Appendix 1

Department of Energy Efficiency and Savings

February 2016
Version 1
MINISTRY OF INDUSTRY AND TRADE

National Energy Efficiency Action Plan of the Czech

Republic
pursuant to Article 24 (2) of Directive 2012/27/EU of the European Parliament
and of the Council of 25 October 2012 on energy efficiency
Contents
1. Introduction
2. Overview of national energy efficiency targets and savings
2.1 National energy efficiency targets up to 2020
2.2 Other energy efficiency targets
2.3 Final energy savings
3. Policy measures to implement the Directive
3.1 Horizontal measures
3.1.1 Energy efficiency obligation schemes and alternative measures
3.1.2 Energy audits and energy management systems
3.1.3 Metering and billing
3.1.4 Consumer information programmes and training programmes
3.1.5 Availability of qualification, accreditation and certification schemes
3.1.6 Energy services
3.1.7 Other energy efficiency measures of a horizontal nature
3.2 Energy performance of buildings
3.2.1 Legislative framework of energy performance of buildings
3.2.2 Further improvements in the energy performance of buildings
3.3 Energy efficiency of the buildings of public bodies
3.3.1 Buildings of central government authorities
3.3.2 Buildings of other public bodies
3.4 Measures to improve energy efficiency in industry and transport
3.5 Promotion of efficient heating and cooling
3.5.1 Comprehensive assessment
3.5.2 Other measures
3.6 Energy transformation, transmission and distribution and demand response
3.6.1 Energy efficiency criteria for network tariffs and regulations
3.6.2 Facilitation and promotion of demand response
4. List of annexes
4.1 Annex 1: List of alternative policy measures under Article 7, and quantification of the energy
savings made in final consumption by such measures
4.2 Annex 2: Detailed description of individual energy-saving measures under Article 7
1. INTRODUCTION

More than 50% of current energy consumption in the Czech Republic is covered by
domestic primary energy sources. The energy import dependence indicator (including
nuclear fuel) is therefore less than 50%, one of the lowest in the EU. The current EU
average is approximately 60%. The Czech Republic is fully self-sufficient in the production
of electricity and heat, in terms of sources. The structure of electricity sources is stable.
The Czech energy sector is dominated by coal-fired installations, which, as baseload
plants, supply almost 60% of electricity and a large proportion of heat (through district
heating). The promotion of renewable energy sources in recent years has increased the
share of renewable sources other than hydropower, but despite high subsidies they have
failed to displace any significant portion of fossil-fuel installations. The share of heat
from domestic fuel is about 60%, and more than 80% in heat supply systems. In the
Czech Republic, the combined generation of electricity and heat is well established. The
share of heat generated in combined electricity and heat generation accounts for
approximately 75% of centrally produced heat.

Until 1989, the energy intensity of the Czech economy, especially industry, increased.
This was caused by underinvestment in production facilities, the predilection for the
development of heavy industry, and state-regulated energy prices, which failed to
respond to global changes.

Energy intensity is one of the factors affecting the competitiveness of businesses and,
indeed, the economy. The post-1989 economic transition has included a sharp increase
in energy efficiency. This change is evidenced by the graphs below. They show that the
Czech Republic, in part because of its economic structure, is fast approaching the EU
average, in terms of energy efficiency. It is important to emphasise here that, in the
Czech Republic, there are two simultaneous processes that contradict each other in
terms of energy intensity. While the technological demands of the economy are
contracting, the standard of living – which is well below that of developed neighbouring
countries (Germany, Austria) – is increasing. As the standard of living rises, the
consumption of energy is increasing among households, due to an increased standard of
living.

If we compare the period over which the economy’s energy intensity worsened
(spanning approximately 50 years) and the time between the beginning of the transition
to a market economy and the present (about 23 years), we are compelled to note that
changes related to improvements in energy efficiency since 1989 have been very rapid,
and that substantial progress has been achieved.

Industry (including the energy sector) accounts for about 30% of gross value added, and
therefore the energy intensity indicators are higher than the EU average. In the Czech
Republic, heavy industries such as metallurgy and engineering account for a large
proportion. This fact is compounded by the Czech Republic’s location in the centre of
Europe, making it a transit country.

The downward trend in energy intensity since 1990 has been uninterrupted. When
compared to the year 2000, the energy intensity of the Czech economy has fallen by
19.0%. The pace of the decline in energy intensity (2.5% in PPP, IEA Czech Republic 2010
Review) for the period since 1990 has been among the highest in Europe (the European
average in the same period has been 1.5%). In 2011, the energy intensity of the economy
was 505.6 GJ/CZK thousand (2005 constant prices) and was reduced by 3.3% year on
year. In the longer term, there has been an overall decrease in energy intensity by 23.6%
since 2000 (when this value was 661.8 GJ/CZK thousand). Broken down by sector,
industry and transport account for the largest share of the energy intensity of the
economy. While the energy intensity of industry has been steadily declining in the long
term, energy intensity in the transport sector has either expanded or fluctuated.

To increase energy efficiency, the Czech Government has long made active use of
regulatory instruments (legislation), economic instruments, and awareness. Economic
instruments draw on both national resources and Structural Funds. The Czech Republic,
in accordance with the Europe 2020 strategy for smart, sustainable and inclusive growth,
and the Partnership Agreement for the 2014-2020 programming period, promotes the
use of significant funding from the future multiannual financial framework for energy
efficiency and support for business, to help to ensure Europe’s competitiveness.

Final energy consumption per capita in 2013

[GJ/cap] in the EU

Source: Eurostat

Bulgaria

Greece

Portugal

Hungary
 Croatia

Poland

Lithuania

Spain

Cyprus

Latvia

Italy

Slovakia

United Kingdom

Estonia

European Union

Czech Republic

Ireland

France

Slovenia

Denmark

Germany

Belgium

Austria

Sweden

Finland

Luxemburg

Final energy intensity in purchasing power parity and with a climatic correction in 2013 in
the EU (MU/2005 prices in EUR)

Source: Eurostat
Ireland

United Kingdom

Spain

Portugal

Greece

France

Italy

Germany

Denmark

Cyprus

European Union

Lithuania

Hungary

Poland

Austria

Belgium

Czech Republic

Sweden

Slovakia

Slovenia

Croatia

Bulgaria

Latvia

Luxemburg

Estonia

Finland
Primary energy intensity in purchasing power parity and with a climatic correction in 2013
in the EU (MU/2005 prices in EUR)

Source: Eurostat

Ireland

United Kingdom

Portugal

Spain

Denmark

Italy

Cyprus

Greece

Lithuania

Austria

Germany

European Union

Luxemburg

Latvia

France

Croatia

Hungary

Slovenia

Poland

Slovakia

Sweden

Czech Republic

Belgium
Finland

Bulgaria

Estonia

Ratio of final and primary energy intensity in 2013 in the EU (%)

Source: Eurostat

Estonia

Bulgaria

Belgium

Czech Republic

France

Sweden

Slovakia

Poland

Greece

Hungary

European Union

Germany

Spain

Netherlands

United Kingdom

Slovenia

Portugal

Cyprus

Italy
Lithuania

Croatia

Denmark

Austria

Ireland

Finland

Latvia

Luxemburg

Energy intensity / GDP – GH per CZK 1000 in 2010 prices

Source: Eurostat

Comments on the charts:

The charts indicate that the Czech Republic has been increasing its energy efficiency since the
change of its economic system in 1989, and, as compared to other EU Member States, its
position is around the average of old Member States (EU 15).
2. Overview of national energy efficiency targets and
savings

2.1 National energy efficiency targets up to 2020

The Czech Republic’s national indicative targets have been set in line with the document
‘Update of the Czech Republic’s State Energy Policy’ (the ‘Update’), which was approved by
Government Resolution No 362 of 18 May 2015. This is a key strategic document which aims
to ensure a reliable, safe, and environmentally friendly energy supply for the needs of the
population and economy of the Czech Republic, at competitive and affordable prices under
standard conditions.

Further to the passing of Directive 2012/27/EU of the European Parliament and of the
Council on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and
repealing Directives 2004/8/EC and 2006/32/EC (hereinafter referred to as the “Directive”),
the Czech Republic has launched a process to transpose it into national legislation. The Czech
Republic was obliged to transpose the Directive by 5 June 2014. Given the time-demands of
the process of implementing the Directive in the laws of the Czech Republic, full transposition
was completed as at 1 July 2015. The Czech Republic, wishing to fulfil its EU commitments in
a due and proper manner, set the indicative national target based on discussions with the
European Commission.

The Czech Republic views the indicative national target defined in Article 3 of Directive
2012/27/EU as a framework, non-binding target that does not establish any specific and
legally enforceable obligation for either the Czech Republic or other entities.

The setting of targets up to 2020 is affected by several factors and assumptions that may
evolve over time due to external factors or for other reasons beyond control. In the future,
any significant change in these input parameters could necessitate a review of the indicative
national targets by the Czech Republic.

By reference to current analyses, the Czech Republic’s national indicative target was set, as
at 31 January 2015, at 50.67 PJ (14.08 TWh) of new final energy savings by 2020.
Historically, the Czech Republic has compiled its energy balance in accordance with IEA
methodology, which it also applies to the Updated State Energy Concept. In response to
reproaches from the European Commission, the calculation method was changed in the
update of the 2014 NAPEE, i.e., the Czech Republic’s target is calculated based on the
Eurostat methodology. Due to that change, there is a difference of 2.89 PJ between the
value calculated using the IEA methodology (47.78 PJ) and using the Eurostat methodology
(50,67 PJ). These differences are due to the methodological differences between the two
methods.

PRIMES projections (based on Eurostat methodology) indicated that final consumption in

2020 would be 1,324.87 PJ, i.e., 31,644 Mtoe, without taking into account the effect of
savings from the implementation of this Directive. If a 20% decrease (i.e., the EU target) is
reflected in this level of consumption, the target value of final consumption amounts to
1,059.89 PJ, i.e., 25,315 Mtoe. Therefore, we believe that the Czech Republic’s target makes
an adequate contribution to the EU’s overall target in this area.

Article 7 of the Directive establishes a binding end-use energy savings target by 2020
equivalent to achieving new annual savings of 1.5% of the annual energy sales to end
customers. After converting this information to absolute figures and factoring in all rebates
established by the Directive, the target stands at 50.67 PJ of new annual savings by 2020.

At the same time, in view of the large mandatory final energy savings under Article 7, the
Czech Republic has set a value consistent with Article 7, as its national indicative target under
Article 3.

The Czech Republic’s national indicative target has thus been set at 50.67 PJ (14.08 TWh) of
new final energy savings by 2020.

The obligation to assess progress towards the fulfilment of the indicative target arises from Article
24 of the Directive, which sets out for the Member States an annual obligation to file, by 30 April, a
report on the progress achieved in the fulfilment of national energy efficiency targets. Given that
the NAP EE is a strategic document that sets out the policy framework of the Czech Republic in
attaining energy savings, an assessment of the measures contained in that material is the
contents of this report. Each measure is evaluated in terms of its contribution to the fulfilment of
the 2020 target. On the basis of this report and of the work of the Coordination Committee for the
Fulfilment of the NAP EE, to which the Government Resolution pertaining to the document
“Control findings of the Office of the Auditor General for inspection No 15/02 “State financial funds
provided in support of energy savings”” assigns the obligation to present to the cabinet, once a
year, information concerning the development in the sphere of energy savings and their
promotion, and the effectiveness of the measures implemented, the Government of the Czech
Republic is informed about progress in terms of energy efficiency increases. The Ministry of
Industry and Trade is responsible for formulating strategies for increasing energy efficiency,
coordinating the activities of the sectors concerned, reporting to the European Commission as well
as the Government of the Czech Republic, and also for the fulfilment of tools for increasing energy
efficiency which are within its competence, such as the thorough transposition of the energy
efficiency Directive, the set-up of OPPIK, the set-up of a functional system of voluntary
agreements, the promotion of the use of energy services, and application of pressure for a change
in the legislative framework, such as to enable the government sector to use the services in full.
The relevant ministries are responsible for the fulfilment of measures in other areas.
2.2 Other energy efficiency targets

General or secondarily established targets for energy savings/energy efficiency are included
in the following national documents:

 National Reform Programme

 International Competitiveness Strategy
 State Energy Policy
 Partnership Agreement for the 2014-2020 programming period
 Raw Material Policy
 Secondary Raw Material Policy
 State Environmental Policy
 Climate Protection Policy
 Sustainable Development Strategic Framework
 Territorial Development Policy
 2014–2020 Regional Development Strategy
 2014–2020 Transport Policy Strategy
 2014–2020 Concept of State Tourism Policy in the Czech Republic
 National Initiative Industry 4.0
 National Programme for Emission Reduction
 National Action Plan for Clean Mobility

The State Energy Concept has applied general pressure on reducing emissions produced by
the energy sector, coupled with pressure to increase efficiency and savings among producers
and consumers alike. Priority II is to increase energy efficiency and energy savings
throughout the economy and among households. Increased energy efficiency and energy
savings are a common denominator for all three components of the energy strategy, i.e.,
security, competitiveness, and sustainability. Higher efficiency has been prompted by
requirements associated with the decreasing availability of our own disposable sources of
energy and the Czech Republic’s industrial focus. The above indicates that the Czech
Republic must keep to, and where appropriate accelerate, the trend of declining energy
intensity in the generation of GDP, and must aim for a situation where, after 2020, energy
intensity in the various sectors is on par with comparable economies in the EU.

2.3 final energy savings

Pursuant to Article 27 (1) of the EED, Member States must comply with the requirements of
Article 4 (1) to (4) of the ESD on the general end-use energy savings target of 9% by 2016. To
this end, a top-down method has been employed, which has required maximum possible use of
information from the ODYSSEE database of internationally comparable energy efficiency

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indicators (http://www.indicators.odyssee-mure.eu/energy-efficiency-database.html). At
the time of the valuation, indicators up to 2010 were available.

Evaluation employing the top-down methodology was derived directly from Standard
EN 16212 – Energy Efficiency and Savings Calculation, Top-down and Bottom-up Methods.
The savings in each area were evaluated. Cross-cutting measures were not quantified by
means of the top-down method, because the indicators, or more precisely the values of the
indicators of cross-cutting measures, are already included in sectoral measures. The
agriculture sector was not assessed separately, because of the paucity of statistics.

Savings calculated by means of the top-down method for the period from 2008 to 2010,
compared to the savings planned in NAPEE II, are presented in the following table

Table 1: Summary of energy savings proposed in NAPEE II and evaluation by means

of the top-down method
Analysis of
NAPEE II plan implementation by
Measures in sectors
TJ, 2008–2010 means of the top-down
method, TJ, 2008–2010

Households 4,903.2 13,056

Tertiary 1,947.6 11,095

sector/services

Industry 1,796.4 3,078

Transport 3,715.2 - 132

Agriculture 230.4 not assessed

Cross-cutting 7,131.6 n.a.

measures

Total 19,724.4 27,097

Applying the top-down method in the use of the best indicators available and taking account
of available statistics, the household sector was found to have saved 13 PJ in 2010,
compared to 2008. Sizeable savings of 11 PJ were also made in the service sector. In
contrast, the transport sector reported no energy savings. This can be attributed to
passenger road transport, which accounts for the highest share of overall final consumption
throughout the transport sector, and where energy efficiency worsened. This impaired
energy efficiency was set off at least partially by freight road transport, where the energy
efficiency has quite plainly improved. Other modes of transport (rail, air, water) made only

14
minor contributions to overall trends in energy efficiency in the reporting period. Overall,
the quantified NAPEE II plan was exceeded.

3. Policy measures to implement the Directive

3.1 Horizontal measures

3.1.1 Energy efficiency obligation schemes and alternative measures

Overall savings target

Article 7 of the Directive establishes a binding end-use energy savings target by 2020
equivalent to achieving new annual savings of 1.5% of the annual energy sales to end
customers.

The basis of the calculation of the binding target under Article 7 was final energy
consumption determined in accordance with methodology and statements each year
provided by the Czech Republic to Eurostat. A review of the data showed that the Statistical
Office’s reports contain certain inaccuracies that the Office is currently working to remedy,
but which may have an impact on the current target calculated pursuant to the Eurostat
methodology. The next update will contain a new recalculation, with final values.

Calculation methodology

Consumption in transport (liquid and gaseous fuels; electricity consumed by traction; coal
for steam engines) was subtracted from final energy consumption in the relevant year (2010,
2011, 2012), in accordance with Article 7 (1) of the Directive. As compared to the target
calculation provided in NAPEE II, non-energy use of fuels is no longer deducted, which is
already included in the EUROSTAT database. This operation provides a ‘base’ for the
calculation of the target value of savings, from which own final consumption of energy is
deducted.

Own consumption includes:

 BIOMASS
o Households
o End consumption of own biomass in industry (heat)
o End consumption of own biomass in industry (electricity)

 SOLAR COLLECTORS
o Solar collectors

15
  BIOGAS
o End consumption of own biogas (heat)
o End consumption of own biogas (electricity)

 SOLID MUNICIPAL WASTE

o End consumption of own SMW in incinerators (heat)
o End consumption of own SMW in incinerators (electricity)
 INDUSTRIAL WASTE
o End consumption of own INW in incinerators (heat)
 COKE
o End consumption of own coke (technology)
 COKE-OVEN GAS
o End consumption of own coke-oven gas
 BLAST-FURNACE GAS
o End consumption of own blast-furnace gas
 CONVERTER GAS
o End consumption of own converter gas
 OTHER FUELS
o End consumption of own other fuels (electricity)
o End consumption of own other fuels (heat)

By this method, the net end consumption of fuels and energy sold between 2010 and 2012 is
calculated. A three-year average of end energy consumption is calculated from this net end
consumption, which is used for the calculation of savings in individual years between 2014
and 2020, i.e., the annual attainment of a saving of 1.5% of the volume of end consumption.

