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Institutions under the authority of the Government of Serbia, the Autonomous Province of Vojvodina, or local self-government units (LSUs) can respond to the call. For at least five selected buildings, UNDP will develop the design documentation necessary for renovations after the ESCO public-private partnership model.
ESCO, i.e., the energy services contract model, enables privately owned companies to invest their own or loaned funds in realisation of works that reduce energy consumption in public buildings. As a result of the improved energy efficiency of the renovated public building, the private company receives a return on its investment and generates a profit within the agreed-upon time frame. According to the analysis, these savings may amount to more than 50%. In this way, the public sector does not have to invest its own resources into the improvement of energy-efficiency measures, and after the contract with the ESCO company has expired, it can also save funds.
ESCO is recognised within the European Union as a way to mobilise private capital in the energy transition, as well as an opportunity to open new, green jobs.
The interested institutions and LSUs can find more details and apply to this Public Call at: https://zelena-agenda.euzatebe.rs/rs/konkursi.
This Public Call has been issued as a part of the “EU for Green Agenda in Serbia” project, implemented by the United Nations Development Programme with the technical and financial support of the European Union and in partnership with the Ministry of Environmental Protection, and in cooperation with the Embassy of Sweden and the European Investment Bank (EIB), where additional funding has been provided by the governments of Sweden, Switzerland and Serbia.
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The Government of the Republic of Moldova, with support of development partners, allocated record amounts for covering compensations of the thermal energy, electricity, and natural gas bills. This winter alone, the Energy Poverty Reduction Fund, set up with the support of the European Union, the Slovak Government and UNDP, amounts to 5 billion lei. Without this support, the number of people living in energy poverty would have been much higher.
However, subsidizing permanently energy bills is not feasible in the long run and therefore the EU and UNDP supports efforts to reduce energy consumption and expenditures, respectively.
How can we reduce energy consumption and, respectively, the costs burdening people?
One of the mechanisms put into practice by UNDP, with the support of the EU, is a behavioral experiment, through which households with above-average energy consumption were informed about their excess consumption, about the most accessible ways to save energy and were encouraged to improve consumption habits. After similar letters were sent to consumers in the center and south of the country in the spring of last year, between June and November 2022 over 140 thousand household consumers in the north of the country, clients of FEE Nord electric utility company, received behavioral letters. More, the bills were adjusted to capture more useful information for reducing consumption.
The monthly consumption of households that received letters was compared with similar data of those that did not receive letters in the respective month. The purpose of this experiment was to confirm that households that receive behavioral letters decrease their consumption, compared to households that do not receive such letters, because there was an increase in the price of electricity in that month and the impact of tariff increases on behavior had to be excluded.
Savings grow with bill amount
The experiment demonstrated that households can be positively influenced by behavioral letters, with most managing to reduce their consumption by as much as 22%, after receiving the letters.
The method of behavioral letters proved to have a notable effect on households that consume more energy (over 200kWh/month), being the most motivated, through letters, to reduce electricity consumption. At the same time, households with an average consumption (below 200kWh/month) were less sensitive to this tool, saving between 2 and 8% of electricity.
The greatest impact of motivational letters was observed in the first three months (10-20%), after that the savings decreased below 10% and, in some cases, even were contained.
The behavioral experiment was conducted in the framework of the “Addressing the impacts of the energy crisis in the Republic of Moldova” programme, financed by the European Union and implemented by UNDP Moldova.
With a budget of 10 million euros allocated by the European Union, the “Addressing the impacts of the energy crisis in the Republic of Moldova” programme supported the creation of the compensatii.gov.md platform and will launch a programme to replace old household appliances with new and energy efficient ones, will fund the installation of photovoltaic panels in households and a few hospitals, as well as the change of central heating systems in several blocks of flats with more efficient horizontal distribution systems.
In addition, the programme provides support for the transposition of the EU’s Third Energy Package into both primary and secondary legislation, as well as the transposition of a number of Directives and Regulations of the Clean Energy for All Europeans package, which address the energy performance of buildings, renewable energy sources, energy efficiency, good governance and electricity market design.
