Energy efficiency

Energy Efficiency

What is Energy Efficiency?

Below you will find some definitions of the concept of “Energy Efficiency “:

“Energy Efficiency” means the percent of energy output to energy input in the same energy system, which in our case is building. This is its theoretical definition
Simply stated that “Energy Efficiency” would be when using less energy in a process to achieve the same results. Excess energy in this case is the energy savings from measures to reduce the amount of the energy used in this process.

Benefits of Energy Efficiency Investments

Among the many arguments in favor of improving energy efficiency, one of the foremost is its key role in climate change mitigation. Indeed, improving energy efficiency is now seen as the most important strategy to achieve greenhouse gas (GHG) emission reductions that are necessary to stabilize the global climate system, because improving energy efficiency is particularly cost-effective and can be achieved rapidly.

Besides the need to mitigate climate change, there are numerous other strong arguments in favor of scaling up energy efficiency, especially the following ones:

Lower energy costs that will lead to lower energy bills for residential. Save energy and money for the life-cycle costs for consumers.
Increase comfort and quality of consumer’s life.
Increase the building usage life and the value of the building.
Contribution to environmental protection and reduction of polluting emissions into the environment
Improved supply security, e.g. by reducing (national, regional) dependency on energy imports
Improved competitiveness, resulting from lower energy costs and technology innovations
Improvement in all key indicators such as GDP, direct climate-related and induced investments, consumption and employment

Practical rules of efficient use of Energy

Energy efficiency, therefore, describes the ratio between the benefit gained and the energy used. From an economic point of view, energy efficiency can thus be described as the marginal productivity of energy input, i.e. it specifies how much energy input is needed to produce a certain level of output (e.g., heat, light, motion, and comfort).

Control heating/cooling: Try to reduce heating temperatures in the winter by one degree, as this can cut heating bill by 8 %. Conversely, in summer increase the set point for your air conditioning, as lower too much the temperature will enforce the air conditioning to consume more energy still not reaching to the desired cooling level.

Avoid wasting heat: Keep doors and windows closed when heating or air conditioning is running.
Utilizing the efficient cookers saves more than 30% of the amount of firewood needed.

Minimize artificial lighting: By keeping windows and skylights clean, you can cut the amount you spend on lighting. If you are working on one part of a room, isolate the lights to that area only. Lighting an empty room overnight can waste enough energy to make 1000 cups of tea.

Switch off the equipments: TVs, DVDs, and video machines left on “stand by” continue to use at least half of the amount of electricity they consume when they are turned on. Leaving a computer monitor on overnight wastes as much energy as making 800 A4 photocopies.

When the telephone charge is left connected to electricity power, even though the telephone is taken away, it consumes 95% of the energy used for charging the telephone, because the charger still consumes energy even though not connected to the charger.
If all the equipments are properly switched off when you leave the office, then enough energy is saved to run a small car up to 160 km.

Micro-oven consumes less than the normal oven (one third), and the food values are preserved as they are cooked faster and in a shorter time period.

Paint the walls of your home a light color: Dark colors tend to absorb light requiring you to use more energy from light bulbs to achieve the same effect.

Replace the standards bulbs with efficient bulbs: (consume around ¼ of the energy amount and have a life maturity 10 times longer). Using an efficient electric lamp saves energy up to 80%.

Set the boiler temperature level at 40-50 degree Celsius during summer and operate it as long as the water heating process is fulfilled: This will result up to 10%-15% savings in energy consumption.

Replace the normal boiler with solar panels: Using a solar panel with 3-4 sq.m surfaces installed on the terrace / roof of the building, for sanitary water heating, saves more than 60% of the energy used for this purpose.

Energy Efficiency measures/investment

Measure to increase the efficiency of energy in housing buildings:

1. Thermal insulation of building envelope

The existing stock of buildings in Albanian is not insulated and in most cases electricity is used for space heating. The main heat losses in buildings are those form heat transmissions from walls, roofs and terraces especially in the buildings constructed before 90’s.

Thermal insulation system is called “thermal insulation outside or inside the external structures of the building” and is serving to isolate and save the structure. It is composed of different materials and controls the heat flow.

The exterior insulation and its finish systems should be aesthetically, properly applied and integrated into construction, benefiting the structure by providing an insulating exterior finish without the worries about moisture penetration, cracks, and according to the schematic drawing shown below:

Exterior insulation
1. Anchor mechanism
2. Insulation 5 cm
3. Stucco
4. Glass fiber Mesh
5. Final colored stucco / (plaster): should be fine-treated, water repellent and creating a smooth surface

a) The advantages of thermal insulation

Thermal insulation has the following advantages:

Providing immediate and stronger energy savings as a result of the lower cost.
Reduction of fuel used for heating, which leads to minimize the emissions of CO2 and SO2 in the atmosphere.
The thermal insulation system constantly contributes to the solution of problems of environmental pollution and smog.

