the country programme of albania under the global solar water heating market ... · 2019-11-04 ·...

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The Country Programme of Albania under the Global Solar Water Heating Market

Transformation and Strengthening Initiative

CLIMATEACTION

The Country Programme of Albania under the Global Solar Water Heating Market

Transformation and Strengthening Initiative

This document has been prepared within the Project “The Country Programme of Albania

under the Global Solar Water Heating Market Transformation and Strengthening Initiative“,

implemented by the Ministry of Energy and Industry in cooperation with the Ministry of

Environment and the United Nations Development Program (UNDP), with the financial support

of the Global Environment Facility (GEF), Government of Albania (through the Ministry of Energy

and Industry and the Ministry of Environment) and the UNDP.

TIRANA, MARCH 2017

BEST PracTicE from alBanian Solar WaTEr HEaTing ProjEcT

coordinaTEd By:Mirela KAMBERI, Team Leader, Project Coordinator, UNDP Climate Change Programme

lEad auTHorS:Josef BUCHINGER, Andreas KARNER, Mirela KAMBERI, Dritan PROFKA

conTriBuTing auTHorS: Adrian DABULLA, Besim ISLAMI, Zija KAMBERI, Artan DERSHA, Arben MITHI, Gleni MEKSI,

Ilir POGAÇE, Orion ZAVALANI, Altin BAKULLARI, Pëllumb MEHMETI, Edmond HIDO, Gerion DHIMO, Fatmir MUNGULI

Vesa RUTANEN, Tiago SANTOS, Dominik BESTENLEHNER, Zoran MORVAJ,Christian VÖLLMIN, Adil LARI, Juerg KLARER

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Contents

Foreword ................................................................................................................................................................................ 11Acknowledgement ................................................................................................................................................................................ 13executive SummAry ................................................................................................................................................................................ 151. IntroductIon ................................................................................................................................................................................ 182. BASeline ................................................................................................................................................................................ 21

2.1 energy demAnd And Supply .......................................................................................................................................................... 212.2 SolAr potentiAl ........................................................................................................................................................................... 222.3 SolAr thermAl mArket ................................................................................................................................................................. 24

3. QuantItatIve Impacts and market growth .......................................................................................................................................... 263.1 Swh key FigureS ........................................................................................................................................................................ 263.2 employment ................................................................................................................................................................................ 283.3 ghg emiSSion reduction .............................................................................................................................................................. 29

4. polIcy settIng ................................................................................................................................................................................ 314.1 renewABle energy SourceS (reS) lAw [23] .............................................................................................................................. 334.2 nAtionAl renewABle energy Action plAn ................................................................................................................................... 344.3 Building mAndAteS / SolAr thermAl oBligAtion .......................................................................................................................... 35

4.3.1 decree on the ApprovAl oF ruleS For mAndAtory inStAllAtion oF SolAr wAter heAting SyStemS in BuildingS ....................... 364.3.2 SolAr thermAl oBligAtionS For puBlic BuildingS in the municipAlity oF tirAnA ..................................................... 36

5. awareness creatIon and capacIty buIldIng ........................................................................................................................................ 395.1 outreAch cAmpAignS .................................................................................................................................................................... 405.2 product StAndArdS And certiFicAtionS/prepAring the locAl SupplierS ........................................................................................ 435.3 teSting lABorAtory ...................................................................................................................................................................... 465.4 trAining And certiFicAtion oF inStAllerS And deSignerS ................................................................................................................ 46

5.4.1 vocAtionAl trAining ................................................................................................................................................. 465.4.2 SpeciAl trAiningS ..................................................................................................................................................... 485.4.3 on-the-joB trAining with inStAllerS ........................................................................................................................ 505.4.4 certiFicAtion SchemeS For inStAllerS ....................................................................................................................... 51

5.5 eStABliShment oF the AlBAniAn Swh induStry ASSociAtion ....................................................................................................... 525.6 toolS ................................................................................................................................................................................ 535.7 FeASiBilitieS And pilot projectS ................................................................................................................................................... 55

5.7.1 FeASiBility StudieS................................................................................................................................................... 565.7.2 low-coSt And energy-eFFicient SociAl houSing .......................................................................................................... 575.7.3 emiS And the energy eFFicient puBlic BuildingS ..................................................................................................... 585.7.4 FeASiBility oF the energy rehABilitAtion oF A reSidentiAl multiFAmily Building ....................................................... 585.7.5 pilot projectS .......................................................................................................................................................... 60

5.8 monitoring oF Swh SyStemS ....................................................................................................................................................... 655.9 cASe StudieS ............................................................................................................................................................................... 68

5.9.1 orphAn houSe in tirAnA........................................................................................................................................... 685.9.2 dAy-cAre centre no. 30 & 50 in tirAnA................................................................................................................... 715.9.3 Alp gueSthouSeS [11] ............................................................................................................................................. 77

6. FInancIal IncentIves .......................................................................................................................................................................... 806.1 energy eFFiciency And renewABle energy Fund ......................................................................................................................... 806.2 FinAnciAl mechAniSm For the energy rehABilitAtion oF reSidentiAl multi-FAmily BuildingS .......................................................... 816.3 privAte Sector initiAtiveS ............................................................................................................................................................ 82

7. the way Forward ............................................................................................................................................................................... 857.1 mArket development ................................................................................................................................................................... 857.2 AwAreneSS, cApAcity And quAlity ................................................................................................................................................. 867.3 BuSineSS And inveStment climAte ............................................................................................................................................... 877.4 climAte FinAncing ........................................................................................................................................................................ 88

8. reFerences ................................................................................................................................................................................ 909. lInks ................................................................................................................................................................................ 92

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List of Figures

Figure 1: Share of energy consumption by the hot water boiler for different households [20] ...............................................19

Figure 2: Solar Radiation (kWh/m2/year) and Sunshine Hours (hours/year) in Albania [19]................................................20

Figure 3: Daily irradiation levels for Tirana [19] ...............................................................................................................20

Figure 4: Market data in collector area in operation [3] & [20].........................................................................................23

Figure 5: Spatial distribution of installers and manufacturers in Albania [20] ....................................................................24

Figure 6: Presentation of the proposed improvements in the Energy legislative and institutional frame facilitated by the SWH project .....27

Figure 7: Exemplary SWH installation at a public building ................................................................................................30

Figure 8: Collage of leaflets, promotional materials and handouts produced by the project ..................................................33

Figure 9: Consultations of the local suppliers at their factories (Source: C. Völlmin) ...........................................................35

Figure 10: Albanian participants at the Solar Keymark testing centre SPF in Switzerland [4] .........................................................36

Figure 11: In-class trainings with support from Swiss solar experts [4] ........................................................................................36

Figure 12: Training undertaken at the test rig at Harry Fultz Institute in Tirana .............................................................................37

Figure 13: Vocational training participants in the lab and hands-on at a training rig [20] .................................................................38

Figure 14: Training of trainers for the instructors of the vocational training centres .........................................................................38

Figure 15: Guides learning during site visits at a hotel supported by Swiss solar experts [4] .............................................................39

Figure 16: Participants at an open session on the topic“No new or refurbished buildings without SWH” organized by Faculty of

Architecture and Urbanistic in April 2014 ..............................................................................................................................39

Figure 17: Screenshots of the SWH Calculation Tool results page ...............................................................................................41

Figure 18: Architectural mock-up of the low-cost, energy efficient social house in Korca ..................................................................41

Figure 19: View from the multi-apartment residential building considered for the feasibility study .....................................................42

Figure 20: Scheme of a thermal solar system and the required sensors for a detailed monitoring [9] ...................................47

Figure 21: Installation scheme of the SWH systems at the Orphans House in Tirana ...........................................................49

Figure 22: Results of the monitoring data for the orphan’s house showing monthly cost for DHW for the different sources of

supply over a period of 2 years (2013-2014) ....................................................................................................................50

Figure 23: Hydraulic scheme of the hot water systems at both day care centres [20] ..........................................................52

Figure 24: Results of the monthly monitoring data for the day care centers ........................................................................53

Figure 25: Solar fractions for the hot water systems at the day care centers in Tirana .........................................................53

Figure 26: Historic development of the lending volume of the Eco Loans by the ProCredit Bank ........................................59

List of Tables

Table 1: Solar thermal market development and greenhouse gas emission reductions from 2010 till 2015 [20] ...................23

Table 2: GHG emission factors for different scenarios ........................................................................................................25

Table 3: Calculation of GHG emission reductions. ..............................................................................................................25

Table 4: Reference values for hot water consumption for different user profiles and applications. .........................................40

Table 5: Summary of financial analyses for Day-care centres No. 30 & 50 .........................................................................54

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Abbreviations and Acronyms

1stNC First National CommunicationADA Austrian Development AgencyCoP Coeficient of PerformanceDTIE The Division of Technology, Industry, and Economics EE Energy EfficiencyESTIF European Solar Thermal Industry FederationEU European UnionGoA Government of AlbaniaGCF Green Climate FundGEF Global Environment FacilityGHG Greenhouse GasGIZ German Agency for International CooperationGSWH Global Solar Water HeatingGWh Giga Watt hour (109 Wh)HFI Harry Fultz InstituteHQ UNDP HeadquartersHVAC Heating, Ventilating, and Air ConditioningICA International Copper AssociationIEA International Energy AgencyIEA-SHC International Energy Agency – Solar Heating and Cooling ProgrammeIMELS Italian Ministry for the Environment, Land, and SeaINSTAT National Institute of Statistics ITA International Technical AdviserM&E Monitoring and EvaluationMETGI Ministry of Environment and Territory of the Government of ItalyMoE Ministry of EnvironmentMoEI Ministry of Energy an IndustryMoT Municipality of TiranaMoU Memorandum of UnderstandingMoTI Ministry of Transport and InfrastructureMoUD Ministry of Urban DevelopmentMV&E Monitoring, Verification and EnforcementNAMA Nationally Appropriate Mitigation ActionsNANR National Agency for Natural ResourcesNES National Energy StrategyNIE National Implementing EntityNPV Net Present ValueNZEB Nearly Zero Energy BuildingRE Renewable EnergyRES Renewable Energy SourcesSESCO Solar Energy Service CompanySF Solar FractionSGM Small grant MechanismSHW Sanitary Hot WatersSPF Swiss Institut für Solartechnik (Solartechnik, Prüfung, Forschung)STO Solar Thermal ObligationSWH Solar Water HeatingSWT Solar- & Wärmetechnik Stuttgart (A “spin-off” of the Institute of Thermodynamics and Heat Technology of the University of Stuttgart) TA Technical AssistanceTL Thermal LoadTNA Technology Needs AssessmentUN United NationsUNDP United Nations Development ProgrammeUNEP United Nations Environment ProgrammeUNFCCC United Nations Framework Convention on Climate ChangeVAT Value Added TaxVTC Vocational Training Centres

ALL Albanian Lek (1 EUR = 136 ALL , 1 USD = 127 ALL)

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Foreword

“Solar Energy: clean and renewable – Solar Water Heating:Environmental friendly and Energy Saving Technology”

The Solar Water Heating is one of the promising technologies to reduce electricity and

fuel wood consumption with a significant contribution towards greenhouse gas emission

reduction.

Under the GEF Global Solar Water Heating Market Transformation and Strengthening Initiative

UNDP is supporting the Government of Albania’s efforts to accelerate a sustainable market

development of solar water heating in Albania with good quality products and services

by an i) enabling policy framework, ii) increased awareness and advocacy iii) available

financing, iv) supply of reliable technology and services and v) replication. The Albanian

Program fits in with the National Energy policy and the objective, which aims to develop

an effective energy sector that guarantees the security of the energy supply in general,

and of electricity in particular, and promotes an efficient and economic use of energy, with

a minimal environmental impact, in order to support the sustainable development of the

entirety of the economic sectors. The penetration of solar thermal energy for hot water

supply to the household and the service sectors are among the several measures developed

in the National Action Plan for RES endorsed by the Albanian Government in January, 2016.

In the framework of the Albanian Solar Water Heating Program a wide range expertise was

provided varying from legal to financial and capacity building, thus creating grounds for

future activities/interventions. Throughout the process attention was given to awareness

rising as a key element in achieving the aimed results.

At the end of June, 2016 the cumulative SWH systems is 186,472 m2, the annual sale has

reached at 21,602 m2 resulting to more than 990,000 tCO2 reduction (indirect CO2 reduction

over the lifetime of solar collectors). In terms of evolution (growth) of the penetration rate

for the SWH, it has gone from 17.9 m2/1000 inhabitants in 2009 to 66.2 m2/1000 inhabitants

in 2016; The National Action Plan on Renewable Energy is revised and finalized, to reflect

for the latest changes in the energy legal frame like the new legislations on Power Sector,

on Concessions, etc., but also the successful government reform, preventing electricity

non-payment (from 45% for the year 2013 to 32% for half 2015), removing one of the key

obstacles for introduction of the RES in Albanian Energy System. The updated RES law

is endorsed before end of 2016 is reinforcing the support for the solar technology, while

a recent full legislation is endorsed for the energy efficiency and energy performance in

buildings. Quite a heavy work is underway to make operational the established EE Fund

to secure sustainability of actions to transform SWH market. The municipalities of Tirana,

Elbasan, Shkoder, Sarande, Vlore, Gramsh, Lushnje, Lezhe, Fier and Durres are supported with

technical assistance and demonstration projects to justify the solar obligations ordinances;

A whole monitoring system is installed with valuable processed data for the solar energy

yielding as per different climatic conditions and and different types of solar collectors.

More than 712 participants (Arch., Eng., Instructors, etc.) are trained over the last five years

on installation/monitoring/maintenance of SWH systems by public institutions, quality of

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products and their design and integration into new and existing buildings. A great deal is

done to improve the specifications for the public tenders procuring the SWH systems and

their service. On the other hand, a voluntary certification and labelling scheme is adopted

for the SWH equipment and installation services by the majority of the SWH equipment

providers having the Solar Keymark certification with a market share of over 60%. A number

of feasibility studies are under preparation for hotels and food industry interested on the

technology of SWH. Over 90% of the trained professionals responded very satisfactorily to

the usefulness of training materials in terms of fulfilling their interests and requirements for

new information.

