City of Koprivnica established the first local energy revolving fund in Croatia!
When it comes to energy efficiency and innovative financing solutions, city of Koprivnica is among the leading local and regional authorities in Croatia. Together with its strategic partner - Regional Energy Agency North (REA North) – it explored the opportunity to set up a local energy revolving fund that would finance its sustainable energy actions in the public sector.
Just before the 2015 Christmas break, the City Council has unanimously adopted the proposal for establishment of the energy revolving fund (the Fund) that will start its operation in January 2016. The initial size of the fund - seed money - is 20,000 EUR but the city already plans to attract external co-financing sources and additional funds to boost the fund in the second half of 2016.
The Fund will finance the implementation of energy efficiency projects that aim at greater reduction of energy use and significant financial savings resulting from lower energy bills and maintenance costs. The Fund is also expected to improve the way energy investments are planned, designed and implemented (e.g. preparation or procurement of energy related documentation), to speed up and simplify decision making about the investments and bring the financial benefits.
The basic operational scheme of the revolving fund is the following:
The city and REA North carried our several key actions that preceded the creation of the fund, including:
- Review of the city administrative organisation including roles and responsibilities assigned to different departments and to the regional energy agency. The objective was to identify those actors who could be responsible for the operation of the Fund. The city and the energy agency both have certain competencies and experiences that are needed for successful operation of the Fund. However, it was concluded that none of the sides can develop, implement and operate the Fund on its own.
- Drafting of a basic operational scheme and a business model of the Fund.
- Analysis of the actual energy consumption of the public buildings. Existing documents and data were obtained from external subjects on the one hand and from the information system for sustainable energy management (mandatory for all cities in Croatia) on the other hand.
- Development of an action plan that includes detailed analysis of seven buildings that have the biggest potential for energy savings. Analysis was focused on water, heating, cooling, ventilation and electricity. It contains a description of the current status of the building components and technologies, energy consumption, actions that need to be done and their financial characteristics.
The business model of the Fund describes the organisational, management and financing aspects of the Fund, its goals and expected benefits.
All key documents related to the Fund creation are publicly available in the table below.
|Koprivnica at a glance
||City of Koprivnica (Croatia) has about 30,000 inhabitants. The City committed to implement the intracting financing scheme and appointed the Regional Energy Agency North (REA North) to participate in the INFINITE SOLUTIONS project on its behalf. REA North has been involved in major projects in cooperation with cities (its founders and partners), and provides technical and operational support especially in the preparatory project phases. Agency actively cooperated with cities in various projects such as co-financing of solar and biomass heating systems, retrofitting of residential buildings etc.. Currently, the Agency is implementing the project of thermovision of 150 residential buildings in two cities. On constant baisis REA North cooperates with the City in implementaion of measures included in the Sustainable Energy Action Plan such as 1MW solar plant for the City and other measures focused on public lighting, buildings etc.. REA North is promoting but also consulting and helping the City to use co-financing sources such as national programs and funds in which they have great success. On top of it, diverse EU programmes, EPC and public private partnerships are models used by City to successfuly co-finance investments in the energy sector.|
|Who is implementing the intracting financing scheme in Koprivnica?
|How is the financing scheme implemented?
||Local Study & Action Plan|
|Who backs the scheme at the political level?
||City Council Decision on the establishment of the financing scheme from 21 December 2015|
|Pilot Sustainable Energy Measures to be implemented via the scheme
||To be confirmed in the first quarter of 2016|
More information about: