The Hidden Financial Benefits of Energy Efficiency

Research has shown that the implementation of EE measures, in addition to the already known decrease in spending, brings other, lesser-known, financial benefits

 

Although many people are aware that the implementation of energy efficiency (EE) measures contributes to reducing energy consumption and thus results in decreased bills, most are unaware that this is just one way of measuring the economic impact of implementing these measures. A strategic approach to energy management can have a significant impact on the value of a property. Through a specific example of the implementation of EE measures under the Energy Efficiency Project for BiH (BEEP), implemented by the FBiH Ministry of Physical Planning, we present to you several hidden benefits, which in turn shows the accompanying benefits of implementing these measures.

 

 

Extending the life span of a building

 

The implementation of EE measures, such as thermal insulation or the installation of new openings or heating systems, extends the life span of a building by about 20 years. The length of its extended life varies with the type of material used and the quality of its construction. However, given that the construction life of a new building is around 50 years, it can be concluded that the implementation of these measures brings significant benefits.

 

In practice, this is also evident through the example of 9 healthcare facilities included in the BEEP Project, which were mostly built during the 1960s and 1970s. Six of the renovated buildings are over 50 years old, which means that without extending their life by implementing EE measures, their lifespan would expire.

 

The total improvement of the value of these facilities is around 37.5 million BAM, and given that the total amount invested in the renovations of these buildings equaled 5.5 million BAM, it is evident that the benefits are several times higher than the amount invested.

 

 

Improving Security and Reducing Risk

 

The indirect impacts of implementing EE measures are reflected in improved safety (fire protection, lightning protection, etc.), better internal conditions (air quality, temperature, and airflow), better appearance, and reduced risk of adverse events. For example, the renovation of the lighting system also improves fire protection, the use of LED lighting reduces the risk of fire and energy consumption for cooling. In addition to reducing the risk, the comfort and visual appearance of the buildings are also improved.

 

In this context, it is important to implement EE measures in public buildings, especially in healthcare facilities, which are used, in whole or in part, 24 hours, 365 days a year and where users are particularly sensitive to comfort and safety conditions.

 

 

Reduction of Operational and Maintenance Costs of the Building

 

Insights into energy data, which represent the functioning of all the equipment in a building, provides a more efficient approach to maintaining the building itself. For example, the implementation of EE measures in the aforementioned 9 healthcare facilities renovated under the BEEP Project resulted in savings of approximately 6.1 million BAM on maintenance costs alone.

 

 

Increase in the Value of Real Estate when Buying or Renting

 

Investing in energy efficiency increases the value of residential buildings by 3-8%, while rental prices, by comparison with similar real estate, increases by 3-5%. Research shows that, in the case of commercial buildings, this increase in value can be even greater, reaching as much as 10% -20%. At the same time, the implementation of EE measures has a positive effect on the rental prices of office buildings, which have increased by 2-5%.

 

Ultimately, we conclude that implementing EE measures leads to financial benefits, which result in greater savings than the cost of the work itself. Such spending cuts are significant for both household and public budgets.

Is BiH fulfilling its energy efficiency responsibilities?

BiH has agreed to implement European directives in the field of energy efficiency.

 

With the ratification of the Energy Community Treaty in 2006, Bosnia and Herzegovina has committed itself to regulate the fields of energy production, transport, distribution, and energy use according to European Union standards. In other words, it agreed to implement European directives related to this area and reduce energy consumption, along with creating action plans to achieve targeted savings.

 

One directive requires the public sector to take a leading role in implementing energy efficiency standards in buildings. Guided by this commitment, the Federal Ministry of Physical Planning, in addition to World Bank loans, launched the Energy Efficiency Project for BiH (BEEP), under which energy efficiency measures are implemented at public facilities in the Federation of BiH. The focus of this project is primarily on buildings of high social importance, such as educational facilities and health institutions, but includes other public buildings as well.

 

Within this project, about 18.5 million KM was invested in the reconstruction of 37 facilities, which resulted in savings of about 2.5 million KM annually, along with CO2 emission reductions by about 5,250 tons per year.