By expressing my highest consideration for the valuable support and collaboration of UNDP

and GEF in promoting the technology of solar energy in Albania, I hope this publication on

“Best practices from Albanian Solar Water Heating Project” is a valuable contribution to the

achievement of the objectives under the RES target for Albania in particular, and a global

low carbon development policy in general.

damian gjiKnuriminister of Energy and industry

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Acknowledgement

The publication on “Best practices from Albanian Solar Water Heating Project” could

not have been prepared without the generous participation of the many individuals and

organizations, either directly as principal writers, and/or as contributing authors through

background papers, comments on the draft text/s and discussions or indirectly through their

related research and/or other involvement within the “Albanian Country Programme under

the GEF Global Solar Water Heating Market Transformation and Strengthening Initiative”. We

thank all of those involved directly or indirectly in guiding our efforts, while acknowledging

sole responsibility for errors of commission and omission.

lead authors:Josef BUCHINGER (Austria), Andreas KARNER (Austria), Mirela KAMBERI (Albania),

Dritan PROFKA (Albania)

contributing authors: International experts: Vesa RUTANEN (Finland), Tiago SANTOS (Portugal), Dominik

BESTENLEHNER (Germany), Zoran MORVAJ (Croatia), Christian VÖLLMIN (Switzerland),

Adil LARI (Austria), Juerg KLARER (Switzerland)

Albanian Team of experts: Besim ISLAMI, Zija KAMBERI, Adrian DABULLA, Artan DERSHA,

Arben MITHI, Gleni MEKSI, Ilir POGAÇE, Orion ZAVALANI, Altin BAKULLARI, Pëllumb

MEHMETI, Edmond HIDO, Gerion DHIMO, Fatmir MUNGULI

Project Steering committee: Alfred Bundo - Head of Steering Committee, Project Director

Director of Projects and EU Integration, Ministry of Energy and Industry

Athanas Karaja- Member of Steering Committee

Director of Environment and Delivery of Priorities, Ministry of Environment

Gentian Opre - Member of Steering Committee

Director of Budget and Programming, Ministry of Finance

Artan Leskoviku – Member of Steering Committee

Director of Renewable Energy, National Agency of natural Resources

Elsa Dhuli – Member of Steering Committee

Director of Economic Statistics, Institute of Statistics

Mihallaq Qirjo – Member of Steering Committee

Director of Regional Environment Centre

Marieta Mima, Member of Steering Committee

Director of ECAT Tirana

Special appreciation must be given to the support provided by the Ministry of Energy

and Industry of Albania especially to Minister H.E. Mr. Damian Gjiknuri, his cabinet and the

technical departments in charge with energy policies.

Many credits go to the contribution of the UNDP Country Office especially to the H.E. Mr. Brian

Williams (the UN Resident Coordinator and the UNDP Resident Representative), Ms. Lymia

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Eltayeb (the UNDP Country Director) and Ms. Elvita Kabashi (the Environment Programme

Officer), and furthermore to Mr. Marcel Allers (Head of Energy, UNDP Headquarter in New

York) and Mr. John Obrien (Regional Technical Adviser, UNDP Istanbul Regional Hub).

Special thanks belong to mayors, their cabinets and technical staffs in charge with the energy

sector of Tirana, Durres, Shkoder, Lezhe, Vlore, Sarande, Fier, Lushnje, Berat, Elbasan and

Gramsh municipalities for their close cooperation and joint efforts with the implementation of

pilot projects in the municipal buildings with high demand for hot water. Many thanks also to

a number of other public institutions and professional associations for their contributions and

consultations during the Project implementation, namely, General Directorate of Standards,

General Directorate of Accreditation, National Social Service, National Housing Entity,

Vocational Training Centers of Durres, Shkoder, Tirane, Fier, Vlore and Korce, Harry Fultz

Institute, Tirana Polytechnic University, Epoka University, Polis University, Albanian Tourism

Association, Albanian Banks Association, the Association of Architects, the Association of

Builders, etc. Thanks also for the great cooperation and participation to the private industry

of solar water heating producers, importers, installers and all others in the SWH supply chain.

The final thanks belong to the UNDP CO Communication Officer, Ms. Nora Kushti, while Ms.

Dorina Canaj provided fin/admin services throughout the Project life.

mirela Kamberi, m.Sc.Team leader/Projects coordinator

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Executive Summary

The project titled “The Country Programme of Albania under the Global Solar Water

Heating Market Transformation and Strengthening Initiative” is under implementation by the

Albanian Government (the Ministry of Energy and Industry in cooperation with the Ministry

of Environment) and the UNDP since 2010, while GEF funding ended in June 2015. This

Project is part of the GEF/UNDP/UNEP Global Solar Water Heating Market Transformation

and Strengthening Initiative1.

The country programme of Albania aimed at accelerating the market development of solar

water heating with an objective to facilitate the installation of 75,000 m2 of new installed

collector area over the duration of the project, an annual sale of 20,000 m2 reached by the

end of the project. This corresponds to an estimated cumulative GHG emissions reduction

potential of over 800,000 tons of CO2 by the end 2020.

The project had a sound impact on awareness creation, capacity building and market

stimulation that lead to stepping up the market and reaching the set goals. With the

developed training programs at Vocational Training Centers and a certification schemes for

key components of solar thermal systems and their installers the quality of installations is

proper, and hence the sustainability of the market growth and the investments ensured.

The project significantly contributed to the development and enactment of the Law on

Renewable Energy Sources (RES), the National Renewable Energy Action Plan (NREAP), and

the establishment of a Fund for Energy Efficiency. Following, the provisions of the RES law

and the NREAP would enable the Council of Ministers to establish the mandatory installation

of SWH systems for different categories of buildings in order to reach the minimal indicators

‘obligations set for the production of hot water for use of sanitary and technological

processes obtained from the solar thermal systems, taking into account the solar radiation

as per different areas of the country. On the other hand, the mandatory energy performance

certificates for the buildings as required by the Law on Energy Performance in Buildings

would become an effective mechanism to make sure the building owners or administrators

comply with the obligation to install RES energy supply systems, including SWH systems,

increasing the use of SWH technologies in the buildings’ sector in the near future. Further

solar thermal obligations in public buildings and for the city of Tirana are in place. Additional

specific secondary legislation, rules and regulations have been drafted and are about to be

approved soon.

With regards to improving the financial framework to increase the economic attractiveness

of investing in solar water heaters, the project recommended an exemption from value added

tax and custom duties for solar thermal key components, cooperated with commercial banks

to lend for investments in solar thermal systems at improved conditions, and improved the

awareness about end-user financing mechanisms and other delivery models, such as energy

service companies and energy performance contracting.

1. http://www.thegef.org/gef/sites/thegef.org/files/repository/Global_Solar_Water_Heating_mkt_07-01%2008.pdf

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With the new law on renewable energy systems in place and with this the establishment of

a national agency responsible for the renewable energy sources as well as a fund to provide

the framework for continuous financial support, a sound legal and financial framework for

further development and implementation of solar thermal energy in the country is now

provided.

The real work starts now for the producers, importers and installers of Albania, to market,

install and maintain solar thermal systems at public buildings, for industries and foremost in

the individual homes.

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Introduction

Albania has a population of 2.8 million and is situated north of Greece

on the coast of the Adriatic Sea. Due to its geographic setting (41°

latitude, 476 km coast line, mountains up to 2700 m altitude) it has big

potential and an exciting future for renewable energy. Driven by a desire to

reduce dependence on imported fossil fuels and promote a secure supply

of energy, the government of Albania has been very eager to encourage

increased investment in renewable energy.

The project titled “The Country Programme of Albania under the

Global Solar Water Heating Market Transformation and Strengthening

Initiative” is under implementation by the Albanian Government through

the Ministry of Energy and Industry in cooperation with the Ministry of

Environment and the UNDP since 2010, while funding from the Global

Environment Facility (GEF) ended in June 2015. This Project is part of

the GEF/UNDP/UNEP Global Solar Water Heating Market Transformation

and Strengthening Initiative2 (USD 12,000,000 approved in 2008) which

covers six countries (Albania, Algeria3, Chile, India, Lebanon, Mexico).

The solar water heating (SWH) project in Albania is a continuation of

similar activities facilitated by other donors over the last 10 years (Austrian

Development Agency and Swiss Cooperation) to advance the national

policy in the field of renewable energy. The initial idea of the project came

from the National Energy Strategy [22] and the previous climate change

studies such as the Albania’s First National Communication (1stNC) to

the UNFCCC and the Technology Needs Assessment (TNA), which do

promote and recommend solar water heating as one of the promising

technologies to reduce electricity and fuel wood consumption with a

significant contribution towards greenhouse gas emission reduction. The

findings of the Second and the Third National Communications of Albania

to the UNFCCC [21] and the new draft of National Energy Strategy only

reinforced the feasibility of the solar thermal technologies to mitigate

climate change and save electricity in Albania.

2. http://www.thegef.org/gef/sites/thegef.org/files/repository/Global_Solar_Water_Heating_mkt_07-01%2008.pdf 3. Algeria cancelled its participation

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With the project’s total budget of USD 1,988,617 (out of which the GEF

contributed USD 1.000.000, followed by the Government of Albania with

USD 838.617 and UNDP with USD 150.000) the country programme of

Albania aims at accelerating the market development of solar water heating

in Albania with an objective to facilitate the installation of 75,000 m2 of new

installed collector area over the duration of the project, an annual sale of

20,000 m2 reached by the end of the project. With a spur in the annual growth

rate it is the goal to reach 520,000 m2 of total installed SWH capacity by

2020. This corresponds to an estimated cumulative GHG emissions reduction

potential of over 800,000 tons of CO2 by the end 2020.

The long-term goal of the project is to accelerate a sustainable market

development of solar water heating in Albania. Under the estimated business

as usual (BAU) scenario, 184,000 m2 of new solar thermal panels would be

installed in Albania by 2020, while in the alternative scenario, 520,000 m2 of

new solar thermal installations are expected by 2020. The GHG emissions

reduction resulting from this alternative scenario has been estimated at

146,000 tons of CO2 per year in 2020 or at a cumulative amount of over

800,000 tons of CO2 by 2020 from the project start.

The specific sub-targets (outcomes) of the project include:

Outcome 1: Policy - An enabling legal and regulatory framework to promote a

sustainable SWH market. Outcome 2: information and capacity Building - Enhanced awareness and

capacity of the targeted end-users and building professionals to

consider and integrate SWH systems into different types of buildings.Outcome 3: finance - Increased demand for SWH systems through the

availability of attractive end-user financing mechanisms or other

delivery models, such as SESCOs or utility driven models.Outcome 4: Technology and Business Skills - A certification and quality control

scheme applicable for Albanian conditions and the enhanced

capacity of the supply chain to offer products and services

promoting a sustainable SWH market .

Outcome 5: information Sharing - The provided support institutionalized

and the results, experiences and lessons learnt documented and

disseminated (including monitoring, learning, evaluation and other

feedback for adaptive management).

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BASELInE4

4. Baseline refers to the Project Document formulated back in 2008

22.1 Energy demand and supply

2.3 Solar thermal market

2.2 Solar potential

Households use up to 50 % of their electric energy for hot water preparation

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2.1 EnErgy dEmand and SuPPlyThe majority of the population uses electricity to heat their water and over 95 % of the electricity

generated in Albania comes from hydropower plants. However, in-country generation covers only half

of Albania’s electricity demand: depending on yearly weather conditions between 30 and 60 % of the

electricity is imported. This makes energy production and supply - including water heating - highly

vulnerable to climate conditions. Low voltage or cuts in power supply are also not unusual, mainly due

to the deteriorating power distribution system, which has been inherited from the country’s communist

era. Retrofitting the entire power distribution system is beyond Albania’s economic capacities, while

the present growth rates of electricity demand is of more than 8 % per year. Hence Albania’s most

realistic and economical way to stabilise electricity consumption will be looking into alternatives for the

bulk of its electricity demand using renewable energy resources.

According to the mentioned studies (1stNC, TNA), over 70 % of domestic hot water needs of the

household and service sector in Albania is supplied by electric boilers, while the energy demand for

hot water in the residential sector alone was projected to grow from 600 GWh (out of 2588 GWh total

electricity for the residential sector [1]) in 2000 to 875 GWh in 2015.

A field study by the project in 14 households shows that the electricity consumption of boilers makes

on average 16-54% of total electricity consumption of the household.

Figure 1: Monthly boiler electricity consumption toward the total electricity for different households [20]

2.2 Solar PoTEnTialThere are great conditions for solar thermal applications like water heating in Albania. There are on

average 220 days or 2000 to 2700 hours of sunshine every year. Solar radiation values are between

1,185 kWh and 1,700 kWh per square meter horizontal surface and per year. In comparison to other

European regions these are very high values. Theoretically solar energy could provide the low

temperature heat necessary in Albania during a period of at least 7 to 8 months. Solar radiation regime

and sun hours during the year for Albania are shown in the figures below.

The hot water energy demand of a family of 4 persons is 2,500 to 3,000 kWh/year. As indicated by

the charts, with the goal of 1 m2 per person and for a total annual efficiency of a solar water heating

systems of 50 %, a SWH system could provide up to 2640 kWh/year in Peshkopia, which goes up to

3600 kWh/year in Saranda.

FAM.1(5-PEOPLE)

FAM.2(4-PEOPLE)

FAM.3(6-PEOPLE)

FAM.4(5-PEOPLE)

FAM.5(3-PEOPLE)

FAM.6(5-PEOPLE)

FAM.7(3-PEOPLE)

FAM.8 11-PEOPLE)

FAM.9(4-PEOPLE)

FAM.10 (5-PEOPLE)

FAM.11 (4-PEOPLE)

FAM.12 (5-PEOPLE)

FAM.13 (4-PEOPLE)

FAM.14 (5-PEOPLE)

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

80%

70%

60%

50%

40%

30%

20%

10%

0

Boiler Electricity Consumption [kWh/family/year] Total Electricity Consumption [kWh/family/year]

kWh

Share of Boiler Electricity consumption [%]

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Figure 2: Solar Irradiation (kWh/m2/year) and Sunshine Hours (hours/year) in Albania [19]

Figure 3: Daily Solar Irradiation levels for Tirana [19]

Since there is a great variation in the availability of solar energy between summer and winter (see the

average daily solar irradiation for Tirana in Figure 3), the commercially available solar panels in Albania

rely on an electrical back-up, especially during November-March period.

[kW

h/m

2 /d

ay]

0

1

2

3

4

5

6

7

8

DecNovOctSepAugJulJunMayAprMarFebJan

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The need for back-up energy could be reduced by installing more efficient or a higher number of

solar panels but as a consequence this will increase the surplus of solar energy supply from April to

September.

