nd National Energy Efficiency Action Plan (NEEAP) of Kosovomzhe-ks.net/repository/docs/Kosovo_2nd_NEEAP... · The KEEA, as the main institution responsible for development and implementation

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Republika e Kosovës

Republika Kosova-Republic of Kosovo

Qeveria -Vlada-Government

Ministria e Zhvillimit Ekonomik

Ministarstvo Ekonomskog Razvoja-Ministry of Economic Development

2nd National Energy Efficiency Action Plan (NEEAP) of Kosovo

June 2013

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TABLE OF CONTENTS

Abbreviations……… ............................................................................................................... 4

1. Overall context of the second NEEAP…………………………………………………………………………..5

1.1 Highlights of the Second NEEAP ................................................................................................................................. 6

1.2 National context of energy savings ............................................................................................................................ 8

2. Primary energy SAVINGS………………………………………………………………………………………….15

2.1 Overview of primary saving and targets …..……………………………………….……………………………………..16

2.1.1 List of Strategies …………………………………………………………………………………………………………..……17 2.1.2 Energy saving assumptions/targets ……………………………………………………………………………………21

2.2 Primary energy saving measures ............................................................................................................................ 22

2.2.1 Measures in the lignite sector ................................................................................................................................... 22

2.2.2 Measures in the electricity generation sector .................................................................................................... 23

2.2.3 Measures in the transmission sector ..................................................................................................................... 26

2.2.4 Measures in electricity distribution sector ......................................................................................................... 26

2.2.5 Measures in the heating sector ................................................................................................................................. 27

3. Energy savings achieved in the energy end-use sectors……………………………………………30

3.1 Calculation of energy savings achieved ......................................................................................................................... 30

3.2 Description of energy savings achieved .............................................................................................................. 32

3.3 Description of energy savings measures implementation .................................................................................... 35

3.4 Summary on energy savings planned and achieved ................................................................................................ 43

4. Energy efficiency measures of the second NEEAP in the energy end-use sectors ............... 44

4.1 Measures in the residential sector ................................................................................................................................... 44

4.2 Measures in transport sector ............................................................................................................................................. 50

4.3 Measures in the tertiary sector ................................................................................................................................ 55

4.4 Measures in the Industry and SME sectors................................................................................................................ 62

4.5 Measures in the building sector ........................................................................................................................................ 66

4.6 Horizontal measures .............................................................................................................................................................. 67

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4.7 Summary of overall final energy savings ...................................................................................................................... 72

4.8 Exemplary role of public sector ........................................................................................................................................ 72

4.9 Ensuring availability of advice and information ....................................................................................................... 81

4.10 Obligations of energy companies to promote energy savings in end-use consumption ...................... 82

4.11 Market for energy services ............................................................................................................................................... 82

4.12 Strategy for the increase of nearly-zero energy buildings ................................................................................. 83

4.13 Alternative measures for heating and air conditioning systems..................................................................... 84

4.14 Measures to support EPBD implementation ............................................................................................................ 85

5 Establishment of Competent Bodies and Assigned Organisations ..................................... 87

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ABBREVIATIONS:

KEEA Kosovo Energy Efficiency Agency

MED Ministry of Economic Development

MEM Ministry of Energy and Mining

KEPA Kosovo Environment Protection Agency

MESP Ministry of Environment and Special Planning

MF Ministry of Finance

TPP Thermo Power Plant

DH District Heating

KEK- J.S.C. Kosovo Energy Corporation, Joint Stock Company

HPP Hydro Power Plant

KOSTT Kosovo Transmission System and Market Operator

EnCS Energy Community Secretariat

ORF-EE/GIZ Open Regional Fund-Energy Efficiency / Geselschaft für Intenationale Zusammenarbeit

CCEAM Commission for Certification of Energy Auditors and Managers

AI Administrative Instruction

LPG Liquid Petroleum Gas

SME Small and Medium Enterprise

EU European Union

EC European Commission

EBRD European Bank for Reconstruction and Development

MTI Ministry of Trade and Industry

KBRA Kosovo Business Registration Agency

EPBD Energy Performance of Buildings Directive

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1 OVERALL CONTEXT OF THE SECOND NEEAP The Kosovo National Energy Efficiency Action Plan (NEEAP) is a basic document for the implementation of Kosovo’s policies on energy efficiency. Kosovo’s NEEAP (2010 – 2018) was approved by the Ministry of Economic Development on September 30

th, 2011. It foresees the indicative target of 9% of 1021.08 ktoe to be

achieved at the end of the period (2010 – 2018). Therefore, the amount of energy that Kosovo aims to save by the end of 2018 is 91.89 ktoe. The first Kosovo Energy Efficiency Action Plan (2010 – 2012) (hereinafter – 1

st NEEAP) was also approved by

the Ministry of Economic Development on September 30th

, 2011. The intermediate indicative target of 3% for energy savings has been adopted. The target quantity of 3% of the overall amount for the period (2010 – 2012) is 31.00 ktoe. Kosovo’s second National Energy Efficiency Action Plan (hereinafter – 2

nd NEEAP) has been prepared on the

basis of Article 10 of the Law on Energy Efficiency. The “Guide and template for the preparation of the second national energy efficiency action plan” developed by the European Commission’s Joint Research Centre has been taken into account preparing the 2

nd NEEAP, and adapted by the Energy Community Energy Efficiency

Task Force in October 2012. The Kosovo Energy Efficiency Agency (hereinafter – KEEA) was established in April 2012. According to the Article 6 of the Law on Energy Efficiency among other tasks KEEA is responsible for the following actions to be taken in relation to the National Energy Effiency Plan:

to propose the National Energy Efficiency Plan,

to prepare the Progress Report on the Implementation of the National Energy Efficiency Plan,

to develop the system for monitoring the implementation of the National Energy Efficiency Plan and achievement of the indicative targets for energy saving.

The KEEA, as the main institution responsible for development and implementation supervision of the NEEAP, lead the process of its development. In order to support KEEA, an inter-institutional working group was established by the Ministry of Economic Development (Decision Nr. 283, on February 14, 2013), consisting of representatives from the following institutions:

1. Ministry of Economic Development, 2. Prime Minister’s Office, 3. Ministry of Environmental and Spatial Planning, 4. Ministry of Finance, 5. Ministry of Infrastructure, 6. Ministry of Trade and Industry, 7. Ministry of Public Administration, 8. Ministry of Local Administration 9. Ministry of Security Forces of Kosovo, 10. University of Prishtina, 11. Association of Local Municipalities, 12. Energy Regulator’s Office – ERO, 13. Power Corporation of Kosovo – KEK, 14. Kosovo Operator for Transmission and Trade – KOSTT, 15. District Heating of Prishtina – TERMOKOS, 16. Kosovo Statistics Agency, 17. Kosovo Customs , 18. Institute for Development Policy – INDEP, 19. Kosovo Renewable Energy Association – KREA.

It is foreseen that this inter-institutional cooperation platform will continue its operations after the approval of the 2

nd NEEAP and will evaluate implementation progress of the 2

nd NEEAP (2013 – 2015) and the long-term

NEEAP (2010 – 2018) on regular basis, as well as taking measures for adjustments if needed.

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1.1 Highlights of the Second NEEAP

The 1

st NEEAP (2010-2012) mainly consisted of promotional and regulatory framework establishment

measures, and only some concrete investment project-based measures. The review process of the 1st

NEEAP implementation experience showed that the 1

st NEEAP had too many measures – almost 40 - and that most of

them were soft ones, like awareness raising campaigns, administrative instructions, etc. So many measures do not create a targeted and result-oriented policy. Nevertheless, measures implemented during the 1

st NEEAP

implementation period – like adoption of the Law on Energy Efficiency, establishment of the KEEA, development of energy auditing systems, etc. created a very good starting point for further activities. Therefore, in the development process of the 2

nd NEEAP, it was decided to put implementation of energy

efficiency measures with measurable energy savings at its centre. Soft-measures, like awareness raising campaigns, energy audits will continue to have a facilitating role. The Kosovo Energy Efficiency Agency was established in April, 2012. According to Article 6 of the Energy Efficiency Law, the KEEA’s responsibilities are to:

propose to the Minister policies to promote energy efficiency,

develop and maintain the database on energy efficiency,

develop the system of monitoring implementation of the National Energy Efficiency Action Plan and achievement of the indicative targets for energy saving,

propose to the Minister the National Energy Efficiency Action Plan,

prepare the Progress Report on the Implementation of the National Energy Efficiency Action Plan,

guide and support municipalities in the preparation of the municipal energy efficiency plans and their progress reports,

promote energy efficiency through public awareness campaigns,

provide recommendations on necessary improvements to national and municipal energy efficiency plans,

prepare its Annual Work Report for the Minister,

cooperate with the Ministry and other relevant institutions in implementing energy efficiency plans,

support the participation of interested parties in undertaking energy efficiency initiatives,

propose to the Ministry improvements in and completion of legal and regulatory frameworks on energy efficiency, with a view to approximation with relevant European standards on energy efficiency,

support municipal energy offices on matters related to energy efficiency planning and promotion, and implementation of various energy efficiency programs at municipal level,

promote information and educational activities in the field of energy efficiency, in cooperation with ministries responsible for energy, construction and education.

During the process of the 1

st NEEAP implementation review, a lack of statistical data on energy efficiency

(especially in the transport sector and the industry sector) was identified as one of the main barriers to the proper assessment and reporting of energy savings achieved. Therefore actions were taken to establish a system for collection of data by the KEEA on energy efficiency measures taken. The KEEA will become the core institution that will develop solid monitoring and evaluation systems for the assessment of results achieved and planning of the next steps to be taken. The 2

nd NEEAP will become the core document for planning of energy efficiency policy and its implementation

in Kosovo, which will attract IFI's financing and will mobilize national funding for implementation of the energy efficiency measures planned.

1st NEEAP 2nd NEEAP 3rd NEEAP TOTAL

mill. Euro ktoe % mill. Euro ktoe % mill. Euro ktoe % mill. Euro ktoe %

Residential 20.00 28.06 87.9 23.50 9.50 30.5 14.00 40.0 43.50 51.56 51.7

EBRD/EC R1 3.00 2.00 2.00

ProCredit R2 20.00 7.00 5.00 12.00

Multi-apartment R3 0.50 0.50 9.00 9.50

MED campaign R4 0.10 0.00

Measures 1st NEEAP¹ 28.06 28.06

Services 3.865 12.1 27 245 8.18 26.2 13.6 7.00 20.0 40.60 19.04 19.1

ktoe/build buildings ktoe/build buildings ktoe/build buildings

EC S1 15.6 0.033384615 65 2.17 15.6 0.033384615 65 2.17

WB/EC3 S2 3.9 0.033384615 150 5.01 13.6 0.033384615 70 2.34 17.5 0.033384615 220 7.34

KfW/EC S3 7.50 0.033384615 30 1.00 7.5 0.033384615 30 1.00

Municipalities S4

KEEA energy audits S5 550 EAs 550 EAs

Measures 1st NEEAP² 3.865 3.865

Industry 19.0 8.50 27.3 7.00 20.0 19.00 15.50 15.5

EBRD/EC I1 9.00 3.50

ProCredit I2 10.0 5.00

Transport 5.00 16.0 7.00 20.0 0.00 12.00 12.0

Campaign T1

Inspection T2

Pristina buses T3 5.5

Horizontal4 0.00 9.00

kWh/m2 m2/y kWh/m2 m2/y

EE Law H1

Green procurement H2

Building code H3 30 800000 6.00 30 1200000 9.00

20.00 31.925 100.0 69.50 31.18 100.0 13.60 35.00 100.0 103.10 99.775 100.0

Footnotes:

¹ Reported for R1, R10, R12 NB: Not all of the sub-totals add up, because some estimates have been included, as follows: 108.776

² Reported for S7,S13,S15,S16,S17) - Figures in red are estimates that have been included in the totals and sub-totals3 3 year program to include 200 - 250 buildings, est. cost US$22.5m. - Figures in brown are estimates that have not been included in the totals and sub-totals 91.89 Target 4 Cumulative totals

5 Excluding horizontal measures

6 Including horizontal measures

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1.2 National context of energy savings

Kosovo has approved the indicative target of 9% of 1021.08 ktoe to be achieved by the end of the period (2010 – 2018). Therefore, the calculated national indicative energy savings target for 2018 is 91.89 ktoe. The planned energy savings targets for 2018 are not being changed and will remain valid until 2016, when the 3

rd National

Energy Efficiency Action Plan will be developed.

Table2. Overview of the share of all sectors in final consumption (ktoe)

Economic sector 2010 2011 2012*

Industrial sector 254.89 315.64 290.68

Household sector 461.67 490.51 498.71

Services sector 113.39 119.57 115.19

Agricultural sector 18.44 19.95 20.51

Transport sector 318.91 338.58 336.47

Total 1167.31 1284.25 1261.56

Source: Energy Balance of Kosovo - 2010, 2011, 2012 (forecast)*, Ministry of Economic Development Table 2 shows that energy consumption for 2012 reached 1261.56 ktoe, which marks a decrease of 22.69 ktoe (-1.77 %) in comparison with 2011 (1284.25 ktoe) and an increase of 94,25 ktoe (8.07 %) in comparison with 2010 (1167.31 ktoe). The sectors, in order of their energy consumption in 2012, were as follows: the household sector, which consumed 498.71 ktoe ( 39.53 % of overall consumption), followed by the transport sector, 336.47 ktoe (26.67 %), the industry sector, 290.68 ktoe (23.04%), the service sector, 115.19 ktoe (9.13 %) and the agriculture sector, 20.51 ktoe (1.63 %).

Fig1. Overview of the share of all sectors in final consumption (ktoe)

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Fig 2. Energy end-use by sector for 2012

Taking into account that the household and transport sectors are the largest for energy end-use consumption - i.e. accounting for 39.53 % and 26.67 % respectively of total energy end-use consumption - these sectors have been designated as priority sectors for the 2

nd NEEAP.

The 2

nd NEEAP has been prepared taking into account the following policy planning documents:

Kosovo Economic Development Plan (2011 – 2014);

Action Plan of the Economic Vision of Kosovo (2011 – 2014);

Energy Strategy of the Republic of Kosovo (2009 – 2018);

Heating Strategy for Kosovo (2011– 2018);

Kosovo Energy Efficiency Action Plan (2010 – 2018); as well as other sectorial and inter-sectorial development documents, policies and strategies. The Kosovo Economic Development Plan (2011 – 2014) describes the economic development planning framework and proactive commitment of the Government to the economic growth and development of the country. With the implementation of this plan, the objective is to achieve a growth rate of 7-8% per annum in the medium term and a reduction in the level of the registered unemployed by approximately 8-10% per annum.

Table3. GDP annual growth data realized for the period 2007-2011

2007 2008 2009 2010 2011

GDP 6.3% 6.9% 2.9% 3.9% 5.0%

Source: Ministry of Finance.

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The forecast of macroeconomic indicators shows that the Kosovo economy is expected to reach an average

growth of 6.8% during 2011‐2014. The positive growth rate is expected to be driven by an expansionary fiscal

policy, while private investments and exports are expected to continue at a relatively stable growth rate

throughout the forecasting period. More precisely, higher economic growth is projected to be reached in 2013,

resulting from increased exports, investments and consumption, mainly as a result of raising public sector

wages, and its multiplicative effect on the economy of Kosovo.

Table4. Main macroeconomic indicators, 2008-2014 (millions of euro)

Description 2008 2009 2010 2011 2012 2013 2014

Consumption 4,345 4,280 4,760 5,074 5,336 5,545 5,819

Investment 1,094 1,166 1,213 1,433 1,620 1,704 1,756

Net export ‐1,587 ‐1,534 ‐1,684 ‐1,867 ‐1,979 ‐2,035 ‐2,075

Export of goods and services 612 820 875 933 995 1,049 1,049

Import of goods and services ‐2,156 ‐2,146 ‐2,504 ‐2,742 ‐2,912 ‐3,030 ‐3,124

GDP 3,905 3,912 4,289 4,639 4,978 5,214 5,501

Real GDP Growth, in % 6.9 2.9 4.0 5.3 5.1 5.4 6.0

GDP per capita in euro 1,847 1,848 1,996 2,127 2,249 2,321 2,412

Inflation, in % 9.2 ‐2.4 3.5 5.3 2.1 1.5 1.4

Source: Microeconomic Department, MoF

Issues related to energy sector development are regulated in the following legislative acts, administrative

instructions and regulations:

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Laws:

Law on Energy,

Law on Energy Efficiency,

Law on the Energy Regulator,

Law on Electricity,

Law on Natural Gas,

Law on Mines and Minerals,

Law on Spatial Planning,

Law on Construction,

Law on Public Procurement,

Law on Environment Protection,

Law on Trade of Petroleum and Petroleum Products,

Law on Scientific Research Activities,

Regulation on Long-term Allocations of Real Estate in Socially-Owned Property, managed by Kosovo municipalities,

Law on Foreign Investments,

Government Decision on restructuring of KEK j.s.c.,

Government Decision on unbundling of KEK j.s.c.,

Government Decision on the Establishment of an Electricity Distribution and Supply Company and its privatization through a public tender,

Law on Publicly-Owned Enterprises,

Government Decision on Central POE property policy,

Government Decision on the installation of efficient light bulbs in public buildings,

Law on Competition,

Law on Expropriation,

Law on Central Heating, and

Law on Public-Private Partnerships and Concessions.

Administrative Instructions:

Administrative Instruction for Promotion of energy efficiency for the final consumers and energy services,

Administrative Instruction for Labeling of energy using equipment,

Administrative Instruction for Energy Audit,

Administrative Instruction Rules on energy balance,

Administrative Instruction for Security of supply in natural gas sector, and

Administrative Instruction for opening of market for electric energy for all non-households costumers. Regulations:

Regulation Nr. 01/2012 for Establishing and functioning of a commission for certifying energy auditors and managers,

Regulation Nr. 08/2011 for Internal organization of the Agency for Energy Efficiency, and

Technical regulation Nr. 03/2009 on thermal energy saving and thermal protection in buildings. Energy intensity in Kosovo still remains at a relatively high level.

Table5. Energy Intensity 2009 – 2011

2009 2010 2011

Energy intensity

(toe/1000 €)

0.63 0.57 0.54

Source: Energy Balance of the Republic of Kosovo for 2009, 2010 and 2011

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The energy consumption forecast includes the development of the new Power Plant ‘Kosova e Re’, economic sector demands and energy efficiency measures. In calculating energy consumption forecasts, three basic factors are taken into account:

Economic growth,

Number of households,

Energy consumption in the three last years. Because of the influence of these measures on the demand of all sectors, as well of measures to rehabilitate the electro-energy system, the final energy consumption demand in 2020 is expected to be 1583.56 ktoe. Also, the energy sector is expected to have the same impact in terms of energy efficiency.

