsâ€?; • support will be contingent upon submitting an energy audit based on which the following will be verified in the process of evaluation: • calculations of planned annual volume of primary energy savings per m2 of the total floor area; • technical feasibility of the proposed energy measures. The output indicators and target value for 2023 under the OP QE are as shown below. Decreased annual consumption of primary energy 278,900,000 kWh/year in public buildings Decreased final energy consumption in public 172,000,000 kWh/year buildings Number of public buildings at the low- energy or 550 ultra- low-energy level or with nearly zero-energy Estimated annual decrease of GHG emissions 73,500 t equiv. CO2 55 Under the specific objective of reducing energy consumption in the operation of public buildings, three calls were announced under OP QE. As of January 2019: â–ª Call OPKZP-PO4-SC431-2015-6 was announced on December 7, 2015 and concluded on October 26, 2016. Under this call, 296 projects were approved with a total expenditure of €150,417,424.33. Of this amount, the EU is providing 85% of the resources (€ 127,854,810.68). A total of 289 projects were contracted, with a total expenditure of €129,986,028.37. â–ª Call OPKZP-PO4-SC431-2017-19 was issued on February 27, 2017 and closed on February 28, 2018. Under this call, 457 projects were approved with a total expenditure amounting to € 241,337,104.95. Of this amount, the EU is providing 85% of the resources (€205 136 539,21). A total of 352 projects were contracted with a total expenditure of €174,234,756.18. â–ª Call OPKZP-PO4-SC431-2018-48 was announced on December 21, 2018, it is open call (with several evaluation rounds; first one and will close on March 29, 2019, second one on June 28, 2019, and further rounds on the last working day of every third month). â–ª In total, the contracted investment for the renovation of buildings under construction is €304,220,784.55, with the EU contributing 85% of the funds (€ 258,587,666.86). 56