 

Thus, in addition to the economic benefits, the implementation of this project has also resulted in a contribution to meeting set goals for BiH energy efficiency. Particularly significant is the contribution to meet the sectoral target for public services, which is 2.87%. At the same time, the project also contributed to the reduction of total energy consumption in BiH by 0.39%.

 

At the same time, the contribution is noticeable in the so-called horizontal measures from the FBiH Energy Efficiency Action Plan. Thus, through the activities of the BEEP project, information on energy efficiency was received by over 200,000 people, and the results of social monitoring and evaluation showed a significant increase in social awareness on this topic. Increases in the energy efficiency index of citizens and users of public buildings and user satisfaction (heating, ventilation, lighting, acoustics and general indoor comfort) have been reported.

 

Therefore, we conclude that the strategic implementation of energy efficiency measures contributes significantly to our country. In addition to the economic, social and environmental benefits, the implementation of the BEEP project also contributed to the fulfillment of the goals set out in the Action Plan, the commitment to which BiH was bound to by the Energy Community Treaty.

 

Of course, to create a more accurate assessment of the fulfilled goals for reducing energy consumption, it is necessary to monitor energy consumption and achieve thermal comfort in the coming years, along with including the results of all realized works and renovations of public buildings.

How to Save on your Electricity Bills this Summer

With summer comes high energy bills, therefore we bring to you simple yet effective tips that will help you save money

 

Longer days, sunny weather, hangouts, holidays, beach, sun, sea… All of the aforementioned reasons are why we love summer and why we look forward to it year-round. Now that it has finally arrived, it brought with it the inevitable need for cooling down, which we mainly notice through increased costs. This is why we bring you 5 simple yet effective tips that will help you fight off high energy bills this summer.

 

  1. Get Grilling!

Cooking during hot summer days can be unbearable. Household appliances, such as fridges or stoves, generate additional heat and can increase room temperatures by as much as 10 degrees celsius. However, you can easily reduce the temperature of your kitchen, but also electricity costs by using a microwave oven or by grilling. Using a microwave will significantly reduce energy consumption while producing less heat and grilling will also allow you to enjoy the summer days with pleasant company.

 

  1. Use Cold or Lukewarm Water for Washing

Avoid using hot water whenever possible. 90% of energy used by washing machines is needed to heat water, therefore washing with cold water will result in significant savings. At the same time, since water consumption in the summer usually increases due to the care of garden plants, one way of retaining the same level of consumption is through watering flowers or grass early in the morning or evening, which reduces the evaporation of water in the summer heat.

 

  1. Take Advantage of the Warm Weather

With summer weather comes numerous benefits and it’s up to us to use them to reduce energy consumption and electricity bills. Therefore, air-dry clothes instead of using the dryer. The same principle applies to dishes; use cold water and wait for them to air dry, instead of using your dishwasher’s drying cycle. By using sunlight you can also reduce the amount of electricity you consume and by ventilating rooms in the evening you can cool your living space without using air conditioners.

 

  1. Pay Attention to Electronic Devices

Do not place devices that generate heat, such as lamps or televisions, near thermostats. By creating additional heat, these devices can “deceive” the thermostat and show higher room temperatures and thus become the reason for increased air conditioning use which will result in higher energy consumption. At the same time, these devices need to be switched off if they are not being used to avoid generating unnecessary additional heat. Also, it is important to note that all devices in standby still consume electricity, which can amount to up to 10% of average annual consumption, therefore their exclusion is of utmost importance.

 

  1. Use LED Lighting

Curtains or shutters will block out the sun and thus reduce room temperatures. At the same time, it will result in the need for more artificial light so be wary of which light bulbs you’re using. For example, 90% of the energy created by incandescent lightbulbs are converted into heat. On the other hand, LED bulbs use 75% less energy and last up to 50 times longer than traditional ones, thus resulting in savings on your electricity bills.

5 Tips to Keep Rooms Cool Without Additional Costs

How to keep cool without increasing electricity consumption?