Table6. Overview of forecast final energy consumption (ktoe)

Source: Long Term Energy Balance of the Republic of Kosovo 2013-2022 The sector with the most intensive growth in energy demand will be the industry sector. In Kosovo, with all forecasts indicating more energy intensive development trends in industry, the industry sector share of total energy consumption, even in 2022, will be below the developing countries consumption rate of 29% of energy consumed. Kosovo is not actively participating in the implementation of the EU Framework Convention on Climate Change. However, taking into account the fact that in future Kosovo will have to meet the international obligations related to the implementation of this Convention, strategic directions and priorities in this field are set in the national legislative documents. Despite the fact that Kosovo is not a member state of UNO, actions are being taken to establish a legal framework and to build capacities in order to be able to participate in international efforts to combat climate change. From this perspective, Kosovo’s actions are in accordance with the United Nations Convention on Climate Change (UNFCCC) and the Kyoto Protocol.

2013 2014 2015 2016 2017 2018 2019 2020

Industrial sector 316.69 328.88 338.29 346.59 357.47 366.69 377.31 386.83

Household sector 503.93 525.84 541.7 555.6 574.25 589.63 607.57 623.32

Service sector 114.51 120.88 125.74 130.54 136.66 142.03 148.11 153.59

Agriculture sector 21.18 21.98 23.18 23.77 24.51 25.16 25.89 26.56

Transport sector 342.36 349.21 356.19 363.31 370.58 377.99 385.55 393.26

Total 1298.67 1346.79 1385.10 1419.81 1463.48 1501.50 1544.43 1583.56

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Table7. Sources of greenhouse gases according to sector for 2008 and 2009

GHG Sources

Unit ton/year

2008 2009

CO2 CH4 N2O CO2 CH4 N2O

Energy 6,221,976.11 5,388.79 252.56 7,040,831.31 5,578.54 269.94

Industry 11,054.45 1.32 0.18 11,474.52 1.37 0.18

Transport 1,073.30 0.15 0.07 1,110.44 0.15 0.07

TOTAL 6,234,103.86 5,390.26 252.81 7,053,416.27 5,580.06 270.19

Source: State of Air Report, year 2012, KEPA/MESP

EU Directive 2001/80/EC of 21 October 2001, determines the ceilings for power plant pollution. The Directive requires a reduction of pollutant emissions for existing plant (Kosovo A and B) and also determines ceilings for emissions from new plants (Kosova e Re).

Figure3. Forecast of dust, NOx and SO2 emissions from Kosovo power plants for the period 2013-2022

Figure4. Forecast of CO2 emissions from Kosovo power plants for the period 2013-2022

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Table8. Overview of forecast energy consumption in all sectors* (ktoe)

2013 2014 2015 2016 2017 2018 2019 2020

Industrial sector

356.20 376.20 389.37 398.19 398.87 399.93 410.89 420.75

Household sector

503.93 525.84 541.7 555.6 574.25 589.63 607.57 623.32

Service sector

114.51 120.88 125.74 130.54 136.66 142.03 148.11 153.59

Agriculture sector

21.18 21.98 23.18 23.77 24.51 25.16 25.89 26.56

Transport sector

342.36 349.21 356.19 363.31 370.58 377.99 385.55 393.26

Total 1338.19 1394.12 1436.18 1471.40 1504.87 1534.74 1578.01 1617.48

Source: Long Term Energy Balance of the Republic of Kosovo 2013-2022 * including non-energy consumption

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2 PRIMARY ENERGY SAVINGS In general, the 2

nd NEEAP has been drafted to assess energy savings in meeting targets outlined in Directive

2006/32/EC, for end-customers and energy services, while the EC format and instructions recommend an assessment of energy savings also in transformation and transmission (energy efficiency measures on primary energy savings in the energy sector – in generation, transmission and distribution).

Realized consumption of primary energy in Kosovo in 2010 and 2011 was 2437.51 ktoe and 2505.03 ktoe

respectively. Calculations for 2012 have yet to be completed taking into account available data. Final energy

consumption is considerably lower, due to the proportionately high use of lignite as primary energy. For

instance in 2011 lignite accounted for 64.81% and oil by-products and biomass for 23.61% and 9.66%

respectively.

The energy balance for Kosovo in 2011 indicates that non-energy needs reached 50.41 ktoe, while the final

energy consumption totalled 1284.25 ktoe and additionally, the transformation sector with energy losses and

internal energy consumption of the sector).

Table9. Primary and final energy consumption and relevant differences

Year Primary consumption in ktoe Target of final energy

consumption in ktoe

Final consumption in

ktoe

Difference

2010 2437.51 1191.3 1167.31 1270.20

2011 2505.03 1254.2 1284.25 1220.78

For the reporting period 2010-2011 there were no forecasts for the primary energy production therefore no

targets are reported.

Figure5. Graphical presentation of primary and final energy consumption in 2010 and 2011

In the transformation sector, energy efficiency is low as power plants use lignite as fuel and because of the low

coefficient of use of TPP Kosovo A (around 26.86%) and TPP Kosovo B (around 34.48%), and the use of oil by-

products as primary energy for meeting the needs of Kosovo. This coefficient of use is expected to increase

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considerably with the implementation of TPP Kosova e RE (projected for a later period) and co-generation in

TPP Kosovo B, in 2013 (see details in the chapters on efficient measures in generation and heating with DH

Termokos).

2.1 Overview of primary saving and targets

Table10. Forecast primary energy consumption (ktoe)

2013 2014 2015 2016 2017 2018 2019 2020

Coal for energy purposes

100.40 103.71 107.12 110.65 114.30 118.07 121.97 126.00

Coal for non-energy purposes

0.52 0.53 0.54 0.55 0.56 0.57 0.59 0.60

Petroleum products for energy purposes

530.71 540.04 549.72 557.20 561.03 564.65 567.98 571.07

Petroleum products for non-energy purposes

38.99 46.79 50.53 51.04 40.83 32.67 32.99 33.32

Biomass 246.39 251.37 256.45 261.64 266.94 272.52 278.22 284.05

Electricity 411.97 438.86 455.46 467.67 488.65 503.27 522.45 537.24

Bio-fuels 0.32 1.67 3.44 7.08 14.60 22.56 31.04 40.00

Geothermal energy

0.01 0.06 0.26 0.52 0.77 1.03 1.29

Derived heat 7.59 9.21 9.63 10.14 10.34 10.63 10.78 11.01

Solar energy 1.29 1.93 3.22 5.16 7.09 9.03 10.96 12.90

Total 1338.19 1394.12 1436.18 1471.40 1504.87 1534.74 1578.01 1617.48

Source: Long Term Energy Balance of the Republic of Kosovo 2013-2022

In analysing long-term demand forecasts for energy, the Kosovo Energy Efficiency Plan (2010 – 2018) has been taken as the baseline, with the general target for 2018 based on the assumption that every year there will be 1% of energy savings at the end-consumption level. According to the development of long term trends, electricity consumption will increase almost as quickly as petroleum consumption. In addition to any individual and private initiatives for installing such equipment, several energy efficiency and renewable energy projects have been planned. According to the Decision of the Ministerial Council of Energy Community Secretariat (derived from the meeting held on 18

th October 2012 in Budva, Montenegro), Kosovo is bound to generate 25% of gross final

energy consumption from renewable energy sources, including solar energy, both for heating and electricity. Table 11 below summarizes forecast consumption of all energy products used for energy purposes only, for the years 2013, 2015 and 2020.

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Table 11. Overview of consumption forecast for all energy products (ktoe and %)

Source: Long Term Energy Balance of the Republic of Kosovo 2013-2022

2.1.1 List of Strategies Following documents are the list of strategies that addressing the objectives for the reduction of primary energy consumption in the Republic of Kosovo:

Energy Strategy of Kosovo 2009-2018

Heating Strategy 2011-2018

Long-term Energy Balance of the Republic of Kosovo 2013-2022

Transmission Development Plan 2012 - 2021

Distribution Development Plan 2010-2014

District Heating Development Plan – Termokos

Action Plan of Economic Vision of Kosovo 2011-2014

2013 2015 2020

ktoe % ktoe % ktoe %

Coal 100.40 7.73 107.12 7.73 126.00 7.96

Petroleum products 530.71 40.86 549.72 39.69 571.07 36.06

Biomass 246.39 18.97 256.45 18.51 284.05 17.94

Electricity 411.97 31.72 455.46 32.88 537.24 33.94

Bio-fuels 0.32 0.03 3.44 0.25 40.00 2.5

Geothermal energy 0.00 0.00 0.06 0.0043 1.29 0.08

Derived heat 7.59 0.58 9.63 0.7 11.01 0.7

Solar energy 1.29 0.1 3.22 0.23 12.90 0.8

Total 1298.68 100 1385.11 100 1583.56 100

Table12. Overview of the strategic objectives for primary energy savings

Title of the strategy Objectives Targeted sector Legal status and other respective documents

Technical indicators & other

Energy strategy of Kosovo

2009-2018

Rehabilitation of lignite sector –

repairing of lignite excavators

Lignite production

Existing energy strategy under

review according to the Energy

Law

TPP “New Kosovo”, 2x 300 MW. Electricity generation, New electricity generation capacities “New Kosovo” based on BAT (best Available Technology)

Extension of transmition substation Kosovo Operator for

Transmission and trade(KOSTT)

Transmission Development Plan

2012 - 2021

Privatisation of Kosovo Electricity Distribution Sector (KEDS)

Distribution Development Plan

2010-2014

Distribution Development Plan

2010-2014

Already privatised sector

Heating Strategy 2011-2018

Connection of City Heating in

Prishtina (existing network) with TC

"Kosovo B" (co-generation system)

Extending operational life

of “Kosovo B” power plant

District heating of Prishtina city

– capital of Kosovo

District Heating Development

Plan – Termokos

More efficient energy system

and favorable tariffs for district

heating customers in Prishtina.

Guarantee continuity of

heating for Prishtina

citizens.

Long-term Energy Balance of the Republic of Kosovo 2013-2022

Energy forecast of Kosovo 2013 - 2022

Energy sector Kosovo Statistic Agency

Other line ministerial documents of Kosovo

Action Plan of Economic

Vision of Kosovo 2011-2014

General description of main

objectives for economic sustainable

development of Kosovo

Economy in general and energy sector in particular

Supplementing legislation to

enable implementation of the

“New Kosovo” project

- Transaction process for TC New

Kosovo

- Asset Transfer to the Private

Investor

- Construction of the 400kV Increase in transmission

transmission line in the territory of

Kosovo

capacity for exchange of energy

and increasing the security of

the electrical energy supply

Construction of capacities for RES

- Promotion of capacities for power

generation small hydro plants

Increasing security of electrical

energy supply and approaching

towards 20% target (of the

consumed energy to be from

renewable sources)

- Review Analysis for the

profitability of the initiation of

hydropower project in Zhur

Clarifying the profitability of the

project and opening of the way

for a concrete action plan.

Review of the possibility to build

energy sources - solar plants





renewable sources)

Review of the potential for

construction of energy - wind

power

plants





renewable sources)

Review of the possibility to build

plants from biomass

-Time frame 2012-2014





renewable sources)

Decommissioning of "Kosova A ",

respectively its closure

EC – Supported the study.

Donations are expected from

international institutions

20

The Energy Strategy of Republic of Kosovo 2009-2018 identifies the most important challenges faced by the

energy sector, guides the development of the most suitable policies for transforming it, as soon as possible,

into a vital, sustainable and financially viable sector in Kosovo, which provides quality energy services that are

economically favourable for consumers in Kosovo. Also, it identifies the key policies and measures to be

undertaken for advancing sector reforms, thus attracting private investments, providing for environmental

protection and a complete and prompt integration of Kosovo’s energy systems into regional and European

ones.

This Strategy pays special attention to compliance with European Union Acquis, since its provisions are

compulsory for Kosovo, which is a responsibility undertaken through its membership in the Energy

Community. The Strategy aims to stimulate rational use of energy and increased energy efficiency as well as

utilization of renewable energy resources and introduction of new technologies for implementing the

environmental standards as set forth by law.

The strategic objectives, policies and measures identified in this Strategy for each energy subsector constitute

the basis for developing the Kosovo Energy Strategy Implementation Program 2009-2011. This Plan will have

to be improved according to the new reviewed energy strategy in the process of development.

The Strategy covers a 10-year period. Its goals and anticipated measures represent a clear vision for certain

key aspects of great interest for the development of the energy sector during the 2009-2018 decade. The

Strategy is divided in two parts.

The strategy contains the energy demand forecast and its coverage for the 2009-2018 period, both aggregated

and divided by economic sectors; Strategy’s mission and vision; strategic objectives; policies and priority

measures for realization of the strategic objectives; European integration and international cooperation

perspective; the need and measures to increase local institutional capacities; and measures foreseen to

implement Strategy.

A special focus in this Strategy is given to achievement of the security of qualitative electricity supply as soon

as possible. Towards this, particular attention is given to development of new electricity generation capacities

and rehabilitation of TPP Kosova B, both to be funded through private sector investments. The same is

foreseen also for the future sufficient and sustained supply of lignite for these generation capacities.

Improvement of billing and collection levels for electricity consumed represents a significant challenge for KEK

j.s.c and the government institutions. Accomplishment of the set objectives will constitute a good basis for

enhancing confidence among investors in the energy sector thereby decreasing perceived risks.

Fulfilment of obligations deriving from the Energy Community Treaty and European integration process

represents another important dimension of this Strategy. In this aspect, a number of measures need envisaged

to be undertaken in the future for the completion of energy sector restructuring and reform in line with the EC

directives and other applicable legislation, in order that this sector becomes not only financially self-

sustainable but also able to attract private investments and contribute significantly to faster and sustainable

economic and social development of the country.

Application of the EU approach regarding energy, environment and competition represents the focus of this

Strategy. This will facilitate integration of Kosovo’s energy system with European systems. Special attention is

paid to protecting the environment from pollution caused by emissions from energy facilities.

Both improvement of energy efficiency and utilization of renewable energy resources are considered

important elements of this Strategy. This document provides clear policies and measures for both of these

important sectors.

21

This Strategy aims also to promote the preparation of a comprehensive legal and regulatory framework which

would attract private investments into the Kosovo energy sector. The objective is for Kosovo’s energy sector

regulatory framework to be clear and complete in order to enhance confidence among foreign investors.

Finally, it is important to emphasize that the vision of this Strategy is that through private investments Kosovo

will not only eliminate the burden that the energy sector places on the Budget of Kosovo, but also significantly

enhance the security and quality of energy supply.

The Revised Energy Strategy (RES) is supported by comprehensive analysis and reflection on the current

situation in the energy sector. RES identifies the most important challenges faced by the energy sector, and

establishes the guidelines for the development of more suitable sector policies that will support the

transformation of this vital sector for Kosovo into a sustainable and self-financed sector that provides

qualitative energy services under favourable conditions for consumers in Kosovo. It also identifies the main

policies and measures that need to be undertaken for the advancement of sector specific reforms that will

enable attraction of private investment and the earliest and most complete integration of Kosovo’s energy

systems into the regional and European ones.

The Energy Strategy of Kosovo aims at achieving effective management of existing energy resources and

protection of the environment. It focuses on enhancing the security of energy supply according to European

standards, as well as on the diversification of energy resources. This strategy aims also at stimulating rational

utilisation of energy, promoting energy efficiency, promoting development of renewable energy resources and

introduction of new technologies that do not cause irreparable damage to the environment, thus respecting

the application of internationally accepted environmental standards.

2.1.2 Energy saving assumptions/targets

Total long term energy savings targets until 2017/18 (TPP A/TPP B) for each sector measures

Total energy saving targets for lignite production:

1.770 (TPP A) + 0.540 (TPPB) = 2.31 GWh/year = 0.199 ktoe/year

Total energy saving targets for electricity generation: 146 + 264 + 3.2 + 6.96 + 25.6 + 37 + 104 + 155 = 741.76 GWh/year = 63.78 ktoe/year

Total targets for increase of electricity generation capacity:

25 + 25 + 20 = 70 MW

EE saving targets for electricity transmition system:

Reduction of losses by 0.06 % of total demand as a result of implementation of projects until 2016: 467.67 ktoe x 0.06% = 28.06 ktoe respectively 326.34 GWh.

EE saving targets for electricity distribution sector:

New reviewed middle and long term targets for distribution sector are not yet known because it is now a new privatised company (KEDS).

Particular energy efficiency measures and target projections are included in the tables below for each energy

sector during the period 2013-2015, and explanations until 2018.

22

The 2nd

NEEAP does not provide full details about energy efficiency measures in the energy transformation

and transmission sector, because Kosovo is only now, for the first time, confronting energy efficiency

planning and implementation issues for this sector in the proper manner. It is expected that realistic,

comprehensive and concrete EE measures will be enforced and developed only in the 3rd

NEEAP.

2.2 Primary energy saving measures

2.2.1 Measures in the lignite sector

Electricity generation in Kosovo is secured from two lignite-fired thermal power plants, Kosovo A and Kosovo

B, with a total effective capacity of up to 950 MW (installed capacity 1478 MW), while lignite generation is

secured from “South-West Siboc” (SWS) and Sitnica lignite mines. Lignite is the most vital energy resource of

Kosovo, supplying around 97% of the total electricity generation. Maximum coal generation in South West

Siboc is 9.0 ml.t./year. To reach this level of generation, the main mining equipment must be overhauled in

line with the supplementary mining plan, which envisages the purchase of two coal excavators. According to

the exploitation forecasts for SWS it is safe to assume that the condition of the existing coal excavators cannot

guarantee sustainable generation for the period 2013-2024.

Table13. Measures in lignite production

Nr.