The way forward
The authors of the behavioral experiment recommend sending motivational letters twice a year to households with the highest consumption.
The households are to be selected based on the consumption analysis of the last six months and the letters are to be sent by email, to reduce costs.
Outreach letters may be more effective if they provide case studies. Thus, the authors of the experiment recommend the use of real examples, which describe the investments made by a certain person, the monthly savings, and the return of investment. The emails need to include links to useful websites, so that households receiving the letters can learn more about the possible savings. At the same time, it is important that the Government guarantees or partially subsidizes the interest rate for loans subcontracted by households for investments aimed at reducing energy consumption.
It is also recommended to create a one-stop information desk to guide households that want to reduce their energy consumption. No need for office and public servants. It could be a site with information, useful external links, and an online chat.
Replication of Robert Cialdini’s experiment
The behavioral experiment largely repeats the results obtained by the psychologist and author of business books Robert Cialdini. After identifying simple actions that lead to reduced energy consumption, he defined four sets of messages, targeting:
- environmental protection (protects the environment, conserving energy);
- social responsibility (contributes to energy conservation for future generations);
- self-interest (saves money by conserving energy);
- descriptive norms (do like your neighbors who consume less energy).
At the end of the experiment, it was concluded that three out of four groups of consumers spent even more energy in the following period, except for those who were encouraged to follow their neighbors with lower consumption.
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Statistics on energy and water consumption will be collected based on monthly invoices and analyzed for further development of energy efficiency measures that can be implemented by institution managements. The data collection process is supported by the Ministry of Energy and the Energy Efficiency Agency.
“Energy management is an acute need for public institutions. Inefficient use of electricity, gas or water means a waste of public money that could have been invested in development and improvement projects. The problem has become more obvious in the context of the tariff growth on electricity, thermal energy, and natural gas, when funds needed to pay the bills far exceeded the initially planned resources. Energy efficiency measures need to be applied and collecting and analyzing data on resource consumption is a first step in this regard,” says Victor Parlicov, Minister of Energy.
“We are delighted that the Energy Management Information System (EMIS), piloted with support of UNDP and GEF in 17 public institutions from Chișinău, is now being expanded by Green City Lab. The data collected through EMIS will contribute to improve understanding on the real consumption of energy and inform solutions that generate savings and alleviate financial pressure on institutions,” mentions Andrea Cuzyova, UNDP Deputy Resident Representative to the Republic of Moldova.
Within the project, 300 buildings with the lowest energy efficiency will benefit from a free energy audit and energy management services, including the development of a specific action plan to reduce their energy and water consumption and, respectively, their bill payments.
“Old systems, but also inefficient energy management leads to resource waste. For instance, there are cases of buildings with similar technical parameters and purpose using different amounts of energy or water. The conclusions are obvious: no thermal insulation, improper use of electronic equipment, or lights not being switched off in rooms where no one is working there. If thermal insulation requires financing, then changing human behavior does not. By cultivating appropriate behavior, we could reduce consumption by up to 15%,” says Irina Apostol, EMIS developer at Green City Lab Moldova.
The data collection and analysis process has already been launched and experts are working to identify energy efficiency measures that can be applied to public buildings.
“The time has come to treat energy management of buildings as an absolute must, like how financial management is for businesses. We will continue to work in this direction by institutionalizing energy management processes that should become mandatory, at least for public sector buildings. It is another brick in the foundation of energy efficiency and security of the country,” notes Adrian Lupusor, Executive Director of Expert-Grup.
The Energy Management Information System was developed and launched by UNDP in Croatia in 2006, where it was replicated in over 13,000 public buildings. Later, the EMIS model was adapted by other countries, including Serbia and Bosnia and Herzegovina.
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Inspectors and civil servants were trained on the rules for placing energy products on the market and how to verify their compliance, with the support of the “Addressing the impacts of the energy crisis in the Republic of Moldova” programme, financed by the European Union and implemented by UNDP Moldova.