Table 2: Calculation of the three-year average as the basis for the calculation of the target

2010 2011 2012

PJ PJ PJ

Final consumption 1,040.53 1,007.20 991.47

Transport 262.75 263.56 256.18

Final energy consumption not

104.42 110.40 111.75
sold, Own consumption

Adjusted final consumption of

673.36 633.24 623.54
fuels and energy sold

16
 Three-year average 643.381

Table 3: Calculation of the binding savings target – without the use of exemptions stipulated
in the Directive, Article 7 (2)

Three-year average 643.38

Year Savings

Unit PJ

2014 9.65

2015 19.30

2016 28.95

2017 38.60

2018 48.25

2019 57.90

2020 67.55

Not using the exemptions stipulated in Article 7 (2) of the Directive (deduction of the volume
of savings not exceeding 25% of the aggregate volume of savings calculated), the table above
shows the amount of cumulated energy savings in final consumption, 67.55 PJ in 2020.

Use of exemptions

The Directive allows four ways by which the savings commitment may be reduced by as
much as 25% of the original target. The Czech Republic made use of the option provided for
in Article 7 (2) (a) and (d) of the Directive, i.e., the commitment was calculated using a
“gradual implementation” of savings in individual years; 1% in 2014 and 2015; 1.25% in 2016

17
and 2017; and 1.5% in 2018, 2019 and 2020), pursuant to Article 7 (2) (a) of the Directive;
and in line with Article 7 (2) (d) of the Directive, the energy savings achieved by the Green
Savings Programme and the third call under the Eco-Energy Scheme of the Operational
Programme Enterprise and Innovation (calls from 2009-2010) were deducted from that
amount. The Green Savings Programme was announced in April 2009, and the third call of
the Eco-Energy Scheme of the Operational Programme Enterprise and Innovation was
announced on 1 February 2010. These programmes thus meet the Directive’s requirement
that individual measures be introduced from 31 December 2008. (Note: the reference date
for support to implement energy saving measures under the Green Savings Programme was
1 April 2009 and thereafter.) Under the programmes, a monitoring, processing and reporting
system was put in place. Its results were regularly evaluated. Therefore, due to the individual
measures, the savings achieved are measured, reported and verifiable. As the programmes
focus on long-term savings and promote the installation of heating sources using renewable
energy and investments in energy savings when structures are retrofitted or newly built, as
well as savings in technology and buildings in the business sector, they are expected to have
an impact even beyond 2020.

The outcome of the application of these exemptions was the reduction of the target
calculated pursuant to Article 7 (1) of the Directive, of 67.55 PJ, by 19.89 PJ. This deduction
is in line with the Directive’s requirement that the use of such concessions must not
reduce the target by more than 25%. The Czech Republic made full use of the relief.

9.65 PJ were deducted from the cumulative energy savings (1.5% annually between 2014 and 2010),
using the values stated in Article 7 (2) (a) of the Directive (use of the exemption for a deduction of
savings attained due to a slower introduction). The use of the second exemption, pursuant to Article
7 (2) (d), resulted in a deduction of the savings attained due to the Green Savings Programme (a total
of 5.9 PJ was attained) and the 3rd call in the Eco-Energy Scheme of the Operational Programme
Enterprise and Innovation (a total of 5.569 PJ was attained). Due to the provisions of Article
7 (3) of the Directive, it is not possible to apply the entire volume of the savings, of 11.469
PJ, attained in the subsidy programmes mentioned above. Given the possible deduction of a
maximum of 25%, 7.24 PJ were deducted under this exemption. That resulted in the
calculation of a binding savings target for the Czech Republic, of 50.67 PJ in 2020 (i.e., a
cumulative saving in 2020)

Table 4: Calculation of the use of exemptions

Exemption Potential target reduction

Article 7 (2) (a) – Slower introduction Potential reduction 9.65 PJ

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 of savings

Article 7 (2) (b) – Exclusion of the

energy consumption of customers
Not applied
covered by the EU emissions trading
system

Article 7 (2) (c) – Inclusion of savings

achieved in the energy transformation, Not applied
distribution and transmission sector

Article 7 (2) (d) – Inclusion of part of

the savings under the Green Savings
Programme and of the Eco-Energy Potential reduction 7.24 PJ
Scheme of the Operational Programme
Enterprise and Innovation

Total Approx. 16.89 PJ

Cumulative savings between 2014

and 2020

Savings required 67.55

Reduction (25%) 16.89

2014-2020 target 50.67

Year Cumulated savings with a constant Cumulated savings with a gradual

level of annual savings introduction of annual savings
introduction, without the (exemption under Article 7 (2) (a))
application of exemptions under
Article 7 (2) (a) and (d)

Annual savings Annual savings Annual savings Annual savings

percentage amount percentage amount

2014 1.5% 9.65 1.0% 6.43

2015 1.5% 19.30 1.0% 12.87

19
2016 1.5% 28.95 1.25% 20.91

2017 1.5% 38.60 1.25% 28.95

2018 1.5% 48.25 1.5% 38.60

2019 1.5% 57.90 1.5% 48.25

2020 1.5% 67.55 1.5% 57.90

Alternative policy measures and the national energy efficiency obligation schemes

To comply with Article 7, the Czech Republic has opted to implement a set of other policy
measures in accordance with Article 7 (9) of the Directive. For implementation purposes,
we call this method an ‘alternative scheme’.

Of the other policy measures offered and described by the Directive, we will make use of
financing schemes and instruments, as well as training and education, including energy
advisory programmes, that lead to the application of energy-efficient technology or
techniques and have the effect of reducing end-use energy consumption.

 Financial engineering instruments

 Investment subsidies

 Non-investment subsidies (analyses of the appropriateness of the Energy

Performance Contracting method, energy management, education: advisory centres,
seminars, publications)

These methods enjoy a long-standing tradition in the Czech Republic. Appropriate processes
are established here for the approval of individual projects, and all stakeholders (public
authorities, entrusted parties and beneficiaries from the ranks of natural and legal persons –
public administration, businesses, housing cooperatives, and condominiums) have
experience of them.

These are methods under which reporting on savings, including cost effectiveness, can be
carried out transparently.

The Czech Republic will check other additional measures that could be used within the
framework of alternative political measures. If financial resources for the above forms of
support are insufficient to achieve the savings target set by the Directive, the Czech Republic
will implement such additional measures as constitute suitable instruments for the
attainment of the relevant target. A certain potential of savings in this regard is offered by
the integration of private enterprises, regions, and municipalities in the system, on a
voluntary basis, based on experience from other countries.

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Setting up intermediate periods

The Czech Republic is introducing two periods, namely:

 Period I: 5 years (1 January 2014 – 31 December 2018)

 Period II: 2 years (1 January 2019 – 31 December 2020)

This method of distribution makes more time available in Period I for the approval of the
alternative scheme’s conditions, introduction, and implementation. The launch of
operational programmes for the 2014-2020 programming period played an important role in
the setting of the date, as there were delays in their approval, which the ministry responsible
for setting up the mandatory energy efficiency increasing scheme could not influence; this in
turn caused a delay of the announcement of individual calls that constitute the core of the
alternative scheme. This division also ensures enough time in Period II for the making of any
modifications to support and incentive mechanisms, which assist in the attainment of the
overall goal by 2020.

Implementing public authorities and entrusted parties

Choosing an alternative scheme means that implementation will be in the hands of public
bodies or their delegated bodies, and therefore there will be no obligated parties in this
system. As financial engineering instruments and investment subsidies financed from public
funds are expected to be the primary mechanisms, their administration will be entrusted to
entities that already have experience of them. In the Czech Republic, these entities are:
Ministry of Industry and Trade, Ministry of the Environment, Ministry of Regional
Development, and regions involved in the Joint Boiler Replacement Scheme, the CMZRB.

The alternative scheme will emphasise the comprehensiveness and sustainability of the
measures supported. In implementing the alternative scheme, the focus of interventions,
the form and amount of support, and other parameters and conditions, and the process of
obtaining support will be configured to fulfil the principles of synergy and complementarity,
meaning that the interventions of the various entities will be coordinated, rather than
competing with each other. They will, on the contrary, complement related measures
focused primarily on extending the sustainability of the projects implemented, in order that
the system would be effective. A detailed breakdown of policy measures, including a sectoral
breakdown, among the various implementing public authorities or entrusted parties, is
described on a separate page in Annex 2 to this document.

The Ministry of Industry and Trade will gather information from public authorities and
entrusted entities, which it will then process and send to the European Commission. All
activities of the entities involved aiming at the fulfilment of the energy savings target in 2020
through an alternative scheme are coordinated by a committee that was set up by the

21
Ministry of Industry and Trade in the second half of 2015. The coordination committee is an
advisory body of the Ministry of Industry and Trade, responsible primarily for monitoring the
fulfilment of the targets, tasks, and measures arising from the NAPEE, established on the
basis of European Parliament and Council Directive 2012/27/EU of 25 October 2012 on
energy efficiency; the coordination of the implementation of individual policy measures and
the ties between them, in particular measures within the scope of the alternative scheme
pertaining to support programmes aimed at decreasing energy intensity; the issuance of
recommendations for the implementation of tasks; and, if necessary, the proposing and
recommendation of remedial measures.

List of alternative policy measures by sector

Households

 New Green Savings 2013

 New Green Savings, 2014–2020

 Operational Programme Environment 2014-2010 (PA 2 – SO 2.1)

 Integrated Regional Operational Programme

 JESSICA Programme

 Panel Programme

 Joint Boiler Replacement Scheme

Services

 Operational Programme Enterprise and Innovation (business entities)

 Operational Programme Enterprise and Innovation for Competitiveness (business

entities)

 EFEKT Programme – investment part (public service sector, lighting)

 Operational Programme Environment, 2007–2013 (public service sector)

 Operational Programme Environment, 2014–2020 (public service sector)

 Operational Programme Prague – Growth Pole 2014–2020

Industry

 Operational Programme Enterprise and Innovation

 Operational Programme Enterprise and Innovation for Competitiveness

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3.1.2 Energy audits and energy management systems
In the Czech Republic, end customers have had access to energy audits since 2000, when Act
No 406/2000 on energy management was promulgated. Today, in the wake of several
amendments to this law and implementing decrees, we can state that, in the Czech Republic:

- high-quality energy audits are drawn up;

- energy audits are cost-effective;

- in order to efficiently save costs on the production of energy audits, simpler energy
audits are admissible in cases enumerated by the law, provided they there are only
focused on the evaluation of specific measures; they are known as energy
assessments;

- through an MIT database, energy audits are gathered electronically (database), which
allows for the assessment of energy audits (inspection by the State Energy
Inspectorate), and a verification of the collection of data pertaining to the savings
attained in individual support programmes;

- they are conducted by energy specialists who hold an authorisation granted by the
Ministry of Industry and Trade to draw up energy audits and energy assessments;

- energy audits are checked by the State Energy Inspectorate;

- in the Czech Republic, numerous training courses are available for energy specialists,
to prepare them for a professional examination – which must be passed by those
seeking authorisation.

Energy audits must be conducted:

 if the total average annual energy consumption of a building or energy

management system for the past two calendar years has been higher than
35,000 GJ (9,722 MWh) per year, as the sum for all buildings and energy
management systems, and this concerns only individual buildings or individual
energy management systems that report energy consumption of more than
700 GJ (194 MWh) per year.
 for a major change in a completed building, where requirements for the energy
performance of the building are not met.
 at organisational units of the state, regions, and municipalities, and
organisations partly funded from the public purse, if the total average annual
energy consumption of a building or energy management system for is higher
than 1,500 GJ (417 MWh) per year, as the sum for all buildings and energy
management systems, and this concerns only individual buildings or individual

23
 energy management systems that report energy consumption of more than
700 GJ (194 MWh) per year.
 an entrepreneur that is not a small or medium-size enterprise in line with Commission
Recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro,
small, and medium-sized enterprises, has an obligation to conduct an energy audit
every four years, starting as of 5 December 2015. Alternatively, large enterprises may
opt to introduce an energy management system in accordance with ČSN EN ISO 50001
– Energy management systems, or in accordance with ČSN EN ISO 14001 –
Environmental management systems, which includes an energy audit.

Furthermore, energy audits may constitute a part of an application for a subsidy from a state
aid programme. In that case, an energy audit serves as a foundation for project evaluation.
Based on that document, the applicant applies for support for the implementation of the
option of the recommended measures that is the most acceptable, technically, financially,
and environmentally.

Energy management systems are not regulated by the law, except by Section 9 (2) of the Act,
where the introduction of ČSN EN ISO 50001 is a potential alternative to the obligation to
repeatedly draw up an energy audit, for entrepreneurs that do not constitute small or
medium-size enterprises. In this sphere, advice and financial support are provided mainly on
the level of regions and municipalities. It is planned that this support will be expanded to
other entities from the private sphere.

Energy management support has been declared, as in previous years, under the State
Programme on the Promotion of Energy Savings and the Utilisation of Renewable Energy
Sources. An activity covered in this area is the support of projects for the ‘Implementation of
systematic energy management pursuant to ČSN EN ISO 50001’. This support has been made
available for regions and chartered cities. The support focuses on the introduction,
enhancement, and, where appropriate, certification of a region’s energy management
system. All measures proposed must be implemented in accordance with ČSN EN ISO 50001
and must be geared towards the certification of the entity’s energy management system.
The aim of this support is to put in place a functioning system of energy management at all
structures owned by the applicant that meet the requirements of the standard. The support
primarily centres on the production of basic documents required by the standard,
organisation (a definition of processes, responsibilities, information flows, etc.), the
preparation of systems for monitoring and evaluating energy consumption, and system
certification. Upon receiving a subsidy, beneficiaries undertake to provide the Ministry of
Industry and Trade, as required, with aggregated data on the results of energy management
system implementation, for a minimum period of the five years following completion of the
project. Every year, these projects are supported with approximately CZK 1 million.

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3.1.3 Metering and billing
The metering of the volume of end supplies of electricity, natural gas, and supplies of heat
energy, which includes heat energy and cold, including supplies of hot water, enjoys a long-
standing tradition in the Czech Republic. This system currently provides sufficient
information to end customers on actual consumption over a given period.

Metering and billing obligations are transposed by Act No 458/2000, the Energy Act, as
amended, and by Act No 406/2000 on energy management, as amended, as well as by
Implementing Decree No 82/2011, on the metering of electricity and on the method for
determining compensation for damage in cases of the illegal offtake, illegal supply, illegal
transmission, or illegal distribution of electricity, as amended, and Implementing Decree No
108/2011, on the metering of gas and on the method for determining compensation for
damage in cases of the illegal offtake, illegal supply, illegal storage, illegal transmission or
illegal distribution of gas, as amended.

End customers have their electricity, gas, and heat energy supply metered, and typically
make payments in the form of monthly advances accompanied by quarterly or annual
settlement. Bills provide detailed economic data and information itemising individual parts
of the payment, and include a graph showing a comparison with consumption in the
previous period. It is left to customers to choose the method by which to pay their bills. In
the wake of a study comprehensively addressing smart meters, the Czech Republic has
decided that, for the time being, it will hold back from a blanket deployment of such devices;
nevertheless, we do not rule out a situation in the future where customers will be able to
apply for the installation of smart meters, provided that they pay for the extra costs
incurred. This will give customers the opportunity to assess the costs and benefits of smart
metering themselves, and will help them to reach the optimal decision. A schedule of the
across-the-board introduction of intelligent metering systems is contained in the National
Action Plan for Smart Networks approved by the government.

Where heat energy and hot water are supplied from a central source, billing meters are used
at transfer stations. As a matter of priority, transfer stations are set up separately for
individual customers, especially where major reconstruction projects are involved. The
further breakdown of billing of consumption metered in this way is transparent, aided by
various types of cost allocators for heat and hot water.

The billing of supplies of electricity, gas, and heat energy is governed by Implementing
Decree No 210/2011 on the scope, particulars, and dates for the billing of supplies of
electricity, gas or thermal energy and related services. The final settlement of electricity and
gas billing is carried out at least once a year, and may take place at shorter intervals.
Payments are made in the form of monthly advances.

Heat energy suppliers provide customers with free billing of thermal energy supplies at least
once per calendar year, calculated as at 31 December of the calendar year, as this is the last

25
day of the billing period. Suppliers provide customers with the billing of thermal energy
supplies for the calendar year by 28 February of the following calendar year, unless
otherwise agreed with the customer.

Act No. 406/2000, on energy management, as amended, stipulates the obligation pertaining
to residential and multi-purpose buildings to which heat energy is supplied from a heat
energy supply system, or which have central heating or cooling, or a joint facility for hot
water preparation, to equip each flat and each non-residential space with equipment that
registers the supply of heat energy (hereinafter referred to as “registering devices”), which
are prescribed meters in line with the Act on Metrology, or devices for the allocation of
heating costs, to the extent and in a manner set out in an implementing legal regulation.

3.1.4 Consumer information programmes and training programmes

In line with Article 12 of the Directive, activities focused on improving consumer awareness
include:

 “Awareness of energy savings in heat consumption in households” The aim is to

support the organisation of thematically focused information campaigns and
awareness events concerning energy savings in households (the media, leaflets,
lectures, etc.). Some of those activities are supported from the eFEKT Programme.
Furthermore, energy suppliers themselves inform about efficient energy use on their
websites. Given that the response to the information provided is hard to foresee, it
is difficult to specify the direct benefit. The effect of the campaigns can be assessed,
for example, with respect to the draw-down of funds from support programmes.
Furthermore, a demonstration of a change in the behaviour of the end customer in
annual balances is expected.
 “Energy labelling of household appliances” These information campaigns focus on
supporting the implementation of the electrical appliance labelling directive. The
labelling of household appliances is a compulsory measure derived from EU
legislation aimed at fitting household electrical appliances with labels providing
information on their energy efficiency, which can serve as a basis for households
when purchasing such devices. Energy labelling is a way of supporting consumers in
attaining energy savings, increasing their informedness about energy efficiency. The
effect of this tool in increasing energy efficiency should again be evident in the
annual energy balance.
 “Expansion of the role of the public sector in demonstrating new technologies” The
main thrust of this measure is to introduce green procurement in state
administration. This would be mandatory for organisations falling within the scope of
the effect of the Public Procurement Act. This sphere is closely related to the
implementation of Articles 5 and 6 of the Directive.

