Promotion of Energy Efficiency

Project description

Title: Energy efficiency advice
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Lead executing agency: Ministry of Foreign Trade and Economic Relations (MoFTER)
Country: Bosnia and Herzegovina
Overall term: 2010 to 2019

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Context

Although Bosnia and Herzegovina (BiH) has significant energy resources and is one of the few electricity-exporting countries in the Balkans, its energy supply is not sustainable. Due to inefficient use, power consumption is increasing. Moreover, the use of wood and coal for fuel leads to air pollution and CO2 emissions.

The main driver to promote energy efficiency in BiH is still the obligations from the Energy Community Treaty (EnCT). Energy prices, in particular for electricity and district heating, are still low in comparison to other European countries and give no strong incentive to save energy. Even though, poorer households still have to pay a high share of their income for energy in the heating season. A number of public buildings have been renovated in the last years, but most of them still need refurbishment. Most of the existing buildings are in a poor state with high energy demands. Although the implementation of energy efficiency (EE) measures have started with promising results, the lack of funding remains the main bottleneck. 

The legal framework for EE has improved but is still not completed. Furthermore, a sustainable scaling-up strategy to disseminate EE development on the municipal level - in particular for smaller municipalities - is still not in place. Generally, in the whole country the enforcement of building requirements is weak due to a lack of awareness, knowledge and capacities in the responsible institutions. The contribution of private sector to promote EE services and products is still low and there is almost no participation of private sector associations as well as civil society and academia in the development of strategies and their implementation.

Objective

The project has increased the implementation of strategies and legal requirements for energy efficiency in the building sector.

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Approach

The lead executing agency for the project is the Ministry of Foreign Trade and Economic Relations of Bosnia and Herzegovina (MoFTER). Important implementing partners include ministries of energy and spatial planning of both entities, environmental funds of both entities, municipal associations, and municipal service providers. Together with its partner the project seeks to improve both the framework conditions for energy efficiency in Bosnia and Herzegovina and the fulfilment of obligations under the Energy Community Treaty, whichcreates an integrated energy market bringing together the 28 Member States of the European Union (EU) and 6 European states and territories in the Balkans.

Other components of assistance are focused on implementation of the legal framework for energy efficiency in buildings, development of energy efficiency information system and provision of energy efficiency services for municipalities. 

Activities concerning implementation of the legal framework for energy efficiency in buildings are mainly dealing with development of the missing legal framework necessary for the implementation of EE requirements in buildings within the building permit regime, development of instruments and procedures to meet EPBD requirements and adhering of these requirements in building applications of change projects, along with constant technical capacity development of both public and private actors.

In order for the Energy Efficiency Information System (EEIS) data to be used to make decisions in the strategic/planning segment, the project aims to improve the regulatory framework and to make room for investment programs which aim for savings of the energy consumption. Provision of networks for dialogue about the information system in both entities has already been established. In addition, establishment of instruments/modules for EEIS and related services, as well as capacity development for EEIS relevant actors on all government levels is being supported. Through consultancy services, ministries and municipalities are able to use relevant data collection, analysis, and planning tools in order to identify potential methods for increasing energy efficiency and subsequently plan and implement appropriate measures.

In order to monitor the delivered services and instruments by service providers in the energy efficiency and energy management field the project created a monitoring system for serviced delivered to municipalities and certified energy managers. Further adaptation of existing energy efficiency instruments and services for municipalities is provided. To ensure the existence of a controlled market system of services in the energy management field, assistance shall be provided in setting up of legal framework that will regulate the introduction and implementation of energy management. In addition, capacity development of the service providers is ensured contributing to dissemination of know-how and instruments. 

Proposals for legal documents supporting the implementation of energy efficiency are submitted to the respective line policy- makers thus contributing to the development of regulations on energy efficiency in the country. Furthermore, the project provides platforms, supports networks and initiatives of actors relevant to the energy sector including political decision-makers and energy experts. 

Subsequently, partnering institutions use newly created information, advisory or financing services of private or public services providers, which support them in the planning and implementation of energy efficiency measures. 

Finally, experiences are made available to other parties and are included in proposals for the creation of the economic, legal, and professional requirements for energy efficiency.

Results

Examples of achievements to date:

  • The legal framework for energy efficiency is being strengthened in both entities. For example, alternative energy supply system regulations and EEIS regulatory documents are being revised by relevant entity ministries as to proceed with regulation adoption procedures. Cantonal Ministries in FBaH are in process of creation harmonised amendments to the spatial planning and construction laws to ensure singular approach in compliance with EPBD requirements.
  • In order to strengthen and ensure on-the-ground compliance with legally prescribed energy requirements for new and buildings undergoing major reconstruction in RS, Ministry of Spatial Planning, started a dedicated programme providing assistance to municipalities and private sector actors.
  • Strategic approach to the prioritisation of EE measures based on the relevant data and the EEIS is used for the development of country’s strategic documents, Building Renovation Strategy, Energy Efficiency Action Plans and District Heating and Efficient Co-generation Potential Study.
  • Capacities of EEIS carriers - Entity Environmental and Energy Efficiency Funds, are being built for effective management of EEIS modules. By the end of 2017, training of users of EEIS has increased the capacities of more than 50 municipalities. 
  • Range of up to 10 different energy management services are offered by 5 public or private providers to more than 50 municipalities, improving thus the implementation of strategies and legal requirements in the energy sector.
  • Energy Management Regulation and Guidelines, in the final stage, shall regulate the energy management service market, with training and certification schemes.
  • Officially established, the Parliamentarian Green Club with members of representatives from all levels of government in Bosnia and Herzegovina, works on strengthening of public dialogue in the field of energy, energy efficiency, renewable energy sources, climate change and environmental protection.

Further information