Measure Target of the use of

primary energy/sector

Timeline Achieved

energy savings

in 2015/other

indicators

Estimated primary energy

savings in TPP A-2016 and

TPP B - 2018 and other

indicators

1. Repair of lignite

excavator E- 8B

Increase of capacity

usage and duration

2013 Reduction of own

electricity

consumption from

5.97 kwh/m3 to 5.1

kwh/m3

and

reduction in

excavator

downtime

Increase of effective capacity

from 500m³ /h to 650m³/h

Consumption before

implementation of measure:

13.310 GWh/year

Consumption after


11.540 GWh/year

Saving: 1.770 GWh/year

2 Repair of excavator

E- 9B

Increase of capacity

usage and duration

2014 Reduction of own

electricity

consumption from

5.97 kwh/m3 to 5.1

kwh/m3 and

reduction in

excavator

downtime

Increase of effective capacity

from 500m³/h up to 650m³/h

Consumption before


3.700 GWh/year

Consumption after


3.160 GWh/year

Saving: 0.540 GWh/year

23

2.2.2 Measures in the electricity generation sector

Lignite mining, generation and electricity distribution assets are operated by KEK j.s.c., a publicly owned enterprise. Electricity supply is mainly from generation from power plants ‘Kosova A’ and ‘Kosova B’ and on a smaller scale from hydropower plants (Ujmani, Lumbardhi, Radaci, Dikanci and Burimi). Gross electricity generation in existing TPPs in 2011 was 5697 GWh

1 and electricity generated from hydropower plants in 2011

was 105 GWh2.

Despite a continuous increase in the operational capacities of generation units in the recent years, their performance remains below installed parameters.

Technical data based on rehabilitation measures of the electricity generation sector (TPPs and HPPs in Kosovo).

Table14. Existing thermal generation capacities in Kosovo

No.

Generation units

Year of

commissioning

Installed capacity Current power

Generator Threshold -

net Generator Threshold-

net

MW MW MW MW

1 TPP-A1 1962 65 58 Not in operation-end of lifetime

2 TPP-A2 1964 125 110 Not in operation-end of lifetime

3 TPP-A3 1970 200 175 135-165 118-145

4 TPP-A4 1971 200 175 135-166 118-146

5 TPP-A5 1975 210 180 135-165 118-148

6 TPP-B1 1983 339 310 290-310 265-285

7 TPP-B2 194 339 310 290-311 265-286

8 HPP- Radavci G1 1934/2010 0.475/0.5 0.45 0.5 0.45

9 HPP- Radavci G2 1934/2010 0.475/0.5 0.45 0.5 0.45

10 HPP-Istogu G1 1948/2011 0.422/0.475 0.427 0.475 0.427

11 HPP-Istogu G2 1948/2011 0.422/0.475 1.427 0.475 0.427

12 HPP- Lumbardhi G1 1957/2006 5.05 4.04 5.05 4.04

13 HPP- Lumbardhi G2 1957/2007 5.05 4.04 5.05 4.04

14 HPP- Dikanci 1967/2010 0.95/0.55 0.5 0.55 0.5

15 HPP- Dikanci 1967/2010 0.95/0.55 0.5 0.55 0.5

16 HPP-Dikanci March/2013 2.76 2.70 2.74 2.70

17 HPP- Ujmani G1 1981 19.5 17.5 17.5 16

18 HPP- Ujmani G2 1981 19.5 17.5 17.5 16

The most significant plant outside KEK j.s.c. is the hydropower plant Ujmani/Gazivoda (2 X 17.5 MW = 35 MW),

administered by the Publicly Owned Company Hidrosistemi Ibër - Lepenc.

1Source: Annual energy balance (realized) of the Republic of Kosovo, 2011

2Source: Annual energy balance (realized) of the Republic of Kosovo, 2011

24

Table15. Measures in electricity generation

Nr.

Measure Target of the use of primary energy/sector

Timeline Achieved energy savings in 2015/other indicators

Estimated primary energy savings in TPP A-2016 and TPP B - 2018 and other indicators

1. 1. Repair and modernization of mills in TPP B 2. Improvement of coal quality from the mines for TPP A & B 3. Maintaining heating surfaces clear of ash layers in boiler pipes of TPP A & B

Reduction of specific coal consumption in:

TPP A from 1.9 to 1.75 ton/ MWh

and

TPP B from 1.5 to 1.4 ton/MWh

TPP A&B 2013-2014

TPP A = 0.15 ton/ MWh

TPP B = 0.1 ton/MWh

Lignite savings forecast:

TPP A –255.000 ton/year

TPP B – 370.000 ton/year

EE savings forecast:

TPP A – 146 GWh/year

TPP B – 264 GWh/year

2. Reduction of oil costs due to reduction of planned downtimes to the minimum, increasing the technical availability of TPP A to the highest level

Reduction of specific oil consumption in TPP A from 2.8 to 2.2 lit/MWh

2013 - 2014

0,6 lit/MWh 1.020.000 lit/year = 876 ton/year

Specific oil consumption 0.32 lit/kWh = 0.272 ton/MWh

867/0.272x1000

Savings =3.2 GWh/year

3. Reduction of heavy fuel oil costs due to reduction of planned downtimes to the minimum, increasing the technical availability of TPP B to the highest level

Reduction of specific crude oil consumption in TPP B from 2.5 to 2.0 kg/MWh

2013 - 2014

0.5 kg/MWh 1850000 kg/year =1850 ton/year Specific heavy fuel oil consumption 0.2657 ton/MWh

1850/0.2657 x 1000

Savings = 6.96 GWh/year

4. Rehabilitation of equipment (mills, coal feeders, air heaters, grill and kratzer, soot ventilators, supply pumps, ventilation fittings, drainage, supply, boiler interlocking, etc.) to a technically acceptable level, reinforcing prevention and planned repairs in TPP A

Reduction of TPP A own electricity consumption from 12 to 10.5 %

2013-2014

1.5 % Savings: 25.6 GWh/year

25

5. Rehabilitation of equipment (mills, coal feeders, air heaters, grill and kratzer, soot ventilators, supply pumps, ventilation fittings, drainage, supply, boiler interlocking, etc.) to a technically acceptable level, reinforcing prevention and planned repairs in TPP B

Reduction of TPP B own electricity consumption from 9.5 to 8.5 %

2013-2014

1 % Savings: 37 GWh/year

6. Reduction of unplanned outages in the unit to the minimum by increasing the technical availability as high as possible in TPP A&B

Reduction of unplanned downtime of units in TPP A&B by 30 %

2013-2014

Planned annual downtime per unit:

TPP A – 15 outages/year

TPP B – 20 outages/year

Reduction by 30%:

TPP A – 10 outages/year

TPP B – 14 outages/year

Savings: TPP A – 104 GWh/year TPP B – 155 GWh/year

7. Capital overhaul of A4 Unit -2013

Capital overhaul of Turbine and Generator, SM

Repair of boiler

Implementation 2013

Prior to overhaul: Unit power 130 MW

After overhaul: Unit power 155 MW Increase in capacity of 25 MW

8. Capital overhaul of A5 Unit-2014

Capital overhaul of turbine and generator, SM Partial repair of the boiler

Implementation 2014

Prior to overhaul: Unit power 130 MW

After overhaul: Unit power 155 MW

Increase in capacity of 25 MW

9. Revitalization of units TPP B1 & B2 2016-2017

1. Longer lifetime of unit 2. Higher unit usage

rate 3. Higher availability of

unit 4. Lower specific costs

of coal, water Demi and Deka, chemicals and own consumption

5. Elimination of bottlenecks

Revitalization

TPP B2-2016 TPP B1 - 2017

Pre-revitalization: 1. Lifetime of units: TPP B1 until 2023, TPP B2 until 2024 2. Unit capacity 310 MW 3. Specific use of steam 3.05 ton/MWh 4. Coal specific consumption 1.40 ton/kg 5. Own electricity consumption 9.5%

After revitalization: 1. Lifetime after revitalization:

TPP B1 until 2031, TPP B2 until 2032

2.Unit capacity: 339-345 MW

3. Steam 2.8 ton/MWh 4. Coal 1.35 ton/MWh 5. Own electricity consumption 8 %

26

2.2.3 Measures in the transmission sector

The electricity system in Kosovo (ESK) is interconnected through its cross-border lines with neighbouring countries (Serbia, Macedonia, Montenegro and Albania) through high voltage 400kV, 220kV transmission lines and three 110kV lines. Kosovo’s energy system is characterized by a strong 400 kV interconnection network, which is strongly interconnected in the regional network. A key on-going activity is the construction of the 400 kV line with Albania which, in the mid-term and long-term, will facilitate electricity exchanges and will allow an optimization of two complementary systems – thermal in Kosovo and hydro in Albania. The 400 kV line also has great importance for electricity exchanges in the region.

KOSTT – Kosovo Transmission System and Market Operator, operates at five voltage levels – 400 kV, 220 kV, 110 kV, 35kV and 10(20)kV, with a total length of transmission system lines (400 kV, 220 kV and 110 kV) of 1,211 km.

Table16. Measures to enhance the electricity transmission system

Nr.

Measure Timeline Estimated savings of primary energy and other indicators

1. Second transformer 40MVA in SS Skenderaj

Q2-2014

Reduction of losses by 0.06 % of total demand as a result of implementation of projects until 2016:

467.67 ktoe x 0.06% = 28.06 ktoe respectively 326.34 GWh

Enhancement of security and reliability of supply in Skenderaj. Optimization of substation maintenance process. Creation of transformation reserves.

2. AT2-300 MVA in SS PEJA3 and SS FERIZAJ 2

Q4-2015 Increase of transformation capacities and fulfilment of N-1 security criterion

3. New 110 kV line SS Peja 3- SS Peja 1 and revitalization of SS Peja 1

Q4-2015

Construction of the line allows the fulfilment of N-1 criterion. In addition, revitalization of SS Peja 1 has an effect in enhancing security and reliability of system operation.

4. Revitalization of 110 kV line: L126/2 SS Peja 2- SS Deçan

Q4- 2015

Increase of transmission capacity of the line from 83 MVA to 114 MVA with the aim of reducing power losses, improving the N-1 security criterion for the substation ring 110 kV Peja3-Peja1-Peja2-Deçan –Gjakova1.

2.2.4 Measures in electricity distribution sector

Further upgrading and new investment are needed in the distribution network to reduce losses, while

demand-side investments in energy efficiency should be undertaken to help curve demand. Targeted

investments will improve reliability of the distribution system and help reduce technical losses. Rehabilitation

of several substations is necessary to decrease technical losses and improve service standards and reliability.

27

The most urgent investments in the distribution network concern metering assets at the sub-station level and

secure metering at the end-user level.

The Government recognizes that successful privatization on this scale needs to be well prepared in order to

maximize the benefits for Kosovo. It is well aware of the fact that the speed of the process depends critically

on its own decision-making regarding strategic sector options, on its institutional capacity and on prevailing

market conditions. After privatization of KEK Distribution, the private investor should increase the number of

supply points, as well as reinforce 110/35 kV and 35/10 kV substations along with interconnection lines. In

addition, the investor should enhance the network configuration, distribution lines and transformation

stations.

Anticipated measures and actions related to the distribution network during the period 2009-2018 are:

Realization of necessary rehabilitations, strengthening and modernization of the network so as to eliminate congestion, reduce technical losses and improve security of electricity supply for end-use consumers;

Construction of required substations at all levels;

Definition of new substations required in the future and for shifting to different voltage levels; and

Creation of conditions for connection of renewable power generation capacity to the distribution system.

In general, both lines and transformer stations are overloaded during the winter, resulting in high technical losses which in 2006 were 17.93%, in 2007 17.19%, in 2008 around 17%, in 2009 around 18%, in 2010 around 17%, in 2011 around 17% and in 2012 around 16%.

The distribution network operates 625.55 km of the 35 kV network. The 10 (20) kV network has a length of

958.80 km, the 10 kV system a length of around 5915.40 km, the 6 kV network 49.65 km and the 0.4 kV

network has a length of 11,904.88 km.

This Division owns 6.200 transformer stations of 220 kV (from transformer) to 10(20)/ 0.4 kV.

Remark: As of 1st

of May 2013 Distribution Division of KEK has been passed to the Private owner as a result of

privatization.

2.2.5 Measures in the heating sector

District heating systems exist only in Prishtina, Gjakova and Mitrovica. These systems meet only 3% of heating

demand. Existing heating technologies are based on residual fuel oil and diesel. This sector also is challenged

by old technology, negative environmental impacts and a low level of billing and collection for the energy

supplied. The need to develop the heating market was recognised in the results of the Heating Market Study

(ELC, World Bank Study, 2007). Development of such a market will be incentivized by the Government. The

Law on Public Enterprises has placed these enterprises under municipal administration.

Also the district heating sector, especially the existing system in Prishtina (named Termokos), faces financial

difficulties and, to date, it has not proven to be self-sustainable without support from the Kosovo Budget.

Commercial losses are high, while the existing tariffs, although not very low, do not completely cover the costs

of supply.

A further challenge lies in the introduction of thermal energy consumption meters for individual households in apartment buildings.

The World Bank study on the heating market (2007) recommended the expansion of the DH market. The government is supporting the development of DH systems.

28

Existing DH plants tend to supply those city areas which have a high population density and which include public facilities, such as hospitals, schools and administrative buildings.

Table17. District Heating in Kosovo

Enterprise

(town)

Installed capacity

(MW)

Operation Capacity

(MW)

Length of distribution

network (km)

No. of substations

DH “Termokos” J.S.C 135.62 116 MW 70 312

DH Gjakova, J.S.C 38.6 15 MW 23.5 275

DH Termomit Mitrovica 16.9 6 MW 4.5 20

Plans for the implementation of the thermal energy cogeneration project at TPP Kosovo B to supply the district

heating system in Prishtina are a promising development in terms of improving the efficiency of supply of

thermal energy for space heating.

MEASURES IN THE HEATING SECTOR – DH “TERMOKOS” J.S.C. – Prishtina

Thermal energy (hot water) generation is delivered by two boilers, VKLM 58 MW, which use heavy fuel oil,

producing 11.3 MWh/Ton with a sulphur content of less than 1%.

As an alternative source for providing heating for hospitals in Prishtina, two boilers, each with a capacity of 7.5

MW and which run on light fuel oil, are often used.

Table18. Measures in DH TERMOKOS

Nr.

Measure Target of the use of

primary energy/sector Timeline

Energy savings in

2013-2015/ other

indicators

Estimated primary energy savings in 2018 and other

indicators

1

Cogeneration with TPP B- Prishtina DH Company “Termokos” 2013-2014

Thermal heating system for the city of Prishtina

Implementation:

2013 – 2014

Electricity (MWhe) which is reduced for the benefit of Thermal energy (MWhth):

TPP-B = 140 MWhth

Max poss. TPP (B1+B2) = 140 +140 MWhth = 280 MWhth

Reduction in electricity consumption by Prishtina city heating from 80 MWhe to 22-24 MWhe

Possibility of connecting cogeneration to New Kosovo TPPs after 2017

2

Reconstruction of 50 thermal substations in the Termokos distribution

Improvement of heating quality;

System balancing;

2014 Savings as a result of reducing hot water

Reconstruction of substations also includes the introduction of SCADA monitoring and

29

network Reduction in energy losses from 18% to 15 %.

production:

1.94 GWh

Savings in water 8447m³

control systems for the 50 substations at the central office in Termokos

3

Replacement of 11.6 km of pipes in the primary network

15% reduction in water losses compared to current average losses.

Reduction in energy losses from 18% to 15% due to improved pipeline insulation.

2014

4

Partial rehabilitation of Termokos :

Installation of energy delivered meters

Installation of new equipment to measure % O2 during the combustion process;

Accurate information on energy delivered from the district heating system.

Real assessment of energy losses in the distribution network, compared with energy received at substations.

Quality control of burning heavy fuel oil and environmental protection when boilers are operating.

2013-2014

0.412 GWh

These measures enhance efficiency of boilers, fuel savings, and environmental protection and minimize downtimes.

MEASURES IN THE DISTRICT HEATING - DH GJAKOVA J.S.C. Having found itself in financial difficulties as a result of high heavy fuel oil prices, high consumption of electricity and high operating costs, DH Gjakova is seeking alternative ways of generating electrical and thermal energy. The cogeneration system planned through this plant, in a ratio of electrical energy/thermal energy of 4.5 MWhe/25 MWhth, is currently in its initial phase, undergoing a feasibility study supported by WBIF (EU’s Western Balkans Investment Framework). There is an interest in supporting this project with grants and loans provided by KfW, with the participation of the Kosovo Government. Currently, there are two boilers in the District Heating Company, with a nominal capacity of 18 MW and 20 MWh. The first was installed in 1980 and the second in 1987. Both boilers are in urgent need of repair to their ignition, screens and water heaters. In 2010, all pipes included in the water heater package were replaced in the 20 MW boiler in order to use it as an operational boiler, while the second boiler is kept in reserve. The efficiency level of the two boilers is around 65 – 70%. Annual consumption of primary energy for heating in Gjakova in 2012 was 11 GWh, while final energy consumption of heating was 9 GWh.

30

3 ENERGY SAVINGS ACHIEVED IN THE ENERGY END-USE SECTORS

Kosovo has adopted a cautious approach to establishing an intermediate indicative energy savings target for its first National Energy Efficiency Action Plan (2010 – 2012), which amounts to 3% of the overall amount for the period (1021.08 ktoe) i.e. 31 ktoe. The national indicative target was allocated between the sectors of final energy demand, so that the effectiveness of the proposed measures could be monitored at a more disaggregated level. The sectorial allocation of the national target was based on the following:

the proportion of final energy consumption accounted for by the individual sectors,

the potential for efficiency improvements,

the economic efficiency concept of different energy efficiency measures for different sectors (so it is much better to promote the most effective measures) and

the necessary level of policy and legal interventions in the sectors. A summary of target levels within each sector is provided in the table below.

Table 19: Intermediate energy saving targets, by sector

Indicative Energy Saving Target: 31.00 ktoe

Period (2010-2012)

Sector % ktoe GWh

Residential 40 12.40 144.212

Services 30 9.30 108.159

Industry*

25.5 7.905 91.935

Transport 4.5 1.395 16.224

Total 100 31.00 360.53

Source: Kosovo NEEAP (2010 – 2012) * The Agriculture sector has been included within the Industry Sector The approved intermediate indicative target of 31 ktoe was allocated between the sectors of final energy demand, so that the effectiveness of the proposed measures could be monitored. In the first NEEAP 2010 – 2012, a total of 38 energy efficiency measures was foreseen, that included:

15 measures in the household sector,

18 measures in the services sector (public and private services),

2 measures in the industrial sector,

2 measures in the transport sector,

1 measure in the agriculture sector.