For all these effective characteristics the thermal insulation system finds application in various types of buildings: housing, school, hospital, business, military, manufacturing, storage, etc.

b) Walls

The walls lose 19-20% of heat used for heating the housings. The external walls of the new buildings are walls that keep their weight alone. Walls are usually built with bricks and silicate ceramic with holes. The following structures are the structures most commonly used in these buildings.

Left: Wall structures most commonly used;

Right: Wall structure with thermal insulation

Note:
If we compare the structures with and without thermal insulation we see that the thermal insulation structures have significant improvement in terms of heat transmission. Transmission Coefficient for the case with thermal insulation has value almost twice lower than that without thermal insulation. In this case the amount of heat lost from the walls was reduced by about 50%.

In old buildings is more useful the external thermal insulation. The internal insulation is recommended only in cultural buildings and the very old where due to the preservation of external architectural facades cannot be used external insulation.

c) Roof / ceiling

From the roof/ceiling of the building loses about 11% of the heat. Some typical structures with thermal insulation which are used more in new buildings.

d) Floor

The floor is the bottom layer of the building structures. Heat losses on the ground floor depend of the layer material, size and condition of the corners, adding here and the type of soil layer below. Insulation layer located below the floor or around the corner, reduce heat loss.

2. Efficient windows, doors

Windows are an element of the building’s external envelope that enables day lighting of the space. They function, in the same time, as a receptor permitting the sunlight to come in to the space, and as protection against external influences and heat losses. Adding window losses by transmission with losses by ventilation, total heat losses make up more than 50 % of the building’s heat losses..

Window with wood frame and one glass | Window with aluminum or plastic frame and two glasses

3. Use of solar panels

Water heating can count for 14 %-25 % of the energy consumed at home. In Albania part of electricity is used for water heating. The electricity bills can be reduced through the use of solar panels for water heating.

The using of solar panel with surface 2-4 m2 installed in the terrace/roof of the building for sanitary hot water saves energy used for this purpose more than 60%.

Did you know that our country has more than 240 sunny days and the use of solar panel for hot water sanitation covers 60-80% of energy needs?

This percentage depends on climatic conditions of the country. The largest number of sunny days and high solar radiation make to be the highest percentage of water is heated by the panel.

4. Central heating

The choice of appropriate heating, ventilation and air-conditioning (HVAC) system in buildings depends on needs and technical capacities of the specific location, and of course on what the investor requests and can afford. The market offers a number of energy efficient heating systems, with the 70% to 90 % useful operating efficiency.

In heating systems design it is important not to make the system capacity too large, in other words one should choose such a system whose output capacity (heat capacity) meets the actual needs of the building. In Albania the central heating realize with oil or LPG boiler. Regarding energy saving in heating systems these systems should have efficient boilers (with 80-90% efficiency), the thermal isolating pipes and control elements such as thermostat valves are located in the radiator.

Did you know that the installation of thermostatic radiator valves (TRV) enables up to 20 per cent energy savings?

5. Efficient lighting

Energy efficient lighting includes, in the first place, maximum use of daylight as it is the best form of lighting. Daylight enables the lighting of living space and working place as well as the contact of individuals with the environment. Artificial lighting replaces daylight and enables people to continue their activities in insufficiently lighted spaces and during the night.

The recommendation is to use compact fluorescent lights (CFL), widely known as saving bulbs, as much as possible instead of incandescent light bulbs. Their lifetime is up to 10 times longer (average lifetime of conventional light bulb is not more than 1000 hours, while saving bulbs ‘live’ as long as 10 000 hours and more).

The installation of efficient bulbs is an energy efficiency measure which saves 80% of the energy.

Energy efficiency of low-energy bulbs is 4 to 5 time higher than energy efficiency of conventional incandescent light bulbs. Than a 100 W incandescent bulb correspond to 20W fluorescent one.

6. Efficient electronic equipment

Energy efficient appliances use much less energy than standard ones and therefore, it is strongly recommended to always take into account the energy consumption of appliances; when you buy an appliance in your house it is economically justified to choose products of energy class A, A+, A++.

By research studies recently result that turns Stand-by of electronic equipment save electricity 5-10% of annual electricity consumption in housings.