2.3 Solar THErmal marKETMajor studies about the market development and the potential for solar energy systems have been

carried out. All of those studies came to a common conclusion: The market is huge and, taken as a

whole, is steadily growing.

Using solar water heating systems, one may save around 30 - 50 % of the electricity used for sanitary

hot water preparation. A well dimensioned solar water heater may cover up to 70 % of the respective

demand for hot water throughout the year.

As of 2005, Albania had installed a total of 33,000 m2 of collector area (23 MWhth). In 2005 Albania’s

SWH sector had a growth rate of 5 % per year. The sector was also known for varying quality of

products, and yielded mixed results in customer satisfaction.

The SWH market penetration rate has almost doubled between 2007-2011, growing from 15 m2 or 11

kWth per 1000 inhabitants to 28.8 m2 or 20.2 kWth per 1000 inhabitants [2]. Total capacity in operation

by the end of 2012 was 78.3 MWth (111,921 m2 or 26 kWth/1000 inhabitants) [3].

Despite this rapid growth, overall penetration remains comparatively low when compared to Greece’s

383 m2 or 268 kWth per 1000 inhabitants [3].

Prior to the project, there were no specific SWH standards, certifications or quality control mechanisms

in Albania.

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33.1 SWH key figures 3.2 Employment 3.3 GHG emission reduction

QuAnTITATIvE IMPACTS AnD MArkET GroWTH

The project monitors the growth in the residential and commercial SWH market since 2010

23

One of the key performance indicators for the project is that the installation of new equipment at the

end of the project timeframe should be 20,000 m2 per year in 2015. Based on market observation

figures the installation of new equipment hit this target of 20,000 m2/year in 2011, about 4 years

before the project’s expectation (rather than 8,500 m2/year as per the BAU scenario). This means

that the market is responding far more favourable and rapidly than expected.

The stated longer term goal of 520,000 m2 (0.17 m2 per inhabitant) of installed capacity by 2020

could be reached if market growth rate continues to grow over the upcoming years.

3.1 SWH KEy figurESThe project monitors the growth in the residential and commercial SWH market since 2010. Based on

the annual market survey undertaken by the project, the estimated total installed SWH capacity at

the end of 2015 was at 176,000 m2, where of 125,000 m2 has been installed during project period. This

accounts for more than 100 % of the expected final impact (direct post-project and indirect) within

project timeframe.

The market figures in detail are given in the following table:

Table 1: Solar thermal market development and greenhouse gas emission reductions from 2010 till 2015 [20]

GHG reduction 2010 2011 2012 2013 2014 2015total

(2010-2015)

new installations, m2/year collector area

19,813 20,507 21,200 20,105 22,910 21,064 125,599

direct enerGy savinGs over tHe lifetime of panels, mwH in 15 years

170,887 176,872 182,850 173,405 197,598 181,677 1,083,291

direct enerGy savinGs over tHe lifetime of panels, tJ in 15 years

615 637 658 624 711 654 3,899

Figure 4: Market data in collector area in operation [3] & [20]

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

[m2 /

1000

inha

bita

nts]

Figure 5: Annual data of total collector area in operation and the annual increment [3] & [20]

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Comparison of the annual increment in solar thermal collector area before (~ 10,000 m2/year) and

during the project (~ 20,000 m2/year) clearly shows the impact of the project on the market.

By the end of 2015 the total area of solar thermal collectors in operation was around 176,000 m2

equivalent to 123 MW of nominal thermal capacity.

If the market continues with the proven average market growth rate of 10 % per year, the total

collector area at the end of 2020 would be 350,000 m2, or 245 MWth. Assuming that growth rate of

new installations will grow over the next five years, the expected 520,000 m2 by end of 2025 can be

reached.

Flat-plate collector systems account for approximately 90 % of the residential SWH market in Albania,

with evacuated tube collectors accounting for the remaining 10 %.

According to data gathered by the Observatory of Mediterranean Energy, the typical SWH system

collector area is 3-4 m2 and the typical tank size is 150-200 litres. The average system cost is around

USD 1,000 (including installation), with an expected minimum lifetime of 15-20 years.

SWH competes against the average residential retail electricity rate in Albania, which was 0.09 USD/

kWh in 2015. Based on RETScreen analysis, the payback period for a SWH system in Albania is about

2.6 years.

3.2 EmPloymEnTAs of 2015, there were at least 32 domestic

companies that trade and install solar thermal

collectors and components.

Five manufacturers of specific solar water

heating components such as solar thermal

collector or storage tanks are listed by

the project. The following map illustrates

the geographical distribution of trading

companies, manufacturers and installers,

concentrated around Tirana mainly.

Only a few of the companies are in the range

of 50 employees and the total impact on the

national employment rate is little so far. But

over 700 technicians have been trained in the

courses offered by the project, while a follow

up on their whereabouts is ongoing.

3.3 gHg EmiSSion rEducTionSince the solar thermal energy replaces mainly

grid electricity, two scenarios are presented.

The first one considers the weighted emission

factor, deriving from the Albanian total

electricity supply (almost 100 % from hydro

power). The second one considers only the

imported electricity, as if the SWH system

would substitute imported electricity, for

which a GHG emission factor was calculated.

5

18

1

3

Figure 5: Spatial distribution of installers

and manufacturers in Albania [20]

MAT

HAS

VORË

PUKË

KLOS

FIER

VLORË

PEQIN

PATOS

MALIQ

FINIQ

LEZHË

KUKËS

KRUJË

KORÇË

KAMËZ

DIBËR

BERAT

BELSH

TIRANË

SHIJAK

PUSTEC

PËRMET

KURBIN

KUÇOVË

KAVAJË

HIMARË

GRAMSH

DURRËS

DEVOLL

CËRRIK

TROPOJË

SKRAPAR

SHKODËR

SARANDË

POLIÇAN

MIRDITË

LUSHNJE

KOLONJË

KËLCYRË

ELBASAN

DROPULL

DIVJAKË

DELVINË

BULQIZË

TEPELENË

SELENICË

ROSKOVEC

PRRENJAS

POGRADEC

MEMALIAJ

LIBRAZHD

LIBOHOVË

KONISPOL

RROGOZHINË

VAU I DEJËS

MALLAKASTËR

GJIROKASTËR

FUSHË ARRËS

URA VAJGURORE

MALËSI E MADHE

VORA

PUKA

ULZA

KORCA

FIERI

VLORA

KRUJA

MANZA

KAMZA

KLOSI

DIBRA

KLOSI

KRUMA

KUKES

LEZHA

REPSI

PEQINI

TIRANA

KUCOVA

ERSEKA

HIMARA

SUKTHI

FIERZAFierza

MILOTI

Rubiku

BERATI

CERRIKU

LUSHNJA

GRAMSHI

DIVJAKA

DURRESI

GRAMSHIGRAMSHI

DELVINA

BALLSHI

KELCYRE

PERMETI

SARANDA

SHIJAKU

BURRELI

BULQIZA

SHKODRA

TROPOJA

ELBASANI

POLICANI

COROVODA

MEMALIAJ

TEPELENA

LIBOHOVA

RRESHENI

PRRENJASI

LIBRAZHDI

LESKOVIKU

SHENGJINI

KURBNESHI

PESHKOPIA

POGRADECI

PODGORICA

RROGOZHINA

PERRENJASI

GJIROKASTRA

FUSHE-KRUJAFUSHE-KRUJA

BAJRAM CURRI

URA VAJGURORE

KOPLIKU QENDER

21°0'0"E

21°0'0"E

20°0'0"E

20°0'0"E

19°0'0"E

19°0'0"E

42°0'0"N 42°0'0"N

41°0'0"N 41°0'0"N

40°0'0"N 40°0'0"N

D E

T I A

D R

I A T

I K

D E T I

J O N

M A L I I Z IK O S O V Ë

I S H - R E P U B L I K A

J U G O S L L A V E E

M A Q E D O N I S Ë

G R E Q I

21

5

3

1

1

1

1

1

1

1

3

Importing Companies

Manufacturing Companies

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The share of electricity imported to Albania varies from 30-60 % depending on the season.

Table 2: GHG emission factors for different scenarios

emission factors (ef) for weiGHted electricity supply for avoided import

Baseline GHG emission factor 0.284 kG/kwH 0.844 kG/kwH

GHG savinGs per m2, year 163 kG co2/ m2/year 486 kG co2/ m

2/year

lifetime co2 savinGs per m2 2.45 tons/m2 7.28 tons/m2

With the installed area of all the SWH systems during the core project period and considering below

mentioned parameters and emission factors, the GHG emission reductions are as follows:

Table 3: Calculation of GHG emission reductions

GHG emission reductions total (2010-2015)

new installations, m2 collector area (rounded) 125,000

averaGe annual solar tHermal yield, kwH/m²/year 575

calculated panel lifetime, years 15

direct enerGy savinGs over tHe lifetime of panels, mwH in 15 years (rounded) 1,000,000

direct enerGy savinGs over tHe lifetime of panels, tJ in 15 years 3,600

first scenario: indirect co2 emission reduction over tHe lifetime of panels witH tHe weiGHted emission factors for all power supply, tons of co2

300,000

second scenario: indirect co2 emission reduction considerinG tHe emission factors from avoided import, tons of co2

900,000

In terms of GEF funding for incremental environmental benefits, the baseline can be assumed as an

incremental annual growth of 10,000-15,000 m2/year, leading to an additional effect of 5,000-10,000

m2/year as a result of the additional financing, or 115 or 340 Mtons of additional mitigated greenhouse

gas emission reductions respectively for the two calculation methods.

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44.1 renewable energy sources (rES) Law [23]

PoLICy SETTInG

4.2 national renewable Energy Action Plan

4.3 Building Mandates / Solar Thermal obligation

The project had significant impact on the creation of such an enabling framework

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A crucial key outcome of a GEF Climate Change Mitigation project is to develop an enabling legal and

regulatory framework to promote sustainable technologies and markets.

The project had significant impact on the creation of such an enabling framework by initiating and

drafting a number of policies, laws and secondary legislation.

The basis of the legal framework builds the law on Renewable Energy Sources (RES). On 2 February

2017, the Albanian Parliament approved a new law on renewable energy sources (Law no.7/2017),

replacing the former one (Law no. 138/2013, dated 02.05.2013), which partially transposes the

Directive 2009/28/EU of the European Parliament and of the Council, dated 23 April 2009, “On the

promotion of the use of energy from renewable sources” and amending and repealing Directives

2001/77/EC and 2003/30/EC.

In addition, a National Renewable Energy Plan (NREAP) [24] has been endorsed (via the Governmental

Decree No.27, dated 20.01.2016), which sets national targets of renewables in the final total energy

consumption of the country together with support measures for achieving these targets. To complete,

the mandatory energy performance certificate for the buildings introduced by the new Law on

Energy Performance of Buildings (Law no.116/2016, dated 10.11.2016) [25] and other provisions for

incorporating renewable energy technologies in newly built or renovated buildings to transfom them

into nearly zero-energy buildings, is going to be an effective mechanism to make sure the building

owners or administrators comply with the obligations to install RES energy supply systems, including

SWH systems, creating great opportunities for solar thermal in Albania.

dEvEloPmEnT of EnErgy Policy/Pricing in favour of rEnEWaBlESSince the 2013 electricity sector collapse in Albania, a great progress is made in reforming both the

legal framework and improving the liquidity of the sector.5 The new Power Sector Law transposes the

principle provisions of Directive 2009/72/EC and addresses the liberalization of the electricity market,

treatment of public service obligations, unbundling of the transmission system operation, powers of

the national regulatory authority, supply of electricity and the customer protection. Measures for

consolidation of the OSHEE (Power Distribution Company) and control of the revenue, imposed by

the Government since 2014, provided significant results in 2014 onwards. Losses were reduced by 7%

and the collection rate increased by almost 10% compared to 2013. The figures further improved in the

years 2015 and 2016. Increased liquidity created the possibility for the payment of the independent

producers’ arrears, reducing the existing debt in the sector and contributing to investment security.

New supply prices were approved by ERE (Electricity Regulatory Entity) and applied since January,

2015. They include reasonable costs, remove cross-subsidies, block tariffs and non-technical losses,

and allocate budget sources for part of the supply to vulnerable customers.

In addition, by putting a price on energy for a large share of potential SWH clients such as SMEs and

the service sector, the new Government removed one of the key obstacles for introduction of RES

and energy efficiency on the demand and supply sides of Albanian Energy System, which together

with the new pricing policy are making the renewable energy sources more attractive and reducing

the pay-back time of investments in the renewable sector.

5. https://www.energy-community.org/.../2092EC7DE2E00C77E053C92FA8C0C1B5

Figure 6: Presentation of the

proposed improvements in the

Energy legislative and institutional

frame facilitated by the SWH project

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ESTaBliSHmEnT of an EnErgy agEncy WiTH rESPonSiBiliTy for rESThrough most of these legal documents an “agency responsible for the renewable energy sources”

is mentioned, which is so far covered by the National Agency of Natural Resources (NANR), funded

by the Government. Out of this agency the “agency responsible for the renewable energy sources”

could be established. This National Agency plays many different roles in the implementation and

enforcement of the legal framework. Among others it is obliged to provide all interested market

participants with information on supporting schemes for SWHs and offer trainings and information

on SWH benefits to the public [5]. Further it could play a role in monitoring and evaluation of

customer satisfaction. Further, it will also be important to strengthen the market monitoring

activities in terms of monitoring the price of solar thermal related products before and after the

new fiscal incentives suggested by the RES law are entering into force.

The following sections describe the documents and their relation to the SWH project and market

a bit closer.

4.1 rEnEWaBlE EnErgy SourcES (rES) laW [23]The objectives of Albania’s energy policy are competitiveness, security of supply and sustainability.

The new law on Renewable Energy Sources (Law no.7/2017), which replaced the former one (Law

no. 138/2013, dated 02.05.2013), provides (article 20) that the Council of Ministers shall determine

minimal indicators for the production of hot water for use of sanitary and technological processes

obtained from the systems of solar panels, taking into account the quantity of solar radiation

in different areas of the country. Although not explicitly provided, this provision would enable

the Council of Ministers to establish the mandatory installation of SWH systems for different

categories of buildings in order to reach the minimal indicators obligations required by this

provisions.

Paragraph 3 of Article 20 stipulates that the Council of Ministers shall approve the specific criteria

for the calculation of solar energy used to obtain hot water, either separately or as a part of the

Building Energy Code taking into account the latest EU standards approved for this purpose.