3.1 Calculation of energy savings achieved

The bottom-up (BU) method was used to calculate energy savings achieved in the 1

st NEEAP implementation

period. The methodology, which was recommended by the EnCS, is based on an analysis of changes to key energy efficiency indicators selected for the end-use sectors during the period from the selected reference year to the reporting year. The calculation methodology and MS Excel-based tables and calculations of all relevant Indicators were developed through the project “Capacity building for monitoring, verification and

31

evaluation (M&V&E System) of the energy efficiency policies in SEE countries, in terms of the EU accession process” (PN 08.2016.7-005.00) supported by ORF-EE/GIZ. The calculation Methodology developed with ORF-EE/GIZ support is formalized in Kosovo’s Legislation through AI no.14/2012. Article 4 of this AI refers to the calculation methodology which is added in annex IV as integral part of AI. Hence, for the purpose of the current report, the calculations of energy savings achieved by implementing of the First NEEAP are carried out based on AI no. 14/2012. Due to a lack of adequate statistical data and surveys, KEEA was not able to apply the top-down (TD) methodology for calculation of EE indicators. KEEA is working with relevant Institutions to ensure that adequate statistical data shall be collected for reporting the achievements made by the Second (2

nd) NEEAP.

At the end of 2012, the KEEA carried out a survey of municipalities and central government ministries to collect information on projects implemented in the public sector:

In municipalities (projects related to insulation refurbishment measures applied in building components for existing public buildings, changes in the quantity and type of light bulbs used, street lighting projects implemented).

In central government buildings (insulation refurbishment measures applied in building components for existing central government buildings, changes in the quantity and type of light bulbs used).

To assess the energy savings achieved by implementing the administrative instruction on labelling of household electrical appliances, data from the Customs Office of Kosovo on imported household appliances was used. Using the above mentioned data for a proper assessment of the energy savings achieved, bottom–up calculations were used for 8 energy efficiency measures that were implemented, out of a total of 38 that were included in the 1

st NEEAP.

Table 20: Overview of EE measures and indicators used for calculation of energy savings achieved

Sector Id Measure Indicator used

Residential R1 AI on labeling electrical household appliances Replacement of new household appliances (washing machines, refrigerators, dishwashers) in residential buildings

R 10 Promotion of EE in households Insulation refurbishment measures applied in building components in existing residential buildings

R 12 Public campaign on energy savings and improved EE

Replacement or new installation of lamps in residential buildings

Services S 7 EE promotion at municipal level Insulation refurbishment measures applied in building components in existing tertiary buildings

S 13 Public campaign on energy savings and improved EE through efficient lighting

Replacement or new installation of lamps in public buildings

S 15 Stimulation of use of solar systems and panels for sanitary water heating and public lighting

Solar water heating in tertiary buildings

S 16 Improved EE through efficient lighting in public buildings

Replacement or new installation of lighting systems in tertiary buildings

S 17 Efficient public street lighting Replacement or new installation of street lighting systems.

32

3.2 Description of energy savings achieved

Residential sector

The following bottom-up indicators were used as the basis for calculating energy savings:

Replacement or installation of new household appliances (washing machines, refrigerators, dishwashers) in residential buildings;

Insulation refurbishment measures applied in building components in existing residential buildings;

Replacement or new installation of lamps in residential buildings. AI on labelling household electric appliances (R1) Energy savings for the replacement of new household appliances (washing machines, refrigerators, dishwashers) in residential buildings have been calculated using the following formula:

]/[___ yearunitkWhAECAECUFES promotedmarketrefavstockyearref

Total savings: 53,47 GWh, or 4.60 ktoe Remarks:

Calculations are based on the reference values provided in the approved BU methodology and information concerning the number of imported appliances obtained from Kosovo Customs. It has been assumed that the residential sector accounts for 80% of washing machines and dishwashers, while the service sector accounts for the remaining 20%. For refrigerators, the equivalent figures are 70% (residential sector) and 30% (service sector)

Promotion of EE in households (R10) Energy savings from insulation refurbishment measures applied in building components in existing residential buildings have been calculated using the following formula:

yearcomp ins. of m

kWhc

baHDDUU

UFEScompnewcompini

comp 2

__

1000

124

(Uini_comp=1.4 W/m2K and Unew_comp=0.35 W/m

2K, HDD=2915 Kd/y)

Total savings: 172.7 GWh, or 14.86 ktoe Remarks:

After 1999 a large number of private houses and buildings in Kosovo were in a destroyed or damaged condition.

As a result of public awareness raising campaigns on the energy savings that can be achieved by applying EE measures, a considerable number of households improved the insulation of their houses during the reporting period.

Pro-Credit Bank and Raiffeisen Bank have provided substantial loans under the Eco-program launched in 2009.

KEEA has carried out a survey with manufacturers of insulation materials (Stiropor N4) and large building material markets in Kosovo who provided KEEA with data on the amounts of insulation materials produced respectively sold in the Kosovo market during the reporting period.

KEEA has assumed 30% of total insulation material sold was used for rehabilitation and upgrading of existing houses, while the remaining 70% was used for insulating newly constructed houses and buildings.

33

Based on expert estimations, KEEA came to the conclusion that up to 30 % of total investments for insulation of existing houses may be attributed to the impact of the current measure. Hence only 30 % of the total EE savings as results of insulation of existing houses is reported. Data provided by the Kosovo Agency of Statistics shows that the average living space per family in Kosovo is 78.47 m

2.

It is considered that the majority of refurbished houses belongs to the construction periods 1960-1998 and 1999-2001 defined in the BU-Methodology

U- reference values were calculated from BU-Methodology as weighted average for the construction periods 1960-1998 and 1999-2001

Public campaign on energy savings and improved EE (R12)

Energy savings resulting from the replacement of existing lamps or the installation of new lamps in buildings were calculated using the following formula:

]//[1000

___ yearunitkWhnFPP

UFEShrep

PROMOTEDMARKETBESTAVERAGESTOCK

For reporting purposes, 80% of the savings achieved by implementing this measure have been attributed to the residential sector.


Calculations are based on the approved BU methodology and information on the number of imported EE bulbs obtained from Kosovo Customs.

It was assumed that 75 % of total imported bulbs were used to replace bulbs in existing houses and buildings while 25 % were used in newly constructed buildings.

It was further assumed that 80% of the imported bulbs were used to replace existing bulbs in the residential sector and 20% in the service sector.

Service sector The bottom-up formulas for calculation of energy savings that result from implementation of the following energy efficiency measures were used:

Insulation refurbishment measures applied in building components in existing tertiary buildings,

Replacement or new installation of lamps in residential buildings,

Solar water heating in tertiary buildings,

Replacement or new installation of lighting systems in tertiary buildings,

Replacement of or new installation of street lighting systems. EE promotion at municipal level (S7) Energy savings from insulation refurbishment measures applied in building components in existing public buildings were calculated using the following formulas:

Doors and Windows

Refurbishment of doors and windows in the municipal buildings of 15 municipalities, using U-values stipulated in Table 12 of the BU methodology (Uini.= 5.1 W/m

2K, Unew= 2.8 W/m

2K and HDD=2915 Kd/y):

34

yearcomp ins. of m

kWhc

baHDDUU

UFEScompnewcompini

comp 2

__

1000

124

Insulation of walls

Refurbishment of walls in the municipal buildings of 15 municipalities, using U-values stipulated in Table 12 of the BU methodology (Uini.=1.03 W/m

2K, Unew=0.36 W/m

2K and HDD=2915 Kd/y):

yearcomp ins. of m

kWhc

baHDDUU

UFEScompnewcompini

comp 2

__

1000

124


Assumptions are based on the data received from 15 Municipalities throughout Kosovo which have implemented EE measures from their own budgets.

It is considered that the majority of refurbished public buildings belongs to the construction period 1960-1998, defined in the BU-Methodology

U-reference values were calculated from the BU-Methodology as weighted averages for public buildings and schools constructed in the period 1960-1998

Public campaign on energy savings and energy efficiency improvement (S13)

Energy savings from the replacement of existing or installation of new lamps in the Service Sector were calculated using the following formula:

]//[1000

___ yearunitkWhnFPP

UFEShrep

PROMOTEDMARKETBESTAVERAGESTOCK

For reporting purposes, 20% of the savings achieved by implementing these measures have been attributed to the services sector.

Total savings: 25 GWh/year, or 2.15 ktoe Remarks:

Calculations are based on the approved BU methodology and information on the number of imported EE bulbs obtained from Kosovo Customs.

It was assumed that 75 % of total imported bulbs were used to replace bulbs in existing houses and buildings while 25 % were used in newly constructed buildings.

It was further assumed that that 80% of the imported bulbs were used in the residential sector and 20% were used in the service sector.

Stimulation of use of solar systems and panels for sanitary water heating and public lighting (S15)

Energy savings resulting from the installation of solar water heating in tertiary buildings were calculated using the following formula:

systemsheatingaveragestock

USAVEUFES

___

35

Total savings: 0.99 GWh/year, or 0.085 ktoe

Improved EE through efficient lighting in public buildings (S16) Energy savings from replacement or new installation of lighting systems in tertiary buildings were calculated using the following formula:

]//[1000

__ yearunitkWhnPnP

UFES newhnewinihini

Total savings: 0.72 GWh/year, or 0.06 ktoe Remarks:

Assumption was based on data received from the Ministry of Public Administration and the Ministry of Foreign Affairs.

Efficient public street lighting (S17)

Energy savings resulting from the replacement of existing or installation of new street lighting systems were calculated using the following formula:

]//[1000

_,_, yearmkWhnPnP

UFES newshnewsinishinis

Total savings: 8.82 GWh/year, or 0.76 ktoe

3.3 Description of energy savings measures implementation

The 1

st NEEAP included 38 energy efficiency measures in total. Most of these measures were foreseen in the

residential and services sectors, the sectors which had the highest energy saving targets to be achieved. Table 21 presents an overview of the measures included in the 1

st NEEAP and an evaluation of their

implementation.

36

Table 21: Overview of EE measures and evaluation of their implementation

Residential sector

Id Name of energy saving

measure

Energy savings planned

to be achieved in 1

st NEEAP

(ktoe)

Energy savings reported

(ktoe)

Status of implementation

Comments

R 1 AI on labeling of household electric appliances

6.92

4.60

Implemented – AI on labeling adopted on June 27, 2012

Energy savings were calculated from replacement of washing machines, refrigerators, dishwashing machines.

R 2 AI on energy auditing

- -

Implemented – AI on energy auditing adopted on April 14, 2008 and revised on January 30, 2012

52 energy auditors were trained and certified.

R 3 AI on EE promotion for final consumers and energy services

-

-

Implemented – AI on Promotion of energy efficiency for final consumers and energy services adopted on 31

st of

October, 2012.

Insulation refurbishment measures applied in building components in existing residential buildings.

R 4 Enhancement of municipal capacities for managing projects and energy audits in municipalities

- -

Implemented – training took place in December 2010

60 officers in municipalities were trained on energy management. 30 officers in municipalities were trained on energy planning and compilation of municipal EE action plans

R 5 Initial training courses for energy auditors

-

-

Implemented – training took place in May 2010

52 Energy Auditors were trained

37

R6 Enhancement of the collection rate and improved EE (campaign by KEK J.S.C.)

- -

KEK and KOSTT reported that: - KEK launched public awareness campaign on a yearly basis to enhance collection rate KEK procured 97.600 multifunctional and simple digital meters. During the reporting period KEK has replaced 57.000 digital meters. Commercial losses decreased on yearly basis (24.02% in 2010, 21.37% in 2011 and 18.81% in 2012)

Implementation of the measure had a positive impact on introducing of EE light bulbs (R12 and S13) and implementation of AI on labeling household electric appliances (R1)

R 7 Promotion of LPG for heating and kitchen use 1.5

-

At the current price of LPG the planned target is not achievable.

R 8 Technical regulation on energy performance of buildings.

-

-

Implemented – Technical regulation adopted on May 25th, 2009.

R 9 Law on EE

-

-

Implemented – Law on EE was adopted on July 8th, 2011.

R 10 Promotion of EE in households

-

14.86

Implemented Raiffeisen Bank has disbursed: ~ 200.000 euro to microcredits ~ 1 mil euro to SMEs ~ 4 mil euro loan to big industrial client ProCredit Bank has disbursed: ~ 20 mil euro to microcredits ~ 2 mil euro to SMEs

R 11 Development of a system for certification of energy auditors

-

-

Implemented through adoption of Regulation no.01/2012 on Establishment and Functioning of CCEAM. Adoption date 26.01.2012

During the reporting period, 52 energy auditors were certified and secondary legislation on the establishment of the Commission for Certification of

38

Energy Auditors and Managers was adopted.

R 12 Public campaign on energy savings and improved EE

4.85

8.60

Implemented Total savings introducing EE bulbs were calculated for residential and services sectors together, for reporting purposes 80% of savings reported on R12

R 13 AI on heating of new collective buildings

-

-

Not implemented - in the reporting period the AI was not approved yet

R 14 Reforms of public procurement legislation to benefit of energy efficiency incentives

- -

Implemented –amendments to Procurement Law approved on 31 August, 2011

R15 Incentivize usage of solar energy for sanitary water heating

-

-

Installation of solar collectors observed, but due to insufficient information achieved savings are not reported

Total from measures: 13.27 ktoe 28.06 ktoe

Services sector


measure


to be achieved in 1

st NEEAP

(ktoe)


(ktoe)


Comments

S 1 AI on labeling of office electric appliances

-

-

Implemented – AI on labeling adopted on 27.06.2012.

Revised AI no.09/2012 on Labeling of Energy related Products, includes all appliances used in Residential and Services Sector.

S 2 AI on energy auditing

-

-

Implemented – AI on energy auditing adopted on April 14, 2008 and revised on January 30, 2012.

52 energy auditors were trained and certified

39

S 3 AI on EE promotion for final consumers and energy services

-

-

Implemented – AI on Promotion of energy efficiency for the final consumers and energy services adopted on 31

st of

October 2012.

S 4 Development of municipal capacities for project management and energy audits in municipalities

-

-

Implemented – training took place in December 2010.

60 officers in municipalities were trained on energy management. 30 officers in municipalities were trained on energy planning and compilation of municipal EE action plans

S 5 Training of energy auditors at municipal level

-

-

Implemented – training took place in December 2010.

30 trained Municipal officers.

S6 Enhancement of the collection rate and improved EE (campaign by KEK J.S.C.)

-

-

KEK and KOSTT reported that: KEK launched public awareness campaign on yearly bases to enhance collection rate. KEK procured 97. 600 multifunctional and simple digital meters. During the reporting period KEK has succeeded in replacing 57. 000 digital meters. Commercial losses decreased on yearly basis (24.02% in 2010, 21.37% in 2011 and 18.81% in 2012)

Implementation of the measure had positive impact on introducing of EE light bulbs (R12 and S13) and implementation of AI on labeling household electric appliances (R1)

S 7 EE promotion at municipal level

1.2 0.81

Refurbishment of doors and windows in municipal buildings of 15 municipalities totaling 40.919 m2 Refurbishment of walls in municipal buildings of 17 municipalities totalling 97.818 m2

40

S 8 LPG promotion

0.5

-

With current price of LPG the planned target is not achievable.

S 9 Technical regulation on energy performance of buildings

-

-

Implemented – Technical regulation adopted on May 25th, 2009

S 10 Law on EE

- - Implemented – Law on EE was adopted on July 8th, 2011

S 11 Promotion of EE in SMEs

- -

EE investments in SMEs observed, but due to insufficient information savings are no reported

Raiffeisen Bank has disbursed: ~ 200.000 euro to microcredits ~ 1 mil euro to SMEs ~ 4 mil euro loan to big industrial client ProCredit Bank has disbursed: ~ 20 mil euro to microcredits ~ 2 mil euro to SMEs

S 12 Creation of a system for certifying auditors

- -

Implemented through adoption of Regulation no.01/2012 on Establishment and Functioning of CCEAM. Adoption date 26.01.2012

During the reporting period, 52 energy auditors were certified and secondary legislation on the establishment of the Certification Commission for Energy Auditors and Managers was adopted

S 13 Public campaign on energy savings and energy efficiency improvement

7.20 2.15

Implemented Total savings from introduction of EE light bulbs were calculated for residential and services sectors together, for reporting purposes 20% of savings reported on S13

S 14 Transformation of procurement legislation, with the aim of improving EE

- -

Implemented – amendments to Procurement Law approved on 31 August 2011.

41

S 15 Stimulation of use of solar systems and panels for sanitary water heating and public lighting 4.34

0.085

MED/MEM has financed exemplary pilot projects installing Solar Panels in 3 hospital clinics, one students dormitory and its Administrative Building, while the University Students Centre has financed one Students Dormitory

S 16 Improved EE through efficient lighting in public buildings

-

0.06

13 municipalities and 3 ministries have reported energy savings by replacing lighting systems in public buildings

S 17 Efficient public street lighting

- 0.76

In 2010 through co-funding (GIZ, MEM and Municipalities) pilot projects in 5 municipalities have been implemented on replacement of street lighting systems

In 2011 and 2012 13 more municipalities have replaced street lighting systems from their own budgets

S 18 Improved EE in heating equipment for the services sector

- -

Due to lack of data, savings achieved are not evaluated and reported

Total from measures 13,24 ktoe 3.865 Ktoe

Industry Sector


measure


to be achieved in 1

st NEEAP

(ktoe)


(ktoe)


Comments

I 1 EE promotion among SMEs

- -


Raiffeisen Bank has disbursed: ~ 200.000 euro to microcredits ~ 1 mil euro to SMEs ~ 4 mil euro loan to

42

big industrial client ProCredit Bank has disbursed: ~ 20 mil euro to microcredits ~ 2 mil euro to SMEs

I 2 Encouragement of simple audits in the industry sector and a campaign on awareness raising in this sector

2.2 -


Total from measures 2.2 ktoe 0 ktoe

Transport sector


measure


to be achieved in 1

st NEEAP

(ktoe)


(ktoe)


Comments

T 1 AI on introduction of bio-fuel in transport

-

-

In the reporting period the AI was not yet approved

T 2 Public awareness raising campaign in transport

1.4 -



Agriculture sector


measure


to be achieved in 1

st NEEAP

(ktoe)


(ktoe)


Comments

A 2 Awareness campaign on energy efficiency

0,15 -



TOTAL 30,26ktoe 31.925 ktoe

Analysis of actual energy savings achieved show that more than 80% of the target has been achieved in residential sector. However, it should be taken into account that due to a lack of data, savings achieved in the services sector have not been fully evaluated and reported. In addition, savings achieved in the industry and transport sectors have not been reported at all.

43

Remark: Besides the reported saving measures, First NEEAP has had many soft measures connected with implementation of Laws and AI’s which could have provided tangible results but we could not apply the M&V&E methodology, therefore are not reported on this report. In addition, on these soft measures we do not foresee substantial developments in upcoming period of Second NEEAP as a matter of budgetary constraints, therefore are not included in the Second NEEAP.