Since November 2010, ‘Rules for the application of environmental requirements in central
and local government procurement procedure and purchasing’ have applied in the Czech

26
Republic. These rules were adopted by the Government to promote green procurement in
the public sector. The rules only define basic parameters, i.e., they state the bodies which
they bind, and how and when evaluations of their implementation are to be conducted.
Selected product groups are regulated by more detailed methodologies. These
methodologies establish environmental requirements for products and services procured,
and include detailed instructions on how to incorporate these requirements into public
procurement.

At present, methodologies are available for the purchase of furniture and office computer
equipment, which, as of 1 November 2010, should govern the procedure followed by central
bodies of state administration (the Office of the Government, ministries and other
institutions, such as the Energy Regulatory Office, etc.). Further to international
developments, methodologies that are also significant in terms of energy consumption are
also due to be incorporated into the rules:

• energy-saving and environmentally friendly buildings;

• public street lighting;

• wall panels;

• combined heat and electricity generation;

• boilers;

• air conditioning and heat pumps;

• windows.

The target groups are organisations of state administration and local government,
organisations subject to the Public Procurement Act and other business entities.

 “Energy Star” – Support for the sale of energy-saving office technology, by labelling
products that are compliant with the Energy Star label, and the possibility of selecting
compliant products from a publicly accessible database. Office technology
manufacturers may subscribe to the Energy Star scheme and have their products
certified within the scope of this programme. Certified products bear the Energy Star
label and are entered in a database of energy-saving appliances. Energy Star labels
and the database of energy-saving products are designed to help consumers when
purchasing such products.

The most recent amendment of Act No 406/2000 on energy management (Act No 103/2015)
sets out an obligation for central institutions, in the case of above-the-limit tenders for
supplies or services, to set special technical conditions beyond the scope of the measures
specified above.

3.1.5 Availability of qualification, accreditation and certification schemes

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The following qualification schemes are available in the Czech Republic:

1) Energy specialists

Energy specialists are natural persons holding an authorisation granted by the Ministry to:

a) perform an energy audit and produce an energy assessment;

b) procure a certificate;

c) inspect boilers and thermal energy distribution systems in operation; or

d) inspect air-conditioning systems.

An energy specialist may hold an authorisation for drawing up all the types of documents
referred to above. He must, however, document the relevant knowledge for each individual
activity, i.e., he must pass a professional examination in the area in which he wishes to earn
an authorisation. In addition to a professional examination, an applicant seeking an
authorisation must document that he has full legal capacity, and possesses integrity and
professional competence (this is documented by appropriate education and professional
experience).

The register of energy specialists is publicly accessible on the Ministry’s website at

http://www.mpo-enex.cz/experti/

One of the obligations of energy specialists is to undertake regular, continuous training to

update their knowledge. The aim of the training is to consolidate, deepen, and update
expert knowledge of applicable legislation on energy management, the energy performance
of buildings and energy management systems, and the energy efficiency of energy
production plants, including plants producing energy derived from renewable energy
sources, secondary energy sources, and the combined generation of electricity and heat.

If the State Energy Inspectorate, which is the inspection body in this area, detects an error in
the activities carried out by an energy specialist, the Ministry of Industry and Trade invites
that specialist to retake an examination to demonstrate his knowledge before an expert
panel.

Authorisation to engage in professional activities is rescinded from those energy specialists

who fail to comply with the requirements of continuing training or re-examination.

2) Person authorised to install selected installations generating energy from renewable

sources

A person authorised to install selected installations generating energy from renewable

sources (hereinafter referred to as a ‘person authorised to carry out installation’) means a
natural person or legal entity holding a trade authorisation for the specific area of activity.
The person is obliged to provide the installation through a person who holds a relevant
certificate demonstrating professional qualifications, in accordance with the Act on the
Recognition of the Results of Further Training, that is not more than five years old.

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3.1.6 Energy services

Current situation:

The promotion of energy services has been supported by the state since 1999 in the State
Programme in Support of Energy Savings and Utilisation of Renewable and Secondary
Sources of Energy, known as EFEKT. Calls in the sphere of publications and seminars are
regularly focused on brochures, leaflets, roadmaps for contracting entities, websites
(Databases of EPC and EC projects), the organisation of educational seminars, and subsidies
provided for the development of methodological aids (EPC project contracting methodology,
Code of Conduct, improvement of the EPC contract).

In 1999, support began to be channelled into energy-saving projects from the State
Programme on the Promotion of Energy Savings and the Utilisation of Renewable Energy
Sources. This support took the form of subsidies granted to energy service providers, which
were contributions from the investment framework for installed energy-saving installations.

In 2006, the strategy for the support of the EPC method was revised, and subsidies were
provided to applicants (municipalities, cities) for the preparation of a project employing EPC.
In 2012, support was renewed under the EFEKT Programme, in the form of subsidies to
identify projects suitable for public administration clients.

The financing of investments in installed energy-saving measures are a common element of

the EPC-type energy services provided. In this case, energy service providers require
sufficient access to financial resources, to carry out their activities. In the Czech Republic, it is
common practice to sell receivables, and such claims are sold almost exclusively to entities
holding a CNB banking licence. The name of the specific financial institution to which a
receivable is assigned is usually specified in the EPC contract, prior to the signing thereof.
Negotiations with the financing institution are completed after notification of the selection
of the best bid and completion of the tendering procedure. The assignment of a receivable
does not change the status of the customer. This liability remains a trade payable, i.e., it is
supplier credit. The sale of a receivable does not change supplier credit into bank credit,
which would influence the customer’s debt service indicator. No contractual relationship is
established between the customer and the financial institution (the bank), i.e., from an
accounting and legal perspective, the assignment of a receivable has no impact on the
customer or the customer’s debt service indicator. The contractual obligations of the energy
service company do not change. Installed savings measures, upon completion, are
transferred to the customer’s assets without the establishment of any liens. The assignment
of receivables has been used in almost all projects completed since 2005. These have been
EPC projects in the public sector (towns, regions, and central government authorities partly
funded from the public purse).

Since 2011, information on energy service companies has been available on the website of
the Association of Energy Service Providers (www.apes.cz), along with other information and
links.

29
A model contract has been created primarily for the purposes of public contracting for
guaranteed energy services, by contracting authorities. In this respect, it is publicly available
at the website of the Ministry of Industry and Trade:

http://www.mpo.cz/dokument105425.html

The content of the model EPC contract was adapted in line with Annex XIII of the Directive,
by the amending Act No 406/2000, on energy management (Act No 102/2015), and the
model was also embodied in the Act.

Other documents promoting the development of guaranteed energy services are also
available on the MIT’s website (http://www.mpo.cz/dokument105425.html), including:

 Government Resolution No 109 of 22 February 2012 on the finalisation of the

methodology for the use of the Energy Performance Contracting (EPC) method –
guaranteed energy services (Government Resolution).

 Model contract for contracting with guaranteed energy service providers.

 Schedules to an agreement on the provision of guaranteed-result energy services via

the EPC method.

 Code of Conduct – Guaranteed energy services.

 The process of preparing public tendering procedure for the provision of guaranteed-
result energy services via the EPC method.

 Methodology for the preparation and implementation of energy-saving projects

handled using the EPC method.

Measures proposed:

In this area, proposals have been prepared for the provision and promotion of energy
services employing the EPC method in the tertiary sector. The idea of this measure is to draw
up a methodology for the preparation and implementation of projects using the EPC method
in state and public administration, so that EPC becomes one of the methods employed in
achieving energy savings in buildings.

The EPC (Energy Performance Contracting) method seeks to reduce the energy-related
operating costs of buildings. The basis of this method is that customers do not need to make
their own investments in the replacement of obsolete technology. In the conclusion of EPC
service supply agreements, the service supplier undertakes to cover the cost of investments
in savings measures from its own resources, and the customer repays them from the savings
achieved in operating costs. The hallmark of EPC is its guarantee that a project will realise
savings.

Organisations partly funded from the public purse may make use of this type of service;
however, they are frequently concerned about making mistakes when accounting for these
projects, because they view this process as the financing of investments from operating

30
costs. The idea of this measure is to draw up methodology for the preparation and
implementation of projects using the EPC method at organisational units of the state.

There are currently about 15 companies operating on the market in the provision of energy
services applying the EPC method. Of these, 13 have organised themselves into the
Association of Energy Service Providers (APES), which was founded in 2010. The APES
website (www.apes.cz) includes a list of member energy service companies, with their
contact details and websites offering more detailed information about them. In terms of the
standard, quality, and scope of energy service provision, the Czech Republic ranks among the
most advanced in the European Union.

The provision of energy services using the EPC method has a history stretching back 20 years
in the Czech Republic, in which time, approximately 200 projects have been implemented. In
recent years, the annual volume of investments in the implementation of EPC projects has
stood at around EUR 10 million. Between 10 and 15 new projects are implemented every
year. In this light, trends over the past 10 years indicate that, to a certain extent, further
advances can be expected. According to an expert estimate, in the future we can expect the
implementation of projects including the provision of guaranteed-result energy services in
approximately 30 to 50 structures, with average annual energy savings of between 600 and
1,000 GJ per structure. That would amount to overall energy savings of at least 30 TJ per
year, a range that could increase further.

3.1.7 Other energy efficiency measures of a horizontal nature

The Czech Republic implements awareness-raising programmes in the field of energy

efficiency on an ongoing basis. In parallel, technical material has been drawn up; this takes
the form of interpretative communications, which are listed under 3.1.6.

3.2 Energy efficiency of buildings

3.2.1 Legislative framework of energy performance of buildings

The energy performance of buildings is covered by Act No 406/2000 on energy

management, as amended, Sections 7 and 7a of which set out the energy performance
requirements themselves and contain provisions pertaining to the obligation to have a
building energy performance certificate drawn up. More detailed provisions are set out in
the implementing legislation, i.e., Decree No 78/2013, on the energy performance of
buildings, as amended. The Decree stipulates:

• the cost-optimal level of energy performance requirements for new buildings, major
alterations to completed buildings, and alterations other than major alterations to
completed buildings, and for nearly zero-energy buildings;

31
 • the method of calculating the energy performance of a building;

• the model for assessing the technical, economic, and ecological feasibility of
alternative energy supply systems;

• the model for establishing recommended measures for improving the energy
performance of a building;

• a model for the certificate and its contents, and specification of how the certificate is
to be drawn up and displayed in the building.

The evaluation of energy performance is linked to the calculation of selected energy

performance indicators and their comparison to the reference values for those indicators.
The energy performance indicators are as follows:

a) annual total primary energy;

b) annual non-renewable primary energy;
c) annual total energy supplied;
d) annual energy supplied for different technical systems (heating, cooling,
ventilation, humidity regulation, hot water production, and lighting);
e) average thermal transmittance coefficient;
f) thermal transmittance values for individual structures at the system
boundary;
g) efficiency of technical systems.

In the case of the construction of a new building or a building with a nearly zero-energy
consumption, the builder, owner, or condominium must simultaneously comply with three
energy performance indicators:

 annual non-renewable primary energy

 annual total energy supplied

 average thermal transmittance coefficient for the building envelope (e).

In the case of a major modification made to a completed building, and where a modification
other than a major modification is made to a completed building, the builder, owner, or
condominium must meet at least one of the following three combinations of energy-
intensity indicators:

the requirement relating to annual non-renewable primary energy and the thermal
transmittance coefficient;

32
the annual total energy supplied and thermal transmittance coefficient for the building
envelope;

the thermal transmittance coefficient of each structure at system boundary for the modified
elements of a building envelope and technical system efficiency.

The other energy-intensity indicators listed above are indicative, and no requirements are
laid down in legislation regarding compliance with them.

In the context of implementing the requirements of Directive 2010/31/EU, new buildings

must meet the requirement met by nearly zero-energy buildings by 2020. Act No 406/2000,
on energy management, as amended, provides for a timeframe for introducing this
obligation. A ‘nearly zero-energy building’ is defined as a 'building that has a very high
energy performance whose energy consumption is covered to a very significant extent by
energy from renewable sources'.

3.2.2 Further improvements in the energy performance of buildings

List of measures, by sector, which contribute to improvements in the energy performance of

buildings

Households

 New Green Savings 2013

 New Green Savings, 2014–2020

 Operational Programme Environment 2014-2010 (PA 2 – SO 2.1)

 Integrated Regional Operational Programme

 JESSICA Programme

 Panel Programme

 Joint Boiler Replacement Scheme

Services

 Operational Programme Enterprise and Innovation (business entities)

 Operational Programme Enterprise and Innovation for Competitiveness (business

entities)

 Operational Programme Environment, 2007–2013 (public service sector)

 Operational Programme Environment, 2014–2020 (public service sector)

33
  Operational Programme Prague – Growth Pole 2014–2020

Industry

 Operational Programme Enterprise and Innovation

 Operational Programme Enterprise and Innovation for Competitiveness

3.3 Energy performance of the buildings of public bodies

3.3.1 Buildings of central government authorities

The Czech Republic, in its implementation of the Article 5, Exemplary role of public bodies’
buildings, of the Directive, has decided to opt for an alternative approach to Article 5 (1) to
(5), in line with Article 5 (6).

The alternative measures the Czech Republic wishes to adopt include changes in behaviour
in building management, i.e., zero-cost or low-cost measures. Measures will then be taken
with an economic return of up to 10 years, which will primarily encompass the
reconstruction of heat sources and heating systems, and the introduction of efficient
regulation for those buildings where necessary measures cannot be implemented through
construction (insulation, window replacement). After this, we will proceed to measures with
respect to buildings that require and allow for the implementation of structural and
technical measures. This approach has been adopted with a view to the financial
requirements, and we must give preference to measures resulting in maximal energy
savings.

In its reporting on the equivalent improvement in the energy performance of buildings, the
Czech Republic drew on Annex IV to the Public Procurement Directive (2004/18/EEC), which
contains a list of central government authorities. Applying the standard approach, it then
drew up a list of buildings used by these authorities, and established the energy savings that
would be achieved by the annual renovation of 3% of the floor area of the buildings
concerned by the Directive. These energy savings, consistent with energy savings under the
standard procedure, will then be achieved by means of the stated measures.

A list of buildings has been published on the website of the Ministry of Industry and Trade.
http://www.mpo.cz/dokument145673.html

Article 6 of the Directive has been transposed in Section 9b of Act No 406/2000, on energy
management, as amended.

3.3.2 Buildings of other public bodies

34
Since 2012, the EFEKT Programme has promoted the introduction of energy management in
regions and towns, in accordance with ČSN EN ISO 50001, along with analyses of the
feasibility of implementing the EPC method. The following public entities have been
supported in the introduction of energy management: South Moravian Region, Moravia-
Silesia Region, Plzen Region, the chartered city of Opera, Liberec Region, Pardubice Region,
Central Bohemia Region, and the chartered city of Hradec Králové.

3.4 Measures to improve energy efficiency in industry and transport

List of measures which contribute to improvements in energy efficiency in industry

 Operational Programme Enterprise and Innovation

 Operational Programme Enterprise and Innovation for Competitiveness

Energy intensity is one of the factors affecting the competitiveness of businesses and,
indeed, the overall economy. In reducing the energy intensity of industrial processes, the
Czech Republic has made substantial progress since it came into being; nevertheless, in
absolute terms, the energy intensity of Czech industry is still just short of three times the EU-
15 average. There is huge untapped economic potential for energy savings at a lower cost
per unit of energy saved than is normally the case in the residential sector.

OP Enterprise and Innovation for Competitiveness will be the principal instrument for
implementing savings measures in industry. In the first period, between 2014 and 2016, it
should achieve savings of 1 PJ, and in the second period, from 2017 to 2020, 19 PJ. Overall,
industry will contribute 20 PJ towards achieving the target set under Article 7 of the
Directive in the 2014-2020 period. A total of CZK 20 billion will be allocated to achieve those
savings under this programme. The determination of eligible expenses (hereinafter referred
to as EE) is in line with Articles 381 and 49 of Commission Regulation (EU) No 651/2014 of 17
June 2014.

The level of financing ranges from 30% to 40% and 50% of eligible costs, depending on
whether the enterprise is large, medium-sized, or small.

1
If there is an obligation imposed by the EU to implement mandatory standards whose validity is known at the time of
the submission of a full application, the comparative option will need to be applied for the determination of eligible
expenses. In the comparative option, investment costs required for the achievement of these mandatory EU standards

are deducted from the total investment costs of the project presented in the full application. This difference constitutes
the eligible expense. If there is no applicable EU regulation requiring compliance with standards at the time of the
submission of a full application, the comparative option need not be used.

35
Two basic types of supported measures will be involve improving the energy performance of
buildings and increasing the energy efficiency of technologies. These measures have a
service life of 10 or more years. Activities supported in the 2014-2020 period will include:

• modernisation or replacement of existing facilities producing energy for own

consumption, which will increase their efficiency;

• introduction and upgrading of measurement and control systems;

• modernisation, reconstruction, and loss reduction in electricity and heat distribution

systems in buildings and production plants;

• implementation of measures to improve the energy performance of buildings in the

business sector;

• re-use of waste energy in production processes;

• improvement of energy performance and increase in the energy efficiency of

production and technological processes;

• installation of RES for an undertaking’s own consumption;

• installation of a cogeneration unit with maximum use of electricity and thermal

energy for the undertaking’s internal consumption;

• support in respect of the extra costs incurred in achieving the standard of a nearly
zero-energy building and a passive energy standard in the reconstruction of, or
construction of new, business buildings.

The above measures will be carried out either separately or as a set of several measures
(comprehensive projects) based on recommendations arising from an energy audit.
Regarding financing, both the use of a conventional subsidy scheme and the introduction of
financial engineering instruments are envisaged.