The RES Law is the first Albanian law addressing SWH systems in particular and representing an

important part of Albania’s renewable energy policy.

On the other hand, the new Law on Energy Performance of Buildings (Law no.116/2016, dated

10.11.2016) has introduced the obligation of issuance of an energy performance certificate for

different categories of buildings. Article 10 of the law provides that subject of a mandatory energy

performance certificate shall be:

a) All buildings or buildings’ units which shall be sold or rented;

b) All buildings newly built or subject of major renovation; and

c) All buildings that are in use by a public authority or institutions providing a service to the

general public or are visited frequently by the public with a used area more than 500 m2.

Paragraph 1(a) of Article 8 of the same law stipulates that the owner or the administrator of a

newly built building or of an existing building subject of major reconstruction should take in

consideration the requirements of the National Methodology of Calculation of Energy Performance

of Buildings and assess the possibility of utilization of decentralized systems for supply of energy

using renewable energy sources, which include solar water heating systems installed in buildings.

The same law (Law no.116/2016) has introduced the concept of near zero energy building, which

is a building with near zero net energy consumption, meaning the total amount of energy used

by the building on an annual basis is roughly equal to the amount of renewable energy created

on the site, or in other definitions by renewable energy sources elsewhere.

According to paragraph 1 of Article 9 of this law, Ministry responsible for energy (MoEI) and

29

Ministry responsible for territorial planning and development (MoUD) shall develop a national

plan to increase the number of nearly zero energy buildings starting with the public buildings.

This plan can serve as an important tool for the Government to increase the use of solar energy

for hot water in buildings as one of the least cost energy supply alternatives for buildings in

Albania.

It, however, remains unclear whether the building regulations will be as effective as expected.

So a remaining task for the project is to support the MEI in drafting complementary secondary

legislation for making operational of the proposed EE/Climate Mitigation Fund. This fund will be

the mechanism to secure the financial sustainability of the intentions in the RES Law (More on

the EE Fund in chapter 6.1).

4.2 naTional rEnEWaBlE EnErgy acTion PlanAlbania as one of the Contracting Parties of the Energy Community Treaty is obliged to transpose

and comply with the EU Directive 2009/28/EC “On the promotion of the use of energy from

renewable sources and amending and subsequently repealing Directives 2001/77/EC and

2003/30/EC”. One of the requirements of this Directive is the preparation and adoption of a

National Renewable Energy Plan (NREAP), which sets national targets of renewables in the final

total energy consumption of the country together with support measures for achieving these

targets.

Based on the EU Directive and RES Law, which provide the context for possible RES role in

Albanian current energy and economic situation, and based on the principals of energy security

and economic value added to local economy, the following RES policy objectives are adopted:

• Reduction of electricity imports;

• Diversification of primary energy sources for electricity supply;

• Reduction of transmission and distribution losses by promotion of distributed generation;

• Creation of local business and employment opportunities by installing and producing

parts/components/systems of RES plants by Albanian industrial sector;

• Utilisation of local energy sources especially in remote areas bringing jobs and improving life

standard;

• Increasing share of biofuels and other fuels from renewable energy sources contribution to

10 % of total fuel consumption at transport sector by 2020.

The National Renewable Energy Action Plan, adopted via the Governmental Decree No. 27, dated

20.01.2016, describes a path on how to increase the share of energy from renewable sources in gross

final consumption of energy from 29.7 % in 2009 to a national target of 38 % in 2020. This target is to

be achieved by using renewable energy sources (hydro, wind, solar, bio mass, bio fuels) for electricity

generation, heating, cooling and in transport.

Among the 20 featured policies and measures to reach this goal, the following three specifically on

solar thermal energy are elaborated in the NREAP:

• Adoption of policies and measures for increasing the use of solar energy in buildings to install

solar water heating system;

• Installation of solar water heating systems by taking into account the certificate for energy

performance of the building issued according to the provisions of the Law on energy

efficiency;

• All domestic and imported solar water heating systems shall meet minimum technical

requirements;

The definition of these goals was strongly influenced by the project and it would not have been as

easy to set the quantitative goals for solar thermal energy.

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4.3 Building mandaTES / Solar THErmal oBligaTionThe market study done in 2006 during the UNDP/GEF Solar Water Heating (SWH) project

preparatory phase concluded that there are close to 8,000 public buildings in Albania consisting of

hospitals, nursing homes, schools, universities, dormitories, day care centres and other buildings,

which are consuming various amounts of sanitary hot water for their operations. The potential

for installing solar water heating systems into public buildings was estimated at over 200,000 m2

of collector area with corresponding annual saving potential of over 100 GWh of electricity and

fossil fuels. With the current electricity price of ALL 14.4 per kWh for public buildings (including

VAT), this equals to about ALL 1.5 billion or USD 14 million per year [7].

Based on these assessments like the “Initial Macroeconomic Analysis of the Energy Saving

Potential on Albanian Residential Buildings” [7], it was a very important objective of the project,

to create a legal framework that makes the use of solar thermal energy mandatory for (public)

buildings.

The project has achieved this objective by drafting a Decree on rules for mandatory SWH

installations and supporting the city of Tirana in defining and endorsing a solar thermal obligation

for public buildings. Based on this experience, the project continuous to provide technical and

legal assistance to several municipalities for drafting/implementation of standards related to RES

and EE in public buildings, including solar thermal obligation in new/under renovation buildings

and the terms of references as specific as possible for their tendering.

4.3.1 dEcrEE on THE aPProval of rulES for mandaTory inSTallaTion of Solar WaTEr HEaTing SySTEmS in BuildingSA Decree on the Approval of Rules for Mandatory Installation of Solar Water Heating Systems in

Buildings is drafted as one specific secondary legislation to the RES Law making it mandatory to

install SWH systems in different categories of buildings. It provides a schedule for a phasing in

of the obligation into different building categories, i.e. it starts with public buildings in year one,

and sequences, hotels and similar, single individual houses and multi-store apartment buildings

over the next 3 years. Specific procurement provisions for public buildings are required in the

decree. All SWH systems need to be able to deliver at least 55% of the amount of final energy

required to satisfy the annual expected sanitary hot water consumption and related thermal load

in the building under consideration. Methodologies and default values for calculation of this solar

Figure 7: Exemplary SWH installation at a public building

31

fraction are defined in the draft decree. Quality requirements include Solar Keymark certification

for specific solar thermal components such as collectors or pre-manufactured systems after

a certain phasing-in period. Quality requirements are also defined for design, installation,

commissioning and maintenance, e.g. for SWH systems with a collection area larger than 10 m2,

the maintenance of the system shall be made with specialized service providers contracted by

the owner or administrator of the building. Further, the decree defines a scheme for certification

of SWH system designers and installers.

Subject of endorsement, the National Agency of Natural Resources/the Agency in charge with

RES and the Construction Institute would monitor the implementation of the SWH system

obligation in buildings under these Rules.

4.3.2 Solar THErmal oBligaTionS for PuBlic BuildingS in THE municiPaliTy of TiranaIn 2013 the Tirana Municipality discussed and accepted the proposed Solar Thermal Obligation (STO)

scheme, which aims to play an important role among Albanian municipalities in making solar water

heating as a standard solution for all new public buildings and those going through major renovations.

Its objectives is: “By building on the provisions of the RES law, the Municipal Solar Thermal Obligation

aims at making solar thermal applications as a common and obligatory component for all new public

buildings and those going through large rehabilitation in the area of Tirana Municipality” [8]. Except for

some logical exemptions, all the public buildings under the jurisdiction of the Municipality of Tirana, in

which sanitary hot water needs were identified, are in the scope of this STO. The annual solar fraction

of the SWH systems shall be at least 55%, as an average over the annual expected consumption.

The Solar Thermal Obligation also includes definitions of minimum technical and quality requirements

applicable for SWH systems, in three phases of their overall life-cycle: 1. design & specification; 2.

installation & commissioning; 3. operation. Additional, the minimum technical qualifications applicable

to SWH designers and installers and the contents to include in specific vocational training and

certification schemes for these two professional categories are defined in the Solar Thermal Obligation.

The project is using the municipal level regulation and training materials prepared for the co-operation

with Tirana municipality (MoT) as well as the related MoU signed between the UNDP and the MoT

as a basis and model for similar initiatives with other Albanian municipalities. The suggested end of

project target would be to have at least one more Albanian municipality to start with a municipal solar

obligation either voluntary or based on the requirements of the new legislation on RES and/or EPB.

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5AWArEnESS CrEATIon AnD CAPACITy BuILDInG5.1 outreach Campaigns 5.2 Product Standards and Certifications/preparing the local suppliers5.3 Testing laboratory 5.4 Training and certification of installers and designers5.5 Establishment of the Albanian SWH Industry Association 5.6 Tools5.7 Feasibilities and pilot projects 5.8 Monitoring of SWH systems 5.9 Case Studies

The project successfully enhanced awareness and capacity of the targeted end-users and professionals

33

The project was very successful towards the projected outcomes 2 information and capacity Building and 4 Technology and Business Skills. With a broad mix of activities the project

successfully enhanced awareness and capacity of the targeted end-users and professionals, as

for instance in a regional workshop with more than fifty expert participants (see INFO BOX).

Very strong efforts were spent on training of technicians and pilot projects. With the built

framework of certification and quality control schemes the project will have a sustainable impact

on enhancement of capacity and quality of the supply chain.

5.1 ouTrEacH camPaignSA series of awareness raising activities were undertaken such as regular articles in several newspapers

and magazines, events with several municipalities and communes alongside the south coast of

Albania and different promotion materials such as leaflets, fast facts, posters, wall calendar were

prepared and distributed. Special events with the Albanian Tourism Association were held to increase

the awareness among local actors and entice them to use solar thermal technology in the tourism

sector. This sector is considered to be one of the country’s most promising investment areas besides

energy generation from renewable resources, such as hydropower, wind or solar energy.

The documentary6 prepared by the Albanian Public Television (TVSH) and presented on May

10, 2014 on the achievements and challenges of the project in transforming the SWH market in

Albania and the experiences from pilot solar thermal systems installed in the public/private sectors

represents one of the highlights of the Albanian project awareness creation activities. Another

TV documentary “Lowering Albania’s climate change risk” produced and aired by the Albanian

Public TV “Top Channel” on 02 October, 2016 in the frame of the Third National Communication

of Albania to the UNFCCC, showcased the SWH systems installed by the project as feasible

technology to save energy and mitigate climate change.

During summer 2011, the SWH project organized a public awareness campaign “Solar Energy:

Clean and Renewable – Solar Water Heating: Environmental Friendly and Saving Technology”.

The aim of the campaign was two-folded: (i) to increase awareness and understanding among

local communities of the coastal area, about the feasibility of the solar water heating systems

(SWH) as a technology contributing to energy saving and climate change mitigation and (ii) to

facilitate access to information in order to gain public and private support for policy measures,

adequate financing mechanism and qualitative products and services to increase the penetration of

the solar water heating systems among the residential, service and industrial sectors in Albania, both,

public and private ones. During the campaign, a “Portable Solar Shower” was used for demonstration

purposes: with support of Albanian solar manufacturers a trailer equipped with two types of Solar

Panels and one accumulator, connected to public showers in the beaches, was exposed to the sun

during the day, providing for hot water for interested people together with information on the

associated benefits of such systems especially at summer time.

6. https://www.youtube.com/watch?v=8RypFnbON8M

Figure 8: Collage of leaflets, promotional materials and handouts produced by the project

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A number of other promotional events are organized in cooperation with public entities and municipal

governments. Yet, a second phase of public outreach activities is planned after the adoption of the

SWH specific by-laws supporting the implementation of the revised RES law. Once released, the

discussions on possible cost-sharing by the private sector of these marketing campaigns as well as

to obtain, for instance, free broadcasting time for promoting energy efficiency and solar thermal

systems “for common good” can be explored further, including a possibility of cooperation on a

joint awareness campaign with the OSHEE (Power Distribution Company) empowering customers

to positively manage their energy consumption by providing information on their meters and bills.

Even the full-fledged marketing campaign is still to be launched, a survey made in one residential

building provided results that 100 % of inhabitants already felt that they have enough information

about SWH systems and did not see this as a barrier for investing. All interviewed hotel managers

not having yet a SWH system also demonstrated good knowledge about the SWH systems and

their installation requirements, while pointing out the initial investment as the main barrier to not having

invested in SWH yet. On the other hand, for advancing the investments in SWH systems in hotels, free

energy audits were suggested by one solar thermal distributor as the most effective tool to advance solar

thermal market within the tourism sector. Some activities were already initiated by the project on this

earlier in co-operation with the Albanian Tourism Association. As a result of the recent, much stronger

enforcement of electricity payments and foreseen tariff increases, the interest of the local SMEs and

other private sector entrepreneurs in solar thermal may have considerable increased, however.

In the internet, specific information on SWH can be found at the project website managed within the

overall UNDP programme website7, at a Facebook site8 and at the site of NANR in local language9.

7. http://www.al.undp.org/content/albania/en/home/operations/projects/environment_and_energy/the-country-program-of-al-bania-under-the-global-solar-water-heat.html 8. https://www.facebook.com/undpccp.albania 9. http://www.akbn.gov.al/energjia-diellore/

More than fifty experts from different countries around the Mediterranean came together in Tirana for two days in March 2013. In the “Regional workshop and B2B meetings for the Transformation and Strengthening of the Solar Water Heating Market in the Mediterranean region” the experts from both the public and private sectors shared their knowledge and experience of adoption and diffusion of solar thermal technologies. Relevant aspects related to policy and regulation, industry and market applications were discussed in order to expand the solar heating market in the region. The workshop created the possibility of collaboration among the policy-makers, experts and local businesses operating in the area of SWH. Participants came from Albania and the Mediterranean region, as well as representatives from the ministries responsible for Energy and Environment, UNDP Albania, Regional Centre and Headquarter in New York, the UNEP DTIE, etc. The event was organized by the Observatoire Méditerranéen de l’Energie, an industry association and think tank which promotes regional dialogue and cooperation on energy issues, under the auspices of the Ministry of Economy, Trade and Energy with support of the project.

Regional workshop on solarthermal brings togetherbusinesses and key experts from countries of the Mediterranean

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A website including all the features to make the website a really functional and informative tool for

further promoting sustainable solar thermal market in Albania will eventually be set up with the new

Energy Efficiency/RES Agency.