7. Use of renewable energy

Use of renewable sources of energy in housing is seen as an effective measure for saving energy. Renewable resources used in our homes are: solar energy, biomass. Use of biomass in our homes is in the form of firewood used for heating and cooking.

An efficient measure we can take in this direction is using efficient stoves, which save the amount of firewood used for heating and cooking.

Use of efficient stoves saves more than 30% of the amount of firewood.

8. Protection elements from solar radiation

Solar heat gains have an important role in the frame of house energy balance. The modern architecture pays a great deal of attention to the solar reception and protection against excessive insulation (solar exposure), because passive solar heat gains can be regulated and optimized in a satisfactory system.

In order to achieve effective protection from too intensive light the following solutions are implemented:

Architectural geometry as orientation, color of façade, green plants, sheds, balconies, etc;
External elements of solar protection, the movable and immovable property as tents and shadings.

9. Control and good manage of energy

Systems used for heating and cooling of the housing have such control mechanisms that make the optimization of the temperature of the heating and cooling of the spaces. Regulation of thermostat which reduces the temperature of the room with 1oC saves energy used for heating annually by 70-10%.

Better control and management of energy saves it up to 10%.

Energy Efficiency Loan

Purpose – The “Energy Efficiency” loan finances investments in homes, buildings and business premises, aiming to an efficient use of energy and an increase of electricity savings. “Energy Efficiency” loans will support families / businesses to sustainable reduce their electricity costs.

Who receives this loan? – All customers with income from wages, business can benefit “Energy Efficiency” loans, as long as they fulfill the eligibility criteria to be financed by the Bank.

Advantages of the “Energy Efficiency” investment

Decreases energy consumption
Saves money
Improves living/working standards
Helps protect the environment

Main phases /steps involved in getting an “Energy Efficiency” loan for home improvement

The “Energy Efficiency” loan application process consists of the following phases:

Information phase:

The individual has to present him/herself in one of the branches of the Banks that are offering energy efficiency loans, to ask for information on the loans for efficiency of Energy investments in home improvement.
The Loan Officer provides the preliminary information (interest rates, maturity, commissions, conditions and a simple calculation of the loan installment) regarding the financial loan that can be provided to support Energy Efficiency investment according to customer’s conditions. Preferential interest rates may apply to EE loans..
The Loan Officer provides a simple calculation of energy savings, translated into monetary as a result of the energy efficiency measures that can be implemented after receiving the loan.
The Loan Officer performs a preliminary screening of the customer as a potential to receive the loan based on the Bank’s eligibility criteria, and the customer on the other side evaluates the loan’s terms and conditions whether are suitable and on his/her interest.
The Loan Officer provides the List of Required Documents to the customer.

Application phase

Customer provides the required documents (by granting the rights to be verified by the Bank) and the Loan officer fulfills the “Loan Application Form”.
he Loan Application process starts officially.

Analysis phase:

After receiving the documents submitted by the customer, the Loan Officer performs the necessary verification regarding the incomes, borrower’s credit history, collateral conditions (if any), living place etc. This phase is important to make an overall assessment of the customer creditworthiness and is mainly based on 4 pillars:

Investment plan / eligibility list: Assessment of the investment plan with regard to Energy Efficiency measures in terms of efficiency and feasibility. Examples of Energy Efficiency Improvements:
- Building Envelope Improvements (Roof, ceiling, floor and/or external walls thermal insulation – Installation of the new thermally insulated external doors and windows – Glassing and insulation of balconies etc…)
- Heat Source Improvements (New boilers and burners – Automatic boiler controls – Separate hot water heaters Modernization of existing boilers – Connection to the gas network – Boiler heat recovery devices)
- Heat Distribution Improvements (New or refurbished heat exchangers – New distribution piping and radiator – Thermostatic radiator valves – Distribution Pipes insulation – Hot water circulation pumps)
- Heating, Ventilation, Air Conditioning Improvements (energy management systems etc…)
- Interior & Exterior Lighting Improvements (Retrofit of existing lamps to energy efficient – Automatic lighting controls (i.e. timers or motion sensors, daylight sensors)
- Renewable Energy Utilization (Solar hot water heating systems)
Capacity to pay: The incomes level of the customer either salary payment or business incomes are verified based on different information sources. Customer must provide information and sources of verification for all possible incomes and expenditures that he has at the application moment or that may have in the future. At this phase is important to draw a correct picture of the financial situation of the customer and his/her capabilities to handle the loan obligations. Customer must demonstrate that he/she has a financial stability and a capacity to generate sufficient cash flows to pay the loan installment.
Collateral: Collateral is the guarantee in case the customer fails to pay the loan installment after all negotiation procedures with the bank. Collateral provided for the bank can be one or combination of the following categories depending on the loan amount and risk assessment of the loan required:
- Immovable properties (mortgage)
- Movable properties (pledges)
- Personal Guarantor
- Cash collateral (bank deposit)
References for the customer: At the application moment, Loan officer checks for customer’s previous loan history at the Loan Register System (Bank of Albania Credit Register), whether the customer has received any loan before, how is the repayment history and so on. Additional references may be provided from the bank customer’s database.