Measures which contribute to improvements in energy efficiency in transport

The Czech Republic is aware of the potential of energy savings in the transport sector. The
most appropriate form of realisation of savings seems to be the application of a voluntary
agreement on reducing the energy intensity of transport, between the MIT, other state
entities involved in transport, private carriers, and fuel distributors, in combination with the
potential involvement of the Operational Programme Transport. Energy savings in the
transport sector are also indirectly covered by the above-mentioned Operational
Programme Enterprise for Innovations and Competitiveness, in the form of support for more
energy-efficient technologies. Greater energy efficiency in the transport sector will also be
achieved through measures ensuring better integration of individual modes of transport. In
freight, this means combined transport, which will ensure services for road carriers (railway
transport of road trailers and containers), and in passenger carriage, it means measures

36
focused on a greater use of public transport, in particular in locales with strong transport
flows.

3.5 Promotion of efficient heating and cooling

3.5.1 Comprehensive assessment

Description of the procedure and methodology used to conduct cost-benefit analysis
meeting the criteria laid down in Annex IX to the Directive

The Ministry of Industry and Trade assessed the potential of cogeneration of electricity and
heat (CEHG) in line with the Directive, by 31 December 2015. The material titled
“Assessment of the potential of high-efficiency cogeneration of heat and electricity and
efficient district heating and cooling in the Czech Republic” was submitted to the European
Commission following the incorporation of comments from Working Group 1 of the Council
of the Government.

The procedure and methodology used for cost-benefit analysis was drawn up in accordance
with Part 1 of Annex IX.

The objective of CBA (cost-benefit analysis) in the Czech Republic was to assess the defined
composition of heat generation/supply in 2016 - 2025 in the initial and alternative
scenarios, in terms of their general benefit for society (the CEHG scenario, the high CEHG
scenario). The most appropriate scenario was identified based on a comparison of the
incremental costs/benefits of alternative scenarios, as compared to the initial scenario.

With a view to the comparability of results, the same volume of electricity and heat
supplied was assumed in all scenarios. In scenarios with a higher level of electricity from
CEHG, all fuel costs saved (savings of primary energy), losses reduced in the electricity
network, and costs saved on externalities, as compared with separate generation of
electricity and heat, are regarded as benefits.

Cost-benefit analysis revealed that the incremental benefits prevail over the incremental
costs in both alternative scenarios. The general benefit for society is greatest in the case of
the implementation of the “CEHG” scenario. Recalculated at net present value, the
additional savings in the scenario amount to CZK 17.65 bn. The utilisation of technical
potential in the supply of heat in the case of developing CEHG technologies is shown in the
table below.

Table 5: Utilisation of the technical potential of developing CEHG technologies

Technical potential CEHG scenario

37
 Micro-cogeneration 5.0 PJ in 2025 0.9 PJ in 2025

Small and medium-size CEHG using gas 13.7 PJ in 2025 4.6 PJ in 2025
fuels
CEHG using RSE and other alternative 9.5 PJ in 2025 3.2 PJ in 2025
fuels

Due to the installation of these new and small and medium-size sources with CEHG, an
increase in electricity from high-efficiency CEHG by 1.3 TWh (in 2025) could also be
achieved.

In the case of the contemplated “High CEHG” scenario, the relatively high overall costs of
fuel (composition of sources with a high level of utilisation of natural gas), and the high
investments in new co-generation sources, largely eliminate the benefit of the option, which
is why the scenario does not achieve such absolute benefits as the “CEHG” option.

Sensitivity analysis shows that NPV (net present value) is significantly influenced by the price
of fuel, price of emission allowances, but also costs of externalities which may differ
significantly depending on the methodology. In the “CEHG" scenario, a situation where
NPV<0 should not realistically occur.

The above shows that, from the general social point of view, the Czech Republic should
create conditions for the development of combined generation of electricity and heat aimed
at the fulfilment of the CEHG scenario, in which the highest benefits for society at large were
manifest.

The heat supply systems in the Czech Republic include approximately 2,000 registered
sources of heat, of which 1,800 have an output exceeding 5 MWt. Of the 4.1 million
households, 1.6 million, i.e., approximately 40%, receive heat from district supplies. The total
length of heating networks is approximately 10,000 kilometres, of which 1,129 km are steam
lines. Approximately 900 km of steam lines require renovation. Their replacement with hot-
water lines could yield savings of 5.2 PJ. This saving would be manifest in annual balances as
a reduction of the primary energy volume.

3.5.2 Other measures for efficient heating and cooling

Within the framework of the State Environmental Policy of the Czech Republic for 2012 to
2020, in the thematic area of Climate Protection and Air Quality Improvement, in priority 2.1
Greenhouse gas emission reductions and reduction of the adverse impact of climate change,
objective 2.3.3 is stated: Ensuring the commitment to increase energy efficiency by 2020.

38
The measures for the attainment of the goal include: “Support for an increased share of
combined heat and electricity generation”. The policy for this area is set out in the following
strategic documents:

• State Environmental Policy of the Czech Republic for 2012 to 2020

• State Energy Policy
• Action plan for biomass in the Czech Republic in 2012-2010
• National action plan for energy from renewable sources
• National action plan for smart networks.

As a specific measure towards the fulfilment of strategic goals, investment and operational
support has been introduced in the Czech Republic for generation of electricity from CEHG.

Act No 165/2012 obliges distribution system and transmission system operators to first, as a
priority, connect electricity generation plants generating electricity from high-efficiency
combined generation of electricity and heat in their designated area.

Act No 261/2007, as amended, and in line with Directive 2003/96/EC, exempts the fuel used
in combined electricity and heat generation from tax on gas and tax on solid fuels.

Act No 458/2000, as amended, only permits the construction of an electricity generation

plant with a total installed capacity of 1 MW or greater based on a state authorisation for
the construction of an electricity generation plant, granted by the Ministry of Industry and
Trade. The Ministry shall not grant the authorisation if the envisaged electricity generation
plant is not in line with the energy assessment for ensuring high-efficiency combined
generation of electricity and heat, pursuant to the Act on Energy Management.

Act No 406/2000, on Energy Management, as amended, obliges a builder or the owner of

energy management, as of 1 July 2015, to ensure an energy assessment of the costs and
benefits of high-efficiency combined generation of electricity and heat, in the case of the
construction of a new electricity generation plant or in the case of a major renovation of an
existing electricity generation plant with a total heat capacity in excess of 20 MW, with the
exception of electricity generation plants with operating hours of fewer than 1,500 hours per
year, and nuclear power plants.

Act 406/2000 obliges regions and the City of Prague to draw up a territorial energy policy
setting out objectives and principles for the use of energy in the region, the City of Prague or
its boroughs, or a municipality. A territorial energy policy sets out designated and expected
areas or corridors for publicly beneficial buildings required for the development of energy
management, taking into account the potential utilisation of efficient heating and cooling
systems, in particular if they use high-efficiency combined electricity and heat generation,

39
and heating and cooling using renewable sources of energy, wherever suitable. A territorial
energy policy is the foundation for drawing up principles for territorial development or a
zoning plan.

In assessing the potential for the application of high-efficiency cogeneration and efficient
district heating and cooling in the Czech Republic, the following measures in support of high-
efficiency CEHG and efficient district heating and cooling in the Czech Republic were
proposed, in addition to existing measures; their potential implementation and evaluation of
their impact on other areas is to be discussed at a later point:

 Ensure continued operating support for high-efficiency CEHG and heat from RS,
compatible with EU rules for state aid for new facilities commissioned from 2016 on,
and make appropriate legislative arrangements for the system of support.

 Increase taxation on the consumption of fossil fuels in stationary sources, excluding

combined electricity and heat generation, in facilities not included in the emission
trading scheme, to the level corresponding to the price of CO2 emissions, based on
the expected price of an emission allowance.

 When updating the National Action Plan for Smart Networks, assess the possibilities
of providing support services on the distribution system level (regulation of voltage,
regulation of idle output, shortage contribution, start from darkness, off-grid
operations, etc.).

 Inclusion of the primary energy factor for efficient heat supply systems in the
evaluation of energy performance of buildings (the amending Regulation No
78/2013).

 Accelerate and simplify permission procedures for high-efficiency CEHG facilities and
for the building and renovation of heat networks.

 Set up motivating financial conditions for energy utilisation of residual municipal

waste, after recyclable elements have been sorted out. Potential state aid should be
tied to the utilisation of heat.

 Ensure sufficient resources for the stimulation of renovation and development of SZT
after 2020, including using some of the funds realised from the sale of greenhouse
gas emission allowances or other support mechanisms.

3.6 Energy transformation, transmission and distribution and demand

response

3.6.1 Energy efficiency criteria for network tariffs and regulations

40
The regulatory framework for distribution system operators includes an incentive to reduce
overall losses in distribution networks. A loss specification (i.e., the permitted rate [%]
relative to the planned quantity of electricity on entry into the distribution system) is
established as a constant for the entire regulatory period (three years in the 4th regulatory
period) based on actual (measured) values in the previous regulatory period. Maximum
permitted costs of losses are obtained by multiplying the specification by the planned
quantity of electricity on entry into the system and the prescribed price of electricity for loss
coverage. If the amount of losses in the distribution system planned by the distribution
system operator is lower than that calculated based on the specification, the amount of
losses planned by the distribution system operator shall be used for the calculation of
permissible costs of losses. If a distribution system operator achieves a reduction in the
share of losses in distribution, 50% of the difference between the actual costs of losses (up
to a maximum of permitted costs) and the actual proceeds from the price for the use of the
networks (for covering the losses) constitutes additional profit for the distribution system
operator. This means that distribution companies have a financial incentive to increase the
efficiency of electricity distribution.

Network tariffs incorporate time differences, so that, when the network load is high, a high
tariff is applied, while a low tariff is at other times. This time-of-use tariff system is
accompanied by technical measures for the use of controlled appliances (primarily heating
appliances). This system makes it possible to shift the use of controlled appliances into
bands where the load on the distribution system is lower. The system has been in use for
several decades and limits peaks in the grid load diagram (this is known as peak shaving).
This has facilitated the optimisation of investment in the distribution network in recent
decades. Peak shaving also reduces electricity losses in the network.

The following types of dual tariff exist in the Czech Republic:

 Eight-hour accumulation – this is designed for supply points equipped with a storage
electrical appliance (e.g., a boiler) used to heat water or a building, or for supply points
for which the customer documents the right to use an electric car. With this rate, the
installed electrical equipment and its load must have a value corresponding to at least
55% of the value of the main circuit breaker before the electricity meter (in the case of
the heating of the building). These appliances heat water during the low tariff period. The
low tariff is controlled during the day based on developments in electricity consumption
in the Czech Republic. The low tariff switchover time is determined by the distributor. The
low tariff may be broken down into several intervals throughout the day. The aggregate
of these times must always be at least eight guaranteed hours. The minimum
uninterrupted interval for the low tariff is one hour. Modes: low tariff lasting at least eight
hours a day; high tariff lasting no longer than 16 hours a day.

41
 Sixteen-hour accumulation – this is designed for supply points equipped with hybrid
electrical appliances (a combination of storage and direct appliances) used to heat water
or a building. The sum of the output of all devices must correspond to at least 50% of the
value of the main circuit breaker before the electricity meter. Modes: low tariff lasting at
least 16 hours a day; high tariff lasting no longer than 8 hours a day.

 Direct heating – designed for buildings and households equipped with electric direct
heating appliances used for spatial heating. The sum of the consumption of all devices
must correspond to at least 40% of the value of the main circuit breaker before the
electricity meter. Modes: low tariff lasting at least 20 hours a day; high tariff lasting no
longer than 4 hours a day.

 Heat pumps – designed for spatial heating by means of a heat pump. Modes: low tariff
lasting at least 22 hours a day; high tariff lasting no longer than 2 hours a day.

 Weekend – designed for recreational cottages and structures intended for weekend stays,
where the cheap electricity tariff (the lower tariff) is set year-round, from midday on
Friday until 10 p.m. on Sunday.

Preparations are currently underway to supplement the tariff system with a dual tariff with
no technical conditions (a dual tariff not contingent on the use of controlled appliances). This
is therefore another measure in this area.

3.6.2 Facilitation and promotion of demand response

In the performance of Task 14 in the annex to Communication COM (2012) 663 final, ‘Ensure
the functioning of the internal energy market’, of 15 November 2012, the Czech Republic has
prepared a National Action Plan for Smart Grids (NAP SG), which includes further measures
to facilitate and develop Demand Side Response.

Demand control is currently facilitated primarily by the ripple control system. The possibility
of influencing the development of consumption by means of ripple control technology has
long been used in the Czech Republic. The ripple control system is a unidirectional group
communication system using the electricity distribution network as a joint transmission
channel shared by many receiving end stations. The distribution network projected for the
transmission of electricity with a frequency of 50 Hz is also used for the transmission of
various higher-frequency ripple control signals. From this perspective, ripple control can be
ranked among the narrow-band PLC technologies.

At present, approximately 46% of overall household electricity consumption and 31% of

overall small-business electricity consumption takes place in the ripple-controlled low tariff.

42
Ripple control receivers control the running of systems for spatial heating by means of
electricity, the electric storage heating of water, and the recharging of electric vehicles of
households or small businesses. In this respect, ripple control plays the role of a platform
offering deferred consumption.

The primary reason for deploying ripple control in the 1960s was to reduce investment in the
distribution system and production resources by optimising the system load. Ripple control
distributed the energy-intensive offtake by households throughout the day.

Distribution system operators also use ripple control for the following purposes:
optimisation of the system load (a reduction of losses in the distribution system, an increase
in the transmittance of the distribution system), the handling of emergencies in the Czech
grid, and the management of electricity production in dispersed sources. In normal
operations, distribution system operators use ripple control to distribute the controllable
consumption, to satisfy the needs of as many customers as possible, to ensure the optimal
use of networks, to increase transmittance and ensure low losses in networks, to carry out
switching in networks for operating purposes where necessary, and to optimise the purchase
of electricity to cover losses.

Ripple control is managed, operated and financed by distribution system operators. These
costs are incorporated into the price for the distribution of electricity. The main reason for
using ripple control is to spread consumption evenly, i.e., to optimise the operation of the
distribution system. Ripple control is also used to handle emergencies in the grid. In the face
of emergencies and other high-alert situations, ripple control is used to prevent and
eliminate such situations and to clear up any consequences thereof.

The ripple control system is closely linked to the dual tariff system described above.
Electricity customers who make some of their consumption available through controlled
appliances are compensated for deferred consumption, in the form of a lower rate for
electricity distribution, and in most cases also of a lower price of high-voltage electricity.
Customer consent to the control of specified appliances by the distribution system operator
is incorporated into connection contracts. Distribution tariffs are defined by the Energy
Regulatory Office, including pricing. This system’s traders use and offer commercial dual
tariffs to customers with ripple control. Commercial tariffs are valid for the same duration as
distribution tariffs; however, the difference in commercial low/high tariffs is not as
pronounced as in the distribution tariffs, mainly for rates with eight-hour accumulation,
thanks to the situation on the electricity market.

4. LIST OF ANNEXES

43
Annex 1

List of alternative policy measures under Article 7, and quantification of the

energy savings made in final consumption by such measures

Annex 2

Detailed description of individual energy-saving measures under Article 7

44
 4.1 Annex 1: List of alternative policy measures under Article 7, and prediction of the energy savings made in final consumption by
such measures
Allocation
Measure 2008-2010 2011-2013 2014-2016 2017-2020
Sector Measure (estimate)
number CZK billions
TJ TJ TJ TJ
Regeneration of high-rise pre-fabricated buildings – PANEL/NEW
1.1 - - 79 100 4.5
PANEL Programme (MRD)/Panel 2013+
1.2 Green Savings (MoE) 2,950 2,950 - - -
1.3 New Green Savings 2013 (MoE) - - 376 - 0.7

Households 1.4 New Green Savings 2014–2020 (MoE) - - 3,387 11,037 27

1.5 JESSICA Programme (MRD) - - 73 2 0.6
1.6 Integrated Regional Operational Programme (MRD) - - 442 3,128 16.9

1.7 Joint Boiler Replacement Scheme (MoE) - - 354 - 0.15 (est.)

Operational Programme Environment 2014–2020 (MoE) (household

1.9 - - 699 2,302 10
part, priority axis 2)
1.8 Operational Programme Environment 2007-2013 (MoE) 139 1,168 1,385 - -
Services 1.9 Operational Programme Environment 2014–2020 (MoE) - - 462 1 521 14.6
State programmes on the promotion of energy savings and the
1.10 utilisation of renewable energy sources (EFEKT) – investment 165 21 35 105 0.3 (est.)
subsidies (MIT)
Operational Programme Prague Growth Pole – buildings part
1.11 0 0 0 10 1
(Prague)
Operational Programme Enterprise and Innovation (MIT) (commercial
1.12 313.8 800 506.2 - -
services)
Operational Programme Enterprise and Innovation for
1.13 - - 200 3,800 4
Competitiveness (MIT) (commercial services)
1.12 Operational Programme Enterprise and Innovation (MIT) 1,255.2 3,200 2,024.8 - -
Industry Operational Programme Enterprise and Innovation for
1.13 - 0 800 15,200 16
Competitiveness (MIT)
Total 4,823 8,139 10,823 37,205 96.1

Cross-sectional measures increasing energy efficiency across sectors of the economy based on the so cial responsibility of the entities involved

1.14 Support for construction in the Czech Republic for increasing energy 4,000
efficiency and environmental protection, in line with the EU 2020
environmental strategy

1.15 Additional alternative measures for increasing energy efficiency in 5,438

industry in the Czech Republic

1.15 Additional alternative measures for increasing energy efficiency on 3,000

 municipal, city, and regional levels

1.16 Sum of measures to increase the energy efficiency o f agricultural 980

operations

1.17 State programmes in support of energy savings and use of renewable 36 660
source (EFEKT) – EPC, energy management

1.18 Science and development as support in increasing energy efficiency , in 500

line with the EU 2020 environmental strategy

Total 36 14,578

The table in Annex 1 summarises all the measures which, having regard to additionality and materiality, the Czech Republ ic is planning to
take, to meet the target set in Article 7 of the Directive. These measures will be continuously evaluated and, having regard to cost -
effectiveness, will be modified and updated to achieve proper implementation of the Directive.