5.2 ProducT STandardS and cErTificaTionS/PrEParing THE local SuPPliErSIn the process of drafting the SWH related chapters of the RES law and the related by-laws, it was

concluded that it does not really make sense to develop a national-individual quality control system

for solar thermal hardware in Albania, but to adopt the well-established European Solar Keymark

certification scheme. In fact, Albanian SWH equipment providers with a market share of over 70 %

offer products certified with the Solar Keymark.

On the other hand, the drafted secondary legislation (see above for Decree on the Approval of Rules

for Mandatory Installation of Solar Water Heating Systems in Buildings) requires that all imported SWH

collectors should have the Solar Keymark in order to meet the requirements of the solar obligation in

buildings. A Keymark certification scheme is always based on existing European standards. For solar

thermal technologies the relevant standards are the EN 12975 on solar thermal collectors and the

EN 12976 for factory made solar thermal systems. Essential for the national acceptance of the Solar

Keymark scheme was the translation and adoption of these standards by the national standardisation

body of Albania (General Directorate of Standardization, DPS), hence the DPS has these and one

more solar technology standard translated and now listed as:

• S SH EN 12975-12006+A12010

• S SH EN 12976-12006

• S SH EN ISO 94882005

To comply with the requirements of the full Solar Keymark certification, the project continuously

assists domestic producers through its established network with information and awareness creation

for this requirement and how to meet the standards and get certified.

Special assistance was provided by the project to the local solar thermal industry. At the Solar Keymark recognized test laboratory SPF in Switzerland 4 collector producers pre-tested their products. They also participated in a tailor-made one week programme in Switzerland where they could augment their knowledge, skills and experience substantially. Heart of the training at SPF was the detailed physical examination and testing of the solar collectors at SPF’s premises in Rapperswil. Possible improvements in design, materials, way of fabrication and tools were discussed with Swiss experts.

Figure 9: Consultations of the local suppliers at their factories (Source: C. völlmin)

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The aim was to provide the basis for the redesign and the modification of materials and fabrication

process of the Albanian manufactured components to meet the Keymark certification requirements.

These activities were organised in collaboration with a Swiss consortium consisting of INFRAS AG,

Swisssolar and HSR Hochschule für Technik Rapperswil - Institut für Solartechnik SPF on behalf of

the REPIC Platform [4].

Further, with support from German experts from Solar- und Wärmetechnik Stuttgart [9] on the

Solar Keymark certification the three most competitive Albanian manufacturers have been screened

against the Keymark requirements. Detailed recommendations were given to the manufacturers

(e.g. on quality management systems), as well as recommendations for a transitional phase for

implementation of the regulations.

The Solar Keymark is a voluntary third-party certification mark for solar thermal products, demonstrating to end-users that a product conforms to the relevant European standards and fulfills additional requirements.The Solar Keymark is used in Europe and increasingly recognized worldwide.The Solar Keymark is a CEN/CENELEC European mark scheme, solely dedicated to:• Solar thermal collectors (based on European

standard series EN 12975)• Factory made solar thermal systems (based on European standard series EN12976)The Solar Keymark was developed by the European Solar Thermal Industry Federation (ESTIF) and CEN (European Committee for Standardisation) in close co-operation with leading European test labs and with the support of the European Commission. It is the main quality label for solar thermal products and is widely spread across the European market and beyond.www.solarkeymark.org

Solar Keymark

INFO BOX

Figure 10: Albanian participants at the Solar keymark testing centre SPF in Switzerland [4]

Figure 11: In-class trainings with support from Swiss solar experts [4]

37

5.3 TESTing laBoraToryDuring the PDF-B Market transformation for Solar Water Heating in Albania project (the preparation

stage of the full project proposal for the Albanian Programme) funded by GEF/UNDP, a partnership

was concluded with a previous SWH project funded by the Austrian Development Agency10, under

which partnership, a solar thermal testing centre was established at the Harry Fultz Institute, a high

school and community college in Tirana. Ideally, this testing centre could have been transformed into

a fully fletched solar thermal testing centre, accredited to do testing according EN 12975 and EN

12976 as well as recognised as Solar Keymark testing facility. But it proofed, that the testing facility

would have required high financial and capacity resources to meet the stringent requirements of

accreditation and recognition, and that a more professional framework would have been required

than that of a school. While in perspective of the small local market for testing, this would not have

been a sustainable investment.

Nevertheless, the solar testing laboratory serves successfully as a test institute for the local industry

for performance testing or pretesting of products under development, and it is used for educational

purposes, but not at the level envisaged at the project start. To further enhance and use the capacity of a

national test laboratory for pre-testing and technical training, there are ideas to move the equipment

to a technical university.

5.4 Training and cErTificaTion of inSTallErS and dESignErS5.4.1 vocaTional TrainingThe training activities aim to supply the Albanian labour market with qualified professionals,

specially trained for installing and maintaining solar thermal systems. During the project over

700 (including 66 female participants) professionals starting from installers, technicians, architects,

engineers, instructors, etc. were trained on solar thermal technology. The trainings focused on the quality

of products and their design and integration into new and existing buildings including monitoring and

maintenance. Over 90% of the trained professionals responded very satisfactorily to the usefulness of

training materials in terms of fulfilling their interests and requirements for new information. Participants

are either already employed in the sector (e.g. plumbers), want to start a business on their own, or

tend to go abroad as seasonal workers. On these training activities, the project has collaborated, for

instance, with the Albanian Ministry of Labour, Social Affairs and Equal Opportunities (MLSAEO), and

with various education and training institutions such as the Tirana Polytechnic University, vocational

training centres (VTCs) and private universities. In seven Vocational Training Centers, specific courses

for “Installers and Repairmen of solar panels for hot water” were introduced.

10. „Solar Water Heaters – Training of Experts & Proffesionals and Improvement of Technology & Production in Albania“, [15].

Figure 12: Training undertaken at the test rig at Harry Fultz Institute in Tirana

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For all these courses training of instructors has been provided on the basis of improved curriculum

approved by the MLSAEO, while tools and training equipment (solar panels, etc.) have been

provided by the project to the Vocational Training Centres of Tirana, Durres and Fier. Based on

the Swiss training handbook “Solarwärme” for solar professionals in Switzerland [4], the project

developed a good set of training materials, available for VTCs instructors to teach new graduates,

students and others interested to entering the professional market. For the remaining period of the

project the goal is to integrate SWH training materials to the regular curricula of other professional

high educational entities/technical universities [10].

To outreach further the SWH Project entered into a cooperation agreement with the Italian

association CeLIM, due to which, the latter provided tools and training equipment for three other

Vocational Training Centers which develop specific courses for solar energy (in Shkodra, Vlora

and Korca) and for the professional high school “Karl Gega” in Tirana. In addition, the Harry Fultz

Institute has started a specific course for solar installers in September, 2012.

To create awareness about the availability of such trainings a promotional event was organized in

the Vocational Training Centre No.1 in Tirana with broad participation and in collaboration with the

MLSAEO, the National Employment Service and the Directory of the Centre in May 2012.

5.4.2 SPEcial TrainingSSpecial trainings were provided to over 820 architects, building engineers, installers and other

professional in the building sector, media representatives, etc., to increase their capacities on benefits

of solar energy.

The first 2-3 days training for the local architects and other building sector specialists was delivered

in March 2012, supported by an international consultancy. A second phase of the training was carried

out for the needs of the architects, other professionals in the building sector and an interested group

of students from different faculties of the Polytechnic University of Tirana and other non-public

universities at the premises of Epoka University in Tirana, in March 2013.

In collaboration with the Polytechnic University in Tirana, reciprocally the Faculty Architecture and

Urbanistic and the Faculty of Mechanical Engineering, training workshops and open sessions were

successfully developed and held for architects, energy engineers, and other professionals, including

also students of Master of Science and the ones from the Energy Audit course, for the technologies of

SWH systems for domestic hot water and heating in Spring 2014.

Training has also been organized at the community level on the installation, monitoring and maintenance

of SWH systems upon commissioning/hand over of pilot projects.

Figure 13: vocational training participants in the lab and hands-on at a training rig [20]

Figure 14: Training of trainers for the

instructors of the vocational training centres

39

Awareness on the SWH technology has been raised through a number of workshops with local

communities, non-governmental organisations, private business and other interested participants

upon cooperation with OSCE and Aarhus Centers of Vlora, Orikum, Himara and Saranda.

5.4.3 on-THE-joB Training WiTH inSTallErSIn collaboration with the Swiss consortium consisting of INFRAS AG, Swisssolar and HSR Hochschule

für Technik Rapperswil - Institut für Solartechnik SPF on behalf of the REPIC Platform, technical

assistance in the field of testing and quality management of the SWH supply side was provided

during 2010 - 2012, which included not only the capacity building for the Albanian manufacturers (as

described in 5.2), but also capacity building along the local supply and services chain: Improving the

quality of system design, engineering, fabrication and installation, in order to strengthen the trust of

prospective customers into SWH technology, by offering training courses and support to supply side

actors in Albania as well as on-the-job trainings for installers. The last involved a number of technical

visists by the big installations of SWH systems with the presenece of the installers of those sustems, so

that the reccomended improvements/proposed changes might be reflected.

5.4.4 cErTificaTion ScHEmES for inSTallErSThe establishment of a certification system for installers is still pending. In contrast to the certification

scheme Solar Keymark, there is no general European certification scheme for installers of solar thermal

systems and components. Although a couple of national certification schemes and qualification

courses exist. Such schemes are already implemented in several European countries. With the help of

German experts these certification schemes were analysed [9] with the conclusion that installers in

order to get certified need to have special qualified training and should be working at least three years

as a professional plumber.

While the secondary legislation drafted by the project to support the RES law implementation

is obliging the use of certified system designers and installers for systems subject to this law and

related by-laws, the establishment of such a certification system (or system of recognition) has not yet

progressed in practice.

The work could eventually be continued, in agreement with the Ministry of Energy and Industry, by the

establishment of a working group composed by representatives of the hardware supplies, installers,

system designers, educational institutions and public authorities to define and agree on a concrete

strategy, institutional arrangements and required activities to establish such a certification system.

Figure 15: Guides learning during site visits at a hotel supported by Swiss solar experts [4]

Figure 16: Participants at an open session on the topic

“no new or refurbished buildings without SWH” organized

by Faculty of Architecture and urbanistic in April 2014

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5.5 ESTaBliSHmEnT of THE alBanian SWH induSTry aSSociaTionThe idea of establishing an Albanian Solar Industry Association never really took off among the

interviewed supply side stakeholders. The interest of the uncounted installers, 32 importers and 5

producers is low, as they do not have a productive role model for the activities and outcomes of an

industry association in the country. Ideas about a possible collective voice for marketing and lobbying,

as well as quality assurance exist among some stakeholders, yet the mind-sets are not fully ready.

The previously planned support by the project can be revoked, if interest growth again due to the

enacted laws, more stakeholders on the market and the rising consumer interest for solar electricity.

But maybe only after the project ended, the key stakeholders of the solar thermal industry realise, that

they will need joint efforts on marketing and lobbying.

Strategic objectives of an Albanian SWH Industry Association could be:

• to be a recognised partner of the Albanian institutions for the purpose of policy advice and

implementation of support programmes, certification schemes for renewables in heating and cooling;

• to promote solar thermal heating and cooling in Albania to achieve the target of 1 m2 of

collector area;

• to support its members when dealing with institutions, programmes and policies concerning

solar thermal issues, e.g. regarding certification of installers, quoting on public tenders, etc.

• to promote the abolition of any trade barriers hampering the development of an open and

large solar thermal market in Albania;

• to enhance initiatives aimed at the integration of solar thermal in the built environment

• to develop and support instruments which increase consumer confidence, product quality

and the impact of market stimulation tools.

5.6 ToolSThe project financed the development of a SWH Calculation Tool available for internet and smart

phones interested users. This is a simplified Residential & Service Solar Water Heating system

calculation tool, which estimates the size and the cost to instalvl such a system in your home, hotel or

restaurant, running also payback and financial analysis. The financial analysis provided is based upon

energy bill savings you can expect after the installation of the system. The results are based upon

guided assumptions, e.g. for the hot water usage according to the following table.

Table 4: reference values for hot water consumption for different user profiles and applications.type of BuildinG or use Hot water consumption at 60 °c unit

residential 40 lt/capita/day

Hospitals 50-65 lt/Bed/day

scHool 5 lt/capita/day

Hotel ***** 90 lt/Bed/day

Hotel **** 70 lt/Bed/day

Hotel *** 55 l/tBed/day

Hotel ** 40 lt/Bed/day

Hotel * 35 lt/Bed/day

elderly or students House 55 lt/Bed/day

military facilities 20 lt/capita/day

Gymnasium (sHowers) 25-35 lt/capita/day

laundry 4-7 lt/kG clotHs

restaurant 6-12 lt/meal

canteen 4 lt/meal

41

Otherwise the data requirements are easy to fulfil and the results quite reasonable presented as the

following screenshots show.

Figure 17: Screenshots of the SWH Calculation Tool results page

5.7 fEaSiBiliTiES and PiloT ProjEcTSLearning by doing as well as generating cases with sufficient levels of satisfaction, trust and

commitment build a strong foundation for capacity building and word-of-mouth awareness creation

and marketing respectively. Hence, the project supported well selected pre-feasibilities, feasibilities

and pilot-installations.

5.7.1 fEaSiBiliTy STudiESThrough the cooperation with ATA (Albanian Tourism Association) and the AKBN (the National Agency

on Natural Resources), several feasibility studies were prepared for 3 private hotels (see Info Box), the

enterprises of the food industry (dairy, beer and fish) and for the dormitory of Epoka University.

5.7.2 loW-coST and EnErgy-EfficiEnT Social HouSingIn 2015 the project provided technical assistance to the National Housing Agency for a low-cost,

energy-efficient social house in Korca, which was a totally new initiative in the social housing area.