The European Union (EU) directives regarding the ecological design of products with an energy impact, as well as the labeling of products placed on the market, were transposed in 2014 into the legislation of the Republic of Moldova. In the near future, they will be updated to take into account the new European regulations. The Ecodesign Directive stimulates the market by banning the least efficient products, while the Energy Labeling Directive encourages consumers to buy more energy efficient products by informing them of their energy consumption via a label.
“Through the regulations related to ecological design and energy labeling, product quality is conditioned and the competitiveness of these industries is stimulated. Technologies that do not meet the performance criteria have left the market, making way for more efficient products. For the Republic of Moldova, these regulations are important because they will allow the reduction of energy consumption in the residential sector, responsible for about half of the final energy consumption”, said Carolina Novac, Secretary of State at the Ministry of Energy.
At the same time, these regulations will contribute to achieving the goal of decarbonization of the economy of the Republic of Moldova by 2050.
With a budget of €10 million allocated by the European Union, the “Addressing the impacts of the energy crisis in the Republic of Moldova” programme, implemented by UNDP, supported the creation of the compensatii.gov.md platform and will launch a campaign to replace old household appliances with new energy efficient ones. The programme finances the installation of photovoltaic panels in households and a few hospitals, as well as the change of central heating systems in several blocks to much more efficient horizontal distribution systems.
In addition, the programme provides support for the transposition of the EU’s Third Energy Package into both primary and secondary legislation, as well as the transposition of a number of Directives and Regulations of the Clean Energy for All Europeans package, which address the performance energy efficiency of buildings, renewable energy sources, energy efficiency, good governance and electricity market design.
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The authors of the study note that this practice would reduce the financial burden on public consumers and would allow entrepreneurs to more effectively plan their production process and a uniform distribution of income throughout the year. In addition, biofuel producers are open to keep the purchased biofuel in their own warehouses and deliver it during the heating season.
According to the data of the National Bureau of Statistics, the average annual consumption of solid biofuels in the last three years is 25.3 thousand tons. This consumption is ensured by at least 265 public institutions, which have thermal power plants on solid biofuels, with a total capacity of 57 MW, and at least 1,200 households that have power plants on solid biofuels, with a total installed capacity of more than 26 MW.
The production volume of solid biofuels varies between 21.7 thousand tons in 2021 and 30.6 thousand tons in 2020, the average for the analysed period being 25.5 thousand tons. Together with the average annual imports of 4,300 tons of briquettes and pellets, the capacity of the solid biofuel market is almost 30 thousand tons annually. Thus, the authors of the study conclude that the demand for solid biofuels is covered by the supply, and the market is balanced. If all consumers, both domestic and public, used biomass as the primary fuel for heating, Moldova could save about 20 million dollars on natural gas. This money would remain in the country, for the development of local producers, taxes, etc.
With a budget of 10 million euros allocated by the European Union, the “Addressing the impacts of the energy crisis in the Republic of Moldova” programme, implemented by UNDP, supported the creation of the compensatii.gov.md platform and will launch a campaign to replace old household appliances with new energy efficient onessi sa .
The programme finances the installation of photovoltaic panels in households and a few hospitals, as well as the change of central heating systems in several blocks to much more efficient horizontal distribution systems.
In addition, the programme provides support for the transposition of the EU’s Third Energy Package into both primary and secondary legislation, as well as the transposition of a number of Directives and Regulations of the Clean Energy for All Europeans package, which address the performance energy efficiency of buildings, renewable energy sources, energy efficiency, good governance and electricity market design.
]]>1[] All references to Kosovo in this document shall be understood in the context of UN Security Council Resolution 1244 (1999).
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1[] All references to Kosovo in this document shall be understood in the context of UN Security Council Resolution 1244 (1999).
]]>1[] All references to Kosovo in this document shall be understood in the context of UN Security Council Resolution 1244 (1999).
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