Table 22: Actual energy saving achieved by sector

Indicative Energy Saving Target: 31 ktoe

Period (2010-2012)

Sector (%) (ktoe) (GWh)

Residential 87.89 28.06 326.34

Services 12.11 3.865 44.95

Industry 0 0 0

Transport 0 0 0

Total 100 31.925 371.29

3.4 Summary on energy savings planned and achieved

The saving target set in the 1

st NEEAP of 31.00 ktoe has been over achieved – 31.916 ktoe.

Preliminary estimates show that energy savings reached in the first mid-term period 2010 – 2012 are even higher than reported, but due to the lack of statistical data energy savings cannot be properly assessed and reported. Energy savings reached in the transport and industry sectors were not evaluated at all in the 1

st

NEEAP.

Table 23: National indicative target and its accomplishment

National indicative target in 2018 91.89 ktoe

Intermediate indicative target in 2012 31.00 ktoe

Separation of sector targets

Sector target Energy savings in 2012 Approximate

assumption of energy savings in 2018

2012 2018 Total (TD)

From measures (BU)

Total (TD)

From measures

(BU)

Residential (ktoe) 12.40 30.64 28.06 ktoe 46.98

Services (ktoe) 9.30 12.26 3.865 ktoe 18,91

Industry (ktoe)** 7.905 24.84 Not evaluated 14.00

Transport (ktoe) 1.395 24.15 Not evaluated 12.00

Total (equivalent units): ktoe 31.00 91.89 31.925ktoe 91.89 ktoe

Total (GWh): 360.53 1068.68 371.29 GWh 1068.68 GWh

Percentage (%)(compared to ESD reference consumption)

3 % 9 % 3.1 % 9.00%

*Fields shaded in grey include values from the first NEEAP

**Agriculture sector has been included in into the Industry Sector Remark: In the First NEEAP we have not forecast a national target for nearly zero energy buildings.

44

4 ENERGY EFFICIENCY MEASURES OF THE SECOND NEEAP IN THE ENERGY END-USE SECTORS In total, 17 energy efficiency measures have been included the 2nd NEEAP. Most of these energy efficiency measures are planned to be implemented in the services sector – 5, and followed by the residential sector.

4.1 Measures in the residential sector

The residential sector is the second largest energy end-use sector in Kosovo. In 2012, energy end-use in the residential sector was 498.71 ktoe or 39.53 % of total energy end-use consumption. It is estimated that the energy savings potential for the residential sector is around 10-40%. It is clear from the above that the household sector would contribute most energy savings, but it is also the most difficult sector in which to achieve progress, due to lack of incentives and penalties for non-implementation. Reduction of energy consumption will be one of the greatest challenges in the future. It is certainly required, as rising energy prices will put an increasingly heavy burden on households - in particular on low income households, who already can hardly afford to pay their energy bills. The draft of new Condominium Law is approved by the Parliamentary Commission. The Law will be presented to the parliament for the second reading in next Months. The Law will regulate the use, management and maintenance of jointly owned buildings. It is important to note that the creation of house owners’ associations will become obligatory. The implementation of the Law will regulate the rights and duties of apartment owners, the allocation of profit, charges and costs, general meeting and binding decisions for minorities after majority votes, preconditions for unanimous decisions, etc. The policy planning document that addresses housing development issues in Kosovo is the Strategy of the Ministry of Environment and Spatial Planning (2011 – 2014). The following two strategic objectives address issues related to the establishment of a legal and institutional framework for the promotion of energy efficiency:

increasing access to housing that is affordable and compatible with the economic circumstances of families and with the preservation of the value of the housing stock;

regulating construction activities by engineering technical regulations in compliance with EU standards.

Issues related to promotion of energy efficiency in multi-apartment buildings will be the main priority of the Ministry of Environment and Spatial Planning for the coming years.

The following 4 measures for the residential sector have been included in the 2nd NEEAP:

Improving EE through implementation of energy efficiency measures in residential buildings,

Improving EE through implementation of energy efficiency measures in the residential sector,

Improving EE through implementation of energy efficiency measures in multi-apartment buildings,

Improving EE through continuing information campaigns on energy efficiency.

45

Table 24

Summary table of energy efficiency improvement measures in the residential sector

No Title of the energy saving measure

Target group

Duration Achieved energy savings in 2012 - summary of sectorial savings based on measures defined in 1st NEEAP

Energy savings expected in 2018

R.1. Improving EE through implementation of energy efficiency measures in residential buildings

Households 2014

to

2015

28,06 ktoe

51,56 ktoe R.2. Improving EE

through implementation of energy efficiency measures in the residential sector

Households 2013

to

2018

R.3. Improving EE through implementation of energy efficiency measures in multi-apartment buildings

Owners of apartments in multi-apartment buildings

2013

to

2018

R.4. Improving EE through continuing information campaigns on energy efficiency

Households 2013 to 2015

Title of the energy saving measure Improving EE through implementation of energy efficiency measures in residential buildings

Index of the measure R1

Description

Category Financial instrument

Timeframe Start: 2014

End: 2015

Aim/brief description Measure aims at increase of energy efficiency in residential buildings

Target end-use Existing buildings

Target group Households

46

Regional application Nationwide

Information on implementation

List and description of energy saving actions substantiating the measure

It is planned that energy saving measures will be implemented in residential buildings. Energy saving measures in residential buildings foresees insulation of walls, replacement of windows, insulation of roofs and basements.

Budget and financial source Total EBRD contribution (loan/grant) – 12mil Euro.

(The total budget for measures R1 (3 mil., Euro) and I1 (9 mill. Euro)).

Implementing body MED/KEEA

Monitoring authority KEEA

Energy savings Method for monitoring/measuring the resulting savings

KEEA has developed a project post-implementation monitoring system which foresees that final beneficiaries will submit information on actual energy consumption after project implementation.

Expected savings in 2012 as per 1

st NEEAP

Implementation of the measure will start in 2013

Savings achieved in 2012 Implementation of the measure will start in 2013

Expected energy savings in 2015

2,00 ktoe

Expected impact on energy savings in 2018 (if available)

Assumptions Estimates of expected energy savings are based on an assessment of energy savings achieved with similar investment in the 1

st

NEEAP, foreseeing that approx. 1/3 of budget available will be invested in residential sector (the rest in Industry and SMEs sector – I1)

Overlaps, multiplication effect, synergy

-

Title of the energy saving measure Improving EE through implementation of energy efficiency measures residential sector


Description



End: 2018

Aim/brief description Measure aims at increase of energy efficiency in residential buildings



47




It is planned that energy saving measures will be implemented in residential buildings. Energy saving measures in residential buildings foresees insulation of walls, replacement of windows, insulation of roofs and basements.

Budget and financial source Commercial banks have already issued a large number of loans for implementation measures in the residential and SME sectors – it is also expected that in the period of the 2

nd NEEA

implementation overall costs will at least remain at the same level – i.e. at least 20 mill. euro




KEEA together with commercial banks is developing a project implementation monitoring system that will allow assessment of the energy savings achieved.


st NEEAP

2,86 ktoe

Savings achieved in 2012 9,76 ktoe


7 ktoe


Assumptions Estimates of expected energy savings are based on an assessment of the energy savings achieved with similar investments in the 1

st

NEEAP


-

Title of the energy saving measure Improving EE through implementation of energy efficiency measures in multi-apartment buildings


Description

Category Regulation / Financial instrument


End: 2018

Aim/brief description Measure aims to increase energy efficiency in multi-apartment buildings.


48

Target group Owners of apartments in multi-apartment buildings




Draft Law on Condominiums which is in the second reading stage in Parliament, foresees establishment of housing associations as an obligation. It creates a legal basis for the further implementation of EE measures in multi-apartment buildings.

The Ministry of Environment and Spatial Planning will draft an administrative regulation concerning technical housing norms for condominiums; an administrative instruction for a certification program for administrators, an administrative instruction about condominium agreements and an administrative instruction for a register of condominiums, in parallel, administrators at local level will start a promotion campaign for the establishment of housing owner associations. It will be an obligatory precondition for receiving further support from the state for preparation of energy audits and the implementation of energy saving measures.

There is a Capstone Project being carried out by an officer of the Ministry of Environment and Spatial Planning which aims to be deliver a promotional program for the Law for development of the condominium management mechanisms.

It is planned that energy saving measures will be implemented in multi-apartment buildings. Energy saving measures foresee insulation of walls, replacement of windows, insulation of roofs and basements.

Budget and financial source AI – budget of the Ministry of Environment and Spatial Planning

Promotional measures for establishment of housing associations for 12 multi-apartment buildings (Ministry of Environment and Spatial Planning would cover half the cost in the form of conditional grants for establishment of owner associations and the other half should be covered by the building owners)

Implementation of first pilot projects – for 4 multi-apartment buildings (Ministry of Environment and Spatial Planning would invest in renovation measures covering half of the total amount as conditional grants and the rest would be covered by the building owners)

Total budget for promotion measures and Implementation of pilot projects – 540 000

49

euro.

Implementing body Ministry of Environment and Spatial Planning



KEEA has developed a project post-implementation monitoring system that foresees that final beneficiaries should submit information on actual energy consumption after projects’ implementation.


st NEEAP




0,5 ktoe


9,00 ktoe

Assumptions -


-

Title of the energy saving measure Improving EE through continuing information campaigns on energy efficiency


Description

Category Information measure


End: 2015

Aim/brief description Measure aims at increasing awareness of energy efficiency issues and that this will facilitate further implementation of EE measures in residential, industrial and services sectors.

Target end-use Residential





It is planned that KEEA will carry out continuing awareness raising campaign for energy efficiency measures.

Budget and financial source

MED/ KEEA budget – 150.000 euro during the period 2012- 2014, 50.000 euro for each year.

50




TD


st NEEAP





Assumptions


4.2 Measures in transport sector

The transport sector is the second largest energy end-use sector in Kosovo. In 2012, energy end-use in transport sector was 336.47 ktoe or 26.67 % of total energy end-use consumption.

Table25. Overview of total energy consumption by transport subsectors 2010-2012

Subsectors / Year 2010 2011 2012*

Road transport 316.52 325.44 322,35

Railway transport 1.15 1.21 1,24

Air Transport 1.24 11.93 12,88

Total transport sector 318.91 338.58 336.47

Source: Energy Balance of Kosovo - 2010, 2001, 2012 (forecast)*, Ministry of Economic Development Two energy efficiency measures were included in the 1

st NEEAP, which envisaged energy savings of 1.4 ktoe in

the transport sector. Due to the lack of data for calculation of energy efficiency indicators in the transport sector, no achieved energy savings have been reported in the 1st NEEAP. The Ministry of Infrastructure has planned to make improvements in the data collection system – especially regarding the collection of data on mileage, creating the possibility to calculate energy savings achieved in the transport sector in the 2

nd NEEAP.

Development of the public infrastructure has been included as one of the pillars in the Action Plan of the Economic Vision of Kosovo (2011-2014). Several transport sector infrastructure development projects have been included in the above mentioned policy document. For instance, in road infrastructure development,- construction of the highway R7 Morinë – Merdare, highway R6 Prishtinë - Hani i Elezit, expansion of national roads, etc. It also foresees investment projects in the railroad sector - rehabilitation and modernization of the south sector line 10 of the railroad. There are two main policy planning documents in the transport sector:

Strategy of Multimodal Transport and Action Plan;

51

Strategy of the Ministry of Infrastructure (2011 – 2014). The goal of the Ministry of Infrastructure is to contribute to economic growth through the establishment of an efficient and integrated multimodal system – road, railway, air. The following 3 measures have been included for the transport sector in the 2nd NEEAP:

Improving EE through a continuing information campaign on promotion of eco-driving;

Systematic inspections of the technical condition of vehicles;

Improving the public transport system in Pristina city.

Table26. Summary table of energy efficiency improvement measures in the transport sector


Target group



T.1. Improving EE through continuing information campaign on promotion of eco-driving

All vehicle owner groups

2012

to

2014

Savings not reported due to lack of data

12 ktoe

T.2. Systematic inspections of the technical condition of vehicles

All vehicle owner groups

2013

to

2015

T.3. Improving of public transport system in Pristina city

Users of public transport in Pristina city

2013

to

2015

Title of the energy saving measure Improving EE through continuing information campaign on promotion of eco-driving

Index of the measure T1

Description

Category Information measure


End: 2015

Aim/brief description To promote eco-driving that will lead to more efficient driving and reduced consumption of energy resources by vehicles.

Target end-use Transport

Target group All vehicle owner groups

52




In order to promote eco-driving the following actions will take place:

continuing awareness raising campaign on eco-driving will be carried out;

starting 2013, eco-driving will be introduced as a part of the training course and final examination for obtaining a driving license;

drivers at the ministries will be encouraged to pass eco-driving courses

Budget and financial source Budget of the Ministry of Infrastructure

Costs are covered by the cost of the driving licence

Budgets of central government ministries

Implementing body Ministry of Infrastructure

Monitoring authority Ministry of Infrastructure / KEEA


TD


st NEEAP

Savings achieved in 2012



Assumptions


Title of the energy saving measure Systematic inspections of the technical condition of vehicles


Description

Category Specific measures in the transport sector

Timeframe Systematically

Aim/brief description To ensure that vehicles are being operated according to the manufacturer's requirements.

Target end-use Transport

Target group All vehicle owner groups

53




In order to reduce the consumption of energy resources by vehicles:

every vehicle owner shall ensure periodic maintenance of his vehicle according to the manufacturer’s requirements;

vehicle owners shall ensure that the mandatory technical inspection is carried out in accordance with Law No. 02/L-70 On Road Traffic Safety Article 316 – on an annual basis for privately owned vehicles and once in 6 months for commercial vehicles.

Budget and financial source Technical inspection costs are covered by vehicle owners

Implementing body Ministry of Infrastructure

Licensed companies that carry out inspections

Monitoring authority Ministry of Infrastructure / KEEA


TD


st NEEAP

Savings achieved in 2012



Assumptions


Title of the energy saving measure Improving of public transport system in Pristina city


Description

Category Specific measures in the transport sector

Timeframe 2013 – 2015 (investment component to be finished by the end of 2014)

Aim/brief description To improve the public transport infrastructure – the quality of services offered – in Pristina city that would lead to increased use of public transport instead of using privately owned

54

cars.

Target end-use Public transport In Pristina city

Target group Users of public transport in Pristina city

Regional application Pristina city



Program for improvement of public transport system in Pristina city foresees the following activities to be taken:

Public awareness raising campaign supported by special offers to promote the use of public transport

Investment component – it is planned that 50 new buses will be bought for improvement of public transport services in Pristina city

Budget and financial source Public awareness raising campaign – budget of Pristina city council

Investment component – 5.5 mill. euro (budget of Pristina city council – 2 mill. Euro, Government of Japan – 3.5 mill. Euro)

Implementing body Pristina city council

Monitoring authority Pristina city council / KEEEA


BU


st NEEAP




0.54 ktoe - by the end of the implementation period related energy savings will be reported


Assumptions (old bus – new bus) - by the end of the implementation period the number of replaced buses and related energy savings will be reported


55

4.3 Measures in the tertiary sector

Energy efficiency measures in the tertiary sector – which includes public administration, healthcare etc. institutions - will be central investment projects in the 2

nd NEEAP. The 2

nd NEEAP contains five measures for

implementation, for which financing from the national budget of Kosovo, local municipal budgets and IFIs has been mostly committed. More than 200 buildings will be renovated as a result of the implementation of investment projects in the above mentioned activity. The following 5 measures have been included for the tertiary sector in the 2nd NEEAP:

Improving EE through renovation of public buildings in municipalities,

Improving EE through renovation of central government buildings,

Improving EE through renovation of public buildings (municipal buildings),

Improving EE through renovation of municipal buildings and street lighting,

Promotion of energy efficiency measures by preparing energy audits.

Table 27. Summary table of energy efficiency improvement measures in the public sector


Target group Duration Achieved energy savings in 2012 – summary of sectorial savings based on measures defined in 1st NEEAP


S1 Improving EE through renovation of public buildings in municipalities

Public services

2013

to

2014

3,865 ktoe

20,71 ktoe

S2 Improving EE through renovation of governmental buildings

Central government buildings

2014

to

2015

S3 Improving EE through renovation of public buildings (municipal buildings)

Public services

2014

to

2019

S4 Improving EE through renovation of municipal buildings and street lighting

Public services

2013

to

2016

S5 Promotion of energy efficiency measures by preparing energy audits

Public services, central government buildings

2012

to

2014

56

Title of the energy saving measure Improving EE through renovation of public buildings in municipalities

Index of the measure S1

Description



End: 2014

Aim/brief description Measure aims at increasing energy efficiency in municipal buildings


Target group Public services




It is planned that energy saving measures will be implemented in 65 public buildings (63 schools and 2 hospitals). Energy saving measures foresees insulation of walls, replacement of windows, insulation of roofs and basements, as well as installation of energy efficient lighting. Concrete measures that will be implemented in each building have been identified in the process of preparation of energy audits.

Budget and financial source EC contribution (grant) – 15.6mil. euro – post monitoring implementation period will show energy savings results




KEEA has developed a project post-implementation monitoring system which foresees that final beneficiaries should submit information on actual energy consumption after projects’ implementation.


st NEEAP




2,17 ktoe


Assumptions Estimates of expected energy savings are based on energy audits that were carried out for each building.


-

57

Title of the energy saving measure Improving of EE through renovation of governmental buildings


Description



End: 2019

Aim/brief description 3 year program which aims to increase energy efficiency in central government and municipality buildings






It is planned that the project will include 200 - 250 buildings:

energy audits will be prepared for all central government buildings (except: police, military) and some municipality buildings

energy saving measures will be implemented in all central/local governmental buildings that will be audited.

Energy saving measures foresees insulation of walls, replacement of windows, insulation of roofs and basements. Concrete measures that will be implemented in each building will be identified during the preparation of energy audits.


WB (loan) is estimated at US$18m for the central government component and US$4.5m. for the municipality component also 0.7€ m EC contribution as grant (energy audits) – in total about 17.5 mill. Euro




KEEA has developed a project post-implementation monitoring system which foresees that final beneficiaries should submit information on actual energy consumption after projects’ implementation.


st NEEAP




2.,34 ktoe


7.34 ktoe (cumulative total)

Assumptions Estimates of expected energy savings are based on average energy savings evaluated in energy audits that have already been prepared for central and

58

local government buildings.


-

Title of the energy saving measure Improving of EE through renovation of public buildings (municipal buildings)


Description



End: 2016

Aim/brief description Measure aims at increase of energy efficiency in public (municipal) buildings






It is planned that energy saving measures will be implemented in 30 public buildings. Energy saving measures foresees insulation of walls, replacement of windows, insulation of roofs and basements. Concrete measures that will be implemented in each building will be identified during the preparation of energy audits.