Following a memorandum of understanding, the project assisted the National Housing Agency for

the preparation of terms of reference for a competition for the engineering design of the low-cost,

energy efficient social house and during the evaluation panel. Further support was given for increasing

capacities of the architects and engineers regarding

energy efficiency and passive solar energy use in

buildings. As applicable, throughout 2017, energy

monitoring of three social housing, respectively

with and without EE measures, in Fieri and Korca

(to be build) will be undertaken for comparison and

evaluation, supported by the project. Following the

capacity buidings activities based on the lessons learnt

from Korca competition and best practice of no-cost/

low-cost measures to optimize the building energy

consumption in architects’ building design, a similar

competition was successfully lauched beginning

of 2016 with the participation of architecture

students and new proffesionals to provide for a

sustainable design of a social buiding.Figure 18: Architectural mock-up of the low-cost,

energy efficient social house in korca

LINKS • http://www.un.org.al/solar/

• http://www.al.undp.org/content/albania/en/home/oper-ations/projects/environment_and_energy/the-country-program-ofalbania-under-the-global-solar-water-heat.html

• http://www.akbn.gov.al/energjia-diellore/#

• ht tps : / / i t unes . app l e . com/us / app / so l a r - app /id792965104?ls=1&mt=8; (aplikacioni për llogaritjen epaneleve diellore për telefonat iPhone)

• https://play.google.com/store/apps/details?id=app.am.solar

aplikacioni për llogaritjen e paneleve diellore për telefonat

Android)

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5.7.3 EmiS and THE EnErgy EfficiEnT PuBlic BuildingSIn the framework of cooperation built under the Solar Water Heating Project with the Municipality

of Durres, a new municipal energy tracer platform is piloted in 2016 by the UNDP Catalytic Fund to

Durres Municipality, aiming the establishment of an efficient energy management system and other

management tools to monitor and control energy use by municipalities, organization of energy audits,

implementation of low-cost EE/RE measures (demo-projects), and preparation of bankable projects,

facilitating their financing through existing EE/RE Facilities in Albania.

5.7.4 fEaSiBiliTy of THE EnErgy rEHaBiliTaTion of a rESidEnTial mulTifamily BuildingThrough a collaboration with the Municipality of Tirana, a “Feasibility study, business plan and

elaboration of a supporting financing scheme for the rehabilitation of one multi-apartment residential

building identified by the Municipality of Tirana” was completed and presented for discussion in spring

2014. The EE measures considered were the thermal insulation of the building envelope including

efficient fenestration, and the integration of a collective solar water heating system, replacing the

existing electrical boilers.

The building considered was not subjected to an

energy audit. The results of a questionnaire made to

the building’s users and the electricity consumption

data obtained from the utility were the main sources

of information, along with measurements on the

electric boilers and air conditioning units of a small

number of apartments.

The simple payback analysis of the proposed EE

retrofit measures for the building envelope indicated

that the energy savings alone with the current

electricity tariffs and without other complementary

benefits are not likely to be attractive enough for

the residents to invest in such measures. Those

households that cannot finance the investment

by their own savings are likely to be further

The SWH system for the case of Hotel Theranda (a small boutique and business hotel in Tirana) was attractive to the owner for economic reasons as well as to receive special certification as an ecological hotel “ECOPROFIT” by CPC Austria. The SWH system with 28 m² collector area covers on average 63% of the hotel’s hot water consumption and in the summer months up to 98%.

The SWH system of a city hotel in Tirana

INFO BOX

62.2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Avg

Figure 26: Solar fraction of SWH system in Hotel Theranda

Figure 19: view from the multi-apartment residential building considered for the feasibility study

43

discouraged by the absence of affordable long term financing that would have maturity of 15-20 years

or even longer. Although the interest rates of the loans have somewhat come down during the past

few years, they are still likely to be too high for such relatively low financial return EE investments,

to which all building facade EE retrofits typically belong. For solar water heating investments with a

simple pay-back period typically around 10 years, the situation is more favourable.

Given the above, a number of findings and reccomandations were of particular interest with regards

to the EE legislation, reinforcing that the role of the public sector in supporting such measures remains

critical.

These include:

• Special purpose credit lines or revolving funds to offer financing for building EE retrofits with

low enough interest rates and long enough payback periods

• Complementary public grant support in the form interest rate subsidies, upfront investment

grants and/or tax allowances to improve the cash flow of the proposed investments and as,

needed, address the specific needs and affordability constrains of the low income population;

• Guarantee programmes that expand access to debt, thereby lowering the cost of financing

and enabling more comprehensive EE project development;

• Upgrading utility IT and billing systems to facilitate on-bill repayment by customers. Allowing

for long on-bill financing loan terms and broad scope of utility programmes to foster the

implementation of multi-measure EE projects;

• Eventually most importantly: Addressing the current institutional and eventual legal and

regulatory barriers as it concerns effective management and decision making procedures

in multi-apartment buildings, ownership issues and other related aspects that currently may

prevent proper maintenance of the buildings and a good representation of the associations

of apartment owners as credible partners and legal bodies to apply for financing from any

financing entities.

5.7.5 PiloT ProjEcTSBy targeting the public institutions like kindergartens, medical clinics, elderly and orphans houses,

social centres, dormitories, health clinics, public institutions, etc., to demonstrate the benefits of this

technology with energy savings and increased comfort, strong multiplication effects were achieved.

Due to the fact that the majority of those public institutions’ staff are women (both, management and

common ones), a lot is accomplished to increase their awareness and consider their particular needs

and suggestions: women appeared very interested and had clear voices in support to solar energy.

Good examples continue to come from social institutions approached with their female directors who

strongly impacted the decision making in favour of investments of SWH systems in their institutions.

On the other hand, the Project built strong partnerships with local municipalities, whom invested

almost 10% of the total investment of the pilot projects for the public buildings under their jurisdiction

either in kind, by providing parts of the SWH system, by adopting the technical designs for the public

institutions under rehabilitation, ahead of time, to allow for the installation of the SWH systems, when

the Project was ready. On the other hand, a lot of public awareness is achieved and capacity building

of the municipal sectors in charge with monitoring and repairing of the HVAC equipment is increased

as a guarantee for the sustainability of the installed systems, when the Project closes.

48 public buildings have benefited from installed SWH systems and technical assistance. Design and

installation was supervised by the project’s technical staff. On site trainings were delivered to departments

from local governments in charge with monitoring and maintenance of SWH systems at the hand-over of

several pilot projects. The Project also came up with the successful installation of SWH systems by the

National Shelter for Survivors of Domestic Violence in Tirana, addressing around 36 violated women/

children for which there was a mutual interest with the UN Gender Equality Program in Albania.

1vocational traininG centre in durres

swH pumped system, 3 m2 collector area and 200 lt Hot water tank.

2vocational traininG centre “tirana 1” in tirana


3vocational traininG centre in fier


4tHree GuestHouses in tHe alpine area of tHetHi

swH tHermosypHon system, 4 m2 collector area and 200 lt Hot water tank.

5national aGency of natural resources


6orpHans House in tirana

swH pumped system, 20 m2 collector area and 2000 lt Hot water tank, Heat pump as Back-up.

7HealtH centre in petrela


8HealtH centre in preza


9elderly House in tirana

swH pumped system, 18 m2 collector area and 2000 lt Hot water tank, Heat pump as Back-up.

10dormitory of tHe HiGH scHool “kolin GJoka” in lezHa

swH drain-Back system, 20 m2 collector area and 2000 lt Hot water tank, Heat pump as Back-up.

11day-care centre “BeselidHJa” in lezHa


12national sHelter for survivors of domestic violence


13day-care centre no.50 in tirana


14day-care centre no.30 in tirana


15HiGH scHool “eqerem caBeJ”, in tirana


16HiGH scHool “aHmet GasHi” in tirana


17kinderGarten no.1 in GramsHi

tHree swH tHermosypHon systems, 12 m2 collector area in total and 200/300/300 lt Hot water tanks.

18kinderGarten no.2 and day-care centre, in GramsHi


19kinderGarten no.9, in elBasani


20day-care centre no.1, in elBasani


21kinderGarten no.3 and day-care centre, in saranda

swH pumped system, 15,5 m2 collector area and 1000 lt Hot water tank.

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12m2

28m2

42m2

60m2

6m2

16m2

List of Institutions equipped with Solar Thermal System during 2011-2016 and Map of Albania showing the spatial distribution of the SWH pilot projects

22prescHool orpHans House in sHkodra


23sport centre in orikumi


24elderly House in fieri

swH pumped system, 21,1 m2 collector area and 2000 lt Hot water tank.

25development centre in sHkodra

two swH pumped systems, 2*8,44 m2 ollector area, 2*800 Hot water tanks.

26day-care centre no.2, BasHkia elBasan

two swH pumped systems, 2*6 m2 collector area, 2*500 lt Hot water tank.


tHree swH tHermosypHon systems, 3*4 m2 collector area and 3*200 lt Hot water tanks.



29dormitory of tHe HiGH scHool in GramsHi


30HealtH centre in ferm-clirimi, fier


31HealtH centre in komsi, Burrel




45

121m2

42m2 28m2

41m2

111m2

72m2

33daily centre for people witH disaBilities in lusHnJa


34development centre in Berat


35day-care centre in sHkozet in durres

two swH tHermosypHon systems, 2*4 m2 collector area and 2*200 lt Hot water tanks.

36kinderGarten “met Hasa” in durres


37kinderGarten “parafaBrikat” in durres


38kinderGarten “fidanisHtJa” in durres


39kinderGarten “sotir noka” in durres


40day-care centre no.4 in vlora


41kinderGarten “1 maJ” in vlora


42kinderGarten no.10 in vlora



two swH tHermosypHon systems, 2*4 m2 collector area and 1*200 + 1*300 lt Hot water tanks.



45day-care centre no.1 in durres


46day-care centre no.3 in durres


47kinderGarten “7 marsi” in durres


48

dormitory of tHe sports HiGH scHool “Bernardina qerax-Hi” in durres

two swH pumped systems, 2*12 m2 ollector area, 2*1000 Hot water tanks.

541SQuArE METErStotal area in Albania of installed SWH systems and TA in 48 different buildings

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5.8 moniToring of SWH SySTEmSTo support all the activities above with strong evidence on solar thermal yield, energy savings, but

as well as malfunctions and quality problems to learn from, most of the pilot projects were equipped

with monitoring systems. Thus in the end, all the project’s awareness raising and marketing activities,

as well as the claims on cost-efficiency of SWH systems and their GHG reduction impact can be

based on actually measured and verified data from an adequate sample of installed SWH systems of

different type, size and use for different purposes and in different type of buildings or municipalities.

Hence, the credibility and confidence of the targeted customers on the claimed benefits can be

maintained, thereby proving a strong basis for the sustainable continuing growth of the SWH market

in Albania.

The proven solar yield recorded in 7 demonstration projects

for the annual solar radiation on the tilted collector area ranges

between 1,480 and 1,670 kWh/m2. The solar yields of solar

thermal systems per m2 collector area were recorded between

390 and 580 kWh/m2, resulting in annual energy savings of

50 % of sanitary hot water in residential systems, and 70 % of

annual hot water demand in hotels and the service sector.

In addition, the compilation of such monitoring data can greatly

support the further optimization of the system design (thereby

reducing the costs) as well as help the project owners, system

designer and installers to become aware of the parts of the

sanitary hot water system, where energy is unnecessarily and

typically wasted. The benefits of such monitoring were already

demonstrated by the results of the monitoring of the two pilot

installations in the Tirana municipality, in which the vast energy

losses of especially one of the systems were assumed to be

due to long distant and poorly insulated water distribution/

consumption pipes and long-hours operation of the hot water

circulation loop. The same opinion was shared also by the SWH

system distributor, confirming that the raised issues are among

the most common sources of major energy losses in sanitary hot water systems. For further details

separate monitoring reports of these systems are available at the project office.

After accumulating more data from the monitored installations, this data can be used in further

awareness raising and training activities as well as for updating the default values in the web-based

software tool developed by the project to assists the design (dimensioning) and financial evaluation

of the SWH systems considered.

The monitoring data of solar thermal systems and hot water consumption helped improving the

technical specifications for the bid procurement of pilot projects, carried out by the SWH Project in

collaboration with the Public Institutions and Municipalities, allowing as well for better estimates of hot

water consumption. The Project is planning to provide the background analysis for the introduction of

new technical specifications for SWH systems under the green-procurement of public goods.

Another monitoring program was implemented to gain further insights of hot water use patterns

and potential energy savings based on the measured hot water consumption of a sample of 20

families in Tirana, Librazhdi and Korca regions, located in urban and rural areas. The monitoring

data were monthly collected for each and every family. The data included information on electricity

consumption coming from the boiler, hot water consumption and total electricity consumption as

billed by the electricity company.

20m2HoT WATEr SySTEM AT A HIGH SCHooL DorMIToryFor the dormitory of the high school “kolin Gjoka” in Lezha the existing electrical boiler was exchanged for a solar water heating system with 10 collectors with a total area of 20 m². As back-up system a heat pump was installed, working more efficiently than an electric boiler system.

47The monitoring showed that families with higher consumption are located in Tirana rather than in

other regions of Albania, explained by the fact of a higher standard of living in Tirana. Something to

be considered during the monitoring of hot water consumption in the Albanian families is the fact of

powering - off the electrical boilers for the main part of the day paving a different consumption curve

from the expected consumption.

Another fact to be considered is the cold water supply, which is secured two ways, through a tank

exposed to the sun or directly taken from the water supply network, shaping the inlet temperature

differently: the water tank temperature goes up to 30°C during summer time, leading to energy

savings. The consumption figures are also affected by the set temperature of the electrical boiler,

which was ranging from 50-85°C by monitored families.

The recommended value for hot water consumption in residential buildings is 35-40 [lt/day/pp], at

60/15°C, while for the monitored families this value hardly reached 20 [lt/day/pp], at 60°C. The share

of electrical boiler electricity consumption toward the total electricity consumption in the monitored

families was ranging 16-54%, with an average value of 36%.

The total monthly electricity consumption in the monitored families varies from 2,600 – 7,600 kWh/

year. The installation of a solar thermal system is economically feasible when the family electricity

consumption for hot water is at least 2,000 kWh/year. Even though the installation of solar system

might have a higher payback, it will have a strong impact with increasing the comfort living in the

residential sector.

Figure 20: Scheme of a thermal solar system and the required sensors for a detailed monitoring [9]

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5.9 caSE STudiES5.9.1 orPHan HouSE in Tirana The Orphans House takes care for 45 little children and is located in Sauk, Tirana. The institution

has two buildings, the main building houses facilities for the youngest children and the offices, the

other building serves for children from 2-5 years old. The main building has the largest hot water

consumption, hence it received the solar thermal system that is designed for the needs of 25 children

and around 15 personnel staff.

Previously a boiler fuelled with heating oil provided the hot water and now runs as back-up and for

space heating during the winter. The original set up was that the boiler heated a 500 litres storage tank

and the circulation system was operated 24 hours per day at maximum available temperatures, yet the

pipes were not insulated, resulting in very high losses.

