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ZREA oversees the refurbishment of multi-residential buildings to improve energy efficiency and reduce emissions 

ZREA logoIn line with the 2010 Energy Performance in Buildings Directive, the Zemgale Regional Energy Agency (ZREA) is taking an active role in the promotion of the refurbishment of multi-residential buildings. The aim is to improve the energy efficiency of the building stock and significantly reduce the associated CO2 emissions.

ZREA was created with the financial support of Intelligent Energy – Europe.

Multi-residential buildings: the primary energy consumer in Latvia

Construction of multi-residential buildings in LatviaNearly 2 out of every 3 Latvians live in multi-residential buildings. In certain parts of the country such buildings were constructed primarily in the decades after the Second World War, as a significant part of the urban infrastructure had been damaged. In fact, more than 90% of multi-residential buildings were raised between 1948 and 1989.

Due to their age and inefficient construction, multi-residential buildings are responsible for more than 60% of total energy consumption, including electricity and heating. In the Zemgale region, in particular, the residential building sector was the primary source of CO2 with a total of 115,000 tonnes in 2009.

Raising awareness for the need to renovate old buildings

ZREA awareness raising campaignGiven the significant environmental impact of energy inefficient building stock and as energy prices have been rising, ZREA has developed a comprehensive initiative for refurbishing multi-residential buildings, involving home owners, public authorities and housing companies.

The first step in this process is perhaps the most challenging one. Home owners need to be convinced of the importance of refurbishing their buildings. For this reason, ZREA has launched extensive communication and information campaigns, including both seminars and one-to-one consultations with owners.

The short- and long-term benefits of refurbishments are promoted, highlighting the development of a better living environment, an increase in property value and energy savings of up to 40%, including a significant cut in energy bills.

EU funding key incentive for large-scale energy renovations

The co-financing opportunity provided by the government is a significant incentive for owners to launch a renovation. Funding comes from the National Operational Programme for Infrastructure and Services that is supported by the European Regional Development Fund.

Key figuresIn order to have access to funding, individual home owners or groups represented by housing companies prepare and submit detailed applications, stating the condition of the building, the extent of the required renovation and the foreseen budget. ZREA provides technical assistance throughout the whole process, from conducting the necessary energy audits and on-site inspections to outlining the technical details of the renovation, collecting the requested documentation and helping to draft the funding application.

The co-financing rate offered by the Programme is 50%, with a maximum of €50 per m2 of heated floor area.

The remaining 50% is contributed by the owners themselves and is commonly covered by bank loans, usually taken by the housing companies that are contracted by the owners to carry out the renovations. The loans typically have a payback period of 8 to 12 years.

According to ZREA, the monthly loan payment of approximately €45 is almost entirely outbalanced by the energy bill savings due to enhanced insulation and heating distribution.

ZREA flow chart

Refurbished building in IecavaThe first refurbished multi-residential building in Iecava, before the renovation (left) and after (right)

Encouraging outcomes generate future targets

Building refurbished by ZREAThis streamlined and customised approach is becoming more and more popular in the Zemgale region. Between 2009 and 2011, more than 50 applications for the refurbishment of multi-residential buildings have been approved by the Latvia Investment and Development Agency (LIAA).

Although the initiative is at an early stage, several multi-residential buildings have been fully refurbished: four in the city of Jeglava, three in Jekabpils, one in Iecava county and a few more across the region. The projects for the remaining buildings are currently at different stages of implementation.

As the Zemgale region, where ZREA is active, is composed of 22 municipalities, the Agency’s target is to extend the initiative to all of them by supporting the refurbishment of up to four multi-residential buildings in each municipality.

Significant energy savings could be made in the Latvian building sector. Taking into account the 2010 EPBD as well as the Energy Efficiency Plan and proposed Directive, ZREA aims to help renovate half of the multi-residential buildings in the region by 2020. It is estimated that such an action would generate energy savings of 40% and would reduce CO2 emissions by 12,800 tones.

Photo: One of the refurbished buildings in Jelgava, before, during and after the renovation

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