After assessing positively the credit worthiness of the customer, the final step is the proposal of the loan’s terms and conditions in line with customer’s situation and the internal procedures and regulations of the bank on the “Energy Efficiency” Lending.

Loan Approval / Rejection Phase:

The file for the loan application is prepared and presented to the Credit Committee that evaluates the loan proposal according to the bank’s lending internal procedures and decides to approve or refuse the loan application.

The final decision is communicated immediately to the customer, in case of approval the customer is asked to provide any additional document if required, whereas the Loan officer continues with the loan contract preparation under supervision of the Legal Department. There are two options to be mentioned:

In case the collateral is an immovable property then the following procedures are the appraisal of the collateral from the appraisal specialist to assess the market value of the collateral if it is sufficient to cover the loan amount according to the bank’s regulations. If it is sufficient then it proceeds with signing of loan contracts. If not, additional collateral or a combination with other categories may be required;
In case the collateral is a movable property, then it proceeds with signing of the respective loan contracts.

Loan Disbursement:

After signing of the contract from bank and customer sides, if the collateral is immovable properties then the contracts are sent for registration of the mortgage in the Immovable Properties Office Registration in the favor of the bank for the loan amount. If the collateral is a movable property then the contracts are sent for the registration to the “Pledge Registry” (RBS) Office so that the pledges are registered in the favor of the bank for the loan amount.
Depending on the internal procedures, the customer may be asked / or not, to complete the property and life insurances for the loan amount in case of loans with mortgage collateral.
After all the procedures are completed and the necessary documents are checked at the banks, then the amount is disbursed to the customer’s account. Customer is provided with a copy of the contracts, insurance policies (if any) and the amortization schedule for the loan amount and the payment dates..

The required documents the customer needs to provide to the Bank, to be considered for an Energy Efficiency loan for home improvement

This is a list of most important required documents for an Energy Efficiency Loan application by the Bank:

Investment plan (energy efficiency investment referring to the eligibility list)
Copy if ID (passport, identity card)
Family certificate
Domicile letter for customer and surety/guarantor (if any)
Employment certification for customer and surety (if any) stating the salary amount, employment starting date etc (if possible a bank statement may be attached)

If incomes are not from salary, please refer to as following:

Small Business

Extract from National Center of Registration (QKR)
Yearly Tax declaration, current year.
Deposit Slip for the last trimester payment of taxes (on profit, local and others)
P&L Statement and justifying documents

Juridical Persons

Extract from National Center of Registration (QKR)
License (professional license if required by the business)
Salary Draft (Certification from Social Insurance Institute –ISSH- is required) or Last year balance sheet and declaration of tax on turnover, up to current month (F.D.P). Deposit Slip for the last months payment of taxes (on profit, local and others)
P&L Statement ( if required) and justifying documents

Rental Income

Rent Contract (Property Certificate to be attached to the rent contract). The rent contract can be notarized/or not. The Bank may decide to accept/ reject such income justification in absence of a notarized rent contract.
Property Certificate, Property Cadastral Map, registration card of the property.
Buying / Selling Contract of the Property, payments slips, etc.

Terms and Conditions

Specific terms and conditions for Energy Efficiency loans for home improvement

Interest rates

The interest rate is the cost that the customer has to pay over the loan amount. The interest rate on a loan is generally set to be either:
- Fixed over the life of the loan
- Variable (the most common applied and that means changing periodically with changes of market interest rates)
- Or some combination of the two – for example a fixed interest rate for some number of years, then varying.
Being the main factor for the customer’s decision and due to competition, banks have reflected in this direction by decreasing the rates compared to 4-5 years ago. Generally, adjustable interest rates are used, but a new trend is observed as a combination of fixed interest rate for the first years and then adjustable.

