ENERGY EFFICIENCY IN THE RESIDENTIAL SECTOR - POLAND. A Poverty and Social Impact Analysis 2011

Transcription

1 ENERGY EFFICIENCY IN THE RESIDENTIAL SECTOR - POLAND A Poverty and Social Impact Analysis 2011

2 Structure of Presentation Energy Efficiency Reforms in Poland PSIA Objectives and Methods PSIA Findings and Follow-Up

3 Energy Efficiency Measures of the Government White Certificates Program Building Certificates Program (2009) Thermo-Modernization Fund (1998) World Bank DPL supports legislation for White Certificates program, enforcement measures for building certificates program, and additional financing for TM Fund.

4 PSIA Objectives and Methods Assess affordability and access to energy efficiency financing for low-income groups; Examine impacts of building certificates program on the poor; Methods: Focus groups and interviews with low-income owners and tenants; municipal, TM Fund, and building administrators Assess impacts of White Certificates program on household budgets expected energy tariff increase of 1-2%; Methods: quantitative research based on Household Budget Survey data

5 Dwelling stock in Poland, 2009 (building types) Co-operatives management structure of residential buildings created during socialist period; residents have little say in board decisions; 5% Co-operatives Landlords communities homeowner associations, created either when a new building is built, or when the municipality sells a number of apartments in its building to private owners. 18% 34% 43% Private Municipal Municipal or social housing cityowned buildings or apartments, rented to low-income residents; Other

6 Locations for qualitative research: Warsaw (1.5 million inhabitants) Siedlice (small town, 78,000 inhabitants) Chalin (rural, 700 inhabitants)

7 Incentives and Affordability for Energy Efficiency Investments Most energy efficiency investments are done at individual/household level. Building-level investments are challenging due to : Mixed socio-economic and demographic background in buildings; owners vs. tenants. Elderly residents and tenants are much less inclined to invest. Governance and accountability constraints - disconnect between residents and management boards especially in the case of co-operatives It is costly to access government co-financing (e.g. TM Fund)

8 Constraints to Accessing Thermo- Modernization Fund Credit Requirement strong reluctance to taking loans (mistrust for commercial banks, fear of losing one s house); lack of credit capacity (uncertain income); higher cost of investment (reluctance for long-term commitment among older groups); Audit Complexity of investment (no part-investment is possible) Additional cost (it is not covered by the bonus) 20 % Bonus not enough to justify the cost

9 Constraints to using EE financing It s an investment for a dozen years. For generations. And I don t know if I ll keep living there. (Tenant, Siedlce) I don t want to have anything to do with banks. I ll live off what I earn, they just cheat people. (Older owner, Chalin) People can be convinced if you tell them precisely how much it ll cost, how much they ll have to pay and how much this will save them. (Community board, Siedlce)

10 Impact of the Buildings Certificate Program The building certificate could have a negative impact on low income groups if properly enforced (necessitating extra costs); however The study showed that the program is not functioning as intended, taken as a formality by all sides in real estate transactions.

11 7 conditions to enable low-income groups to invest in Energy Efficiency 1. More detailed public information on building certificates and thermo modernization 2. Support with audit costs 3. No credit obligation 4. Flexible renovation options

12 7 conditions to enable low-income groups to invest in Energy Efficiency 5. Detailed information on the costs and economic benefits of the investments as well as the timeframe for generating savings; 6. Transparency in information access; Better communication between residents and building management; 7. Finding a trusted and good quality contractor

13 Conclusions and Next Steps Government mechanisms to promote residential energy efficiency investments benefit mostly higher-income groups; PSIA has identified specific constraints for the poor and pointed to potential solutions yet Specific policies for the poor need to be examined in more detailed and put for discussion with the Government.

14 PSIA Follow-Up Follow-up PSIA work needed to move from problems to solutions for Expanding the reach of EE financing to a wider group of beneficiaries. Policy mechanisms to be explored in follow-up work with Government and relevant institutes: Governance and accountability arrangements for cooperatives (43% of building stock) allowing them to benefit form EE financing; Targeted support with audit and transaction costs to poor and elderly groups; Greater flexibility for investments to be co-financed.