 

With the arrival of summer and high temperatures, keeping rooms cool can become quite challenging. Synonymous for cool rooms is usually air conditioning, but with that comes huge indents in our electricity bills. Taking into consideration that summer is the season that brings additional vacation costs, every saving is worthwhile. Therefore, we spoke to Jasmin Mangafić, head of the Energy Efficiency Project for BiH (BEEP), which is implemented by the Federal Ministry of Physical Planning to bring you some useful tips to keep you energy-efficiently cool this summer.

 

  1. Close your Blinds

Blinds and curtains will block out solar heat, keeping your room several degrees cooler. Close your blinds in the morning before leaving for work and leave them closed until the evening when temperatures fall. Then, make sure to properly ventilate your home, because for complete comfort, in addition to temperature, air quality is important.

 

  1. Instead of Air Conditioning, why not try a Ceiling Fan?

Experts in energy efficiency recommend using a ceiling fan as they use considerably less electricity compared to air conditioners.

 

Not only do they lower the room temperature, they also distribute and circulate air making it is easier to maintain optimum temperatures. Ceiling fans simulate wind keeping you cool so be sure to turn them off when you are not in the room, saving additional money on your electricity bill.

Apart from not consuming a large amount of energy, ceiling fans have several other advantages: installation and maintenance are simple, they are portable and flexible, and prices are affordable.

 

  1. Set Your Thermostat

If you opt for air conditioning, be sure to adjust it to the correct temperature. The ideal temperature is different for each room. The recommended temperature for the corridor is between 14 to 17 degrees celsius, the bedroom is 17 degrees, the kitchen and office from 17 to 21 degrees, and the living room from 20 to 23 degrees.

 

Also, using a smart thermostat will enable you to continuously control the heat of rooms as it automatically switches off when it reaches the desired temperature, thereby preventing unnecessary energy consumption.

 

  1. Reduce your use of Household Appliances

During hot summer days, avoid using household appliances, such as the dryer, washing machine or dishwasher, at least during the day. Also, avoid using the oven, and replace it by cooking on an electric stove or using a microwave. With the conviction that all these activities generate additional heat accumulated in your home, using them less frequently will result in cooler rooms and less consumed electricity.

 

  1. Prevent Hot Air from Entering

Preventing hot air from entering or reducing the amount of air that uncontrollably penetrates into your home is an effective way of reducing cooling costs during summer. Proper insulation combined with newer and better quality carpentry will significantly help keep your living space fresher. If your budget does not allow you to change the carpentry of your home, sealing windows is another way to increase their efficiency.

Top 5 Most Environmentally Friendly Cities

Being environmentally conscious is a topic that gains more and more attention on a daily basis.

 

Being environmentally conscious is a topic that gains more and more attention on a daily basis. The main reason behind this is the fact that planet Earth is more polluted today than it ever was before. Additionally, the rate of contamination is growing at a worrying rate.

 

By reducing carbon emissions, which is crucial in solving this problem, several cities stand out on their path to becoming “green” cities. Therefore, we present five ecological international cities that according to the Index of Sustainable Cities, set a great example.

 

  1. Stockholm, Sweden

The city of Stockholm is strategically committed to reducing their carbon footprint and improving air quality, which coincidentally are the same reasons why they find themselves on top of this list.

 

One-third of the city consists of green areas, which includes 12 large parks and the city’s government also supports residents in the process of creating new green areas. Stockholm is also known for recycling waste, from which they create biogas, and has gone on to become the first city to win the title of the European Green Capital, having reduced its emissions of harmful gases by 25% since 1990.

 

  1. Frankfurt, Germany

Frankfurt demonstrates its commitment to improving energy performance by developing an energy efficient production process. This city implements the policy of “Green Public Procurement”, which is particularly significant in the construction sector. Since 1999, the use of tropical wood and PVC in construction processes have been banned, and strategic guidelines for efficient construction have been created.

 

The amount of waste has been decreasing for years, and the city has also invested in modern equipment for sorting, processing, and recycling, which is located in the city center, reducing the need for transport.