The interest rates for an Energy Efficiency loans depends on 2 variables; a) Loan amount and b) Maturity. For high loan amounts and mid/long term loan maturity, the lending rates tends to be flexible considering the risks of change in market conditions due to long term maturity. They are composed of a changing part, index and the unchanged part the spread charged by the banks. Over the life of a variable-rate loan changes in the interest rate may be determined by one or a combination of:
- A published index of inflation
- An index of market interest rates
- Changes in the interest rate the Bank pays on deposits
- Changes in costs of funds etc…
As a general principle, banks varies the interest rates that it charges on its loans frequently enough to track changes in the interest rate that the institution pays for the funds that it uses to finance the loans, – always maintaining a satisfactorily positive spread between the two rates. The indexing scheme should also create an understandable and reasonably predictable payment structure for the borrower.

Where a reliable index of inflation or interest rate exists, the bank may choose to tie both the interest rate that it charges on its loans and the rate it pays on deposits to changes in the index, – assuring a positive interest spread for the institution and transparency for the borrower. Because the principal funding source for loans is likely to be the deposit base, on which the interest rate paid will vary over time, most loans carry variable interest rates.

Maturity

Loan maturity is a technical way to express loan length. A loan matures at the date it is due to be paid off. Loan maturities are based on the ability to repay, the purpose of the loan proceeds, and the useful life of the investment financed.

Being based on different maturities Energy Efficiency loans are classified in 3 categories: Short term (1-2 years), Midterm (2-5 years) and Long term (5-10 years) loans. The loan maximum loan maturity for energy efficiency loan actually is 10 years.

Commissions

A general form and a detailed view of the most common costs of an Energy Efficiency Loan will be as following:

Administrative expenses: It varies from one bank to another and are expressed as a certain percentage over the loan amount. They can be paid upfront in the moment of the loan approval or can be paid at the moment of the loan disbursement, as per bank’s procedure.
Notary expenses: The existence of this cost varies from one bank to another depending on internal lending policies. These are costs of the notarization of the agreement between bank and customer such as loan, mortgage, endorsement, pledge agreements etc. Mainly for energy efficiency loan the notary costs arise for a minimum loan amount and vary from one bank to another.
The premium cost of the Life Insurance: The existence of this cost varies from one bank to another depending on internal lending policies. The premium cost depends on the loan amount value and borrower’s age. This means that the higher the loan value or the older age of the borrower the higher is the premium to pay. Usually the premium of life insurance police is paid annually, based on the outstanding loan amount (and the banks take care themselves for the renovation of life insurance and let you know on the new annual premium by debiting your account directly and crediting the insurance company).
The premium costs for the property insurance: The existence of this cost varies from one bank to another depending on internal lending policies. Usually the bank requires to insure the collateral from the earthquake and fire (which are the most common and valuable risk from the collateral security point of view). This premium cost of insurance might be payable annually or once for all the period of the loan depending on bank’s policies. The premium depends on loan amount value and collateral characteristics (villa, flat, old house) and on the value of the property.
The payment of appraisal of the property: This cost incurs at the time that the loan for energy efficiency has a certain amount and a real estate property is offered to be used as loan collateral. Banks are using private appraisers for this purpose. These costs depend too on the collateral to be evaluated and on the agreement between bank and private expert.
Expenses of the blocking of real estate properties: This cost incurs at the time that the loan for energy efficiency has a certain amount and a real estate property is offered to be used as loan collateral. This fee is paid for the registration of the property on bank’s favor in the Registration Office of Immovable properties.
Expenses for the maintenance of the bank’s account: It varies from one bank to another.

Collateral provided for the Energy Efficiency loan for home improvement

Are fully acceptable the following categories of guarantees:

Personal Guarantor
Movable properties
Real estate properties
Guarantees and cash guarantees

a) Personal Guarantor

The following conditions should be considered when accepting the guarantors:

Must have high personal reputation.
Must have influence on the customer.
In cases where the guarantor generates income from the business, this business must be licensed and must have at least 6 months of activity.
The monthly salary of the guarantor should not be less than a specified limit from the bank.
No more than half of the guarantors for a loan must work in the same business company.
No more than one guarantor must have the same activity or belong to the same family as the borrower. Exception may apply for owners of the properties (real estate/or movables) offered as collateral for the loan.
One third of the monthly incomes of all the personal guarantors must cover the loan monthly installment.

b) Movable Properties

Some type of movable properties that can be used as collateral may be:

Household equipment
The car of the customer /or guarantor’s
Customer / Guarantor’s machinery and business equipment in cases where he runs a licensed business.

If the borrower fails to pay the loan, the Bank takes the possession of the movable properties used as collateral and may execute them by selling in auction bids in order to recover the initially lend amount.

c) Real Estate Properties

This category includes buildings, land, homes etc. Real estate is valid only if the applicant submits a document released by the office of real estate registration, indicating that ownership of the property and the property status is unblocked. In general, the collateral will be the first rank mortgage on a real estate property owned by the borrower or guarantor. In this case the collateral to loan value ratio should be the minimum ratio 1.4: 1.