46
4.2 Annex 3 – Detailed description of individual energy-saving measures under
Article 7

Measure number 1.1

TITLE OF THE Regeneration of high-rise pre-fabricated buildings –

MEASURE PANEL/NEW PANEL/PANEL 2013+ Programme

Sector Households

Brief summary The provision of subsidies to cover interest on loans and to secure loans
for the comprehensive regeneration of apartment buildings.

Description of the This programme offers low-interest loans for the repair and upgrading of
measure apartment buildings. An emphasis is placed on comprehensive repairs, so
that owners spend financial resources in a purposeful manner. Projects
supported include:
 Rehabilitation of foundations and repairs of substructure
waterproofing
 Rehabilitation of static disorders in the supporting structure
 Building envelope repair and re-profiling of the contacts of
building envelope components
 Repair of enclosed or open balconies, including railings
 Insulation of that part of the envelope impervious to light, with
concurrent rehabilitation of the building envelope
 Replacement of external doors and windows with enhanced
materials in terms of heat and noise technology
 Repair and insulation of roofs, including vertical extensions, e.g.,
machine rooms, pergolas, etc.
 Regulation of the heating system
 Repair or replacement of the distribution systems for sanitary
installations and gas
 Replacement of open balconies or repair of enclosed and open
balconies, including railings
 Insulation of selected internal structures
 Improvement in the central regulation of the heating system
 Lift repair or replacement, including necessary intervention in the
lift shaft
 Repair or replacement of electrical equipment and wiring, strong
and weak current
 Replacement of the entrance walls to structures, with a design
ensuring protection from damage by vandals
 Refurbishment or replacement of entrance doors of flats
 Repair of building transfer stations or machine rooms with
water heating equipment
47
 Modernisation of the heating system, including the use of
renewable energy sources, associated with the replacement of
 distribution systems and, where appropriate, radiators
 Construction of a new boiler facility for use by the building
 Repair or modernisation of sanitary units of flats, including
distribution systems for electricity, sanitary installations and gas
 Repair or modernisation of ventilation technology
 Installation of a new lift or the repair or replacement of a lift,
including necessary intervention in the lift shaft
 Repair of lightning rods and fire equipment and structures
 Installation of thermo-solar panels
 Glazing of enclosed or open balconies
 Establishment, repair, or upgrade of ventilation equipment
 Replacement of entry steps and railings, low walls and paving
located in front of a building
 Repair of interior walls and ceilings
 Repair of floor finishes and floor constructions in common areas
 Repair of pathways
 Modification of the entrance and staircase area, including
mailboxes and lighting
 Measurement of heat consumption for the heating system, hot
water consumption, cold water consumption
 Replacement of cooking gas distribution systems with an
electricity distribution system
 Modernisation of the hot water system, especially lever taps, riser
pipe insulation, household hot water meters
 Changes to the layout of a flat
 Duplex extension by merging a flat on the top floor
 Project work, design documentation
 Static report
 Building equipment inspections
 Acquisition of building energy performance certificate

Regional application This measure can be applied throughout the Czech Republic.

Target group This programme is intended for all owners of apartment buildings,
irrespective of the technology used in construction (prefab, brick). The
programme is open to cooperatives, condominiums, natural and legal
persons, and municipalities which own an apartment building.

Effectiveness This programme focuses primarily on the overall regeneration of

apartment buildings. One of the requirements is that the heat and
technical parameters of buildings required by the relevant standard must
be met. From this perspective, the measure can be regarded as effective.

Service life The service life of this measure is 15 or more years.

48
Monitoring the The production of underlying documentation for an application is split
benefits of the into two parts, for the sake of simplification and to make the whole
measure process less expensive. Mandatory particulars of a loan application – Part
I – include a building energy performance certificate (if this needs to be
supplied) and the average thermal transmittance coefficient. The building
energy performance certificate specifies the class before and after the
implementation of the measure. The thermal transmittance coefficient
for the building envelope must comply with standard values. In the
absence of this obligation, compliance with the prescribed average
thermal transmittance coefficient (Uem) at the structure for which the
loan is to be used (in accordance with the government regulation) is
documented. Use of the loan must commence within six months of the
date on which the loan agreement is signed, and end within three years of
that date. The borrower must complete the repairs or upgrading of the
building within three years of the conclusion of the loan agreement.

To calculate the energy savings, the implementing public authority uses

the forecast savings method. An ex-ante generic approach is used, based
on the application for a loan from State Housing Development Fund
resources for the repair and upgrading of buildings in the Czech Republic,
in accordance with Government Regulation No 468/2012, and, where
measures concern the building envelope, also based on the building
energy performance certificate and proof of the average thermal
transmittance coefficient.

In relation to the energy performance of buildings, the additionality level

is set at the minimum amount required, or at an amount higher than that
admitted under existing legislation. Detailed information about the
programme can be found on the following website:
http://www.sfrb.cz/programy/uvery-na-opravy-a-modernizace-domu/

49
Measure number 1.2

TITLE OF THE Green Savings Programme

MEASURE

Sector Households and public sector buildings

Brief summary The Green Savings Programme focuses on support for the installation of
heating sources using renewable energy sources, and on investments in
energy savings during reconstruction and new development projects. The
programme supports the high-quality insulation of single-family houses
and apartment buildings, the replacement of non-ecological heating with
low-emission sources running on biomass and efficient heat pumps, the
installation of such sources in low-energy new structures, the installation
of solar thermal collectors, and construction to a passive energy standard.

The Czech Republic has obtained financial resources for this programme
mainly by selling its Assigned Amount Units (AAU) under the Kyoto
Protocol for reductions in greenhouse gas emissions. Under an
amendment to Act No 695/2004 on conditions for trading in greenhouse
gas emissions of 18 July 2008, the revenue from the sale of Assigned
Amount Units constitute revenue of the State Environmental Fund (SEF)
and can be used only to promote activities and projects aimed at reducing
greenhouse gas emissions. The State Environmental Fund is responsible
for the administration of the Green Savings Programme.

In the preparation of the programme for the period from 2008 to 2012,
an emissions surplus of about 150 million tonnes of CO2 eq. (or AAUs) was
anticipated. Of this, approximately 100 million AAUs were to be traded
under the IET (International Emission Trading) mechanism, pursuant to
Article 17 of the Protocol. It was estimated that the revenue from the sale
of this quantity of AAUs would be between CZK 15 billion and
CZK 25 billion (at a price of EUR 10 per AAU). In the end, the programme
allocation was CZK 20 billion.

The support was conceived to be semi-mandatory, i.e., prepared so that

programme resources could be used throughout the programming period
from 1 April 2009 to 31 December 2012 without any major change in
conditions, and so that subsidies could be granted to anyone who applied
for support and met those conditions. Resources can be used throughout
the whole period from the announcement of the programme until 31
December 2014. Applications for subsidies could be made either before
or after the implementation of the measure, but it was not possible to
apply for support under measures completed before the announcement
of the programme. The Green Savings Programme was extended as
50
concerns its focus on public buildings (GS PB) through to 2016
(Amendment 3 to Directive 7/2010). At the end of 2015, a second call
 was announced in the GS PB (Amendment 4 to Directive 7/2010, with the
draw-down of funds being available through to the end of 2017, rather
than 2014).

Description of the The Green Savings Programme supports the following measures in single-
measure family houses, apartment buildings, and public buildings:
 A. Heating energy savings
 A.1 Comprehensive insulation of the building envelope,
conforming to a low-energy standard.
 A.2 Quality insulation of selected parts of the building
envelope (partial insulation).
 B. New construction to a nearly zero-energy standard B1.
Promotion of new construction to a nearly zero-energy standard
 C. Use of renewable energy sources for heating and hot water
 C.1 Replacement of non-ecological heating with low-
emission sources running on biomass and efficient heat
pumps.
 C.2 Installation of low emission sources running on
biomass and efficient heat pumps in new buildings.
 C.3 Installation of solar thermal collectors.
 D. Bonus subsidy for selected combinations of measures
 E. Subsidy for the preparation and implementation of the
measures supported under the Programme
 F. Realisation of energy savings in public-sector buildings.”
 Since a change was made in the conditions of the Green Savings
subsidy programme on 10 August 2009, it has also been possible
to assist the complete insulation of pre-fabricated apartment
buildings under the A.1 intervention area.

Regional application Projects may be implemented anywhere in the Czech Republic.

Target group Eligible aid applicants are owners of single-family houses and apartment
buildings, i.e., natural persons, condominiums, housing cooperatives,
towns and municipalities (including boroughs) or businesses. In
accordance with Guidelines of the Ministry of the Environment 7/2010,
the Green Savings Programme was also open to the owners of public-
sector buildings (e.g., schools, social care institutions, retirement homes,
etc.).

Effectiveness The New Green Savings Programme, in the secondary programme

documents, clearly defines the requirements for each measure supported
with an immediate effect on reducing the consumption of fuel and energy
in final energy consumption for heating and hot water.
From this perspective, therefore, the measure may be regarded as
effective.
51

Service life These measures have an average service life of 15 to 30 years, from when
 they are put into operation.
The applicant is contractually bound to operate the facility for at least 15
years.
The applicant is bound, contractually or by the Decision to grant a subsidy
in the case of a public building, to operate the facility for at least 15 years.

Monitoring, Programme benefits are monitored ex ante, based on information from

verification, energy audits in the case of public-sector buildings; and for family and
methodology for apartment buildings, an expert opinion was required in line with
establishing energy Appendix I/7 to the Guideline of the Ministry of the Environment No
savings and 9/2009. CO2 savings are subsequently calculated based on the data
additionality provided in applications, using the validated calculation method. The
calculation is verified. Furthermore, the savings on heat used for heating
and the generation of heat from renewable sources can be calculated.

52
Measure number 1.3

TITLE OF THE New Green Savings Programme 2013

MEASURE

Sector Households

Brief summary This programme of the Ministry of the Environment, administrated by the
State Environmental Fund, focuses on energy savings and renewable
energy sources in single-family houses. This programme was active in
2013.

The call published in August 2013 focused exclusively on the insulation of

single-family houses, conditional on the replacement of unsatisfactory
heating sources powered by solid fossil fuels, separately in buildings
which were already insulated to the required standard, and the
installation of solar systems for hot water in single-family houses.

Description of the This programme is broken down into the following basic areas of
measure intervention:

A. Improvement in the energy performance of existing single-family

houses

 A.1. Level 1
o A.1.1. Level 1, requirement to comply with the average
thermal transmittance coefficient for the building
envelope
o A.1.2. Level 1, requirement to comply with the specific
annual heat demand for spatial heating
 A.2. Level 2
 A.3. Level 3
B. Construction of single-family houses with very high energy
performance

 B.1. Level 1
53
 B.2. Level 2
C. Efficient use of energy sources

 C.1. Replacement of heat sources using solid and specified liquid

fossil fuels, with efficient, environmentally friendly sources (with
the simultaneous implementation of measures under
intervention area A)
o C.1.1. Biomass boilers with manual fuel feeding
o C.1.2. Biomass boilers with automatic fuel feeding
o C.1.3. Biomass fireplace stoves with a hot-water
exchanger with manual fuel feeding and closed fireplace
inserts with heat exchanger
o C.1.4. Biomass fireplace stoves with an exchanger with
automatic fuel feeding
o C.1.5. Heat pumps (water – water system)
o C.1.6. Heat pumps (ground – water system)
o C.1.7. Heat pumps (air – water system)
o C.1.8. Gas condensing boilers
 C.2. Replacement of heat sources using solid and specified liquid
fossil fuels with efficient, environmentally friendly sources
(without the simultaneous implementation of measures under
intervention area A)
o C.2.1. Biomass boilers with manual fuel feeding
o C.2.2. Biomass boilers with automatic fuel feeding
o C.2.3. Biomass fireplace stoves with a hot water
exchanger with manual fuel feeding and closed fireplace
inserts with heat exchanger
o C.2.4. Biomass fireplace stoves with an exchanger with
automatic fuel feeding
o C.2.5. Heat pumps (water – water system)
o C.2.6. Heat pumps (earth – water system)
o C.2.7. Heat pumps (air – water system)
o C.2.8. Gas condensing boilers
 C.3. Installation of solar thermal systems
o C.3.1. solar system for hot water
o C.3.2. solar system for hot water and auxiliary heating
 C.4. Installation of mechanical ventilation systems with heat
recovery (with the simultaneous implementation of measures
from intervention area A)
D. Support for the preparation and implementation of the supported
measures

 D.1. Production of an expert opinion for intervention area A

 D.2. Arrangements for the professional technical supervision of a
client for intervention area A
 D.3. Production of an expert opinion and measurement of the
building envelope’s airtightness for intervention area B
 D.4. Production of an expert opinion for intervention area C.2
E. Bonus for a combination of selected measures
54
 E.1. Combination bonus with the simultaneous implementation of
measures from intervention area A and intervention sub-area C.3
  E.2. Combination bonus with the simultaneous implementation of
measures from intervention area A, intervention sub-area C.3,
and intervention sub-area C.1
 E.3 Combination bonus with the simultaneous implementation of
measures from intervention sub-area C.2 and intervention sub-
area C.3

Regional application Projects may be implemented anywhere in the Czech Republic.

Target group Support applicants are owners of and builders of single-family houses –
both natural and legal persons.

Effectiveness The New Green Savings Programme 2013, in the secondary programme
documents, clearly defines the requirements for each measure supported
with an immediate effect on reducing the consumption of fuel and energy
in final energy consumption for heating and hot water.

From this perspective, therefore, the measure may be regarded as

effective.

Service life These measures have an average service life of 15 to 30 years, from when
they are put into operation. The applicant is contractually bound to
operate the facility for at least 10 years.

Monitoring, Administration is governed by rules laid down in Guidelines of the

verification, Ministry of the Environment + Annexes (Guideline of the Ministry of the
methodology for Environment No 9/2013, as amended by Addendum No 2/NGS 2013/).
establishing energy
savings and Applicants submit applications initially electronically and then on paper.
additionality
In addition to formal annexes, the following documents are also
submitted:
- A cover sheet setting out the technical parameters (a summary of
fundamental technical information and figures – similar to a registration
sheet)
- An expert opinion (general designation – it contains two parts):
- a) design documentation (accompanying and technical report,
55
drawings) – only an authorised person of the Czech Chamber of Chartered
Engineers and Technicians or the Czech Chamber of Architects may draw
up such documentation
- b) energy assessment (in accordance with Implementing Decree
480/2012) – only an energy specialist with authorisation to conduct
energy audits and energy assessments may draw up this documentation

Applications are evaluated at various stages of implementation – some

prior to commencement, others while they are in progress, and some on
completion of implementation (as elected by the applicant).

Checks on the correctness of applications (the sample size is 100% of

applications) focus primarily on inspecting the cover sheet setting out
technical parameters and the expert opinion (the assessment of input
data and a comparison of resultant values with the programme terms and
conditions).

However, subsidies are always paid out ex-post. Prior to payment,

applicants are required to present the fund with all documents associated
with the implementation of the measure (invoices, proof of payment,
handover reports, occupancy permit/consent to the use of a structure – if
relevant)

A selected sample of applications is also subject to supervision or public-

administration checks (associated with an on-the-spot check of
implementation)

To calculate the energy savings, the implementing public authority uses

the method of forecast savings. An ex-ante generic approach is used
based on the expert opinion, and, where measures relate to the building
envelope, on the building energy performance certificate.

A precise description of the parameters required can be found here:

New Green Savings 2013:
http://www.nzu2013.cz/vyrobci-a-dodavatele/vyrobci/smernice-c-9-
2013-ve-zneni-dodatku-c-1/

56
Measure number 1.4

TITLE OF THE New Green Savings Programme

MEASURE

Sector Households and public-sector buildings

Brief summary This programme of the Ministry of the Environment, administrated by the
State Environmental Fund, focuses on energy savings and the efficient use
of the energy sources in structures. This programme is running between
2014 and 2020, and support for it may be drawn for energy-savings
measures in single-family houses, apartment buildings, and public-sector
buildings.

The first call of 2014 was announced in April of that year and focused on
three types of measures – on improving the energy performance of
existing single-family houses, on the construction of single-family houses
with very high energy performance, and on the efficient use of energy
sources. The second call, focused on single-family houses, was announced
in May 2015. Under this call, the following measures were supported:
improving the energy performance of existing single-family houses
(subsidies for the insulation of the building envelope – replacement of
windows and doors, insulation of perimeter walls, roof, ceilings, and
floors; support for partial as well as comprehensive measures), support
for the construction of single-family houses with very high energy
performance (subsidies for the construction of single-family houses with
very high energy performance, promoting efficient use of energy sources
(subsidies for the replacement of a non-ecological source of heat
(incinerating coal, coke, coal briquettes or heating oil) with efficient
environmentally friendly sources (e.g., a biomass furnace, heat pump, or
condensation gas furnace); for the replacement of electric heating with
systems with a heat pump; for the installation of solar thermal systems;
for the installation of forced ventilation systems with recovery of heat
from the waste air).
57
With this call, the first call for public buildings was also called in May
2015, for apartment buildings in Prague, which focused on supporting an
increase in the energy performance of existing apartment buildings in the
City of Prague (subsidies for the insulation of the building envelope –
replacement of windows and doors, insulation of perimeter walls, roof,
ceilings, and floors; replacement of a non-ecological source of heat
(incinerating coal, coke, coal briquettes or heating oil) with efficient
environmentally friendly sources (e.g., a biomass furnace, heat pump or
condensation gas furnace); for the replacement of electric heating with
systems with a heat pump; for the installation of solar thermal systems;
for the installation of forced ventilation systems with recovery of heat
from the waste air; the measures may be carried out individually or in
diverse combinations).