KfW/EC contribution grant – 5.0 mill. Euro, in total 5.0 mill. Euro.






st NEEAP




1,0 ktoe


Assumptions Estimates of expected energy savings are based on average energy savings evaluated in energy audits that have already been prepared for public buildings.

59


-

60

Title of the energy saving measure Improving EE through renovation of municipal buildings and street lighting


Description



End: 2018

Aim/brief description Measure aims at increase of energy efficiency in municipal buildings






Municipal energy efficiency plans are expected to be developed for approx. 15 municipalities in Kosovo.

It is foreseen that this initiative will have a positive impact on municipalities’ willingness to invest in energy efficiency projects. It is expected that it will lead to implementation of approx. 100 investment projects in municipalities overall in Kosovo. Energy saving measures foresees insulation of walls, replacement of windows, insulation of roofs and basements, as well as installation of efficient lighting.


National budget (Ministry of Local Governments Administration) and budgets of municipalities – depending on the investment to be made by these two institutions.

Implementing body Ministry of Local Governments and Administration Municipalities/Municipalities





st NEEAP





Assumptions Estimates of expected energy savings are based on average energy savings evaluated in energy audits that have already been prepared for public buildings.


-

61

Title of the energy saving measure Promotion of energy efficiency measures by preparing energy audits


Description

Category Energy audits


End: 2015

Aim/brief description The measure aims at promoting the implementation of energy efficiency measures by carrying out energy audits.


Target group Public services, central government buildings




It is expected that by using resources of the Kosovo national budget and also resources provided by IFIs energy audits will be prepared for public buildings – municipal and central government buildings. This process will facilitate the further implementation of energy efficiency investment projects.

Budget and financial source MED/KEEA budget - 144 000 euro committed (2013 – for 116 energy audits to be carried out)

The WB/EC project (measure S2) foresees approx. 250 energy audits to be carried out in central government buildings.




TD


st NEEAP





Assumptions


62

4.4 Measures in the Industry and SME sectors

According to Kosova Business Registration Agency (KBRA) at the MoTI, on December 31st 2010, there were more than 100,000 registered SMEs, with 216,799 employees, representing 79.59 % of total employees in the private sector and 62.24% of the total number of employees in Kosovo. From a total of 103,755 enterprises, 102,070 (or 98.37%) are micro enterprises, 1,406 (1.35%) are small, 221 (0.22%) are medium and only 58 (0.06%) are classified as large. The overwhelming predominance of micro-enterprises has implications for the SME Strategy. In terms of sector breakdown, SMEs are mostly concentrated in: retail (around 50%); transport, storage and distribution (14%); food products, beverages and tobacco (9%); and, hotels and restaurants (9%). According to the SME Policy Index 2009, the sectorial distribution has remained stable over time. Industry is the third largest energy end-use sector in Kosovo. In 2012, energy end-use in the industry sector was 290.68 ktoe or 23.04% of total energy end-uses consumption.

Table28. Overview of total energy consumption by industrial subsectors 2010-2012 in ktoe

Sub-sectors / Year 2010 2011 2012*

Iron and steel 59,36 69,03 77,82

Non-ferrous metal industry 61,75 64,47 41,06

Chemical industry 1,83 1,89 1,74

Glass, ceramics & construction material industry 28,4 60,69 59,83

Excavating industry 2,56 2,7 2,14

Food, drinks & tobacco industry 78,88 83,8 73,21

Textile, leather and clothing 0,16 0,17 0,13

Paper and printing 0,24 0,26 0,26

Engineering & other metallic industries 0,01 0,01 0,01

Other industry 21,72 32,62 34,47

Total Industry sector 254,89 315,64 290,68

* Forecast consumption Source: Energy Balance of Kosova for 2010, 2011, 2012

63

The 2010 energy consumption results by industrial sub-sector show that food, drink and tobacco was the

largest sub-sector, consuming 78.88 ktoe or 30.90 % of the total industry sector consumption. It was followed

by the non-ferric metal sub-sector with 61.75 ktoe or 24.20 % and then by the steel and iron sub-sector with

59.36 ktoe or 23.30 % of the total energy consumption.

The 2011 energy consumption results by industrial subsector show that the food, drink and tobacco subsector

had the highest consumption with 83.80 ktoe or 26.5% of the total industry sector consumption, followed by

the steel and iron subsector with 69.03 ktoe or 21.9%, the non-ferric metal subsector with 64.47 ktoe or

20.4%, glass, ceramic and construction material industry with 60.69 ktoe or 19.2%, and other industrial

subsectors with 32.62 ktoe or 10.3%.

Until now, the forecast (not realized) energy consumption for 2012 in the iron and steel subsector shows a perceptible increase of 11.30% in consumption, from 69.03 ktoe (2011) to 77.82 ktoe (2012) or 26.77% of the total industry sector, a decrease in the share of the food, drinks & tobacco industry, from 83,8 to 73,21 ktoe, and a decrease in the consumption of the non-ferrous metal industry from 64,47 to 41,06 ktoe. Two energy efficiency measures were included in the 1st NEEAP, which envisaged energy savings of 2.2 ktoe in the industry sector. Due to the lack of data for calculation of energy efficiency indicators in the industry sector, no achieved energy savings have been reported in the 1st NEEAP. The following 2 measures have been included in the 2nd NEEAP:

Improving EE through implementation of energy efficiency measures in SMEs,

Improving EE through implementation of energy efficiency measures in industrial enterprises. Table29. Summary table of energy efficiency improvement measures in the industry sector

No Title of the

energy saving measure

Target group



I1 Improving EE through implementation of energy efficiency measures in SMEs

SMEs 2014

to

2015

Savings not reported due to lack of data

15.50 ktoe

I2 Improving EE through implementation of energy efficiency measures in industrial enterprises

SMEs 2013

to

2015

64

Title of the energy saving measure Improving EE through implementation of energy efficiency measures in SMEs

Index of the measure I1

Description



End: 2015

Aim/brief description Measure aims at increase of energy efficiency in SMEs by implementing energy savings measures.

Target end-use Industry and SMEs

Target group Industry and SMEs




It is planned that energy saving measures will be implemented in SMEs. Energy saving measures in SMEs foresee replacement of old inefficient production units as well as implementation of efficient lighting solutions.

Budget and financial source Total EBRD/EC contribution (loan/grant) – 12 mill euro

(Total budget for measures I1 (9) and for R1 (3))






st NEEAP




3,50 ktoe

Expected impact on 2018 energy savings (if available)


st

NEEAP, foreseeing that approx. 2/ 3 of budget available will be invested in the SME sector

Overlaps, multiplication -

65

effect, synergy

Title of the energy saving measure Improving EE through implementation of energy efficiency measures in industrial enterprises

Index of the measure I2

Description



End: 2015

Aim/brief description Measure aims at increase of energy efficiency as a result of the industry sector and SMEs implementing energy savings measures.

Target end-use Industry and SMEs

Target group Industry and SMEs




It is planned that energy saving measures will be implemented in SMEs and industrial enterprises. Energy saving measures in SMEs foresee replacement of old inefficient production units as well as implementation of efficient lighting solutions.

Budget and financial source Commercial banks have already issued a large number of loans for implementation measures in the residential and SME sectors – it is expected that in the period of the 2

nd NEEAP

implementation the costs will remain at least at the same level – i.e. at least 10 mill. euro




KEEA, together with the commercial banks, is developing a project implementation monitoring system that will allow assessment of the energy savings achieved.


st NEEAP




5,00 ktoe


66


st

NEEAP


-

4.5 Measures in the building sector

The construction characteristics of building units in Kosovo, in terms of insulating materials and quality of

windows and doors, have tended to improve in recent times. In general, buildings constructed since 1999

achieve mandatory construction standards, while buildings constructed before 1999, particularly those in the

public sector, are characterized by poor overall thermal insulation quality, especially in respect of attics,

external walls and windows.

According to the NEEAP and CENSUS 2011, there were approximately 310,000 residential buildings in Kosovo

in 2011, over 55,000 commercial buildings and around 2,000 public buildings.

The public building stock of Kosovo (schools, universities, hospitals, health centres, government buildings, etc.)

includes some 1,800 buildings. Most parts of public buildings are fully heated, with fuel oil, district heating and

electricity being the most common space heating fuels. Since most of these buildings date back to the pre-

1999 period, their construction characteristics are relatively poor.

The Private/Commercial Service Building Sector is a developing sector in Kosovo. In many instances, the

private sector has experienced modernization and qualitative improvements. This group of businesses includes

activities such as hotels, restaurants, banks, tourist agencies, consultancies and insurance offices, etc., as well

as many private services that operate in parallel with the public sector, such as education, culture, health, etc.

Many of these businesses are aiming to introduce modern energy efficiency technology, but improvements are

still needed to ensure the efficient utilization of such technology. However, it should be noted that the Private

Service Sector also includes some traditional repair-service workshops and small shops and restaurants that

have neither the demand for, nor the opportunity to install, space heating and air conditioning.

67

Table30. Summary table of energy efficiency improvement measures in the building sector

o Title of the energy saving measure

Target group

R.1. Improving EE through implementation of energy efficiency measures in residential buildings

Households

R.2. Improving EE through implementation of energy efficiency measures in residential sector

Households


Owners of apartments in multi-apartment buildings

R.4. Improving EE through continuing information campaign on energy efficiency

Households


Public services

S2 Improving EE through renovation of central government buildings

Central government buildings


Public services


Public services


Public services, central government buildings

4.6 Horizontal measures

Energy efficiency horizontal measures are those that apply to more than one energy end-use sector and in the long-term these measures can show real energy savings. Three measures that have the greatest potential for promotion of energy efficiency are included in the 2

nd

NEEAP:

Amendments to the Energy Efficiency Law,

Green public procurement policies,

Improving minimum energy efficiency requirements in new buildings and existing buildings that are to be reconstructed.

68

Table31. Summary table of horizontal energy efficiency improvement measures

No Title of the

energy saving measure

Target group

Duration Achieved energy savings in 2012

- summary of sectorial savings based on measures defined in 1st NEEAP


H.1. Amendments to the Energy Efficiency Law

All end-users

2013

to

2015

Implementation of the measure

will start in 2013

9,00 ktoe

H.2. Green public procurement

State authorities

Local authorities

2013

to

2015

H.3. Improving minimum energy efficiency requirements in new buildings and in existing buildings that are to be reconstructed

Owners of buildings

2013

to

2018

Title of the energy saving measure Amendments to the Energy Efficiency Law

Index of the measure H1

Description

Category Regulation


End of October 2013

Aim/brief description Measure aims at the further development of the legal framework and laying the basis for secondary legislation that will introduce penalties/incentives for promotion of implementation of energy measures

Target end-use All end-users

Target group All end-users




Amendments to the Energy Efficiency Law will include the following main initiatives: To be determined according to recommendations of the Parliamentary Commission.

69

Budget and financial source KEEA budget – Not yet estimated




TD


st NEEAP





Assumptions


Title of the energy saving measure Green public procurement


Description

Category Cooperative instruments


End: 2015

Aim/brief description Measure aims at facilitation of the penetration of energy efficient technologies through public procurement procedures, leading to a reduced impact on the environment as well as to budget savings.

Target end-use Public sector

Target group State authorities

Local authorities




In its procurement policy the contracting entity will set out environmental requirements for suppliers' abilities and include them in the technical specifications for the subject of the procurement, by making use of the relevant standards and eco-labelling, and also by including environmental and energy efficiency factors in the selection criteria for the most economically advantageous tender.

70

Budget and financial source State or local authority budgets, according to the authorities' procurement plans

Implementing body State and local authorities



TD


st NEEAP





Assumptions


Title of the energy saving measure Improving minimum energy efficiency requirements in new buildings and in buildings that are to be reconstructed


Description

Category Legislation


End: 2018

It is planned that by the end of 2013 the government will finalize and amend the Building Code. Part of this code will be a Chapter which defines standards for energy savings and thermal protection of buildings.

Aim/brief description Measure aims at facilitating the implementation of energy saving measures and at introducing higher standards for new and reconstructed buildings.

The aim is to set standards and facilitate measures for implementation of energy savings in new and existing buildings.

Target end-use Buildings

Target group Owners of buildings

In new and renovated dwellings and administrative buildings.

71




The Building Code will set minimum energy efficiency requirements for new buildings and for reconstructed buildings.

Budget and financial source Budget of the Ministry of Environment and Spatial Planning No Budget planned

Implementing body Ministry of Environment and Spatial Planning, Municipalities, MED, MTI

Monitoring authority Ministry of Environment and Spatial Planning


TD

Implementation of this regulation requires professional and human capacities


st NEEAP




6,00 ktoe


Assumptions Planned energy savings of 30 kWh/m2 in new

and in reconstructed buildings. The average area of new or reconstructed buildings is 800.000 m

2 per year 2013 – 2015) and

1.200.000 m2

per year (2015 – 2018)


72

4.7 Summary of overall final energy savings

The planned and achieved energy end-use savings have been collated in Table 32 below.

Table32. Summary of final energy savings

Sector Calculation methodology Achieved energy savings in 2012

(in ktoe) - summary of sectorial savings based on measures defined in 1st NEEAP

Energy savings expected in 2018 (in ktoe)

Residential sector

TD/BU 28,06 51,56

Transport sector

TD/BU - 12,00

Services Sector

TD/BU 3,865 20,71

Industry & SMEs

TD/BU - 15,50

Horizontal measures

TD - 9,00

TOTAL 31,925 108,77

Remark: The calculation of the energy saving targets and estimation of the energy saving measures has been

carried out in accordance with Directive 2006/32/EC (ESD), Annex II.

4.8 Exemplary role of public sector

Various market assessments in recent years have identified a significant level of potential energy savings that

could be achieved in Kosovo by implementing energy efficiency measures in the country’s building stock. By far

the largest contribution to the energy saving potential comes from the residential sector, followed by the

private and commercial sector. Although the energy saving potential of municipal and central public buildings

is low – less than 10% of the total - in comparison with the other two sectors, public buildings at present

provide the best opportunities for achieving real energy savings because in many cases they already meet the

minimum energy performance levels set in the current Technical Regulation on Thermal Energy Savings and

Thermal Protection in Buildings, No.03/2009. This fact suggests that any energy efficiency program should

begin with the implementation of measures in public buildings.

Therefore implementation of the national energy efficiency policy of Kosovo is focused on the public sector,

not only because of ESD requirements, but also because of the fact that it is most practical to begin with

activities in this sector. Furthermore, this represents a pragmatic approach to EE due to the immature energy

efficiency market in Kosovo. Through its activities and decisions, the public sector can influence citizens and

organisations from other sectors and encourage them to undertake similar activities to reduce energy

consumption.

Despite their relatively low savings potential, launching the EE implementation program in the central and

municipality public building sectors would give a strong message that the government is prepared to lead by

example and it would provide a showcase for encouraging other EE initiatives in Kosovo. This in turn would

help to foster a market for EE goods and services and create better access to public and donor funds. On the

supply side (that is, in the provision of goods and services that improve EE, such as the installation of efficient

heating and cooling systems, solar hot water systems, efficient light bulbs, etc.), a successful implementation

73

program will create real opportunities for construction, heating and air conditioning companies and they will

be incentivized to improve their skills and knowledge in order to win future business. After completing a

number of EE implementation projects successfully, the experience of other countries suggests that some of

these companies will evolve and transform into ESCOs. Secondary legislation to support the ESCO contracting

framework would need to be prepared, as required by the Law on Energy Efficiency, to provide an enabling

environment for the uptake of ESCO business.

Carrying out a programme of EE investments will generate many benefits for the Kosovo economy, including

increased energy savings, reduced energy imports and a lower trade deficit, increased life of retrofitted

buildings, growth in the number of businesses and in employment and a reduction in GHG and acid rain

emissions.

The available evidence shows that the building sector of Kosovo provides significant opportunities for realizing

energy savings. Since space heating accounts for the major share of energy consumption in buildings, most

energy saving potential is associated with thermal insulation, heat loss reduction and the introduction of

efficient boilers. More than half of the Kosovo building stock was constructed in the period 1970 to 1985,

which is reflected in the relatively high specific heat consumption of these buildings. The current level of heat

consumption in Kosovo is estimated to be about 219 kWh/m2 year, compared to 80–150 kWh/m

2 year in

Western Europe, which indicates that there is a significant opportunity for EE improvements.

In order to exploit the existing energy saving potential, any supporting legislation and programs must take

advantage of existing EE market drivers. One such driver that has become increasingly important in recent

years is energy security. Despite increased use of local energy resources, such as lignite and biomass, Kosovo

depends totally on imports of oil by-products and to a lesser degree on imports of electricity, which overall

accounted for about 25% of its energy needs in 2010. The introduction of EE measures can enhance energy

security by (a) reducing imports of oil by-products and thereby reducing the trade deficit; (b) cutting down on

the consumption of fire wood and thereby preventing deforestation; and (c) minimizing the volume of

electricity imports, thereby reducing the need for government subsidies.

Improvement of the fiscal balance is a high priority for the GoK, especially given the current economic

situation. EE measures represent an opportunity for the government and the public sector to reduce their

energy budget expenditures. This would be a cost-effective measure because investments made in order to

improve EE in government facilities will pay for themselves through savings at the national level. In addition, if

the government wishes to consider the introduction of financial incentives to support the development of an

EE market, these incentives can be partially offset by reducing subsidies on domestic energy sales.

EE investments have a positive economic impact since they contribute to the development of a modern

industry that offers jobs and a range of business development opportunities. They also generate revenues

from increased taxation on the construction work required for EE implementation, which creates a positive

situation, whereby the GoK’s need to optimize tax revenues is supported by the development of an EE market

with its various associated social and environmental benefits.

The need to achieve mandatory comfort levels (i.e. minimum energy performance levels) in buildings in line

with EU Directives on the energy performance of buildings means that renovation of the existing building stock

carries a high priority in Kosovo. Old buildings require immediate investment in thermal insulation, the

introduction of efficient double/triple glazed windows and the introduction of efficient space heating and hot

water systems. Important energy savings have been identified for other energy services, such as cooking,

lighting and in the use of other electrical appliances. This presents an opportunity for the GoK to ensure that

such renovations are realized in an energy-efficient way that contributes to the Kosovo’s sustainable economic

development. In addition, renovating old and damaged buildings will contribute to the achievement of the

NEEAP’s energy savings target for the period up to 2018.