If the borrower fails to pay the loan, the Bank takes the possession of the properties used as collateral and may execute them by selling in auction bids in order to recover the initially lend amount. There are some characteristics required to be fulfilled from the collateral in order to be a valuable guaranty:

Price stability – the collateral should not be subject to large price movements
Marketability – the collateral must be sold easily
Sustainability – the collateral must be resident over time
Portability – movable collaterals should be removable, so they can be easily sold in a different market in case is necessary.

d) Guarantees and Cash Guarantees

Cash collateral is considered any deposit or current account at the bank credit blocked, which covers completely the value of the loan or covers partly in the case when the loan is also combined with other guarantees.

Penalties/Procedures in case of late payment of the Energy Efficiency loan for home improvement

Procedures do not change in comparison with a normal loan for house improvements / or mortgage loans / or consumer loans. If the borrower is unable to repay on time the monthly installment, the bank regardless the normal interest rate, has the right to apply a penalty base percentage plus + a fixed percentage % per annum, calculated on the unpaid installment obligation (principal + interest), for the period in which it is overdue. Hereby the bank is authorized from the loan contract, to withdraw the money from the borrower’s current account without his/her authorization, in the case that the borrower is in default in paying the next installment.

Important: in every case the early repayment fee should be clearly stipulated in the loan contract.

Fees/Commissions in case of early repayment of the Energy Efficiency loan for home improvement?

Procedures do not change in comparison with a normal loan for house improvements / or mortgage loans / or consumer loans. In the event that a borrower prepays his/her energy efficiency loan before the full term of the loan, the bank may charge a prepayment fee, generally set equal to a modest percent of the unpaid principal balance. The borrower is obliged to notify the bank in writing form at least 10 days before repaying off totally the loan. The penalty calculation comes as a result of a certain percentage over the prepaid amount of loan, between 0.5 percent -5 percent, and may vary from one bank to another.

Important: in every case the early repayment fee should be clearly stipulated in the loan contract.

ABOUT THIS PAGE

This page was prepared from International Finance Corporation under Energy Efficiency Project in Albania with the sole purpose to inform and educate the general public in regards to Energy Efficiency and Energy Efficiency Finance. In particular, this site will help people in better understanding:

Energy Efficiency (definition, benefits, practical rules, Energy Efficiency measures /investments), and
Energy Efficiency loan (main steps, procedures, documents required, costs involved, terms and conditions of the loan)

The contents of this website are protected by copyright. This website or its parts may not be reproduced, copied or distributed in any form without reference to the IFC.

IFC encourages dissemination of information from the website and hereby grants permission to the user of this work to copy portions of it for the user’s personal, noncommercial use, without any right to resell, redistribute, or create works derived from the contents or information contained herein. Any other copying or use of this work requires the express written permission of IFC.

The information in this website is presented in good faith for general information purposes, and IFC, the World Bank Group shall not be held liable for any of the information contained herein.

This website does not claim to serve as an exhaustive presentation of the issues discussed herein, and should not be used as a basis for making commercial decisions. Please approach independent legal counsel for expert advice on all legal issues.

All information and materials used in preparing this website are the property of and archived by IFC.

ANNOUNCEMENTS

Tirana, Albania, May 23, 2014

IFC and Union Bank Albania join efforts to unlock the energy saving potential in Albania’s residential sector

Tirana, Albania, May 23, 2014 — International Finance Corporation (IFC), part of the World Bank Group and Union Bank, signed today an agreement which provides cooperation to further increase the capacity assessment of the bank’s staff in financing of energy efficiency projects in the residential sector.

“This joint initiative is part of IFC’s efforts to help financial institutions in Albania to increase lending to individuals for energy efficiency investments thereby increasing their investments in this sector” said Bajame Sefa Manager of the Residential Energy Efficiency project in IFC Albania. “For this purpose, we have developed a comprehensive training package which will improve the Bank’s ability to penetrate the clean energy business. ”

“The new Energy Efficiency product to be launched in cooperation and full support of IFC, will add another qualitative credit product in the range of products and services that Union Bank offers to clients and the public” said Mr. Gazmend Kadriu, CEO of Union Bank. “We are convinced that the product will be evaluated and a positive interest is expected from customers, primarily for individual real benefits, but also because it serves to a sensitive issue in Albania, having a cleaner environment.”