In October 2015, the third call for single-family houses was announced,
structured as a continuous call. Applications will be accepted
continuously throughout the implementation of the sub programme for
single-family houses, in connection with the provision of sources of
financing for the programme, from the proceeds of auctions of emission
allowances in the EU ETS system (applications are expected to be
accepted through to the end of 2021). Funds will be added to the
allocation of the call throughout the existence of the sub-programme; the
system for the receipt of applications anticipates a stock of applications
into which applications will be placed if there is a momentary shortage of
disposable funds. In the third call, the following measures are supported:
improving the energy performance of existing single-family houses
(subsidies for the insulation of the building envelope – replacement of
windows and doors, insulation of perimeter walls, roof, ceilings, and
floors; support for partial as well as comprehensive measures), support
for the construction of single-family houses with very high energy
performance (subsidies for the construction of single-family houses with
very high energy performance, promoting efficient use of energy sources
(subsidies for the replacement of a non-ecological source of heat
(incinerating coal, coke, coal briquettes or heating oil) with efficient
environmentally friendly sources (e.g., a biomass furnace, heat pump,
condensation gas furnace, or a connection to a heat supply system) – this
support cannot be provided to individuals, who can newly gain support
for the replacement of sources from the Operational Programme
Environment (PA2, S0 2.1); for the replacement of electric heating with
systems with a heat pump; for the installation of solar thermal systems;
for the installation of 58
forced ventilation systems with recovery of heat
 from the waste air).

In the upcoming period, another call should be announced, for supporting

energy savings in apartment buildings as well as in public-sector buildings.
The specific conditions and schedule of the calls have not yet been
determined, but 21% of the total volume of funds (i.e., of the aggregate
estimated allocation of CZK 27 bn.), and 30% of the funds for public-
sector buildings.

Description of the Support under the programme is channelled into the following areas of
measure intervention:

SINGLE-FAMILY HOUSES

A. Improvement in the energy performance of existing single-family

houses

 Sub-areas of support
o A.0 – sub-measures pertaining to the building envelope
o A.1 – shallow comprehensive measures concerning the
building envelope
o A2 – comprehensive measures concerning the building
envelope
o A.3 – thorough measures concerning the building
envelope
 A.4. Production of an expert opinion and ensuring expert
technical supervision for sub-areas of intervention A.0, A.1, A.2 or
A.3

B. Construction of single-family houses with very high energy

performance

 B.1. House with very high energy performance

 B.2. House with very high energy performance with an emphasis
on the use of renewable sources of energy
 B.3. Production of an expert opinion and measurement of the
building envelope’s airtightness for intervention sub-area B.1 or
B.2
 B.4 Special terms, if products with a type 3 environmental
declaration are used.
C. Efficient use of energy sources

 C.1. Replacement of heat sources using solid and specified liquid

fossil fuels, with efficient, environmentally friendly sources (with
the simultaneous implementation of measures under
intervention area59 A)
o C.1.1. Biomass boilers with manual fuel feeding
 o C.1.2. Biomass boilers with automatic fuel feeding
o C.1.3. Biomass fireplace stoves with a heat exchanger
with manual fuel feeding and closed fireplace inserts with
hot-water exchanger
o C.1.4. Biomass fireplace stoves with an exchanger with
automatic fuel feeding
o C.1.5. Heat pumps (water – water system)
o C.1.6. Heat pumps (ground – water system)
o C.1.7. Heat pumps (air – water system)
o C.1.8. Gas condensing boilers
o C.1.9. Connection to a heat supply system with a share of
RES higher than 50%
 C.2. Replacement of heat sources using solid and specified liquid
fossil fuels, with efficient, environmentally friendly sources
(without the simultaneous implementation of measures under
intervention area A)
o C.2.1. Biomass boilers with manual fuel feeding
o C.2.2. Biomass boilers with automatic fuel feeding
o C.2.3. Biomass fireplace stoves with a hot-water
exchanger with manual fuel feeding and closed fireplace
inserts with heat exchanger
o C.2.4. Biomass fireplace stoves with a heat exchanger
with automatic fuel feeding
o C.2.5. Heat pumps (water – water system)
o C.2.6. Heat pumps (earth – water system)
o C.2.7. Heat pumps (air – water system)
o C.2.8. Gas condensing boilers
o C.2.9. Connection to a heat supply system with a share of
RES higher than 50%
 C.3. Installation of solar thermal and photo-voltaic systems
o C.3.1. solar system for heating water
o C.3.2. solar system for hot water and auxiliary heating
o C.3.3 solar photo-voltaic systems for the preparation of
hot water with direct heating
o C.3.4 solar photo-voltaic systems linked to a distribution
system without accumulation
o C.3.5 solar photo-voltaic systems linked to a distribution
system with accumulation and a total utilisable gain of ≥
1,700 kWh/year-1
o C.3.6 solar photo-voltaic systems linked to a distribution
system with accumulation and a total utilisable gain of ≥
3,000 kWh/year-1
 C.4. Installation of forced ventilation systems with heat recovery
 C.5. Production of an expert opinion and measurement of the
building envelope’s airtightness for intervention sub-area C.1,
C.2, C.3, or C.4
 C.6 Special terms for the use of products for which a type 3
environmental declaration has been drawn up.
60
APARTMENT BUILDINGS
A. Increasing the energy performance of existing apartment
 buildings
Includes the insulation and replacement or installation of a source of heat
and others, support for the drawing up of an expert opinion and for
expert technical supervision.

Sub-areas of intervention: 1) A.0 – sub measures

 Serves as an initial sub-area and enables the implementation of

sub-measures
 Reduction of the calculated measured non-renewable primary
energy EpN.A or total energy supplied, EP.A, after the
implementation of the measure, by at least 20%, as compared to
the condition prior to its implementation
 Compliance with the requirement of the thermal transmittance
coefficient for supported building envelope structures

2) A.1 – comprehensive measures

 Reduction of the calculated, measured non-renewable primary
energy EpN.A or total energy supplied, EP.A, after the
implementation of the measure, by at least 30%, as compared to
the condition prior to its implementation
 Attainment of class C for the parameter of non-renewable
primary energy EpN.A or total energy supplied EP.A
 Compliance with the requirement of the thermal transmittance
coefficient in accordance with ČSN 73 0540-2 for supported
building envelope structures
3) A.2 - Thorough comprehensive measured
 Reduction of the calculated measured non-renewable primary
energy EpN.A or total energy supplied, EP.A, after the
implementation of the measure, by at least 40%, as compared to
the condition prior to its implementation
 Attainment of class A or B for the parameter of non-renewable
primary energy EpN.A or total energy supplied EP.A
 Compliance with the requirement of the thermal transmittance
coefficient, in accordance with ČSN 73 0540-2, for supported
building envelope structures

C. Efficient use of sources of energy

 Replacement of original main sources of heat utilising fossil fuels
that do not reach the parameters of the 3rd emission class, with
efficient, environmentally friendly sources (intervention sub-area
C.1 and C.2)
 For the replacement of electrical heating, with systems with a
heat pump (intervention sub-area C.1 and C.2)
 For the replacement of gas heating, with systems with a gas heat
pump or a combined electricity and heat generation unit using
natural gas as fuel (intervention sub-area C.1 and C.2)
 For the installation of solar thermal and photo-voltaic systems
(intervention sub-area
61 C.3)
 For the installation of a forced ventilation system with heat
recovery from the waste air (intervention sub-area C.4)
  Support for the procuring of an expert opinion and for obtaining
technical expert oversight (intervention sub-area C.5)
In areas C.1 and C.2, installation of listed sources compliant with the eco-
design requirements, pursuant to Commission Regulation No 813/2013
and (EU) 2015/1189, are supported.

Regional application Projects in the sphere of single-family houses may be implemented

anywhere in the Czech Republic; projects in the sphere of apartment
buildings may only be supported if they are in the City of Prague.

Target group SINGLE-FAMILY HOUSES

Support applicants are owners of and builders of single-family houses –

both natural and legal persons.

Note: Support cannot be provided for the replacement of boilers using

solid fuels owned by individuals conducted after 15 July 2015 (inclusive),
who are eligible for support under the so-called “boiler subsidies” from the
Operational Programme Environment 2014-2020, priority axis 2, specific
objective 2.1 – Reduction of emissions from local household heating
contributing to the exposure of the population to concentrations of
pollutants.

APARTMENT BUILDINGS

Support applicants are owners of apartment buildings – both natural and

legal persons.

Effectiveness The New Green Savings Programme, in the secondary programme

documents, clearly defines the requirements for each measure
supported, with an immediate effect on reducing the consumption of fuel
and energy in final energy consumption for heating and hot water.

From this perspective, therefore, the measure may be regarded as

effective.

Service life The applicant is contractually

62 bound to operate the facility for 10 years.
Monitoring, Administration is governed by rules laid down in the relevant Guideline of
verification, the Ministry of the Environment + Annexes (Guideline No 1/2014, as
methodology for amended by Addendum No 2/NGS/ and Guideline 2/2015).
establishing energy
savings and Applicants submit applications initially electronically and then on paper.
additionality
In addition to the formal annexes, the following items are submitted:
- A cover sheet setting out the technical parameters (a summary of
fundamental technical information and figures – similar to a registration
sheet)
- An expert opinion (general label – it contains two parts):
- a) design documentation (accompanying and technical report,
drawings) – only an authorised person of the Czech Chamber of Chartered
Engineers and Technicians or the Czech Chamber of Architects may draw
up such documentation
- b) energy assessment (in accordance with Implementing Decree
480/2012) – only an energy specialist with authorisation to conduct
energy audits and energy assessments may draw up this documentation
c) Building energy performance certificate (pursuant to Decree
78/2013) – from the 2nd call for single-family houses and from the 1st call
for apartment buildings, energy assessment may also be carried out by a
specialist authorised to draw up building energy performance certificates,
and the energy assessment has been replaced by an energy evaluation in
the Programme conditions.

Applications are evaluated at various stages of implementation – some

prior to commencement, others while they are in progress, and some on
completion of implementation (as elected by the applicant).

Checks on the correctness of applications (the sample size is 100% of

applications) focus primarily on inspecting the cover sheet setting out
technical parameters and the expert opinion (the assessment of input
data and a comparison of resultant values with the programme terms and
conditions)

However, subsidies are always paid out ex-post. Prior to payment,

applicants are required to present the fund with all documents associated
with the implementation of the measure (invoices, proof of payment,
handover reports, occupancy permit/consent to the use of a structure – if
relevant)

A selected sample of applications is also subject to supervision or public-

administration checks (associated with an on-the-spot check of
implementation)

The fund does not carry out retrospective monitoring of supported

buildings

The ex-ante method will be used in the reporting of energy savings in the
63
NGS 2014-2020 Programme. In the agreement, the beneficiary
undertakes to implement energy savings in line with the approved design.
The evaluation of energy savings in the NGS 2014-2020 Programme will
be based on a separate evaluation of each project implemented. To
calculate the energy savings, the implementing public authority uses the
method of forecast savings. An ex-ante generic approach is used based on
the expert opinion, and, where measures relate to the building envelope,
on the building energy performance certificate. This energy saving will be
clearly quantified, in terms of the structure of its composition, life, and
technology used.

A precise description of the parameters required can be found here:

New Green Savings:
http://www.novazelenausporam.cz/zadatele-o-dotaci/rodinne-
domy/prvni-vyzva/smernice-c-1-2014-ve-zneni-dodatku-c-1/

64
Measure number 1.5

TITLE OF THE JESSICA Programme

MEASURE

Sector Households

Brief summary Low-interest long-term loans to revitalise deprived urban zones

Description of the This programme offers long-term low-interest loans for the
measure reconstruction and upgrading of apartment buildings in deprived zones.
The activities supported include:
 insulation of the building envelope, insulation of interior
structures
 removal of static disorders in supporting structures, removal of
structural and functional defects
 rehabilitation of foundations and substructure waterproofing;
 reconstruction of technical equipment in the building (upgrade of
the heating system, power lines, replacement of heat, gas, and
water distribution systems, upgrade of ventilation technology,
lifts)
 replacement or upgrading of enclosed or open balconies, railings

Arrangements to ensure modern social housing

Regional application This measure may be applied only in the deprived zones of 41 towns and
cities with an Integrated Urban Development Plan.

Target group This programme is intended for all owners of apartment buildings,
irrespective of their legal personality
 Municipalities
 Housing cooperatives
 Other legal and natural persons owning an apartment building
 Condominiums
 Municipalities, cities, and non-profit organisations specialising in
social housing

Effectiveness The programme focuses on the renovation and upgrade of apartment

buildings. In projects focused on the insulation of the building envelope,
the monitoring indicator “Saving on energy consumption in apartment
buildings” is monitored. The target value of the monitoring indicator has
been exceeded.
65
From this perspective, the measure can be regarded as effective.
Service life This measure has a service life of 20 or more years.

Monitoring, To calculate the energy savings, the implementing public authority uses
verification, the method of forecast savings. An ex-ante generic approach is used,
methodology for based on the building energy performance certificate. The building
establishing energy energy performance certificate is part of the loan application.
savings and
additionality This calculation of the energy saving will be clearly quantified in terms of
the structure of its composition, service life, and the technology used.
The additionalities of each project in the JESSICA Programme will be
thereby checked clearly and separately, and the overall additionality will
be maintained for the JESSICA programme as a whole.

In relation to the energy performance of buildings, the level of

additionality is set at the minimum amount required, or at an amount
higher than that admitted under existing legislation. Detailed information
about the programme can be found on the following website:
http://www.sfrb.cz/programy/program-jessica/

66
Measure number 1.6

TITLE OF THE Integrated Regional Operational Programme

MEASURE

Sector Households

Brief summary A programme of the Ministry of Regional Development focusing on four

basic objectives of the Czech Republic’s regional policy, as formulated in
the Czech Republic’s Regional Development Strategy for 2014–2020:
• to promote an increase in competitiveness and the harnessing of
the economic potential of the regions (growth objective);
• to lessen the growing gaps in the negative regional differences
(balancing objective);
• to reinforce environmental sustainability (preventive objective);
• and to optimise the institutional framework for regional
development (institutional objective).

Description of the This programme is broken down into the following priority axes:
measure 1. Competitive, accessible and safe regions
2. Improvements in public services and living conditions for regional
inhabitants
3. Good territorial governance and more efficient public institutions
4. Community-guided local development
5. Technical assistance

In terms of energy savings, importance is attached to priority axis 2 and

its investment priority 4c – Support of energy efficiency, smart energy
management systems, and the use of energy from renewable sources in
public infrastructures, inter alia in public buildings and in housing.

Regional application All Czech regions (NUTS 3) except the City of Prague
- Support will be provided in the form of a subsidy, throughout the Czech
Republic, except the City of Prague.
- Loans will be provided in the territory defined in the conclusions of the
ex-ante evaluation of the financial instrument.

Target group - Owners of apartment buildings

- Residents of apartment buildings
- Residents of municipalities

Types of beneficiaries in the case of a subsidy: owners of apartment

buildings and condominiums – buildings with four or more
67
apartments, except individuals not engaged in business.
 Types of beneficiaries in the case of the financial instrument:
owners of apartment buildings and condominiums – buildings with
four or more apartments; administrator of a fund of funds / financial
instrument administrator, based on the outcome of the ex-ante
evaluation of the financial instrument.

Effectiveness The individual measures supported have an immediate impact on

reducing energy consumption. This measure can therefore be regarded as
effective.

Service life The average service life of these measures is 15 to 30 years.

Monitoring, Unlike the Operational Programme Enterprise and Innovation for

verification, Competitiveness and the Operational Programme Environment, for
methodology for example, the Integrated Regional Operational Programme does not have
establishing energy a direct predecessor. Up to the present, the support of apartment
savings and buildings has been provided in the Czech Republic by programmes which
additionality provided support for comprehensive measures in the renovation of
apartment buildings, at the Ministry of Regional Development (i.e., not
only measures supporting energy efficiency), or by a sub-programme of
the Green Savings Programme (2009–2012).

The programme document for the Integrated Regional Operational

Programme was approved by the European Commission in the first half of
2015. During the second half of the year, the first call of Investment
priority 4c, priority axis 2 – Support for energy efficiency, smart energy
management systems, and use of energy from renewable sources in
public infrastructure, including in public buildings and in housing, was
prepared.

To evaluate the energy savings, the public authority will use the method
of ex-ante forecast savings. An ex-ante generic calculation method will
use the documents prescribed by Act No 406/2000, on energy
management. The documents will constitute a part of the subsidy or
financial instrument application.

This calculation of the energy saving will be clearly quantified in terms of

the structure of its composition, service life, and the technology used.
The additionalities of each project in the IROP Programme will be thereby
checked clearly and separately, and the overall additionality will be
maintained for the IROP programme as a whole.

68
Measure number 1.7

TITLE OF THE Joint Boiler Replacement Promotion Scheme

MEASURE

Sector households

Brief summary Subsidy for the replacement of manually filled boilers running on solid
fuel, with new efficient low-emission heat sources in households.

Description of the The aim of the Joint Boiler Replacement Promotion Scheme is to reduce
measure air pollution generated by small combustion sources up to a thermal
output of 50 kW, i.e., local incinerators using solid fuel. The subsidy is for
the replacement of existing manually filled boilers running on solid fuel,
with new efficient low-emission heat sources.

The programme is based on the principle that equal amounts are

contributed by the Ministry and the region. This means that the more
money the regions manage to find, the more they will receive from the
Ministry.

Regional application Projects may be implemented anywhere in the Czech Republic.

Target group Owners of single-family houses in Czech regions signing up for the
programme. To date, the regions involved are Ústí nad Labem, Moravia-
Silesia, Central Bohemian, Hradec Králové, and Pilsen.

Effectiveness The programme only supports low-emission heat sources. The measure
may therefore be regarded as effective.

Service life The average service life of these measures is 15 years.

69
Monitoring, Administration will be governed by rules laid down in Guidelines of the
verification, Ministry of the Environment.
methodology for
establishing energy However, subsidies are always paid out ex-post. Prior to payment,
savings and applicants are required to present the fund with all documents associated
additionality with the implementation of the measure.