74

Implementation of EE measures represents an economically rational response to energy scarcity and

increasing energy prices - as well as to environmental concerns. Yet in all sectors the uptake of loans to pay for

EE investments is not as enthusiastic as might be expected. Therefore, it is necessary to identify the nature of

the barriers that are constraining the implementation of EE measures in Kosovo and to consider how these

constraints might be overcome.

The constraints operating in Kosovo can best be understood by classifying them according to the building

sector they apply to - residential/commercial, public or ‘cross-sector’ – and according to their origin –

economic, institutional, legal and regulatory, financial. The severity of barriers differs between the various

building sub-sectors, so that for example, the low-income segment of the residential market experiences more

problems in securing finance and will be less able to invest in the repair and renovation of buildings.

In a relatively low-income economy, many householders and small businesses need access to capital at zero or

very low cost. According to the Statistics Agency of Kosovo (November 2012) the average monthly wage in the

budget (public) sector of Kosovo in 2011 was €368, so inevitably many householders are not in a position to

take up loans for improvement of buildings on commercial terms and have higher priority needs to attend to,

such as provision of food, clothing and transport. A typical EE loan in Kosovo currently averages between

€5,000 and €6,000 at a ‘special’ (discounted) interest rate of around 10%.

Some constraints, therefore, could be addressed by the introduction of financial mechanisms, such as grants,

‘soft’ interest rates, guarantee schemes, dedicated funds, credit lines, more efficient procedures in financial

institutions and so on. In some circumstances, successful financing programs can serve as a mechanism to

remove some constraints from the market, although the removal of other barriers may also require legislative

or organizational change in the institutional framework.

The cost benefit analyses of the buildings that have been subjected to energy audits indicate that in the

majority of cases, the Economic IRR (based on economically efficient ‘shadow prices’) is higher than the

Financial IRR (based on actual prices), which demonstrates the importance of increasing energy prices

(especially electricity, lignite and fire wood) to the level of their long-run marginal costs of supply without

interruption.

The barriers constraining the implementation of energy efficiency measures in Kosovo are significant. A

summary of the main issues is presented below:

1. Residential and Commercial Sector Issues

(i) Economic Constraints

Market distortions in local energy markets mean that the prices of some fuels do not reflect their true

production costs (e.g. firewood, lignite) and therefore energy savings are undervalued.

(ii) Institutional Constraints

Many households adhere to traditional methods of cooking and space and water heating, either

because of preference, lack of awareness or, in areas where power cuts are common, for security of

supply reasons. (Over 50% of customers fall into the ‘C’ category of the KEK power rationing scheme.)

(iii) Legal and Regulatory Constraints

Since 2000, a large number of ‘illegal’ buildings have been constructed in Kosovo without the required

building permits. As a result, building energy performance standards are not enforced or monitored,

often resulting in excessive energy consumption.

75

There is no secondary legislation to promote the establishment of ‘owners’ communions’ (or Housing

Associations) and current structures to deal with refurbishment of the fabric of joint dwellings and

‘common areas’ in apartment blocks are ineffective.

Inefficient energy pricing: (a) electricity and heat tariffs are not yet fully cost-reflective, (b) tariffs are

subsidized and (c) some inefficient tariff structures persist.

(iv) Financial Constraints

Lack of affordable EE financing schemes for lower income households unable to access the loan

market.

High level of commercial losses and non-payment of energy bills.

2. Public Sector Issues


EE is not a top priority for municipality mayors - water supply, waste disposal, sewage treatment are

considered more important issues.


Insufficient EE expertise and resources at municipal level. There are 38 municipalities in Kosovo, 28 of

which had a budget of below €10m in 2010. The demands of the decentralization process are placing

an increasing burden on municipalities, while their resources are frozen or being reduced.


Budgetary rules do not allow municipalities to benefit from any energy savings they achieve in the

longer term – each year’s budget allocation is based on the previous year’s outturn.

Technical Regulation Nr. 03/2009, which states that ‘energy sustainability’, requires the achievement

of planned comfort levels in public buildings, as well as energy efficiency.

The Law on Public Procurement should ensure that the process for evaluating government tenders

takes account of any EE related benefits that a particular proposal will deliver.


The Law on Public Debt imposes various restrictions on municipalities’ ability to borrow money.

(Although for those municipalities that meet the required standards, the legal and regulatory

environment appears to be favourable to municipality lending.)

Central government budgetary constraints prevent direct finance of EE projects and the creation of an

energy efficiency fund is at present not allowed.

3. Cross Sector Issues


Underdeveloped local EE/RES business infrastructure.

Absence of ESCOs and ESCO based schemes from the local market


Inadequate data and institutional capacity to monitor evaluate and verify the impact of EE programs.

76

Lack of impartial and detailed technical information on EE markets and the goods and services they

provide.

Lack of surveys on the quality of EE services and products means that potential customers are not

well positioned to make informed decisions.

Lack of a comprehensive and reliable EE data base for Kosovo. Poor quality of data leads to poor

decision making which in turn results in ineffective investments.


The Kosovo Energy Efficiency Agency is under resourced relative to its responsibilities and obligations

The Law on Energy Efficiency laid down procedures for setting up an EE fund to promote EE and RES

projects. However such a fund is not permissible under existing legislation.


High level of transaction costs for (in terms of both money and time) for EE investments

Lack of funds for energy auditors and energy audits

Specific initiatives to address and alleviate and/or remove these constraints are planned.

Other activities in the public sector

A number of Energy Efficiency Projects in Kosovo have been completed in Kosovo in the recent past, including

the following:

1. The GIZ project “Modernization of Municipal Services” (MMS) ran from 2006 to 2012 and implemented 56

EE projects. The main focus of the project was a program of small municipal investments in the field of energy

efficiency, jointly financed by the 20 participating municipalities and through a fund established by GIZ and

Association of Kosovo Municipalities. The project did not involve any detailed energy audits but consisted of a

series of individual investments in EE projects in public buildings: schools, clinics and municipal buildings.

Projects included refurbishment of public buildings (doors, windows, thermo-insulation and installation or

upgrading of central heating systems) and modernization of street lighting. The total joint investment was in

the order of €2.5 million and resulted in energy savings of around 0.4 ktoe. The project also included

“Improvement of Energy Efficiency in Kosovo”, to improve awareness on utilization of energy saving

technologies as well as a program to improve local waste management.

2. ‘Assistance to the Ministry of Energy and Mining’ was a two-year EU-funded project which ran from 2009 to

2011. Included amongst its objectives were: (a) to strengthen the capacity of MEM staff to revise and update

policies and programs on energy efficiency and renewable energy sources and (b) to incorporate the

requirements of the Energy Community Treaty in the area of energy efficiency. The Project assisted MEM with

the preparation of the first National Action Plan on Energy Efficiency as well as training key staff in MEM’s

Energy Efficiency and Renewable Energy Sources Division. In the course of carrying out these tasks, the Project

developed, in accordance with EU regulations, an Energy Labelling Scheme and identified the changes to

primary and secondary legislation that would be needed to allow for the enforcement of domestic appliance

labelling. A “Manual of Energy Efficiency for Small and Medium Enterprises (SMEs) and Light Industry” was

produced to promote energy savings by setting out a list of practical steps explaining how businesses can

reduce energy bills. The Manual was made available to small businesses throughout Kosovo. The project also

produced a booklet entitled “EU Assisting Energy Sector reforms in Kosovo” which summarized the progress

that was being made in the areas of energy efficiency, renewable energy sources and the environment and a

‘Project Factsheet’, describing the work and the specific achievements of the project.

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3. Installation of efficient public lightning in public facilities, financed by MEM/MED and GIZ (€572k) which was

completed in 2012. In June 2011 the MED and GIZ signed a memorandum of understanding which set out the

arrangements for co-funding a project on efficient lighting in public facilities at municipal level. The purpose of

the project was to contribute to the modernization of lighting in public facilities and street lighting by replacing

inefficient light bulbs with efficient ones. The project, which was co-funded by MED, GIZ and the

municipalities, was implemented over a two-year time frame and involved five municipalities - Pristina,

Mitrovica, Ferizaj, Podujevo and Gjilan. Another beneficiary was one of the dormitories at the University of

Prishtina. This project has contributed to the achievement of the targets set in the 1st

National Energy

Efficiency Plan.

4. Study and Implementation of EE measures in Municipalities (63 schools and 2 hospitals), financed by EU

(€15.6 m). The beneficiaries are the selected municipalities and the Ministry of Health. The project, which

started in March 2011, involves implementing EE measures in some 33 municipalities in buildings pre-selected

by the Ministry of Local Government Administration and the EC Liaison Office and handed over to the

contractors for audit. The project is grant funded. Implementation was due to commence in September 2012

and three foreign companies were contracted to carry out the works. However, due to time and budget

constraints, the quality of the energy audit data was limited. Only the overall geometry of buildings and total

investment requirements were evaluated and there was no baseline scenario analysis to facilitate monitoring

and no detailed energy audit reports were prepared. The implementation project has now been put on hold,

while the data collected in the audits is re-assessed.

5. Feasibility Study and Implementation of EE measures in public buildings at municipality level, supported by

KfW/EU/WBIF (€7.5 m). The ‘Implementation of Energy Efficiency Measures in Public Buildings’ project ran

from April 2011 to January 2012. Subject to a successful application to the WBIF/KfW/EU for further funding,

the implementation phase of the project could begin this year and continue over the following 48 months. The

results of the energy audits which were performed by the project auditors show that when the EE measures

are in place and all 30 selected buildings are operating at their planned comfort levels, total annual energy

savings could amount to over €650,000. Moreover, the auditors calculated that because of introducing EE

measures in these 30 public buildings, it would be possible to reduce the total volume of GHG emissions by

more than 3,600 tons of CO2 equivalent/year.

6. In 2012 the MED commissioned a program of 48 energy audits of municipal buildings. The program was

completed in December 2012.

Special measures for public procurement

To meet the requirements of Directive 2006/32/EC in the context of its exemplary role, the public sector must apply at least two of the six eligible energy efficient public procurement measures which are set out in Annex VI of the Directive: (a) use of financial instruments for energy savings, including energy performance contracting; (b) purchase of equipment and vehicles based on lists of energy-efficient product specifications; (c) purchase of equipment that has efficient energy consumption in all modes, including in standby mode; (d) replace or retrofit existing equipment and vehicles with the equipment listed in points (b) and (c); (e) use energy audits and implement the resulting cost-effective recommendations; (f) purchase or rent energy-efficient buildings and replace or retrofit such buildings in order to render them more energy-efficient. Transposition of the EPB Directive will mean that the minister responsible for construction (MESP) will in future regulate in detail the issues concerning the performance of energy audits of buildings, energy performance certification of buildings and the performance of independent controls of reports on energy audits and issued energy certificates.

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In the area of energy efficiency, however, the Law on Public Procurement Act does implicitly allow for energy efficiency to be taken into account when evaluating public tenders (Article 52 states that criteria for awarding a contract can be either the lowest price only or the economically most advantageous tender) but at present there is no accompanying secondary legislation (Administrative Instruction) in place to explain how the Law is to be implemented. Through transposition of the provisions of Directive 2010/30/EU (and succeeding Directives) on labelling of energy and other energy-related products, Kosovo will in time strengthen the obligation to procure energy efficient products. Recommendations for future periods The Kosovo Energy Efficiency Agency is now the focal point for all EE related projects and initiatives. The

Agency is now overseeing and coordinating the following projects:

1. Initial meetings have been held with the Municipality of Prishtina concerning participation in the EU

initiative Covenant of Mayors (CoM). This initiative will be pursued further as it can significantly

contribute to achieving the targets of the ESD and this NEEAP.

2. Promotion of EE measures in households through ‘Eko’ loans financed by KfW (€20 m.) and

implemented by ProCredit Bank and Raiffeisen Bank – on going to 2014. Kosovo is among the partner

countries involved with the German State Development Bank KfW, which provided the ProCredit and

Raiffeisen Banks with a credit loan to finance energy efficiency schemes for the wider population of

Kosovo. To promote the scheme, the banks issued a range of publicity materials, including some

general information relating to EE on their websites.

3. ‘Promoting EE and RES in Kosovo’, technical assistance for capacity building, funded by EU (€1.5 m) –

on-going to 2014. The purpose of this project is to support the relevant Kosovo institutions at central

and local level in enhancing the legal framework and developing policies and action plans to increase

energy efficiency and the use of renewable energy sources. The anticipated results of this project

include the updating, monitoring and evaluation of the National Energy Efficiency Action Plan, the

preparation of municipal energy plans, completion of the Kosovo RES Plan, improved energy planning

capacity at the beneficiary institutions, better cooperation between central and local level in the EE

and RES planning processes and the transposition of EU Directives on the energy performance of

buildings and on renewables into the national legal framework/secondary legislation as required by

the Energy Community Treaty.

4. National Building Energy Efficiency Study for Kosovo was carried out in 2012 with the support of the

World Bank and is to be followed by implementation a program of EE measures in 200 to 250 central

and local government buildings, funded by supported by WB/EC as follows: EE investments in central

government buildings, US$18m.; Pilot EE investment program for municipalities, US$4.5m. (in total,

approximately 16.8 mill. Euro).

5. EBRD is providing €20m for the establishment of a “Regional Energy Efficiency Programme for the

Western Balkans”. The programme is structured as follows:

Window 1: Institutional capacity building/regulatory support and new product development for public sector energy efficiency:

Theme 1: €5m. for ESCO projects (legal and technical), with the objective of supporting

individual local entities (e.g. cities, regions) in implementation of ESCO/EnPC

programmes and individual projects.

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Theme 2: €1m. for general efficiency policy dialogue (tariff, metering, EPBD,

procurement), with the objective of address in market barriers and establishing an

enabling legal framework for effectively translating the NEEAPs and Municipal Energy

Plans, into investment plans and actions on the ground.

Theme 2 has three focus areas:

a) support tariff reforms, smart metering and billing regulations;

b) support the transposition of the Energy Performance f Buildings Directive (EPBD);

and

c) improve, and where necessary develop, public procurement rules relating to energy

efficient equipment.

Window 2: Credit lines for financing of smaller scale sub projects in public and private sector

(including ESCOs), channelled through local participating banks

Window 3: Direct financing for medium-sized renewable energy and energy efficiency measures,

including ESCOs

Below is a summary of proposed activities for successful and effective promotion of energy efficiency,

awareness raising and activation of transformation and sustainable development of energy efficiency market

Activity

Activity 1 – Development of Marketing and Communication Strategy

The strategy has to be developed in order to define the necessary activities for successful awareness raising

and activation of EE market transformation and sustainable development. As part of the strategy development

national media profile has to be analysed and defined, as well as research of the EE market.

Activity 2 - Creation, development and activation of EE web-site

The site has to be informative, educational, interactive and user-friendly. Its content has to be organized

properly in order to enable visitors with different level of technical understanding to find relevant information

for themselves.

Activity 3 - Telephone info-line for EE advices to the citizens

Activation of Free-of-charge telephone line; EE advisors have to be organized, educated and trained for

interactive communication with citizens; Advices must be competent and guarantee precise information to

each citizen for their concrete case.

Activity 4 - EE info-corners and centres

Attractive and easy reachable location for establishment of EE info-corners and centres will be identified and

the centres established; The EE info-corners will be the place where citizens could come to see available EE

technology and ask EE advisors for optimal solution for their concrete case. Also would serve as the point

where educated demand meets with qualified supply.

Activity 5 - Educational course for EE advisors

The course should be organized for the EE advisors who will give advices for citizens through the telephone

info-line, but also as advisors and guides at the EE info-corner and EE info-centre.

Activity 6 - EE awareness survey

EE awareness survey among citizens will be conducted to determine actual awareness and knowledge about

EE. It has to be repeated periodically (on annual basis at least, or even more frequently).

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Activity 7 - National educational EE campaign in media

National educational EE campaign will be developed, produced and broadcasted (advertised) in media; the

campaign should include: television, radio, newspapers and magazines, outdoor advertising and Internet.

Activity 8 - Informative-educational publications Informative-educational publications, such as brochures which could be used by citizens as EE guides, should be developed, designed, printed and disseminated to the citizens. (As we will work closely with our colleagues from UNDP Croatia, the idea is to use 5 of their successful publications: “One ton CO2 Challenge”, “200 EE Tips”, “Green Office – handbook”, “Green Office – workbook” and “Handbook for EE advisors”.)

Activity 9 - EE pool of producers and/or distributors of EE technology, products and providers of services

Identify and gather producers and/or distributors of available EE technology and products, as well as providers

of services, in informal EE Pool is important to activate them in education process by enabling them to present

their technology, but also to motivate them to offer more adequate products at the market and cooperate

with construction sector.

Activity 10 - Comprehensive PR activities

Public Relation (PR) activities should promote results from the pilot projects of implemented EE measures, but

those activities should also deliver public promotion of different stakeholders involved in the process –

politicians, decision makers, opinion makers, experts, construction professionals, producers and distributors,

but also propose interesting content for journalist covering EE and related subjects (i.e. public signings of

National Charter for EE and RES, public openings of various info-points established at local municipalities etc.)

Activity 11 - Cooperation with media and journalists

The cooperation with media and journalists has to be established in order to enable them to cover energy

efficiency more as subject and not only as news, by providing them with necessary information or even

enabling them with education through workshops, presentations, visits to pilot projects locations and

advanced technology fairs and events. The assistance to the journalists and other media professionals could

also be realized by proposing them some attractive media formats for successful communication of EE as

subject.

Activity 12 - Education of children in primary schools and kindergartens

Special tool and format for education of children in primary schools and kindergartens have been developed as

a part of the EE Project in Croatia. The format is called “Think of tomorrow” School Hour, and it consist of a 10

minutes educational animated film projection that serves as a base for interactive discussion with children

about EE and RES within one school hour. The idea is to use this already developed, and proven successful

format, translated and adapted to the local situation).

Activity 13 – Handbook for EE

KEEA is planning to issue a handbook of practical EE measures that can be implemented in the residential and

SME sectors.

During implementation phase of the 2nd

NEEAP, for all the reasons outlined in this section, strong emphasis

will be placed on the exemplary role of public sector and on ensuring a close linkage between the public sector

and the measures described in Chapter 4.3 which deal with the tertiary sector.

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4.9 Ensuring availability of advice and information

One of the tasks being undertaken by a current EU-funded project

3 is to support the establishment of local and

regional energy agencies for promoting EE and RES in the five ‘development regions’ in Kosovo. Activities

under this task aim at promoting the establishment of regional/local energy agencies in the form of NGOs,

funds or organisations of public or private or mixed status that will operate independently of the

municipalities. The establishment of these agencies will be supported by the creation of a communication

platform to facilitate internet networking both amongst themselves and with other similar agencies across the

EU.