Albania is a net importer of electricity and the Government of Albania is encouraging all potential stakeholders to explore ways to reduce electricity consumption. Residential sector consumes 54 % of all electricity available. Albania is a country with great potential savings in this direction, where it is estimated that in Tirana, if it will be thermo insulated the stock of buildings constructed before 1990 (22 % of total housing stock in the city), it will achieve an annual savings of 280 GWh of energy. National savings would be even greater according to the same study.

IFC aims to promote the growth of investments in energy efficiency in Albania and beyond, working to improve regulatory framework and collaborating with banks to increase lending to this sector. IFC is implementing the Residential Energy Efficiency Project in Albania in cooperation with the Austrian Ministry of Finance.

About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit: www.ifc.org.

Tirana, Albania, January 24, 2014

IFC and Intesa Sanpaolo Bank Join Efforts to Spur Renewable Energy Market in Albania

Tirana, Albania, January 24, 2014 — IFC, a member of the World Bank Group, is rolling-out a new advisory program for Intesa Sanpaolo Bank in Albania, as part of the broader effort to assist the local financial institutions in the Western Balkans enhance their investment in renewable energy.

The three-day program is specifically tailored to Intesa Sanpaolo Bank in Albania. The bank’s staff will familiarize with practical principles of evaluating proposals relating to renewable energy financing, with a particular focus on small hydro power plants.

“With increased internal capacity in technical and financial assessment of renewable energy projects, Intesa Sanpaolo Bank in Albania will be able to contribute more to the development of the renewable energy sector in Albania” said Nebojsa Arsenijevic, Program Manager of IFC’s Balkan Renewable Energy Program.

“Cooperation with IFC is very important for us,” said Silvio Pedrazzi, CEO of Intesa Sanpaolo Bank in Albania.

IFC fosters the development of the renewable energy market in Albania and in the broader region of the Western Balkans.IFC is working with government officials to improve the regulatory framework, cooperating with renewable energy companies to enhance their project design and advising local banks to boost lending for such projects.

IFC is implementing its Renewable Energy Advisory Program in the Western Balkans in partnership with the Austrian Finance Ministry.

About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit: www.ifc.org.

About Intesa Sanpaolo Bank Albania
Intesa Sanpaolo Bank Albania operates in the country since 2008, after the acquisition and merge of two major banks in the country. The Bank belongs to Intesa Sanpaolo Group which is among the top banking groups in the euro zone and aims at becoming the benchmark for value creation in the European banking system. It is the leader in Italy in all business areas (retail, corporate and wealth management). The Group offers its services to 10.8 million customers through a network of approximately 5,500 branches in Italy. Intesa Sanpaolo has a selected presence in Central Eastern Europe and Middle Eastern and North African areas with over 1,500 branches and 8.3 million customers belonging to the Group’s subsidiaries operating in retail and commercial banking in 12 countries. For more information, visit:http://www.intesasanpaolobank.al

Tirana, Albania, September 30, 2013

IFC and Intesa Sanpaolo Bank Albania Cooperate to Develop Renewable Energy Market

Tirana, Albania, September 30, 2013 — IFC (International Finance Corporation), a member of the World Bank Group, and Intesa Sanpaolo Bank Albania, one of Albania’s top 5 commercial banks, signed an agreement in advising the Bank to enhance internal staff expertise in identifying opportunities for financing renewable energy projects, with a particular focus on small hydro power plants. This initiative is a part of the broader IFC’s effort to help local financial institutions in the Western Balkans develop the renewable energy market and increase their investments in the sector. Albania is known for having large hydropower potential, but has yet to develop it fully.

“IFC is uniquely positioned to help countries transition to a low carbon future,” said Jasper Kjaer, IFC Regional Head of Advisory Services. “To that effect, we developed a comprehensive advisory package tailored for local banks in the Western Balkans, which will improve their ability to penetrate the clean energy business.”

“This cooperation represents a new milestone in our long-term strategy for Albania,” said Alexander Resch, CEO of ISP Albania. “Intesa Sanpaolo Bank Albania believes in the future development of the Albanian renewable energy market and is committed to support its investors in the most professional way by building up a specialized team.”

IFC, through Renewable Energy Advisory Program, aims to foster the development of the renewable energy market in Albania and in the broader region of the Western Balkans by working with government officials to improve the regulatory framework, cooperating with renewable energy companies to enhance their project design and advising local banks to boost lending for such projects.

IFC is implementing its Renewable Energy Advisory Program in the Western Balkans in partnership with the Austrian Finance Ministry.