 

  1. Zurich, Switzerland

One of the main reasons why Zurich finds itself on this list is its commitment to protecting the environment through investments in sustainable energy sources and energy efficiency. The best example of this is the fact that Zurich aims to reduce energy consumption to just 2,000 watts per person. At the same time, it is interesting to note that the Swiss are the champions of recycling. 94% of old glass and 81% of plastic waste are disposed of for recycling.

The public transport system of this city also makes it an extremely sustainable and functional model, which makes Zurich an exceptionally positive example of a “green city”.

 

  1. Vienna, Austria

In addition to a large number of green areas decorating the city, Vienna simultaneously offers numerous opportunities for using environmentally friendly means of transport, such as city bikes or Segways. Their highly developed bicycle infrastructure makes use of bicycles in this city very easy. Another alternative is their “eco taxi”, which uses hybrid or natural gas as fuel.

 

Vienna is also a paradise for lovers of eco-clothing. Several dozen stores of different styles, offer products that are in accordance with bio-quality, recycled or vegan-style standards, and are also created under fair working conditions.

 

  1. Copenhagen, Denmark

Citizens of Copenhagen mainly use bikes as their main means of transportation, regardless of weather conditions. The people of this Scandinavian capital ride their bikes so much, they actually outnumber the number of cars. This is just one of the initiatives that make the capital of Denmark sustainable and environmentally friendly. At the same time, the city aims to become the first carbon-neutral city in the world by 2025.

 

Some of the initiatives that represent a positive and green example are the architecture and infrastructure of Copenhagen. This includes the creation of “green roofs” and new green surfaces, the replacement of diesel-run public transport, with buses that run on electric power, ensuring (and retaining) the quality of their drinking water, continuous afforestation, and the like.

Representatives of the World Bank Satisfied with the Implementation of the BEEP Project

Visits to renovated buildings in several cities in the FBiH region are underway

 

Within the works completed in July of last year, more than one million Convertible Marks were invested in the implementation of energy efficient measures at Silvija Strahimir Kranjčević Elementary School in Mostar.

 

As a matter of fact, this very educational institution was one of those visited by a delegation of the World Bank this week, led by Regional Director for Strategy and Operations for Europe and Central Asia, Mariam Sherman.

 

Within a several-day visit, the delegation, together with Project and Cantonal representatives and authorities, visited facilities in several cities of the Federation of Bosnia and Herzegovina, where works were carried out within the BEEP Project.

 

On this occasion, they thoroughly analyzed the measures implemented so far, listened to personal experiences, and ultimately expressed their satisfaction with the results achieved.

 

Through the activities of the Energy Efficiency Project in BiH (BEEP),  just at Silvija Strahimir Kranjčević Elementary School several energy efficient measures have been implemented. This includes thermal insulation of the façade and roof, replacement of a part of the existing exterior joinery with new PVC carpentry, installation of a new biomass boiler, and the construction of a pellet warehouse. Ultimately, energy consumption was reduced, resulting in economic savings, but also reduced CO2 emissions.

 

For all 513 users of this institution, but also users of all the other facilities that were part of the Project, this means improvements in comfort, which is extremely significant taken into account the amount people who work and educate themselves in these institutions every day.

 

 

The World Bank Visits a Renovated Facility in Mostar

The delegation satisfied with the implementation of the Energy Efficiency Project for BiH (BEEP)

The World Bank delegation, led by the director of this international institution for the Western Balkans, Linda van Gelder, visited the Elementary School “Antun Branko Šimić” in Mostar today, an institution that was part of the Energy Efficiency Project for BiH (BEEP). Renovations on the building were finalized in April of this year, and through the energy efficient reconstruction of the building, a total of approximately 800,000 KM was invested.

 

The school underwent renovations for several energy efficient measures, such as thermal insulation of facades, roofs and attics, replacement of exterior joinery, and the installation of TRV and pellet storage facilities. Ultimately, these measures will result in energy savings of over 600,000 kWh per year, which will bring significant economic savings.

 

By implementing energy efficiency measures, better living and working conditions were created for 633 beneficiaries of this educational institution. Improving comfort is of utmost importance for younger generations, who shared their satisfaction over their now warmer and more comfortable classrooms by reciting songs about their new school to the World Bank delegation.