The project is also implementing a ‘Communication and Visibility Plan’ to promote the joint work of the project

and the MED/KEEA (project objectives, outputs, activities and events) and to publicise the EU's role and

intentions. Secondly, it aims to promote project activities which provide support to central and local level

Kosovo institutions on enhancing the legal framework and on developing policies and action plans to increase

energy efficiency and the use of renewable energy sources in line with the relevant EU and EnCT policies.

The immediate target group consists of the Ministry of Economic Development (MED) and the 38 Kosovo

municipalities. The project also interacts with the Ministry of Local Government (MLGA), the Ministry of

Environment and Spatial Planning (MESP) and the Ministry of European Integration (MEI). The secondary

target group includes organizations and institutions which may benefit from the project indirectly. In addition,

where possible, the project seeks to inform and educate the wider public, through communication materials.

The main communication and visibility activities include the creation and management of the project web-site

and communication platform and publishing project quarterly newsletters. Newsletters are an important tool

for ensuring visibility of the project and raising awareness about the implementation of national plans on EE

and RES and are distributed by e-mail and also posted on the project web site (in Albanian, Serbian and

English).

The project web-site is being developed in order to communicate effectively with the target groups and

facilitate on-line sharing of the project activities4. It provides a platform for communicating the latest updates

of the activities of the project, supporting awareness raising activities, disseminating information, allowing

access to key references, procedural documents, lists of project stakeholders, news of current and forthcoming

events, various materials (background documents, activity reports, articles, reports, training course materials

etc.) and links to other related governmental bodies, NGOs, etc.

KEEA is planning to develop its own web-side supported by UNDP (see earlier section ‘Recommendations for

future period’, Activity 2).

Feedback that has been received from energy consumers indicates that while there is a good level of

awareness concerning the general benefits of EE and RES, there is:

A lack of impartial and detailed technical information on EE markets and the goods and services they provide.

A lack of surveys on the quality of EE services and products, which means that potential customers are not well positioned to make informed decisions.

3 ‘Promoting EE and RES in Kosovo’, a two year project scheduled to end in June 2014.

4 English: http://eeres-kosovo.org/index.php

Albanian: http://eeres-kosovo.org/shq/

Serbian: http://eeres-kosovo.org/srb/

http://eeres-kosovo.org/index.php

http://eeres-kosovo.org/shq/

http://eeres-kosovo.org/srb/

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In order for the EE market to work well, participants must be fully informed about current and future prices -

including future energy prices - technological options and developments and all other factors that might

influence the economics of a particular investment. Clearly, these conditions can never be fully met in the

energy services market and a number of significant information failures can be identified as inhibiting

investments in energy efficiency: (1) the lack of information, (2) the cost of information, (3) the accuracy of

information, and (4) the ability to use or act upon information.

The solutions could include local market surveys relating to building materials and services, and information on

building materials explaining legal requirements could be published as a catalogue and on the web, with FQAs

and most common solutions. Such catalogues have been developed in Denmark for selected solutions, such as

windows, heat pumps etc. Responsibility for such a scheme could rest with KEEA in cooperation with DOC.

Information should also be made available for the municipal energy offices. In Denmark, for example, an

information office has been established at the Technological Institute for training professionals in how to carry

out installation work. It consists of a section with 3-4 officials and the work is tendered out by the Energy

Agency. A website is operational with information and examples on how to implement energy efficient

measures.

The EE data available on public sector buildings is very limited and there is no data at all relating to the

residential and private building stock. There is no dependable data base of energy consumption for the

residential/public/private building sectors for each energy service (space heating, space cooling, lighting,

cooking, and water heating and electrical appliances) that would be sufficient to support the production of a

reliable energy balance to be used for the evaluation of EE potential. Poor quality of data leads to poor

decision making which in turn results in ineffective investments.

The KEEA is starting work on the establishment of an energy efficiency database to define and then to

implement an on-going program of data collection, with support from other participants in the market, such as

the commercial banks who provide loans for the implementation of EE measures.

4.10 Obligations of energy companies to promote energy savings in end-use consumption

In cases where consumers do not pay for their energy consumption, the incentive to undertake energy

efficiency measures is absent, except as a by-product of measures to enhance comfort in buildings.

Commercial losses in Kosovo have been reduced as a result of various actions taken by KEK, but are still high.

According to KEK (June 2012), 14% of Total Energy is “unaccounted for” (commercial losses) and 9% of energy

bills remain unpaid.

KEK, ERO and the newly privatized KEDS are working to improve the situation and there is an initiative in place

to acquire and install 100,000 electronic meters in 2012 in order to replace existing mechanical meters, which

are relatively easy to tamper with.

The price of electricity is based upon an estimate of the unit price of the tariff typically applied to public

buildings. Based on the Energy Strategy (2009-2018) and KEK and KOSTT action plans, there is a five year plan

(2011-2015) to achieve fully cost-reflective electricity tariffs for all categories of consumer.

4.11 Market for energy services

The principal challenge facing the energy efficiency sector in Kosovo today is to develop market driven

financing mechanisms that will incentivize energy users from across the entire building stock of Kosovo to

invest in energy efficiency measures. Reliance on government supported schemes - and therefore pressure on

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public funds – will thereby be reduced and the government’s role can then be focused on developing legal and

regulatory frameworks that facilitate these market mechanisms. An important pre-requisite for a successful EE

implementation program is the development of an environment that facilitates the growth of a local EE market

and this objective has to be supported through the delivery of a broad range of awareness raising and capacity

building activities.

SMEs in Kosovo tend to operate individually and there are not many trade or representative organizations.

They focus on taking advantage of immediate opportunities and do not to work within the framework

developed by the municipality, NGOs and international donors, except on an ad hoc basis when there is a

perceived need.

The fragmented nature of the private sector prevents the development of strong private-public partnerships.

Although credit lines and funds are available from IFIs via the banks, SMEs show little interest in the

opportunities available as business development is their primary concern. Awareness of EE is not sufficient to

make it a high priority and the commercial sector has only taken up less than 20% of the loans available for EE

projects.

This situation results in the lack of a transparent and competitive EE market, with good quality (and preferably

local) suppliers of EE related goods and services (equipment, materials, installation, repair, maintenance,

energy auditing, commercial forestry, fuel efficient ovens, recycling, etc.). In Kosovo the EE industry is only

slowly developing and does not yet display the characteristics associated with a vibrant and dynamic market.

The enhancement of commercial and professional expertise to implement EE measures should be encouraged

by the KEEA and the Chambers of Commerce to support local businesses in identifying and developing EE

market capabilities. An Energy Users forum at which SMEs can discuss EE and other related issues should be

established. The forum could offer training in energy management and disseminate examples of best practice.

Targeted campaigns could be launched, underlining the economic benefits of EE measures for small businesses

and a website with good practice examples developed.

Another significant issue is the absence of ESCOs and ESCO based schemes from the local market, although

this is being addressed by the EBRD’s Regional Energy Efficiency Programme For The Western Balkans,

specifically ‘Theme 1: ESCO development’.

The main benefit of ESCOs is that they finance EE investments, thus obviating the need for their clients to

borrow up-front capital, as the ESCO recovers its costs by retaining a proportion of the client’s energy savings

that result from the EE investment undertaken. In the absence of ESCOs, energy consumers wishing to invest

in EE have to borrow the necessary funds, which not all consumers are willing or able to do.

ESCO companies often develop out of other types of businesses that operate in the EE sector, as they become

more comfortable with EE market. Hence it is necessary for the Government to create confidence in the future

of this market. This requires the Government to take various proactive measures to demonstrate its

commitment to EE, such as creating demand by funding investment programs, facilitating the development of

affordable finance packages, removing legal barriers in areas such as public procurement (where least cost

bidders have to be preferred) and allowing credit for bids which deliver environmental benefits, allowing

municipalities to retain at least some of the energy savings they make, supporting the development of

Monitoring and Verification programs and so on.

4.12 Strategy for the increase of nearly-zero energy buildings

The formulation of a strategy that will deliver an increase in the number of nearly-zero energy buildings is an

important requirement of the Directive on the Energy Performance of Buildings (2010/31/EU). Kosovo is

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already promoting the renovation of buildings (especially public buildings, with a view to developing the lead

role of the public sector) in order to meet the energy standard of "nearly zero energy buildings". To further

fulfil the requirements of the EPBD (Article 9), specific targets for increasing the number of nearly zero energy

buildings will be set as part of the national plan for increasing the number of such buildings. These activities

will be initiated by (or in cooperation with) the Ministry of Environment and Spatial Planning, which is the

ministry responsible for EPBD implementation. In parallel, development of the legal framework is envisaged,

including the development of new standards for new buildings, as is required by the EPBD.

The KEEA has prepared an outline proposal for a nearly-zero energy buildings.

http://mzhe.rks-gov.net/repository/docs/Project_Document-EE_near_zero_Energy_House_-_6.pdf

The Green School in Pristina was opened in May 2011, as the result of a cooperation between USAID’s ”Small

Infrastructure for Education and Support for School" project which seeks to improve the quality of education in

schools throughout Kosovo the municipality Department of Education. The Green School is a pilot project

using green technology and high-quality energy saving materials. Unique aspects of this school include: a

geothermal and solar heating system, a cooling system, a thermal façade, windows and doors, and a “Green

Roof” which will provide insulation. It is the largest project implemented under the USAID education

infrastructure programs. The school will serve as a model of sustainability and a learning tool for both the

students that will attend it in the coming months as well as the Kosovo’s graduate students who will be

monitoring its efficiency.

4.13 Alternative measures for heating and air conditioning systems

The most important law in force regarding energy efficiency is the Law on Energy Efficiency, which attempts to

define the role and powers of institutions and is essential for the creation of the institutional basis for energy

efficiency. However, the Law on Energy Efficiency concentrates on tasks required for the elaboration of Energy

Efficiency Plans at national and local levels, implementation, reporting and monitoring. Delegations for

transposition of the other requirements that are needed for implementation of energy efficiency are very

general. For instance Article 12 “On Energy Auditing” says “The Government shall approve the necessary

secondary legislation on energy auditing” and another deficiency is that the Law does not foresee auditing of

heating and air conditioning systems, which is a direct requirement of Directive 2010/31/EU (EPBD) and may

be link with implementation of the audit scheme required by Directive 2006/32/EC and new Energy Efficiency

Directive 2012/27/EU”.

It is planned that the Law on Energy Efficiency will be revised in 2013 to bring it into line with the requirements

of Directive 2006/32/EC on energy end-use efficiency and energy services and, when appropriate, the new

Energy Efficiency Directive (2012/27/EU) which was formally adopted in October 2012 and which amends and

repeals the Cogeneration Directive (2004/8/EC) and the Energy Services Directive (2006/32/EC).

The World Bank’s plan for the new Kosovo Power Project envisages rehabilitation of Kosovo B power plant to

make it compliant with EU standards and converting Kosovo B into a combined heat and power plant (CHP)

which provide heat for the Termokos district heating system in Prishtina. Amongst the overall objectives of the

project are to reduce fuel consumption at Termokos, to reduce overall harmful emissions and improve the air

quality for the citizens of Prishtina, to improve heating energy security and to reduce the need for electricity

imports.

http://mzhe.rks-gov.net/repository/docs/Project_Document-EE_near_zero_Energy_House_-_6.pdf

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4.14 Measures to support EPBD implementation

Directive 2010/31/EU sets minimum requirements for the energy performance of buildings and building

elements. Newly constructed buildings and buildings which have undergone major renovation must have

energy certificates, as must buildings which are being rented or sold. Therefore the energy certification

process must be integrated with the process of obtaining consents for the rental or sale of property.

Transposition of this Directive must be achieved by adopting a Law on Energy Performance of Buildings (EPB).

By revising the existing Law on Construction, the Government of Kosovo accepted the obligation to formalize

the construction process - but in doing so it did not set any clear requirements for the transposition of the

Directive on the Energy Performance of Buildings within the new system and the division of responsibilities

between Ministries in the field of energy efficiency is not sufficiently clear.

The proposed amendment of the Law on Construction (Law No.04/L-110) provides a legal framework for the

construction process and anticipates that most of its measures, obligations and objectives are to be regulated

by secondary legislation rather than being specified within the primary legislation. As the secondary legislation

has not yet come into force, the legal framework is incomplete.

In progress

All seven sub-normative acts required by the Law on Construction (6 AIs listed below plus the construction

code) are in various stages of completion, and will be completed by July 2013. Below is additional information

on the status of the Administrative Instructions under the Law on Construction.

Administrative Instruction Status

Construction Permit Fees Adopted by 19 November 2012

Construction Permitting Procedures Adopted by MESP on 04 June 2013.

Categories of Construction Works Adopted by MESP on 22 May 2013.

Construction Works for which no Construction Permit is Required

Adopted by MESP on 22 May 2013.

Contents of the Construction Diary Under development

Construction Inspection Procedures Under development

Improvements in the energy performance of buildings may require other legislative and/or organizational

change in the institutional. Specifically the Legislative Program 2013, approved in December 2012 and updated

in February and March 2013, requires the submission of Draft Amendments to the Law on Energy Efficiency so

that it fully transposes the Energy Services Directive 2006/32/EC.

Similarly, the Draft Law on Treating Illegal Construction is with the Parliamentary Commission and is expected

to be adopted by Parliament by the end of this year.

Electricity and heat tariffs in Kosovo are not yet fully cost-reflective, some tariffs are subsidized and some

inefficient tariff structures still exist. ERO has stated that all tariffs will be fully cost-reflective by 2017, thereby

making investment in EE measures more attractive.

The current high levels of commercial losses and non-payment of bills will reduce over the next few years with

the implementation of KEDS metering replacement program, which also strengthen the incentives for

households and businesses to invest in EE measures.

Finally, Kosovo’s long-term NEEAP sets targets and identifies measures for energy savings up to 2018.

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Recommendations for transposition

Kosovo has, in effect, already started the process of transposing Directive 2010/31/EU by making references to

it in the Law of the Republic of Kosovo on Construction, which was adopted on 31 May 2012. The Law foresees

that implementation of energy efficiency measures is one of the objectives of the Unified Construction Code of

the Republic of Kosovo. Building development based on efficiency standards is now required by the Law on

Construction, where each user of the building under development is obliged to obtain a utilization certificate,

which sets out the required energy efficiency measures. However, as Kosovo has not yet implemented a

system for building energy certification in practice, there only two related regulations that exist at the

moment: (1) the Technical Regulation on thermal energy saving and thermal protection in buildings and (2) the

Regulation on Establishment and functioning of the Commission for Certification of Energy Auditors and

Managers.

The option to transpose Directive 2010/31/EU by secondary legislation might not be considered the best

option and all activities would clearly have to be very carefully coordinated. At the moment, the proposed

content of the draft Unified Construction Code covers only two out of the six issues that need to be regulated.

The alternative option of transposing the Directive by drafting a Law could be more efficient, since a Law

would establish a framework for concentrated action, mobilize the government to achieve the various new

tasks that must be fulfilled and give a clear signal to the construction sector and to the general public about

the new requirements and the new opportunities that exist. The adoption of a Law would also give a positive

signal to the EU that Kosovo is not just transposing the minimum requirements, but is fully aware of the

further implementation of directive. A third option might be to amend the existing laws, but in Kosovo`s case

amending the relevant laws that are currently in force would be more time-consuming than drafting a new

Law.

Creating inventories, data bases and research and analysis on data availability, as well as development of data

models and calculation methodologies are not permanent duties of MESP Department of Construction. This

requires highly qualified experienced experts. The task required by Article 5, Annex 3 of the Directive, to

establish an “Inventory of building stock, definition of reference buildings, defining energy performance

measures, cost effectiveness estimation for different measures and different types of buildings, drafting a

method for calculation of buildings energy performance (including software) and methodology for calculation

of cost-optimal levels of energy performance requirements for buildings and building elements“ can only be

undertaken if appropriate technical assistance is provided to the MESP, as the Department of Construction is

not equipped with all the necessary competences and expertise needed to carry out this tasks. The most

effective option for implementation of the energy certification of buildings in Kosovo is to deliver technical

assistance projects for all the above mentioned tasks, as they are all closely interconnected and need to be

effectively coordinated.

Accordingly, a request for funding ‘Transposition of Directive 2010/31/EU for the Energy Performance of

Buildings’ under the EBRD ‘Theme Two’ energy efficiency policy dialogue was prepared and submitted jointly

by MED and MESP in May 2013.

In order to satisfy requirements of reporting under Article 10 of EPBD (by 30 June 2013 to ECS) as required by

Article 10(2) of Directive 2010/31/EU, following measures mentioned in NEEAP are listed also here:

• Government Decision on the installation of efficient light bulbs in public buildings, • Measures for residential sector R.1. Improving EE through implementation of energy efficiency measures in residential buildings

R.2. Improving EE through implementation of energy efficiency measures in the residential sector

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R.4. Improving EE through continuing information campaigns on energy efficiency

• Measures for tertiary sector


S2 Improving EE through renovation of governmental buildings




• The GIZ project “Modernization of Municipal Services”

• Installation of efficient public lightning in public facilities, financed by MEM/MED and GIZ

• Study and Implementation of EE measures in Municipalities

• Feasibility Study and Implementation of EE measures in public buildings at municipality level

• Program of 48 energy audits of municipal buildings

• Promotion of EE measures in households through ‘Eko’ loans

• National Building Energy Efficiency Study for Kosovo

• Activities to ensure availability of advice and information”

5 . Establishment of Competent Bodies and Assigned Organizations

The Ministry of Economic Development is the lead ministry in the field of energy sector development, energy

efficiency policy planning and implementation supervision. It has also a leading role in development and

implementation of economic sector structural development policy, industrial policy development and other

policies in those areas specified in the relevant legislation.

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The KEEA will be responsible for monitoring of the 2nd NEEAP implementation progress. It has already

established an energy efficiency data base for collection and analysis of information on project based energy

savings achieved. Development of energy efficiency statistics has been identified as the highest priority activity

that will be carried out by all the parties involved. Several other line ministries have been actively involved in

the 2nd NEEAP preparation process and will have an important role in ensuring the success of its

implementation.

The Ministry of Infrastructure will be responsible for implementation of policies related to transport sector

development and promotion of energy efficiency in the transport sector.

The Ministry of Environment and Spatial Planning will be responsible for activities related to transposition of

the EPBD and its implementation. The KEEA is responsible for reporting on implementation of the EPBD.

nd National Energy Efficiency Action Plan (NEEAP) of Kosovomzhe-ks.net/repository/docs/Kosovo_2nd_NEEAP... · The KEEA, as the main institution responsible for development and implementation

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