A selected sample of applications is also subject to supervision or public-

administration checks (associated with an on-the-spot check of
implementation)

The fund does not carry out retrospective monitoring of supported

projects.

To calculate the energy savings, the implementing public authority uses

the method of forecast savings. An ex-ante generic approach is used,
based on the number of installations replaced.

Measure number 1.8

TITLE OF THE Operational Programme Environment 2007–2013

MEASURE

Sector Services

Brief summary Support of energy efficiency in two priority axes of the Operational
Programme Environment.
70
Description of the The Operational Programme Environment is one of the Czech Republic’s
measure sectoral programmes approved by the European Commission for the
2007–2013 programming period. The Operational Programme
Environment focuses on improving the quality of the environment. It
helps to improve the state of the air, water, and soil; it addresses waste
and industrial pollution; and it promotes care for the landscape, the use
of renewable sources of energy, and the building of infrastructure for
environmental awareness. The Operational Programme Environment has
eight priority axes, which are broken down into areas of intervention. The
priority axes are:
1. Improvement of water management infrastructure and reduction
of flood risk
2. Improvement of air quality and reduction of emissions
3. Sustainable use of energy sources
4. Improvement of waste management and rehabilitation of old
ecological burdens
5. Limitation of industrial pollution and reduction of environmental
risks
6. Improvements in nature and the landscape
7. Development of infrastructure for environmental education,
consultancy, and awareness
8. Technical assistance

Regional application This measure can be applied throughout the Czech Republic.

Target group This programme is designed primarily for beneficiaries in the public
sector. Beneficiaries may be, for example, municipalities, regions,
organisations partly funded from the public purse, state enterprises, state
organisations, organisational units of the state, churches and religious
communities, non-governmental non-profit organisations, and, in certain
areas of intervention, also business entities and natural persons.

Effectiveness In terms of energy savings, the most significant priority axis is number
three, which supports projects for the construction or reconstruction of
facilities using renewable sources of energy and cogeneration, and
projects aimed at energy savings and the reuse of waste heat in the non-
business sector. Priority axis 2 is also significant. It focuses on improving
71 cases, reduces energy consumption.
air quality, which, in some
Service life For investment measures, the service life is 15 or more years.

Monitoring, 1. Submission of an application – the basic documents and accompanying

verification, the application are the energy audit, the building envelope energy label,
methodology for the budget, and a declaration by the designer as to the area of structures
establishing energy insulated.
savings and
additionality The energy consumption balance before and after implementation, and
the project benefits (particularly reduction in CO2 emissions and the
energy savings achieved), are taken from the energy audit and included in
the application.

In the application, the average building envelope coefficient (before and

after implementation) and the required building envelope coefficient (a
reference building) are sourced from the building envelope energy label
(this may be part of the energy audit). Compliance with the thermal
transmittance coefficient for the individual structures insulated is also
checked by reference to the building envelope energy label.

2. Design documentation, including any updates to the declaration on the

area of structures insulated, and a works contract, including the budget,
are submitted for the issuance of a subsidy decision.

The indicator values in the subsidy decision are taken from the design
documentation or the designer’s declaration (the square metres of
structures insulated). The energy-saving parameters and CO2 reductions
are based on the application, or, where appropriate, the updated energy
audit (if there is a change in the project). If the figures differ from those in
the application, a reassessment must be conducted to determine
whether the project and the parameters changed would be supported. If
this is not confirmed, the result would be the withdrawal of support.

3. Final project evaluation (typically 15 months from permanent

commissioning – occupancy permit). Here, the opinions of the designer
and the energy auditor are put forward.

The designer’s opinion confirms the compliance of the implementation

with the design documentation submitted for the subsidy decision (the
scope of the work, the structures insulated).

The energy auditor’s opinion, by reference to actual data (energy

consumption), confirms compliance or non-compliance with the
monitoring indicators (energy savings, reductions in CO2), and where
appropriate comments are added on non-compliance, accompanied by a
proposal for remedial action.
72
4. Operational monitoring reports (over the duration of sustainability) –
here, only confirmation is provided, that, following implementation, there
have been no changes in relation to the use and ownership of the subject
of support.

The energy savings attained in the Operational Programme Environment

2007-2013 are evaluated through an independent evaluation of each of
the projects implemented. The evaluation of each project precisely states
the energy saving reported by the energy carrier. This energy saving is
clearly quantified in terms of the structure of its composition, service life,
and technology used. The additionalities of each project in the OPEnv.
2007-2013 will be thereby checked clearly and separately, and the overall
additionality will be maintained for the OPEnv. 2007-2013 programme as
a whole.

To calculate the energy savings, the implementing public authority uses

the method of forecast and measured savings. Two generic approaches
are used – an ex-ante approach based on energy audits, and an ex-post
approach based on monitoring reports or energy assessments.
Additionality is established by the higher required heat and technical
properties of the building envelope than those provided for by legislation.
A requirement relating to ‘best available techniques’ is established for the
technical facilities of buildings.

73
Measure number 1.9

TITLE OF THE Operational Programme Environment 2014-2020

MEASURE

Sector Services, households, industry

Brief summary Support of energy efficiency in two priority axes of the Operational
Programme Environment.

Description of the The Operational Programme Environment focuses on improving the

measure quality of the environment. It helps to improve the state of the air, water,
and soil; it addresses waste and industrial pollution; and it promotes care
for the landscape, the use of renewable sources of energy, and the
building of infrastructure for environmental awareness. The Operational
Programme Environment 2014–2020 has two priority axes fewer than in
2007–2013. It has six priority axes, which are broken down into areas of
intervention. The priority axes are:
1. Improvement of water quality and reduction of flood risk
2. Improvement of air quality in human settlements
3. Waste and material flows, ecological burdens and risks
4. Protection of and care for nature and landscape
5. Energy savings
6. Technical assistance
For the purposes of energy savings, the most important are priority axes 2
and 5.

PA 2

PA 2- SO 2.1 – Specific objective 1: To reduce emissions from local heating

by households contributing to exposure of the population to an above-
the-limit concentration of pollutants.

PA 2 – SO 2.2 - Specific objective 2: To reduce emissions from

stationary sources contributing
74 to exposure of the population to an
above-the-limit concentration of pollutants
 PA 5
PA 5 – SO 5.1 - Specific objective 1: To improve the energy
performance of public buildings and increase the utilisation of
renewable sources of energy
PA 5 – SO 5.2 - Specific objective 2: To attain a high, energy standard
of new public buildings

Regional application This measure can be applied throughout the Czech Republic, except the
City of Prague.

Target group In priority axis 2:

SO 2.1: Owners of single-family houses

SO 2.2: regions, municipalities, voluntary associations of municipalities,

organisational units of the state, state enterprises, public research
institutions, public institutions, boroughs of the City of Prague,
organisations partly funded from the public purse, higher-education
institutions, schools and school facilities, non-governmental non-profit
organisations (publicly beneficial companies, foundations, endowment
funds, institutes, associations), churches and religious communities and
their associations, enterprises, business corporations and cooperatives,
individuals engaged in business.

In priority axis 5: Organisational units of the state, state organisations

partly funded from the public purse, municipal organisations partly
funded from the public purse, regional organisations partly funded from
the public purse, municipalities, regions, associations of municipalities,
public research institutions, public and state higher-education
institutions, legal persons providing educational services, civic
associations, churches and religious communities, publicly beneficial
companies, other entities serving the public interest, in particular
organisational units of municipalities, organisational units of regions, and
state organisations established by special law.

Effectiveness In priority axes 2 and 5, the measure can be regarded as effective.

75
Service life For investment measures, the service life is 15 or more years.

Monitoring, The programme is currently under preparation; nevertheless, at this point

verification, we assume that the methodology and procedures will be similar. For
methodology for informational purposes, the procedure applied under Operational
establishing energy Programme Environment 2007–2013 is attached.
savings and
additionality 1. Submission of an application – the basic documents accompanying the
application are the energy audit, the building envelope energy label, the
budget, and a declaration by the designer as to the area of structures
insulated.

2. Design documentation, including any updates to the declaration on the

area of structures insulated, and a works contract, including the budget,
are submitted for the issuance of a subsidy decision.

The indicator values in the subsidy decision are taken from the design
documentation or the designer’s declaration (the square metres of
structures insulated). The energy-saving parameters and CO2 reductions
are based on the application, or, where appropriate, the updated energy
audit (if there is a change in the project). If the figures differ from those in
the application, a reassessment must be conducted to determine
whether the project and the parameters changed would be supported. If
this is not confirmed, the result would be a withdrawal of support.

3. Final project evaluation (typically 15 months from permanent

commissioning – occupancy permit). Here, the opinions of the designer
and the energy auditor are put forward.

The designer’s opinion confirms the compliance of implementation with

the design documentation submitted for the subsidy decision (the scope
of the work, the structures insulated).

The energy auditor’s opinion, by reference to actual data (energy

consumption), confirms compliance or non-compliance with the
monitoring indicators (energy savings, reductions in CO2), and where
appropriate comments are added on non-compliance, accompanied by a
proposal for remedial action.

4. Operational monitoring reports (over the duration of sustainability) –

here, only confirmation is provided, that, following implementation, there
have been no changes in relation to the use and ownership of the subject
of support.

The energy savings attained in the Operational Programme Environment

2007-2013 will be evaluated through an independent evaluation of each
of the projects implemented. The evaluation of each project states the
76
energy saving reported by the energy carrier. This energy saving is clearly
quantified in terms of the structure of its composition, service life, and
technology used. The additionalities of each project in the OPEnv. 2007-
2013 will be thereby checked clearly and separately, and the overall
additionality will be maintained for the OPEnv. 2007-2013 programme as
a whole.

According to a binding document sent by the Czech Republic to the

European Commission in December 2013: “Policy measures introduced
for the purpose of attaining energy savings on the part of end customers
in the Czech Republic” constitute the additionalities of the OPEnv. 2014-
2020.

PA 2 and PA 5 – BAT (services, households, industry)

Energy savings attained in the OPEnv. will be reported using the ex-ante
method. The beneficiary undertakes in the agreement to implement
energy savings in line with the design approved. Additional ex-post
verification will take place once every five years, based on an ex-post
energy assessment.

77
Measure number 1.10

TITLE OF THE State programmes on the promotion of energy

MEASURE savings and the utilisation of renewable energy
sources (EFEKT)

Sector Services, cross-cutting

Brief summary Support for energy savings by increasing public awareness, public sector
support for the economic management of energy.

Description of the The aim of the EFEKT Programme is to increase energy savings, by raising
measure awareness among small customers, by increasing the quality of energy
services, and by supporting the public sector in the economic
management of energy. It focuses on raising awareness and
disseminating information (with a stress on energy-saving measures and
the use of renewable sources of energy), and on small-scale investment
projects (the implementation of energy-saving projects primarily in
municipalities).

Regional application This measure can be applied throughout the Czech Republic.

Target group Undertakings, municipal boroughs, municipalities, regions, schools, social

and health care facilities, special-interest associations, clubs, chambers.
The target groups differ depending on the specific activity.

Projects targeted at The activities supported are as follows:

end users  measures to reduce the energy intensity of public street lighting;
 reconstruction of the heating system and heat generator in a
building;
 energy consulting provided by energy consulting and information
centres (ECIC);
 courses and seminars about the energy sector;
 publications, guides, and informative materials about the energy
sector;
 introduction of an energy management system;
 preparation of energy-saving projects handled using the EPC
method.

Effectiveness This measure is quite clearly effective, because it helps to increase energy
savings while reducing energy intensity.
78
Service life For investment measures, the service life is 10 or more years. The effect
 of procuring noninvestment projects can be considered permanent.

Monitoring, To calculate the energy savings, the implementing public authority uses
verification, the method of forecast and measured savings. Two generic approaches
methodology for are used – an ex-ante approach based on energy audits, and an ex-post
establishing energy approach based on monitoring reports or energy assessments.
savings and
additionality Projects where the return is too quick and where the measures do not
support a particularly long return are not supported.

79
Measure number 1.11

TITLE OF THE Operational Programme Prague – Growth Pole

MEASURE

Sector Transport, services

Brief summary Support for an improvement in the energy performance of buildings and
technical equipment used to ensure the operation of urban public and
road transport, implementation of pilot projects converting municipal
buildings with poor energy performance to buildings with nearly zero
energy consumption.

Description of the The aim of Operational Programme Prague – Growth Pole is to contribute
measure to the Union strategy for intelligent and sustainable growth, promoting
the incorporation and attainment of economic, social, and territorial
cohesion. The Operational Programme contains five priority axes, namely:

Priority axis 1: Reinforcement of research, technological development

and innovation
Priority axis 2: Sustainable mobility and energy savings
Priority axis 3: Support of social inclusion and the fight against poverty
Priority axis 4: Training and education
Priority axis 5: Technical assistance

In terms of energy savings, investment priority 1 of priority axis 2 –

specific objective 2.1. Energy savings in municipal buildings attained,
among other things, by using appropriate renewable sources of energy,
energy-efficient facilities, and intelligent management systems.

The specific objective should therefore be attained by support for

improving the energy performance of buildings and technical facilities,
used to ensure the operation of urban public and road transport, and
through the implementation of projects converting municipal buildings
with poor energy performance to buildings with nearly zero-energy
consumption (or to buildings with a passive energy standard) with
integrated intelligent systems. Use of solutions based on ICT technologies
for energy efficiency, intelligent energy consumption, and ITS systems will
be applied throughout the specific objective.

This support is not designed for the housing sector.

Regional application This measure can be applied only in the City of Prague.
80
Target group City of Prague
 Organisations founded by the City of Prague
Dopravní podnik hl. m. Prahy, a.s. (Prague transport company)
Technická správa komunikací hl. m. Prahy (Prague road maintenance
company)
Organisations for research and dissemination of knowledge (in
accordance with the definition in the Community Framework for state aid
for support, research, and innovations)

Effectiveness The objective focuses on supporting energy efficiency, intelligent energy

management systems, and utilisation of energy from renewable sources
in public infrastructure and in public buildings.

Service life This measure has a service life of 30 or more years.

Monitoring of the Within the scope of the energy-saving measure, this entails a
benefits of the complementary programme to the Operational Programme Environment
measure in the City of Prague; nevertheless, to calculate the energy savings, the
implementing public authority uses the method of forecast and measured
savings. Two generic approaches are used – an ex-ante approach based
on energy audits, and an ex-post approach based on monitoring reports
or energy assessments.

Additionality will be established by the higher required heat and technical

properties of the building envelope than those provided for by legislation.
A requirement relating to ‘best available techniques’ will be established
for the technical facilities of buildings.

The energy savings attained in the OPPGP will be evaluated through an

independent evaluation of each of the projects implemented. The
evaluation of each project states the energy saving reported by the
energy carrier. This energy saving is clearly quantified in terms of the
structure of its composition, service life, and technology used. The
additionalities of each project in the OPPGP will be thereby checked
clearly and separately, and the overall additionality will be maintained for
the OPPGP programme as a whole.

81
 Measure number 1.12

TITLE OF THE Promotion of energy efficiency under the

MEASURE Operational Programme Enterprise and Innovation –
Eco-energy

Sector Industry, services

Brief summary Investment aid to increase energy efficiency in industry

Description of the In the 2007–2013 period, investment support was available under priority
measure axis 3 Efficient Energy OPEI 2007-2013 (Eco-Energy). The managing
authority of the programme, financed from the ERDF, is the MIT.

Supported measures included activities to enhance efficiency in

production, transmission, and consumption of energy:

 upgrade existing facilities for energy generation for own use,

resulting in greater efficiency of the facilities
 introduce and upgrade measurement and control systems
 upgrade, renovate, and reduce losses in electricity and heat lines
 improve technical and thermal properties of buildings, except
single-family houses and apartment buildings
 utilise waste energy in industrial processes of a company’s own
consumption
 improve energy performance by introducing high-efficiency
combined generation of electricity and heat2
 improve energy performance of manufacturing and technological
processes

Regional application This measure can be applied throughout the Czech Republic, except the
City of Prague

Target group Business entities owning energy management systems or buildings

Effectiveness This measure is highly effective, because investments are channelled into
increasing energy efficiency

Service life This measure has a service life of 10 or more years.

82
2 rd
Extended as of the 3 call, only in the event of the maximum possible utilisation of the electricity and heat
generated for the company’s own consumption, with a view to the operating conditions of the plant
Monitoring, A basic project description is provided when the registration application is
verification, submitted. This description is merely a brief outline of the investment
methodology for plan and is assessed in terms of compliance with the activities supported.
establishing energy
savings and In the registration application approval procedure, the assessment
additionality focuses particularly on the applicant, in terms of the financial and non-
financial health of the undertaking (applicant).

Upon approval of the registration application, applicants are required to

submit a full application, which must contain a more detailed description
of the project, with a list of specific saving measures that must be
presented in the recommended version of the energy audit, or clarified in
a feasibility study. These documents are mandatory attachments to the
full application. The full application must also include the value of the
binding indicator ‘Annual energy savings in GJ/year’, which must be
consistent with the projected energy savings in the energy audit
registration sheet.

In the approval procedure for a full application, a project manager from

the mediating agency CzechInvest initially assesses compliance with the
activities supported under the programme call, and then forwards it to an
external evaluator for assessment. This evaluator calculates a score based
on the pre-published selection criteria. These criteria reflect cost-
effectiveness, the benefit to the improved environment, and the
investment return of the whole project. If the project score is more than
50 points, according to the selection criteria, it is forwarded for the
production of two technical-economic opinions (or three opinions in the
case of discrepancies), which assess the project in terms of its economic
returns and correct use of technology, etc.

The project is then passed to an evaluation committee composed of the

representatives of specialist sections, higher-education institutions,
energy associations, etc. The evaluation committee, with reference to all
of the opinions submitted and the presentation of the project by the
CzechInvest project manager, decides whether to recommend it for
approval. Finally, the implementation department accepts or rejects that
recommendation and decides whether to approve the project for
support.