The new sanitary hot water system was designed with solar energy as the primary source for heating

the water to be used in showers, toilets and in the kitchen. As alternative heat source with second

priority (back-up) a new air-to-water heat pump was installed near the technical building that feeds

directly into the storage tank. As another alternative supply with the third priority the existing heating

oil boiler placed in the technical building was configured to supply also into the hot water storage tank.

A controller checks on the availability of the different sources and draws energy according to the set

priorities, hence ensuring that the free solar energy is used whenever available thus ensuring highest

energy cost savings [16].

moniToring daTa 2013/2014The average specific solar yield is 500 to 600 kWh/m2/year, that is equivalent ot a solar conversion

rate of 35%. For comparison a photo voltaic system typically has a specific yield of 200 kWh/m2,

equivalent to around 12% solar conversion rate, hence almost 3 times lower.

49

Figure 21: Installation scheme of the SWH systems at the orphans House in Tirana

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INITIAL SITUATION:

• HeatingoilboilerfortHewHoleyear

• noback-upsystem

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NEW SYSTEM:

• 10collectors,20m²totalarea,14kwtH

• Hotwatertank–2000litres,witHinternalsolarHeatexcHanger

• back-upsystemwitHHeatpump(14.2kwtH,cop2.94)

• back-upsystemwitHexistingHeatingoilboiler

• mixingtapsatendusepoints

• HotwatercirculationloopandpumpwitHtemperaturecontrolvalve

Summary of key parameters for before and after:

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It is worth mentioning that the third supply alternative for hot water in this institution is the oil heater,

not beause solar and heat pump couldn’t cope with the demand, but to increase the security of supply

in cases when electricity cuttings were occuring as it was demonstrated by the monitoring data. On

the other hand, eventhough the SWH system is competed somehow by the heat pump (from its own

a very efficient system with a CoP of 2.84), on average the SWH-system efficiency has been 34%

during the monitoring period. Yet, again there is a huge gap between energy consumed, and the sum

of energy provided by the different sources, this means that 34 to 70% of the total energy supplied is

lost. These losses are a result of poor pipe insulation in the existing distribution hot water pipes, non-

stop operation of a circulation loop, mismatch of controller strategies for the different sources and

electric grid failures. If these losses could be reduced by 50% the solar fraction could theoretically be

above 40%.

One lesson learnt from the monitoring data of the Orphans House is: do not connect the heat pump

at the same level with the heat exchanger of the solar circuit, so that they do not compete each

other. This action would result to higher efficiency and solar fraction of the SWH system. Another

reccomandation was given to the institution after the monitoring data, to not run the oil heater unless

it was really necessary, which reccomandation was duly considered by the Orphans House.

Nonetheless, due to the reduction of oil consumption the monthly costs for the heat system were

drastically reduced. Before the installation of the SWH-system the monthly costs accounted to ALL

150,000. After installation of the new system the monthly energy bill was reduced by approx. 80 %

to ALL 28,100 on average. This accumulates to annual savings of ALL 1.5 million. Excluding the extra

monitoring equipment from the investment cost this result in a payback period of less than 3 years and

cumulated savings of over ALL 25 million over a 20 years lifetime.

Furthermore, if the third supply alternative would have been managed to work properly, meaning only

when necessary, only during electricity cut, the savings would have been even higher as shown in the

following graph.

Similar Solar Thermal Systems are installed in several guesthouses in Thethi, in the building of the

National Agency for Natural Resources, in several Vocational Training Centers throughout Albania, and

in a number of social public buildings in Tirana, Lezha, Shkodra, Fieri, Gramshi, Berati, Durres, Vlora,

Saranda, etc.

Figure 22: Results of the monitoring data for the orphan’s house showing monthly cost for DHW for the di�erent sources of supply over a period of 2 years (2013-2014)

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Monthly Cost for DHW_Circulating pumps [ALL] Monthly Cost for DHW_Heat Pump [ALL]

Monthly Cost for DHW_Heat Pump [ALL] Monthly average cost for DHW_ Elec.& Diezel [ALL]

Monthly average cost for DHW_ Elec. [ALL]

51

5.9.2 day-carE cEnTrE no. 30 & 50 in TiranaTwo day-care centres (No. 30 & 50) in Tirana for about 85 children each have been recently renovated

with funding from Tirana Municipality [7]. During the reconstruction, installations were also made to

supply the buildings with sanitary hot water. For this purpose, solar thermal panels were mounted on

the roofs of the day care centers with back up and complementary energy source provided by electric

heaters installed into the storage tank.

The day-care centre No. 30 is located in Tirana on “Pandi Dardha“ Str., Municipal Unit No. 10. The

dwelling consists of two above ground floors of about 350 m2 each. On the ground floor there are 8

toilets and 9 sinks. On the first floor there are 7 toilets with 10 sinks and 1 bath with shower. In total, the

building accommodates 80 children.

The day-care centre No. 50 is located in Tirana on “Pashe Hysa“ Str., Municipal Unit No. 1. The dwelling

consists of two above ground floors of about 300 m2 each. On the ground floor there are 7 toilet and

9 sinks. On the first floor there are 4 toilets with 5 sinks and 1 bath with shower. In total, the building

accommodates 85 children.

The draft decree “On Approval of Rules for Mandatory Installation of Solar Water Heating Systems in

Buildings” is suggesting for kindergartens and schools a reference value for consumption of 5 litres per

day and person. This would correspond to an average monthly net energy consumption of about 7

kWh per person or 630 kWh for 90 people with an average temperature difference of 40 oC between

the consumed hot water and incoming cold (fresh) water. This is relatively close to the observed

monthly average consumption.

Energy monitoring devices were not part of the original design, but were added into the system

afterwards. They consist of two heat meters (one for the solar circuit and one for the hot water

consumption) to measure and record the flow, input and output temperatures and the corresponding

heat consumption) and one electric meter to record the electricity consumption of the back-up

heating element.

The intensive monitoring equipment contributed to a total installation cost of ALL 930,000 for each of

the system. Hence, the specific installation cost of 78,000 ALL/m2 (600 EUR/m2) is considerably high.

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Figu

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53

moniToring daTa 2014/2015

Figure 24: Results of the monthly monitoring data for the day care centers

0

200

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800

1,000

1,200

0

250

500

750

1,000

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Solar system supply Consumption of hot waterElectrical back-up supply

The monitoring data of the two very similar SWH-system show that on average 50 % of the hot

water consumption can be covered. The systems were dimensioned to cover to a great extend

the heat demand in the summer months, which is clearly the case for August, were the solar

fraction was up to 95 %. The remaining heat demand was generated by the back-up system of an

electric resistance.

Day-Care Centre no. 30Day-Care Centre no. 50

Figure 25: Solar fractions for the hot water systems at the day care centers in Tirana

54.3%

0%

20%

40%

60%

80%

100%

46.4%

0%

20%

40%

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Solar Fraction for Day-Care Centre No.50 Solar Fraction for Day-Care Centre No.30

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The average specific solar yield is around 500 kWh/m2/year, which is a very good value for a

dusty city with partly shading from neighbouring buildings.

The detailed analysis of the data show furthermore that there is a considerable gap between

energy consumed, and energy provided by both the solar thermal system and the back-up. 25 to

45 % of the total energy supplied is lost. From the monitoring data available on these losses, the

main contributor is clearly the circulation loop. The circulation guarantees availability of hot water

at the point of use in a very limited time and thus increases convenience, but at cost of high thermal

losses since the hot water distribution system is always heated to 60 °C.

Anyway, even if there would not be a solar thermal system but a circulation loop, these high losses

would occur, thus energy savings are fully valid.

financial analySiS

Table 5: Summary of financial analyses for Day-care centres no. 30 & 50

day-care centre

#30

day-care centre

#50

swH system12 m² collectors; 1000 lt Hot water tank witH Back-up

`electric resistance, circulation loop & pump

swH system costs

(witH vat)933,023 933,023 all

Baseline enerGy

costs14.4 14.4 all per kwH

annual solar enerGy

Generation6,241 6,823 kwH

annual savinGs 90,868 98,249 all

simple pay-Back 10.4 9.5 years

In the amortisation calculation the initial investment for the new system is balanced against annual

energy savings. On average the pay-back period is 10 years. In comparison to other systems this

is a rather high pay-back period but it can be reasoned with the specific cost of the intensive

monitoring equipment. Yet, for the rest of the lifetime (e.g. 10 years) the system actively saves

about ALL 90,000 per year based on current energy prices.

55

5.9.3 alP guESTHouSES [11]In 2012, the UNDP Climate Change Programme, the GEF Small Grants Programme, the Ministry of

Energy, and the German Agency for International Cooperation (GIZ) worked together to provide

eleven guesthouses in the northern Albanian village of Theth with SWH systems for domestic use.

Theth is located in a natural park in the Albanian Alps. With more than 12,000 tourists in 2011, the

region is one of the most attractive spots around the country. The eleven thermosiphon systems

were financed by grants from the participating organisations. The beneficiaries co-financed the

installation of the solar water heaters.

All 11 systems were imported, since locally produced solar water heaters did not fulfil Solar

Keymark requirements by then. All of them are two-circuit thermosiphon systems, with glycol in

the solar circuit because of the harsh climate in the mountains.

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6FInAnCIAL InCEnTIvES6.1 Energy Efficiency and renewable Energy Fund

6.2 Financial mechanism for the energy rehabilitation of residential multi-family buildings

6.3 Private sector initiatives

For solar water heating investments, the situation is more favourable financially

57

It was one of the project’s main goals to have attractive end-user financing mechanisms (such as

specific purpose bank loans) or other delivery models, such as SESCOs or utility driven models

available.

At the beginning of the project several studies and analysis of current financing schemes in

the market and the situation on the demand side were undertaken by experts such as “Initial

Macroeconomic Analysis of the Energy Saving Potential in Albanian Residential Buildings [7],

or a “Feasibility of recommended financial mechanisms” [12] in order to provide the economic

background and outline suitable financing options for SWH financing. Furthermore, the presentation

of the Slovenian & Croation Eco-Fund and organisation of exchange visits of Albanian decision makers

to Slovenia and Croatia to profit from the positive experiences and lessons learnt with both Eco-

Funds were facilitated by the project.

6.1 EnErgy EfficiEncy and rEnEWaBlE EnErgy fundBased on above mentioned preparatory work, the project provided considerable advice on policies

and outlines for the Energy Efficiency and Renewable Energy Fund (hereinafter referred to as the

Fund) together with support for the RES law, NREAP and the regulations for Energy Performance

in Buildings. One major contribution was the development of a paper about the “Key strategic

considerations prior to the operationalization of the Albanian Energy Efficiency Fund” in March

2016 for the operationalization of the EE Fund.

But the legal framework got also delayed together with the enactment of the RES law. Since

the RES law got approved very recently, the project is assisting the Ministry in establishing the

procedures and criteria for the Fund to support solar thermal projects in particular. The Ministry of

Energy and Industry targets 2017 for the operationalization of the Fund. Hence the project can still

play a critical role in facilitating the actual operationalisation of the Fund and defining the criteria

and targets, under which solar thermal projects should be supported.

According to a recent strategic recommendation the following value added could be generated

for Albania by operationalizing the Fund:

• Allow for better implementing Albania’s (to be) adopted energy efficiency and climate

change policies, as well as obligations stemming from international agreements Albania

has signed. Without the Fund, implementation will very likely be much more limited.

• Allow for Green Climate Fund (GCF) National Implementing Entity (NIE) accreditation of

the Fund and with that, allow Albania to directly access GCF finance.

• Allow for gradually building the capacity of Albanian experts in project development,

project management and project implementation. So far, many of these skills were provided

by development partners and foreign experts provided by them (e.g. this project).

• Allow for gradually developing the engagement of Albania’s commercial finance sector in

energy efficiency and climate change financing. So far, the sector did rarely get involved

in such type of finance and has little capacity to do so.

• Allow for tapping into significant additional foreign sources of finance (both, public and

private) for energy efficiency and climate change investment projects, sources which

could not be accessed without a Fund.

Anyhow, the technical support given in the frame of the project so far will enable the project

developers of SWH systems to be among the first applicants.

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6.2 financial mEcHaniSm for THE EnErgy rEHaBiliTaTionof rESidEnTial mulTi-family BuildingSTogether with the city of Tirana financial mechanism on the municipal level applicable for the energy

rehabilitation of residential multi-family buildings were discussed. As a basis for this discussion a

feasibility study [13] was contracted to evaluating the perspectives of such a funding scheme. For

different financing options the required down-payment (or up-front grant) as share of the initial

investment to maintain loan payments equal to annual savings with different loan maturities and

interest rates were analysed by the authors. In the absence of any financing mechanism, the study

results showed that EE retrofit measures for the building envelope are not likely to be attractive

enough for the residents to invest in such measures. For solar water heating investments with a

simple pay-back period typically around 10 years, the situation is more favourable. For this, the

type of green loans already offered in Albania ay provide a more attractive financing source.

6.3 PrivaTE SEcTor iniTiaTivESOn green and efficient technologies or support to SMEs there are several specific financing

schemes and related programs/projects in the Albanian market operated by financial institutions

and multilateral donors. They range from direct intervention in the market through providing

financing mechanisms mainly from financial institutions to indirect interventions through technical

assistance programs. Private banks are offering energy efficiency (incl. solar thermal) loans for

private with 1 % lower interest rate. For example, ProCredit Bank launched the successful Eco

Loans product on energy efficiency in order to promote investments in businesses and families

leading to more efficient use of energy, savings in electricity consumption bills and helping protect

the environment.

The maturity of the Eco Loans is up to 180 months; the annual loan interest rate is 1 percentage

points lower than standard business loans. Regarding the collateral, ProCredit accepts pledges

up to 5 years and mortgage guarantees for terms over 5 years. By 2011, ProCredit had 590 loans

amounting to EUR 950.000. Most of these loans go to private houses. In December 2015, the

portfolio of the Eco Loans for households was around EUR 1.10 million, while the portfolio of the

Eco Loans in businesses reached up to EUR 14.77 million. The volume of the Eco Loans portfolio

increased by 26 % compared to 2014, and is 9.1 % of the total bank loan portfolio.

Among the lenders from the business sector, hotels used loan proceeds to install solar panels thus

confirming the interest from such end users on solar panels usage.