 

 

The World Bank’s implementation of the BEEP project once again proven successful

The World Bank delegation visited a renovated facility

Within the regular activities of the World Bank’s mission in Bosnia and Herzegovina, the delegation of this international financial institution, together with representatives of the Federal Ministry of Physical Planning, visited facilities that were undergoing construction and renovations.

 

During their tour, a visit was organized to the “Muhsin Rizvić” gymnasium in Kakanj, one of 15 educational institutions in the Federation of Bosnia and Herzegovina where construction has been under way since 2018.

 

This particular building in the last period has undergone several renovations including thermal insulation to the ceiling, replacement of the exterior openings, partial thermal insulation of the façade, and the construction of the final exterior facade layer.

 

On this occasion, measures implemented thus far were analyzed in detail, and the World Bank delegation expressed their satisfaction with the results achieved and discussed their future plans for the upcoming period.

 

Along with the “Muhsin Rizvić” gymnasium, within the framework of the Energy Efficiency Project for Bosnia and Herzegovina (BEEP), a total of 37 facilities have been renovated, 24 of which are educational institutions, 8 of which are health institutions and 5 of which are public facilities. In the implementation of energy-efficient measures, a total of more than 18 million KM has been invested, while savings are estimated at over 2 million KM per year and CO2 emissions are expected to be reduced by almost 5,000 tons per year.

 

In addition to financial savings, significant social benefits have also been achieved, such as warmer rooms, better lighting and better air quality. This contributes to reducing health problems and improving conditions for all users.

 

Opening ceremony for the renovated “Antun Branko Šimić” Elementary School in Mostar

Implementation of Energy Efficiency Measures Finalized on the School Building

The Elementary School “Antun Branko Šimić” in Mostar, recently underwent construction where joinery and locks were replaced, the heating system was improved, and thermal insulation of the exterior walls, ceiling and attic was added. All of these renovations represent energy efficiency measures which were implemented with the aim of achieving energy and economic savings, improving comfort, and reducing CO2 emissions.

Upon completion of the works and renovations on the school building, a ceremony was held that was attended by governmental representatives as well as pupils and teachers of the school.

Almost 900,000 KM was invested in the Elementary School “Antun Branko Šimić” in Mostar, and the estimated savings on energy costs amounts to almost 100,000 KM per year.

 

Renovations on this facility were implemented within the Energy Efficiency Project (BEEP), which, in addition to funds from the World Bank’s credit line, is being implemented by the Ministry of Physical Planning of the Federation of Bosnia and Herzegovina. Thus far, 37 public sector facilities have been renovated, 24 of which are educational institutions, 8 health institutions, and 5 public facility institutions. Through implementation of energy-efficient measures, a total of more than 18 million KM has been invested, while the savings are estimated at over 2 million KM annually. CO2 emissions have also been reduced by nearly 5,000 tons per year.

 

92 New Energy Managers in B&H

Workshops held in Sarajevo, Mostar and Zenica within the BEEP project

The Bosnia Energy Efficiency Project (BEEP), financed by the World Bank’s credit lines and implemented by the Federal Ministry of Physical Planning, aims to save energy, improve comfort in public buildings, reduce CO2 emissions, and increase energy efficiency awareness. In addition to the physical reconstruction work done within the public buildings, education also plays an important role in this project.

 

That is why a two-day education program for energy managers was organized in Sarajevo, Mostar and Zenica. These trainings were organized for members of public institutions, municipalities and cantons which were a part of the BEEP Project. The focus of the educational program was to stimulate the development of existing skills while developing new ones so participants can carry out energy managers’ tasks, and familiarize communities and cantons with activities in this area.

 

Overall, 92 candidates participated in the trainings. Upon completion of the training, the candidates were given a written test of knowledge, after which they were given certificates of attandence. They will work as energy managers in their energy-efficient workplaces throughout the Federation of Bosnia and Herzegovina.

 

The organization of such educational trainings is necessary to strengthen the existing capacities in the field of energy management and to promote energy savings achieved through the implementation of energy efficiency measures. Within this project, trainings like this one have been implemented since 2016, when the first BEEP project activities were launched.