Savings are reported within the scope of project monitoring upon project
completion. This means that applicants must report the value presented
in the energy audit registration sheet, and, by extension, in the full
application, in the form of monitoring reports for 12 consecutive months
following the date of project completion specified in the full application.
The reporting period is two years, and in at least one of them the value
specified must be reached or exceeded. Within the scope of extensive
projects, applicants also submit an energy audit addendum; however, this
is not mandatory.

83 of costs, an essential condition is that the costs

Concerning the eligibility
are eligible after approval of the registration application and, naturally,
they must be consistent with the full application, the assessment, and the
energy audit. They must also be directly related to the project and have a
positive impact on energy savings.

To calculate the energy savings, the implementing public authority uses

the method of forecast and measured savings. Two generic approaches
are used – an ex-ante approach based on energy audits, and an ex-post
approach based on monitoring reports or energy assessments.

The energy savings attained in the OPEI will be evaluated through an

independent evaluation of each of the projects implemented. The
evaluation of each project states the energy saving reported by the
energy carrier. This energy saving is clearly quantified in terms of the
structure of its composition, service life, and technology used. The
additionalities of each project in the OPEI will be thereby checked clearly
and separately, and the overall additionality will be maintained for the
OPEI programme as a whole

Projects where the return is too quick and where the measures do not
support a particularly long return are not supported. The implementation
of such measures is accelerated by this alternative scheme policy
measure.
The text of the call for projects under the Operational Programme
Enterprise and Innovation ECO-ENERGY, which includes the evaluation
criteria, is available for download at the link below:
http://www.mpo.cz/dokument104996.html

84
 Measure number 1.13

TITLE OF THE Operational Programme Enterprise and Innovation

MEASURE for Competitiveness

Sector Industry, services

Brief summary Investment aid to increase energy efficiency in industry

Description of the In the 2014 - 2020 period, investment support or support in the form of a
measure financial instrument under the OPEIC 2014-2020 will be available under
priority axis 3, Efficient Energy, specific objective 3.2 Improve energy
efficiency in the enterprise sector. The managing authority of the
programme, which is financed from the ERDF, is the MIT. The allocation
for this specific objective is CZK 20 bn.

The interventions supported under specific objective 3.2, Improve energy

efficiency in the enterprise sector, include:

 modernise and reconstruct electricity, gas, and heat distribution

systems in buildings and in the energy management of
production plants, in order to improve efficiency;
 introduce and upgrade measurement and control systems;3
 modernise or renovate existing energy production facilities for
internal purposes, which will increase their efficiency;
 upgrade lighting systems in buildings and industrial facilities (only
the replacement of obsolete technologies with new, high-
efficiency lighting systems, e.g., light diodes (LED);
 implement measures to improve the energy performance of
buildings in the business sector (building envelope insulation, the
replacement and renovation of windows and doors, other
structural measures having a demonstrable influence on the
energy performance of buildings, the installation of ventilation
technology with waste heat recovery);
 re-use waste energy in production processes;
 improve energy performance and energy efficiency in production
and technological processes;
 install renewable energy sources for an undertaking’s own
consumption (biomass, solar system, thermal pumps, and photo-
voltaic systems;4
 install a cogeneration unit with maximum use of electricity and

3
The measure Hardware and networks, including the relevant software related to the introduction of an
energy management system, according to ČSN EN ISO 50001, is an eligible measure.
4 85
The maximum potential installed capacity of a photo-voltaic system is 30 kWp; the system must be placed on
the roof or a perimeter wall of one of the buildings that is connected to the ground by a solid foundation, and
which is registered in the Land Register.
 thermal energy for the undertaking’s internal consumption, with
a view to its operating conditions5 (measures for the production
of cooling in tri-generation also constitute eligible measures);
 support extra costs in achieving the standard of a nearly zero-
energy building and a passive energy standard in the
reconstruction or construction of new business buildings. Extra
costs will be derived from model examples and, for the purposes
of support, will be set as a fixed amount for a clearly measurable
quantity (e.g., per square metre of energy-related area).

The output of all these measures should constitute a fundamental

contribution to compliance with Directive 2012/27/EU on energy
efficiency, which is also the outcome of this specific objective.
Below is a link to the programme document:
http://www.mpo.cz/dokument157679.html
Given that the OP EIC 2014 to 2020 Programme was only approved by the
European Commission in late April 2015, there was a delay of
approximately one year in the announcement of the planned calls. The
1st ongoing call for specific objective 3.2 (ENERGY SAVINGS Programme)
was announced on 1 June 2015, with an aggregate allocation of
approximately CZK 5 bn. Full applications will be accepted until 30 April
2016.
The specific conditions of the ENERGY SAVINGS Programme, chapter 9.3
of the call, which an enterprise must fulfil, have been set with a view to
the requirements stated by the European Commission in the Programme
document, and with a view to the Energy Efficiency Directive, in terms of
the eligibility of energy savings.
Below is a link to the 1st call in the Energy Savings Programme, including
appendices:
http://www.mpo.cz/dokument158278.html

Regional application An improvement in the energy performance of the business sector, and
the broader application of energy services in all regions of the Czech
Republic, except the City of Prague.

Target group Business entities (small, medium-sized and, where appropriate, large
enterprises); for intervention in the field of energy savings (the insulation
of production and business structures), also agricultural holdings, food
businesses, and retail organisations.

Projects targeted at The main objective is to support the competitiveness of business entities
end users
and sustainability of the Czech economy through reduced energy
intensity of the entrepreneurial sector. The measures referred to above
will be implemented separately or as a set of several measures
(comprehensive projects), based on the recommendation of the energy

86
5
Maximum annual generation of electricity and heat from high-efficiency CGEH should correspond to the
annual electricity and heat consumption of the enterprise.
 assessment. Eligible costs only include investment costs on those
measures that will result in energy savings (construction costs, acquisition
of technology, procurement of design documentation and an energy
assessment, etc.). The determination of eligible expenses (hereinafter
referred to as EE) is in line with Articles 386 and 49 of Commission
Regulation (EU) No 651/2014 of 17 June 2014.

The level of financing ranges from 30% to 40% and 50% of eligible costs,
depending on whether the enterprise is large, medium-sized, or small.

The minimum subsidy amount is CZK 500,000; the maximum subsidy

amount is CZK 250 mil. based on the wording of the 1st call.

Effectiveness This measure is highly effective, because investments are channelled,

particularly into increasing energy efficiency.

Service life This measure has a service life of 10 or more years.

Monitoring, The Operational Programme Enterprise and Innovation for

verification, Competitiveness will follow up on the Operational Programme Enterprise
methodology for and Innovation 2007–2013. Introduction of financial engineering tools is
establishing energy expected under the programme.
savings and
additionality According to the wording of the 1st call, a mandatory enclosure to a full
application is an energy assessment, which will be required, in line with
applicable legislation, effective from 1 July 2015, for the assessment of
the feasibility of the subsidy, pursuant to Section 9a (1) (e) of Act No
406/2000, on energy management (hereinafter referred to as the “Act”),
as amended, which the provider of support set differently, with a view to
the requirement of this support programme. The energy assessment will
show the savings based on which the project will be assessed, among
other things, using the method of selective criteria. The savings are
specified in the conditions for the provision of the subsidy, signed
between the applicant and the subsidy administrator, the MIT.

The energy savings attained in the OPEIC will be evaluated through an

independent evaluation of each of the projects implemented. The
evaluation of each project states the energy saving reported by the
energy carrier. This energy saving is clearly quantified in terms of the
structure of its composition, service life, and technology used. The
additionalities of each project in the OPEIC will be thereby checked clearly
and separately, and the overall additionality will be maintained for the

6
If there is an obligation imposed by the EU to implement mandatory standards whose validity is known at the time of
the submission of a full application, the comparative option will need to be applied for the determination of eligible
87
expenses. In the comparative option, investment costs required for the achievement of these mandatory EU standards
are deducted from the total investment costs of the project presented in the full application. This difference constitutes
the eligible expense. If there is no applicable EU regulation requiring compliance with standards at the time of the
submission of a full application, the comparative option need not be used.
OPEIC programme as a whole.

Energy savings attained in the OPEIC programme will be reported using

the ex-ante method. The beneficiary undertakes in the agreement to
implement energy savings in line with the design approved. Additional
ex-post verification will take place once in every five years, based on an
ex-post energy assessment.

88
Measure number 1.14

TITLE OF THE Support for construction in the Czech Republic in

MEASURE terms of increasing EE and environmental protection
in line with the EU 2020 Strategy for Smart,
Sustainable and Inclusive Growth

Sector Households, industry, services

Brief summary Support for building development that binds private entities to voluntarily
partake in the improvement of energy efficiency and environmental
protection, in line with the EU 2020 environmental strategy, in terms of
building construction, technologies, and technical facilities of buildings,
including their systematic use.

Description of the In private construction, to enable the preference of energy efficient

measure building measures and an increase of support thereof by financial services
providers financing private housing development. Primarily, these may
include measures such as the provision of better loan conditions to
projects increasing energy efficiency (may be combined with EPC),
support for the procurement of an energy assessment, and commitment
by building companies and developers to use more energy-efficient
technologies and materials in construction.

Regional application This measure can be applied throughout the Czech Republic.

Target group 1) Participants in development support:

- building development (administrative buildings, shopping centres,
apartment buildings)
- housing cooperatives
- condominiums
- industrial enterprises
- new development of production facilities in industrial zones
2) Providers of financial services to parties involved in building
development:
- banks
- mortgage centres
- investment funds
3) State administration and self governance
4) Producers of building materials and enterprises involved in the
construction business.
89
Projects targeted at - the provision of advantageous loan conditions for projects
end users increasing energy efficiency (may be combined with EPC)
 - support for the procurement of an energy assessment
- commitment of construction companies and developers to use
more energy efficient technologies and materials in construction

Effectiveness Support for building development in the Czech Republic in terms of

increasing EE and in environmental protection, in line with the EU 2020
environmental strategy, is a [measure] effective outside the entire private
building sphere in the Czech Republic, and is clearly targeting conscious
and maximum improvements in energy efficiency in building
development in the Czech Republic, across all spectra of participants,
such as to clearly allow for the utilisation of the measure by the
enterprise sphere in the construction business.

Basis of calculation  direct data from entities involved in the Code of Building
Development to increase EE (energy assessment and audit,
building energy performance certificate, statistical data and
measurement)
 annual reports: CSO
 number of loans provided in accordance with the Code
 Association of Czech and Moravian Housing Cooperatives
 Association of Enterprises in the Construction Business
 Czech Confederation of Industry
 Population and Housing Census of the CSO
 legislation and building standards

Service life This measure has a service life of 15 or more years.

Monitoring of the The benefits of the measure will be monitored by using energy
benefits of the assessments, building energy performance certificates, and statistical
measure data in combination with relative savings, in which technical and
engineering estimates will be applied based on the number of buildings
reconstructed.

In the 2016-2017 period, the entities involved in the construction sphere

in the Czech Republic will ratify the document Support for development
in the Czech Republic in the sphere of EE improvements and
environmental protection, in line with the EU 2020 environmental
strategy. Based on the final wording of the support, and in connection
with the final conditions, the prediction of the potential energy savings
will be specified, as well as the method for their reporting. Based on the
final wording of the support, this chapter will be updated in the next
version of the NAPEE, with the addition of specific performances,
calculation methodology, and method for the reporting of energy savings.

90
Measure number 1.15

TITLE OF THE Additional alternative measures in the industrial and

MEASURE service sector and in the public sector – MIT is the
sponsor of the agreement

Sector Industry, public sector, services

Brief summary Support for the implementation of additional alternative measures

resulting in increased energy efficiency in industry and services and in the
public sector.

Description of the Additional alternative measures could focus on the reduction of energy
measure consumption and of the emissions related thereto, or on increasing
energy efficiency.

The main advantage of additional alternative measures could be that they

promote an active approach by industry towards better energy efficiency
or towards addressing environmental protection issues.

In energy-saving measures in the industrial sector, the state, on the one

hand, imposes an obligation on industry to increase energy efficiency,
and, on the other hand, industry proposes an alternative way of meeting
that obligation which could be more advantageous for it.

Similar motivating measures could be implemented in the public sector,

as well (regions, municipalities), and should primarily focus on supporting
soft measures (training, information campaigns for self-governing unit
employees, education of the population in the sphere of energy efficiency
and savings) and hard measures (introduction of support for the
introduction of the ISO 50001 standard, introduction of energy
management, EPC).

To motivate undertakings to change their behaviour, energy efficiency

will be incorporated into natural incentives:
• Economic benefits for undertakings (a cut in energy costs, lower
charges for discharging pollutants)
• Soft measures directly supporting energy efficiency in an
industrial enterprise (education, assessments, audits, consulting,
building design)
• Replacement of regulation with voluntary commitments

In terms of self-governing units, the greatest motivation is saving money

from their budgets and an effort to improve the quality of the public
service provided by them, 91 by means of an upgrade and increased energy
efficiency of their partially funded and subordinated organisations:
schools, social facilities, healthcare facilities, transport companies, etc. To
 that end, measures based on the following support may be implemented:
 support for the introduction of the ISO 50001 standard
 introduction of energy management
 introduction of building information modelling (BIM)
 support for EPC
 educating the population in energy efficiency and savings
 municipalities join the Pact of Mayors for Climate and Energy,
and an Action Plan for Sustainable Energy is drawn up
Several options for practical implementation open up in the framework of
additional alternative measures, which differ in terms of scope and
method of application.

Regional application This measure can be applied throughout the Czech Republic.

Target group Owners of industrial plants, industrial associations, the Czech

Confederation of Industry, Czech Association of Entrepreneurs in the
Construction Industry.

Self-governing authorities of the Czech Republic and their organisational

units.

Effectiveness This measure could be highly effective, because investments would be

channelled into improving energy efficiency.

Service life This measure has a service life of 10 or more years.

Monitoring of the The benefits of the measure will be monitored individually for each
benefits of the industrial enterprise and self-governing unit. The entire programme will
measure be monitored and the benefits of the measure regularly published from
2017.

92
Measure number 1.16

TITLE OF THE Summary of measures to increase the energy

MEASURE efficiency of agricultural plants

Sector Agriculture

Brief summary Reduction in energy intensity in agricultural production.

Description of the This measure includes a combination of a legislative instrument and

measure subsidy resources in agricultural production.

Regional application This measure can be implemented throughout the Czech Republic.

Target group Agricultural and forestry undertakings

Effectiveness Part of the measure will result in direct energy savings; the use of
renewable energy sources does not, on its own, reduce energy
consumption, it only squeezes out non-renewable sources.

Basis of calculation The basis of calculation is the total consumption of fuels and energy in
agriculture in accordance with the methodology of the Czech Statistical
Office (CSO).

The estimated annual savings achieved due to a combination of legislative

measures and the influence of subsidy funds in agricultural production.
These savings range from 0.35% to 0.8% annually, between 2008 and
2016. The lower rate of savings in the first AP can be attributed in part to
the financial situation at agricultural holdings and a lack of investment in
energy savings, the replacement of technology, or use of RES. In terms of
total consumption, we forecast savings of 4.78% as at 2018.

Service life This measure has a service life that is generally 15 or more years.

Monitoring of the Considering the comprehensive nature of the measure, its benefits can
benefits of the only be monitored indirectly by reference to statistical data.
measure

93
Measure number 1.17

TITLE OF THE Support for the dissemination of information and

MEASURE the promotion of energy savings by the state – MIT
EFEKT

Sector Cross-cutting measure

Brief summary Support of information for professionals and the general public, regarding
the possibilities of energy savings

Description of the The aim of the measure is to increase energy savings by providing
measure information to professionals and the general public in all sectors, about
the economic management of energy and the possibilities for realising
energy savings, for example, by means of the introduction of energy
management and EPC, holding of conferences and seminars, and
publication of awareness-raising publications.

Regional application This measure can be implemented throughout the Czech Republic.

Target group Professionals and the general public from all sectors

Effectiveness The measure is clearly effective, because it helps to increase energy

savings while reducing energy intensity, involving the expenditure of
relatively low costs.

Service life The service life of information dissemination can be difficult to estimate –
it encompasses projects with a longer life, such as the purchasing of more
efficient appliances and the implementation of certain physical measures,
but also fleeting effects, such as a change in the behaviour of energy
consumers.

Monitoring of the Benefits can be monitored indirectly, based on the resources spent on
benefits of the disseminating information about the possibilities of energy savings within
measure the EFEKT programme.

94
Measure number 1.18

TITLE OF THE RESEARCH AND DEVELOPMENT AS SUPPORT IN

MEASURE INCREASING EE IN LINE WITH THE EU 2020 STRATEGY
FOR SMART, SUSTAINABLE AND INCLUSIVE GROWTH

Sector Cross-cutting measure

Brief summary Support for scientific research and innovations in the sphere of energy
savings

Description of the The aim of the measure is to increase energy savings through research
measure and the application of new technologies, in the sphere of energy savings,
through scientific workplaces, higher-education institutions, and clusters
(private enterprises in professional cooperation with scientific and higher-
educational institutions). This support includes the development of high
energy-performance construction materials and methods for the use of
materials.

Regional application This measure can be applied throughout the Czech Republic.

Target group Specialised scientists in potential cooperation with private enterprises

from all sectors (including the producers of construction materials and
construction businesses).

Effectiveness The measure is effective in terms of the long-term need to keep

developing new and improved technologies that increase energy
performance and to develop the space necessary for the application of
these technologies, as an element of a stable and sustainable
environmental policy of the Czech Republic and of the EU.

Service life The service life of research, its application, and dissemination of
information through conferences, seminars, and specialised publications
are hard to estimate – it includes both projects with a longer life, such as
the results of research and their practical application, as well as effects
that will probably be more short-lived, such as conferences, seminars,
etc.

Monitoring of the Benefits can be monitored indirectly, based on the funds expended on
benefits of the research, its application in practice, and on the dissemination of
measure information about the possibilities of energy savings in scientific research
95 seminars, specialised literature, and
(conferences, specialised
publications).