As the public financing schemes got delayed, the project supported the existing schemes by creating

The average system cost is around ALL 18,000 – 26,000 per m² (140-250 EUR/m²) (including installation), with an expected minimum lifetime of 15-20 years. As the majority of domestic hot water systems in Albania are operated using electricity the SWH-system costs have to compete with the electricity price. Based on the assumption of an electricity price of 12.6 ALL/kWh the payback period for a SWH system is about 3 years. The Internal Rate of Return is at 40 % that compares to a savings account with a starting capital of ALL 80,000 (~ EU 600) and 40 % interest rate. The Net Present Value is about EUR 2,000 savings for the lifetime (20 years) of the system.

Costs and economic viability

INFO BOX

59

awareness about them. In cooperation with the Albanian Banks Association specific financial products

have been analysed and training to lending officers was provided. To make larger investments

bankable specific terms of references with quality and guarantee criteria have been prepared, in

order to facilitate the approval process of lending.

Direct financial engagement of the solar thermal system supplier was also prepared and brought

up several times during project development, but unfortunately did not realize so far. Although the

user side (industrial applications of solar thermal hot water) was interested in ESCO type of financing

in individual cases, the solar thermal system supplier did not consider this as a feasible financing

arrangement from his point of view with respect to the required amount of investment and the related

financial risks. As alternative the project provided advice on energy performance contracting (EPC)

modality, which reduces the risks related to quality and performance of the system and hence

financial savings.

At better time in the future, the earlier idea about utility driven financing schemes for residential

customers could also be re-woken, under which the residential SWH clients would be able to

gradually pay back the investment through regular electricity bills.

140-250Eur/m²

15-20yEArS

2000Eur/20yrS

COSTS ANDINSTALLATION

LIFETIME SAVINGS

Figure 26: Historic development of the lending volume of the Eco Loans by the ProCredit Bank

-

2

4

6

8

10

12

14

16

18

2009 2010 2011 2012 2013 2014 2015

Vol

ume

(in

mil

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Eur

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7THE WAy ForWArD7.1 Market development

7.2 Awareness, capacity and quality

7.3 Business and Investment Climate

7.4 Climate financing

There is further a high potential for space heating and cooling and industrial applications

61

7.1 marKET dEvEloPmEnTThe project built on a couple of very positive background facts, foremost the availability of solar

energy, existing market experience of a few producers, installers and importers, and some previous

development projects on renewable energy and solar thermal technology. It was high timing to set

the framework conditions and agenda for the next years with the RES law and NREAP, working on

quality improvements through capacity building and certification schemes, creating awareness and

confidence through pilot installations and performance monitoring of the SWH systems, and ensuring

financial viability of investments. Furthermore, the coincident of revenue enforcement for electric

energy, which put a price on electricity for many consumers, contributed to the positive market

development. So it is no surprise that the goals for market penetration in terms of area of installed

solar thermal collectors have been achieved. Yet, relative to the penetration rate for solar thermal

capacity per capita in countries like Cyprus, Greece or Austria, there is plenty of space for further

improvement of the market. Besides solely heating of water, there is further a high potential for space

heating and cooling and industrial applications (e.g. food, beverage, and textile) of solar thermal

energy. To achieve such a high usage rate of solar thermal energy, the confidence of the consumers,

the financial viability and the availability of high quality and innovative key components are crucial.

Through the input from the project the basis for such a development was successfully built.

Attention has to be given to technologies such as photovoltaic (PV) and compressor systems for

heating and cooling (heat pumps, air conditioning and combi-systems). So far PV was practically

illegal, but with the new RES law this is history, and hence the competition for funds and installation

area will start as experienced in other European countries.

It will be crucial to see institutional backing taking over general tasks that the UNDP project team

so far had worked on, like market monitoring of solar thermal installations (the project distributed

questionnaires twice a year and submitted the gathered information to the NANR, ESTIF, and IEA-

SHC), product independent awareness raising and marketing, consulting and advice of stakeholders,

and providing information and facts for decision makers on policies, regulations and funding. The

SWH Industry Association as well as the National Agency responsible for renewable energy will have

to play key roles on this scene.

One major step towards consumer information and transparency will be the introduction of labelling

schemes for solar thermal systems and other heating and cooling appliances as well as energy

efficiency technologies according to EU standards and regulations.

National implementation of building performance regulation schemes and energy auditing or energy

management systems for industry will further spur the market for energy efficiency and renewable

energy such as solar thermal technology.

7.2 aWarEnESS, caPaciTy and qualiTyIn the course of the project implementation, a number of professionals have been trained and different

public awareness raising events organized. In order to strengthen their impact and sustainability, the

project exit strategy [10] suggests the following complementary activities for the remaining project

implementation period:

• Since a good set of training materials has already been developed, repeating some of that training

for new graduates and students entering the professional market could be done together with

an effort to integrate at least some of these trainings into the regular curricula of different

educational entities, in the case some gaps still exist.

• In possible cooperation with Tirana Municipality, and targeting the newly appointed Supervisors,

provide for a specific training on the subject of energy efficiency and SWH systems in the

private buildings.

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• Targeting high schools, provide trainings for both teachers and students in practical energy

efficiency solutions, including the installation of SWH systems, as means to increase the life

quality and provide for energy savings;

• Strengthening the monitoring of the performance of and data collection from the already

existing and planned new SWH systems for project’s future awareness raising and training

activities as well as for updating the default values of the SWH calculation software developed

by the project.

• Outlining the structure and content, and concluding the institutional agreements for the

development, hosting and regular updating of a national solar thermal website to become a

central clearing house of solar thermal related information in Albania, including storing and

facilitating access to all key reports, awareness raising and training materials prepared during

the project, key contacts, links to other related sites as well as regularly updated market data

on the development of the Albanian solar thermal market in general.

• After the adoption of the related SWH specific secondary legislation supporting the RES law,

finalizing the design and launching a full-fledged public awareness raising and marketing

campaign in co-operation with and cost-shared by the private sector.

• Strengthening/reinitiating project efforts in promoting solar thermal market in specific

subsectors such as tourism and other industry. Specific activities to be supported may include,

free or cost-shared initial energy audits and for the tourism sector promotion of solar thermal

together with eco-labels and other green tourism certificates.

• Evaluation of the impact of the project activities that have supported the development of new

curricula and related training facilities in the professional schools in terms of their sustainability

and to what extent the students have ended up in working in the solar thermal related fields

and have benefitted from the taught subjects in their current work. In addition to that, provide

a study targeting the VTCs with SWH courses to (i) further check their systematic needs,

trainings’ results and the future opportunities for trained students to enter the market and (ii)

check the opportunities to re-integrate the long-term unemployed or low-skilled people into

regular job market by qualifying them to advise households on saving power, heat and water.

• Using the acquired information for further development of the curricula, for instance by including

lessons delivered by experienced installers working in the solar thermal business and familiar

with the common problems faced during the installations. Also strengthening the linkages of

the curricula to the planned certification scheme of the installers.

• Exploring other opportunities to enhance the practical training opportunities of the current

and future solar thermal installers by not relying only on “schematic” teaching on how the

connections etc. should be done, but providing hands on training and illustrating the common

mistakes and correct working methods by experienced installer(s) with verified correct

practices.

7.3 BuSinESS and invESTmEnT climaTERegarding the aspect of finance, especially the lack of available financial resources for the upfront

investment, there is no yet any general public subsidy scheme or no proven ESCO modality in place.

Great hopes are put on the Energy Efficiency and Renewable Energy Fund to support investments,

but the fund first needs to have get operationalised and second it needs to be filled (see climate

finance below for a possibility). On defining the criteria and targets, under which solar thermal

projects should be supported, work is still required, among others on the following specifics:

• Drafting any complementary secondary legislation required for the operationalisation of the

Fund and the criteria under which solar thermal projects will be supported.

• Updating the required background studies to assess, for instance, the solar thermal market

63

potential in different sectors.

• Awareness raising of the targeted end users on the financing opportunities provided by the

Fund.

• Training and capacity building on structuring financing for solar thermal projects in general by

taking into account the resources of the Fund, other available financing sources as well as

opportunities provided by new financing and delivery models such as Energy Service Contracts,

Energy Performance Contracts and, as applicable, new utility driven models, subject to further

consultations with the public authorities concerned.

Meanwhile, a study on the macro-economic potential for energy savings in the residential sector in

Albania, considering the potential for solar thermal systems, is prepared. [14]

7.4 climaTE financingWithin the recent developments in the global climate change discussions under UNFCCC new

mechanisms for financing climate change mitigation and adaption are framed, such as the Green

Climate Fund (GCF). As described in chapter 6.1 on the RE/EE Fund, this fund could play a crucial role

in accessing additional funds for climate change mitigation measures such as the use of renewable

energy including solar thermal applications.

Further there is the concept of Nationally Appropriate Mitigation Actions (NAMAs) that presents

an opportunity for developing countries to seek finance, technology and capacity building support

for the implementation of actions to mitigate climate change. The NAMA mechanism is explored in

line with the findings of two fully prepared NAMAs pending [14] to be registered in the International

Registry of NAMAs11 on

i) Supporting the implementation of Energy Efficiency Action Plan in Residential and Service

Sector and

ii) Use of non-hazardous waste for replacing the fossil fuels in cement industry.

Based on this, further funding to continuous development and implementation of solar thermal

energy in the country is foreseen.

11. http://www4.unfccc.int/sites/nama

The Country Program

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references

[1] iea. IEA Sankey Diagram. albania final consumption (2010). [Online] 28 02 2016. http://www.iea.org/

sankey/#?c=Albania&s=Final%20consumption.

[2] rickerson, wilson. solar water Heating techscope market readiness assessment. s.l. : UNEP Division of Technology,

Industry and Economics, 2014.

[3] franz mauthner, werner weiss. solar Heat worldwide, markets and contribution to the energy supply 2012. Gleisdorf :

IEA Solar Heating & Cooling Programme, 2014.

[4] B. oettli, c. völlmin. market transformation for swH in albania - swiss assitance to the undp/Gef-programme.

Zürich : REPIC Plattform, 2012-08-15.

[5] mema, endrit. Global Solar Thermal Energy Council. albania: new energy law shows country’s strong commitment to

solar thermal. [Online] 25 06 2013. [Cited: 04 01 2016.] http://www.solarthermalworld.org/content/albania-new-energy-law-

shows-countrys-strong-commitment-solar-thermal.

[7] rutanen, vesa. report on the initial monitoring results of the swH systems installed in day care centers number 30

and 50 owned by the municipality of tirana. Tirana : UNDP Albania, Sept. 2014.

[8] undp. solar thermal obligations for public Buildings in the municipality of tirana. Tirana : s.n., Sept. 2013.

[9] Bestenlehner, d. GswH albania: deliverable 1 under alB-090-2011. Stuttgart : SWT, 2012.

[10] undp albania. undp/Gef swH project exit strategy. Tirana : UNDP, 2014.

[11] mema, endrit. Global Solar Thermal Energy Council. albania: solar water Heaters in albanian alp Guesthouses.

[Online] 22 09 2012. [Cited: 04 01 2016.] http://www.solarthermalworld.org/content/albania-solar-water-heaters-albanian-

alp-guesthouses.

[12] dabulla, adrian. report on the feasibility of recommended financial mechanisms. Tirana : UNDP Albania, 2011-09-13.

[13] santos, tiago queiroz and rutanen, vesa. feasibility study, business plan and elaboration of a supporting financing

scheme for the rehabilitation of one multi-apartment residential building identified by the municipality of tirana. Tirana :

UNDP, 2014. Project ID 00062827).

[14] undp albania. pir 2015. Tirana : UNDP, 2015.

[15] schober, Hanna. Global Solar Thermal Energy Council. albania: solar water Heaters project increases market size

(2008). [Online] 14 01 2010. [Cited: 04 01 2016.] http://www.solarthermalworld.org/content/albania-solar-water-heaters-

project-increases-market-size-2008.

[16] undp albania. UNDP. solar water Heating systems installed at the orphan House in tirana. [Online] 12 03 2013.

[Cited: 04 01 2016.] http://www.al.undp.org/content/ albania/en/home/presscenter/articles/2013/03/12/solar-water-heating-

systems-installed-at-the-orphan-house-in-tirana.html.

[17] costa, raquel ponte. Global Solar Thermal Energy Council. solar water Heating techscope market readiness

assessment report and analysis tool. [Online] 12 01 2015. [Cited: 04 01 2016.] http://www.solarthermalworld.org/content/

solar-water-heating-techscope-market-readiness-assessment-report-and-analysis-tool.

[18] Hai, amr. Global Solar Thermal Energy Council. solar water Heating calculation tool. [Online] 15 05 2015. [Cited: 04

01 2016.] http://www.solarthermalworld.org/content/solar-water-heating-calculation-tool.

[19] co-plan: Study on the assessment of Renewable Energy Sources Potentials in Albania, Institute for Habitat

Development. http://aea-al.org/wp-content/uploads/2014/07/study_on_

assessment_of_res_potentials_in_albania.pdf.

[20] Data from UNDP SWH Project.

[21] Second & Third National Communication of Albania in the frame of UNFCCC. http://www.al.undp.org/content/albania/

en/home/operations/projects/environment_and_energy/third-national-communication-of-albania-to-the-united-nations-fr.html

[22] Draft Energy strategy.

[23] RES Law. http://qbz.gov.al/botime/fletore_zyrtare/2017/PDF-2017/26-2017.pdf

[24] National Renewable Energy Action Plan. http://www.qbz.gov.al/botime/fletore_zyrtare/2016/PDF-2016/7-2016.pdf

[25] Law on Energy Performance in Buildings. http://www.qbz.gov.al/botime/fletore_zyrtare/2016/PDF-2016/226-2016.pdf

Contents

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Links

• http://www.akbn.gov.al/energjia-diellore/#

• http://www.al.undp.org/content/albania/en/home/operations/projects/environment_and_energy/the-

countryprogram-of-albania-under-the-global-solar-water-heat.html

• http://www.solarthermalworld.org/taxonomy/term/44271

• https://www.thegef.org/gef/country_profile/AL

• www.solarkeymark.org

• http://www.un.org.al/solar/

• https://itunes.apple.com/us/app/solar-app/id792965104?ls=1&mt=8; (aplikacioni për llogaritjen e

paneleve diellore për telefonat Iphone)

• https://play.google.com/store/apps/details?id=app.am.solar (aplikacioni për llogaritjen e paneleve

diellore për telefonat Android)

the country programme of albania under the global solar water heating market ... · 2019-11-04 ·...

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