Croatia’s first local energy revolving fund is in Koprivnica!

When it comes to energy efficiency and innovative financing solutions, the city of Koprivnica is one the leading local authorities in Croatia. Together with its strategic partner Regional Energy Agency North (REA North), the municipality explored the opportunity to set up a local energy revolving fund that would finance its sustainable energy actions in the public sector.

Just before the Christmas break, the City Council unanimously adopted the proposal for establishing an energy revolving fund that is operating since January 2016. The initial size of the fund – seed money – is €20,000 but the city already plans to attract external co-financing sources and additional funds to boost the fund in the second half of 2016.

The fund will finance the implementation of energy efficiency projects that aim at a greater reduction in energy use and significant financial savings resulting from lower energy bills and maintenance costs. The fund is also expected to improve the way energy investments are planned, designed and implemented (e.g. preparation or procurement of energy-related documentation), to speed up and simplify decision-making as regards investments, and bring financial benefits.

Basic operational scheme of the revolving fund:

The city and REA North took several key measures before creating the fund, including:

• Reviewing the city’s administrative organisation including roles and responsibilities assigned to different departments and to the regional energy agency. The objective was to identify the actors who could be responsible for the operation of the fund. The city and the energy agency both have specific competencies and experience that are necessary to the successful operation of the fund. However, it was concluded that none of the sides could develop, implement and operate the fund on its own.
• Drafting a basic operational scheme and a business model of the fund.
• Analysing the actual energy consumption of public buildings. Existing documents and data were obtained from external entities on the one hand and from the information system for sustainable energy management (mandatory for all cities in Croatia) on the other hand.
• Developing an action plan that included detailed analysis of seven buildings that have the biggest potential for energy savings. The analysis focused on water, heating, cooling, ventilation and electricity. It contains a description of the current status of the building components and technologies, energy consumption, actions that need to be undertaken and their financial characteristics.

The business model of the fund describes organisational, management and financing aspects, its goals and expected benefits.