Tirana, Albania, March 12, 2013

IFC, Canada, and Credins Bank Support Environmentally Friendly Projects in Albania

Tirana, Albania, March 12, 2013 — IFC, a member of the World Bank Group, with the support of the Government of Canada, is helping Credins Bank Albania expand its financing of renewable energy and energy efficiency projects, promoting the efficient use of resources and reducing greenhouse gas emissions. IFC will provide €10 million in financing to the bank, including up to €1 million from the IFC-Canada Climate Change Program. That will help the bank provide loans to Albanian companies interested in investing in energy efficient technologies and renewable energy projects. The Government of Canada’s contribution was instrumental, helping to make the financing package viable.

“This partnership with IFC will help us take a leadership role in combating climate change in Albania,” said Artan Santo, Credins Bank CEO. “We believe that the potential for development of sustainable energy finance in Albania is significant and aim to offer our services to companies that plan to go green.” Canada’s Environment Minister, the Hon. Peter Kent, said, “The global challenge of climate change requires a global solution, and Canada is proud to support environmental efforts such as these.” Tomasz Telma, IFC Director for Europe and Central Asia, said, “Increasing sustainable energy use will provide Albania with environmental and economic benefits. Our initiative is expected to help Albanian companies become more resource efficient, profitable, and competitive, while improving the quality of life through reduced pollution.” IFC will provide advisory support to Credins Bank through the Balkans Renewable Energy program. Credins Bank has also been an active participant in IFC’s Residential Energy Efficiency advisory program in Albania since February 2010.

Albania became a shareholder and member of IFC in 1991. IFC’s investment portfolio in Albania stands at $223 million (€166 million). IFC is focusing its investment services on financial markets, energy and infrastructure. IFC’s advisory services in Albania aim to improve the investment climate, strengthen the performance of private sector companies, increase access to finance, and attract private sector participation in infrastructure projects.

About the IFC-Canada Climate Change Program

The IFC-Canada Climate Change Program promotes private sector financing for clean energy projects. Canada’s financing to IFC for this program is part of its overall fast-start financing contribution for 2010–2011. Under the Copenhagen Accord, developed countries committed to provide fast-start financing of almost $30 billion for 2010–2012 to support climate change mitigation and adaptation in developing countries. As part of Canada’s commitment to support climate change action in developing countries, Canada is contributing 1.2 billion Canadian dollars in new and additional climate change financing over three years (fiscals 2010-2013).

About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit www.ifc.org.

Tirana, Albania, February 21, 2013

Tirana, Albania, February 21, 2013 – International Finance Corporation (IFC), a member of the World Bank Group, launches today the first in-depth training in the region on renewable energy financing for Credins Bank staff in Tirana which will last over the course of the following three days.

This will be the first in a series of similar specialized trainings specifically tailored for select local banks in the Western Balkans comprising the most important technical, financial and legal aspects of renewable energy projects. In turn, by strengthening local banks’ capacities especially in the area of project finance, IFC is intent to build a sustainable market involving renewable energy technologies, primarily small hydro power plants (SHHP).

One of the main strategic objectives of Credins Bank is to expand its loan portfolio, particularly in the area of RE financing as Albania must meet a target of 38% regarding renewable energy share in the overall energy consumption by 2020.

“Our value-added is geared towards enhancing the internal capacity of our clients. Of course our idea is not to transform loan officers to engineers or lawyers. However, good understanding of country specific legal, technical and financial opportunities and barriers will secure that banks will continue to work in the sector even after completion of our project, outsourcing some tasks only if and when it is needed.”, stated Nebojsa Arsenijevic, Balkan Renewable Energy Program Manager at IFC.

Realized in partnership with the Austrian Ministry of Finance, IFC’s Balkan Renewable Energy Program aims to facilitate robust rates of investment into renewable energy projects in the Western Balkans. By working with government officials, local and international SHPP developers, and local finance institutions, the Program will remove existing barriers for investments and improve related regulatory frameworks. The Program aims to develop the market for renewable energy in the region as a means to green the economies, diversify the energy mix, and support the countries’ path towards the European Union.

For more information please contact Mrs. Bajame Sefa, Coordinator of the Program for Albania and financial expert for the region.

SUPPLIERS

List of products and companies that offer energy efficiency measures in housing, provided only for information purposes.

The list is just a collection of names of companies with data that they themselves have introduced / announced, and does not imply a recommendation by the IFC. Companies in this list are not accredited or qualified by IFC for the quality of products. IFC does not take any liability for the authenticity or accuracy and compliance of the information presented in this document.

Here you can download the List of EE Products and Supplier: